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July 21, 1986 RE. DEEP CREEK PLAC ~? MINE EXY.IPIT A Legal Discription Lots 2 and 3 containing 47.3 acres and the Deep Creek Placer Survey No. 16025 containing 19,55 acres located in the SW~, Section 25, and the SEA, Section 26, Township 43 North, Range 10 West, NMPAS, Owner hereby grants unto Lessee, subiect to the terms of this agreement, the exclusive right to enter upon a portion of the property, such portion being depicted on the map attached as Amended Appendix ''A". The Leased Premises excludes that portion of Deep Creek Placer Survey No. 16025 as discribed is Amended Appendix "A" as the Premises Ex- cluded, borders Corner #B, Thence N 59° 42.8' East 1350' to Corner #C, Thence S 47° 25.2' East 136' to Corner #8, Thence S 42° 24.1' West 1276' to Corner #1, Thence N 49° 30' W 525' to Corner #H, to beginning point. EXHIBIT B Pre-Mining Mining Plan Exhibit B Pre-Mining Map and Photographs We would like to enter a pre-mining map and photographs under Exhibit D, showing the area that was affected prior to B-Mining Companys involvement. The red or shaded is the affected area. We will only affect a small part of that area as shown on the mining plan map. EXHIBIT B Mining Plan-r;ap All portals and gates will be secured and gated with steel to prevent any entry. The gates will be locked with two tumbler locks and covered with steel hoods. All mining will be done by Room and Pillar Method, using trackless equipment. Looking at Exhibit A-Mining Plan, we will start mining in the existing underground mine, driving two drifts north along section line and Forest Service line. We will extract 1G,000 ton in 1986-88, Limestone will be stockpiled in mine and the pit area. Due to the thickness of limestone there will be no waste, however, if there is we will sell it or stockpile it in the pit for reclamation of portals. There will absolutely be no dumping of any material (rock, 1L~estone, etc.) over the hillside. In 1988-89 we will drive an underground haulage drift (in limestone) from the existing mine to the bottom of the hill where we will construct a truck loading and shop facility underground which we feel will materially reduce noise thereby further mitigating any environmental impact at the property, The only area that will be affected differently is the portals of the loading and shop facilities, and that area was affected prior to 1976. The total area that will be affected is as follows: Pit Area ------ 1.18 Acres Road Area ------ .36 Acres Loading Facility Area ------ .26 Acres 1.80 Acres (1)