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Prospecting Activity and Abandonment of Surface Drill Holes <br /> In accordance with Section 5.6(1)(c)and 5.7 of the Mineral Rules and Regulations of the Colorado Mined <br /> Land Reclamation for Hard Rock,Metal,and Designated Mining Operations,below is the summary of <br /> the prospecting and abandonment activities that occurred during the preceding year(2013)at drill holes: <br /> HENX1301,HENX1302,and HENX1303. <br /> 2013 Prospecting Drill Holes <br /> During the summer of 2013 three holes were drilled from Red Mountain using a reverse circulation(RC) <br /> drill rig. One hole was continued with a diamond core rig. Drill site locations can be seen on the attached <br /> Red Mountain Exploration Drilling Map. <br /> HENX1301 <br /> Drill hole HENX1301 was drilled from Site 3 on Red Mountain located at Longitude 105'49.779' W, <br /> Latitude 39'45.894' N, at an elevation of 11,200 ft above sea level. This hole was drilled with a RC rig <br /> to a depth of 2,800 ft in Precambrian granite and schist bedrock. The hole encountered very small(1-2 <br /> gal/min)amounts of water at a depth of 160 ft to 180 ft. More significant water was encountered at 1,420 <br /> ft but water was not present past this depth.The hole was cemented from the bottom back up to 2,240 ft <br /> and reentered with a diamond drill rig as HENX1301A.A wedge was placed at 2,252 ft down hole where <br /> core drilling began. Core was continued to a final depth of 3,991 ft. It remained in the same rock type to <br /> final depth. The entire length of the hole was filled with abandonite and capped with 20 ft of cement at <br /> the top. <br /> HENX1302 <br /> Drill hole HENX1302 was drilled from Site 8 on Harrison Mountain located at Longitude 105' 51.053' <br /> W, Latitude 39' 45.345' N,and an elevation of 12,250 ft above sea level. The hole was drilled with a RC <br /> drill rig to 1,120 ft entirely in Precambrian granite. The hole encountered water at 700 ft and again at <br /> 1,060 ft but was largely absent after these intervals. Casing was left in the hole from top to bottom and <br /> the hole capped in order to reenter it with core at a later date. <br /> HENX1303 <br /> Drill hole HENX1303 was drilled from Site 4 on Red Mountain located at Longitude 105'49.55P W, <br /> Latitude 39'46.030' N, and an elevation of 10,925 ft above sea level. The hole was drilled with an RC <br /> rig to 1,910 ft entirely in Precambrian granite. Water was encountered at 700 ft down hole but was absent <br /> after this interval. The hole was pumped with abandonite from 1,910 ft to 22 ft and 22 ft to 0 ft with <br /> cement. <br /> 1 <br />