REVISION - 1/8/2009, 8:07:50 AM-JWD

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ATTACHMENT C SUPPLEMENTAL REPORT-ACTUAL COSTS The copies of invoices received by Powertech (USA) Inc. from Davis Drilling of Gillette, WY show charges incurred by Powertech (USA) Inc. during coring and exploration drilling operations at the Centennial Project July through September 2008. The invoices attached include line items for rig mobilization, daily travel time, per diem for meals and hotel, tripping in/out of hole, all procedures for plugging and abandoning holes -including set up, tear down and mobilizing between holes, backhoe time reclaiming all surface disturbances, and rig demobilization. Invoices from three (3) different holes are included to show consistency of time and materials. All calculations provided are derived from the costs of plugging and abandoning the Hole # IN-3C (IN-11-9), as it has the highest values for time and materials and will provide an over-estimate of costs for bonding purposes. For brevity, the other two holes with lower costs are not summarized below, but the invoices are enclosed, and the applicable line items marked in orange. Following is a summary and explanation of current rates as indicated on the invoices and data sheets enclosed: • Mobilization from Edgemont, SD to Project: $300 per hour and 1 day of per diem for 3 persons ($225)- Total cost for mobilization: $4,725 (Multiply by 1) • Daily Travel to/from sites: 1 hour at $200 per hour. Total cost per day on project: $200 (Multiply by 6 days max) • 1989 John Deere 410 Backhoe: 2 hours max to backfill drilling mud pits and properly abandon site at $35 per hour. Total cost per hole: $70 (Multiply by 16 holes) • Per Diem (meals and hotel): 3 persons at $75 per person per day. Total cost per day on project: $225 (Multiply by 6 days max) • Rig up/down time and site mobilization: 1 hour max at $300 per hour. Total cost per hole: $300 (Multiply by 16 holes) • Rig Time (Includes tripping in/washing hole after logging, mixing plug, pumping plug, tripping out, and topping off plug): 3 hours max at $300 per hour. Total costs per hole: $900 (Multiply by 16 holes) • Abandonment Fluid: 10 sacks of Shur-gel® for IN-3C at $8.75 per sack (see Preferred Pump Invoice enclosed for unit cost). Viscosity was not measureable indicating a viscosity greater than 90 seconds per quart- Drilling mud was 45 seconds per quart; therefore the abandonment fluid exceeded product requirements by a minimum of 25 seconds. Drilling mud on all holes is always kept between 34 and 50 seconds for optimum results, so mixing abandonment fluid greater than 90 seconds is always exceeding product standards. The amount of product mixed to obtain the specified viscosity correlates to (10 sacks x 50 Ib/sack) / 531 feet = 0.942 Ib/ft of product. Total cost per 531-foot deep hole: $87.50 (Multiply by 16 holes). Total cost per foot: Cost of 10 sacks of Shur-gel divided by 531 feet = $0.165 per foot abandonment fluid to exceed product specifications. • Cement: 3.59 sacks of Portland Type I cement (yield of 47 Ib cement and 3 gal water is 0.64 cubic feet, or 2.78 feet of a 6.5-inch diameter hole per mixed sack) from local Ace Hardware at $8.09 per sack (see ACE Hardware enclosure)- Total cost per hole: $29.04 (Multiply by 16 holes).