2012-12-27_PERMIT FILE - P2012018

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Appendices — DRMS Form 2 Public Royal USA Inc. Wray Mesa NOI Introduction APPENDIX A DRMS Form 2 Public Royal USA Inc. Wray Mesa Project Proposed Action Royal USA Inc. (RC Inc.) proposes to conduct exploratory drilling on federal lands, claimed by RC Inc. and managed by the U.S. Bureau of Land Management (BLM). The lands are located approximately 6 miles southwest of Paradox, Montrose County, Colorado and one mile east of the Utah/Colorado border. The proposed action consists of boring 24 air rotary holes and is intended to obtain information about historic drill- indicated mineralization and mineral trends. The proposed drill holes (WM -PDH -A through WM- PDH -X) are located in and around Section 25, T47N, R2OW, New Mexico Prime Meridian. The proposed drill sites are located near existing roads. The majority of sites will be accessed from existing 2 -track roads (8,830 ft) and only a few sties will require minimal over —land access (625 ft or less). Repair /improvement of old roads may be necessary for access, however construction (e.g. physical disturbance) of virgin terrain will not occur. Site and Claim Information The specific BLM mineral claims affected by the proposed action are: Claim Name CMC Number Location LJ634 CMC278531 NW4 Sec. 25, T47N, R2OW, NMPM LJ640 CMC278537 NW4 Sec. 25, T47N, R2OW, NMPM LJ641 CMC278538 NW4 Sec. 25, T47N, R2OW, NMPM LJ642 CMC278539 NE4 Sec. 26, T47N, R2OW, NMPM 11643 CMC278540 NW4 Sec. 25, T47N, R2OW, NMPM LJ644 CMC278541 NW4 Sec. 25, T47N, R2OW, NMPM LJ645 Being Filed SE4 Sec. 23, T47N, R2OW, NMPM LJ646 Being Filed SE4 Sec. 23, T47N, R2OW, NMPM 11648 Being Filed SE4 Sec. 23, T47N, R2OW, NMPM Starting Date and Duration Drilling is proposed to start in January, 2012. The actual date of commencement is constrained by drill permitting, weather, field conditions and drill rig availability. The actual field drill program duration should be about 25 days. Pre - Drilling Surveys RC Inc. will request cultural and biological surveys be conducted by the BLM of the drill sites and access trails, or if requested by the land managers, contract with a third -party. The archeologist will hold the appropriate licenses to conduct such a survey. The archeological survey results will be submitted under a separate cover. Other pre- drilling surveys such as wildlife, or endangered species, are not planned unless otherwise required. Appendices Page 2 of 9