APPENDIX 3. FINAL DRILLING REPORT, APACHE...

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APPENDIX 3. FINAL DRILLING REPORT, APACHE MESA, RIO ARRIBA COUNTY, NEW MEXICO Virginia T. McLemore INTRODUCTION During field investigations June 10-12, 2015, 18 proposed drill hole locations were staked in the field with wooden stakes and flagged with orange, blue, and pink flagging tape. Drilling began on August 18, 2015. A few problems were encountered during drilling and solved. The equipment was moved onto the site on August 18, 2015 and trenches for water were dug. The major delay was when the drill rig ceased to function because of fuses. After trouble-shooting for 1.5 hr, the drillers were able to get the rig going. Drilling on DH1 began on August 19, 2015. Additional difficulties were encountered (loss of circulation, improper core springs) but resolved. Drilling was completed on August 25, 2015. Table 1 summarizes the final completed drill holes. A new hole was located and drilled (DH7) along the road south of DH5 because DH5 did not encounter much black sandstone and I had mapped it to the south. The road was already cleared and the hole was on the road with little disturbance. TABLE A1. Completed drill locations, Apache Mesa REE Project. UTM coordinates are in NAD27 and represent final drill hole location. Final Drill Hole Id UTM easting UTM northing UTM zone Total depth (ft) Completion Purpose Summary of goals DH1 337543 4059240 13 112.3 8/19/2015 Confirmation to determine thickness of middle deposit Deposit is 1.8 ft thick, Point Lookout Sandstone is 107 ft DH2 337479 4059136 13 42.4 8/20/2015 Confirmation to determine thickness of middle deposit No black sandstone, depositional environment suggests an inlet DH3 337486 4059021 13 45 8/20/2015 Confirmation to determine thickness of middle deposit Deposit is 3.2 ft thick DH4 337590 4059418 13 83 8/21/2015 Preliminary hole DH 105, exploration to determine northern extent of middle deposit No black sandstone deposit. Did encounter gray sandstone at 73.8-74.8 DH5 337732 4059035 13 113 8/21/15 Preliminary hole DH4, confirmation to determine thickness of eastern deposit and the thickness of Point Lookout 0.2 ft black sandstone, Point Lookout is 108.6 ft DH6 337723 4059200 13 53 8/22/15 Preliminary hole DH5, confirmation to determine thickness of eastern deposit Black sandstone is 1.8 ft DH7 337714 4058862 13 43 8/22/15 New hole (on road), confirmation to determine thickness of eastern deposit Black sandstone is 3.5 ft thick DH8 337733 4059310 13 53 8/22/15 Confirmation to determine thickness of eastern deposit Black sandstone is 3.2 ft thick (loss recovery). DH9 337749 4059465 13 53 8/22/15 Preliminary DH106, exploration to determine northern extent of eastern deposit Black sandstone is 3.5 ft thick DH10 338405 4059065 13 148 8/23/15 Preliminary hole DH109, wildcat to determine eastern extent, low priority No black sandstone encountered, drilled through a white beach sandstone at base (either lower Point Lookout or another sandstone in the underlying shale), but no evidence of a black sandstone deposit DH11 337840 4059780 13 48 8/24/15 Preliminary hole 111, exploration to determine northern extent Black sandstone beneath coal 1

Transcript of APPENDIX 3. FINAL DRILLING REPORT, APACHE...

APPENDIX 3. FINAL DRILLING REPORT, APACHE MESA, RIO ARRIBA COUNTY, NEW MEXICO

Virginia T. McLemore

INTRODUCTION

During field investigations June 10-12, 2015, 18 proposed drill hole locations were staked in the field with wooden stakes and flagged with orange, blue, and pink flagging tape. Drilling began on August 18, 2015. A few problems were encountered during drilling and solved. The equipment was moved onto the site on August 18, 2015 and trenches for water were dug. The major delay was when the drill rig ceased to function because of fuses. After trouble-shooting for 1.5 hr, the drillers were able to get the rig going. Drilling on DH1 began on August 19, 2015. Additional difficulties were encountered (loss of circulation, improper core springs) but resolved. Drilling was completed on August 25, 2015. Table 1 summarizes the final completed drill holes. A new hole was located and drilled (DH7) along the road south of DH5 because DH5 did not encounter much black sandstone and I had mapped it to the south. The road was already cleared and the hole was on the road with little disturbance.

TABLE A1. Completed drill locations, Apache Mesa REE Project. UTM coordinates are in NAD27 and represent final drill hole location.

Final Drill

Hole Id

UTM easting

UTM northing

UTM zone

Total depth (ft)

Completion Purpose Summary of goals

DH1 337543 4059240 13 112.3 8/19/2015 Confirmation to determine thickness of middle deposit Deposit is 1.8 ft thick, Point Lookout Sandstone is 107 ft

DH2 337479 4059136 13 42.4 8/20/2015 Confirmation to determine thickness of middle deposit No black sandstone, depositional environment suggests an inlet

DH3 337486 4059021 13 45 8/20/2015 Confirmation to determine thickness of middle deposit Deposit is 3.2 ft thick

DH4 337590 4059418 13 83 8/21/2015 Preliminary hole DH 105, exploration to determine northern extent of middle deposit

No black sandstone deposit. Did encounter gray sandstone at 73.8-74.8

DH5 337732 4059035 13 113 8/21/15 Preliminary hole DH4, confirmation to determine thickness of eastern deposit and the thickness of Point Lookout

0.2 ft black sandstone, Point Lookout is 108.6 ft

DH6 337723 4059200 13 53 8/22/15 Preliminary hole DH5, confirmation to determine thickness of eastern deposit

Black sandstone is 1.8 ft

DH7 337714 4058862 13 43 8/22/15 New hole (on road), confirmation to determine thickness of eastern deposit

Black sandstone is 3.5 ft thick

DH8 337733 4059310 13 53 8/22/15 Confirmation to determine thickness of eastern deposit Black sandstone is 3.2 ft thick (loss recovery).

DH9 337749 4059465 13 53 8/22/15 Preliminary DH106, exploration to determine northern extent of eastern deposit

Black sandstone is 3.5 ft thick

DH10 338405 4059065 13 148 8/23/15 Preliminary hole DH109, wildcat to determine eastern extent, low priority No black sandstone encountered, drilled through a white beach sandstone at base (either lower Point Lookout or another sandstone in the underlying shale), but no evidence of a black sandstone deposit

DH11 337840 4059780 13 48 8/24/15 Preliminary hole 111, exploration to determine northern extent Black sandstone beneath coal

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Final Drill

Hole Id

UTM easting

UTM northing

UTM zone

Total depth (ft)

Completion Purpose Summary of goals

DH12 337369 4059715 13 27 8/24/15 Preliminary hole 103, exploration to determine northern extent Encountered yellow sandstone, no black sandstone

DH13 337006 4059042 13 88 8/25/15 Preliminary hole 101, exploration Point Lookout, if present here is thin and underlain by lower Mesaverde, no black sandstone

DH14 337660 4059628 13 150 8/25/15 Preliminary hole 107, exploration Encountered fault at 11.5, most of hole in white, yellow and gray sandstone, no coal, no black sandstone

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FIGURE A1. Final drill hole map, Apache Mesa REE project (Apache Mesa quadrangle, Rio Arriba County, NM). Specifics of each proposed drill hole are summarized in Table A1.

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DRILL LOGS—APACHE MESA, JICARILLA INDIAN RESERVATION, RIO ARRIBA COUNTY, NEW MEXICO Hole id DH1 Preliminary drill hole id DH1 Site Name Apache Mesa (AP Mesa) UTM easting 337543 UTM northing 4059240 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8330 Total Hole Depth (ft) 112.3 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/19/2015 Completion Date 8/19/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of middle deposit, thickness of Point Lookout Sandstone Summary black sandstone deposit is 1.8 ft thick, Point Lookout Sandstone is 110 ft thick, Mancos is at 110 ft. Comments Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-10.2 100% DH1-1 (0-1 ft) Black sandstone 0-1.8 2 10.2-19.2 100% DH1-12 (12.4-12.9 ft) White sandstone 1.8-38 3 19.2-28.7 100% Yellow sandstone 38-107.1 4 28.7-38 100% shale 107.1-110 5 38-46.8 100% Gray sandstone

(carbonate cement) 110-111.3

6 46.8-56 100% Yellow sandstone 111.3-112.3 7 56-65 100% 8 65-74.3 100% 9 74.3-82.6 100% 10 82.6-92 100% 11 92-101 100% 12 101-109.7 100% 13 109.7-112.3 100%

DRILL LOG

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LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 1.8 Black sandstone

Grayish red 5R4/2 to dusky red 5R3/4

Alternating gray and red and dusky red layers, lower 6 in massive

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Top is unconsolidated to lower lighter colors

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp Slightly magnetic

Box 1, photo of cross bedding

1.8 1.9 Altered white sandstone

Yellow gray 5Y8/1

Brown sand inclusions

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm filled with organics

gradational nonmagnetic

3.7 6.5 White sandstone

Very light gray N8

mm layers of pale orange 10YR8/2

ml to uf

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Some (mm)

gradational nonmagnetic

10.2 0.9 White sandstone

Very light gray N8

massive uf to ul

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Some (mm)

gradational nonmagnetic Box 2

11.1 1.1 White sandstone

Very pale orange pink 5YR8/4

Few planar cross beds

uf to ul

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Very few gradational nonmagnetic

12.2 2 White sandstone

Very pale orange pink 5YR8/4 to pale yellow

Few planar cross beds

ml to uf

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Very few gradational nonmagnetic

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Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

brown 10YR6/2

14.2 5 White sandstone

Very light gray N8 with yellow brown 10YR5/4 cross beds

Few planar cross beds

uf Rounded to subrounded

Well to moderately well

Some (pore)

Few mm layers oxidized

Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Very few gradational nonmagnetic

19.2 9.5 White sandstone

Very light gray N8 with 10YR5/4 and black red 5R2/2 cross beds

Few planar cross beds

ml Rounded to subrounded

Well to moderately well

Some (pore)

Few layers oxidized

Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Very few gradational nonmagnetic Box 3

28.7 9.3 White sandstone

Very light gray N8 with 10YR5/4 and black red 5R2/2 cross beds

Few planar cross beds

ml Rounded to subrounded

Well to moderately well

Some (pore)

Few layers oxidized

Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Very few gradational nonmagnetic Box 4

38 8.8 Yellow sandstone

Light olive gray 5Y5/2 with olive gray

Planar at top to massive

ml to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Upper oxidized, decrease toward base

massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

Very few gradational nonmagnetic Box 5

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Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

5Y3/3 fracture

46.8 9.2 Yellow sandstone

Light olive gray 5Y5/2 with brown and black cross beds

ml to uf

Rounded to subrounded

Well to moderately well

Some (pore)

none Massive, coarser grain size upwards

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few black

gradational nonmagnetic Box 6

56 3.8 Yellow sandstone

Light olive gray 5Y5/2 with brown cross beds

planar fu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

none Angular to planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few, black and brown mm-cm

gradational nonmagnetic Box 7

59.7 5.3 Yellow sandstone

Light olive gray 5Y5/2 with brown cross beds

Mottled spotches

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

none massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few, black and brown mm-cm

gradational nonmagnetic

65 9.3 Yellow sandstone

Light olive gray 5Y5/2

massive fu to fl to vfu at base

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar cross beds to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few, black and brown mm-cm

gradational nonmagnetic Box 8

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Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

74.3 8.3 Yellow sandstone

Light olive gray 5Y5/2

Massive with few cross beds

fl to vfu

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar cross beds to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few, black mm-cm

gradational Fractures slightly magnetic

Box 9

82.6 8.3 Yellow sandstone

Light olive gray 5Y5/2

Massive with few cross beds

fu Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar cross beds to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few, black mm-cm

gradational Box 10

92 9 Yellow sandstone

Light olive gray 5Y5/2

Massive fu Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar cross beds to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational Box 11

101 5.5 Yellow sandstone

Light olive gray 5Y5/2

Massive fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp Box 12

107.1 2.6 shale Light gray N7 to dark gray N3

None none Planar laminated

none sharp

109.7 0.3 shale Light gray N7 to dark gray N3

None none Planar laminated

none sharp Box 13

110 1.3 Gray sandstone

Light gray N7

Coarse grained

mu to cl

Subrounded to subangular

Moderately well

none none Planar cross beds (mm)

calcite Quartz, feldspar, rock fragments

none sharp

8

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

111.3 1 Yellow sandstone

Pale yellow brown 10YR6/2

mu Subrounded to subangular

Moderately well

none none Planar cross beds (mm)

Fe oxide, silica (no carbonate)

Quartz, feldspar, rock fragments

none sharp

112.3 TD

DH1. 0-10.2 ft DH1. 10.2-19.2 ft DH1. 19.2-28.7 ft.

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DH1. 28.7-38 ft. DH1. 38-46.8 ft. DH1. 46.8-56 ft.

DH1. 56-65 ft. DH1. 65-74.3 ft DH1. 74.3-82.6 ft.

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DH1. 82.6-92 ft. DH1. 92-101 ft. DH1. 101-109.7 ft.

DH1. 109.7-112.3 ft. DH1. Site before drilling (June 11, 2015). DH1. Site during drilling.

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DH1. Reclaimed site (September 22, 2015).

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Hole id DH2 Preliminary drill hole id DH2 Site Name Apache Mesa (AP Mesa) UTM easting 337479 UTM northing 4059136 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, cool Ground Elevation (ft) 8325 Total Hole Depth (ft) 42.4 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/20/2015 Completion Date 8/20/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of middle deposit, depositional environment Summary no black sandstone deposit, embayment between black sandstones, Point Lookout Sandstone Comments embayment Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-10.8 100% DH2-1 (0-0.8) sandstone 0-5.6 2 10.8-19.8 100% DH2-9 (9.2-9.8) shale 5.6-10.8 3 19.8-28.8 100% White sandstone 10.8-28.8 4 28.8-38.2 100% Yellow sandstone 28.8-42.4 5 38.2-42.4 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 5.6 sandstone lf to uf

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp nonmagnetic Box 1

13

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

5.6 1.9 Black shale/coal

Black N1

none none none sharp 63% recovery, swelled when drilled

7.5 3.3 White Sandstone with 8 inch siltstone to black shale

Grayish orange 10YR7/4 and gray N5 to N2

massive uf to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp nonmagnetic

10.8 1.1 White sandstone

Yellow gray 5Y7/2

massive ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar laminated mm

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp nonmagnetic Box 2

19.8 10 Yellow sandstone

Pale yellow brown 10YR6/2

planar uf to ml, few cl

Rounded to subrounded

moderately well

Some (pore)

none Few dark planar layers mm

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, rock fragments

none nonmagnetic Box 3

28.8 9.4 Yellow sandstone

Pale yellow brown 10YR6/2

planar mu to few cl

Rounded to subrounded

moderately well

Some (pore)

none Few dark planar layers mm

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, rock fragments

none 95% recovery, swelled

nonmagnetic Box 4

38.2 1.2 Yellow sandstone

Pale yellow brown 10YR6/2 and gray N4

Alternating orange and brown with 1 inch gray shale

fu Rounded to subrounded

moderately well

Some (pore)

none planar layers mm

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, rock fragments

none 95% recovery, swelled

nonmagnetic Box 5, closeup of 38.2 to 39.4

39.4 3 Yellow sandstone

Pale yellow brown 10YR6/2

Yellow sandstone

fu to ml

Rounded to subrounded

moderately well

Some (pore)

none planar layers mm

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, rock fragments

none 95% recovery, swelled

nonmagnetic

42.4 TD

14

DH2. 0-10.8 ft. DH2. 10.8-19.8 ft. DH2. 19.8-28.8 ft.

DH2. 28.8-38.2 ft DH2. 38.2-42.4 ft. DH2. Site before drilling (June 11, 2015). 15

DH2. Reclaimed site (September 22, 2015).

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Hole id DH3 Preliminary drill hole id DH3 Site Name Apache Mesa (AP Mesa) UTM easting 337486 UTM northing 4059021 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8310 Total Hole Depth (ft) 45 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/20/2015 Completion Date 8/20/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of middle deposit Summary black sandstone deposit is 3.2 ft thick, Point Lookout Sandstone Comments lost some of surface Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-10.8 98% D5.6 R5.5 DH3-1 (0-1 ft) Black sandstone 0-0.5 2 10.8-20 100% DH3-2 (1-2 ft) White sandstone 0.5-29.2 3 20-29.2 100% DH3-3 (2-3.2 ft) Yellow sandstone 29.2 4 29.2-38.8 100% 5 38.8-45 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 0.5 Black sandstone

Black red 5R2/2 to pale red 5R6/2

fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Broken up Thin planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none gradational Slightly magnetic

Box 1, photo of cross bedding at 3.2

17

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0.5 2.6 white sandstone

Light olive gray 5Y5/2

fl to fu

Rounded to subrounded

Well to moderately well

Some (pore)

none Thin planar laminated

Fe oxide, silica (no carbonate)

Increase in Quartz, feldspar, trace black minerals

none gradational Nonmagnetic, clean sandstone

3.2 0.8 White sandstone

Light olive gray 5Y5/2

fl to fu

Rounded to subrounded

Well to moderately well

Some (pore)

none Thin planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

4.0 1.6 White sandstone

Yellow gray 5Y7/2

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Thin planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

5.6 5.2 White sandstone

Yellow gray 5Y7/2

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Thin planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

10.8 9.2 White sandstone

Yellow gray 5Y7/2

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 2

20 9.2 White sandstone

Yellow gray 5Y7/2

Top 2 ft interbedded with shale (mm)

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 3

29.2 9.6 Yellow sandstone

Gray orange 10YR7/4

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 4

18

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

38.8 6.2 Yellowe sandstone

Moderate yellow brown 10YR5/4

massive mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 5

45 TD

DH3. 0-10.8 ft. DH3. 10.8-20 ft. DH3. 20-29.2 ft.

19

DH3. 29.2-38.8 ft. DH3. 38.8-45 ft. DH3. Site before drilling (June 11, 2015).

DH3. Site during drilling. DH3. Reclaimed site (September 22, 2015).

20

Hole id DH4 Preliminary drill hole id DH105 Site Name Apache Mesa (AP Mesa) UTM easting 337590 UTM northing 4059418 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8340 Total Hole Depth (ft) 83 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/20/2015 Completion Date 8/21/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of middle deposit, determine eastern extent of deposits Summary no black sandstone deposit, Point Lookout Sandstone Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-9.8 92% D6 R5.5 White sandstone 0-12.8 2 9.8-18.6 100% Yellow sandstone 12.8-73.8 3 18.6-27.6 100% Gray sandstone 73.8-82.2 4 27.6-36.7 100% Yellow sandstone 82.2-83 5 36.7-45.4 100% 6 45.4-55.5 100% 7 55.5-64.9 51% D5.3 R2.7 8 64.9-73 100% 9 73-82.2 100% DH4-73 (73.8-74.8) 10 82.2-83 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 9.8 White sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Top 6 inch weathered

Dark Planar laminated (mm)

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, rock fragments

none gradational nonmagnetic Box 1

21

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

9.8 3 white sandstone with few shale layers

Pale yellow brown 10YR6/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Dark Planar laminated (mm), shale layers

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Few mm filled with organics

gradational nonmagnetic Box 2

12.8 5.8 Yellow sandstone

Very light gray N8

ml to cl

Rounded to subrounded

moderately well

Some (pore)

none Massive with few dark planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Some (mm)

gradational nonmagnetic

18..6 3.4 Yellow sandstone

Very light gray N8

massive ml to mu

Rounded to subrounded

moderately well

Some (pore)

none Massive with few dark planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 3

22 5.6 Yellow sandstone

Pale olive 10Y6/2 to light olive gray 5Y5/2

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic

27.6 10.1 Yellow sandstone

Pale olive 10Y6/2 to light olive gray 5Y5/2

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few black

gradational nonmagnetic Box 4

37.7 8.7 Yellow sandstone

Yellow gray 5Y7/2

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few with organics

gradational nonmagnetic Box 5

22

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

45.4 10.1 Yellow sandstone

Yellow gray 5Y7/2 to olive brown 5Y5/6

fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic Box 6

55.5 9.4 Yellow sandstone

Yellow gray 5Y7/2 to olive brown 5Y5/6

fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar cross beds mm to cm

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic Box 7

64.9 8.1 Yellow sandstone

Yellow gray 5Y7/2 to olive brown 5Y5/6

fl to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar cross beds mm to cm

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic Box 8

73 0.8 Yellow sandstone

Olive brown 5Y5/6

fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Few planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp Box 9

73.8 1 Gray sandstone

Light gray N7 to medium gray N6

Massive with 1 inch layer of gray brown sandstone (5YR3/2) to gray orange (10YR7/4)

ml Rounded to subrounded

Well to moderately well

Some (pore)

none Alternating light and dark layers

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp

23

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

74.8 7.4 Yellow sandstone

Yellow gray 5Y7/2 to moderate brown 5YR4/4

planar fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none planar Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational Box 9

82.2 0.8 Yellow sandstone

Yellow gray 5Y7/2 to moderate brown 5YR4/4

planar fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none planar Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational Box 10

83 TD

DH4. 0-9.8 ft. DH4. 9.8-18.6 ft. DH4. 18.6-27.6 ft.

24

DH4. 27.6-36.7 ft. DH4. 36.7-45.4 ft. DH4. 45.4-55.3 ft.

DH4. 55.3-64.9 ft. DH4. 64.9-73 ft. DH4. 73-82.2 ft.

25

DH4. 82.2-83 ft. DH4. Site during drilling. DH4. Reclaimed site (September 22, 2015).

26

Hole id DH5 Preliminary drill hole id DH4 Site Name Apache Mesa (AP Mesa) UTM easting 337732 UTM northing 4059035 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8285 Total Hole Depth (ft) 113 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/21/2015 Completion Date 8/21/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of eastern deposit Summary black sandstone deposit is 0.2 ft thick, Point Lookout Sandstone is 108 ft thick, Mancos Shale at 108 ft Comments most of black sandstone is at the surface Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-9.8 100% DH5-3 (2.8-3.7 ft) sandstone 0-3.3 2 9.82-198 100% DH5-5 (4.8-5.5 ft) black sandstone 3.3-7.3 3 18-27.3 100% DH-7 (7.3-8.1 dt) white sandstone 7.3-20 4 27.3.7-36.2 100% shale 20-27.3 5 36.2-46.2 100% White sandstone 27.3-41 6 46.2-55.2 100% Yellow sandstone 41-108.6 7 55.2-64.4 100% shale 108.6-109.2 8 64.4-73.4 100% Gray sandstone

(carbonate cement) 109.2-113

9 73.4-82.7 100% 10 82.7-91.4 100% 11 91.4-100 100% 12 100-109.2 100% 13 109.2-113 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS very fractured because near mesa edge, 60 cps radioactivity

27

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 2.2 sandstone Yellow gray 5Y7/2

mu to cl

Subrounded to rounded

Moderately well to well

Some (pore)

Upper 6 inch soft, none rest

Slight planar cross beds

Fe, silica (no carbonate)

Quartz, feldspar, few black minerals

none gradational Box 1

2.2 5.1 sandstone Light olive gray 5Y6/1

ml Subrounded to rounded

Moderately well to well

Some (pore)

none Slight planar cross beds

Fe, silica (no carbonate)

Quartz, feldspar, few black minerals

none gradational closeup

7.3 0.2 Black sandstone

Medium gray N5

ml Rounded to subrounded

Well to moderately well

Some (pore)

none Slight planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals (40%)

none gradational Slightly magnetic

7.3 0.8 white sandstone

Light olive gray 5Y6/1

Brown sand inclusions

ml Rounded to subrounded

Well to moderately well

Some (pore)

none light planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

8.1 2.1 White sandstone

Very light gray N8

massive ml to fu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Some (mm)

sharp nonmagnetic

9.8 1.1 White sandstone

Very light gray N8

massive ml to fu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Some (mm)

gradational nonmagnetic Box 2

28

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

10.9 7.1 White sandstone

Yellow gray 5Y7/2 to pale olive 10Y6/2

massive ml to mu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

some gradational nonmagnetic

18 2 White sandstone

Very light gray N8

Few planar cross beds

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

some gradational nonmagnetic Box 3

20 7.3 Layered sandstone and shale

Shale is N7, sand isvVery light gray N8 to pale brown 5YR5/2

laminated uf Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

some gradational nonmagnetic

27.3 9.2 White sandstone

Very light gray N8

Few planar cross beds

cl to cu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

some gradational nonmagnetic Box 4

36.5 4.5 White sandstone

Very light gray N8

massive cl to mu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

some gradational nonmagnetic Box 5

41 5.3 Yellow sandstone

Yellow gray 5Y7/2 to pale yellow brown 10YR6/2

massive mu to ml

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

some gradational nonmagnetic

29

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

46.3 8.9 Yellow sandstone

pale yellow brown 10YR6/2

massive ml to mu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

none Massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

some gradational nonmagnetic Box 6

55.2 9.2 Yellow sandstone

pale yellow brown 10YR6/2 to moderate brown 5YR4/4

Massive to planar crossbeds

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Fe oxidation thin planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

some gradational nonmagnetic Box 7

64.4 9.2 Yellow sandstone

pale yellow brown 10YR6/2 to moderate brown 5YR4/4

Massive to planar crossbeds

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Fe oxidation thin planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Many mm- cm

gradational nonmagnetic Box 8

73.4 9.3 Yellow sandstone

pale yellow brown 10YR6/2 to very pale orange 10YR8/2

Massive to planar crossbeds

fu to ml

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Fe oxidation Planar cross beds to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Many mm- cm

gradational Nonmagnetic, lost circulation due to fractures

Box 9

82.7 4.8 Yellow sandstone

pale yellow brown 10YR6/2 to very pale orange

Massive ml to fu

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Some with hematite

sharp Box 10

30

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

10YR8/2

87.5 3.9 Gray sandstone

Light gray N7 to medium gray N5 to dark gray N3

laminated fu Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Some oxidized Mm laminar beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Some with hematite

gradational

91.4 8.6 Gray and Yellow sandstone

Light gray N7 to medium brown 5YR3/4

laminated fu Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Some oxidized Mm laminar beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Some with hematite

gradational Box 11

100 8.6 Yellow sandstone

Light olive gray 5Y5/2

Massive fu to ml

Rounded to subrounded

Well to moderately well

Some (pore, fracture)

Some oxidized massive Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

some sharp Box 12

108.6 0.6 shale Light gray N7 to dark gray N3

laminated Some (pore, fracture)

Some oxidized Planar laminated mm

some sharp

109.2 8 shale Light gray N7 to dark gray N3

laminated Some (pore, fracture)

Some oxidized Planar laminated mm

some sharp Box 13

112.4 0.6 Gray sandstone

Light gray N7

Coarse grained

mu Subrounded to subangular

Moderately well

Some (pore, fracture)

none Planar cross beds mm

Carbonate Quartz, feldspar, rock fragments

some sharp

113 TD

31

DH5. 0-9.8 ft. DH5. 9.8-18 ft. DH5. 18-27.3 ft.

DH5. 27.3-36.5 DH5. 36.5-46.2 ft. DH5. 46.2-55.2 ft.

32

DH5. 55.2-64.4 ft. DH5. 64.4-73.4 ft. DH5. 73.4-82.7 ft.

DH5. 82.7-91.4 ft. DH5. 109.2-113 ft. DH5. Site before drilling (June 11, 2015).

33

DH5. Site during drilling. DH5. Reclaimed site (September 22, 2015).

34

Hole id DH6 Preliminary drill hole id DH5 Site Name Apache Mesa (AP Mesa) UTM easting 337723 UTM northing 4059200 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8305 Total Hole Depth (ft) 53 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/22/2015 Completion Date 8/22/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of eastern deposit Summary black sandstone deposit is 1.8 ft thick, Point Lookout Sandstone Comments Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-9 98% D5.6 R5.5 DH6-1 (0-0.8 ft) Black sandstone 0-1.8 2 9-18.6 100% DH6-2 (0.8-1.6 ft) White sandstone 1.8-28.1 3 18.6-28.1 100% DH6-3 (1.6-2 ft) Yellow sandstone 28.1-53 4 28.1-36.2 100% DH6-6 (69.-7.1 ft) 5 36.2-45.3 100% 6 45.3-53 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 1.8 Black sandstone

Grayish brown 5YR5/2

massive fu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Top is weathered

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp Slightly magnetic

Box 1

35

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

1.8 0.95 Oxidized white sandstone

Moderate yellow brown 10YR5/4

massive mu to cl

Rounded to subrounded

Well to moderately well

Some (pore)

Oxidized layers

Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

2.8 6.3 White sandstone

light gray N7

massive mu to cl

Rounded to subrounded

Well to moderately well

Some (pore)

none Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

9 9.6 White sandstone

light gray N7

massive ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 2

18.6 5.5 White sandstone

light gray N7

massive cl to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 3

24.1 4 White sandstone

Yellow gray 5Y7/2

Few planar cross beds

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

28.1 1.8 yellowsandstone

pale yellow brown 10YR6/2 to light gray N7

Few planar cross beds

ml to fu

Rounded to subrounded

Well to moderately well

Some (pore)

none Thin layers of 1 inch or less black sandstone

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 4

29.9 6.3 yellow sandstone

Very light gray N7 with pale yellow brown 10YR6/2

Few planar cross beds

ml to fu

Rounded to subrounded

Well to moderately well

Some (pore), few very porous zones

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 5

36

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

36.2 8.1 Yellow sandstone

Light gray N7 to pale yellow brown 10YR6/2

Alternating orange and gray sandstone

ml to fu

Rounded to subrounded

Well to moderately well

Some (pore), few very porous zones

none Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

none gradational nonmagnetic

44.3 1 Yellow sandstone

Yellow gray 5Y7/2

Planar cross beds

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

none gradational nonmagnetic

45.3 7.7 Yellow sandstone

Yellow gray 5Y7/2

Planar cross beds

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic Box 6

53 TD

37

DH6. 0-9 ft. DH6. 9-18.6 ft. DH6. 18.6-28.1 ft.

DH6. 28.1-36.2 ft. DH6. 36.2-45.3 ft. DH6. 45.3-53 ft.

38

DH6. Site before drilling (June 11, 2015). DH6. Site during drilling. DH6. Reclaimed site (August 25, 2015).

39

Hole id DH7 Preliminary drill hole id Site Name Apache Mesa (AP Mesa) UTM easting 337714 UTM northing 4058862 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 265 Total Hole Depth (ft) 43 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/22/2015 Completion Date 8/22/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of eastern deposit Summary black sandstone deposit is 3.5 ft thick, Point Lookout Sandstone Comments black sandstone deposit is at surface, deposit is 3-5 ft above drill hole Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-10.3 85% D5.9 R5 DH7-2 (3.9-4.6 ft) Black sandstone 0-5.9 2 10.3-19.5 100% DH7-1 (3.3-3.9 ft) White sandstone 5.9-34.5 3 19.5-28.2 100% Yellow sandstone 34.5-43 4 28.2-37.3 100% 5 37.3-43 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core, located new hole along road on 8/22/15 in order to sample and determine the thickness of lower portion of black sandstone deposit COMMENTS radioactivity 250 cps (background 30 cps), deposit is 3-5 ft above drill hole

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 2.9 Black sandstone

Moderate yellow brown 10YR5/4

Planar laminated

mu to ml

Rounded to subrounded

moderately well

Some (pore)

Weathered and oxidized

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none gradational Slightly magnetic

Box 1

40

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

2.9 0.6 Black sandstone (red hematite)

Dark yellow brown 10YR4/2 to dusky red 5YR3/4

Planar laminated

mu to ml

Rounded to subrounded

moderately well

Some (pore)

Weathered and oxidized

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, hematite

none gradational Slightly magnetic

3.5 2.4 Black sandstone

Pale green yellow 10YR8/2

Planar laminated

mu to ml

Rounded to subrounded

moderately well

Some (pore)

Weathered and oxidized

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, few black minerals (10%)

none gradational Slightly magnetic

5.9 4.4 white sandstone

Yellow gray 5Y8/1

Planar laminated

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Weathered and oxidized

Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic, top has more black laminations

10.3 9.2 White sandstone

light gray N7

Planar laminated

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar laminated (dark layers)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 2

19.5 8.7 White sandstone

light gray N7

Planar laminated

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar laminated (dark layers)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 3

28.2 6.3 White sandstone

light gray N7

Planar laminated

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar laminated (dark layers)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 4

34.5 2.8 Yellow sandstone

yellow gray 5Y7/2

Planar laminated

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar laminated (dark layers)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

41

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

37.3 5.7 Yellow sandstone

yellow gray 5Y7/2

Planar laminated

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

none Planar laminated (dark layers)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 5

43 TD

DH7. 0-10.3 ft. DH7. 10.3-19.5 ft. DH7. 19.5-28.2 ft.

42

DH7. 28.2-37.3 ft. DH7. 37.3-46.5 ft. DH7. 46.5-53 ft.

DH7. Site during drilling. DH7. Reclaimed site (September 22, 2015).

43

Hole id DH8 Preliminary drill hole id DH6 Site Name Apache Mesa (AP Mesa) UTM easting 337736 UTM northing 4059318 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8315 Total Hole Depth (ft) 53 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/22/2015 Completion Date 8/22/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of eastern deposit Summary black sandstone deposit is 3.2 ft thick, Point Lookout Sandstone Comments radioactivity 50-70 cps Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-10.6 77% D5.7 R4.4 DH8-1 (0-1 ft) Black sandstone 0-3.2 2 10.6-19.8 100% DH8-2 (2.5-2.9 ft) White sandstone 3.2-41.3 3 19.8-28.9 100% Yellow sandstone 41.3-53 4 28.9-37.7 100% 5 37.7-46.5 100% 6 46.5-53 100%

DRILL LOG

LOGGED BY V.T. McLemore, A Robisson SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps), lost recovery

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 3.2 Black sandstone

Moderate yellow brown 10YR5/4

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Top is unconsolidated

Planar laminated, few black cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals, hematie

few gradational nonmagnetic Box 1

3.2 2.5 white sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

44

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

5.7 4.9 White sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

10.6 9.2 White sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 2

19.8 9.1 White sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

Few Fe oxidized layers

planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 3

28.9 8.8 White sandstone

Yellow gray 5Y7/2

mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

few gradational nonmagnetic Box 4

37.7 3.6 White sandstone

Yellow gray 5Y7/2

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

few gradational nonmagnetic Box 5

41.3 5.2 Yellow sandstone

Dusky yellow 5Y6/4

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

none planar laminated to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

46.5 6.5 Yellow sandstone

Dusky yellow 5Y6/4

fu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

none planar laminated to massive

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 6

53 TD

45

DH8. 0-10.6 ft. DH8. 10.6-19.8 ft. DH8. 19.8-28.9 ft.

DH8. 28.9-37.7 ft. DH8. Site before drilling (June 11, 2015). DH8. Site during drilling.

46

DH8. Reclaimed site (September 22, 2015).

47

Hole id DH9 Preliminary drill hole id DH106 Site Name Apache Mesa (AP Mesa) UTM easting 337751 UTM northing 4059458 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8325 Total Hole Depth (ft) 53 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/22/2015 Completion Date 8/22/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose confirmation to determine thickness of eastern deposit Summary black sandstone deposit is 3.5 ft thick, not radioactive, Point Lookout Sandstone Comments Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-9.9 86% D 3.5 R 3 DH9-3 (03-3.5 ft) Black sandstone 0-3.5 2 9.9-19 100% White sandstone 3.5-38.3 3 19-28 100% Yellow sandstone 38.3-53 4 28-37.5 100% 5 37.5-46 100% 6 46-53 100%

DRILL LOG

LOGGED BY V.T. McLemore, A. Robisson SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 3.5 Black sandstone

Dark yellow brown 10YR4/2

massive mu to fl

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

many sharp nonmagnetic Box 1

3.5 6.4 white sandstone

Yellow gray 5Y7/2

massive mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few gradational nonmagnetic

48

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

9.9 9.1 white sandstone

Yellow gray 5Y7/2

massive mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few with black bands

gradational nonmagnetic Box 2

19 9 white sandstone

Yellow gray 5Y7/2

Massive, some planar

mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Planar mm-cm cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few gradational nonmagnetic Box 3

28 5.6 white sandstone

Yellow gray 5Y7/2

Massive mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few gradational nonmagnetic Box 4

33.6 3.4 white sandstone

moderate yellow brown 10YR5/4

Massive mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few gradational nonmagnetic Box 5

37.5 0.8 white sandstone

moderate brown 5Y4/4

Massive mu to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidized Black spotches

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few gradational nonmagnetic

38.3 2.4 yellow sandstone

Dusky yellow 5Y6/4

Massive fl to fu

Rounded to subrounded

Well to moderately well

Some (pore)

none Black spotches

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Few gradational nonmagnetic

40.7 5.3 yellow sandstone

Dusky yellow 5Y6/4

Massive fl to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidation Black spotches

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Few gradational nonmagnetic

49

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

46 7 yellow sandstone

Moderate yellow brown 10YR5/4

Massive fl to fu

Rounded to subrounded

Well to moderately well

Some (pore)

Fe oxidation Black spotches

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Few gradational nonmagnetic Box 6

53 TD

DH9. 0-9.9 ft. DH9. 9.9-19 ft. DH9. 19-28 ft.

50

DH9. 28-37.5 ft. DH9. 37.5-46 ft. DH9. 46-53 ft.

DH9. Site during drilling. DH9. Reclaimed site (September 22, 2015).

51

Hole id DH10 Preliminary drill hole id DH109 Site Name Apache Mesa (AP Mesa) UTM easting 338405 UTM northing 4059065 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8325 Total Hole Depth (ft) 148 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/23/2015 Completion Date 8/23/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose wildcat to determine the eastern extent Summary no black sandstone, Point Lookout is 111.9 ft, Mancos Shale at 111.9 ft Comments Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-11 D 5.6, R4 71% White sandstone 0-11 2 11-19.7 100% Yellow sandstone 11-53.6 3 19.7-29 100% Shale and gray

sandstone 53.6-55.1

4 29-38.4 100% Yellow sandstone 55.1-69 5 38.4-47.6 100% Gray sandstone

(carbonate cement) 69-70.5

6 467.6-56.8 100% Yellow sandstone 70.5-85.2 7 56.8-66 100% Gray sandstone

(carbonate cement) 85.2-87.8

8 66-75.8 100% shale 87.8-90.1 9 75.83-84.3 100% Gray sandstone

(carbonate cement) 90.1-91.2

10 84.3-93.7 100% Yellow sandstone 91.2-96.9 11 93.7-103 100% Gray sandstone 96.9-103 12 103-111.9 100% Yellow sandstone 103-105.1 13 111.9-121.9 100% Gray sandstone

(carbonate cement) 105.1-106.5

14 121.9-130.3 100% Yellow sandstone 106.5-109.6 15 130.3-139 100% Gray sandstone

(carbonate cement) 109.6-110.4

52

Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 16 139-148 100% Yellow sandstone 110.4-111.9 Gray sandstone

(carbonate cement) 111.9-148

DRILL LOG

LOGGED BY V.T. McLemore, A. Robisson SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 30 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 3.7 white sandstone

Medium Yellow brown 10YR5$

massive mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

weathered Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic Box 1

3.7 7.3 White sandstone

Yellow gray 5Y7/2

massive mu to cl

Rounded to subrounded

Well to moderately well

Some (pore)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none gradational nonmagnetic

11 8.7 Yellow sandstone

Pale olive 10Y6/2

Massive with cross beds at base

mu to fu

Rounded to subrounded

moderately well

Some (pore)

none Massive with few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 2

19.7 9.3 Yellow sandstone

Pale olive 10Y6/2

Massive with few cross beds

mu to ml to fu

Rounded to subrounded

moderately well

Some (pore)

none Massive with few planar laminated, mottled

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 3

29 5.7 Yellow sandstone

Pale olive 10Y6/2

Massive ml to fu

Rounded to subrounded

moderately well

Some (pore)

oxidized Massive with few planar laminated, mottled

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 4

53

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

34.7 3.7 Yellow sandstone

Pale olive 10Y6/2 with medium brown layers 5YR3/4, gray N4, 10YR7/4

Planar laminated

ml to fu

Rounded to subrounded

moderately well

Some (pore)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic

38.4 9.2 Yellow sandstone

Pale olive 10Y6/2 to dark yellow brown 10YR4/2

Massive ml to fu

Rounded to subrounded

moderately well

Some (pore)

oxidized Massive Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none gradational nonmagnetic Box 5

47.6 6 Yellow sandstone

Light olive brown 5Y5/6

Massive to planar laminated

ml to fu

Rounded to subrounded

moderately well

Some (pore)

oxidized Massive to planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

none sharp nonmagnetic Box 6

53.6 1.5 Interbedded shale and gray sandstone

Dark gray N3, light olive brown 5Y5/6, sand gray N5

Planar laminated

mu to cl

Rounded to subrounded

moderately well

Some (pore)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

none sharp nonmagnetic

54

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

55.1 1.7 Yellow sandstone

Moderate yellow brown 10YR4/2

Massive to slight planar laminated

ml to mu

Rounded to subrounded

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none gradational nonmagnetic

56.8 9.2 Yellow sandstone

Moderate yellow brown 10YR4/2

Massive to slight planar laminated

ml to mu to fu

Rounded to subrounded

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments, hematite

none gradational nonmagnetic Box 7

66 3 Yellow sandstone

Moderate yellow brown 10YR4/2

Massive to slight planar laminated

ml to mu

Rounded to subrounded

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic Box 8

69 1.5 Gray sandstone

medium gray N6

Massive with minor planar laminated

mu to ml

Subrounded to subangular

Moderately well

none none Planar cross beds at base

Silica, carbonate

Quartz, feldspar black minerals

none sharp nonmagnetic

70.5 4.8 Yellow sandstone

Light olive gray 5Y5/2

Massive ml to fu

Rounded to subrounded

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

75.3 8.9 Yellow sandstone

Light olive brown 5Y5/6

Massive ml to fu

Rounded to subrounded

moderately well

Some (pore)

osidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic Box 9

55

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

84.2 1 Yellow sandstone

Light olive gray 5Y5/2

Massive fl to fu

Rounded to subrounded

moderately well

Some (pore)

osidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic Box 10

85.2 0.5 Gray sandstone

Light gray N7

massive fl to fu

Subrounded to subangular

Moderately well

none none Carbonate, silica

Quartz, feldspar, rock fragments

none sharp nonmagnetic

85.7 2.1 Yellow sandstone

Light olive brown 5Y5/6

Massive fl to fu to ml

Rounded to subrounded

moderately well

Some (pore)

osidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

87.8 2.3 shale Light gray N7 to gray N5

None none Planar laminated

silica (no carbonate)

none sharp nonmagnetic

90.1 1.1 Gray sandstone

Light gray N7

fu to ml

Subrounded to subangular

Moderately well

none none carbonate Quartz, feldspar, rock fragments

none sharp nonmagnetic

91.2 2.5 Yellow sandstone

Light olive brown 5Y5/6

Massive fl to fu to ml

Rounded to subrounded to sunangular

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

93.7 3.2 Yellow sandstone

Light olive brown 5Y5/6

Massive fl to fu to ml

Rounded to subrounded to sunangular

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic Box 11

56

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

96.9 1.2 Gray sandstone

Light gray N7

massive vfu to fl

Rounded to subrounded

Moderately well

none Minor oxidation

carbonate Quartz, feldspar, rock fragments

none gradational nonmagnetic

98.1 4.9 Gray sandstone

Light olive brown 5Y5/2

massive fu to fl to ml

Rounded to subrounded

Moderately well

none none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic

103 2.1 Yellow sandstone

Light olive gray 5Y5/2

Massive fu to ml

Rounded to subrounded

moderately well

Some (pore)

osidized Slight planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic Box 12

105.1 1.4 Interbedded shale and gray sandstone

Medium gray N3 and dark gray N3

laminated ml to mu

Rounded to subrounded

Moderately well

none none Slight planar laminated

Silica (no carbonate)

Quartz, feldspar, rock fragments

none gradational Nonmagnetic, brown sand at base

106.5 3.1 Yellow sandstone

Light olive gray 5Y5/2

Massive fu to fl

Rounded to subrounded

moderately well

Some (pore)

osidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

109.6 0.8 Gray sandstone

Medium gray N3

massive mu to cl

Rounded to subrounded

Moderately well

Some (pore)

none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic

110.4 1.5 Yellow sandstone

Light olive gray 5Y5/2

Massive fu to fl

Rounded to subrounded

moderately well

Some (pore)

oxidized Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

111.9 3 Gray sandstone

light gray N3 to light olive

massive vfu to fl to fu

Rounded to subrounded

Moderately well

Some (pore)

none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic Box 13

57

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

gray 5Y6/1

114.9 4.1 Yellow sandstone

Light olive brown 5Y5/6

Planar laminated

vfu to vfl

Rounded to subrounded

moderately well

Some (pore)

oxidized Planar cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

none sharp nonmagnetic

119 2.9 Gray sandstone

light gray N7

massive vfu to fl to fu

Rounded to subrounded

Moderately well

Some (pore)

none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic

121.9 8.4 Gray sandstone

light gray N7 to light gray N6

massive vfu to fl

Rounded to subrounded

Moderately well

Some (pore)

none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic Box 14

130.3 8.7 Gray sandstone

light gray N7

massive vfu to fu

Rounded to subrounded

Moderately well

Some (pore)

none Slight planar laminated

Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic Box 15

139 9 Gray sandstone

light gray N7

massive vfu to fu

Rounded to subrounded

Moderately well

Some (pore)

none Silica, carbonate

Quartz, feldspar, rock fragments

none gradational nonmagnetic

148 TD

58

DH10. 0-11 ft. DH10. 11-19.7 ft. DH10. 19.7-29 ft.

DH10. 29-38.4 ft. DH10. 38.4-47.6 ft. DH10. 47.6-56.8 ft.

59

DH10. 56.8-66 ft. DH10. 66-75.3 ft. DH10. 75.3-84.2 ft.

DH10. 84.2-93.7 ft. DH10. 93.7-103 ft. DH10. 103-111.9 ft.

60

DH10. 111.9-121.9 ft. DH10. 121.9-130.5 ft. DH10. 130.5-139 ft.

DH10. Site during drilling. DH10. Reclaimed site (September 22, 2015).

61

Hole id DH11 Preliminary drill hole id DH111 Site Name Apache Mesa (AP Mesa) UTM easting 337840 UTM northing 4059780 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8345 Total Hole Depth (ft) 48 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/24/2015 Completion Date 8/24/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose exploration to determine northern extent Summary black sandstone beneath coal, Point Lookout Sandstone Comments Box Depth Interval (ft) Recovery Chemistry Sample Unit Depth interval (ft) 1 0-9.3 70% D5.7 R4 DH11-1 (0.8-1.8 ft) coal 0-0.8 2 9.3-18.4 100% DH11-2 (1.8-2.4 ft) Black sandstone 0.8-1.8 3 18.4-27.8 100% White sandstone 1.8-36.1 4 27.8-37 100% Yellow sandstone 36.1-48 5 37-46.8 100% 6 46.8-48 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 0.8 Coal and shale

Black N1

none weathered sharp Box 1

62

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0.8 0.8 Black sandstone

dusky brown 5YR2/2

masssive mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

none Fe oxide, silica (no carbonate)

Quartz, feldspar, black minerals

none sharp Slightly magnetic

1.8 3.9 Altered white sandstone

Dark yellow brown 10YR4/2

Massive to planar

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Fnone gradational nonmagnetic

5.7 3.6 Altered White sandstone

Pale brown 5YR5/2

Massive to planar

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm gradational nonmagnetic

9.3 9.1 White sandstone

Pale brown 5YR5/2 to yellow gray 5Y7/2

Planar laminated

mu to cl

Rounded to subrounded

moderately well

Some (pore)

oxidized planar laminated, oxidized to black cross beds

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm gradational nonmagnetic Box 2

18.4 9.4 White sandstone

yellow gray 5Y7/2

Planar laminated

mu to cu

Rounded to subrounded

moderately well

Some (pore)

oxidized planar laminated, dark gray to orange (mm)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm gradational nonmagnetic Box 3

27.8 8.3 White sandstone

yellow gray 5Y7/2

Planar laminated

mu to ml

Rounded to subrounded

moderately well to well

Some (pore)

oxidized planar laminated, dark gray to orange (mm)

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm gradational nonmagnetic Box 4

36.1 0.9 Yellow sandstone

Pale olive 10Y6/2

Planar laminated

cl to mu

Rounded to subrounded

moderately well

Some (pore)

oxidized Planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

Very few gradational nonmagnetic

63

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

37 9.8 Yellow sandstone

Light brown olive 5Y5/6

Massive to planar

mu to ml

Rounded to subrounded

moderately well

Some (pore)

Oxidation decreases at base

Planar laminated, more at base

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

none gradational nonmagnetic Box 5

46.8 1.2 Yellow sandstone

Light brown olive 5Y5/6

Massive to planar

mu to ml

Rounded to subrounded

moderately well

Some (pore)

Oxidation decreases at base

Planar laminated, more at base

Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals

none gradational nonmagnetic Box 6

48 TD

DH11. 0-9.3 ft. DH11. 9.3-18.9 ft. DH11. 18.9-27.8 ft.

64

DH11. 27.8-37 ft. DH11. 37-46.8 ft. DH11. 46.8-48 ft.

DH11. Site during drilling. DH11. Reclaimed site (September 22, 2015).

65

Hole id DH12 Preliminary drill hole id DH103 Site Name Apache Mesa (AP Mesa) UTM easting 337369 UTM northing 4059715 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8275 Total Hole Depth (ft) 27 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/24/2015 Completion Date 8/24/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose exploration to determine northern extent of western deposit Summary encountered yellow sandstone, no black sandstone, Point Lookout Sandstone Comments Box Depth Interval (ft) Recovery Unit Depth interval (ft) 1 0-10 100% White sandstone 0-16.2 2 10-19.5 100% Yellow sandstone 16.2-27 3 19.5-27 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 10 white sandstone

Yellow gray 5Y7/2

Massive to planar cross bedded

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized planar laminated, mm black and orange

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Few mm planar

gradational nonmagnetic Box 1

10 6.2 white sandstone

Yellow gray 5Y7/2

Massive to planar cross bedded

mu to ml

Rounded to subrounded

Well to moderately well

Some (pore)

oxidized planar laminated, mm black and orange

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Few mm planar

gradational nonmagnetic Box 2

66

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

16.2 3.3 Yellow sandstone

Light olive brown 5Y5/6

Massive to few planar crossbeds

ml to mu

Rounded to subrounded

Well to moderately well

Some (pore)

oxidixed planar Fe oxide, silica (no carbonate)

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few gradational nonmagnetic

19.5 7.5 Yellow sandstone

Light olive brown 5Y5/6 to pale olive 10Y6/2

massive ml to uf

Rounded to subrounded

Well to moderately well

Some (pore)

Some oxidation at top

Fe oxide, silica (no carbonate), some carbonate along fractures

Quartz, feldspar, hematite, trace black minerals, rock fragments

Very few planar fractures

gradational nonmagnetic Box 3

27 TD

DH12. 0-10 ft. DH12. 10-19.5 ft. DH12. 19.5-27 ft.

67

DH12. Site before drilling (June 11, 2015). DH12. Site during drilling. DH12. Reclaimed site (September 22, 2015).

68

Hole id DH13 Preliminary drill hole id DH101 Site Name Apache Mesa (AP Mesa) UTM easting 337006 UTM northing 4059042 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8190 Total Hole Depth (ft) 88 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/25/2015 Completion Date 8/25/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose exploration to determine extent of western and middle deposits Summary Point Lookout Sandstone is eroded, this is upper Mancos Shale, no black sandstone Comments Box Depth Interval (ft) Recovery Unit Depth interval (ft) 1 0-9.7 98%, D 5.6 R 5.5 Interbedded sandstone,

siltstone, shale 0-18.7

2 9.7-18.7 100% sandstone 18.7-28.6 3 18.7-27 100% coal 28.6-29 4 27-36.3 100% shale 29-39.5 5 36.3-46 100% Coal 37.5-40.7 6 46 -54.1 100% Interbedded sandstone,

coal 40.7-43

7 54.1-63 100% sandstone 43-64.6 8 63-72 100% coal 64.6-65.5 9 72 -81.5 100% Sandstone, coal and

shale 65.5-88

10 81.5-88 100%

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

69

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 4.0 interbedded sandstone, siltstone, shale

Pale yellow brown 10YR5/4, light gray N6

Planar laminated

poor Some (pore, fractures)

Upper 2 ft weathered, oxidized

planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Many vertical fractures filled with clay and hematite

gradational nonmagnetic Box 1

4.0 5.7 sandstone Yellow gray 5Y7/2

Planar laminated

ml to cl

angular to subrounded

poor Some (pore, fractures)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures filled with clay and hematite

gradational nonmagnetic

9.7 9.0 Sandstone with shale interbeds

Yellow gray 5Y7/2

Planar laminated

ml to cl

angular to subrounded

poor Some (pore, fractures)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures filled with clay and hematite

gradational nonmagnetic Box 2

18.7 8.3 Sandstone with shale interbeds

Yellow gray 5Y7/2

Planar laminated

fu to cl angular to subrounded

poor Some (pore, fractures)

oxidized planar laminated, with rip up clasts at top, Fe concretions

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures filled with clay and hematite

gradational nonmagnetic Box 3

27 1 sandstone Light olive brown 5Y5/6

Planar laminated

ml to cl

angular to subrounded

poor Some (pore, fractures)

oxidized planar laminated, spotchy

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures filled with clay and hematite

gradational nonmagnetic Box 4

28 0.6 Fe sandstone

Gray red 5R4/5

broken ml to cl

angular to subrounded

poor Some (pore, fractures)

oxidized planar laminated, spotchy

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures filled with clay and

gradational nonmagnetic

70

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

hematite

28.6 1 coal Black N2 nonmagnetic 29.6 6.7 shale Medium

gray N5, light gray N3

Thinly laminated

nonmagnetic

36.3 1.2 shale Medium gray N5, light gray N3

Thinly laminated

nonmagnetic Box 5

37.5 3.2 coal Black N2 nonmagnetic 40.7 2.3 interbedded

sandstone, siltstone, shale

Gray N5 to N4 to N2

Planar laminated

poor Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Many vertical fractures

gradational nonmagnetic

43 3 sandstone Gray N6 Planar laminated

ml to mu

angular to subrounded

Moderate well

Some (pore, fractures)

none planar laminated, different directions of cross bedding

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic

46 8.1 sandstone Gray N6 Planar laminated

ml to mu

angular to subrounded

Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic Box 6

54.1 8.9 sandstone Gray N6 Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic Box 7

71

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

63 1.6 sandstone Gray N6 Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic Box 8

64.6 0.9 Coal Black N1 gradational nonmagnetic

65.5 2.1 sandstone Yellow Gray 5Y7/2

Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic

67.6 3.5 shale Medium gray N5 to dark gray N4

gradational nonmagnetic

71.1 0.9 sandstone Medium light gray N6

Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic

72 2.3 Sandstone and shale interbedded

Medium light gray N6

Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic Box 9

74.3 7.2 Coal and shale

Black N2 to gray N4

gradational nonmagnetic

81.5 6.5 Sandstone and shale interbedded

gray N4 Planar laminated

ml to mu

subrounded Moderate well

Some (pore, fractures)

none planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, rock fragments

Many vertical fractures

gradational nonmagnetic Box 10

88 TD

72

DH13. 0-9.7 ft. DH13. 9.7-18.7 ft. DH13. 18.7-27 ft.

DH13. 27-36.3 ft. DH13. 36.3-46 ft. DH13. 46-54.1 ft.

73

DH13. 54.1-63 ft. DH13. 63-72 ft. DH13. 72-81.5 ft

DH13. 81.5-88 ft DH13. Site during drilling. DH13. Reclaimed site (September 22, 2015).

74

Hole id DH14 Preliminary drill hole id DH107 Site Name Apache Mesa (AP Mesa) UTM easting 337660 UTM northing 4059628 UTM zone 13 Location assurance GPS Point of location field Location Notes taken at drill rig Weather sunny, warm Ground Elevation (ft) 8358 Total Hole Depth (ft) 150 Method of obtaining elevation topographic map Depth Source driller Diameter (ft) 3 inch Hole path 90 degrees (vertical) Date Started 8/25/2015 Completion Date 8/25/2015 Drilling Company Layne Driller Name Phil Hale Rig Type CS14 Rod size HQ Bit size HQ Bit type Volcan 8 Cased none Water observed no Screened no Completion gel, cement Purpose exploration to determine extent of middle deposit Summary encountered fault, Point Lookout Sandstone is at least 132 ft thick, no black sandstone, Mancos Shale at 132 ft. Comments Box Depth Interval (ft) Recovery Unit Depth interval (ft) 1 0-11.5 40%, D5.7, R2.3 White sandstone 0-11.5 2 11.5-20.5 100% fault 11.5 3 20.5-29 100% White sandstone 11.5-43.5 4 29-38.7 100% Yellow sandstone 43.5-51.8 5 38.7-46.3 100% Shale and Gray

sandstone 51.8-52.6

6 46.3-56 100% Yellow sandstone 52.6-82.5 7 56-65.4 100% Interbedded sandstone,

shale, siltstone 82.5-150

8 65.4-73.2 100% 9 73.2-82.8 100% 10 82.8-92.4 100% 11 92.4-101.9 100% 12 101.9-111 100% 13 111-120 100% 14 120-128.3 100% 15 128.3-138 100% 16 138-146.7 100% 17 146.7-150 100%

75

DRILL LOG

LOGGED BY V.T. McLemore SOP 17 DEVIATION FROM SOP colors determined on wet core COMMENTS radioactivity 50 cps (background 30 cps)

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

0 5.7 white sandstone

Light gray N7 to yellow gray 5Y7/2

Massive with few planar laminated

uf to ml Rounded to subrounded

moderately well

Some (pore, fracture)

Very weathered, mostly soft

few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

many gradational nonmagnetic Box 1

5.7 3.3 White sandstone

Dark yellow orange 10YR6/6 to pale orange 10YR8/2

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

weathered few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

many gradational nonmagnetic

9 2.5 White sandstone

Dark yellow orange 10YR6/6 to pale orange 10YR8/2

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

weathered few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

many gradational nonmagnetic Box 2

11.5 fault 11.5 9 White

sandstone Grayish orange 10YR7/4

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

many gradational nonmagnetic Box 2

20.5 8.5 White sandstone

Pale yellow brown 10YR6/2 to dark yellow orange 10YR6/6

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

many gradational nonmagnetic Box 3

76

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

29 9.7 White sandstone

Pale yellow brown 10YR6/2 to dark yellow orange 10YR6/6

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

many gradational nonmagnetic Box 4

38.7 4.8 White sandstone

Pale yellow brown 10YR6/2 to dark yellow orange 10YR6/6

massive ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized few planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

Less fractured

gradational nonmagnetic Box 5

43.5 2.8 Yellow sandstone

Pale yellow brown 10YR6/2 to dark yellow orange 10YR6/6 to dark brown yellow 5Y6/4

Massive to planar laminated

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals, hematite

Less fractured

gradational nonmagnetic

46.3 5.5 Yellow sandstone

dark brown yellow 5Y6/4

Massive to planar laminated

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

sharp nonmagnetic Box 6

51.8 0.8 Shale with gray sandstone

Gray N4 to N2 to N8

Massive to planar laminated

uf Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

sharp nonmagnetic

77

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

52.6 3.4 Yellow sandstone

Moderate yellow brown 10YR5/4

Mostly Massive

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

gradational nonmagnetic

56 9.4 Yellow sandstone

Moderate yellow brown 10YR5/4

Mostly Massive

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

gradational Nonmagnetic, lost circulation

Box 7

65.4 8.1 Yellow sandstone

Moderate yellow brown 10YR5/4

Mostly Massive

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated, more massive at base

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

gradational Nonmagnetic Box 8

73.5 8.3 Yellow sandstone

Moderate yellow brown 10YR5/4

Mostly Massive

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

gradational Nonmagnetic Box 9

81.8 0.1 White sandstone

Light gray N6

massive vfu Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

gradational Nonmagnetic

81.9 0.6 Yellow sandstone

Moderate yellow brown 10YR5/4

Mostly Massive

ml to mu

Rounded to subrounded

moderately well

Some (pore, fracture)

oxidized planar laminated

Fe oxide, silica (no carbonate)

Quartz, feldspar, trace black minerals

Less fractured

Gradational to sharp

Nonmagnetic

82.5 0.3 Shale with sandstone

Dark gray N3

Planar bedding

ml to mu

Rounded to subrounded

moderately well

none planar laminated

Some carbonate along fractures

Few vertical

Gradational Nonmagnetic

82.8 2.8 Gray shale Gray shale N3 to N5

Planar bedding

Fe oxidized planar laminated

Some carbonate along fractures

Few vertical

Gradational Nonmagnetic Box 10

85.5 1.4 Interbedded shale, gray sandstone, orange

Gray shale N3 to N5, Moderate

Planar bedding

ml to mu

Rounded to subrounded

moderately well

Fe oxidized planar laminated

Some carbonate along fractures

Few vertical

Gradational Nonmagnetic

78

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

sandstone yellow brown 10YR5/4

86.9 5.5 Orange sandstone

Moderate yellow brown 10YR5/4

ml to um

Rounded to subrounded

moderately well

Some (pure)

Fe oxidized Vaguely planar

Some carbonate cement and along fractures

Quartz, feldspar, trace black minerals

Few vertical

Gradational Nonmagnetic

92.4 7.4 Orange sandstone

Moderate yellow brown 10YR5/4

ml to um

Rounded to subrounded

moderately well

Some (pore)

Fe oxidized Vaguely planar

Some carbonate cement and along fractures

Quartz, feldspar, trace black minerals

Few vertical and planar

Gradational Nonmagnetic Box 11

99.8 2.1 Interbedded shale, gray sandstone, orange sandstone

Gray shale N3 to N5, Moderate yellow brown 10YR5/4

Planar bedding

ml to mu

Rounded to subrounded

moderately well

Fe oxidized planar laminated

Some carbonate along fractures

Few vertical

Gradational Nonmagnetic

101.7 0.2 sandstone Pale yellow brown 10YR 6/2

Planar bedding (mm)

uf subrounded moderate Some (pore)

Fe oxidized planar laminated

carbonate Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic

101.9 1.1 sandstone Pale yellow brown 10YR 6/2 to moderate gray N6

Planar bedding (mm)

uf subrounded moderate Some (pore)

Fe oxidized planar laminated

carbonate Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic Box 12

103 6.6 Yellow sandstone

Pale yellow brown 10YR 6/2

Planar bedding (cm)

um to ml

Subrounded to rounded

Moderate well

Some (pore)

Fe oxidized planar laminated

carbonate, Fe, silica

Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic

79

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

109.6 1.4 White sandstone

Moderate light gray N6, pale yellow brown 10YR 6/2

Dendritic, vuggy, fractured

uf Subrounded to rounded

Moderate Some (pore)

Fe oxidized planar laminated

carbonate, Fe, silica

Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic, bioturbated

111 9 Yellow sandstone

pale yellow brown 10YR 6/2

1 ft massive

uf at top to uf to ml at base

Subrounded to rounded

Moderate Some (pore)

Fe oxidized massive carbonate, Fe, silica

Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic, bioturbated

Box 13

120 9.3 Yellow sandstone

pale yellow brown 10YR 6/2

Massive, blocky with splotches

uf at top to uf to ml at base

Subrounded to rounded

Moderate Some (pore)

Fe oxidized massive carbonate, Fe, silica

Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic, bioturbated

Box 14

124.3 3.1 Gray sandstone

Moderate gay N6

Planar cross beds at base

uf Subrounded to rounded

Moderate well

Some (pore)

Planar (mm) carbonate, Fe, silica

Quartz, feldspar, trace black minerals

none Gradational Nonmagnetic

127.4 0.6 Yellow sandstone

pale yellow brown 10YR 6/2

Massive ml Subrounded to rounded

Moderate Some (pore)

Fe oxidized Planar (mm) carbonate, Fe, silica

Quartz, feldspar, trace black minerals, rock fragments

none Gradational Nonmagnetic

128 0.6 Yellow sandstone

pale yellow brown 10YR 6/2

Massive ml Subrounded to rounded

Moderate Some (pore)

Fe oxidized Planar (mm) Fe, silica Quartz, feldspar, trace black minerals

Few at angle

Gradational Nonmagnetic Box 15

128.6 1.4 Gray sandstone

Moderate gay N6

massive fu Subrounded to rounded

Moderate well

Some (pore)

Planar (mm) carbonate, Fe, silica

Quartz, feldspar, trace black minerals

none Gradational Nonmagnetic

80

Depth (ft)

Interval (ft)

Lithology Color Texture Grain Size

Grain Shape

Sorting Porosity Alteration/ weathering

Sedimentary structure/ orientation

Cementation Mineralogy Fractures Contact of lower unit

Comments Photograph

130 2 Yellow sandstone

pale yellow brown 10YR 6/2

Massive ml Subrounded to rounded

Moderate Some (pore)

Fe oxidized Planar (mm) Fe, silica Quartz, feldspar, trace black minerals, rock fragments

Few at angle

sharp Nonmagnetic

132 5 Gray shale and sandstone interbedded

Gray shale N6 to N4 to /n3

Planar bedding

fu Subrounded to rounded

Moderate Some (pore)

Fe oxidized planar laminated

Some carbonate along fractures

Quartz, feldspar, trace black minerals, rock fragments

Few vertical

Gradational Nonmagnetic

137 1 Gray sandstone

Moderate gay N7

massive fu Subrounded to rounded

Moderate well

Some (pore)

none massive carbonate, Fe, silica

Quartz, feldspar, trace black minerals

none sharp Nonmagnetic

138 1 Gray shale N7 planar carbonate, Fe, silica

Quartz, feldspar, trace black minerals

none sharp Nonmagnetic Box 6

139 1 orange sandstone

moderate brown 5YR 4/4

Massive fu Subrounded to rounded

Moderate well

Some (pore)

Fe oxidized Planar (mm) Fe, silica, carbonate

Quartz, feldspar, trace black minerals, rock fragments

none sharp Nonmagnetic

140 3.7 Interbedded gray shale and sandstone

N5 to N7 planar fu Subrounded to rounded

Moderate well

Some (pore)

Planar (mm) Fe, silica, carbonate

Quartz, feldspar, trace black minerals, rock fragments

none sharp Nonmagnetic

146.7 3.3 Gray sandstone

Moderate gay N5

massive fu Subrounded to rounded

Moderate well

Some (pore)

none planar carbonate, Fe, silica

Quartz, feldspar, trace black minerals

none sharp Nonmagnetic Box 7

150 TD

81

DH14. 0-11.5 ft. DH14. 11.5-20.3 ft. DH14. 20.3-29 ft.

DH14. 29-38.7 ft. DH14. 38.7-46.8 ft. DH14. 46.8-56 ft.

82

DH14. 56-65.4 ft. DH14. 65.4 -73.5 ft. DH14. 73.5-82.8 ft.

DH14. 82.8-92.4 ft. DH14. 101.4-111 ft. DH14. 111-120 ft.

83

DH14. 120-128.3 ft. DH14. 138-146-7 ft. DH14. Site before drilling (June 11, 2015).

DH14. Reclaimed site (September 22, 2015).

84