Permits

Permits Required by the Company in Respect of Its Planned Exploration WorkM

Permitting requirements for exploration for the Company's properties is predominantly within the purview of the United States Bureau of Land Management (BLM). No permits are generally required for non-invasive work such as geochemical and geophysical sampling. Drill permits may take as little as two weeks to obtain, or as much as 2 (Two) months, depending on the workload of the responsible BLM officials. Bonding required for drilling is required based on the degree of disturbance necessary to do the drilling. Thus, the Company attempts to minimize the amount of new drill roads needed for its drilling programs. Exploration on Arizona State Land Department (ASLD) land requires slightly more permitting. For example, an archaeological survey may be required prior to drilling on State land. And a plan of operations may need to be updated to give details of a proposed geophysical program. The Company presently has no projects located within United States National Forests, which have the reputation of taking more time to issue approvals. The Company is normally represented by its project geologist in the permitting process for drilling.

Actually putting a mine in production requires numerous permits, some of which (such as the BLM plan of operations) are major undertakings and may require an environmental impact statement (EIS). This would not be the Company’s problem and would be undertaken by any Joint Venture Partner as detailed earlier.