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Appendices — DRMS Form 2 Public <br />Lynx -Royal JV LLC Wray Mesa NOI <br />Introduction <br />Lynx -Royal JV LLC (LR) proposes to conduct exploratory drilling on federal lands, claimed by LR and <br />managed by the U.S. Bureau of Land Management (BLM). The lands are located approximately 6 miles <br />southwest of Paradox, Montrose County, Colorado and one mile east of the Utah/Colorado border. The <br />proposed action consists of boring 24 air rotary holes and is intended to obtain information about <br />historic drill- indicated mineralization and mineral trends. The proposed drill holes (WM -PDH -A <br />through WM -PDH -W) are located in and around Section 25, T47N, R2OW, New Mexico Prime <br />Meridian. The proposed drill sites are located near existing roads. The sites will be accessed from <br />existing 2 -track roads (8,830 ft) and over —land access (625 ft). Construction (e.g. physical disturbance) <br />of new access roads will not occur. <br />Thirteen (13) of the original 24 drill holes have been completed and have been reclaimed. The <br />remaining eleven (11) Planned Drill Hole locations have been changed based on the geological evidence <br />from the original drilling. <br />Site and Claim Information <br />CONFIDENTIAL <br />Starting Date and Duration <br />APPENDIX A <br />Amended DRMS Form 2 Public <br />Lynx -Royal JV LLC <br />Wray Mesa Project <br />Proposed Action <br />Drilling is proposed to start in September, 2011. The actual date of commencement is constrained by <br />drill permitting, weather, field conditions and drill rig availability. The actual field drill program <br />duration should be about 25 days. <br />Pre- Drilling Surveys <br />LR will request cultural and biological surveys be conducted by the BLM of the drill sites and access <br />trails, or if requested by the land managers, contract with a third -party. The archeologist will hold the <br />appropriate licenses to conduct such a survey. The archeological survey results will be submitted under a <br />separate cover. Other pre - drilling surveys such as wildlife, or endangered species, are not planned unless <br />otherwise required. <br />Drilling Information <br />Twenty -four holes are proposed for the claimed lands. Approximate GPS coordinates (UTM NAD83 <br />Zone 12) and hole particulars are shown in Table 1. The holes will start in sediments belonging to the <br />Brushy Basin shale member of the Morrison formation or Dakota sandstone, ending in or just below the <br />Salt Wash Member of the Morrison Formation. <br />Appendices Page 2 of 8 <br />