2010-03-16_REVISION - M1981185 (29)

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Wildcat Mining Corporation Page 10 • Wildcat Mining, in the name of James M. Clements, has a permit application pending for the Idaho Mill appropriate for the scale and type of mineral processing planned (Application Number M2006069). Approval awaits receipt and acceptance of a geotechnical site - stability report. A permit for access across Forest Service land is in hand. A land use permit for the 35 ton - per -day milling operation will also be required from La Plata County, Colorado. The permit application has been submitted, public comment meetings have been held, and the process is proceeding. The May Day and Idaho properties are situated above the La Plata River - a stream much guarded by its neighbors in Colorado and New Mexico. Use of surface waters is governed by the La Plata River Compact between the States of Colorado and New Mexico. Wildcat Mining will make use of mine water for mineral processing in the mill. The company has a low- priority adjudicated tributary water right to store and use sufficient water for the planned operation. Process water will be returned to the deeper mine levels. A permit for blasting is in process. All employees will require MSHA training and certification; this will be easily accomplished. • ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Accessibility Access to the property is excellent. The mine and mill are both within '/4 mile of the settlement of Mayday, Colorado, which is located 5 miles north of Hesperus, Colorado, on paved La Plata County Road 124. Hesperus (population 1750) is situated at the junction of highways US 160 and CO 140, 10 miles from Durango Colorado, 35 miles from Cortez Colorado, and 45 miles from Farmington New Mexico, all three major commercial centers within the Four Corners region at the common corner of Colorado, New Mexico, Arizona, and Utah. Climate The climate at Mayday is typical for the intermountain western United States and presents no particular challenges for an underground mining and mineral processing operation. The climate is marked by four distinct seasons. Summers are generally dry, with temperatures typically 45 to 90 ° F. Late summer days are regularly punctuated by heavy afternoon thundershowers resulting from the monsoonal flow of moist air northward from the Gulf. Fall weather is cool and dry. Winter weather typically arrives in November and lasts through March. • January 2007 May Day— Idaho Mine Colorado