2014-02-04_REPORT - M1983194 (2)

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L 1 1 A'OkNatural Soda, Inc. 2013 Project Status Report & Annual Plan of Development Natural Soda, Inc. is proposing to start a 21 well resource definition exploration program in 2014, which should be completed by 2017. This program is critical to NSI's planning and future development. The wells will be core holes, drilled to further define the thickness and areal extent of the Boies Bed nahcolite and other saline mineral intervals in the Parachute Creek Member of the Green River Formation. Two drilling phases are anticipated Phase I drilling will include up to thirteen wells (A -M) located in closer proximity to the NSI plant and current mining operations. A number of these core holes will help define the nahcolite /halite transition boundary in the Boies Bed. Phase II drilling will include eight wells (N -U) located in the western portion of the NSI sodium lease. NSI will drill these wells in a phased approach to build upon knowledge gained on a well by well basis. As a result not all 21 wells will be drilled. Drilling order will be approached in such a manner that some holes will only be drilled if insufficient or unexpected data is collected from the previously drilled holes. The majority of the wells that are actually drilled will be plugged and abandoned, and the associated disturbance immediately reclaimed. A select few of the Phase I wells will be completed as groundwater monitoring wells and /or subsurface subsidence monitoring wells, as applicable. 4.0 2013 Project Activities 4.1 On -Site Facilities and Process Description 4.1.1 General Arrangement Figure 5 provides an overview of the process flow. 4.1.2 Lab Operation / Sanitation/ ISO In 2013, activities continued in the laboratory to provide analysis for process control, quality assurance, and regulatory requirements. • Plant operators performed process control analyses. • Chloride levels were monitored on all USP grades to ensure USP standards were met. • The USP test for insoluble materials was conducted on a per lot basis and a filter test for insoluble materials was conducted on the dry product once per shift by operations. • Pests were controlled with the use of two UV bug lights and rodent traps around the interior and exterior walls of the plant. • GMP /ISO /Sanitation training was provided for all employees as required. • A food safety and GMP audit was conducted by AIB International. From this audit, NSI received a passing grade. A food safety audit for FSSC 22000 was conducted for which NSI received GFSI certification. • FDA, CDPHE, NSF, OMRI, Kosher, and ISO 9001 certifications were maintained. ' DAUB & ASSOCIATES. INC. ,, g January 2014