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2801 Youngfield Street, Suite 171 <br />Golden, CO 80401 <br />Matheson <br />303 - 456 -5638 <br />Toll Free 888 - 456 -5638 <br />Mining Fax 303 - 456 -5639 <br />C011511Itant5q Inc. www.mathesonmining.com <br />Western Fuels — Colorado <br />New Horizon North Mine <br />Condition Inspection of the Karo Residence <br />26260 Z26 Road, P.O. Box 432 <br />Nucla, CO 81424 <br />Exterior & Outbuilding Inspections: February 28, 2013 <br />Interior Inspection: March 23; 2013 <br />Matheson Mining Consultants, Inc. (MMC) conducted a condition inspection of the of the Karo <br />residence and outbuildings located at 26260 Z26 Road, Nucla, Colorado 81424 on February 28, <br />2013 (exterior and outbuildings) and March 23, 2013 (interior). The full inspection is on the <br />attached DVD with voice comments. The DVD can be viewed on most computers with a DVD <br />drive or on most standard home DVD players. Each time the camera is stopped during filming, a <br />video file is created. The video files on the DVD follow the order in which the premises were <br />inspected. Attached to this letter is an inspection form noting general information as well as <br />information regarding drainage and utilities. <br />;' �e <br />', .r, <br />Karo Residence <br />