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roads, an office, power lines, a vent fan, a ventilation shaft, portable toilet and underground <br />powder magazine are in place. The mine ventilation fan is powered by the electrical supply and <br />the mine air compressor for drilling is run by diesel and located near the portal. Gas and Diesel <br />are brought on site daily by the pickup supply trucks. No other hazardous materials are stored on <br />site. The waste rock stockpile area is less than 1 acre in size. A ventilation shaft and secondary <br />escape route is located about 800 ft east-southeast of the mine portal. A second previously <br />reclaimed vent hole has been reopened about 600 feet southeast of the portal. The office is a <br />small semi-mobile unit (a modified shipping container) located in the permit disturbed area. <br />The site was further prepared by removal shrubs and trees from the mine, ore and waste rock <br />stockpile areas using a dozer and/or a backhoe with BLM input and consent. Minor leveling of <br />area was completed and the limited topsoil stockpiled for use when the site is reclaimed. The <br />mine portal entry is a 10 feet by 10 feet bulkhead in sandstone with a locking gate. The mine site <br />is adjacent to Montrose County Road DD16, no additional roads are proposed at this time. <br />Current operations include a small underground uranium/vanadium sampling operation with two <br />to four mine workers. Mining is by random room and pillar techniques and conventional <br />explosives. Equipment used in the mine include jackhammer and jackleg drills using <br />compressed air, rubber-tired skid steer loader and a 5-ton ore buggy haulage unit. Water is <br />hauled to the site using a pick-up in 350 gallon loads. Ore and waste rock are usually "split- <br />shot", then mucked, and separately removed from the mine by an ore buggy which was designed <br />and approved for underground use. A waste rock area has been established with consent of BLM <br />and bermed to direct run-off to a sediment/detention pond and used for drilling and dust <br />suppression in the mine. If storm water overflows exceed the sediment pond capacity, they are <br />discharged across a riprap spillway into a natural drainage. Ore is temporarily stockpiled in a <br />small bermed area which directs any flows back into the mine so that total containment is <br />maintained for any run-off from the ore. Ore is loaded onto contracted ore trucks with a loader <br />or backhoe and hauled offsite for processing at the White Mesa Mill at Blanding, Utah. <br />To further evaluate and direct subsurface mining efforts, Nuvemco seeks to drill exploration <br />boreholes on adjacent claims (Last Chance claims #3, #2, and #1; which overlap the Bull <br />Durham and Pam claims as shown on maps which follow). The drilling would explore for <br />uranium and vanadium concentrations in the subsurface near the Last Chance Mine to further <br />evaluate the economic viability of mining the claims. The ore deposits are in several separate <br />channel sandstones within the Salt Wash Member of the Morrison Formation. <br />This drilling plan includes less than 4.9 acres for the actual area disturbed within about 22 acres <br />where exploration boreholes are to be located on open areas and existing roads and trails. The <br />site will be drilled in phases and reclaimed in accordance with the drilling plan. A maximum of <br />358 exploration boreholes will be drilled with a diameter of six inches to a depth of around 250 <br />feet. The boreholes will be drilled in Phases as described in Section D, Mining Plan. Depending <br />on the locations and concentrations of uranium and vanadium found, not all boreholes planned <br />will actually be drilled. Furthermore, locations shown on maps are approximate and will be <br />resurveyed subsequent to drilling to afford Nuvemco the ability to avoid destroying some trees or <br />shrubs by moving a location a few feet. <br />Last Chance Mine - April 2009 <br />Introduction - 2