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Borehole Mining International, Inc.Borehole Mining International, Inc.

Borehole MiningBorehole MiningArray Of ApplicationsArray Of Applications

Casper, WyomingSME Meeting

March 13, 200320082008

www.boreholemining.com

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BHM Pressurizing TestBHM Pressurizing Test

HydromonitorSection of

BHM Tool

Test Parameters:

Water Pressure

1500 PSI/100Atm

Velocity 60m3/h

4 BPM

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Borehole Mining ToolsBorehole Mining Tools

5.5 BHM Tool

6.5 BHM Tool Surface Test

Water Jet

Working Head

ExtensionSections

Jet Nozzle

Eductor

Drill Bit

Jet Nozzle

Eductor

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Borehole Mining SchematicBorehole Mining Schematic

Horizontal

Sectored

BHM Caverns Possible

Configuration

Simple Combined

Vertical SingleVertical Single--well BHM Techniquewell BHM Technique

Vertical

Cylindrical

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BHM Cavern VolumesBHM Cavern Volumes

Volume

0.013 mmcf

3700m3

Volume

5.125 mmcf

140000m3

Lab and PC ModelingLab and PC Modeling

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ExplorationExploration Bulk SamplingBulk Sampling Large volumes from single well vs. multiple holesLarge volumes from single well vs. multiple holes

MiningMining Minerals &Minerals & Extracting materials through boreholesExtracting materials through boreholes prepre--drilleddrilled

Industrial MaterialsIndustrial Materials from surface or minesfrom surface or mines

StimulationStimulation -- Oil, Gas, WaterOil, Gas, Water UnderUnder--reaming of well within production zonesreaming of well within production zones

-- InIn--Situ LeachingSitu Leaching Increase permeability with slots/caverns in oreIncrease permeability with slots/caverns in ore

-- Solution MiningSolution Mining Increase water/mineral contact by vertical slotsIncrease water/mineral contact by vertical slots

ConstructionConstruction -- FoundationsFoundations Caverns and slots followed by concrete backCaverns and slots followed by concrete back--fillfill

-- Subsurface StorageSubsurface Storage Extended caverns for oil or gas and otherExtended caverns for oil or gas and other

EnvironmentEnvironment Waste Collectors &Waste Collectors & Horizontally extended underground vertical slotsHorizontally extended underground vertical slots

Ground WallsGround Walls Concrete or mudConcrete or mud--sealed vertical slotssealed vertical slots

BHM ApplicationsBHM Applications

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Exploration: Bulk SamplingExploration: Bulk Sampling

Cavern/Borehole Volume RatioCavern/Borehole Volume Ratio500 : 1500 : 1

Z

Original 7Original 7BoreholeBorehole 14 BHM Cavern14 BHM Cavern

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CBM StimulationCBM Stimulation

SlurryPond

SlurryLine

PumpsClean Water toRecycle intoBorehole

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EnvironmentEnvironment

Construction of Underground:

Walls, Curtains,

Extended collectors,

Filling-out oflithological windows

Drainage wells andbarriers

More

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Underwater OperationsUnderwater Operations

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Milestone BHM ProjectsMilestone BHM Projects

YearYear ProjectProject LocationLocation DepthDepth Ore TypeOre Type

2008 Australian Gold2008 Australian Gold Kalgoorlie, WAKalgoorlie, WA 60m60m RiversandRiversand

20052005 Oil StimulationOil Stimulation West KansasWest Kansas 300m300m ShaleShale

20032003 CBM StimulationCBM Stimulation WyomingWyoming 300300 400 m400 m CoalCoal

2002 Colorado Uranium2002 Colorado Uranium RM Western SlopesRM Western Slopes 6060 -- 100 m100 m SandstoneSandstone

2000 Environmental2000 Environmental West VirginiaWest Virginia 7070 -- 80 m80 m CoalCoal

19961996--Present Water stimulationPresent Water stimulation Columbia, So. AmericaColumbia, So. America 100100 -- 150 m150 m SandstoneSandstone

19921992--1994 CBM stimulation1994 CBM stimulation New Mexico, USANew Mexico, USA 1 km1 km ShaleShale

19891989--Present Russian DiamondsPresent Russian Diamonds Archangelsk, RussiaArchangelsk, Russia 8080 -- 800 m800 m KimberliteKimberlite

19881988--Present Iron OrePresent Iron Ore Kursk, RussiaKursk, Russia 400400 -- 800 m800 m Oxide OresOxide Ores

19871987--1991 Kolubara1991 Kolubara YugoslaviaYugoslavia 2020 -- 40 m40 m Quartz SandQuartz Sand

19781978--1982 Siberian Gold1982 Siberian Gold Baikal Lake RegionBaikal Lake Region 6060--80 m80 m GravelGravel

19761976--Present Titanium/ZirconiumPresent Titanium/Zirconium UkraineUkraine 4040 --100 m100 m Quartz SandQuartz Sand

19741974--Present Baltic AmberPresent Baltic Amber Russian WestRussian West 1515 -- 30 m30 m Quartz SandQuartz Sand

19701970--1990 Kazakh Uranium1990 Kazakh Uranium Kazakhstan 100 mKazakhstan 100 m ClaystoneClaystone

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Room-n-Pillar

Layer Pitch

Angle 0

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Remote operation

Increased safety no personnel underground

Minimal environmental impact

Low capital and operating costs

Selective mining

Mobility and simplicity

Automated and computerized operation control

Ability to operate in remote areas

Desert, Polar and Underwater operations

Primary working agent water - recycling

Wide Area ofApplications

BHM AdvantagesBHM Advantages

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BHMmain technical characteristics:

Depth ofmining: 20m - 1 km (60'-3300')

Tool OD diameter: 89-305mm (3.5-12)

Water pressure: 70-200 atm (1000-3000 PSI)

Water flow rate: 150-300 m3/h (500-1000 GPM)

Tool capacity: 30-90m3/h (1000-3000 ft3/h)

Slurry consistency (rock/water): 1:6 1:1

Cutting reach radius: up to 10 m (30)

Developing interval thickness: 0.3-400m

(1-1300)

Phone 303Phone 303--904904--27252725

www.boreholemining.comwww.boreholemining.com