2010-06-08_PERMIT FILE - P2010013 (2)

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Appendix A - DRMS Form 2 Confidential Lynx-Royal JV LLC Egnar K1 2010 NOI Drilling Information Four holes are proposed for the claim block. Approximate GPS coordinates (UTM NAD83 Zone 12) and hole particulars are shown in Table 1. The holes will start in sediments belonging to the Brushy Basin Member of the Jurassic Morrison Formation and terminate below the principal ore- bearing. horizons of sandstones of the Salt Wash Member of the Morrison Formation in the project area. Table 1: Pro osed Drill H ole Location Particula rs Drillhole UTIVI Planned Planned Inclination Declination Planned Zone Easting Northing .(dip) (bearing) Total Depth K1- 228 PDH-A 12S Confidential Confidential -90 (750ft) K1- Confidential Confidential 228 PDH-B 12S -90 (750ft) K1- Confidential Confidential 228 PDH-C 12S -90 (750ft) K1- Confidential Confidential 228 PDH-D 12S -90 (750ft) Total 915 4 Holes (3,000ft) Drilling will be done by a truck-mounted rotary rig capable of drilling from 1,000 feet to 1,500 feet or so, such as a Gardner-Denver 1500 or equivalent. Hole diameter will be in the 5"to 6"range, and cuttings will be removed by airlift. Although considered unlikely, a nominal 1,000 gal to 2000 gal water truck will be available if water is needed to make an air/foam mixture. If an air foam mixture is needed, then the foaming agent will be an environmentally benign, non- hazardous and non-toxic product such as Quik-FoamTM or equivalent. Cuttings will be directed into the containment pits at each site and mineralized cuttings will be segregated within the pit. Probing will be accomplished with a truck-mounted probe or portable unit possessing gamma and electric logging tools. No tool with a radioactive source will be used. Water from the water truck may be added to the hole to improve the down hole electrical characteristics. Surface Disturbance Page 2 of 5