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OXBOW MINING, LLC <br />NOTICE OF INTENT FOR 2007 <br />(Modified June 21, 2007) <br />4.0 DESCRIPTION OF LAND TO BE AFFECTED <br />The area where the proposed exploration activities will occur includes portions of the Beaz Creek <br />and Hubbadd Creek drainages located on the north side of the North Fork of the Gunnison River. <br />Elevations in the immediate vicinity range from approximately 6,000 feet to 7,600 feet above <br />mean sea level (amsl). The azea is semi-arid with annual precipitation of approximately 17 <br />inches. Soils vary in thickness from 0" on steep side slopes and rock outcrops to possibly 2' - 3' <br />in drainage bottoms. Due to the general steepness of the terrain, the drainage bottoms often <br />contain a high percentage of rocky materials deposited by erosional and/or frequent mass <br />wasting processes. Vegetation on the lower elevations and slopes is predominantly a mixture of <br />a mountain shrub community dominated by Gambel's Oak and Juniper woodland. Along the <br />creeks, above approximately 7,000 feet in elevation, some dispersed Douglas firs are found. <br />Higher elevations contain stands of Aspen. The Beaz Creek drainage is a characteristic <br />ephemeral drainage with flows occurring in response to spring snowmelt and runoff from major <br />rainfall events. The Hubbard drainage is a perennial drainage influenced during the irrigation <br />season as the recipient of atrans-mountain water diversion . <br />5.0 DESCRIPTION OF DRILLING AND RELATED ACTIVITIES <br />Exploration Access -The drill sites will be accessed from existing two track ranch roads and <br />existing light-use methane drainage roads that extend up Bear Creek canyon and further onto the <br />upland slopes of the drainage basins. The existing road alignments will not require modification. <br />Required road maintenance will generally include grading the road to provide a smooth <br />operating surface, clean-out and repair of any existing drainage structures and application of <br />temporary drainage control measures (berms, straw bales, silt fences, gravel surfacing, etc.) as <br />necessary. As shown on the attached map and the table below, new, temporary road segments <br />range from approximately 1,400' to 4,400' in length for a total estimated combined distance of <br />17,200' (3.26 miles). New light use road construction will consist of side-cast construction, field <br />fitted as conditions require. Salvageable topsoil is generally not available due to steep terrain, <br />lack of topsoil resources and safety considerations of men and equipment. Proper revegetation <br />has not been adversely impacted by these commonly used techniques <br />All new road construction has been cleazed for cultural resources, T & E and sensitive species. <br />The new road construction will be obliterated and reclaimed. Vehicular travel on other than <br />established graded and surfaced roads shall be limited by Oxbow Mining LLC to that absolutely <br />necessazy to conduct the exploration. <br />As noted below, and shown on the attached map, all roads and borehole sites are located on <br />Federal Coal Lease C-61357 or Oxbow private fee surface. A portion of the project is located in <br />Sections 1 and 12, TI3S, R91 W outside the boundazy of C-61357 on Oxbow Surface. Further <br />details of Oxbow private surface holdings aze shown on PAP map 2.03-M1, Surface and Mineral <br />Ownership. <br />• Page 3 <br />