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Appendices — DRMS Form 2 Public <br />Royal USA Inc. Wray Mesa NOl <br />- Wet Hole — Flowing Aquifer — Penetrating a flowing aquifer is considered highly improbable <br />due to historic drill log data and the experiences and testimony of consulted drillers and <br />miners. If by chance a flowing aquifer is penetrated, then drilling will pause and, depending on <br />extent of flow, the hole may be abandoned. If encountered, a grout /bentonitic plug sufficient <br />to contain the flow will be placed above and below (if applicable) the aquifer. The permitting <br />agencies will be consulted for further recommendations on abandonment methods in a hole of <br />this type. <br />B) Surface Restoration — <br />The cutting pits will be backfilled, and graded with native soil forming the top surface. These <br />areas will be seeded with approved seed mixture (see Appendix B). Any cuttings which <br />surround the hole collar or otherwise do not get to the pit during drilling will also be buried. <br />Where these cuttings are thin ( <2 "), they will be raked to mix with native soil and seeded. No <br />mineralized cuttings will be buried in the containment pits. Areas where equipment is driven <br />and the soil becomes compacted will be scarified and seeded with an approved seed mixture. <br />All areas of moderate soil disturbance or more will be broadcast with seeds immediately <br />following reclamation. <br />To the extent possible, remaining drill cuttings will be placed into the containment pit for <br />burial. No mineralized (radioactive) cuttings will be buried within the surface containment <br />pits. To ensure no mineralized material is buried near the surface, a handheld scintillometer <br />post- drilling survey will be compared to a baseline scintillometer survey conducted before <br />drilling. Areas with readings greater than the highest value from the baseline survey will be <br />removed and backfilled into the drill hole. The survey will be conducted no more than 6" from <br />the ground and cover a 30 foot circle surrounding the drill hole. <br />Estimated Reclamation Costs <br />A) Estimated Cost of Drill Hole Abandonment. — The estimated cost of backfilling the proposed drill <br />holes is $2.55/ft. Maximum 3 holes at 1,868 ft. ($4,763 max) <br />B) Estimated Cost of Surface Restoration — Estimated cost of the surface restoration is approximately <br />$300.00 per hole for grading and $100 per hole for seeding Max 3 sites to grade ($900 max), 24 <br />sites to seed ($2500 max) <br />Costs include all materials, labor, equipment, mob - demob, contractors overhead, profit and State <br />supervision charges. <br />Total reclamation cost is estimated at $8,163. <br />Compliance with Statues and Regulations <br />For exploration, RC Inc. will use the services of contractors. All RC Inc. contracts with service <br />companies will contain specific sections requiring compliance with all applicable Federal, State and <br />local statues and regulations. <br />Surface Use and Environmental Stipulations <br />Appendices Page 5 of 9 <br />