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December 12 -15, 2011 C- 1981- 008/New Horizon Mine MLT <br />Monday, Dec. 12 - Lift A topsoil stockpile (10 borings, 1 test pit); Subsoil Substitute area (3 <br />test pits) <br />Tuesday, Dec. 13 - Lift B subsoil stockpile (10 borings, 4 test pits) <br />Wednesday, Dec. 14 - Mixed topsoil stockpile (10 borings, 2 test pits); small Mixed and Lift <br />A topsoil stockpiles (3 and 4 sites, respectively, using the excavator). <br />• Key -Ag will be delivering the soil and subsoil samples to the company's laboratory in <br />Illinois for physical and chemical analysis. Mr. DeJoia said he expects to have the laboratory <br />results in the first half of February 2012. <br />Subsoil Substitute Redistribution Area <br />As was approved with TR -61, three test pits were dug, using a track - mounted excavator, into <br />the area at the eastern end of the Morgan property where a partial thickness of Mixed topsoil <br />has been redistributed across Bench 1 Subsoil Substitute (Permit Map 2.04.9 -3). Two of the <br />pits were excavated to the west of the large Mixed stockpile, where topsoil was spread in late <br />2009 (Photo 1). The third test pit was located between the Mixed stockpile and 2700 Road <br />(Photo 2). Division records indicate that topsoil was distributed across this area in 2006. <br />Each of the test pits was developed through the topsoil and into the Bench 1 material below. <br />The vertical faces of the test pits were examined and sampled for laboratory analysis by Mr. <br />DeJoia, and witnessed by Ms. McGregor and Mr. Peacock. <br />• Ms. Turner and Mr. Morgan collected some samples of soil themselves, at different <br />locations, and placed them in plastic bags. The samples were not collected using the same <br />methods utilized by Key -Ag. When asked what she planned to do with the samples she was <br />collecting, Ms. Turner explained they were thinking of hiring their own soil scientist, and <br />bringing him out to the site. She said they had originally planned to bring that person to the <br />site right after the test pits in the Undisturbed soil were excavated on Nov. 22, but the test <br />pits were filled in by Western Fuels, so they did not bring their scientist at that time. <br />According to Ms. Turner, their attorney has been in contact with someone from Colorado <br />State University, who has in turn been in contact with someone from Utah State. <br />Stockpiled Soil Resources <br />A total of 10 full -depth soil cores were collected from each of the three large stockpiles using <br />the Geoprobe ® rig (Photo 3): Lift A topsoil, Lift B subsoil, and Mixed topsoil. Individual <br />samples were collected in 5 -foot increments, due to the configuration of the rig's sampling <br />equipment. Each sample (soil core) was visually examined for coarse fragments, <br />photographed (Photo 4), checked for effervescence, and bagged (Photo 5) for transport to <br />Key -Ag's laboratory. <br />The track hoe was used to excavate a number of holes into the top surface of the stockpiles, <br />in order to allow visual examination of the material for the presence of coarse fragments. <br />One hole was excavated in the Lift A pile, four in the Lift B, and two in the Mixed stockpile. <br />The excavator was also utilized to sample the two smaller topsoil stockpiles (Lift A and <br />Mixed). <br />Mr. DeJoia and Ms. McGregor jointly agreed that it was appropriate to modify certain <br />aspects of the Sampling and Analysis Plan (SAP) plan; allowance for such changes was <br />provided in the SAP as approved with TR -6 L Mr. DeJoia will document the field changes <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 Page 3 of 8 <br />