Location

Land Position

History

Geology and Mineralogy

Strategic Planning and Budget Requirements

Keystone Pit and Waste Dumps – Looking Northwest

Dexter Mining - Keystone Project

Dexter Mining, llc Project Area

Dexter Project Location Map

DEXTER MINING – KEYSTONE PITLOCATION AND CLAIM INFORMATION

Location: Unsurveyed Township 05 North, Range 50 East. Sections MDM, in The Keystone (Hot Creek) Mining District, Nye County, Nevada.

Patented Mining Claims: Bismark Lode, Patent Survey No. 42; Dexter Lode, Patent Survey No. 41; Bullion Lode, Patent Survey No. 40; New Philadelphia Ledge & Co. Lode, Patent Survey No. 37; Phoenix Lode, Patent Survey No. 46; Ophir, Patent Survey No. 46;

Unpatented Lode Mining Claim: Job 28 Lode Mining Claim BLM Serial No. 997213

Patented acreage = 80.31 acres, Lode mining Claim acreage = 20.67 acres

The Historic Keystone Pit (Wiswall Ore Zone) lies within the Dexter Patent where ±22,000 tons of high-grade Ag,Cu, Pb, Zn were mined in the 1970’s. Approximately 17,000 tons of this ore was placed on a small heap leach pad located on the Job 28 lode mining claim in order to recover oxide fractions of the ore before rinsing and shipping the sulfide fraction to a floatation mill located ±110 miles north, near Ely, Nevada. No heap leaching ever occurred and this stockpile remains.

Water levels in the vicinity of the pit are at or near pit floor elevations. Historic waterflow is only ±35 gpm.

Dexter Project History

The Hot Creek Mining District was organized in 1866 after a local Indians showed silver veins to prospectors. Two stamp mills were erected near Hot Creek and treated ore from the Dexter/Keystone group of mines among others. Ore from

the property was also treated at the smelters at Tybo. In 1966, Jack F. Grimm entered into purchase agreements with Worth Wiswall and his sisters, Kathryn Grove and Ethel Wiswall

for the Bullion, New Philadelphia, Dexter, Bismark, Ophir and Phoenix Patented Lode mining claims. This became the Dexter Property.

Pinex Mines conducted drilling and exploration on the Dexter property in 1965 and reported verified reserves of 800,000 tons of base metal silver ore within 350 feet of the surface (Eureka Miner, 1972).

A new ore discovery was made in 1970 at shallow depth on the Wiswall (Keystone Pit) property at the mouth of Keystone Canyon; north of Tybo, and there was drilling in 1971 (V.J. Barndt, written communication, November 27, 1971) and 1974. The Gold Creek Mining Company may have been exploring near Keystone in 1979; developments thereafter are unknown to us (Frank J. Kleinhampl and Joseph I. Ziony; Bulletin 99B, Mineral Resources Of Northern Nye County, Nevada, 1984,).

The company – Grimm-Ibex – conducted a drilling program and reported 30,000 tons of minable ore grading ±15 ounces per ton Ag, 1.5% Cu, Pb, and Zn.

A small open-pit was mined during the 1970’s and approximately 17,000 tons of mixed sulfide/oxide ore was stockpiled on a small heap leach pad near the pit; however, it was never treated. Another 5,000 tons was hauled to the Egan Mill in Ely, Nevada and treated in the floatation mill there.

Mining was suspended in 1978 due to declining metal prices.

Keystone Pit and Associated Waste

Dumps

17,000 ton Ore Stockpile

Historic Primary Crusher Pads

DEXTER PROJECT – KEYSTONE PROJECT AERIAL PHOTO WITH CLAIM BOUNDARIES

Dexter Geology and Mineralology

The property geology consists of Cambrian and Devonian chert, limestone and limey shale that have been intruded by elongate north-south trending porphyritic dikes of Tertiary age.

Sediments strike north-south and dip between 60° and 80° to the east along a north trending anticline.

The porphyritic intrusives dip nearly vertically and strike north-south, parallel or sub-parallel to bedding and are mostly rhyolite to dacite in composition. A quartz/feldspar porphyry intrudes the mineralized area of the Dexter Project. This rock contains a few percent pyrite in the vicinity of the mined pit and scarn mineralization that formed the ore there.

Scarn mineralization in the pit consists of fairly coarse-grained sulfide containing epidote, quartz, garnet, chlorite, magnetite, pyrite, chalcopyrite, galena and sphalerite with tetrahedrite, and minor antimony and arsenopyrite.

Mineralization occurs along intrusive contacts and in scarn spatially related to the intrusive contacts and is associated with magnetite mineralization.

Dexter Project General Geology from R.W. Stevenson, 1984

CLAIM BOUNDARIES, KEYSTONE PIT, AND STOCKPILE AREA

STRATEGIC PLANNING AND BUDGET REQUIREMENTS

Gross Stockpile Value (metals prices as of 4/26/2016): Recovered Value (@ 83% (historic): 17,000 tons X 0.83 = 14,110 tons Estimated silver: ±15 Oz/ton X $17.00/Oz US X 17,000 tons = $4,335,000.00 17,000 tons X 0.83 = 14110 tons X $17.00 Opt = $3,598,050.00 Estimated copper: ~ 1.5% Cu/ton = 30 lb Cu/ton X $2.23/lbUS = $66.90/ton X 17,000 tons = $1,137,300.00 30 lb/ton X.85 =25.5 lb/ton X $2.23/lb = $56.86/ton = $ 802,365.00 Estimated Gold (trace to 0.1 Opt sporadic, avg = 0.035 opt): ±0.035 Oz/ton X $1,266.00/Oz X 17,000 tons: $ 753,720.00 0.035 Opt X .85 = 0.029 Opt X $1,266.00/Oz = $36.78/ton = $ 518.928.00 Estimated Lead: 0.79/lb – not included in valuation Estimated Zinc 0.85/ lb – not included in valuation

Total Stockpile Gross Value: $6,226,020.00 Total Recovered Value: $4,919,343.00 Direct Shipping the 17,000.00 Ore Stockpile:

Haulage: ±355 mi. each way = 710 mi. round trip. 43 ton/truck @ $140.00/hr = 14 hr round trip @ and avg. 50 mi/hr = $ 1,960.00/trip

Haulage cost per ton: $45.60/ton Milling = $78.00/ton Toll milling cost: (haulage + milling) = $123.60/ton, Toll milling cost for 17,000 ton stockpile = $2,101,200.00 Permitting and Reclamation:

Notice of Intent (BLM): (small-scale operation, less than 38.000 tons, and less than 6 months duration) $20,000.00 Reclamation Plan (includes reclamation bonding, cultural and environmental surveys by third parties, post-reclamation monitoring, etc): $160,000.00

Permitting and Reclamation Cost: $180,000.00

Total Estimated Direct Shipping Cost: $2,281,200.00 Construction of ±150 ton per day gravity and flotation mill for onsite ore processing:Milling Cost: 17,000 tons @ $38.50/ton = $ 654,500.00

Mill planning and design, flowsheet, engineered (third party) specification and certification, etc. = $130,000.00 Mill Construction Cost: $3,382,000.00 Site surveying, location, mill layout (on pantented land), securing water-right and/or well drilling permits, etc. = $110,000.00 Well Drilling and water right application submission (estimated 300 ft. well @ ): $32,000.00 Milling Equipment:

Mill Building, Office and other facilities: $ 170,000.00 Crushing/grinding circuit: $ 310,000.00 Gravity milling circuit: $ 130,000.00 Floatation milling circuit: $ 95,000.00 Thickener tanks, cyclones and other ancillary equipment: $ 120.000.00 Tailings impoundment (200,000 ft3 @ @ $9.50/ ft3 installed = $1,900,000.00

Total Mill Construction Cost: $2,997,000.00 Permitting and Reclamation Cost:

Plan of Operation: Preparation, third-party engineering, certification, planning, etc. $125,000.00 Reclamation Plan (includes reclamation bonding, cultural and environmental surveys by third parties, post-reclamation monitoring, etc): $225,000.00 Permit Monitoring: $5,000.00/year @ 7 years = $ 35,000.00

Total Permitting and Reclamation Cost: $385,000.00

Total Estimated Mill Construction Cost: $3,382,000.00 Revenue From Milling: $ 882,843.00

STRATEGIC PLANNING AND BUDGET REQUIREMENTS

Dexter Mining completed one core hole – D-14-001-C - in 2013 through an arrangement with Sumin Exploration and Mining llc to a depth of 508 feet. About 30 feet of sulphide mineralization was encountered from ±78 feet to around 108 feet. Assays are needed.

Complete short core drilling program (3,600 ft.) to delineate additional reserve near the pit. Core Mobilization/Dmobilization $ 5,000.00 Core Drilling @ 95.00/ft = $342,000.00 Assaying - 200 feet (40 samples) at:$45.00 each: $ 4,000.00

Total Drilling Program: $351,000.00

If processing on site, begin design of facilities and infrastructure so that permitting can begin. Finalize Permitting. Complete secondary drilling to confirm historic drilling and/or target additional resource areas. Formulate mine plans and designs. Complete Feasibility Studies. Obtain necessary permitting and begin construction of milling facility.

Drill hole Location and OrientationDexter Mining E_m N_m Azi Dip Drilled Plan Drilling Total

Hole No. Depth Depth Method SamplesD-14-001-C 554021 4255943 270 -70° 508 500 Core Drilled 2013D-14-002-C 554056 4255938 270 -70° 500 CoreD-14-003-C 554086 4255942 270 -70° 700 CoreD-14-004-C 554115 4255949 270 -70° 800 CoreD-14-005-C 554083 4255936 225 -60° 800 CoreD-14-006-C 554090 4255957 315 -60° 800 Core

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