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INTRODUCTION <br /> • <br /> Marathon Gold Corporation is engaged in an exploration <br /> and research program to determine the feasibility of mining <br /> and processing placer gold and rare earth deposits found in <br /> Moffat County, Colorado . A mining permit was sought by and <br /> granted to Marathon in order that the Company be permitted to <br /> conduct pilot plant and laboratory tests to obtain valid assay <br /> and metallurgical data on gold and rare earths . Marathon desires <br /> to make an amendment to its regular ( 112 ) permit to allow for <br /> the laboratory use and testing of cyanide solutions in gold <br /> assay and recovery research. <br /> This amendment does not affect the operation of the <br /> Company ' s wet gravity pilot concentration plant . The pilot <br /> plant will continue to be run on an intermittant basis to recover <br /> the gold bearing heavy mineral suite from bulk samples obtained <br /> by Marathon. The pilot plant does not use cyanide, froth-flotation <br /> or any hazardous chemicals . <br /> Research and testing with cyanide solutions will be <br /> conducted in the Company' s research and assay laboratory located <br /> on site. All tests will be conducted in an especially designed, <br /> environmentally safe area of the laboratory . At no time will <br /> any cyanide be released into the environment. All solutions <br /> • or ore pulps which have come into contact with cyanide will <br /> be neutralized and disposed of in the lined laboratory waste <br /> disposal site. <br /> Marathon intends to continue test excavating and bulk <br /> sampling of the one acre Joker Pit. There are no plans to expand <br /> beyond the one acre of mining currently bonded for. The Company' s <br /> emphasis is on exploration and development of large tonnage <br /> channel deposits found elsewhere on Marathon' s properties. <br /> The approved permit is incorporated herein by reference <br /> to the extent said permit is not inconsistent with this amendment. <br />