Introduction IV

04-535-23: 8. 1 Southwesterly 10 feet of Lot 24 and all of Lots 25 and 26 in Section 26, and NorthcascrIv 18 feet of Lot 27. Belmont Townsite ROS 4 288445 in Section 26. Township 9 North, Range 43 East MUM.

08-02112: Parcel IA of ROS ft 332S54 in Section 34, Township 3 North! Range 42 East, M.D.M.

10-394—03: Lot 23, 71 Acre Shoshone Estates in Section 29, Township 11 North, Range 43 East, MUM.

PURPOSE OF APPRAISAL The purpose of the appraisa] is to form opthions of the current market va]ues of the subject properties.

CLIENT FOR THE REPORT The client for the appraisal is County of Nye.

INTENDED USERS OF THE REPORT The intended users ol the report are Nye County Public Works and Robert Bottom.

INTENDED USE OF THE APPRAISAL The intended use of the appraisal is to establish the current market value of the subject properties to assist Nyc County and Robert Bottom in a property exchange needed to construct a new water system in Manhattan, Nevada.

EFFECTIVE DATE OF VALUE The effective date of value is May 31, 2011, which is the date the property was inspected and photographs were taken.

DATE OF PREPARATION OF THE APPRAISAL REPORT The date of the preparaUon oE this appraisal report is June 10, 2011. The comparable sales nd market data were verified prior to the date of this report.

USPAP COMPETENCY PROVISION This appraisal report is being prepared with the intention of complying with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) as provided by the Appraisal Foundation. We have the knowledge and the experience to complete this appraisal assignment. Matthew Lubawy, MM and Kendal Stewart have appraised other similar properties in Nevada, and we are qualified to appraise the subject properties. Please see our qualifications contained hi the addenda of this report for additional infonnation.

File #11-160B [U[BAWY & ASSOCI4T]65, INC. Introduction 11

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: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in United States dollars or in tenns of financial arrangements comparable thereto; and 5. 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: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994).

MARKET VALUE “AS IS” ON APPRAISAL DATE Market value “as is” on an appraisal date is defined as: “An opinion of the market value of a property and the condition observed upon inspection and as it physically and legally exists without hypothetical conditions, assumptions, or qualifications as of the date the appraisal is prepared”. Source: Federal NeWsier, Vol. 53, No.3, January 6, 1988, Rules and Regulations, I2CFR 571 .lb(3),

PROPERTY RIGHTS APPRAISED We have formed the opinion of the market value of the subject property in fee simple estate. Fee simple ownership is defined as follows: “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: The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago: Appraisal Institute, 2010) Page 78,

EXPOSURE TIME One of the implicit conditions of market value is that a reasonable time is allowed for exposure in the open market, This is always assumed to precede the effective date of the appraisal. Specifically, exposure time is defined as:

File #11-16013 IU]AWY 1 ASSOCIATES, INC. Introduction 12

“The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market.” Source: Uniform Standards of Professional Appraisal Practice, 2010/11 Edition, Appraisal Standards Board.

MARKETING PERIOD DEFINED Marketing time is defined as follows: The reasonabie marketing time is an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Source: The Unform Standards of Professional Appraisal Practice, 2010/11, Advisory Opinion 7.

CURRENT OWNERSHIP! OWNERSHIP HISTORY According to information from the Nyc County Recorder’s Office, the subject properties are under title of the Nyc County Treasurer. The properties were acquired by Nye County after defaults on property tax payments and the expiration of the legally allotted time to reclaim the property by paying back taxes and penalties. The County records do not show that any of the properties were sold at market in the past three years.

All but three of the thirteen subject properties are in Manhattan, Nevada, and eight of the ten Manhattan lots are single, .058 to .147-net-acre lots that are too small to qualify for a septic tank under State of Nevada requirements. They are also not adjacent to other Nyc County-owned lots that would provide an assured assemblage opportunity. The other two Manhattan lots have homes on them.

The properties in Belmont and Carvers also have homes on them, and the home in Carvers is in very poor condition, and needs to be removed and replaced with a new home. The home in Belmont is older in appearance, but still usable. The 1.92-acre vacant property in Tonopah is at the north end of the community, alongside US 95.

SCOPE OF APPRAISAL This is a Summary Appraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practice (USPAP). It presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraisers’ opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraisers’ files. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated. As part of this appraisal, the appraisers have made a number of independent investigations and analyses. The investigations undertaken and the major data sources used are discussed as follows:

File #11-1608 IU]AWY ASSOCIAT]ES, INC. Introduction 13

Area/City and Neighborhood Analysis Data pertaining to Nye County, Manhattan, Belmont, Carvers, and Tonopah was provided by internet publications, Nye County government departments, and Nevada newspapers. Data pertaining to the labor force and employment was supplied by the State of Nevada Employment Security Department; information pertaining to taxable sales was provided by the Nevada Department of Taxation; and data pertaining to Manhattan, Belmont, Carvers, and Tonopah development was provided by Nye County and Mr. Robert Bottom. Additional data was based upon a physical inspection of the area.

Site Description and Analysis On May 31, 2011, Kendal Stewart physically inspected the subject land, and the surrounding area. Photographs of the property were also taken as of that date. Information concerning utilities was collected by a physical inspection as well as by contacting the individual utility companies. Information pertaining to dimensions, shape, and site area was taken from the Nye County Assessor’s records and from data provided by Nye County Public Works. The description and analysis of the topography, drainage, soils conditions and surrounding land uses was based upon a physical inspection. It is imperative to note that the appraisers are not experts in the analysis of soils conditions or environmental hazards; therefore, any comment by the appraisers that might suggest the presence of hazardous substances or soils problems should not be taken as confirmaton of the presence of hazardous waste or questionable soils conditions. Such determination would require investigation by qualified professionals in the field of environmental assessment or soils testing. No responsibility is assumed for any environmental conditions or for any expertise or engineering knowledge required to discover them. The appraisers’ descriptions and resulting comments are the result of routine observations made during the appraisal process.

Applied Methods of Valuation The Sales Comparison Approach was used to value the subject properties. Please see the section entitled “Method of Valuation” contained later in the report for a full description of the Sales Comparison Approach. The cost and income capitalization approaches have not been used as these approaches are not typically used in the valuation of vacant land or older homes.

Market Data Collection and Verflcation Data pertaining to land sales was collected from sources including Nyc County public records, the Realtor’s Multiple Listing Service (MLS), and discussions with brokers and property owners.

Information on land sales, listings or offers was verified with the parties involved in the transactions including the grantor, grantee, broker or other knowledgeable parties, when possible. Verification of each sale is listed separately on each land sale abstract.

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SUMMARY OF AREA DATA Manhattan, Belmont, Carvers, and Tonopah are in Nyc County, Nevada which, as of July 2010, had a population of 45,459 and a county land size of 18,159 square miles. The government seat for Nyc County is in Tonopah, and Nye County is the third largest county (in land area) in the United States. The county’s earliest growth was associated with mining which pushed the population of Tonopah and Rhyolite to around 10,000 in each community. Tonopab now has a population of 2,488 and Rhyolite is a ghost town.

Manhattan and Belmont are 49 and 45 miles respectively northeast of Tonopah in mountain canyons in the Toquima Mountains in the Ilumbolt Toiyabe National Forest. The towns trace their origins to the 1860s when silver was discovered in the area, and they later grew when gold mining began. The communities grew to about 500 people in Manhattan and 2,000 in Belmont, but the precious metal mining ended in the 1940s. Today, Manhattan has 50 permanent residents and 25 part time residents along with a small motel, a historic wood construction church, a fire station, a post office, two bars, and homes. In its heyday, Manhattan had three banks, 75 frame buildings, and a Wells Fargo Office.

Belmont was the county seat of Nye County in 1867, and the community had a bank, churches, schools, two newspapers, a general store, a post office, and a number of saloons. A two-story brick courthouse was built in 1876, but its completion coincided with gold and silver ore playing out in the mines. By 1889, the remaining 150 residents were mostly county employees, and in 1905, Tonopah became the county seat.

The current appeal for the Manhattan and Belmont residents is the mountain canyon location at an elevation of 7,000 feet with pine trees covering the mountain slopes. Relics of mining operations are extensive and interesting in Manhattan and Belmont, and the towns have paved road access.

Carvers is 59 miles north of Tonopah along Nevada State Route 376, and started in the 1940s as a roadside stop halfway between Tonopah and Austin, Nevada. Cold mining at nearby Round Mountain has helped Carvers grow, and Carvers now has two gas stations, a small hotel, a store, a café, and an RV/mobile home park.

Tonopah is the county seat of Nyc County, and it is located at the US 95/US 6 junction. Tonopah had, as indicated, 2,488 residents as of July 2010, and the town covers 16.2 square miles. The community began as a silver and gold mining town, and was the location of the second-richest silver strike in Nevada history, but the mining ceased at the start of World War 11.

Tonopah today is supported by Nye County government operations, and by Tonopah Test Range employment, which is a Department of Defense/Department of Energy secretive site. The Test Range is known as “Area 52” and is 70 miles northwest of “Area 51”. Both areas have tested experimental and classified aircraft (such as stealth bombers), and the Tonopah Test Range is currently used for reliability testing of the nuclear weapons stockpile, and for testing nuclear weapon delivery systems. The Test Range airspace is used for military training, and it was the base of operations for development of the F-117 Nighthawk.

Tonopah has hillside housing development with businesses mainly alongside US 95. The historic Mizpah Hotel, built in 1908, is along US 95, and new owners are renovating the hotel for reopening in coming months. The town has many other historic buildings and is surrounded by low rock

File #11-760B ]LU3AWY ASSOCIATES, INC. Area/City Description and Analysis 16

mountains that have little vegetation. Tonopah is 210 miles northwest of Las Vegas, and 238 miles southeast of Rena

Pahrump, Nevada is 160 miles southeast of Tonopah, and Pahrump is the largest community in Nyc County. A description of Pahrump gives an idea of just how limited Nyc County is in population, and how little control there has been over development in the county. Historically, the Pahrump Valley was an oasis in the desert for aboriginal Paiute Indians because of its abundant water. The Indians grew con-i, squash, and melons, and in 2876 an early white settler established the Manse Ranch, which was followed in the 1930s by cotton growers. The road from Las Vegas to Pahrump was paved in 1954 (Las Vegas is 63 miles east of Pahrump).

The Pahrump area was primarily utilized for farming and ranching prior to the late 1960s, with some peripheral mining activity. In the 1970s, Las Vegas-based Preferred Equities Corporation purchased the 10,000 acre Pahrump Ranch. The corporation subsequently began subdividing the land and selling off parcels in the Calvada community. Originally lots were purchased for investment or speculation; however, an increasing number of people began moving to those lots as they reached retirement age. More recently, the high cost of property in the Las Vegas Valley combined with the low cost of Pahsump land and relatively unrestricted building environment resulted in an influx of people who are either retired or work in the Las Vegas Valley but live in Pahrump.

Pahrump is not incorporated, and until recently, the primary control and limitations to growth were subdivision CC&Rs, and limited utility line infrastructure. In 2005, newly enacted zoning requirements were adopted that coincide with the Pahrump Regional Planning District Master Plan.

As indicated, Pahrump grew with minimal zoning except for restrictive CC&Rs within planned developments. This allowed many commercial businesses to be placed on residential land throughout the valley. Additionally, until 2005, the Nyc County Commission master-zoning plan had only three zoning designations for Pahrump, Open Use (OU), Residential Districts, and a Highway Frontage District (HF). The majority of land within the Pahrump Valley was classified as QU property. This allowed for use permits to be submitted and approved for non-residential uses throughout the valley, but it also provided for some regulation of land uses. As mentioned, a new master plan has been adopted for Pahrump.

According to the Nevada State Demographer’s Office, the most recent population statistics, prepared for the Nevada Department of Taxation, revealed that the Pahrump population as of July 1,2010 reached 37,796 versus 7,425 in 1990.

Statistics show that as of July 1, 1996, Pahrump had 68% of the entire Nye County population, and as of July 1, 2000, this figure approached 73%. As of the Second Quarter 2010 approximately 83% of Nye County residents were located in Pahrump. The statistics also reveal that during the 2000/2009 timeframe, Nye County experienced a total growth of 41%, averaging 4.1% annually while Pahrump had a total growth of 57.8% in this timeframe, or an average of 5.8% annually. The statistics show that Pahrump is not only outpacing Nyc County in terms of growth, but it has been the driving force behind Nyc County’s growth as a whole.

The economic base of the Pahrump Valley consists of agriculture, government installations such as the Nevada Test Site and the Yucca Mountain project, tourism, gaming, mining, and manufacturing.

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Much of the population base is retired and on fixed income, while other residents live in Pahrump but commute to Las Vegas to work. The fastest growing categories of employment in Pahnzmp have been the service industry and retail trade.

Pahrump is, as indicated, the largest community in Nyc County, but it isn’t a big population center. Its history of uncontrolled development with little public utility infrastructure has created a community with challenges as it moves into the future. It is also a town that had hopes that development of the Yucca Mountain Nuclear Waste Repository to the north of Pahrump would provide jobs and an enhanced economic base, but the repository may never be built. That said, Pahrump will continue to have the best prospects for future growth in all of Nyc County.

File #11-1698 ]LIJ[BAWY G. ASSOCIATES INC. __

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MARKET AREA/NEIGHBORHOOD BOUNDARIES As defined by the Appraisal Institute in the 13th Edition of The Appraisal of Real Estate, a neighborhood is “A group of complimentary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.”

In a neighborhood, the operation of social, economic, government, and environmental forces generally influence property values in the same way. The neighborhood may consist of a mixture of uses (termed a neighborhood), or one of similar uses (termed a district).

A market area is the area in which the subject property competes for the attentions of buyers and sellers in the real estate market. A market area can encompass one or more neighborhoods and/or districts.

For this appraisal report, the market area/neighborhood is defined as that area which lies south of US Highway 95, north of Goldfield, Nevada, east of the Shoshone Mountains, and west of State Route 379. A map delineating the neighborhood is shown on the preceding page.

MARKET AREA/NEIGHBORHOOD DESCRIPTION The defined market area is in central Nevada, to the north of the Nevada Test Site and the Nellis Air Force Training Range. The Test Site and training range occupy a huge area (3 million acres) that is off-limits to the public. Public roads extend around, not through, the Test Site/Nellis Air Force Range, which makes accessing central Nevada circuitous, US 95 is west of the Test Site/Air Force range, and the region alongside US 95 is dry desert in character with few towns and a limited population. That tends to discourage travel to central Nevada just to visit, and US 95 travelers are usually driving between Las Vegas and Reno.

However, away from US 95 in central Nevada, there are picturesque mountain ranges with abundant wildlife, and the region has a long gold and silver mining history with ghost towns, mining relics and communities like Goldfield and Tonopah with historic hotels and old mining structures. Other towns like Manhattan and Belmont are very small but in attractive mountain canyons.

Tonopah is the largest community in the defined neighborhood/market area, and it is the county seat of 18,159 square mile Nye County. Tonopah has 2,488 residents as of July 2010, and the town relies on county jobs and on federal or federally-related jobs and activities associated with the Tonopah Test Range and the Nellis Air Force Training Range. Tonopah began in 1900 with the discovery of rich gold and silver ore, but the mining ended when World War II started.

A proposed Tonopah solar energy generation and storage plant has received a conditional promise from the Department of Energy for $737 million to build the project, which will create 600 jobs (50 permanent) in Nye County (Las Vegas Sun Newspaper, 05/20/2011). That project is fled to SolarReserve Company’s 110-megawatt Crescent Dunes solar energy project near Tonopah which will break ground this summer. The solar plant should benefit Tonopah over the years to come, and solar power projects are expected to be a significant part of rural Nevada’s future.

File #11-1608 LUBAWY 5 ASSOCIATIRS, INC. Market Area/Neighborhood Description and Analysis 20

Tonopah is ilke other communities in the defined market area in having a mining boom-and-bust history, with periods of barely hanging on. With that in mind, Tonopah’s main street (US 95) has turn-of-the-century buildings on either side of the street including the historic 5-story Mizpah F{ote[ built in 2907. There is also a library built in 1905, and 300 miles of mining tunnels underground. Tonopah is a basics kind of town with lust a few dentists, a medical clinic, a grocen’ store, and some clothing stores. There is a McDonalds restaurant, a Burger Kin& convenience store/ gas stations, and the Staion House hotel-casino, hut there are no Kmart-tvpe stores, and travel to Las Vegas or Reno (a minimum of 211 miles away) is needed for scia1tv shopping.

Tonopah grew to about 6,500 when the Stealth bomber was being created and tested at the NeWs Air Force Range and the Nevada Test site from 1980 to 1991, and the town also had non-mining- related booms in the 60s and ‘70s when Sandia Corp., a weapons contractor, had its headquarters in Tonopah, and during World War II when the B-24 bomber training center was in the area. Today, in addition to government jobs. L’S 95 traffic between Las Vegas and Reno has helped Tonopah sun. i ye.

Tonopah and other towns in the defined market area are sometimes referred to as museums, with buildings remaining in existcnce because they are historical relics. Better economic periods will occur in the future with projects like the solar energy plan, but the popuLation of the defined market area is not expected increase significantLy or keep increasing steadily into the future. Its too far from large population centers and major private industries to expect significant ongoing growth.

TONOPAK PROFILE A profile of Tonopah reflects the ]imited services and the outlying ru,-aJ character of the defined market area:

Industry Lodging Mining Best Western Economy Inn Retail Trade Clown Motel National 9 Inn Government Jim Butler Inn Silver Queen Tourism Tonopah Station/Ramada Tonopah Motel

Dining Shopping McDonalds A-Bar-L Western Store Burger King Scolari’s Food and Drug Ciscos Kraft and Gift Stores El Marques Hardware and Tool Stores Stage Stop Café High Desert Furniture Subway Super 7 Food Store Riccardo’s Antique arid MisceUaj,eous Stores

File #1 1-160B LUBAWY & ASSOCIATES, INC Market Area/Neighbothood Description and Analysis 21

Schools Casinos Tonopah Station Ramada Tonopah Elenientarv / Banc Club Casino Tonopah High School Combination Seven LLC- Mizpah

Recreation Churches Tonopah Mining Park First Baptist Cenfral Nevada Museum New hope Assembly of Gold Peavine Campground Seventh Day Adventists Wilderness Areas St. Marks Episcopal St. Patrick Catholic Presbyterian Church [iP Church

There are also some auto parts stores, towing companies, and mechanics, along with construction contractors, and gas stations/convenience stores. The lodging. restaurants, and convenience stores rely heavily on US 95 traffic, and on visitors for county and federal business.

Tonopah at 2,488 residents is the key population center in the defined market area/neighborhood, and Tonopah is a small town with limited services. Although it is expected to grow by up to 600 people (50 permanent) when the solar power generation and storage facilities are built, that won’t change Tonopah significantly.

LOCATION AIVD ACCESSIBILITY The subject market area/neighborhood is in central Nevada, and primary access to the area is via US 95. US 95 extends along the west side of Nevada from California, through Las Vegas, then on to Fallon (near Reno), and finally on in to Oregon. US 95 is 705 miles long in Nevada, and is an important highway for business and personal travel between Las Vegas and Reno. In the subject market area, US 95 is a paved highway with one travel lane in each direction, and the road is in good condition.

East/west travel through the market area is via US 6 extending east from Bishop, CaLifornia, through Tonopah, and on to Massachusetts. US 6 is the second longest highway in the United States. East/west access is alsu avaiLabLe via US 50, called the Loneliest Road in America for the section in Nevada. US 50 extends from San Francisco to Washington DC., and from there to Maryland.

Other than the three US Highways, which skirt the outside edges of the defined market area, the onLy paved road all the way through the market area is State Route 376. Other maintained gravel roads are available, hut they are long, and extend through virtually unpopulated valleys and remote mountain passes.

File #1i-ICOB LUBAWY & ASSOCIATES, INC. Market Area/Neighborhood Description and Analysis 22

ASSESSED VALUE AND PROPERTY TAXES Taxes for Nyc County (Tonopah and Manhattan) are at the higher end when compared to Clark County to the south. The tax rates for the 2010/ 11 tax year are $36399 (Tonopah), 53.1204 (Belmont and Carvers), and $34368 (Manhattan) per $100 of assessed value, while tax rates in Clark County range from a low of 52.4730 to a high of $34445. The 2010/11 tax year runs from July 1 to June30 and includes four installment due dates which are August 15th, October 3rd, January 2nd and March 6th.

UTILITIES/SERVICES Outside of Tonopah there are very limited public water and sewer services. For areas without public water and sewer service, private water wells and septic sewer systems are used. The utility services in Tonopah axe provided by the following entities:

TONOPAH UTILITY AGENCIES

UTILITY AGENCY Electricity Sierra Pacific Power Water Tonopah Public Utilities Sanitation Tonopah Public Utilities Telephone Frontier Natural Gas Liquid Petroleum Gas (LPG) Solid Waste Disposal Hoss Disposal (from Winnemucca)

Please note that the State of Nevada requires a minimum lot size of one-quarter of an acre, where public water service is available, to qualify for a septic tank sewer system. Individual lots in Manhattan are not large enough on their own to qualify for a septic tank. Three contiguous lots are needed for one-quarter acre, so individual lots that are between ownerships, or are isolated for some other reason, cannot be used as homesites.

MARKET AREA/NEIGHBORHOOD CONCLUSION The defined subject market area/neighborhood is in central Nevada, north of the Nevada Test Site and the Nellis Air Force training range, and the area is small town and rural in character. Tonopah is the largest community at 2,488 residents, and Tonopah like the few other small towns in the region has a mining history that mostly ended in the early 1940s. Recent periods of boom and bust have primarily been associated with U.S. weapons and secretive aircraft testing at the Nellis Air Force Range and the Tonopah Test Range on the Nevada Test Site.

Access to the market area/neighborhood is via perimeter U.S. highways, including US 95, Us 6, and US 50. The highways are long distance highways, and motorists are typically interested in getting from Las Vegas to Reno, or from California to Midwestern and eastern states. The US highways are not heavily trafficked as they pass by the subject market area, and while maintained, they consist of a single travel lane in each direction in the subject area.

Plans for solar energy generation and storage near Tonopah will bring in jobs, but not enough to significantly increase the population or the business base. There is also expected to be continuing

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employment at the Tonopah Test Range and the Nellis Air Force Range, and US 95 travelers will continue to support businesses in Tonopah. However, prospects for growth will likely remain limited.

The market area/neighborhood has desert valleys with desert rock mountains around places like Tonopah and Goldfield. It also has high pine covered mountain ranges such as the Shoshone, Toiyabe, Toquima, Monitor, and Hot Creek ranges that have high alpine environs, springs, creeks, the Reese River, and abundant wildlife. The mountain ranges are mostly part of the Humbolt Toiyabe National Forest where lands are public and not being sold by the US government. Even so, there are small mountain communities such as Manhattan and Belmont where retirees, workers in Tonopah, and part time summer residents enjoy the mountain atmosphere, recreation, and mining relics that are still standing.

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SITE DESCRIPTION AND ANALYSIS I

LOCATION The subject properties are located in Manhattan, Belmont, Carvers, and Tonopah, Nye County, Nevada. The properties in Manhattan are patented mining claim lands overlaid with subdivision

lots. Manhattan is in a mountain canyon at an elevation of 7,000 feet, with pine frees covering the mountain slopes, and with paved Nevada State Route 377 providing the community’s main street. There are 50 permanent residents and 25 part time residents along with a small 4-room motel, a historic wood construction church high on a hill, a volunteer fire station, two bars, a post office, and homes.

The property in Belmont is developed with a home in a pleasant mountain meadow surrounded by mountain slopes. Other homes, including mobile homes and some expensive custom homes are in the surrounding area, and Belmont has only part time residents. The town has well preserved older buildings such as a saloon and homes, along with an attractive bed and breakfast that was open for business a few years ago. It also has relics of old stone buildings, and a well preserved brick courthouse.

The property in Carvers is developed with a home near other scattered homes in what is known as Shoshone Estates. The property is in the Big Smoky Valley, 59 miles north of Tonopah, and is near some irrigated alfalfa fields.

The property is Tonopah is alongside US 95, at the north end of the community, and at the outskirts of development along US 95 in Tonopah. Homes and county court and government facilities are to the northwest along Radar Road, and the Tonopah town center and the bulk of the housing is to the southeast.

The subject properties are identified as consisting of Nye County Assessor’s Parcel Numbers 04-227- 07; 04-262-04, 06, 10; 04-276-03; 04-277-07; 04-278-01; 04—331-07; 04-332-03; 04-336-01; 04-535-23; 08- 021-12; and 20-394-03.

The parcel maps and aerial photographs presented on the following pages more completely illustrate the location of the subject properties.

DIMENSIONS, SHAPE, AREA, AND ROAD FRONTAGE The subject properties range in size from .058 to 1.92 acres, and the properties all have functional shapes. The Manhattan, Belmont, and Carvers properties all have frontage on residential streets, while the property in Tonopah has 402 feet of frontage on US 95.

TOPOGRAPHY AND DRAINAGE The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 have made the purchase of flood insurance mandatory for Federally-backed mortgages on structures located in special flood hazard areas.

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Federal Emergency Management Agency (FEMA) flood insurance rate maps, Community Panel Numbers 1750E, 2950E, 2975E, and 4955E, with an effective date of February 17, 2010 mostly not printed by FEMA. However, Kelly Harris at Nye County Planning indicated only the Belmont property is in an area where the flood zone is undetermined, and may exist. The other properties are not in flood zones, but Manhattan and Belmont are in mountain canyons where draws and ravines on the mountain slopes likely do experience drainage when snows melt, and during heavy rain storms. That said, Manhattan and Belmont homesites and other buildings are typically above the potential flow areas, and graded pads to avoid drainage problems do not appear to be difficult to develop. Manhattan and Belmont have been in existence for many decades, and buildings of significant age show wear and tear, but no visible signs of flood damage.

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NYE COUNTY ASSESSOR’S MAP - MANHATTAN APN 04-227-07

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NYE COUNTY ASSESSOR’S MAP - MANHATTAN APNs 04-262-04, 06, 10

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NYE COUNTY ASSESSOR’S MAP - MANHATTAN APNs 04-276-03; 277-07; 278-01

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NYE COUNTY ASSESSOR’S MAP - CARVERS APN 10-394-03

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AERIAL PHOTOGRAPH - MANHATTAN

File #fl-16OB LUBAWY ASSOCIATES, INC. Site Description and Analysis 34

AERIAL PHOTOGRAPH - BELMONT

File #11-1608 IW[]AWY f ASSOCIATES, INC. Site Description and Analysis 35

AERIAIL PHOTOGRAPH - TONOPAH

File #11-IÔOB LUBAWY 7 ASSOCIATES, INC. Site Description and Analysis 36

AERIAL PHOTOGRAPH - CARVERS

File #11-160B LU]BAWY ASSOCIATES, INC. Site Description and Analysis 37

SOILS CONDITION Neither a geotechnical report nor an environmental assessment report were made available to the appraisers, and no definitive opinion as to soils and subsoils conditions is given in this report. That said, the puipose of this appraisal is to provide current market values of the subject properties to assist in the exchange of properties so that a new water source can be provided to residents of Manhattan. The current water supply has an arsenic level, from naturally occurring arsenic in the soil that exceeds the federal standard. The federal government will begin fining Nye County, reportedly $3,000 per day, if the arsenic level is not reduced to the federal standard. The solution is a new water well that provides water that complies with the federal arsenic standard. The well water will be delivered to the existing Manhattan water system via an underground pipeline installed in the easement land proposed for exchange for the subject properties.

During the appraiser’s inspection and investigations, we found no other evidence of any hazardous waste and/or toxic materials on the properties. However, the appraisers axe not qualified to detect such materials, and any conclusive determination as to the presence of such substances would require investigation by a qualified expert in the field of environmental assessment. It is emphasized that Manhattan, Belmont, and Tonopah have mining histories, and mining can involve toxic waste and hazardous materials.

The presence of toxic waste or potentially hazardous materials could affect the value of the property. The appraisers’ value opinion is predicated on the assumption that, aside from resolution of the water arsenic problem in Manhattan, there is no such material on or in the properties that would cause a loss in value.

No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraisers’ descriptions and resulting comments are the result of routine observations made during the appraisal process.

STREET IMPROVEMENTS AND A CCESSIBFLITV Access to the subject properties in Manhattan begins at the US 95/ US 6 junction in Tonopah, heading east 5 miles on US 6 to the US 6/Nevada State Route 376 (SR 376) junction, then north on SR 376 thirteen miies to Nevada State Route 377 (SR 377). SR 377 is taken east 7 miles to Manhattan. US 95 and US 6 are major US highways, but are two lane highways (one lane in each direction) in the subject area. Both highways are fully paved and maintained, and US 95 connects Las Vegas with the Reno/Lake Tahoe region.

SR 376 is paved and extends from US 6 one hundred miles through Big Smoky Valley to US 50 near Austin, Nevada. SR 376 has been in place as far back as 1919, and besides linking Tonopah to Austin, SR 376 provides access to Manhattan, Hadley, Kingston, Round Mountain, and to Carvers, Nevada. Manhattan has 50 permit residents. Round Mountain Cold Corporation mines gold at Round Mountain, and there is a planned community of roughly 800 residents in Hadley across SR 376 from Round Mountain. The number of residents in Carvers is unknown, but there do not appear to be a lot of residents.

SR 377 is 7 miles long and connects the town of Manhattan to SR 376. SR 377 ends as paved Main Street in Manhattan, and has existed since 1936. A National Forest developed dirt road (014 Road)

File #11-160B ]LHBAWV & ASSOCIATES, INC. Site Description and Anal yis $8

extends from Manhattan’s main street northeasterLy through Low mountain passes to Belmont, Xe; ada.

Paved access is also available to Belmont and begins at the ES 95/US 6 junction in Tonopah, heading east on US 6 five miles to SR 376, then north on SR 376 thirteen miles to the SR 376/Monitor Valley Road junction, then northeast on Monitor Valley Road 27 miles to Belmont.

The property in Tonopah fronts a paved US 95.

UTILITIES Tonopab and Caners have public water and sewer service. Manhattan has a puhhc water system but no public sewer service, and Belmont has a community well but no public sewer system. Private water wells and septic sewer tanks are used where public services are not available. In Manhattan, utilities are provided as follows:

MANHATTAN UTILITIES UTILITY AGENCY Electricity NV Energy Water Nyc County Sanitation Septic Tanks Telephone Frontier SoLid Waste Disposal Smoky Valley Disposal

In Belmont, utilities are provided as follows:

BELMONT UTILITIES UTILITY AGENCY Electricity NV Energy Water Community Well Sanitation Septic Tanks TeLephone Frontier Solid Waste Disposal Smoky Valley Disposal

In Carvers, utilities are provided as follows:

CARVFRS UTILITIES

UTILITY AGENCY Electricity NV Energy Water Shoshone lNater Company Sanitation Shoshone Estates Telephone Frontier SoLid Waste Disposal Smoky Valley Disposal

File #11-ThUD ]LUBAWY cf ASSOCIATES, INC. Site Description and Analysis 39

In Tonopah, utilities are provided as follows:

TONOI’AH UTILITIES UTILITY AGENCY Electricity NV Energy Water Tonopah Public Utilities Sanitation Tonopah Public Utilities Telephone Frontier Natural Gas Liquid Petroleum Gas (LPG) Solid Waste Disposal Hoss Disposal (from Winnemucca)

NUISA NCES/IIAZARDS The subject properties are not known to be located in areas prone to earthquake activity or accumulations of toxic waste or large-scale storage. There are no known underground storage tanks in place on the properties, and there are no known underground tanks on surrounding properties. That said, the Manhattan land is in an area where naturally occurring arsenic in the soils causes the existing Manhattan public water supply to exceed the federal arsenic standard for potable water. Consequently, a new water supply is needed which requires a new water well, along with a new water tank and a new water line on easement land planned for exchange for the subject properties.

It is also noted that the subject properties are in areas with mining histories dating back to the 1860s. Mining can involve toxic materials detrimental to public health. However, there was no evidence determined by the appraiser of hazardous materials contamination on the subject properties.

Even so, it is emphasized that the appraisers are not qualified to detect hazardous waste and/or toxic materials, and it should be re-emphasized that the appraisers were not provided with an environmental site assessment or a geotechnical report for the subject properties. We have assumed adequate soils conditions, and we have assumed that there are no adverse environmental conditions affecting the subject properties other than a naturally occurring arsenic level in Manhattan that affects the existing water supply.

SURROUNDING LAND USES/LOCATION ADVANTAGES AND DISADVANTAGES The Manhattan and Belmont properties are in the Toquima Mountains, while the Carvers property is in the Big Smoky Valley between the Toiyabe and Toquima mountains. Tonopah is within 30 miles of these mountains, and the Monitor Mountains as well. There are five large mountain ranges in the subject region that extend north/south and include the Toiyabe, Toquima, Shoshone, Monitor, and Hot Creek ranges. Although the mountains rise from desert valleys, they are Alpine in character with nine peaks higher than 10,000 feet in elevation, including Mt. Jefferson at 11,941 feet. The mountains are covered in snow in the winter, and have springs, creeks, ponds, and the Reese River (Shoshone Range) that support abundant wildlife including, deer, elk, bighorri sheep, and pronghorn antelope.

File #11-16GB LJJBAWY 1 ASSOCIATIRS, INC. Site Description md Analysis 40

Between the mountain ranges are valleys including Hot Creek Valley to the east of the Hot Creek Mountain Range. The valley is 183 miles long by 13 to 50 miles in width. The primary vegetation in the valley is sagebrush and grasses, and there are no perennial streams in Hot Creek Valley.

Monitor VaLley is west of the Monitor Mountain Range, and a point in the valley is at the geographic center of Nevada. Monitor Valley is 70 miles long by up to 10 miles wide, aid is accessed via Monitor Valley Road. a maintained dirt road extending north from the old mining town of Belmont through the center of the valley to US 50. The valley is a sagebrush covered empty expanse with on];’ remains of the Potts Ranch buildings which are no longer used, hut where cattle grazing continues, and occasional wild horses can be seen. The valley has hot springs in a few locations, along with Indian pictographs at Toquima Cave, but no pennanent residents.

Big Smoky \‘alley is west of the Monitor Valley between the Toiyabe and Toquinia mountains. The valley is 100 miles long and has seven small communities including the largest, Hadlov, which is a planned community built across SR 376 from the Round Mountain Cold Mine Hadley has around 800 residents, an elementary school, a high school, a library, a swimming pooL, a 9-hole golf course, and a football field.

The Round Mountain GoLd Mine is an open pit mine which dates back to 1%6. B; 26, the mine had produced 59.5 million worth of gold ore at 2009 prices, and the mine continues to operate, with an estimated 1.8 million ounces of gold ore reserves and resources at the end of 2007

Big Smoky \‘allev was used as a pony express route in the 1860s, and it remains a valley with active farming, ranching. and mining The valley has paved SR 376 extending from US 6 north to US 50, and travelling SR 37b is a scenic drive.

The Reese River flows between the Toiyabe and Shoshone Mountains, and hegths on the slopes of Arc Dome. The river is fast-flowing at its origin, and flows north 181 miles to merge with the Humbolt River. Lush growth including aspen groves and cottonwood trees are alongside the river, and it is used for irrigation by scattered farms. Not much remains of the river by the time it reaches the Humbolt River.

While the valleys and mountain ranges near the subject properties offer impressive landscapes, and great areas to explore, major population bases are hundreds of miles away, and not many tourists visit the mountains and valleys. There are some hundreds of big game hunters in the area in the fal], and residents of the small towns, aLong with travelers between Tonopah and Austin cross the area, but there isn’t an expectation of significant growth in either population or travel in the region near the subject properties in coming tears.

EASEMENTS AND ENGRQACffME1VTS Preliminary Title Reports provided to the appraisers didn’t provide much information. ConsequentLy, any casements or encroachments that might affect the properties couLd not he determined with certainly. However, based upon our review, it does not appear that there are either easement or encroachments that would adversely affect the highest and best use of the properties.

File #ii-160B LTJBAWY 1 ASSOCIATES. INC. Site Description and Analysis 41

ZONING The subject properties do not have any zoning, which is characteristic of most of Nye County. Outside of Pahrump, Nyc County land use planning is virtually nonexistent, and because of the County’s very limited resources, there are no mechanisms in place to regulate land uses.

The Nyc County Comprehensive Plan states that there is no inventory of the amount of land for each land use category, and much of the land within Nyc County communities is subject to mixed use. In other words, mobile homes, trailer homes, site-built homes, commercial and industrial facilities, businesses, and even agricultural uses are often mixed together with seemingly incompatible uses adjacent to each other. Pahrump, in recent years, has instituted a land use plan, but driving along neighborhood streets in Pahrump and passing car repair shops, feed and tack stores, industrial storage yards, and mom and pop restaurants and businesses sandwiched between homes in common.

Although Nye County now has ordinances in place to regulate the subdivision of land as mandated by the State in NRS 278326, and has adopted the Uniform Building Code, the County has no mechanisms to enforce the code, and has no zoning ordinance. The Comprehensive Plan says these circumstances (i.e. no enforcement of code mechanisms and no zoning) allow people to build with very few impediments from local government, and the County’s position is that “it is important from an economic development standpoint to keep development requirements for new business and industry at a minimum.

Mr. Robert Bottom, owner of much of the vacant land in Manhattan, indicated that the Manhattan land subdivision occurred in the early 1900s, and was initiated by the mining companies. Use of the subdivided lots is subject to state requirements for size at a quarter of an acre to qualify for a septic system.

The Carvers property is in Shoshone Estates and is developed with an old home. Shoshone Estates has only scattered structures that do not have a lot of building quality and no subdivision landscaping or amenities. The vacant Shoshone Estates land appears usable for any purpose.

In summary, the subject properties have no zoning, but the properties would be allowed at a minimum, a residential use, and likely most other uses as well, assuming there was demand. Other uses likely would be viewed favorably by Nye County as well.

CONCLUSION The physical characteristics of the subject properties include their present use (if any), accessibility and road frontage, land contours and elevations, soils, views, land area, shape, availability of utilities, mineral deposits, water rights associated with the properties, easements, etc.

The subject properties located in the small communities of Manhattan and Belmont are in the Toquima Mountains, 49 and 45 miles respectively northeast of Tonopah in Nyc County, Nevada. The properties have no zoning, but they are in towns with streets along with community roads, homes, and historic wood constructed churches on hillsides.

File #11-1608 ]LI1]BAWY & ASSOCIATES, INC. Site Description andAnalysis 42

Belmont has a community well but no public sewer service. Manhattan has a public water system administered by Nyc County, and there are no private water wells in the town. Manhattan and Belmont have telephone and electrical power service, but neither town has a public sewer system, so septic tanks are used. The State of Nevada requires home and business sites to total a minimum of one quarter of an acre to qualify for a septic tank, which equates to three contiguous residential lots in Manhattan.

Manhattan and Belmont are in mountain canyons that have pine covered mountain slopes, and the locations are pleasant with cool spring, summer, and fall seasons, and snow in the winter. Access to Manhattan and Belmont is via paved roads extending off paved SR 376, and residents can access commercial and retail services 45 to 49 miles away in Tonopah. Also, the town of Hadley is 20 miles from Manhattan, and Hadley has a grocery store, several churches, schools, and recreational facilities.

Manhattan and Belmont would likely attract more residents and property buyers if they were close to a major population center, but at their rather remote location in central Nevada, they aren’t expected to grow significantly in coming years. For government workers in Tonopah, miners at Round Mountain, as well as summer vacationers, and retirees, Manhattan and Belmont are viable options because of their pleasant environments.

The property in Carvers is not far off paved SR 376, and Carvers has a store, two gas stations, a café, a small hotel, and an Ky/mobile home park. Carvers also has public water and sewer service, and it is close to the Round Mountain Cold Mine and Round Mountain’s 800 resident planned mining community called Hadley. Carvers is a roadside stop halfway between Ionopah and Austin, Nevada, and Carvers has grown over the yeaTs. However, it doesn’t have a large number of residents.

The property in Ionopah is alongside US 95 at the north end of the community, at the outside edge of development along US 95. Public utilities are available to the site, and the property has generally level topography. Homes and Nye County court and government facilities aren’t far away to the northwest along Radar Road, and Tonopahs town center is a short distance to the south/southeast. However, although Tonopah is the Nye County seat and the largest community in the region, it has just 2,488 residents. Tonopah also has limited prospects for much future growth.

File #11-1608 ]LHBAWY & ASSOC1AT]S, INC. Assessed Value and Property Taxes 43

ASSESSED VALUE AND PROPERTY TAXES I

CALCULATION OF TAXES Property taxes are based upon an appraisal of the property performed by the Nyc County Assessor’s Office, An appraisal is conducted every five years on properties located within Nyc County and the values are updated each year by an index computed by the State of Nevada Department of Taxation.

According to personnel at the Assessor’s Office, improved properties are appraised for taxable value based upon the cost approach. This approach to value is performed by estimating the replacement cost new of a property, less depreciation of 1.5% per year of effective age, up to a maximum of 75%. State Statute 361.227 indicates that the taxable value of the property must not exceed the current market value. Since the cost approach in some instances may provide an indication higher than current market value, the sales comparison approach and/or income capitalization approach may be used to establish the taxable value of the property. Property taxes are calculated by multiplying 35% of the taxable value by the tax rate.

TAX RATES The subject properties are located in three different tax districts in Nyc County, with a tax rate of $36399 in Tonopah, $34368 in Manhattan, and $31204 in both Belmont and Carvers. The tax rate is per $100 of assessed value. The fiscal year starts July 1st and ends on June 30th of every year. To indicate the trend in tax rates in the subject region of Nye County, the following is a summary of tax rates for previous years in Manhattan:

MANHATTAN HISTORIC TAX RATES

TAX YEAR TAX RATE 2010/11 $34368 2009/10 S3.3868 2008/09 53.3368 2007/08 $33368

The 2010/11 tax rate is higher than for the previous year, and tax rates are expected to increase at a moderate pace in coming years.

Please note that property tax increases were capped by Nevada Legislature Assembly Bill 489, which was passed on April 6, 2005. The tax increase caps are 3% per year for a primary residence and 8% per year on all other properties, based on taxes in effect as of the 2004/05 tax year. New construction has the tax cap applied starting in the 2006/ 07 tax year. Consequently, higher assessed values each year will not affect the property taxes nearly as much as the new assessed values might infer. The following is the property tax calculation for the subject property.

The following are the property tax calculations for the subject properties.

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SUBJECT ANNUAL PROPERTY TAXES

PROPERTY TAXES Manhattan (1.27 AC) Belmont (1 Lot) Assessed Values Land 56.148 SI331 Improvement 51,017 52,644 : Ioa1 Assessed Value 57,465 S3,975 Tax Rate (per Si flU) 5.034368 5.031204 Total 5257 5124

Less Cap Reduction - SO - SO Total Annual Taxes $257 5124

PROPERTY TAXES Tonopah (1 Lot) Carvers (1 Lot) Assessed Values Land 513.895 53,4% Improvement SO S3,35 Tot& Assessed \‘a]ue $13,895 $6,855 Ta Rate (per $100) $036399 5.031204 Iota] $506 $105

Less Cap Reduction - $0 - $0 Total Annual Taxes $506 $105

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HIGHEST AND BEST USE I

Highest and best use is defined as: Ihe reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results ii, the highest value The four criteria highest and best use must meet are legal permissibility, physical possibi]itv, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property-specific with respect to the user and timing of the use-that is adequately supported and resu]ts in the highest present value” Source: The Dictionar,, of Real Estate Appraisal. Fifth Edition. (Chicago: Appraisal Institute, 2010) Page 93.

The highest and best use of a property is an economic study focusing on the four criteria mentioned above. The determination of a property’s highest and best use is the basis that provides the valuaion framework upon which comparable market data is selected. Such data for improved properhes may include cost, income and expense data, and improved sales pertaining to the property’s concluded best use.

Highest and best use of the property as though vacant is considered separately from the highest and best use of the property as improved. The site is valued as though vacant and available for development to its highest and best use even if the property’s existing improvements do not represent the highest and best use of the site. Highest and best use of the land as though vacant indicates only how the land should be used if it were vacant. The following is all analysis of highest and best use of the land as though vacant. Each of the four criteria, legal]y permissible, physically possible, financially feasible, a],d maximally productive, have been considered separate]y as they relate to the subject.

Highest and best use of land or a site as though vacant is defined as: “Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.” Source: The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago: Appraisal Institute, 2010) Page 93.

HIGHEST AND BEST USE AS THOIJGII VACANT

Legally Pennicsthle The subject properties do not have any zoning, and according to the Nye County Planning Department, any land use could be considered for the proper5es. Pahrunp is the on]; area of Nyc County that has a land use master plan and a zoning ordinance, whi]e al] other areas outside of Pahrump have no zoning code and no land use master plans.

File #11-16DB LUBAWY & ASSOCIATFS. INC. Highest and Best Use 46

The Nyc County Comprehensive Plan for areas outside Pahrump indicates “There is no inventory of the amount of land in each land use category, because in the absence of mechanisms to regulate land use, much of the land withth communities is subject to mixed use. It is common to find residential, commercial, industrial, and even agricultural uses on adjacent properties and, at times, on the same parcel of property” (page 14). In other words, outside of Pahrump, land use options are open and are only controlled by stipulated uses that require a special or conditional use permit such as brothels, bars, many heavy industry uses, auto wrecking, cemeteries, dairies, gaming establishments, landfills, massage parlors, mining, rifle ranges, and similar uses (pages 16 and 17). However, special or conditional uses are not ruled out as potential uses, and site-built homes, churches, RV get-away sites, mobile homes, cabins, waterfowl/upland game bird hunting quarters, campgrounds, and recreational parks are not on the list of special or conditional uses.

An objective of the Nyc County Comprehensive Plan is to establish an open use zone outside the Pahrump planning area to permit any use allowed by the State Health Department (page 18). Regulation of land uses is left to town boards, and Nyc County will help unincorporated towns or other areas create a land use plan, zoning maps, and/or other growth management mechanisms if requested.

The Nye County Planning Staff indicated that as long as fire codes are adhered to and flood plain issues (if any) are handled properly, the subject properties have open use potential with homes, commercial use, or any other use being possible.

In summary, the subject properties are not restricted in legally permissible use potential, but because of several uses requiring conditional or special use permits in Nyc County, the legally permissible uses that are not speculative would realistically be homes, commercial or industrial business, or a recreational use.

Physically Possible Physical characteristics of the parcels that affect their possible use include, but are not limited to, their location, street frontage, size, shape, availability of utilities, easements and encroachments, soils and subsoils conditions, and topography.

The subject Manhattan lots are part of a mapped subdivision of land designed to create the town of Manhattan. The subdivision map overlays patented mining claims. In the early 1900s, the mining claims were owned by mining companies, but today, the underlying mining claim land not yet sold for home or other use is owned by Robert Bottom. The subject exchange lots were parceled out of the 51.282 acres of mining claim land years ago, and were privately owned until forfeited to Nyc County for unpaid property taxes. Some of the lots have rectangular shapes, and others have irregular but functional shapes.

The Manhattan properties are not in a FEMA-designated flood zone, and the properties are closely accessible from paved Nevada State Route 377 which serves as Manhattan’s main street. A public water system under Nyc County administration serves the Manhattan lots, but a public sewer system is not available. Instead, septic sewer tanks are used.

The Manhattan properties have level to sloping topography that if gradable and large enough, can be provided with a water line hookup, a septic tank and a frontage road at a cost of approximately

File #11-1608 LU[BAWY ?5 ASSOCIATES, INC. Highest and Best Use 47

$10,000 per lot. Mr. Bottom has finished a number of his lots over the past few years. The subject properties, like all properties in Manhattan, have no zoning and are allowed a range of development/usc options. However, given the locations of the subject properties in a mountain canyon with 50 permanent and 25 part time residents, residential use is probable. Residential uses could include a site built home, a manufactured home, a cabin, or seasonal motor home/RV use,

The subject property in Belmont has frontage on Main Street, which is paved, and it is located in the area of homes and historic relics and ruins in the town. The location is pleasant and the subject land is level and has a septic tank, mobile home hookups, and a mobile home installed in 1977. Belmont has part time residents, and its semi-ghost town status suggests that commercial facilities and services likely cannot be supported. However, there are homes in Belmont with some being relatively new and nicely built.

The subject property in Carvers is in the Shoshone Estates subdivision, a distance off of SR 376, and the site is developed with an old home in an area of scattered homes and mobile homes. Public water and sewer lines are to the site, and Carvers has gas, groceries and a café. SR 376 provides paved access to Carvers, and Carvers is in the Big Smoky Valley with views of the Toiyabe Mountains to the west, and the Toquima Mountains to the east.

The subject property in Tonopah has frontage along US 95, and public utilities are directly available to the site. The property is at the north end of Tonopah at the outskirts of development along US 95, but homes and Nyc County court and government facilities are not far away to the northwest. Tonopah has schools, commercial and grocery services, hotels and motels, restaurants, and Nye County and federally-related jobs.

The Belmont Carvers, and Tonopah properties are physically adequate for highest and best use development. In contrast most of the Manhattan subject properties are too small to qualify for a septic tank unless they can be assembled with adjacent lots, and the adjacent lots are owned by others, with no assurance they can be purchased. Some of the adjacent lots are already developed, and because of slopes and/or adjacency to planned streets, several of the subject lots are isolated and can’t easily be assembled with other developable lots. Without a septic tank, residential use of the land is unrealistic.

Financially Feasible All uses that are expected to produce a positive return are regarded as financially feasible. However, when analyzing the most economically feasible uses of a site, emphasis is placed on existing land use patterns within the neighborhood, with particular emphasis on land uses in the immediate area of the site, The most feasible uses would both complement and be compatible with existing and proposed development in the area.

Financial feasibility of a residential, commercial, or other use of the subject properties is directly affected by supply and demand factors. The subject properties are in Nyc County in an area of boom and bust growth, where there never has been a large population base. Nye County, like everywhere else, has weathered the recent economic and real estate market downturn, but in the subject region, jobs are federal, federally-related, and Nyc County government jobs, along with gold mining, US 95 service business jobs, and agricultural jobs that have been more stable than other types of jobs.

File #11-160B IUBAWY c?i ASSOCIAT]BS, INC. Highest and Best Use 48

Additionally, the subject area is rural in character and didn’t experience nearly as much real estate market volatility, either on the upside of the downside, when compared to larger population areas. Manhattan and Belmont are unique areas where buyers of land have been coming forward at a slow but steady pace, and that is expected to continue. The Carvers property offers a homesite near mining jobs at Round Mountain, and in a community with commercial services. The Tonopah property has frontage on US 95 in the biggest town in the region where all needed community services are available. Consequently, residential commercial or other use of the subject properties is concluded to be financially feasible.

Maximally Productive The final step in the Highest and Best Use Analysis is to choose the use or uses among the appropriate or feasible uses which would produce the highest present value of the land. We have concluded that the highest and best use of the subject properties in Manhattan, Belmont and Carvers would be residential use in accordance with their locations in residential areas in small communities. The Tonopah property has commercial highest and best use potential, but with no demand currently for commercial development, it likely could only generate a low end price.

Conclusion to the Highest and Best Use In conclusion, we estimate the highest and best use of the subject properties in Manhattan, Belmont, and Carvers to be residential. The property in Tonopah has a highest and best use of future commercial development when demand can be demonstrated. In the interim, the land value should reflect the limited size of the market and the uncertainty of when commercial development demand will surface. No other alternative uses would be expected to provide a higher return to the properties.

File #11-160B LU]BAWY ASSOCIATES, INC. Land Valuation - Manhattan 49

LAND VALUATION - MANhATTAN I

The Sales Comparison Approach is the most common technique for valuing land, It is used to form an opinion of market value of the subject site as though vacant. To apply this method, sales of parcels of land comparable to the subject property are gathered and analyzed. The sales prices are adjusted for dissimilarities identified between each of the comparables and the subject. Elements considered include property rights, legal encumbrances, financing terms, conditions of sale, market conditions, location, physical characteristics, available utilities, zoning, and the highest and best use. The adjusted prices are reduced to some common unit of comparison, such as price per square foot or price per acre. The appraisers analyze this information and derive a unit value applicable to the subject property. When applied to the subject land area, this results in an opinion of the market value of the land.

To form an opinion of the market value of the subject land, we have completed a survey of sales of comparable vacant sites. Emphasis was placed on researching sales of properties similar to the subject in physical characteristics, such as size, location, and availability of utilities. The sales were analyzed in terms of their price per property. After adjusting the unit prices to reflect the characteristics of the subject and the current market conditions, an opinion of the unit value was determined for the subject properties.

Please note that the subject properties are located in Manhattan, Belmont, Carvers, and Tonopah, and this first section of the property valuation deals with the properties in Manhattan. Eight of the ten properties in Manhattan are vacant land, while two of the properties have homes. The two properties with homes (APN5 04-224-07 and 04-332-03) will be valued first.

The following pages display the location, details, property characteristics, and a discussion of the comparability of each comparable sale followed by an adjustment grid.

File #11-160B ]LUAWY & ASSOCIATES, INC. Land Valuation - Manhattan 50

MAP OF EXCHANGE PROPERTIES IN MANHATTAN (PROPERTIES ARE CROSS HATCHED IN BLUE)

File #11-160B LIJIBAWY & ASSOCIAT]ES, NC. Land Valuation - Manhattan 51

LAND SALES SUMMARY

LOCATION SALE DATE NET AC PROPERTY AI’N NET SF PRICE 1. 11 S. Gold Street (Lots 5,6,7, Block 32) 09/14/10 .22 $89,500 No APN assigned, Manhattan 9,583 2. 245 Gold Street (Lots 5,6,7, Block 33) 09/26/10 .22 $28,500 No AFN assigned, Manhattan 9,583 3. 135. Gold Street (Lots 8,9,10, UJock 32) 10/04/10 .22 521,500 No APN assigned, Manhattan 9,583 4. lOS. Gold Street (Lots I thru 4, Block 29) 05/01/11 .29 $94,500 No APN assigned, Manhattan 12,778

Pile #11-1608 LULBAWY €1 ASSOCIATES, INC. Land Valuation - Manhzttan 52

LAND SALES LOCATION MAP

File #11-160B LUBAWY € ASSOCIATES. INC. Land ½zluatiun - MnhatLan 53

PROPERTY SALE 1

LOCATION: 11 South Cold Street (Lots 5, 6, 7, Block 32) Manhattan, Nyc County, Nevada.

ASSESSOR’S PARCEL NUMBER: Not yet assied

GRANTOR: Bottom Family Trust

GRANTEE: Not disclosed

DATE OF SALE: September 14, 2010

EXPOSURE TIME: Direct Sale

DOCUMENT NUMBER: Not vet recorded

SALE PRICE: S89,5 Lot With F{orne (S28,500 Lot)

TERMS OF SALE: 52JXX1 down, S87,5 seller carried note

CASH EQUIV. SALES PRICE: S€9500

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .22 Acre

LAND SIZE (SQUARE FEET): 9,583 Square Feet

HOME AND LOT PRICE: $89,500 ZONING: None

UTILITIES/OFFSITES: Public water, power, telephone

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with Robert Bottom, seller (775487-2360). COMMENTS: This site is located on the west side of Gold Street, South of SR 377 in Manhattan, Nevada. The sale included a 1,056 square Foot mobile home and a 2-car garage. The mobile home and garage added $61,000 to the $28,500 finished lot price to yield the overall $89,500 price. The lot finishing cost was $10,000.

File #11-IGOB LUBAWY Cd ASSOCIATES. INC. Land Valuation - Manhattan 54

PROPERTY SALE 2

LOCATION: 24 South Gold Street (Lots 5, 6, 7, Block 33) Manhattan, Nye County, Nevada.

ASSESSOR’S PARCEL NUMBER: Not yet assigned

GRANTOR: Bottom Family Trust

GRANTEE: Not disclosed

DATE OF SALE: September 26, 2020

EXPOSURE TIME: Direct Sale

DOCUMENT NUMBER: Not yet recorded

SALE PRICE: $28,500 Lot Only

TERMS OF SALE: $1,000 down, $27,500 seller carried note CASH EQUIV. SALES PRICE: S28,500

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .22 Acre

LAND SIZE (SQUARE FEET): 9,583 Square Feet

LOT PRICE: $28,500

ZONING: None

UTILITIES/OFFSITES: Public water, power, telephone

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with Robert Bottom, seller (775-487-2360). COMMENTS: This site is located on the east side of Gold Street, south of SR 377 in Manhattan, Nevada. The sale consisted of a finished lot.

File #11-160B LIJ[BAWY 1 ASSOCIATES, INC. Land Valuation - Manhattan 55

PROPERTY SALE 3

LOCATION: 13 South Gold Street (Lots 8, 9, 10, Block 32) Manhattan, Nyc County, Nevada.

ASSESSOR’S PARCEL NUMBER: Not yet assigned

GRANTOR: Bottom Family Trust

GRANTEE: Not disclosed

DATE OF SALE: October 4, 2010

EXPOSURE TIME: Direct Sale

DOCUMENT NUMBEIt Not yet recorded

SALE PRICE: $21,500 Land Only

TERMS OF SALE: 55,000 down; $16,500 seller carried note

CASH EQUIV. SALES PRICE: $21,500

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .22 Acre

LAND SIZE (SQUARE FEET): 9,583 Square Feet

LOT PRICE: $21,500 ZONING: None

UTILITIES/OFFSITES: No utilities

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with Robert Bottom, seller (775487-2360).

COMMENTS: This site has no utilities extended to the lot. The buyer worked for Mr. Bottom part time for one year. The property is at the northwest corner of Gold Street and Bell Avenue, in Manhattan, Nevada.

File #11-160B LUBAWY ASSOC1ATS, INC. Land Valuation - Manhattan 56

PROPERTY SALE 4

LOCATION: 10 South Gold Street (Lots 1 thu 4, Block 29) Manhattan, Nye County, Nevada

ASSESSOR’S PARCEL NUMBER: Not yet assigned

GRANTOR: Bottom Family Trust

GRANTEE: Not disclosed

DATE OF SALE: May 1,2011

EXPOSURE TIME: Direct Sale

DOCUMENT NUMBER: Not yet recorded

SALE PRICE: $94,500 Lot with Home (537,600 Lot)

TERMS OF SALE: $10,000 down; $84,500 seller carried not

CASH EQUIV. SALES PRICE: $94,500

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .29 Acre

LAND SIZE (SQUARE FEET): 12,778 Square Feet

HOME AND LOT PRICE: $94,500

ZONING: None

UTILITIES/OFFSITES: Public water, power, telephone

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with Robert Bottom, seller (775-487-2360). COMMENTS: This site is located at the southeast corner of Gold Street and Fifth Street in Manhattan, Nevada. The sale included a 1,056 square foot mobile home and a 2

File #11-ThOR IJIBAWY & ASSOCIATES, INC. Land Valuation - Manhattan 57

EXPLANATION OF ADJUSTMENTS As part of our analysis, we have made individual comparisons between each sale and the subject property. We have given consideration to reai property rights conveyed, financing, conditions of sale, time/market conditions, as well as value chaacteristics such as location, size, shape, utilities/offsites, topography, flood zone, economic characteristics, use/zoning and non-realty components. The following is an explanati on of the adjustments applied to the unit prices of the c o mp as ables.

Real Property Rightc Conveyed A transaction price is always predicated on the real property interest conveyed. Many types of real estate, particularly income producing property, are sold subject to existing leases. The revenue generating potential of a property is often fixed or limited by the terms of existing leases. In the valuation process, adjustments must be made to reflect the difference between properties leased at market rent or those leased at rent either below or above market levels. The length of the remaining lease term affects these adjustments.

The subject land has been analyzed based on fee simple ownership. All of the sales involved transfers of fee simple rights, and therefore, no adjustments were needed.

Financing The transaction price of one property may differ from that of an identical property due to different financing arrangements. For example, the purchaser of a comparable property may have assumed an existing mortgage at a favorable interest rate. In another case a developer or seller may have arranged a buy down, paying cash to the lender so that a mortgage with a below market interest rate could be offered. In both cases, the buyers may have paid higher prices for the properties to obtain below market financing.

For this analysis, the subject property has been valued based upon cash equivalent tenns. The comparable sales transferred on an “all cash” basis or with financing that did not affect the sales price. As a result, no adjustments for financing were needed for any of the coinparables.

Conditions of Sale When the conditions of sale are atypical, the result may be a sales price that is higher or lower than a normal market transaction. Examples of atypical transactions are those that occur between related parties or distress sales. Each comparable sale has been examined for atypical characteristics that, if discovered, would then have been confirmed with either the broker or a principal party to the transaction.

Sales 1,2, and 4 used in this analysis represent arms-length transactions with no adverse or unusual conditions affecting the sales. As a result, no adjustments are needed for these three sales.

Sale 3 was bought by an individua] who worked part time for the seller for a period of a year. The employee was allowed to build a shop on the land and use the land until he purchased the property. The result was a somewhat higher land price than a typical raw lot would sell for, and after the utilities/offsite/onsite/mobile home adjustment discussed later, a downward adjustment for

File #11-bOB Uh]AWY i21 ASSOCIAT]ES, INC. Land Valuation - Manhattan 58

conditions of sale for Sale 3 was determined by comparing Sale 3 to Sale 2 ($31,500 Sale 3 - $28,500 Sale 2 $3,000 downward adjustment for Sale 3).

Time/Market Conditions Comparable sales that occurred under different market conditions than those applicable to the subject on the effective date of the report require adjustment for any differences that affect their values. A common adjustment for market conditions is made for differences occurring since the date of sale. Since the time the comparable sales were transacted, general values may have increased or decreased and investor’s perceptions of the market conditions may have changed.

Although the adjustment for market conditions is often referred to as a “time” adjustment, time is not the cause of the adjustment. Market conditions which shift over time create the need for an adjustment, not time itself. If market conditions have not changed, no adjustment is required even though considerable time may have elapsed.

Changes in market conditions are usually measured as a percentage of previous prices. There are two traditional methods of estimating this percentage change due to market conditions. The first method is “paired analysis”. If the physical and economic characteristics of a property remain unchanged, analyzing two or more sales of the same property over a period of time will indicate the rate of price change. Sales and re-sales of the same property provide the best indication of the change in market conditions over time. If data on re-sales are unavailable, then the second method typically utilized is to survey knowledgeable market participants to estimate the potential impact of changing market conditions as a percentage change in a previous price.

Adjustments for time of sale are typically considered if there is reason to believe that the prices of real estate are increasing or decreasing over a particular time period. The comparable sales used in this analysis occurred from September 2010 to May 2011, and all of the sales are recent sales. The sales are reflective of current market conditions in Manhattan, Nevada, and no adjustments were needed.

Location An adjustment for location may be required when the locational characteristics of a comparable property are different from those of the subject property. Most comparable properties in the same neighborhood have similar locational characteristics, but variations may exist within a neighborhood. The specific location of a comparable property can influence its price. Furthermore, the access and visibility from a major arterial or location within a specific area can have a positive impact upon the property price. Arterial exposure is especially important for ease of locating and accessing the property by the public.

As shown on the map contained in this appraisal report, there were four sales abstracted from Manhattan, Nevada, and the sales are all similar to the subject property in location appeal. Therefore, no adjustments are necessary.

File #11-160B ]L11IAWY & ASSOCIAT]SS, INC. Land Valuation - Manhattan 59

Size Typically, the price per square foot of a smaller parcel will be higher than the sales price per square foot of a larger parcel. This assumption is based upon the principle of “economy of scale”, which is predicated upon the inverse relationship between size and price. Consequently, the smaller the size of a site, the higher the price per square foot. Adjustments for size are considered when there is a wide range in size between the comparable sales and the subject site.

The subject improved properties total .22 and .407 acres in lot size while the sales range from .22 to 29 acres. One of the subject properties is larger than the size range of the sales, but that issue will be addressed in the reconciliation of value at the end of this Manhattan property valuation section.

Shape The analysis of shape takes into consideration a particular site’s dimensions, street frontage, width, depth, and shape. It relates to the “principle of functional utility”. For example, an odd-shaped parcel may be appropriate for a dwelling; however, it is unacceptable for most types of commercial or industrial use. Also, odd shaped parcels may require additional development cost, especially for single-family residential subdivisions. Furthermore, odd-shaped parcels generally have less utility. The subject properties and the sales all have functional shapes, and no adjustments are needed.

Corner Influence Parcels with a corner influence typically sell at a higher price than parcels without a corner influence. This is especially true for commercial properties that require exposure which is increased by having frontage along two streets. Adjustments for corner influence are derived from the pairing of two properties which are similar, except one has a corner influence while the other does not.

The subject properties and the comparable sales are all properties in small Manhattan, Nevada where corner influence is not affecting the pricing of the land. Therefore, no adjustments were made.

(Jlilities/Offsite/Onsite Improvements The offsite adjustment takes into consideration certain infrastructure, such as utilities and services that are available to a particular site. Additionally, the quality, condition, and adequacy of the access to utility hookups can influence the sales price of a particular property.

The subject developed properties and Sales 1, 2, and 4 have finished lots, and no adjustments are needed for these three sales. Sale 3 was not a finished lot, and did not have a water line hookup and septic tank installed. Sale 2 is a finished lot, and Mr. Bottom indicated it costs $10,000 to finish a lot with grading, water line hookup, and a septic tank. Since the subject improved properties have finished lots, Sale 3 was adjusted upward by $10,000.

Mobile Homes Like the subject improved properties, Sales 1 and 4 included a finished lot and a mobile home. The mobile homes are personal property that are removable and not attached to a permanent foundation. Sales 2 and 3 didn’t have mobile homes when sold, and an upward adjustment is

File #11-160B LUBAWY & ASSOCIATES, INC. Land Valuation - Manhattan 60

needed. The adjustment was determined by comparing Sale 2 to Sale I ($89,500 Sale I - $28,500 Sale 2 = $61,000 upward adjustment for Sales 2 and 3).

Topography/Flood Zone This adjustment considers each comparable in relation to the subject concerning land contours, grades, natural drainage, soils conditions, view, and general physical usability. The subject properties and the sales are all in Manhattan, Nevada in similar topography, and not in a FEMA designated flood zone. Therefore, no adjustments are necessary.

Economic Characteristics Economic characteristics in relation to land include the ability to generate income such as leasing land for site storage or billboard income. All of the comparables ale similar in that no consideration need be given to economic characteristics, and no adjustments for economic characteristics were made.

Use/Zoning In the valuation of vacant land, zoning is one of the primary factors in determining the best use of the property, given that zoning can serve as the test of legal permissibility. As a result, zoning is typically a primary element in the selection of market data. When comparable properties with the same zoning as the subject are lacking or scarce, parcels with slightly different zoning that have a similar highest and best use as the subject may be used as comparables. However, these comparables must be adjusted for the difference in utility if the market indicates that it is appropriate.

The subject and the sales are in Manhattan, Nyc County, Nevada, and Manhattan land is all unzoned. The subject and the sales all have the same use potential, and no adjustments are needed.

Non-Realty Components Non-realty components of value include personal property, business concerns, or other items that do not constitute real property but may be included in the sales price of the comparables. None of the comparable prices include non-realty components. Therefore no adjustment is required.

The preceding adjustments have been applied to the sales, These adjustments are summarized as follows:

File #11-160B ]LHBAWV & ASSOCIAT]ES INC. Land Valuation - Manhattan 61

MANHATFAN SALES ADJUSTMENT GRID

Sale 1 Sale 2 Sale 3 Sale 4 Location 11 S. Gold St 24 S. Gold St 13 S. Gold St 10 S. Gold St Manhattan Manhattan Manhattan Manhattan Date ofSale 9/14/2010 9/26/2010 10/4/2010 5/1/2011 Sale Price $89,500 $28,500 $21,500 $94,500 Land Area (AC) 0.22 0.22 0.22 0.29

PROPERTY PRICE $89,500 $28,500 $21,500 $94,500 Reod Property Rights Co,iveyed SUBTOTAL $89,500 $28,500 $21,500 $94,500

Financing Tenns SO SUBTOTAL $89,500 $28,500 521,500 $94,500

Condition of Sak $0 $0 ($3000) K SUBTOTAL $89,500 $28,500 $18,500 $94,500

1ini c/Market Conditions SUBTOTAL $89,500 $28,500 $18,500 $94,500

Location $0 $0 $0 $0 Phjjsical Characteristics Size $0 $0 $0 $0 Shape $0 $0 $0 $0 Corner Influence $0 $0 $0 $0 Utihtie/OffsiteJOnsites Improvements $0 $0 $10,000 $0 Mobile Homes $0 $61,000 $61,000 $0 Topography/Flood zone $0 $0 $0 $0 Economic Characteristics $0 $0 $0 $0 Usc/Zoning $0 $0 $0 $0 Non-Realty Components $0 $0 $0 $0 Demolition of Improvements K NET ADJUSTMENTh $0 $61,000 $71,000 $0 ADJ. PRICE / AC $89,500 $89,500 $89,500 $94,500 Reconciliation After adjustments the comparables provide a value range from $89,500 to $94,500 per property. Sales 1, 2, and 3 at $89,500 each have the same size lot as subject property 04-224-07 at .22 net acre. However, subject Parcel 04-224-07 is mostly steep upward sloping mountain in topography with only a narrow area for the mobile home and parking. The mobile home is occupied, but it is old and worn out in appearance. With more usable topography and a newer mobile home, the property value would be correlated to $89,500. In its “as-is” condition, and after careful consideration, the value of 04-224-07 was correlated to $20,000. The concluded to value is S6,500 less than a finished lot price in Manhattan, and reflects the subject lot’s severe physical constraints and the fact that the mobile home has no realistic market value. Therefore, the opinion of the current market value of property 04-224-07 in fee simple ownership, as of May 31, 2011 is as follows:

SUMMARY OF MN 04-224-07 VALUATION

File #11-16013 ]LIIBAWY ‘ ASSOCIAtES, INC. Land Valuation - Manhattan 62

TWENTY THOUSAND DOLLARS ($20,000)

Subject property 04-332-03 at .407 net acres in size is larger than the largest sale (Sale 4) which totaLs .29 net acres and has an adjusted price of 594,500 per acre. However, subject property 04-332-03 is an oversized lot, ajid there is a cabin that encroaches partially on the site. The cabin is mostly on Robert Bottom’s land, and the water line and septic are also on his land. He c]aims ownership of the cabin, and Nye County does not dispute that claim. The cabin is old and used for storage. Parcel 04-332-03 isn’t large enough to divide into two .22 net acre lots, and it doesn’t have its own septic tank or fully extended water line. After consideration, the value of 04-332-03 was correlated to S30,000 which is less than the finished lot value of Sale 4 at S37,6, to reflect the fact that 04-332-03 doesn’t have a septic tank or a fully extended water line. In summary, the opinion of market value of property 04- 332-03 in fee simple ownership, as of May 31, 2011 is as follows:

SUMMARY OF APN Q4-3323 VALUATION THIRTY THOUSAND FIVE HUNDRED DOLLARS ($30,000)

OTHER PROPERTIES IN MANIlA ITAN Eight of the properties in Manhaftan are less than .22 net acre in size. Consequenily, they do not qualify for a septic tank under Nevada State guidelines, and there is no assuralice the lots can be assembled with adjacent properties which are privately owned with some already having homes. The properties that don’t qualify for a septic tank are not in demand and are considered nuisance lots. Nuisnance lots were indicated to the appraiser by Robert Boftom as selling for S],200 to $1,500 per lot. To support that assertion, the following sale was extracted from Nyc County records and verified with Mr. Bottom.

File #11-1608 LTJBAWV ASSOCIATSS, INC. Land Valuation - Manhattan 63

NUISANCE LOT

LOCATION: The north side of Main Street, east of Sixth Street, Manhattan, Nevada

ASSESSOR’S PARCEL NUMBER: 04-204-1.1

GRANTOR: Dennis Floto

GRANTEE: Boftom Family Trust

DATE OF SALE: September 7, 2009

EXPOSURE TIME: N/A

DOCUMENT NUMBER: 733268

SALE PRICE: $1,500 TERMS OF SALE: All cash

CASH EQUIV. SALES PRICE: $1,500 PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .06 Acre

LAND SIZE (SQUARE FEET): 2,400 Square Feet

LOT PRICE: $1,500

ZONING: None

UTILITIES/OFFSITES: None

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with Robert Bottom, buyer (775-487-2360). COMMENTS: This site is a single Manhattan lot that is too small under Nevada State guidelines for septic tank use. Mr. Bottom, the buyer, classified it as a nuisance lot.

File #11-1603 LUBAWY T ASSOCIAT]ES, INC. Laud Valuation - Manhattan 64

With nuisance lots like the above selling for $1,500 per lot the opinions of current market value for the eight subject Manhattan lots that are less than 22 net acre in size, in fee simple ownership, as of May 31, 2011, are as follows:

Identification Lot Size Opinion of Value 04-262-04 .073 $1,500 04-262-06 .073 $1,500 04-262-10 .058 $1,500 04-276-03 147 $1,500 04-277-07 .073 $1,500 04-278-01 .073 $1,500 04-331-07 .073 $1,500 04-336-01 .073 $1,500

File #1 1-16OB LLJ[BAWY ‘s1 ASSOCIATES, INC. Belmont Property Valuation 65

BELMONT PROPERTY VALUATION 1

This second valuation section is for the subject Belmont property (04-535-23). BeLmont is 12 miles northeast of Manhattan, in the same mountain range (the Toquima Mountains), and it has the same type of boom-and-bust mining history. Marthattan has permairnnt residents, a small motel, two open bars, and a post office which Belmont doesn’t have. However, Belmont has re]ahvely new site-buiit homes that are impressive, and one of the homeowners, Jim Marsh who is an auto dealership owner in Las Vegas, rebuilt a historic church moved from Belmont to Manhattan to reclaim some of Belmont’s history (Both churches look exactly the same).

Belmont also has a well preserved brick courthouse and relics of old stone buildings that are impressive. Both towns have old wood constructed buildings, including an old bar and several other buildings in Belmont. Oz Wichman with Nve County Public Works characterized the Belmont properties as being somewhat more valuable than Manhattan properties, and Bud Perchetti, a, owner of four Belmont properties, agreed with that conclusion.

The only relatively recent property sate found in Belmont was .49 acre of vacant land that sold in June 2CK. The lot is across Main Street from the subject Belmont property, and details of the sale are as follows:

File #1i-Y6OB LUBAWY e ASSOCIATES. INC. Belmont Property Valuation 66

BELMONT SALE

LOCATION: West side of Main Street, south of Leon Street, Belmont, Nevada

ASSESSOR’S PARCEL NUMBERS: 04-534-01 and 05 GRANTOR: Michael I. and Juanita Robb GRAXFEE: James R. Marsh

DATE OF SALE: june 5, 2J8

EXPOSURE TIME: N/A

DOCUMENT NUMBER: 709980

SALE PRICE: S30,000

TERMS OF SALE: All cash

CASH EQUIV. SALES PRICE: S30,000

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .49 Acre

LAND SIZE (SQUARE FEET): 21,344 Square Feet

LOT PRICE: 53(3,000

ZONING: None

UTILITIES/OFFSITES: Community well, power, telephone

FLOOD ZONE: Unkrn,wn

EASEMENTS: None

VERIFICATION: Verified with public records, and to the extent that a sale occurred, with Juanita Robb, seller (775-482 6079).

COMMENTS: This property is on the main street through Belmont, and is just southwest across Main Street from the subject Belmont property.

File #1i-160B LUBAWY & ASSOCIATES, INC. Belmont Property Valuation 67

The Belmont sale was added to the Manhattan sales adjustment grid as Sale 5, and adjusted downward for market conditions since the Belmont sale occurred a few months before primary economic and financing problems began in late 2008. The adjustment was determined by comparing

Sales to Sale 2 ($30,000 Sale 5- $28,500 Sale 2 = $1,500 downward adjustment for Sale 5).

The subject Belmont property has a 1977 model mobile home and an attached shed that look their age, but the mobile home may have some remaining market value. After consideration, $2,500 was added to the three vacant lot sales (Sales 2, 3, and 5) to reflect the remaining market value of the mobile home on the Belmont property.

After the above adjustment, Sales 1 and 4, which have newer, better quality mobile homes were adjusted downward by comparing Sale 4 to Sale 5 [($94,500 Sale 4 - $31,000 Sale 5) + $94,500 67% downward adjustment for Sales I and 4),

The adjustments were applied to the sales, and are summarized on the adjustment grid as follows:

BELMONT PROPERTY ADJUSTMENT GRID

Sale I Sale 2 Sale 3 Sale 4 SaleS Location 11 5. Gold St 24 S. Gold St 13 5. Gold St 10 S. Gold St Math Street Manhattan Manhattan Manhattan Manhaftan Belmont Date of sale 9/14/2010 9/26/2010 10/4/2010 5/1/2011 6/5/2008 Sale Price $89,500 $28,500 $21,500 $94,500 $30,000 Land Area (Ac) 0.22 0.22 0.22 0.29 0-49

PROPER’FY PRICE $89,500 $28,500 $21,500 $94,500 $30,000 Real Property Rihts Conveyed $0 $0 $0 SUBTOTAL $89,500 $28,500 $21,500 $94,500 $30,000

Hna,icing 7rins SLTBTOTAL $89,500 $28,500 $21,500 $94,500 $30,000

Condilion of Sale ($3.000) SUBTOTAL $89)500 528,500 $18,500 $94,500 $30,000

Tt,ne/Market Condition5 $9 $0 ($1,500i SUBTOTAL $89,500 $28,500 $Th,500 $94,500 $28,500

Location $0 $0 $0 $0 $0 Physical characteristics Size $0 $0 $0 $0 $0 Shape $0 $0 $0 $0 $0 Conic Influence $0 $0 $0 $0 $0 Utilities,Vffiit/Onsites Improvements $0 $0 $10)000 $0 $0 Mobiie Homes ($59,965) $2,500 $2,500 ($63,315) $2,500 Topography/Flood zone $0 $0 $0 $0 SO Economic Characteristics $0 $0 SO $0 SO Use/Zoning $0 $0 $0 $0 $0 Non-Realty Components SO $0 $0 $0 $0 Demolition ofImprovements NET ADJUS’l’MENlS $59,965) $2,500 $12,500 ($63,315) $2,500 AD). PRICE / AC $29,535 $31,000 $31,000 $31,185 $31,000

File #11-160B ]LU]BAWY ASSOCIAT]SS, INC. Belmont Property Valuation 68

After adjustments, the comparabies provide a value range from $29,835 to 531,185. The range is tight, and after review, the opinion of the current market value of the Belmont property in fee simple ownership, as of May 31,2011 is as follows:

SUMMARY Of AIR 04-535-23 VALUATION THIRTY THOUSAND DOLLARS ($30,000)

File #11-160B ]LUBAWY & ASSOCIAT]ES, INC. Carvers Property Valuation 69

CARVERS PROPERTY VALUATION I

This third valuation section is for the subject Carvers property (10-394-03), Carvers is in the Big Smoky Valley 59 miles north of Tonopah. Carvers is not a mountain canyon location like Manhattan and Belmont and there are no interesting old mining relics as is the case ir Manhattan and Belmont. No recent sales were found for Carvers properties, but classified advertisements offering two lots at Shoshone Estates, where the subject Carvers property is located, were found. Details of the offerings are as follows:

File #11-160B LUBAWY ASSOCIATES, INC. Carvers Property Valuation 70

PROPERTY LISTING #1

LOCATION: 110 West Pablo Road, Shoshone Estates, Carvers, Nevada

ASSESSOR’S PARCEL NUMBER: ]0-391-1O

GRANTOR: Karl and Alice Berg

GRANTEE: Listing

DATE OF SALE: Listing

EXPOSURE TIME: Listing

DOCUMENT NUMBER Listing

ASKING PRICE: 528,003

TERMS OF SALE: All cash

CASH EQUIV. SALES PRLCE: S28,&X

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): 1.10 Acre

LAND SIZE (SQUARE FEED: 47,916 Square Feet

LOT PRICE: $28,000

ZONING: None

UTILITIES/OFESITES: All are in

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with seller’s representative (775 -377-2288).

COMMENTS: This site is a good clean Lot with trees. The property has a storage shed and all utilities are to the property.

File #11-1 bOB ELIBAWY & ‘SSOCIATES, INC. Can,crs Property ValuaEion 71

PROPERTY LISTING #2

LOCATION: 30 South Mariposa Drive, Shoshone Estates, Carvers, Nevada

ASSESSOR’S PARCEL NUMBER: 10-392-25

GRANTOR: CMH Homes, Inc.

GRANTEE: Listing

DATE OF SALE: Listing

EXPOSURE TIME: Listing

DOCUMENT NUMBEIt Listing

ASKING PRICE: S18,000

TERMS OF SALE All cash

CASH EQUIV. SALES PRLCE: S 18,000

PROP. RIGHTS CONVEYED: Fee Simple

LAND SIZE (NET ACRES): .37 Acre

LAND SIZE (SQUARE FEET): 16,117 Square Feet

LOT PRICE: $28,000

ZONING: None

UTILITIES/OFFSITES: All are in

FLOOD ZONE: No

EASEMENTS: None

VERIFICATION: Verified with seller’s representative (775-377-2288).

COMMENTS: This site is recently cleared lot, and all utilities are to the property.

File #11-7508 LUBAWY & ASSOCIATES. INC. Carvers Property Valuation 72

The Carvers listings were added to the Manhattan sates adjustment grid as Listings I and 2. Listings commonly sell for less than their asking prices after negotiation between buyers and sellers, and this has especially been the case since the economic and financing problems began in late 2008. After consideration, a downward adjustment of 10% was applied to the two listings to reflect the expected asking price adjustment during negotiations.

The subject Carvers lot totals .71 net acre while Carvers Listings 1 and 2 total 1.10 and .37 acres respectively. The subject falls between the two listings, and therefore, Listing I was adjusted downward by 54,500 while Listing 2 was adjusted upward by 54,500.

The four sales are in Manhattan in a getaway retreat environment in a mountain community while the Carvers properties are in Big Smoky Valley which doesn’t have the appeal of Manhattan. After the size adjustment, a downward adjustment for location for the the four sales was determined by

comparing Listing I to Sale 2 [($28,500 Sale 2 - $20,700 Listing 1) + $28,500 = 27% downward adjustment for Sales I through 4].

The subject property has an old home built in 1941 that has no market value, and the home will be discussed later. Sales I and 4 have newer mobile homes, and a downward adjustment is needed for

these two sales. The adjustment was determined by comparing Sale I to Sale 2 [($65,335 Sale I - $20,805 Sale 2) + $65,335 = 68% downward adjustment for Sales 1 and 4].

The subject Carvers property has an old home on it totaling 1,512 square feet, and built in 1941. The home is in bad condition and has no value, and needs to be demolished. Typical building demolition and removal costs are $5 per square foot of building equating to $7,560 for the Carvers property. However, the building is of simple wood construction with a simple rectangular shape, and much of the builder’s interior is already gone. A demolition cost of $5,000 is concluded to be more appropriate, and the $5,000 was applied as a downward adjustment to the comparables.

The adjustments were applied to the sales and listings, and are summarized on the adjustment grid as follows:

File #32-3608 flh]AWY (d ASSOCIAT]ES, INC. Carvers Property Va? untion 73

CARVERS PROPERTY ADJUSTMENT GRID

Sale I SaEe 2 Sale 3 Sale 4 Listing 1 Listing 2 Location 11 S. (ld St 24 S. Gold St 13 S. Gold St 10 S. Gold St 110 W Pablo Rd 30 S Mariposa Manhaltan Manhattan Manhattan Manhattan Carvers Carvers Date of Sale 9/14/2010 9/26/2010 10/4/2010 5/1/2011 Listing Listing Sale Price $89,500 $28,500 $21,500 $94,500 $28,000 $18,000 Land Area (AC) 0.22 0.22 0.22 0.29 1.10 0.37

PROPERlY PRICE $89500 $2,500 $21,500 $94,500 $18,000 $18,000 Real Properly Rights Conveyed $2 $2 $2 $2 $2 SUBTOTAL $89500 $28,500 $21,500 $94,500 $28000 $18,000

Finxincingrenns $2 $2 $2 $2 SUBTOTAL $89,500 $28,500 $21,500 $94,500 $28,000 $18,000

Conditwn of Sale $0 $2 ($3 000 $2 ($2,800) (SI 800 SUBTOTAL $89,500 $28,500 $18,500 594,500 525,200 $16,200

Thne/Market Conditions $2 $2 $2 $2 $2 $2 SUUTOTAL $89,500 $28,500 $18,500 $94,500 $25,200 $16,200

Loadion (524,165) ($7695) ($4,995) ($25,515) $0 $0 Physical Charackris&cs Size $0 $0 $0 $0 ($4,500) $4,500 Shape $0 $0 $0 $0 $0 $0 Con,,,’ Influence $0 $0 $0 $0 SO $0 UtilitwsA)JfritqU nstes Improvements $0 $0 $10,000 $0 $0 SO Mobile Homes ($44,428) $0 $0 ($46,910) $0 $0 Topography/Flood zone $0 $0 $0 $0 $0 $0 fleorzon,ie Characteristics SO $0 $0 $0 $0 $0 LIse,½,ning $0 $0 $0 $0 $0 $0 Non-Realty Compo’wnls $0 $0 $0 $0 $0 $0 Demoittinn of bnproventents ($5,000) (55.000) (55 000 (55 000) ($5,000) (55,0001 NET ADJUSTMEN1S ($73,593) ($12,695) $5 ($77,425) ($9,500) ($500) AIJJ. PRICE / AC $15,907 $15,805 $19,505 $17,075 $15,700 515,700

After adjustments, the comparables provide a value range from S15,700 to $18,505 with five of the six comparables in the range from $15,700 to $17,075. Giving greatest weight to the tightest portion of the range, the opinion of the Current market value of the Carvers property, in fee simple estate, as of May 31, 2011 is correlated to:

SUMMARY OF APN 10-394-03 VALUATION SEVENTEEN THOUSAND DOLLARS ($17,000)

File #11-160B ]LU]AWY ASSOCIATES, INC. Tonopah Property Valuation 74

TONOPAH PROPERTY VALUATION

This final section of the valuation deals with the property in Tonopah. The Ionopah property is at the outskirts of current development along US 95 in Tonopah, in an area where most of the US 95 frontage is vacant land. Tonopah has only 2,488 residents, and the community’s basic commercial demand is already met with existing facilities and businesses.

Available land along US 95 has not been generating much buyer interest and local real estate brokers knew of no US 95 sales that could qualify as comparables to value the subject property. The subject was offered for tax sale by the Nye County Treasurer’s Office in May 2009 for $95,285, but no buyers came forward. In May 2010, the property was offered at $100,617 with no bidders, and would have been offered at $51,S61 (Penalties and interest were left off this price.) if the Nye County Public Works Office had not taken it off the May auction list.

The comparable sales selected for the Tonopah property valuation are as follows:

LAND SALES SUMMARY

PROPERTY DATA 1. Location: SEc of Glenda Street and Bryan Avenue Sale Date: March 26, 2010 APN: 008-161-25 Grantor: Joan V. Clark Sale Price: $25,000 Document #: 744231 Grantee: James R. & Natasha A. Wickcndcn Area: 0.39 Acres (16,938 SF) Zoning: Land use 120-Single Family use, Nyc $/Sq. Ft.: $148 County Verification: Verified with Nyc County Public Records Comments: This property is located within the town limits of Tonopah, Nevada. This was a grant, bargain, sale deed in which 0.39 net acres of land sold. This property is not located along US Highway 95 (Main Street), This is located within a residential area. 2. Location: NWc of Second Street and Cedar Street Sale Date: April 27, 2010 APN: 018-268-01 & 05 Grantor: Rutan Family Exemption Trust Sale Price: $32,000 Document #: 744656 Grantee: Kirisey, LLC Area: 0.28 Acres (12,000 SF) Zoning: Land use 100- Vacant Unknown, Nye $/Sq. Pt: $2.67 County Verification: Verified with Nyc County Public Records, Comments: These parcels are located within the town limits of l3eatty, Nevada, This was a grant, bargain, sale deed in which 0.28 net acres of land sold. These properties are one parcel behind a parcel that fronts along US Highway 95. This has an unknown land use, but has the potential to be used for commercial

File #11-1608 ]LIflAWY i2$ ASSOCIATES. INC. Tonopah Property Valuation 75

PROPERTY DATA 3. Location: The east side of Tamarack Road, south of Sale Date: May 20. 2010 APN: 019-24t-U6 Frontier Street Sale Price: $88,2(fl Document #: 746396 Grantor: Housing and Urban Developnient — - Area: 1.10 Acres (4,91b SF) Grantee: Denn:s F. & Maureen F Anws 5/Sq. Pt: S1.&4

Zoning; Land usc 1C - Vcnrtt Unknown, S’e County Verification: Verified with Nyc Cour.t ?ubbc Records Comments: This prcpertr is located withir. the town limits of Azmargosa Vafle, Nevada. This ‘%as a grar.t, bargain, sale deed in which 110 net acres of and sod. This property is not located along any major roadwav This is located within a residential/vacant area- i Location: The east side of XVatsur Sb-eel, north of Sale Date: June 3, 2010 Arc: 21S-334-07 Knight Avenue Sale Price: $10500 Document N: 748145 Grantor: Johrnv P-Scarborough Ill 011 Acres (5. SF) Grantee: Carry Arkerrnand & Juarne Rickard Sq. FL: 5210 Zoning: Lar.d use 1P0 - Vacant Land with Minor Improvements. No Usable Sthichire

Verification: Verified w:th Nyc (*luntv Public Vorks Comments: this ropqrtv is located w,:hin the town limits of &attv. Nevada. This was a grant, bargain. sale deed in wl’LcF. [ll net acres of and sold- This proptrh is not located aong any main, roadway This s located within a cs:dentia area

File #11-160B L[IBAWV & ASSOCIATES. INC. Tonapab Property Valuation 76

LAND SALES LOCATION MAP

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File #11-16013 LUBAWY ASSOCIATES, XNC Tonopah Property Valuation 77

EXPLANATION OF ADJUSTMENTS As part of our analysis, we have made individual comparisons between each of the sales and the subject site.

Real Properly Rights Conveyed The subject site has been analyzed based on fee simple ownership. All of the comparable sales involved transfers of fee simple rights and, therefore, no adjustments were needed for the sales for real property rights conveyed.

Financing For this analysis, the subject property has been valued based upon cash equivalent terms. Each of the sale transactions was found to have been negotiated on an “all cash” basis or with financing that did not affect the sales price. Therefore, no adjustments for financing were considered necessary for any of the sales.

Conditions ofSale Each sale has been examined for atypical characteristics that would then have been confirmed by either the broker or a principal party to the transaction. According to the information disclosed, Sales 1 through 4 were arm’s-length transactions and considered to be typical market sales.

Time/Market Conditions The comparable sales used in this analysis are dated from March 2010 to June 2010, and they are roughly one year old. The subject property was offered for sale in May 2009 at $49,628 per acre, and in May 2010 at $52,405 per acre, which is less than the per acre prices of the comparable sales. A market conditions adjustment is needed, and Sale 3 is mostly similar to the subject in size.

After the location adjustment discussed below, a downward market conditions adjustment for the sales was determined by comparing Sale 3 to $45,000 per acre, which is 9% lower than the unsuccessful auction price of the subject land in May 2009. The $45,000 per acre with typical time for buyer/seller negotiations is assumed for analysis to be a reasonable price, although the property would have been offered for $27,011 per acre if not pulled from the May 2011 auction list by Nyc County Public Works. The market conditions adjustment is calculated as follows:

($99,427 / AC Sale 3 - $45,000/AC Assumed Sale Price) + $99,427 = 55% downward adjustment for the comparable sales

Location An adjustment for location may be required when the locational characteristics of a comparable property are different from those of the subject property. Most comparable properties in the same neighborhood have similar locational characteristics, but variations may exist within a neighborhood. The specific location of a comparable property can influence its price. Furthermore, the access and visibility of a major arterial or location within a specific area can have a positive

File #11-1608 LUBAWY ASSOCIATES, INC. Tonopah Property Valuation 78

impact upon the property price. Arterial exposure is primarily important for ease of locating and accessing the property by the public.

The subject property is located along US Highway 95 at the far north end of town, and at the outskirts of development along US 95. Demand for development at the subject’s location has been limited over the years, arid it isn’t concluded to be good today.

Sale 2 is located in Beatty, Nevada, just one parcel behind a parcel that fronts US 95. After consideration, Sale 2 is concluded to be similar to the subject th location appeal. Sales 1,3, arid 4 are located in the Tonopah, Armargosa Valley, and Beatty townsites respectively, but they are not located on any major roadways. An upward adjustment for these three sales is needed, and the adjustment was determined by comparirig Sale 4 to Sale 2 [($218,51.9 / AC Sale 2-595,455/ AC Sale 4) + $95,455 = 24% upward adjustment for Sales 1,3, and 4J.

Size The subject site totals 2.92 net acres, while the comparable sales range in size from 0.11 to 1.10 acres. Sales 2 and 4 at .27 and 11 acres in size are the two smallest sales, and a downward adjustment is

needed. The adjustment was determined by comparing Sale 2 to Sale 3 [(S53,333/AC Sale 2 - $44,742/AC Sale 3) ÷ $53,333 = 16% downward adjustment for Sales 2 and 4].

Sale I is significantly smaller than the subject but larger than Sales 2 and 4, and when comparing Sale 1 with the other sales, an adjustment was not discernible.

Shape The subject property and the comparable sales all have functional shapes, and no adjustments are necessary.

Offslies The subject and all of the sales need offsites. As a result, no adjustments are necessary.

Top ography The subject parcel and the comparable sales are not in flood zones, and they all have level topography. Therefore, no adjustments for topography or flood zones are necessary.

Economic Characteristics All of the comparables are similar to the subject in that no consideration need be given to economic characteristics, and no adjustments for economic characteristics were made.

File #11-16013 UJ[BAWY f ASSOCIATES, JNC. Tunapith Property Valuation 79

Use/Zoning The subject property has no zoning, but it fronts US 95 and couid eventually be developed with a commercial use. Sales 1, 3, and 4 are surrounded by vacant land or residential development while Sale 2 is, like the subject, a potential commercial site. Since Sale 2 was used as the basis for the location adjustment, any needed adjustment for use/zoning for Sales 1, 3, and 4 is considered to be included in the location adjustment.

Non-Realty Components Non-realty components of value include personal property, business concerns, or other items that do not constitute real property but are included in the sales price of the comparable sales. None of the comparable sales sold with non-realty components therefore no adjustment is required.

The preceding adjustments have been applied to the land sales. These adjustments are summarized as follows:

TONOPAH LAND SALES ADJUSTMENT GRID

Salel SaIe2 SaIe3 SaIe4 Location SEC Glenda! NWC Cedar St/ Es Tamarack ES Watson Bryan Ave Second St S of Frontier N of Knight Ave Date of Sale 3/26/2010 4/27/2010 5/20/2010 6/30/2010 sale Price $25,000 $32,000 588,201 $10,500 Land Area (AC) 0.39 027 1-10 011

PRICE PER ACRE $64,103 $118,519 $80,183 $95,455 Real Property Rights Co,weyed sQ 52 SUBTOTAL $64,103 $118,519 $80,183 $95,455

hnancing Terms Q SUBTOTAL $64,103 $118,519 $80,183 $95,455

Condition of Sale Q $0 SUBTOTAL $64,103 $118519 $80,183 $95,455

Ti,ne/Market Conditions ($35 256) ($65.1851 $44101) ($52500) SUBTOTAL $28,846 $53333 $36,082 $42,955

Loc4ltion $6,923 $0 $8,660 $10,309 Physical CharacteHsiics Sie $0 ($8,533) $0 ($8,522) Shape $0 $0 $0 $0 Corner Influence $0 $0 $0 $0 Lltilities/Offsite/Onsites Improvements $0 $0 $0 $0 Mobile Homes $0 $0 $0 $0 Topography/flood zone $0 $0 $0 $0 Economic Clmracterislics $0 $0 $0 $0 Use/Zoning $0 $0 $0 $0 Non-Realty Compcnens $0 $0 $0 $0 Demolition of Improvements NET ADJUSTh4ENT5 $6,923 ($8,533) $8,660 $1,787 ADJ. PRICE / AC $35,769 $44,800 $44,742 $44,741

File #J -1 GOB EIIBAWY ?t ASSOCIATES INC.