2010-06-08_PERMIT FILE - P2010012 (2)

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Appendix A - DRIVIS Form 2 Confidential Lynx-Royal JV LLC Egnar HD2 2010 NOI Three 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 Drillhole HD2-PDH-A nose UTM . 12S d Drill Hole Location Particulars Planned Total Planned Planned Inclination Depth Confidential Confidential -90 241 (790ft) HD2-PDH-B 12S Confidential Confidential -90 235 (770ft) HD2-PDH-C 12S Confidential Confidential -90 235 770ft Total 3 Holes 711(2,330 ft) 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 No roads will be constructed. The only surface disturbance anticipated will be the excavation of five nominal 10 foot x 10 foot by 3 foot deep containment pits for cuttings and, if needed, air- lifted water from the drill holes. The estimated disturbed area will be about 13ft X 18 ft to accommodate the pit and stored material or 234 ft square per site, or 0.01 acres. The test pits will be within the larger 30 ft x 65 ft proposed drill pads. For bonding calculations, the entire 1,950 square foot drill pad will be considered "disturbed" although this is highly unlikely. Total surface disturbance then is estimated to be about 0.134 acres. Given the equipment and mud pit constraints, a pad can be a more amorphous shape than indicated above as it is configured to fit Page 2 of 5