Gravel Pits - Mining Plan

CRYSTAL PEAK MINERALS INC.

Prepared for Crystal Peak Minerals Inc. 2180 South 1300 East Suite 200 Salt Lake City, Utah 84106

Working Document Prepared by

Crystal Peak Minerals Inc. 2180 South 1300 East, Suite 200 Salt Lake City, Utah 84106 and

Norwest Corporation 57 West 200 South, Suite 500 Salt Lake City, Utah 84101

GRAVEL PITS - MINING PLAN 1 CRYSTAL PEAK MINERALS INC.

Crystal Peak Minerals Inc. (CPM), is submitting this Gravel Pit Mining Plan to mine aggregate materials to support the Sevier Playa Project (SPP or Project).

CPM has determined that the Project would require approximately 253,800 cubic yards (cy) of aggregate materials. The aggregate materials would comprise the following: • 89,000 cy of road base • 75,000 cy of structural backfill • 89,800 cy of gravel subbase • Small amounts of various other materials The total aggregate material volume does not include the estimated 30,200 cy of railroad ballast and 22,200 cy of sub-ballast, which would be sourced from a commercial quarry. Martin Marietta Aggregates Company can supply railroad ballast from the Milford Quarry, which is 23 miles south of Black Rock, Utah. Alternative ballast sources are located in Cedar City, Utah. Three new gravel pits are being proposed to source the aggregate materials. Two of them (Pass Federal Pit and Playa Federal Pit) would be on federal land, and one of them (Playa SITLA Pit) would be on state land that is managed by the Utah School and Institutional Trust Lands Administration (SITLA). The Pass Federal Pit would be located east of the existing West Sevier Free Use Pit (FUP) (Figure 1). The Playa Federal Pit and the Playa SITLA Pit would be near the southern extent of Sevier Playa (Figure 2). Pass Federal Pit The Pass Federal Pit would be located adjacent to the existing FUP, on Crystal Peak Road, approximately 8.2 miles west of State Route 257 intersection, near Black Rock, Utah, in Section 29, Township (T) 24 South (S), Range (R) 11 West (W), Salt Lake Meridian (see Figure 1). Pass Federal Pit would be accessed from Crystal Peak Road by a to-be-constructed dirt road, referred to as the Pass Federal Pit Road, that would measure approximately 228 feet long by 15 feet wide. The center of Pass Federal Pit would be 316400.7 Easting (E), 4285554.8 Northing (N), Universal Transverse Mercator (UTM) North American Datum (NAD) 83, Zone 12 North (N). A 60-foot buffer zone would be used between FUP and the Pass Federal Pit to avoid removing gravel from the FUP areas. CPM would purchase the material via a negotiated sale with the Bureau of Land Management (BLM). A mining plan in conformance with 43 Code of Federal Regulations (CFR) 3601.41 would be provided to the BLM, as well as submittal of a Contract for the Sale of Mineral Materials (Form 3600-9). Assuming that 75% of the bank material in the gravel pit would be usable, approximately 60,750 cy of material would be excavated to provide the Project with approximately 45,562 cy of aggregate materials. No geotechnical testing is currently planned for materials from the proposed gravel pit. Aggregate materials would be obtained through the development of a pit, up to 24-feet deep, with sloped sides of 2.5H:1V (horizontal/vertical) for the pit edges and the hillside. The hillside slope would not exceed 40%, and excavation of a highwall would not be allowed. The excavated area would be approximately 4.3 acres. Total disturbance for Pass Federal Pit, including the access road, would be approximately 4.38 acres. After the necessary materials have been removed and the pit is no longer required, the area would be reclaimed. Reclamation would involve redistribution over the pit floor of the approximately 15,188 cy (25%) of non-usable aggregates and regrading the pit slopes, if necessary, to provide slope stabilization and reduce erosion. Stockpiled topsoil would be redistributed over the disturbed pit area. The access

GRAVEL PITS - MINING PLAN 2 CRYSTAL PEAK MINERALS INC.

GRAVEL PITS - MINING PLAN 3 CRYSTAL PEAK MINERALS INC.

GRAVEL PITS - MINING PLAN 4 CRYSTAL PEAK MINERALS INC. route would be decompacted and graded to meet adjacent topography. A seed mix, approved by the BLM, would then be applied over the disturbed areas, using a broadcast method. After the pit area has been reseeded, plant growth would be monitored for a minimum of 3 years or until the reclamation standards of success have been attained. Within 5 years the goal would be to achieve 75% basal cover, based on similar undisturbed, adjacent native vegetative communities, comprised of desired species and/or seeded species. However, if after three growing seasons there is less than 30% basal cover (based on similar, undisturbed native vegetative communities), then the authorized officer (AO) may require additional seeding efforts. The reclamation bond/liability would not be released until the AO accepts the reclamation in writing. Playa Federal Pit The Playa Federal Pit would be located just east of Crystal Peak Spur Road, approximately 1.5 miles north of Crystal Peak Road, in Section 15, T24S, R12W, Salt Lake Meridian (see Figure 2). Playa Federal Pit would be accessed off of Crystal Peak Spur Road, on a to-be-constructed dirt road, referred to as the Playa Federal Pit Road, that would measure approximately 200-feet long by 15-feet wide. The center of Playa Federal Pit would be 309683.0 E, 4287892.0 N, UTM NAD 83 Zone 12N. The Playa Federal Pit would be located within CPM’s existing federal lease and, therefore, would not require a negotiated sale agreement with the BLM if the extracted minerals remain within the limits of the lease boundary. If the minerals are used outside of the lease boundary, a sale agreement would be required. Assuming that 70% of the bank material would be usable, approximately 180,000 cy of material would be excavated to provide the Project with approximately 126,000 cy of aggregate materials. No geotechnical testing is currently planned for materials from the proposed gravel pit. Material would be sourced through the development of a pit, up to 15-feet deep, with sloped sides of 2.5H:1V. The excavated area is estimated at 9 acres. Total disturbance for Playa Federal Pit, including the access road, would be 9.07 acres. After the necessary materials have been removed and the pit is no longer required, the area would be reclaimed. Reclamation would involve redistribution over the pit floor of the approximately 54,000 cy (30%) of non-usable materials and regrading the pit slopes, if necessary, to provide slope stabilization and reduce erosion. Stockpiled topsoil would be redistributed over the disturbed pit area. The access route would be decompacted and graded to meet adjacent topography. A seed mix, approved by the BLM, would then be applied over the disturbed areas using a broadcast method. Due to the potential presence of alkaline soils at the base of the pit, the use and application of soil amendments, such as fertilizer, may be necessary to promote plant growth. Prior to the use of any soil amendments, CPM would provide to the BLM the specifics on the recommended soil amendment for their review and approval. After the pit area has been reseeded, plant growth would be monitored for a minimum of 3 years or until the reclamation standards of success have been attained. Within 5 years the goal would be to achieve 75% basal cover, based on similar, undisturbed adjacent native vegetative communities comprised of desired species and/or seeded species. However, if after three growing seasons there is less than 30% basal cover (based on similar, undisturbed native vegetative communities), then the AO may require additional seeding efforts. The reclamation bond/liability would not be released until the AO accepts the reclamation in writing.

GRAVEL PITS - MINING PLAN 5 CRYSTAL PEAK MINERALS INC.

Playa SITLA Pit The Playa SITLA Pit would be located west of Crystal Peak Spur Road, in Section 16, T24S, R12W, Salt Lake Meridian (see Figure 2). Playa SITLA Pit would be accessed through CPM’s existing yard on SITLA land on a to-be-constructed dirt road, referred to as the Playa SITLA Pit Road, that would measure approximately 2,80- feet long by 15-feet wide. The center of Playa SITLA Pit would be 308476.0 E, 4287958.0 N, UTM NAD 83 Zone 12N. This pit would be located within CPM’s current SITLA mineral lease area. CPM has contacted SITLA regarding the construction and use of the Playa SITLA Pit and would obtain all required permits and approvals from SITLA prior to development. Assuming that 70% of the bank material would be usable, approximately 120,000 cy of material would be excavated to provide the Project with approximately 84,000 cy of aggregate materials. No geotechnical testing is currently planned for materials from the proposed gravel pit. Material would be sourced through the development of a pit, up to 15-feet deep, with sloped sides of 2.5H:1V. The excavated area would be approximately 6 acres. Total disturbance for Playa SITLA Pit, including the access road, would be approximately 6.9 acres. After the necessary materials have been removed and the pit is no longer required, the area would be reclaimed. Reclamation would involve redistribution over the pit floor of the approximately 36,000 cy (30%) of non-usable materials and regrading the pit slopes, if necessary, to provide slope stabilization and reduce erosion. Stockpiled topsoil would be redistributed over the disturbed pit area. The access route would be decompacted and graded to meet adjacent topography. A seed mix, approved by SITLA, would then be applied over the disturbed areas using a broadcast method. Due to the potential presence of alkaline soils at the base of the pit, the use and application of soil amendments, such as fertilizer, may be necessary to promote plant growth. Prior to the use of any soil amendments, CPM would provide to SITLA the specifics on the recommended soil amendment for their review and approval. CPM would work with SITLA to determine the appropriate reclamation standards for the SITLA Playa Pit. Pit Operation CPM would hire a contractor with a mobile crusher and screen plant to excavate, process aggregate materials, and perform reclamation on the three pits. The crusher and screen plant would be centrally located within each pit area and would operate as needed. The crusher and screen plant would potentially move from pit to pit, as necessary, to accommodate Project needs. Crushing and screening operations would operate 12 hours a day during daylight hours, generally on weekdays, and would potentially include weekend operations, depending on Project needs. A production rate of 55 to 110 tons per hour at 90% utilization would be anticipated. Hazard signs would be posted for public safety. Site Disturbance and Reclamation Prior to disturbance, the top 6 inches of topsoil, or the growth medium, would be removed and stockpiled adjacent to each pit area for replacement during reclamation. The growth medium stockpiles would be seeded with a BLM-approved seed mix as a temporary stabilization measure. The pits would be reclaimed after the necessary materials have been removed and they are no longer required, as described above. Stockpiled topsoil would be redistributed over the disturbed pit area. Once replaced, the topsoil would be seeded, per the BLM- and SITLA-recommended seed mix and methods. Further details on reclamation of the gravel pits is included in CPM’s Reclamation Framework Plan (2018).

GRAVEL PITS - MINING PLAN 6 CRYSTAL PEAK MINERALS INC.

References Crystal Peak Minerals. 2018. Reclamation Framework Plan. Salt Lake City, Utah: Crystal Peak Minerals Inc.

GRAVEL PITS - MINING PLAN 7