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Solid Minerals Inspection Report <br />Bureau of Land Management <br />Tres Rios Field Office <br />29211 Hwy 184 <br />Dolores, CO 81323 <br />Type of Operation <br />3809 Notice Level Drilling <br />Project Name <br />HD1 <br />Serial Number <br />COC -74239 <br />Company /Org. <br />Lynx - Royal <br />Inspection Date <br />August 09, 2012 <br />Others Present <br />Ryan Weidertd <br />Inspection Time <br />1:36 <br />Inspected By <br />James Blair <br />Report Date <br />August 28, 2012 <br />Legal <br />T. 42 N., R. 18 W., Sec. 11 <br />Introduction <br />Only drilled sites where 2011 inspections indicated improvements were needed were inspected. Overal <br />the project shows continued improvement. All earthwork is complete, and the are no erosion problems. <br />All drill holes appear to have been done within or adjacent to existing road alignments. Travel to these <br />sites on the access roads is appears to be infrequent. Drill sites B and C look good, while A was <br />somewhat sparse. Additional deadfall and brush was spread over the site. Because the sites are stable <br />and it is near certain that the vegetation will continue to fill in, it is not worth the time and cost to <br />government to continue annual inspections. I recommend that the bond be released and the case closed. <br />Description <br />Drill Site C. Looks great. Hardly any trace of drilling. <br />Drill Site B. This site amounts to a wide spot in the road. Vegetation is a little thicker than the year before, <br />and overall the site is ok to release. <br />Drill Site A. Vegetation at this site appears very sparse at first over a 30'x30' area, although comparison <br />with 2011 photos shows that oak brush has continued to come back and fill in and grasses are present. <br />The access road looks good. It is just approximately a 30'x30' are that appeared to need additional work. <br />A few tufts of bunch grass, etc are inside the disturbed area. No weeds were observed. To encourage <br />continued growth at this site, Ryan Weidert and I took logs branches and rocks from the surrounding area <br />and spread them across the drill site. The combined effect of this with the continued growth of the <br />reclamation vegetation is that I am confident that the site will re- vegetate fully on its own with time. <br />Drill Site E. The site looks good. A berm was erected on the beginning of the access road along the steep <br />side hill. The drill pad also looks good. Well vegetated. <br />Continued inspection of this site for the minimal amount of existing disturbance is not worth the time and <br />cost to government. I recommend that the bond be released and that the case be closed. <br />1 of 7 <br />