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Mining of the bulk ore sample will consist of drilling and blasting the ore pods in <br /> accordance with MSHA regulations (30 CFR Parts 56 and 57). Blast holes will be <br /> loaded with a blasting cap, chemical booster, and a mixture of ammonium nitrate and <br /> fuel oil (ANFO) prills. The blasts will be initiated using a non-electric system (nonels). <br /> Explosive and detonators will be stored in underground powder magazines prior to <br /> use. Waste rock generated during the bulk sampling project will be hauled to the <br /> surface and placed on a development rock pile. The ore will be stockpiled <br /> underground for later shipment to the off-site test facility. <br /> Pinon Ridge Mining LLC (PRM) is currently assessing its technical plans and associated <br /> permitting requirements for operating the off-site kinetic separation test facility, which will <br /> be located on private land. When these technical plans are finalized, permit applications <br /> will be submitted to the appropriate regulatory agencies. Once the permits are approved, <br /> a skid-steer loader will be used to load the ore into dump trucks for transportation to the <br /> test facility. <br /> Please contact me at (970) 778-9195 or gglasier(c-D-western-u ran ium.com, should you have <br /> questions or need additional information. <br /> Sincerely, <br /> i <br /> PINON RI GE MINING LLC <br /> George Glasier <br /> President and CEO <br /> CC: James Blair, BLM <br /> Mike Rutter, PRM <br /> 3 <br />