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consideration based on the economic constraints of an upstart operation in today's stressed economy. It is our <br />intention to provide a Cash Bond for the Financial Warranty. <br />One of these benchmarks shall be established as the completion of Bench 42 of the Tailings Impoundment which is <br />scheduled to occur at a point no sooner than 90 months/7.5 years after beginning operations. We feel this is <br />practical, considering such a small mill output from the Mobile Mill processing equipment of 40-80 tons/day. <br />During this period we may have reached a level in which we may desire to amend this permit to include a permanent <br />400 ton/day mill (as described in the opening summary of Exhibit C as Phase II). In that event, Venture Resources <br />will need to amend the reclamation costs, anyway. <br />If the aforementioned Phase II amendment does not occur, an adjustment of the standing bond shall be made to <br />reflect continuing existing operations forward of Bench #2 to total build-out, more specifically the completion <br />through Bench #5. This shall be done before proceeding any further past the Bench #2 build-out. <br />Therefore, a point of Maximum Disturbance - Bench #2 shall be defined as follows, acknowledging the phased <br />reclamation described throughout Exhibit D: <br />1. Mobile Mill Site actively processing per the operations set forth in Exhibit C - Mining Plan. <br />a. 0.632 acres, graded and re-vegetated <br />b. Milling equipment removal <br />2. The largest area of potential non-reclaimed area of exposure within the Tailings Impoundment is the last <br />increment of sloped face of Bench #2 and the resultant level, planar region above it (reference Exhibit E7 <br />and Tailings Impoundment Capacity and Reclamation Cost Schedule in the appendix of this Exhibit D). <br />a. 0.173 acres of '/4 sloped face on Bench 2. <br />b. 1.43 acres of level area on top of Bench 2. <br />3. Partially excavated pre-existing waste rock slope stabilization and revegetation, not to exceed a slope face <br />of 220' long x 50' wide (approx. 0.25 acres). <br />Careful consideration has been made to create a Reclamation Cost Schedule that addresses all elements necessary <br />for reclamation on a unit cost basis. This Schedule is provided at the end of this Exhibit D in spreadsheet form. <br />Equipment depreciation costs have not been considered due to the relatively short time of duration for the <br />reclamation project. <br />To summarize this Schedule, the amount of the Financial Warranty Cash Bond for the previously defined Maximum <br />Disturbance - Bench #2 shall be: <br />Total Reclamation Cost for Maximum Disturbance - Bench #2 as <br />defined in Exhibit D, 6.3.4(2): Tailings & Mobile Mill Site <br />Tailings Impoundment Maximum Disturbance - Bench #2 $55,548.67 <br /> <br />Mobile Mill Site Maximum Disturbance $36,668.18 <br /> <br />Additional 5% DRMS Office Admin., per 6.3.4 2 c $4,610.84 <br /> <br />Total Reclamation Cost for Maximum Disturbance - Bench #2 $96,827.69 <br />Page 8 of 9