Integra Realty Resources Las Vegas

Appraisal of Real Property

Mount Potosi Canyon Vacant Land Mount Potosi Canyon Las Vegas, Clark County, Nevada 89124

Prepared For: Augie Bustos, LTD

Effective Date of the Appraisal: September 30, 2019

Report Format: Appraisal Report – Standard Format

IRR ‐ Las Vegas File Number: 175‐2019‐0122

Mount Potosi Canyon Mount Potosi Canyon Las Vegas, Nevada

Integra Realty Resources 8367 West Flamingo Road T 702.869.0442 Las Vegas Suite 200 F 702.869.0955 Las Vegas, NV 89147 www.irr.com

December 2, 2019

Augie Bustos Augie Bustos, LTD 1120 N. Town Center Drive Las Vegas, NV 89144

SUBJECT: Market Value Appraisal Mount Potosi Canyon Mount Potosi Canyon Las Vegas, Clark County, Nevada 89124 IRR ‐ Las Vegas File No. 175‐2019‐0122

Dear Mr. Augie Bustos:

Integra Realty Resources – Las Vegas is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value as is of the fee simple interest in the property. The client for the assignment is Augie Bustos, LTD, and the intended use is for asset valuation purposes.

The subject property consists of 15 parcels containing 234.11 gross acres located approximately 4.5 miles south of Highway 160 between Las Vegas and Pahrump. The subject is situated in Mount Potosi Canyon which is generally located at the southern end of the Spring Mountains National Recreation Area (SMNRA) which in turn is part of the Humboldt‐Toiyabe National Forest. The subject is one of the few privately owned sites in the Mount Potosi area and has an MDP (Major Development Overlay) master plan. A county maintained dirt road provides access to within ½ mile of the northern portion of the site. It is our understanding there was previously a temporary right‐of‐way granted by the Bureau of Land Management that allowed access to the subject parcel; we have not been able to confirm if this agreement is still in place but have based the conclusions herein on the site having access.. We note a large portion of this road is not graded and is undulating, requiring 4 X 4 access. The reader is referred to the maps and photographs contained in the attached report for a visual illustration of the property’s outlying location. The 15 subject parcels are configured in two separate groupings. The first grouping consists of five contiguous parcels that contain 24.97 gross acres. This portion of the subject property Augie Bustos Augie Bustos, LTD December 2, 2019 Page 2

includes a 1,089 square foot A‐Frame cabin built in 1998. The second group consists of the remaining 10 parcels containing 209.14 gross acres. While these ten parcels are also contiguous, they are located approximately 600 feet southeast of the first group. The entire property is zoned R‐U (Rural Open Land .5 Units per Gross Acre). At their January 17, 2008 meeting, the Clark County Planning Commission approved a final grading plan that would allow a maximum of 104 residential lots on the property. In addition, it is our understanding that a Use Permit by the Clark County Planning Commissioners for a 112‐room health spa retreat and the associated recreational facilities is approved for this site. This Use Permit, which was subject to numerous conditions, expired in September of 2009. While the use permit and approval of the residential subdivision appear to have expired, they are an indication of the county’s acceptance and approval for potential development on the site. According to the property owner and permits filed, the subject has approximately 145 acre feet of water rights in permits 88245 and 88246.

The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, applicable state appraisal regulations.

To report the assignment results, we use the Appraisal Report option of Standards Rule 2‐ 2(a) of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report – Standard Format. This format summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions.

Augie Bustos Augie Bustos, LTD December 2, 2019 Page 3

Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinion of value is as follows:

Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value As Is Fee Simple September 30, 2019 $41,000,000

Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment‐specific assumption as of the effective data regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions as their use might have affected the assignment results. 1. The subject is approved to be developed with 104 residential lots and a 112‐Room health spa retreat and associated recreational facilities. 2. The subject site has 145 acre‐feet of water rights. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. We note their use might nave affected assignment results. 1. Access to the site is fully installed and completion of all the MOU (Memorandum of Understanding) requirements have been implemented.

The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from our estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, our opinions and forecasts are based partly on data obtained from interviews and third party sources, which are not always completely reliable. Although we are of the opinion that our findings are reasonable based on available evidence, we are not responsible for the effects of future occurrences that cannot reasonably be foreseen at this time.

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If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service.

Respectfully submitted,

INTEGRA REALTY RESOURCES ‐ LAS VEGAS

George L. Wara, MAI Charles E. Jack, IV, MAI Certified General Real Estate Appraiser Certified General Real Estate Appraiser Nevada Certificate # A.0206651‐CG Nevada Certificate # A.0000503‐CG Telephone: 702‐906‐0482 Telephone: 702‐906‐0480 Email: [email protected] Email: [email protected]

Table of Contents

Summary of Salient Facts and Conclusions 1 Reconciliation and Conclusion of Value 57 Exposure Time 57 General Information 2 Marketing Period 58 Identification of Subject 2 Sale History 3 Certification 59 Pending Transactions 3 Assumptions and Limiting Conditions 61 Purpose of the Appraisal 3 Definition of Market Value 3 Addenda Definition of Property Rights Appraised 4 A. Appraiser Qualifications Intended Use and User 4 B. Property Information Applicable Requirements 4 C. Comparable Data Report Format 4 D. Engagement Letter Prior Services 4 Scope of Work 5 Economic Analysis 6 Las Vegas MSA Area Analysis 6 Property Analysis 28 Land Description and Analysis 28 Real Estate Taxes 42 Highest and Best Use 44 Valuation 47 Valuation Methodology 47 Sales Comparison Approach 48 Analysis and Adjustment of Sales 52 Land Value Conclusion 55

Mount Potosi Canyon Summary of Salient Facts and Conclusions 1

Summary of Salient Facts and Conclusions

Property Name Mount Potosi Canyon Las Vegas, Clark County, Nevada 89124 Property Type Land Owner of Record Potosi LTD Tax ID 195‐01‐000‐003, 195‐01‐000‐004, 195‐01‐000‐005, 195‐12‐ 000‐002, 195‐12‐000‐003, 195‐12‐000‐004, 195‐12‐000‐ 005, 195‐12‐000‐006, 195‐12‐000‐007, 195‐12‐000‐008, 195‐12‐000‐009, 195‐12‐000‐010, 195‐12‐000‐011, 195‐12‐ 000‐012 and 195‐12‐000‐013 Legal Description Portions of Sections 1 and 12, Township 23 South, Range 57 east Land Area ‐ Total 234.11 acres; 20,047,183 SF Zoning Designation R‐U, Rural Open Land Highest and Best Use Mixed use residential development Exposure Time; Marketing Period within 12 months; within 12 months Effective Date of the Appraisal September 30, 2019 Date of the Report December 2, 2019 Property Interest Appraised Fee Simple Sales Comparison Approach Number of Sales 4 Range of Sale Dates Apr 16 to Apr 19 Range of Prices per Acre (Unadjusted) $83,694 ‐ $391,481 Market Value Conclusion $41,000,000 ($175,131/Acre) The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than Augie Bustos, LTD may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein.

Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment‐specific assumption as of the effective data regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions as their use might have affected the assignment results. 1. The subject is approved to be developed with 104 residential lots and a 112‐Room health spa retreat and associated recreational facilities. 2. The subject site has 145 acre‐feet of water rights. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. We note their use might nave affected assignment results. 1. Access to the site is fully installed and completion of all the MOU (Memorandum of Understanding) requirements have been implemented.

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General Information

Identification of Subject The subject property consists of 15 parcels containing 234.11 gross acres located approximately 4.5 miles south of Highway 160 between Las Vegas and Pahrump. The subject is situated in Mount Potosi Canyon which is generally located at the southern end of the Spring Mountains National Recreation Area (SMNRA) which in turn is part of the Humboldt‐Toiyabe National Forest. The subject is one of the few privately owned sites in the Mount Potosi area and has an MDP (Major Development Overlay) master plan. A county maintained dirt road provides access to within ½ mile of the northern portion of the site. It is our understanding there was previously a temporary right‐of‐way granted by the Bureau of Land Management that allowed access to the subject parcel; we have not been able to confirm if this agreement is still in place but have based the conclusions herein on the site having access.. We note a large portion of this road is not graded and is undulating, requiring 4 X 4 access. The reader is referred to the maps and photographs contained in the attached report for a visual illustration of the property’s outlying location. The 15 subject parcels are configured in two separate groupings. The first grouping consists of five contiguous parcels that contain 24.97 gross acres. This portion of the subject property includes a 1,089 square foot A‐Frame cabin built in 1998. The second group consists of the remaining 10 parcels containing 209.14 gross acres. While these ten parcels are also contiguous, they are located approximately 600 feet southeast of the first group. The entire property is zoned R‐U (Rural Open Land .5 Units per Gross Acre). At their January 17, 2008 meeting, the Clark County Planning Commission approved a final grading plan that would allow a maximum of 104 residential lots on the property. In addition, it is our understanding that a Use Permit by the Clark County Planning Commissioners for a 112‐room health spa retreat and the associated recreational facilities is approved for this site. This Use Permit, which was subject to numerous conditions, expired in September of 2009. While the use permit and approval of the residential subdivision appear to have expired, they are an indication of the county’s acceptance and approval for potential development on the site. According to the property owner and permits filed, the subject has approximately 145 acre feet of water rights in permits 88245 and 88246. A legal description of the property is located in the table below.

Property Identification Property Name Mount Potosi Canyon Address Mount Potosi Canyon Las Vegas, Nevada 89124 Tax ID 195‐01‐000‐003, 195‐01‐000‐004, 195‐01‐000‐005, 195‐12‐000‐002, 195‐12‐000‐003, 195‐12‐000‐004, 195‐12‐000‐005, 195‐12‐000‐006, 195‐12‐000‐007, 195‐12‐000‐008, 195‐12‐000‐009, 195‐12‐000‐010, 195‐12‐000‐011, 195‐12‐000‐012 and 195‐12‐000‐ 013 Owner of Record Potosi LTD Legal Description Portions of Sections 1 and 12, Township 23 South, Range 57 East Census Tract Number 58.17

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Sale History According to the Clark County Assessor’s Office, the subject parcels are currently under the ownership of Potosi Ltd. With the exception of parcel 195‐01‐000‐003, they have been under this ownership since December 31, 1985 at which time they were acquired from Wykoff‐Newberg Corporation.

Parcel 195‐01‐000‐003 was also acquired on the same day (12/31/85) by Potosi Ltd., but on August 22, 1997 it was transferred to Augustine C. Jr. and Vaughnie Bustos as community property with rights of survivorship. They in turn transferred the parcel to A C V L B Family Trust‐90, Augustine C. Bustos Jr. as Trustee on February 27, 2002. It was then transferred via a quit claim deed to Potosi Ltd. on January 19, 2005. These transfers appear to have been between related parties or entities.

According to information on file in our office, the property had been listed for sale for approximately one year at $42,000,000 during or around 2004. Reservations had reportedly been taken for 20 of the proposed lots (prior to March 2008) with tentative retail prices of $495,000 to $1,000,000. The reservations were subject to the filing of a final map that could not be completed until the developer received a permit to pave the access road.

To the best of our knowledge, no sale or transfer of ownership has taken place within a three‐year period prior to the effective appraisal date.

Pending Transactions To the best of our knowledge, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date.

Purpose of the Appraisal The purpose of the appraisal is to develop an opinion of the market value as is of the fee simple interest in the property as of the effective date of the appraisal, September 30, 2019. The date of the report is December 2, 2019. The appraisal is valid only as of the stated effective date or dates.

Definition of Market Value Market value is defined as:

“The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

 Buyer and seller are typically motivated;  Both parties are well informed or well advised, and acting in what they consider their own best interests;  A reasonable time is allowed for exposure in the open market;

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 Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and  The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472)

Definition of Property Rights Appraised Fee simple estate is defined as, “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Intended Use and User The intended use of the appraisal is for asset valuation purposes. The client and intended user is Augie Bustos, LTD. The appraisal is not intended for any other use or user. No party or parties other than Augie Bustos, LTD may use or rely on the information, opinions, and conclusions contained in this report.

Applicable Requirements This appraisal is intended to conform to the requirements of the following:

 Uniform Standards of Professional Appraisal Practice (USPAP);  Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute;  Applicable state appraisal regulations. Report Format This report is prepared under the Appraisal Report option of Standards Rule 2‐2(a) of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report – Standard Format. This format summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions.

Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have not performed any services, as an appraiser

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or in any other capacity, regarding the property that is the subject of this report within the three‐year period immediately preceding acceptance of this assignment.

Scope of Work To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors. Our concluded scope of work is described below.

Valuation Methodology Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment is summarized as follows:

Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized

We use only the sales comparison approach in developing an opinion of value for the subject. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis.

The cost approach is not applicable because there are no improvements that contribute value to the property, and the income approach is not applicable because the subject is not likely to generate rental income in its current state.

Research and Analysis The type and extent of our research and analysis is detailed in individual sections of the report. This includes the steps we took to verify comparable sales, which are disclosed in the comparable sale profile sheets in the addenda to the report. Although we make an effort to confirm the arm’s‐length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable.

Inspection George L. Wara, MAI, conducted an on‐site inspection of the property on September 30, 2019. Charles E. Jack, IV, MAI, conducted an on‐site inspection on September 30, 2019.

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Economic Analysis

Las Vegas MSA Area Analysis The subject is located in the Las Vegas‐Henderson‐Paradise, NV Metropolitan Statistical Area, hereinafter called the Las Vegas MSA, as defined by the U.S. Office of Management and Budget. The Las Vegas MSA is 7,891 square miles in size, and is the 28th most populous metropolitan area in the nation.

Population The Las Vegas MSA has an estimated 2019 population of 2,268,633, which represents an average annual 1.7% increase over the 2010 census of 1,951,269. The Las Vegas MSA added an average of 35,263 residents per year over the 2010‐2019 period, and its annual growth rate exceeded the United States rate of 0.7%.

Looking forward, the Las Vegas MSA's population is projected to increase at a 1.5% annual rate from 2019‐2024, equivalent to the addition of an average of 34,014 residents per year. The Las Vegas MSA's growth rate is expected to exceed that of the United States, which is projected to be 0.7%.

Population Trends Population Compound Ann. % Chng 2010 Census 2019 Estimate 2024 Projection 2010 ‐ 2019 2019 ‐ 2024 Las Vegas‐Henderson‐Paradis 1,951,269 2,268,633 2,438,703 1.7% 1.5% Nevada 2,700,551 3,075,507 3,286,836 1.5% 1.3% United States 308,745,538 329,236,175 340,950,101 0.7% 0.7% Source: Environics Analytics Employment Total employment in the Las Vegas MSA is currently estimated at 1,023,300 jobs. Between year‐end 2008 and the present, employment rose by 142,500 jobs, equivalent to a 16.2% increase over the entire period. There were gains in employment in eight out of the past ten years despite the national economic downturn and slow recovery. The Las Vegas MSA's rate of employment growth over the last decade surpassed that of the United States, which experienced an increase in employment of 11.4% or 15,471,000 jobs over this period.

A comparison of unemployment rates is another way of gauging an area’s economic health. Over the past decade, the Las Vegas MSA unemployment rate has been consistently higher than that of the United States, with an average unemployment rate of 8.8% in comparison to a 6.7% rate for the United States. A higher unemployment rate is a negative indicator.

Recent data shows that the Las Vegas MSA unemployment rate is 4.5% in comparison to a 3.7% rate for the United States, a negative sign for the Las Vegas MSA economy but one that must be tempered

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by the fact that the Las Vegas MSA has outperformed the United States in the rate of job growth over the past two years.

Employment Trends Total Employment (Year End) Unemployment Rate (Ann. Avg.) % % Year Las Vegas MSA Change United States Change Las Vegas MSA United States 2008 880,800 135,732,000 6.6% 5.8% 2009 817,000 ‐7.2% 130,690,000 ‐3.7% 11.5% 9.3% 2010 805,600 ‐1.4% 131,641,000 0.7% 13.8% 9.6% 2011 816,500 1.4% 133,718,000 1.6% 13.2% 9.0% 2012 838,500 2.7% 135,964,000 1.7% 11.3% 8.1% 2013 865,600 3.2% 138,292,000 1.7% 9.7% 7.4% 2014 905,500 4.6% 141,326,000 2.2% 8.0% 6.2% 2015 941,800 4.0% 144,063,000 1.9% 6.8% 5.3% 2016 967,000 2.7% 146,270,000 1.5% 5.9% 4.9% 2017 997,400 3.1% 148,526,000 1.5% 5.3% 4.4% 2018 1,023,300 2.6% 151,203,000 1.8% 4.8% 3.9% Overall Change 2008‐2018 142,500 16.2% 15,471,000 11.4% Avg Unemp. Rate 2008‐2018 8.8% 6.7% Unemployment Rate ‐ December 2018 4.5% 3.7% Source: Bureau of Labor Statistics and Economy.com. Employment figures are from the Current Employment Survey (CES). Unemployment rates are from the Current Population Survey (CPS). The figures are not seasonally adjusted.

Employment Sectors The composition of the Las Vegas MSA job market is depicted in the following chart, along with that of the United States. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of Las Vegas MSA jobs in each category.

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Employment Sectors ‐ 2018

0% 5% 10% 15% 20% 25% 30%

28.3% Leisure and Hospitality 10.7% 18.3% Trade; Transportation; and Utilities 18.9% 14.3% Professional and Business Services 14.1% 10.4% Government 15.1% 10.2% Education and Health Services 15.9% 6.5% Mining & Construction 5.3% 5.3% Financial Activities 5.7% 3.2% Other Services 3.9% 2.5% Manufacturing 8.5% 1.1% Information 1.9%

Las Vegas MSA United States

Source: Bureau of Labor Statistics and Economy.com

The Las Vegas MSA has greater concentrations than the United States in the following employment sectors:

1. Leisure and Hospitality, representing 28.3% of Las Vegas MSA payroll employment compared to 10.7% for the United States as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions. 2. Professional and Business Services, representing 14.3% of Las Vegas MSA payroll employment compared to 14.1% for the United States as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies. 3. Mining & Construction, representing 6.5% of Las Vegas MSA payroll employment compared to 5.3% for the United States as a whole. This sector includes construction of buildings, roads, and utility systems, as well as mining, quarrying, and oil and gas extraction.

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The Las Vegas MSA is underrepresented in the following sectors:

1. Trade; Transportation; and Utilities, representing 18.3% of Las Vegas MSA payroll employment compared to 18.9% for the United States as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. 2. Government, representing 10.4% of Las Vegas MSA payroll employment compared to 15.1% for the United States as a whole. This sector includes employment in local, state, and federal government agencies. 3. Education and Health Services, representing 10.2% of Las Vegas MSA payroll employment compared to 15.9% for the United States as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies. 4. Financial Activities, representing 5.3% of Las Vegas MSA payroll employment compared to 5.7% for the United States as a whole. Banking, insurance, and investment firms are included in this sector, as are real estate owners, managers, and brokers. Major Employers Major employers in the Las Vegas MSA are shown in the following table.

Major Employers ‐ Las Vegas‐Henderson‐Paradise, NV (Metro) Name Number of Employees 1 Clark County School District 30,000+ 2 Clark County 8,000 to 8,499 3 Aria Resort & Casino 7,500 to 7,999 4 Bellagio, LLC 7,000 to 7,499 5 MGM Grand Hotel & Casino 7,000 to 7,499 6 Wynn Las Vegas 7,000 to 7,499 7 Mandalay Bay Resort & Casino 6,500 to 6,999 8 Caesars Palace 5,000 to 5,999 9 Las Vegas Metro Police Department 5,000 to 5,999 10 University of Nevada Las Vegas 5,000 to 5,999 Source: Las Vegas Perspective

Gross Domestic Product The Las Vegas MSA ranks 36 in Gross Domestic Product (GDP) out of the nation’s 383 metropolitan statistical areas.

Economic growth, as measured by annual changes in GDP, has been similar in the Las Vegas MSA and the United States overall during the past eight years. The Las Vegas MSA has grown at a 2.1% average annual rate while the United States has grown at a 2.1% rate. As the national economy improves, the Las Vegas MSA has recently performed better than the United States. GDP for the Las Vegas MSA rose by 2.7% in 2017 while the United States GDP rose by 2.2%.

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The Las Vegas MSA has a per capita GDP of $43,584, which is 21% less than the United States GDP of $55,418. This means that Las Vegas MSA industries and employers are adding relatively less value to the economy than their counterparts in the United States.

Gross Domestic Product ($ Mil) ($ Mil) Year Las Vegas MSA % Change United States % Change 2010 82,922 15,598,753 2011 83,296 0.5% 15,840,664 1.6% 2012 83,380 0.1% 16,197,007 2.2% 2013 84,767 1.7% 16,495,369 1.8% 2014 85,858 1.3% 16,899,831 2.5% 2015 92,309 7.5% 17,386,700 2.9% 2016 93,517 1.3% 17,659,187 1.6% 2017 96,062 2.7% 18,050,693 2.2% Compound % Chg (2010‐2017) 2.1% 2.1% GDP Per Capita 2017 $43,584 $55,418 Source: Bureau of Economic Analysis and Economy.com; data released September 2018. The release of state and local GDP data has a longer lag time than national data. The data represents inflation‐adjusted "real" GDP stated in 2009 dollars.

Household Income The Las Vegas MSA has a lower level of household income than the United States. Median household income for the Las Vegas MSA is $58,120, which is 6.7% less than the corresponding figure for the United States.

Median Household Income ‐ 2019 Median Las Vegas‐Henderson‐Paradise, NV Metro $58,120 United States $62,280 Comparison of Las Vegas‐Henderson‐Paradise, NV Metro to Unite ‐ 6.7% Source: Environics Analytics

The following chart shows the distribution of households across twelve income levels. The Las Vegas MSA has a greater concentration of households in the middle‐income levels than the United States. Specifically, 33% of Las Vegas MSA households are between the $35,000 ‐ $75,000 levels in household income as compared to 30% of United States households. A lesser concentration of households is apparent in the higher income levels, as 38% of Las Vegas MSA households are at the $75,000 or greater levels in household income versus 42% of United States households.

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Household Income Distribution ‐ 2019

0.8% $500,000 and more 1.7% 2.2% $250,000 ‐ 499,999 3.3% 2.2% $200,000 ‐ $249,999 3.1% 5.0% $150,000 ‐ $199,999 6.4% 5.7% $125,000 ‐ $149,999 6.2% 9.0% $100,000 ‐ $124,999 9.1% 13.2% $75,000 ‐ $99,999 12.3% 18.5% $50,000 ‐ $74,999 16.9% 14.1% $35,000 ‐ $49,999 12.6% 10.2% $25,000 ‐ $34,999 8.9% 9.1% $15,000 ‐ $24,999 9.1% 10.0% Less than $15,000 10.5%

0.0% 5.0% 10.0% 15.0% 20.0%

Las Vegas‐Henderson‐Paradise, NV Metro United States Source: Environics Analytics

Education and Age Residents of the Las Vegas MSA have a lower level of educational attainment than those of the United States. An estimated 23% of Las Vegas MSA residents are college graduates with four‐year degrees, versus 31% of United States residents. People in the Las Vegas MSA are similar in age to their United States counterparts. The median age of both the Las Vegas MSA and the United States is 38 years.

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Utilities: Water distribution in the Las Vegas metropolitan area originates from several sources. Underground aquifers contribute approximately 15% of the water to Southern Nevada and the other 85% is from the Colorado River. Nevada is one of seven states that use the Colorado River for its water supply. Las Vegas and Clark County participate in a water banking system that allows the water districts to store unused water for future use. This water banking system should extend the water resources by more than 30 years. Gaming and Tourism Market The following report collects top‐line results for the past six months in five Nevada reporting areas. With this perspective, the current direction of a variety of sectors in the state’s gaming market should be clear. In addition to statistics for overall, slot, and game revenues, it also includes year‐to‐year changes in each of those categories and slot hold, an important measure of value returned to gamblers, as well as the totals for the previous six months.

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Source: http://gaming.unlv.edu/reports/6_month_NV.pdf

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Source: Above tables available from Las Vegas Convention and Visitor’s Authority. See following URL: http://www.lvcva.com/stats‐and‐facts/visitor‐statistics

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LVCVA Summary of Monthly Tourism Indicators for Las Vegas, NV LAS VEGAS CONVENTION AND VISITORS AUTHORITY (LVCVA) For Calendar Year 2019 As of November 26, 2019 Compiled by the LVCVA Research Center

Tourism Indicators Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume 3,412,100 r 3,189,900 3,697,100 3,542,000 3,691,100 3,607,400 3,685,900 3,579,000 3,475,900 3,668,100 35,548,300 Convention Attendance 683,400 748,600 552,200 529,500 520,800 514,000 498,800 657,800 459,400 525,300 5,689,800 Available Room Inventory 148,186 148,168 148,006 148,400 148,909 149,627 148,789 149,032 149,050 149,282 149,282 Citywide Occupancy 84.0% r 87.0% 91.5% 91.0% 90.8% 91.7% 91.1% 87.7% 88.3% 90.0% 89.3% Weekend Occupancy 88.8% r 91.9% 97.1% 96.7% 96.4% 96.4% 97.2% 95.2% 95.6% 98.0% 95.3% Midweek Occupancy 82.1% r 84.6% 88.9% 88.9% 88.1% 89.7% 88.7% 84.1% 85.1% 87.1% 86.7% Strip Occupancy 85.1% r 88.3% 92.9% 92.6% 92.2% 93.4% 93.4% 89.6% 89.8% 91.3% 90.9% Downtown Occupancy 81.2% r 85.7% 88.1% 87.5% 87.0% 86.3% 85.1% 81.0% 83.6% 84.8% 85.0% Average Daily Room Rate (ADR) $156.53 r $130.06 $133.95 $130.40 $140.52 $120.43 $126.92 $120.96 $137.11 $135.33 $133.13 Strip ADR $169.45 r $140.05 $143.83 $141.37 $151.55 $129.49 $136.38 $131.33 $148.08 $146.50 $143.67 Downtown ADR $83.06 r $69.19 $74.94 $66.52 $77.10 $62.20 $69.09 $64.55 $78.29 $73.78 $71.89 Revenue Per Available Room (RevPAR) $131.49 r $113.15 $122.56 $118.66 $127.59 $110.43 $115.62 $106.08 $121.07 $121.80 $118.89 Strip RevPAR $144.20 r $123.66 $133.62 $130.91 $139.73 $120.94 $127.38 $117.67 $132.98 $133.75 $130.60 Downtown RevPAR $67.44 r $59.30 $66.02 $58.21 $67.08 $53.68 $58.80 $52.29$65.45$62.57 $61.11 Total Room Nights Occupied 3,861,000 r 3,607,300 4,198,700 4,049,200 4,191,000 4,116,100 4,204,100 4,049,400 3,946,800 4,179,000 40,402,700 Total En/Deplaned Passengers 3,897,250 r 3,628,594 r 4,405,920 r 4,277,550 r 4,584,506 r 4,444,263 r 4,507,098 r 4,431,608 4,324,072 4,609,318 43,110,179 Avg. Daily Auto Traffic: All Major Highways* 106,519 e 103,828 e 120,402 e 125,756 e 124,723 e 128,774 e 135,889 e 124,641 e 117,399 e 120,938 e 120,887 Avg. Daily Auto Traffic: I‐15 at NV/CA Border 39,041 37,372 43,077 46,645 46,993 48,915 53,151 47,708 43,078 42,013 44,799 Gaming Revenue : Clark County $860,846,000 $892,705,000 $882,845,000 $808,648,000 $835,841,000 $906,681,000 $860,392,000 $791,560,000 $913,572,000 $879,034,000 $8,632,124,000 Gaming Revenue: Las Vegas Strip $532,246,000 $591,738,000 $551,944,000 $481,855,000 $517,348,000 $616,593,000 $541,805,000 $520,659,000 $584,249,000 $538,521,000 $5,476,958,000 Gaming Revenue: Downtown $52,100,000 $58,005,000 $58,666,000 $61,775,000 $54,822,000 $52,178,000 $52,517,000 $45,316,000 $65,928,000 $68,320,000 $569,627,000 Gaming Revenue: Boulder Strip $81,859,000 $65,330,000 $70,365,000 $78,186,000 $69,759,000 $66,645,000 $81,755,000 $54,707,000 $74,563,000 $78,514,000 $721,683,000 Room Tax / LVCVA's Portion1 $28,058,424 $21,667,502 $26,117,738 $25,465,301 $27,180,643 $23,187,896 $24,734,881 $23,018,428 N/A N/A N/A Change from Previous Year Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume 0.5% r 1.9% ‐1.4% ‐0.2% 1.7% 1.2% 0.7% 0.7% 0.5% ‐0.3% 0.5% Convention Attendance 11.5% 8.5% ‐15.4% ‐6.1% 6.5% 2.7% 22.2% 1.7% 4.9% ‐21.1% 0.4% Available Room Inventory 1.0% 1.0% 0.4% 0.6% 0.6% 1.3% 0.8% 1.2% 0.8% 1.1% 1.1% Citywide Occupancy 0.2 r 1.7 ‐1.2 0.0 1.4 1.1 0.3 0.0 0.9 ‐1.4 0.3 Weekend Occupancy 1.9 r ‐2.0 0.5 ‐0.2 0.4 0.6 0.5 ‐0.3 ‐0.2 0.8 0.2 Midweek Occupancy ‐0.5 r 3.4 ‐1.9 0.1 1.4 1.7 ‐0.1 ‐0.5 1.9 ‐2.3 0.2 Strip Occupancy ‐0.2r 1.8 ‐0.8 0.8 1.7 1.8 0.7 0.1 1.4 ‐1.2 0.6 Downtown Occupancy 1.6 r 2.0 ‐0.5 ‐0.7 2.8 5.2 2.8 1.9 ‐0.5 ‐3.1 1.1 Average Daily Room Rate (ADR) 4.0% r 8.7% ‐0.2% 1.2% 5.1% 3.5% 6.6% 4.6% 0.6% ‐5.0% 2.6% Strip ADR 3.6% r 8.8% ‐0.4% 1.5% 5.3% 2.8% 6.7% 5.9% 0.9% ‐4.8% 2.7% Downtown ADR 3.6% r 6.5% 1.0% ‐0.1% 6.0% ‐2.6% 3.4% 4.3% ‐0.7% ‐2.2% 1.7% Revenue Per Available Room (RevPAR) 4.3%r10.9%‐1.5%1.2%6.7%4.7%6.9%4.6%1.7%‐6.4% 3.0% Strip RevPAR 3.4%r11.1%‐1.3%2.4%7.3%4.8%7.5%6.1%2.5%‐6.0% 3.6% Downtown RevPAR 5.7% r 9.0% 0.4% ‐0.9% 9.5% 3.7% 6.9% 6.8% ‐1.3% ‐5.6% 3.2% Total Room Nights Occupied 1.3% r 3.0% ‐0.9% 0.6% 2.2% 2.6% 1.2% 1.1% 1.9% ‐0.1% 1.3% Total En/Deplaned Passengers 3.3%r1.8%2.6%2.3%5.3%3.2%2.0%3.1%6.8%4.2% 3.5% Avg. Daily Auto Traffic: All Major Highways* 2.3% ‐2.1% ‐0.7% 6.2% 1.6% 2.6% 3.8% ‐1.5% 0.0% 0.2% 1.3% Avg. Daily Auto Traffic: I‐15 at NV/CA Border 0.1% ‐6.3% ‐4.1% 6.3% ‐0.6% ‐0.2% 0.2% ‐0.6% ‐2.6% ‐3.7% ‐1.1% Gaming Revenue : Clark County ‐3.5% 0.4% ‐0.6% ‐2.0% ‐7.6% 14.6% 2.5% 4.7% 8.3% ‐5.1% 0.9% Gaming Revenue: Las Vegas Strip ‐4.1% ‐1.9% ‐3.8% ‐3.5% ‐11.1% 17.7% 1.6% 8.9% 7.0% ‐9.3% ‐0.2% Gaming Revenue: Downtown ‐7.8%9.0%8.7%2.1%2.8%18.5%7.6%‐1.9%19.9% 7.2% 6.4% Gaming Revenue: Boulder Strip ‐9.7% 2.4% 8.9% ‐0.2% ‐12.6% 9.4% 3.8% ‐12.0% 10.4% 0.2% ‐0.4% Room Tax / LVCVA's Portion1 2.3% 11.7% ‐4.0% 2.3% 5.7% 6.0% 6.8% 6.2% N/A N/A N/A Sources: Las Vegas Convention and Visitors Authority; McCarran International Airport; Nevada Department of Transportation (NDOT); Nevada Gaming Control Board For more information, visit www.lvcva.com/stats‐and‐facts/

Mount Potosi Canyon Economic Analysis 19

LVCVA Summary of Monthly Tourism Indicators for Laughlin, NV LAS VEGAS CONVENTION AND VISITORS AUTHORITY (LVCVA) For Calendar Year 2019 As of November 26, 2019 Compiled by the LVCVA Research Center Tourism Indicators Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume 142,200 141,600 173,500 160,200 158,700 166,000 182,300 160,400 140,700 147,600 1,573,400 Room Inventory 9,759 9,759 9,759 9,759 9,759 9,759 9,759 9,759 9,759 9,759 9,759 Total Occupancy 56.3% 63.1% 70.9% 67.2% 64.0% 70.0% 75.0% 64.8% 57.8% 58.8% 64.8% Average Daily Room Rate (ADR) $37.17 $42.13 $46.34 $54.37 $52.94 $50.23 $56.65 $58.01 $47.36 $43.94 $49.33 Revenue Per Available Room (RevPAR) $20.93 $26.58 $32.86 $36.54 $33.88 $35.16 $42.49 $37.59 $27.37 $25.84 $31.97 Total Room Nights Occupied 170,300 172,400 214,500 196,700 193,600 204,900 226,900 196,000 169,200 177,900 1,922,600 Gross Gaming Revenue $46,504,000 $44,808,000 $49,604,000 $45,392,000 $45,447,000 $39,413,000 $43,773,000 $38,783,000 $39,879,000 $44,471,000 $438,074,000 Laughlin/Bullhead City En/Deplaned Passengers 21,968 21,351 26,819 24,414 23,662 18,833 20,162 19,776 20,192 22,727 219,904 Avg. Daily Auto Traffic: Highway 163 4,256 4,552 5,319 5,629 4,861 4,931 5,069 4,539 4,559 4,667 4,838 Change from Previous Year Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume ‐4.2% ‐6.7% ‐3.4% ‐4.6% ‐1.1% ‐4.1% ‐3.0% 0.9% ‐4.8% ‐5.4% ‐3.6% Room Inventory ‐1.0% ‐1.0% ‐1.0% ‐1.0% ‐1.0% ‐0.9% ‐0.9% ‐0.9% ‐0.9% ‐1.4% ‐1.4% Total Occupancy ‐2.7 ‐5.0 ‐2.6 ‐3.5 ‐0.6 ‐3.3 ‐2.7 0.5 ‐3.6 ‐3.5 ‐2.7 Average Daily Room Rate (ADR) ‐7.0% ‐11.0% ‐3.3% ‐2.9% ‐0.4% 0.1% 3.0% 10.1% ‐3.9% ‐2.7% ‐1.1% Revenue Per Available Room (RevPAR) ‐11.2% ‐17.6% ‐6.7% ‐7.7% ‐1.4% ‐4.4% ‐0.6% 10.9% ‐9.5% ‐8.2% ‐5.1% Total Room Nights Occupied ‐5.6% ‐8.3% ‐4.5% ‐5.9% ‐2.0% ‐5.3% ‐4.1% 0.3% ‐6.3% ‐6.9% ‐4.8% Gross Gaming Revenue 1.8% ‐0.7% ‐4.2% ‐2.7% 3.2% 8.4% 5.8% 1.5% 4.6% ‐5.5% 0.9% Laughlin/Bullhead City En/Deplaned Passengers 3.3% ‐6.8% 5.8% 5.2% 18.3% 17.6% 14.5% 11.3% 5.4% ‐10.1% 5.4% Avg. Daily Auto Traffic: Highway 163 ‐3.8% ‐4.4% 0.5% 2.6% 1.1% 1.0% 0.3% ‐1.5% 3.5% ‐1.3% ‐0.1% Sources: Las Vegas Convention and Visitors Authority; Mohave County Airport Authority; Nevada Department of Transportation (NDOT); Nevada Gaming Control Board For more information, visit www.lvcva.com/stats‐and‐facts/

LVCVA Summary of Monthly Tourism Indicators for Mesquite, NV LAS VEGAS CONVENTION AND VISITORS AUTHORITY (LVCVA) For Calendar Year 2019 As of November 26, 2019 Compiled by the LVCVA Research Center Tourism Indicators Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume 101,200 99,500 133,100 123,900 119,900 110,800 108,000 97,700 92,000 117,800 1,103,900 Room Inventory 1,885 1,885 1,885 1,885 1,885 1,863 1,863 1,863 1,863 1,863 1,863 Total Occupancy 69.9% 76.1% 91.9% 88.4% 82.8% 80.0% 75.5% 68.3% 66.4% 82.3% 78.2% Average Daily Room Rate (ADR) $60.07 $65.49 $76.09 $68.34 $65.67 $55.11 $49.08 $50.40 $52.11 $67.18 $61.69 Revenue Per Available Room (RevPAR) $41.99 $49.84 $69.93 $60.41 $54.37 $44.09 $37.06 $34.42 $34.60 $55.29 $48.24 Total Room Nights Occupied 40,800 40,200 53,700 50,000 48,400 44,700 43,600 39,400 37,100 47,500 445,500 Gross Gaming Revenue $11,777,000 $11,400,000 $14,214,000 $12,232,000 $11,847,000 $9,739,000 $10,063,000 $9,723,000 $10,321,000 $12,163,000 $113,479,000 Avg. Daily Auto Traffic: I‐15 at NV/AZ border 25,193 25,034 29,604 30,129 30,089 30,932 32,211 29,838 28,757 29,370 29,116 Change from Previous Year Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 2019 YTD Visitor Volume 0.5% ‐5.0% 0.0% 1.3% 1.5% ‐1.4% ‐4.1% 0.6% ‐2.1% ‐2.5% ‐1.1% Room Inventory ‐0.5% ‐0.5% ‐0.5% ‐0.5% ‐0.5% ‐2.3% ‐2.3% ‐2.3% ‐2.3% ‐2.3% ‐2.3% Total Occupancy 0.7 ‐3.6 0.4 1.5 1.6 0.6 ‐1.5 1.9 0.0 ‐0.3 0.2 Average Daily Room Rate (ADR) 4.5% ‐1.3% 6.0% 8.2% 7.7% ‐1.8% ‐9.1% ‐3.6% ‐5.1% 3.7% 1.7% Revenue Per Available Room (RevPAR) 5.5% ‐5.8% 6.5% 10.0% 9.8% ‐1.1% ‐10.8% ‐0.8% ‐5.1% 3.3% 1.9% Total Room Nights Occupied 0.5% ‐5.0% ‐0.1% 1.2% 1.4% ‐1.5% ‐4.2% 0.5% ‐2.3% ‐2.6% ‐1.2% Gross Gaming Revenue 7.0% 7.0% 8.1% 4.0% 4.6% 2.9% 5.7% 4.8% 1.5% 7.3% 5.4% Avg. Daily Auto Traffic: I‐15 at NV/AZ border 4.4% ‐0.9% 0.5% 5.1% 1.7% 1.2% 1.8% 0.5% 0.9% ‐0.6% 1.4%

Sources: Las Vegas Convention and Visitors Authority; Nevada Department of Transportation (NDOT); Nevada Gaming Control Board For more information, visit www.lvcva.com/stats‐and‐facts/ http://www.lvcva.com/stats‐and‐facts/visitor‐statistics

Mount Potosi Canyon Las Vegas MSA Area Analysis 20

Mount Potosi Canyon Las Vegas MSA Area Analysis 21

Mount Potosi Canyon Las Vegas MSA Area Analysis 22

Mount Potosi Canyon Las Vegas MSA Area Analysis 23

Source: Home Builders Research Inc. http://www.homebuildersresearch.com/lvnewsletter/ Permission to utilize in our appraisal reports has been granted by Dennis Smith

Mount Potosi Canyon Las Vegas MSA Area Analysis 24

McCarran International Airport McCarran International Airport is one of the most modern airports in the country. According to the Federal Aviation Administration, the Las Vegas airport is also one of the fastest growing airport facilities in the United States. The most recent reports show that McCarran is the nation's eighth‐busiest passenger airport on the Airports Council International‐North America's annual traffic ranking in 2015. On a world level, McCarran is ranked 26th busiest in airport traffic in the same publication. (See the following Internet URL: http://www.aci‐na.org/content/airport‐traffic‐reports.)

McCarran International Airport celebrated the opening of the new Terminal 3 in June of 2012. This 1.9 million‐square foot expansion added 14 gates, seven of which are being used for international flights, an eight‐story parking garage, more than a dozen stores and restaurants, and an automated tram system. Coupled with the airport’s existing infrastructure, Terminal 3 increases the annual capacity to approximately 53 million passengers.

In 2007, McCarran completed their busiest year with approximately 47.7 million arriving and departing passengers reported. The total marked about a 3.1% increase from 2006, which was previously McCarran’s busiest year prior to 2007 with nearly 46.3 million passengers. This passenger count surpassed the 2005 record of 44.3 million by 4.6%. However, the passenger counts were down 7.7% in 2008 compared to 2007. The passenger count for 2010 was 39,757,359. McCarran’s 2011 passenger count exceeded 41.5 million, an increase of 4.3%. McCarran’s passenger count in 2012 and 2013 remained stable at 41.7 million and 41.9 million passengers respectively. Nearly 43 million passengers traveled through Las Vegas in 2014 (42.9 million). This was a 2.5% increase from the prior year. McCarran posted its highest passenger volume since 2007 in 2016, with 47,435,640 passengers arriving and departing. The latest figures indicate that the Year‐to‐Date comparisons from August of 2018 to August of 2019 show an increase of 3.1% in the comparative months and 3.0% YTD (Year‐to‐Date) growth from 2018 to 2019.

Mount Potosi Canyon Las Vegas MSA Area Analysis 25

Source: https://www.mccarran.com/Business/

Mount Potosi Canyon Las Vegas MSA Area Analysis 26

Conclusion The Las Vegas MSA economy will be affected by a growing population base and lower income and education levels. The Las Vegas MSA experienced growth in the number of jobs over the past decade, and it is reasonable to assume that employment growth will occur in the future. We anticipate that the Las Vegas MSA economy will improve and employment will grow, strengthening the demand for real estate.

Mount Potosi Canyon Las Vegas MSA Area Analysis 27

Area Map

Subject

Mount Potosi Canyon Land Description and Analysis 28

Property Analysis

Land Description and Analysis

Land Description Land Area 234.11 acres; 20,047,183 SF Source of Land Area Past Appraisal Primary Street Frontage Mount Potosi Canyon Rail Access No Water/Port Access No Topography Undulating Drainage No problems reported or observed Environmental Hazards None reported or observed Ground Stability No problems reported or observed Flood Area Panel Number 32003C2580E Date November 16, 2011 Zone X Description Outside of 500‐year floodplain Insurance Required? No Zoning; Other Regulations Zoning Jurisdiction Clark County Zoning Designation R‐U Description Rural Open Land Legally Conforming? Appears to be legally conforming Zoning Change Likely? No Permitted Uses low density residential at 0.5 units per acre Other Land Use Regulations MDP ‐ Major Development Project

Utilities The subject site is currently serviced by public power and there is a private septic system for the cabin on the north portion of the site. Information previously supplied indicates there are water rights for 145 acre feet under Nevada Water Permits 88245 and 88246 in the Mesquite Valley (Sandy Valley) Basin 163. There is also a reported artesian spring that provides another 468,000 gallons per year. While this is more than adequate for the existing cabin located on the site, it is not known if it is adequate for more intense development such as the previously approved health spa retreat and residential subdivision. The Clark County Health district would have to approve a sewage system and treatment of water for culinary purposes for this type of development. We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required.

Mount Potosi Canyon Land Description and Analysis 29

Mount Potosi Canyon Land Description and Analysis 30

Mount Potosi Canyon Land Description and Analysis 31

Mount Potosi Canyon Land Description and Analysis 32

Easements, Encroachments and Restrictions We were not provided a current title report to review. We are not aware of any easements, encroachments, or restrictions that would adversely affect value. Our valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title.

We are not aware of any easements, encumbrances, or restrictions that would adversely affect the use of the site, however, we have not been provided with a current title report to review. We are aware that the Bureau of Land Management granted a temporary right‐of‐way for access in October 1986. The easement was reportedly 100 feet wide and 6,097.47 feet long and was noted to have expired in October 2006. We have not been able to confirm that this right‐of‐way permit was extended. However, obtaining permission to pave this roadway, which is considered crucial to the owner’s previous development plans, has been problematic. Currently, access is via a graded roadway that is being maintained by Clark County within ½ mile of the site. A title search is recommended to determine whether any adverse conditions exist.

SUBJECT ENVIRONS

Youth Camp

Boy Scout Camp

Clark County Parks & Rec.

Subject

The subject property is located in the southwest portion of the Las Vegas Valley in the Mount Potosi Canyon. Mount Potosi is located at the south end of the Spring Mountains National Recreation Area (SMNRA). The Spring Mountains are a long, linear, north‐south aligned mountain range that are some 55

Mount Potosi Canyon Land Description and Analysis 33

miles along the west side of the Las Vegas Valley. From the perspective of town, the Spring Mountains are anchored by Mount Charleston to the north and Mount Potosi to the south with elevations of 11,918 and 8,514 feet respectively. The SMNRA is part of the Humboldt‐Toiyabe National Forest.

The only development within immediate vicinity of the subject is a Boy Scout camp, a youth camp with numerous cabins, and two residential structures that are owned by Clark County Parks & Recreation. We are not aware of any privately owned land (other than the subject) within the Mount Potosi Canyon area (within SMNRA). The area is historically known for being the “crash site” of TWA Flight 3 that killed 22 passengers on January 16, 1942 including Carole Lombard (famous movie star and wife of Clark Gable). The subject property is located on the western side of Mount Potosi while crash site is reportedly on the east side of the mountain.

Given the minimal amount of privately owned land in the area, growth and development is non existent. However, the current economy has regained strength and it appears demand for development in the Las Vegas Paradise MSA is strong. This increases the desirability and marketability of the subject property. The area is expected to maintain its desirability as part of a national forest.

Conclusion of Land Analysis Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. We are not aware of any other particular restrictions on development.

Mount Potosi Canyon Land Description and Analysis 34

Mount Potosi Canyon Land Description and Analysis 35

Mount Potosi Canyon Land Description and Analysis 36

Clark County Assessor’s Parcel Maps

Mount Potosi Canyon Land Description and Analysis 37

Clark County Assessor’s Parcel Maps

Mount Potosi Canyon Land Description and Analysis 38

AERIAL VIEWS FROM GOOGLE

Subject

Subject

Subject

Source: Google Earth Pro

Mount Potosi Canyon Land Description and Analysis 39

Tentative Map – Subject Lots

Mount Potosi Canyon Land Description and Analysis 40

FOREST SERVICE MAP SHOWING SUBJECT

Subject

Subject

Mount Potosi Canyon Land Description and Analysis 41

ENLARGEMENT OF FOREST SERVICE MAP

Clark County Parks & Rec. Site

Subject

Subject

Subject

Mount Potosi Canyon Real Estate Taxes 42

Real Estate Taxes Real estate tax assessments are administered by Clark County and are estimated by jurisdiction on a county basis for the subject. The property is located in Clark County. Real estate taxes in this state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property may be determined by dividing the assessed value for a property by 100, then multiplying the estimate by the composite rate. The composite rate is based on a consistent state tax rate throughout this state, in addition to one or more local taxing district rates. The assessed values are based upon the current conversion assessment rate of 35.00% of Assessor’s market value. Real estate taxes and assessments for the current tax year are shown in the following table.

Real estate taxes and assessments for the current tax year are shown in the following table.

Taxes and Assessments ‐ 2020 Assessed Value Taxes and Assessments Ad Valorem Tax ID Land Improvements Total Tax Rate Taxes Direct Assessments Total 195‐01‐000‐003 $2,100 $30,147 $32,247 2.501700% $807 ‐$6 $801 195‐01‐000‐004 $2,100 $0 $2,100 2.501700% $53 ‐$13 $39 195‐01‐000‐005 $2,100 $0 $2,100 2.501700% $53 ‐$13 $39 195‐12‐000‐002 $2,092 $0 $2,092 2.501700% $52 ‐$13 $39 195‐12‐000‐003 $2,096 $0 $2,096 2.501700% $52 ‐$13 $39 195‐12‐000‐004 $8,648 $0 $8,648 2.501700% $216 ‐$55 $161 195‐12‐000‐005 $8,673 $0 $8,673 2.501700% $217 ‐$55 $162 195‐12‐000‐006 $8,673 $0 $8,673 2.501700% $217 ‐$55 $162 195‐12‐000‐007 $8,677 $0 $8,677 2.501700% $217 ‐$55 $162 195‐12‐000‐008 $9,979 $0 $9,979 2.501700% $250 ‐$63 $187 195‐12‐000‐009 $8,653 $0 $8,653 2.501700% $216 ‐$54 $162 195‐12‐000‐010 $8,648 $0 $8,648 2.501700% $216 ‐$55 $162 195‐12‐000‐011 $8,677 $0 $8,677 2.501700% $217 ‐$55 $162 195‐12‐000‐012 $8,677 $0 $8,677 2.501700% $217 ‐$55 $162 195‐12‐000‐013 $8,551 $0 $8,551 2.501700% $214 $54 $268 $98,344 $30,147 $128,491 $3,214 ‐$506 $2,708

The composite tax rate for the subject for the current tax year of 2019 is 2.93280%. Application of this rate to the total assessed value of $160,512 amounts to the subject’s real estate tax liability of $4,707. However, the subject has a tax cap reduction $3,056, bringing the total liability down to $1,651. Assessments are statutorily capped at $3.64 per $100 of assessment per NRS 361.453. http://www.leg.state.nv.us/NRS/NRS‐361.html#NRS361Sec453

Mount Potosi Canyon Real Estate Taxes 43

Assessor's Market Value Tax ID Land Improvements Total 195‐01‐000‐003 $6,000 $86,134 $92,134 195‐01‐000‐004 $6,000 $0 $6,000 195‐01‐000‐005 $6,000 $0 $6,000 195‐12‐000‐002 $5,977 $0 $5,977 195‐12‐000‐003 $5,989 $0 $5,989 195‐12‐000‐004 $24,709 $0 $24,709 195‐12‐000‐005 $24,780 $0 $24,780 195‐12‐000‐006 $24,780 $0 $24,780 195‐12‐000‐007 $24,791 $0 $24,791 195‐12‐000‐008 $28,511 $0 $28,511 195‐12‐000‐009 $24,723 $0 $24,723 195‐12‐000‐010 $24,709 $0 $24,709 195‐12‐000‐011 $24,791 $0 $24,791 195‐12‐000‐012 $24,791 $0 $24,791 195‐12‐000‐013 $24,431 $0 $24,431 $280,983 $86,134 $367,117

Based on the concluded market value of the subject, the assessed value appears low.

Mount Potosi Canyon Highest and Best Use 44

Highest and Best Use Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as vacant, and as improved. By definition, the highest and best use must be:

 Physically possible.  Legally permissible under the zoning regulations and other restrictions that apply to the site.  Financially feasible.  Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Vacant Physically Possible The subject parcel is one of only two privately owned parcels within the Mount Potosi Canyon which is part of the Spring Mountains National Recreation Area (SMNRA). The SMNRA is part of the Humboldt‐ Toiyabe National Forest. The subject property is zoned RU, Rural Open Land, which generally allows residential development at a maximum density of 0.5 unit per acre. Within a 5‐mile radius of the subject site, the only development noted is a Boy Scouts Camp, a Catholic camp for youths and two cabins or structures owned by Clark County Parks and Recreation. This Boy Scouts of America site is approximately 1,136 acres and is currently listed for $90 million or approximately $80,000 per acre. This Boy Scouts land is close to 5 times the size of the subject and does not have water connected to the site and does not have any water rights we are aware of. Also, there are no development approvals on this land, either and would also have to be provided with road arterial improvements like the subject. The subject’s current owner/developer previously obtained a use permit for a portion of the site that allows for a health spa retreat and the associated recreational facilities. The tentative plans allowed for a 112‐room health spa, dining facilities, 66 bungalows and 46 rooms in the lodge. In their January 17, 2008 meeting, the Clark County Planning Commission approved a final grading plan that would allow a maximum of 104 residential lots on the remainder of the property. It is our understanding this approval expired in January 2010 due to the inactivity on the site or approval of an extension. While this permit has expired it is indication if the owner reapplied, the permit would be reissued. The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses.

Legally Permissible The subject site consists of 15 parcels in two groupings consisting of 234.11 gross acres; the two groups are not contiguous, they are approximately 600 feet apart and are separated by BLM owned land.

Mount Potosi Canyon Highest and Best Use 45

The site is located in the Mt. Potosi area of the Humboldt‐Toiyabe National Forest, approximately 4.5 miles south of Highway 160 and 30 miles southwest of Las Vegas. Access to the site is via Potosi Canyon Road, which is a dirt road that is graded and maintained by Clark County to within ½ mile of the subject site.

The topography varies from basically level to extremely rough and mountainous. We are not aware of any unusual soils conditions; they are assumed typical for the area. Additionally, we are not aware of any hazards; however, we are aware that the Potosi Mine, which is located in this area, could contain lead waste. Therefore, we recommend a Phase I assessment of the subject from qualified professionals before committing funds to the property.

The physical attributes of the site, which include its location in a National Forest and varying topography, suggest that recreational or very low density residential use would best conform to the surrounding area. Therefore, the legally permissible and physically possible uses narrow the potential uses of this site to recreational and/or very low density residential uses that would conform to the surrounding area.

The site is zoned R‐U, Rural Open Land. Permitted uses include low density residential at 0.5 units per acre. To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Given prevailing land use patterns in the area, only mixed use residential development per the prior approvals on the subject site is given further consideration in determining highest and best use of the site, as though vacant.

Financially Feasible First we considered the state of the residential market. Based on our analysis of this market, there is currently limited demand for this type of use at this time which in turn limits the price and profit potential of new development. The development costs would include the cost to pave the access road (as one of the requirements noted for the previous approval of the property to begin with), the cost to extend and possibly upgrade the water, sewer treatment and power capabilities, and any other grading or infrastructure that will be required for this type of development. However, possibly the most important considerations in the feasibility of developing this site are related to the US Forest Service approving a paved access road from Highway 160 and the potential environmental issues related to the Mt. Potosi mine.

Based on the unknown timing of the road approval, which may or may not be forthcoming, as well as the unknown environmental issues related to the mine and development costs, development of the property at this time does not appear to meet the test of being presently feasible until these elements are clarified for development. The provision of road access and the clarification of environmental issues pertaining to the subject property via an environmental assessment would transition the property to being a much more attractive, immediate development opportunity. Therefore, it is our opinion that any present development conclusions would be highly speculative at this time. The development of the subject will require road access and clarification of any unknown environmental conditions.

Mount Potosi Canyon Highest and Best Use 46

Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than holding the property for future development of a mixed use residential development. Accordingly, it is our opinion that holding the property for future mixed use residential development, based on the normal market density level permitted by zoning, is the maximally productive use of the property.

Conclusion Holding the property for future development of a mixed use residential development is the only use that meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as vacant.

As Improved No improvements are situated on the subject. Therefore, a highest and best analysis as improved is not applicable.

Most Probable Buyer Taking into account the functional utility of the site and area development trends, the probable buyer is a speculator that anticipates holding the property and working on the road access for the property until the US Forestry Service approves the access road and a satisfactory Phase I environmental report is obtained.

Mount Potosi Canyon Valuation Methodology 47

Valuation

Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach.

The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties.

The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner‐user properties.

The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income‐producing properties.

Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type.

The methodology employed in this assignment is summarized as follows:

Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized

Mount Potosi Canyon Sales Comparison Approach 48

Sales Comparison Approach To develop an opinion of the subject’s land value, as if vacant and available to be developed to its highest and best use, we utilize the sales comparison approach. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties.

There are not a great deal of large acreage land sales in the outlying areas of the Las Vegas Paradise MSA, therefore, we extended our date of sale parameters back to 2016 and focused on any large land sales close to outlying areas, regardless of potential use. Three of the four sales used are residential sites and Sale 1 is a mixed use residential with plans for a bed and breakfast, which is similar to the subject’s prospective development.

For this analysis, we use price per acre as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table.

Mount Potosi Canyon Sales Comparison Approach 49

Summary of Comparable Land Sales Sale Date; Effective Sale SF; $/SF No. Name/Address Status Price Acres Zoning Land $/Acre 1 Bonnie Springs Ranch Apr‐19 $25,000,000 2,781,742Rural Open $8.99 $391,481 16395 Bonnie Springs Rd. Closed 63.86 Land Las Vegas Clark County NV Tax ID: 174‐02‐000‐002 Comments: The property was sold by a family that had owned the land for roughly 67 years. They operated a business on‐site but decided to cash out. The buyer intends to map out 20 residential lots that range from 2‐3 acres a piece. They will then sell the lots to people who intend to build their own homes. They estimate multimillion dollar valuation figures per home. There will also be a commercial component to the development. They will eventually build an event center, high end restaurant, and bed & breakfast. No timeline or building specifications are available. They are still working on getting approvals for the residential development. No sale conditions impacted the price. No concessions or credits given to the buyer. 2 140 Acres of Vacant Land Apr‐17 $12,020,000 6,098,400No Zoning $1.97 $85,857 Gilespie St. & Shayna Ave. Closed 140.00 Currently Henderson Clark County NV Tax ID: 191‐16‐501‐008, 191‐16‐601‐006, 191‐16‐601‐007, 191‐16‐201‐008 Comments: This transaction represents the sale of 140‐acres of raw desert land near Henderson. This was a BLM auction sale; the auction closed in April, and the sale recorded & funded in October. There are currently no utilities to the site. Proposed use for the land is single‐ family residential development. Recorded documents and updated plat maps for this sale were not yet available. There were no other reported conditions on this transaction. 3 Blue Diamond Road (SR‐159) at Hickey Aug‐17 $6,000,000 3,122,816Rural Estates $1.92 $83,694 Drive Residential Blue Diamond Rd. Closed 71.69 Unincorp. Clark County Clark County NV Tax ID: APN 175‐15‐101‐003 Comments: This transaction involved the sale of 72.69 gross acres of vacant/unimproved land located within the Southwest Las Vegas sub‐ market area within the Red Rock Design Overlay District. The parcel consists of moderately rolling terrain that is located within a hillside and foothills transition boundary overlay area and the terrain slopes downward in an overall northeast direction from the Blue Diamond Road location to the Upper Blue Diamond Wash. At the time of sale, the majority of this parcel was contained within an unmitigated FEMA Flood Zone "A". Also, the site is transected in an overall northwest‐southeast alignment by a 100' foot wide electrical power easement owned by NV Energy that is improved with aerial 69 kV facilities suspended on wood power poles. There is also a very old 8" waterline that was originally constructed by the Union Pacific Railroad (UPRR) that follows this same general alignment across this parcel, portions of which are exposed and above ground. This property has been the subject of two previous residential real estate developers who planned on developing the site with various density single‐family residential improvements, The last developer (Harmony Homes) purchased the property in 2010 and the most recent planning documents from 2015 show that Harmony Homes planned to develop the site with 116 residential housing units or a density of about 1.6 dwelling units per acre. This developer sold the property to American West Development, a prominent local single‐family residential developer after substantial development planning related work had been completed. As of the creation of this sale record (10‐21‐2018), there was no development planning data within the Clark County records related to American West Development so as of this time it was unknown what their ultimate plan was for this site. The property sold for $6,000,000 in August of 2017 or the equivalent of $83,693.68 per gross acre or $1.92 per square foot of land area. *Please note that the Grant, Bargain and Sale Deed associated with this sale and transfer is recorded at $1,000,000. According to the listing, as part of the acquisition price, the purchaser retired a $5,000,000 seller debt so the final purchase price was $6,000,000.

4 Vacant Land Apr‐16 $6,840,460 2,741,418General $2.50 $108,692 5835 E. Ann Rd. Closed 62.93 Industrial North Las Vegas Clark County NV Tax ID: 123‐33‐501‐004 Comments: This is the sale of 59.61 acres located in North Las Vegas near the Speedway, between N. Las Vegas Boulevard and the I‐15 Expressway. Subject 20,047,183 Rural Open Mount Potosi Canyon 234.11 Land Las Vegas, NV

Mount Potosi Canyon Sales Comparison Approach 50

Comparable Land Sales Map

Mount Potosi Canyon Sales Comparison Approach 51

Sale 1 Sale 2 Bonnie Springs Ranch 140 Acres of Vacant Land

Sale 3 Sale 4 Blue Diamond Road (SR‐159) at Hickey Drive Vacant Land

Mount Potosi Canyon Sales Comparison Approach 52

Analysis and Adjustment of Sales The sales are compared to the subject and adjusted to account for material differences that affect value. Adjustments are considered for the following factors, in the sequence shown below.

Adjustment Factor Accounts For Comments Effective Sale Price Atypical economics of a transaction, No adjustment warranted. such as demolition cost or expenditures by buyer at time of purchase. Real Property Rights Fee simple, leased fee, leasehold, No adjustment warranted. partial interest, etc. Financing Terms Seller financing, or assumption of No adjustment warranted. existing financing, at non‐market terms. Conditions of Sale Extraordinary motivation of buyer No adjustment warranted. or seller, assemblage, forced sale. Market Conditions Changes in the economic We apply a 5.0% annual adjustment environment over time that affect for improved market conditions. the appreciation and depreciation of real estate. Location Market or submarket area Comparables 1 and 2 warrant influences on sale price; downward adjustment for their surrounding land use influences. superior location in developing areas. While the subject is in an outlying area, we note it is surrounded by US Forest Service land. Typically, properties surrounded by Forest Service land are difficult to negotiate for development approvals but that has been successfully obtained from Clark County from Clark County for the subject property. Further, these properties are also difficult to obtain needed right‐of‐way access across federal property. This difficulty remains for the subject property. However, the subject’s location surrounded by Forest Service land is also considered a positive attribute once developed

Mount Potosi Canyon Sales Comparison Approach 53

Adjustment Factor Accounts For Comments since it represents one of the few developable privately owned sites with available utilities in the surrounding area. Access/Exposure Convenience to transportation No adjustment warranted. facilities; ease of site access; visibility; traffic counts. Size Inverse relationship that often All comparables warrant a exists between parcel size and unit downward adjustment as they are value. smaller than the subject. Typically, smaller sites sell at increased unit prices compared to larger sites with similar utility. Shape and Primary physical factors that affect All comparables warrant downward Topography the utility of a site for its highest adjustment for their superior and best use. topography compared to the subject. Zoning Government regulations that affect Comparable 1 has a CT (Commercial the types and intensities of uses Tourist) planned land use which allowable on a site. allows for an increased variety of potential development scenarios compared to the subject, accounting for the downward adjustment. Comparable Sale 3 warrants an upward adjustment for its Rural neighborhood Preservation Overlay, which limits the density of the site to 1 dwelling per acre. The subject has a MDP (Major Development Project) designation which allows for a higher variety of development scenarios. Comparable Sale 4 warrants a downward adjustment for its M‐D light industrial zoning.

Mount Potosi Canyon Sales Comparison Approach 54

The following table summarizes the adjustments we make to each sale.

Land Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Name Mount Potosi Bonnie Springs 140 Acres of Blue Diamond Vacant Land Canyon Ranch Vacant Land Road (SR‐159) at Hickey Drive Address Mount Potosi 16395 Bonnie Gilespie St. & Blue Diamond Rd. 5835 E. Ann Rd. Canyon Springs Rd. Shayna Ave. City Las Vegas Las Vegas Henderson Unincorp. Clark North Las Vegas County County Clark Clark Clark Clark Clark StateNevadaNVNVNVNV Sale Date Apr‐19 Apr‐17 Aug‐17 Apr‐16 Sale Status Closed Closed Closed Closed Sale Price $25,000,000 $12,020,000 $6,000,000 $6,840,460 Price Adjustment –––– Description of Adjustment Effective Sale Price $25,000,000 $12,020,000 $6,000,000 $6,840,460 Square Feet 20,047,183 2,781,742 6,098,400 3,122,816 2,741,418 Acres 234.11 63.86 140.00 71.69 62.93 Price per Acre $391,481 $85,857 $83,694 $108,692 Property Rights Fee Simple Fee Simple Fee Simple Fee Simple % Adjustment –––– Financing Terms Cash to seller Cash to seller ‐ Cash to seller Cash to seller % Adjustment –––– Conditions of Sale % Adjustment –––– Market Conditions 9/30/2019 Apr‐19 Apr‐17 Aug‐17 Apr‐16 Annual % Adjustment 10% 5% 25% 21% 34% Cumulative Adjusted Price $411,055 $107,321 $101,269 $145,647 Location ‐15% ‐5% – – Access/Exposure –––– Size ‐10% ‐5% ‐10% ‐10% Shape and Topography –––– Zoning ‐10% – 5% ‐5% Entitlements –––– Net $ Adjustment ‐$143,869 ‐$10,732 ‐$5,063 ‐$21,847 Net % Adjustment ‐35% ‐10% ‐5% ‐15% Final Adjusted Price $267,186 $96,589 $96,206 $123,800 Overall Adjustment ‐32% 13% 15% 14%

Range of Adjusted Prices $96,206 ‐ $267,186 Average $145,945 Indicated Value $175,000

Mount Potosi Canyon Sales Comparison Approach 55

Land Value Conclusion We note the listing of the Boy Scouts of America land located near the subject. This Boy Scouts of America site is approximately 1,136 acres and is currently listed for $90 million or approximately $80,000 per acre. We note this site is substantially larger than the subject and has superior access as the graded road provides access to this site and its closer to the highway. However, this site has no water rights, while the subject does. Due to the subject’s water and smaller size, we would expect the subject would have an increased unit value compared to the Boy scouts of America site. We also note this is a listing and not a closed sale. While we take this listing into account, a closed sale is a superior comparable over a listing.

Prior to adjustment, the sales reflect a range of $83,694 ‐ $391,481 per acre. After adjustment, the range is narrowed to $96,206 ‐ $267,186 per acre, with an average of $145,945 per acre. Due to the uniqueness of the subject, all sales warrant substantial adjustment. While we give the greatest weight to comparables 2, 3, and 4, we also take Comparable Sale 1 into account, and arrive at a land value conclusion as follows:

Land Value Conclusion Indicated Value per Acre $175,000 Subject Acres 234.11 Indicated Value $40,969,250 Rounded $41,000,000

We note the subject has a tentative map for 104 lots. For further support, we looked at sales in outlying areas such as Calico Basin, near Blue Diamond road, Mountain Springs, lots off of Lovell Summit Road, Trout Canyon, Echo Canyon, and Cathedral Rock. The Comparables Sales are listed as follows.

Outlying Lot Sales Area Parcel Number Sale Date Sale Price Lot Size (Acres) $/Acre Calico Basin 164‐06‐101‐005 9/27/2019 $1,400,000 5.37 $260,708 Calico Basin 164‐06‐101‐003 12/20/2018 $920,000 2.02 $455,446 Calico Basin 164‐06‐201‐001 1/11/2019 $850,000 2.00 $425,000 Calico Basin 164‐06‐701‐013 10/12/2018 $635,000 2.29 $277,293 Blue Diamond Area 175‐16‐701‐002 8/20/2018 $299,000 1.98 $151,010 Blue Diamond Area 175‐16‐301‐001 7/19/2019 $170,000 2.09 $81,340 Mountain Springs 174‐20‐402‐001 2/20/2019 $35,000 0.38 $92,105 Lovell Summit Road 135‐31‐401‐018 4/29/2019 $200,000 7.83 $25,543 Lovell Summit Road 135‐31‐401‐021 5/17/2019 $200,000 8.72 $22,936 Trout Canyon 134‐27‐601‐023 6/14/2018 $55,000 0.55 $100,000 Trout Canyon 134‐27‐601‐021 9/27/2018 $30,000 0.50 $60,000 Echo Canyon 134‐25‐410‐043 6/10/2019 $155,000 0.28 $553,571 Cathedral Rock 129‐36‐101‐004 9/28/2018 $146,350 0.28 $522,679

We note the sales range from as low as $22,936 per acre at Lovell Summit Road near the subject to the highest price per acre at Echo Canyon at $553,571 per acre. With the exception of the Lovell Summit Road parcels, all of the sales have superior access compared to the subject. The locational surroundings in Calico Basin, Echo Canyon, and Cathedral Rock have a superior location. We conclude the subject would have a per acre value (based on the allotment of lots at the subject being in the

Mount Potosi Canyon Sales Comparison Approach 56

range of a single acre.) above that of Trout Canyon, Lovell Summit Road, Mountain Springs and along Blue Diamond. The subject would have a lower value compared to Calico Basin, Echo Canyon, and Cathedral Rock. We estimate the subject would have a per acre value of $400,000 per acre if the hypothetical conditions herein are fulfilled. If we apply this to the tentative mapped lots for the subject with 234.11 acres we arrive at a value conclusion of $93,644,000 for the aggregate retail value. The aggregate retail value should be considerably above the present undeveloped land value and provides support for the subject’s land value conclusion. We remind the reader that the values considered herein are based on the hypothetical condition that the subject road improvements are fully in place to the perimeter of the property. This condition presumes approval of the roads to the subject lands by all necessary local, state, and federal authorities and are sufficient to serve the planned subject development.

Mount Potosi Canyon Reconciliation and Conclusion of Value 57

Reconciliation and Conclusion of Value As discussed previously, we use only the sales comparison approach in developing an opinion of value for the subject. The cost and income approaches are not applicable, and are not used.

Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, our value opinion follows:

Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value As Is Fee Simple September 30, 2019 $41,000,000

Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment‐specific assumption as of the effective data regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions as their use might have affected the assignment results. 1. The subject is approved to be developed with 104 residential lots and a 112‐Room health spa retreat and associated recreational facilities. 2. The subject site has 145 acre‐feet of water rights. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. We note their use might nave affected assignment results. 1. Access to the site is fully installed and completion of all the MOU (Memorandum of Understanding) requirements have been implemented.

The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from our estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, our opinions and forecasts are based partly on data obtained from interviews and third party sources, which are not always completely reliable. Although we are of the opinion that our findings are reasonable based on available evidence, we are not responsible for the effects of future occurrences that cannot be reasonably foreseen at this time.

Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Based on the concluded market value stated previously, it is our opinion that the probable exposure time is within 12 months.

Mount Potosi Canyon Reconciliation and Conclusion of Value 58

Marketing Period Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. We estimate the subject’s marketing period at within 12 months.

Mount Potosi Canyon Certification 59

Certification

We certify that, to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three‐year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. George L. Wara, MAI, made a personal inspection of the property that is the subject of this report. Charles E. Jack, IV, MAI, has personally inspected the subject. 12. No one provided significant real property appraisal assistance to the person(s) signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 14. As of the date of this report, George L. Wara, MAI and Charles E. Jack, IV, MAI, have completed the continuing education program for Designated Members of the Appraisal Institute.

Mount Potosi Canyon Certification 60

George L. Wara, MAI Charles E. Jack, IV, MAI Certified General Real Estate Appraiser Certified General Real Estate Appraiser Nevada Certificate # A.0206651‐CG Nevada Certificate # A.0000503‐CG

Mount Potosi Canyon Assumptions and Limiting Conditions 61

Assumptions and Limiting Conditions

This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report:

1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report:

1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal

Mount Potosi Canyon Assumptions and Limiting Conditions 62

covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third‐party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic

Mount Potosi Canyon Assumptions and Limiting Conditions 63

conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non‐ conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR ‐ Las Vegas, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non‐existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR ‐ Las Vegas is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR ‐ Las Vegas. In addition, it is expressly agreed that in any action

Mount Potosi Canyon Assumptions and Limiting Conditions 64

which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR ‐ Las Vegas is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer‐seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 28. The appraisal is also subject to the following:

Mount Potosi Canyon Assumptions and Limiting Conditions 65

Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment‐specific assumption as of the effective data regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions as their use might have affected the assignment results. 1. The subject is approved to be developed with 104 residential lots and a 112‐Room health spa retreat and associated recreational facilities. 2. The subject site has 145 acre‐feet of water rights. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. We note their use might nave affected assignment results. 1. Access to the site is fully installed and completion of all the MOU (Memorandum of Understanding) requirements have been implemented.

Mount Potosi Canyon Addenda

Addendum A Appraiser Qualifications

Mount Potosi Canyon

Integra Realty Resources Charles E. Jack, IV, MAI Las Vegas

Experience 8367 West Flamingo Road Suite 100 Experienced in the valuation of commercial and industrial properties and is highly proficient in Las Vegas, NV 89147 computer and networking applications for real estate valuations. Experience involves discounted cash flow analysis and setup of technology infrastructure. His experience includes T 702‐869‐0442 x4480 investment analyses and valuations of shopping centers, office buildings, warehouses, F 702‐869‐0955 apartments, master planned communities, residential subdivisions, and commercial tracts. Specialized experience includes ad valorem tax valuation, eminent domain appraisal, irr.com bankruptcy appraisal, deficiency appraisal, other various forms of litigation appraisal, hotel/casino land, undivided partial interest appraisals, water rights appraisals, estate appraisals, airspace appraisals, federal agency appraisals, and others.

Mr. Jack provides litigation support for condemnation, foreclosure, bankruptcy, and business disputes. Mr. Jack frequently prepares appraisals / reviews / rebuttals for Clients involved in eminent domain and other legal disputes. Experienced in Real Estate Damages cases and stages of assessment, repair, and ongoing impacts as well as the issues associated with cost, use, and risk in damages cases.

Mr. Jack has local retail, office, industrial and land appraisal experience in the Southern Nevada and Northern Arizona markets. Mr. Jack has appraised institutional and /or local profile buildings in the Las Vegas area and in the Northern Arizona market areas. Mr. Jack has developed a broad based clientele including government agencies, attorneys, master‐plan developers, accountants, and high net worth property owners. Mr. Jack has developed unique experience in master planned appraisals, BLM Land Exchanges and Auctions, UASFLA appraisals, and airspace appraisals. Mr. Jack has been intimately involved in a large number of the seminal inverse condemnation airspace cases in Nevada (Sisolak, Vacation Village) on behalf of the private landowners versus the Clark County Aviation Department.

Professional Activities & Affiliations Member: University of Wisconsin ‐ Madison Real Estate Alumni Association Member: Realtor Member of National Association of Realtors President: Las Vegas Chapter of Appraisal Institute, January 2000 ‐ December 2000 Chairman: Education Committee ‐ Nevada Chapter of the Appraisal Institute, January 2014 ‐ December 2018 Licenses Arizona, Certified General Real Estate Appraiser, 31148, Expires May 2021 Nevada, Certified General Real Estate Appraiser, A.0000503‐CG, Expires November 2019 Nevada, Broker/Salesman, 46976, Expires June 2020 California, Certified General Real Estate Appraiser, 3004877, Expires October 2019 Education Bachelor of Business Administration Degree, Majors: 1) Real Estate and Urban Land Economics, 2) Finance, Investments, and Banking, University of Wisconsin ‐ Madison, Wisconsin (1990)

[email protected] ‐ 702‐906‐0480

Integra Realty Resources Charles E. Jack, IV, MAI Las Vegas

Education (Cont'd) 8367 West Flamingo Road Suite 100 Currently certified by the Appraisal Institute’s voluntary program of continuing education for its Las Vegas, NV 89147 designated members.

T 702‐869‐0442 x4480 Qualified Before Courts & Administrative Bodies F 702‐869‐0955 Nevada State Board of Equalization & Clark County Board of Equalization U.S. Bankruptcy Court, Las Vegas and Reno irr.com U.S. District Court, Las Vegas Clark County District Court – Nevada Nye County District Court – Nevada Clark County Family Court – Las Vegas, Nevada

[email protected] ‐ 702‐906‐0480

Integra Realty Resources George L. Wara, MAI Las Vegas

Experience 8367 West Flamingo Road Suite 100 Mr. Wara is the Associate Director of Integra Realty Resources ‐ Las Vegas. Mr. Wara was born Las Vegas, NV 89147 and raised in Las Vegas before moving to Reno to attend college at the University of Nevada. Mr. Wara graduated with a Bachelor of Fine Arts with a major in English Literature in 2003. T 702‐869‐0442 x4482 F 702‐869‐0955 Mr. Wara is an MAI and Certified General Real Estate Appraiser licensed in the State of Nevada and the State of California. He is a member of the Las Vegas Chapter of the Appraisal Institute. irr.com Mr. Wara joined Integra in 2006 and since, has been active in the Las Vegas Paradise MSA and in northern Nevada, in the Reno/Sparks MSA, as well as in Carson City and Lake Tahoe.

Mr. Wara’s commercial experience includes vacant land, ground leases, multifamily, high rise condominiums, industrial, retail, office, and special‐purpose properties. These properties have been both existing and proposed.

Professional Activities & Affiliations Appraisal Institute, Member (MAI) Las Vegas Chapter Board of Directors: Las Vegas Chapter of the Appraisal Institute Licenses Nevada, Certified General Real Estate Appraiser, A.0206651‐CG, Expires November 2020 California, Certified General Real Estate Appraiser – 3004918, Expires November 2019 Education Bachelor of Fine Arts at the University of Nevada‐Reno; Major English/Literature

Successfully completed numerous real estate related Clinics, Conferences, Courses, and Seminars sponsored by the Appraisal Institute.

Advanced Concepts & Case Studies, Appraisal Institute Advanced Market Analysis and Highest & Best Use, Appraisal Institute Advanced Income Capitalization, Appraisal Institute Valuation of Solar Voltaic Systems, Appraisal Institute Residential Market Analysis and Highest & Best Use, Appraisal Institute Apartment Appraisal, Concepts & Application, Appraisal Institute Real Estate Finance & Statistics, Appraisal Institute General Appraiser Market Analysis and Highest & Best Use General Appraiser Sales Comparison Approach, Appraisal Institute General Appraiser Income Approach – Part 2, Appraisal Institute General Appraiser Income Approach – Part 1, Appraisal Institute General Appraiser Site Valuation & Cost Approach, Appraisal Institute

Alumnus ‐ Bishop Gorman High School ‐ Class of 1998 Alumnus ‐ University of Nevada – Class of 2003

[email protected] ‐ 702‐906‐0482

About IRR

Integra Realty Resources, Inc. (IRR) provides world‐class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean.

IRR offices are led by MAI‐designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions.

Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market.

Local Expertise...Nationally!

irr.com

Addenda

Addendum B Property Information

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Parcel ID 195-01-000-003 Tax Year 2020 District 100 Rate 2.5017

Situs Address: 11951 MT POTOSI CANYON RD CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-B NORTHEASTERN MILLSITESGEOID: PT SW4 SEC 01 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 2100 2005011903115 1/19/2005 4.8 Taxable Increase Pct. Improvements 30147 02022703291 2/27/2002 Tax Cap Limit 800.71 Total Assessed Value 32247 Amount Net Assessed Value 32247 Tax Cap 6.01 Exemption Value New Reduction 0 Construction 1-10 Single New Construction - Land Use Family 0 Residential Supp Value Cap Type OTHER Acreage 5.0000 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $806.72 Less Cap Reduction $6.01 Net Taxes $800.71

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due

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THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

PAYMENT HISTORY Last Payment Amount $802.30 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $802.30 Prior Calendar Year Payments $765.63 Current Calendar Year Payments $802.30

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Parcel ID 195-01-000-004 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-B POTOSI MILLSITESGEOID: PT SW4 SEC 01 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 2100 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 2100 22412200069 12/31/1985 Tax Cap Limit 39.29 Net Assessed Value 2100 Amount Exemption Value New Tax Cap 0 13.25 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 5.0000 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $52.54 Less Cap Reduction $13.25 Net Taxes $39.29

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due

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THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

PAYMENT HISTORY Last Payment Amount $40.88 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $40.88 Prior Calendar Year Payments $39.08 Current Calendar Year Payments $40.88

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Parcel ID 195-01-000-005 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-B NORTH END MILLSITES & PT NW4 SEC 12 23 57 & PT SW4 SEC 01 23 57GEOID: MOR SW4 SEC 01 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 2100 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 2100 22412200069 12/31/1985 Tax Cap Limit 39.29 Net Assessed Value 2100 Amount Exemption Value New Tax Cap 0 13.25 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 5.0000 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $52.54 Less Cap Reduction $13.25 Net Taxes $39.29

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due

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THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

PAYMENT HISTORY Last Payment Amount $40.88 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $40.88 Prior Calendar Year Payments $39.08 Current Calendar Year Payments $40.88

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Parcel ID 195-12-000-002 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-B CENTRAL MILLSITESGEOID: PT NW4 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 2092 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 2092 22412200069 12/31/1985 Tax Cap Limit 39.11 Net Assessed Value 2092 Amount Exemption Value New Tax Cap 0 13.23 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 4.9800 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $52.34 Less Cap Reduction $13.23 Net Taxes $39.11

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due

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THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

PAYMENT HISTORY Last Payment Amount $40.70 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $40.70 Prior Calendar Year Payments $38.91 Current Calendar Year Payments $40.70

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Parcel ID 195-12-000-003 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-B SHEBA MILLSITESGEOID: PT NW4 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 2096 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 2096 22412200069 12/31/1985 Tax Cap Limit 39.25 Net Assessed Value 2096 Amount Exemption Value New Tax Cap 0 13.19 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 4.9900 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $52.44 Less Cap Reduction $13.19 Net Taxes $39.25

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due

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THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

PAYMENT HISTORY Last Payment Amount $40.84 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $40.84 Prior Calendar Year Payments $39.04 Current Calendar Year Payments $40.84

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Parcel ID 195-12-000-004 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A NORTH ENDGEOID: PT NW4 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8648 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8648 22412200069 12/31/1985 Tax Cap Limit 161.77 Net Assessed Value 8648 Amount Exemption Value New Tax Cap 0 54.58 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.5900 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $216.35 Less Cap Reduction $54.58 Net Taxes $161.77

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

http://trweb.co.clark.nv.us/WEP_summary.asp?Parcel=195-12-000-004 10/30/2019 Ascend Web Inquiry Summary Page Page 2 of 2

PAYMENT HISTORY Last Payment Amount $163.36 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.36 Prior Calendar Year Payments $155.95 Current Calendar Year Payments $163.36

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Parcel ID 195-12-000-005 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A NORTHEASTERNGEOID: PT N2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8673 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8673 22412200069 12/31/1985 Tax Cap Limit 162.23 Net Assessed Value 8673 Amount Exemption Value New Tax Cap 0 54.74 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.6500 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $216.97 Less Cap Reduction $54.74 Net Taxes $162.23

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

http://trweb.co.clark.nv.us/WEP_summary.asp?Parcel=195-12-000-005 10/30/2019 Ascend Web Inquiry Summary Page Page 2 of 2

PAYMENT HISTORY Last Payment Amount $163.82 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.82 Prior Calendar Year Payments $156.39 Current Calendar Year Payments $163.82

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Parcel ID 195-12-000-006 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A BETAGEOID: PT NE4 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8673 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8673 22412200069 12/31/1985 Tax Cap Limit 162.23 Net Assessed Value 8673 Amount Exemption Value New Tax Cap 0 54.74 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.6500 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $216.97 Less Cap Reduction $54.74 Net Taxes $162.23

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.82 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.82 Prior Calendar Year Payments $156.39 Current Calendar Year Payments $163.82

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Parcel ID 195-12-000-007 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A WESTERNGEOID: PT W2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8677 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8677 22412200069 12/31/1985 Tax Cap Limit 162.30 Net Assessed Value 8677 Amount Exemption Value New Tax Cap 0 54.77 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.6600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $217.07 Less Cap Reduction $54.77 Net Taxes $162.30

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.89 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.89 Prior Calendar Year Payments $156.46 Current Calendar Year Payments $163.89

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Parcel ID 195-12-000-008 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A POTOSIGEOID: PT W2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 9979 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 9979 22412200069 12/31/1985 Tax Cap Limit 186.63 Net Assessed Value 9979 Amount Exemption Value New Tax Cap 0 63.01 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 23.7600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $249.64 Less Cap Reduction $63.01 Net Taxes $186.63

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $188.22 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $188.22 Prior Calendar Year Payments $179.67 Current Calendar Year Payments $188.22

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Parcel ID 195-12-000-009 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A CENTRALGEOID: PT SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8635 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8635 22412200069 12/31/1985 Tax Cap Limit 161.49 Net Assessed Value 8635 Amount Exemption Value New Tax Cap 0 54.53 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.5600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $216.02 Less Cap Reduction $54.53 Net Taxes $161.49

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.08 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.08 Prior Calendar Year Payments $155.68 Current Calendar Year Payments $163.08

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Parcel ID 195-12-000-010 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A MORGANGEOID: PT E2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8648 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8648 22412200069 12/31/1985 Tax Cap Limit 161.77 Net Assessed Value 8648 Amount Exemption Value New Tax Cap 0 54.58 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.5900 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $216.35 Less Cap Reduction $54.58 Net Taxes $161.77

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.36 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.36 Prior Calendar Year Payments $155.95 Current Calendar Year Payments $163.36

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Parcel ID 195-12-000-011 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A SHEBAGEOID: PT SW4 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8677 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8677 22412200069 12/31/1985 Tax Cap Limit 162.30 Net Assessed Value 8677 Amount Exemption Value New Tax Cap 0 54.77 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.6600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $217.07 Less Cap Reduction $54.77 Net Taxes $162.30

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.89 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.89 Prior Calendar Year Payments $156.46 Current Calendar Year Payments $163.89

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Parcel ID 195-12-000-012 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A RAEGEOID: PT S2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8677 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8677 22412200069 12/31/1985 Tax Cap Limit 162.30 Net Assessed Value 8677 Amount Exemption Value New Tax Cap 0 54.77 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.6600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE ST , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $217.07 Less Cap Reduction $54.77 Net Taxes $162.30

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $163.89 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $163.89 Prior Calendar Year Payments $156.46 Current Calendar Year Payments $163.89

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Parcel ID 195-12-000-013 Tax Year 2020 District 100 Rate 2.5017

Situs Address: UNASSIGNED SITUS CLARK COUNTY Legal Description: ASSESSOR DESCRIPTION: MINERAL SURVEY #4246-A OUTLOOKGEOID: PT S2 SEC 12 23 57

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 8551 0000224100069 12/31/1985 4.8 Taxable Increase Pct. Total Assessed Value 8551 22412200069 12/31/1985 Tax Cap Limit 159.91 Net Assessed Value 8551 Amount Exemption Value New Tax Cap 0 54.01 Construction Reduction New Construction - 0 0-00 Vacant - Supp Value Land Use Single Family Re Cap Type OTHER Acreage 20.3600 Exemption 0.00 Amount

Role Name Address Since To Owner POTOSI LTD 3432 COSTA VERDE , LAS VEGAS, NV 89146 UNITED STATES 8/14/2015 Current

Summary Item Amount Taxes as Assessed $213.92 Less Cap Reduction $54.01 Net Taxes $159.91

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 10/30/2019 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 10/30/2019

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 10/30/2019

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PAYMENT HISTORY Last Payment Amount $161.50 Last Payment Date 8/14/2019 Fiscal Tax Year Payments $161.50 Prior Calendar Year Payments $154.18 Current Calendar Year Payments $161.50

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Addendum C Comparable Data

Mount Potosi Canyon Land Sale Profile Sale No. 1

Location & Property Identification Property Name: Bonnie Springs Ranch Sub-Property Type: Residential Address: 16395 Bonnie Springs Rd. City/State/Zip: Las Vegas, NV 89161 County: Clark Submarket: West Market Orientation: Rural

IRR Event ID: 2281113

Usable/Gross Ratio: 1.00 Sale Information Shape: Rectangular Sale Price: $25,000,000 Topography: Level Effective Sale Price: $25,000,000 Vegetation: Minimal Sale Date: 04/02/2019 Corner Lot: No Sale Status: Closed Frontage Type: 2 way, 1 lane each way $/Acre(Gross): $391,481 Traffic Control at Entry: None $/Land SF(Gross): $8.99 Traffic Flow: Low $/Acre(Usable): $391,481 AccessibilityRating: Average $/Land SF(Usable): $8.99 Visibility Rating: Average Grantor/Seller: Bonnie Springs Family, LP Zoning Code: R-U Grantee/Buyer: BSR 6276, LLC Zoning Desc.: Rural Open Land Assemblage: No Flood Plain: No Portfolio Sale: No Flood Zone Designation: X Assets Sold: Real estate only Comm. Panel No.: 32003C2525F Property Rights: Fee Simple Date: 11/19/2011 % of Interest Conveyed: 100.00 Utilities: Electricity, Water Public, Financing: Cash to seller Telephone Source of Land Info.: Public Records Document Type: Bargain and Sale Deed Recording No.: 20190514:01672 Comments Verification Type: Secondary Verification Secondary Verific. Source: Assessor, CoStar, Deed, The property was sold by a family that had owned the News Article land for roughly 67 years. They operated a business on-site but decided to cash out. The buyer intends to map Improvement and Site Data out 20 residential lots that range from 2-3 acres a piece. They will then sell the lots to people who intend to build MSA: Las Vegas Paradise MSA their own homes. They estimate multimillion dollar Legal/Tax/Parcel ID: 174-02-000-002 valuation figures per home. There will also be a Acres(Usable/Gross): 63.86/63.86 commercial component to the development. They will Land-SF(Usable/Gross): 2,781,741/2,781,741 eventually build an event center, high end restaurant,

Bonnie Springs Ranch Land Sale Profile Sale No. 1

Comments (Cont'd) and bed & breakfast. No timeline or building specifications are available. They are still working on getting approvals for the residential development. No sale conditions impacted the price. No concessions or credits given to the buyer.

Bonnie Springs Ranch Land Sale Profile Sale No. 2

Location & Property Identification Property Name: 140 Acres of Vacant Land Sub-Property Type: Residential, Single Family Land Address: Gilespie St. & Shayna Ave. City/State/Zip: Henderson, NV 89044 County: Clark Submarket: Henderson/SE Market Orientation: Rural

IRR Event ID: 2268648

Acres(Usable/Gross): 140.00/140.00 Sale Information Land-SF(Usable/Gross): 6,098,400/6,098,400 Sale Price: $12,020,000 Usable/Gross Ratio: 1.00 Effective Sale Price: $12,020,000 AccessibilityRating: Below average Sale Date: 04/07/2017 Visibility Rating: Average Sale Status: Closed Zoning Code: No Zoning $/Acre(Gross): $85,857 Zoning Desc.: No Zoning Currently Source of Land Info.: Public Records $/Land SF(Gross): $1.97 $/Acre(Usable): $85,857 $/Land SF(Usable): $1.97 Comments Grantor/Seller: US Department of Interior This transaction represents the sale of 140-acres of raw Grantee/Buyer: West Henderson 140, LLC desert land near Henderson. This was a BLM auction sale; Assets Sold: Real estate only the auction closed in April, and the sale recorded & Property Rights: Fee Simple funded in October. There are currently no utilities to the % of Interest Conveyed: 100.00 site. Proposed use for the land is single-family residential Financing: Cash to seller - buyer development. Recorded documents and updated plat obtained financing maps for this sale were not yet available. There were no Document Type: Deed other reported conditions on this transaction. Recording No.: 20170407:01807 Verification Type: Secondary Verification Secondary Verific. Source: Assessor, CoStar, Deed

Improvement and Site Data MSA: Las Vegas Paradise MSA Legal/Tax/Parcel ID: 191-16-501-008, 191-16-601-006, 191-16-601-007, 191-16-201-008

140 Acres of Vacant Land Land Sale Profile Sale No. 3

Location & Property Identification Property Name: Blue Diamond Road (SR-159) at Hickey Drive Sub-Property Type: Other Address: Blue Diamond Rd. City/State/Zip: Unincorp. Clark County, NV 89161 County: Clark Submarket: West Market Orientation: Rural

IRR Event ID: 2142010

Sale Information Improvement and Site Data Sale Price: $6,000,000 Legal/Tax/Parcel ID: APN 175-15-101-003 Effective Sale Price: $6,000,000 Acres(Usable/Gross): 71.69/71.69 Sale Date: 08/16/2017 Land-SF(Usable/Gross): 3,122,816/3,122,816 Recording Date: 08/16/2017 Usable/Gross Ratio: 1.00 Sale Status: Closed Shape: Rectangular $/Acre(Gross): $83,694 Topography: Gently Sloping $/Land SF(Gross): $1.92 Zoning Code: R-E $/Acre(Usable): $83,694 Zoning Desc.: Rural Estates Residential $/Land SF(Usable): $1.92 Flood Plain: Yes Grantor/Seller: Blue Diamond Falls, LLC Flood Zone Designation: A Grantee/Buyer: LH Ventures, LLC Utilities: Electricity, Water Public, Assemblage: No Sewer, Gas, Telephone, Assets Sold: Real estate only CableTV Property Rights: Fee Simple Utilities Desc.: All public and private % of Interest Conveyed: 100.00 utilities are located within Financing: Cash to seller close proximity of this site. Source of Land Info.: Public Records Document Type: Bargain and Sale Deed Recording No.: 20170816:0001189 Comments Verification Type: Secondary Verification This transaction involved the sale of 72.69 gross acres of Sale Analysis vacant/unimproved land located within the Southwest Las Vegas sub-market area within the Red Rock Design Current Use at T.O.S.: Vacant/Unimproved Overlay District. The parcel consists of moderately rolling Proposed Use Change: Yes terrain that is located within a hillside and foothills Proposed Use Desc.: Low-Density Residential transition boundary overlay area and the terrain slopes Use downward in an overall northeast direction from the Blue

Blue Diamond Road (SR-159) at Hickey Drive Land Sale Profile Sale No. 3

Comments (Cont'd) Diamond Road location to the Upper Blue Diamond Wash. At the time of sale, the majority of this parcel was contained within an unmitigated FEMA Flood Zone "A". Also, the site is transected in an overall northwest-southeast alignment by a 100' foot wide electrical power easement owned by NV Energy that is improved with aerial 69 kV facilities suspended on wood power poles. There is also a very old 8" waterline that was originally constructed by the Union Pacific Railroad (UPRR) that follows this same general alignment across this parcel, portions of which are exposed and above ground. This property has been the subject of two previous residential real estate developers who planned on developing the site with various density single-family residential improvements, The last developer (Harmony Homes) purchased the property in 2010 and the most recent planning documents from 2015 show that Harmony Homes planned to develop the site with 116 residential housing units or a density of about 1.6 dwelling units per acre. This developer sold the property to American West Development, a prominent local single-family residential developer after substantial development planning related work had been completed. As of the creation of this sale record (10-21-2018), there was no development planning data within the Clark County records related to American West Development so as of this time it was unknown what their ultimate plan was for this site. The property sold for $6,000,000 in August of 2017 or the equivalent of $83,693.68 per gross acre or $1.92 per square foot of land area. *Please note that the Grant, Bargain and Sale Deed associated with this sale and transfer is recorded at $1,000,000. According to the listing, as part of the acquisition price, the purchaser retired a $5,000,000 seller debt so the final purchase price was $6,000,000.

Blue Diamond Road (SR-159) at Hickey Drive Land Sale Profile Sale No. 4

Location & Property Identification Property Name: Vacant Land Sub-Property Type: Commercial, Industrial Address: 5835 E. Ann Rd. City/State/Zip: North Las Vegas, NV 89115 County: Clark Submarket: Northeast Market Orientation: Industrial Park

IRR Event ID: 1430923

Zoning Desc.: General Industrial Sale Information Source of Land Info.: Public Records Sale Price: $6,840,460 Effective Sale Price: $6,840,460 Comments Sale Date: 04/26/2016 This is the sale of 59.61 acres located in North Las Vegas Sale Status: Closed near the Speedway, between N. Las Vegas Boulevard and $/Acre(Gross): $108,692 the I-15 Expressway. $/Land SF(Gross): $2.50 $/Acre(Usable): $114,754 $/Land SF(Usable): $2.63 Grantor/Seller: 2010-1 CRE NV Land LLC Grantee/Buyer: Prologis, L.P. Property Rights: Fee Simple Financing: Cash to seller Document Type: Bargain and Sale Deed Recording No.: 20160426:01986 Verification Type: Secondary Verification Secondary Verific. Source: Assessor, CoStar, Deed

Improvement and Site Data MSA: Las Vegas Paradise MSA Legal/Tax/Parcel ID: 123-33-501-004 Acres(Usable/Gross): 59.61/62.93 Land-SF(Usable/Gross): 2,596,611/2,741,417 Usable/Gross Ratio: 0.95 Shape: Rectangular Topography: Level Corner Lot: Yes Zoning Code: M-2

Vacant Land Addenda

Addendum D Engagement Letter

Mount Potosi Canyon