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Operating Plan & Due Diligence Package

www.blackstonemine.com

October, 2017

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To whom it may concern:

Thank you for your interest in Blackstone Mining Company, Ltd. This due diligence package is designed to help you assess our business and operations, and determine whether an investment in the Company is appropriate for your portfolio. The package covers a broad number of topics typically requested by investment advisors when they are conducting due diligence into green energy projects similar to the Blackstone.

In 2005, scientists developed the so-called SOLZINC method for storing solar energy in zinc powder, creating a continuous cycle for the production of hydrogen fuel. Building on the success of that project, Blackstone has designed its own patent-pending technology for the production of hydrogen directly from zinc ore. We plan to use the massive zinc deposit at our wholly owned mining property in southern Idaho to commercialize the proven science of SOLZINC for emissions-free production of hydrogen and recovery of commercial amounts of silver, copper, and gold as a by-product.

As one of the largest properties in Idaho’s Volcano Mining District, the Blackstone contains proven and probable ore reserves valued at $618 million as of August 2017. In October 2016, the United States Geological Survey (USGS) assigned the Blackstone its highest ranking as a ‘high probability’ mineral deposit containing major polymetallic values of zinc, silver, copper, lead, and gold. Several prominent geologists believe the property’s mineral deposits extend more than a mile below the current workings. These include Idaho Inspector of Mines Robert N. Bell, who published an article describing the Blackstone as bearing a “blood relationship” to the famed Butte, Montana mining district.

The mine occupies a long and prominent place in Idaho history. The 100-acre property was originally patented by former Idaho Governor James H. Hawley in the name of Blackstone Mining Company, Ltd., which has owned the property continuously since 1903. The mine is owned 100 percent in fee simple title, free and clear of all encumbrances. For ease of reference in this packet, Blackstone Mining Company, Ltd. will be referred to as “Blackstone” or “the Company.” The mine itself will be referred to as “the Property.”

If you have further questions after reviewing this packet, please do not hesitate to contact us.

Sincerely,

James Hawley, President jimh@blackstonemine.com

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Contents

1. Executive Summary of Business (Full plan and Financials, page 70)....................................................... 4 2. Names of business owners and percentage of ownership ........................................................................ 5 3. Type of Funding and Secured Debenture Offering ................................................................................ 5 4. Employer identification number............................................................................................................. 5 5. Business address and contact information ................................................................................................ 5 6. Certificate of incorporation (Exhibit A) ................................................................................................... 6 7. Articles of organization and business licenses ....................................................................................... 6 8. Number of years in business ................................................................................................................. 6 9. Authorized shares .................................................................................................................................. 6 10. Percentage of equity offered ...................................................................................................................... 6 11. Type of funding requested ......................................................................................................................... 7 12. Length of investment ............................................................................................................................. 7 13. Return on investment ............................................................................................................................ 7 14. Annual revenue ..................................................................................................................................... 7 15. Third parties .......................................................................................................................................... 7 16. Principals’ investment ................................................................................................................................. 7 17. Other potential funding sources ............................................................................................................ 8 18. Market, revenue potential, and projected growth rate ......................................................................... 8 19. Management team .............................................................................................................................. 12 20. Labor force ................................................................................................................................................ 14 21. Risk factors .......................................................................................................................................... 14 22. Minimizing risk .................................................................................................................................... 19 23. Competition ............................................................................................................................................... 20 24. Competitive advantages ............................................................................................................................ 21 25. Intellectual property ................................................................................................................................. 21 26. Break-even point ................................................................................................................................. 21 27. Exit strategies ...................................................................................................................................... 21 28. Use of proceeds ......................................................................................................................................... 21 29. Methodology for determining market potential, sales, and growth ...................................................... 21 30. Unique selling proposition ........................................................................................................................ 21 31. Growth potential ....................................................................................................................................... 22 32. Customer acquisition strategy .................................................................................................................. 23 33. Customer retention strategy .................................................................................................................... 24 34. Customer satisfaction metrics .................................................................................................................. 24 35. Alliances and partnerships .................................................................................................................. 24 36. Legal proceedings ...................................................................................................................................... 24

Exhibit A: Incorporation documents, amendments, and 2016 annual report ............................................. 25 Exhibit B: Authorization letters to Messrs. Maillard and Liu .............................................................................. 30 Exhibit C: Provisional Patent Application ........................................................................................................ 32 Exhibit D: Recent sales of comparable properties ...................................................................................... 42 Exhibit E: Schematic of the Company’s zinc-to-hydrogen conversion technology ........................................ 43 Exhibit F: Robert N. Bell, Another Butte in Southern Idaho? ....................................................................... 44 Exhibit G: Blackstone Mining Company Business Plan and Financial Statements ....................................... 54

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1. Business planThe Company’s complete business plan and financial statements are attached as Exhibit G.

Executive summary Blackstone Mining Company, Ltd. (“Company” or “Blackstone”) has developed a disruptive technology (Pat. Pend.) for converting zinc ore to hydrogen fuel. The Company plans to install a solar- and hydrogen-powered pilot processing facility at its wholly owned Blackstone Mine property (“Property”) in southwestern Idaho. The results will be used to further develop hydrogen fuel production on-site and at other locations. When used on- site, the technology also recovers copper, lead, silver, and gold as a byproduct of the zinc-to-hydrogen reaction. A schematic of the Company’s process will be found in Exhibit E.

The Property’s known hydrogen- compatible ore inventories and leach grade ore total $618 million, excluding the value of hydrogen: • 30,000 tons of stockpiled ore

($41.2 million)• Proven ore reserves ($67.6

million)• Probable ore reserves ($355

million)• Proven leach grade reserves

($154.2 million)When fully deployed, the zinc-to- hydrogen conversion technology is projected to extend reserve values to at least $1.3 billion.

Project highlights

• Ore reserves capable of producing an estimated $1.3 billion in hydrogen and metals• Recovery of copper, lead, silver, zinc powder, zinc oxide, and gold as a by-

product of on-site hydrogen production at the Blackstone• Easily accessible stockpile and reserves with minimal excavation required• Clean, inexpensive production of hydrogen from zinc ore, zinc oxide, and zinc powder• Environmentally friendly, emission-free production of hydrogen• Reusable zinc oxide byproduct for continuous production of hydrogen• Portable production technologies for economical off-site hydrogen production• Blackstone green hydrogen is an excellent alternative to burning fossil fuel.

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2. Names of business owners and percentage of ownershipBlackstone Mining Company, Ltd. is an Idaho Corporation and is wholly owned by the Hawley Family Trust. Pursuant to a resolution approved by the board of directors on June 24, 2016, the authorized capital was increased to 50,000,000 shares of which 12,000,000 shares have been issued to the Trust. As of the date of this due diligence package, the only shares issued and outstanding have been issued to the Trust. The Trust members are: Jim Hawley, Marilyn Green, Christopher Hawley, and Kaili Hawley.

3. Type and amount of funding offeredThe Company seeks to privately place five $2,000,000 five year secured convertible debentures which in the aggregate total $10,000,000. Each debenture returns 6% per annum together with 2% of the Company’s net sales of Hydrogen, Copper, Silver, Lead, Zinc, and Gold. Debenture interest and income percentage are paid semi-annually with the debenture principal paid at maturity.

At any time during the debenture term the holder may convert to 400,000 shares of Blackstone common stock together with a three year purchase warrant entitling the holder to purchase a like amount of shares at $5 per share.

Each debenture is secured by a Deed of Trust on one of the five twenty acre parcels that comprise the 100 acre Blackstone mine complex which the Company owns in fee simple title free and clear of all encumbrances.

4. Employer identification number81-3281047

5. Business address and contact informationBlackstone Mining Company, Ltd. Attention: Jim Hawley, President 22522 Kellerman Drive, NE Kingston, Washington 98346

Voice: 702.204.7699 Email: jimh@blackstonemine.com Web: www.blackstonemine.com YouTube: https://www.linkedin.com/company/10776820 Facebook: https://www.facebook.com/blackstonemining/ EquityNet: https://www.equitynet.com/c/blackstone-mining-company-ltd

Registered Agent and Address Pamela H. Davis 521 Brundage Dr. McCall, Idaho 83638

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6. Certificate of incorporationSee Exhibit A.

7. Articles of organization and business licensesSee Exhibit A.

8. Number of years in businessBlackstone Mining Company, Ltd. was incorporated under the laws of the State of Idaho by former Idaho Governor James H. Hawley on December 15, 1899. The Company was reincorporated under the same name as the successor-in-interest on August 28, 1987.

9. Authorized sharesPursuant to a resolution approved by the board of directors on June 24, 2016, the authorized capital was increased to 50,000,000 shares of which 12,000,000 shares have been issued to the Hawley Family Trust. As of the date of this due diligence package, the only shares issued and outstanding have been issued to the Trust.

10. Percentage of equity offeredIf the debentures described in section 3 are converted to equity and the purchase warrants fully exercised a single $2,000,000 debenture represents 800,000 shares of Blackstone common stock or 5% of the then issued and outstanding stock . The Company does not offer preemptive rights on any of its common voting stock.

The Company projects it will be ready for an Initial Public Offering (IPO) within three year of commencing operations. We anticipate a minimum offering of 3,000,000 shares at an offering price of $10 per share. Based on an IPO price of $10 per share a single debenture together with the warrants fully exercised would be valued at $8,000,000.

In arriving at a projected IPO of $10 per share, the Company has applied a forward price-to- earnings multiplier of $0.77 to the current price-to-earnings ratios for related industry segments to arrive at a mean P/E as follows:

Agricultural chemicals .................................................................. 20.60 Chemicals ..................................................................................... 19.60 Basic materials ................................................................................... 7.50 Copper/gold/silver ........................................................................... 17.10 Oil & gas refining .......................................................................... 12.20 Average P/E ............................................................................. 12.83

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11. Type of funding requestedFive (5), $2,000,000 five year six percent (6%) convertible secured debentures (see sections 3 and 10).

12. Length of investmentFive-years unless converted prior to maturity (see sections 3 and 10).

13. Return on investmentEach debenture returns six percent (6%) simple interest per annum. The holder can expect to earn $600,000 if held to maturity along with two percent (2%) of the Company’s annual net earnings.

In the event the holder converts the debenture to equity and the Company has a successful IPO at an estimated $10 per share the holder together with the exercise of the attached purchase warrants could realize in excess of $8,000,000 on a single debenture assuming the underwriter of the IPO registers all of the investors shares and the entire position is liquidated.

14. Annual revenueThe company is in the pre-revenue stage of development (see Pro-Forma cash flow).

15. Third partiesThe Company has not entered into any alliances, partnerships, agency agreements, joint ventures, or any other type of formal or informal joint organization with any third parties. As noted in Section 17, the Company has executed letters of authorization to Mr. Eugene Maillard, Beverly Hills, California, and Mr. Frank Liu, New York, New York, authorizing them to seek funds on behalf of the company, with the express written understanding that the Company’s board of directors retains the exclusive right to accept or reject any funding offers, in whole or in part, in its sole discretion.

16. Principals’ investmentApproximately $3,400,000 has been invested in the Property and its hydrogen-compatible reserves since 1981. This figure includes:

• 1981-1983: $1,400,000 invested by family and friends (Circa/Silver Chief)• 1984-1987: $1,600,000 two public and private placement offerings (Hambro and

Richwell Resources)• 1989-1990: $500,000 private placement (Hanover Guaranty Insurance Company)

Adjusted for inflation the sums invested by the principals and their network exceed $10,000,000

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17. Other potential funding sourcesThe Company is preparing two equity offerings:

• Regulation 506(c) for accredited investors• Regulation CF for the general public. Solicitations will be made over the Internet through

an authorized FINRA portal.

The Company has executed two letters of authorization to Eugene Maillard, Beverly Hills, CA. and Frank Liu, New York, NY authorizing them to seek funds on behalf of Blackstone.

The Company has been approached twice by Mr. Altan Erdemir, Director at Naseba, with offers to participate in investor presentations in China, both of which the Company has declined.

18. Market, revenue potential and projected growth rateThe Company’s target markets in the US for off-site hydrogen production and sales include 137 oil refineries, 132 ammonia and fertilizers manufacturing plants, and 420 industrial gas distributors. The Property’s southwest Idaho location makes it an excellent choice for distributing hydrogen for agricultural use.

The Company’s primary markets are in: • Matte bullion sales• Zinc oxide• Hydrogen production• Oil refining• Utility power generation• Electronics manufacturing• Ammonia manufacturing• Mining• Luminous paints• Food and beverage• Miscellaneous hydrogen markets

Matte bullion sales Initially the polymetallic copper, silver, gold, and lead bars produced as a by-product of the zinc- to-hydrogen process will be either sold or refined under custom smelting agreements with processors such as Asahi Refining, Salt Lake City, Utah (formerly Johnson-Matthey), Teck Resources, Trail, BC (formerly Cominco), ASARCO, Hayden, Arizona or smaller base and precious metals refiners in the region, depending on the most lucrative terms.

The Company can further refine matte bullion on site, separating the precious metals from the base metals and marketing the metallic components separately. During initial operations, however, we believe off-site custom refining agreements will be more advantageous.

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Zinc oxide While we anticipate almost all of the zinc oxide that precipitates from the hydrogen production phase will be used for the off-site production of hydrogen (zinc hydrolysis), zinc oxide could also be sold directly to any of the 420 chemical distributors in the US, such as UINVAR (Van Water & Rogers) , EMCO, LinTech or Nexeo.

With the addition of a homogenizer to the processing circuit, the zinc-to-hydrogen circuit could produce nanoparticle, reagent-grade zinc oxide that could be sold through distributors such as Sigma-Aldrich, Fisher Scientific, or Avantor Performance Materials at substantially higher prices.

Hydrogen production In the zinc ore fuming phase of the hydrogen production cycle, excess hydrogen will be designated as “direct delivery” for marketing to customers in the agricultural, fertilizer production, semi-conductor, petroleum refining, metals fabrication and finishing, and precious metals refining industries within a 300-mile radius of the Property. The area designated as the direct delivery market results from Department of Transportation (DOT) limitation for hauling hydrogen on US highways.

For example, hydrogen costs about $19 per kilogram delivered. The DOT weight limit for hauling hydrogen is 768Kg or $14,600 per semi-truckload. The estimated cost per ton-mile for hydrogen delivery is $9.65 or about $2,900 for a delivery of 300 miles, resulting in a minimum gross profit within the Company’s delivery radius of $11,700. The available profit allows the Company to undercut competing industrial gas distributors in the delivery area.

Potential hydrogen customers within the direct delivery area include Micron Technology, Hewlett-Packard, JR Simplot Company, Ore-Ida Foods, Idaho National Laboratory, Norco, Big West Oil, Chevron, Tesoro, Holly Frontier, and Silver Eagle Refining.

Using Blackstone zinc hydrolysis reactors for off-site hydrogen production lowers the delivery cost to an estimated $0.42 per ton-mile. This is because a semi-tractor trailer can legally transport up to 20 tons of zinc powder for producing hydrogen at remote locations throughout the western United States, significantly broadening the market for Blackstone hydrogen.

Oil refining Refineries use hydrogen to lower the sulfur content of diesel fuel. Refinery demand for hydrogen has increased as sulfur-content regulations have become more stringent. Much of the growth in hydrogen use at refineries is being met through hydrogen purchased from merchant suppliers rather than from increased hydrogen production on-site at the refinery.

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Hydrogen treatment processes in oil refineries include: • Hydrodesulphurisation: Sulphur compounds are hydrogenated to hydrogen sulphide• Hydroisomerisation: Normal paraffins are converted into isoparaffins• Dearomatisation: Aromatics are hydrogenated to cycloparaffins or alkanes• Hydrocracking: Long-chain hydrocarbons are cracked to shorter chains in the gasoline

range

Utility power generation The United States, China, and the European Union are world’s largest emitters of global warming gases, primarily from the burning of fossil fuels. Numerous government agencies as well as private industry are actively investing in alternative fuel for the generation of electrical power. Blackstone zinc powder and the Company’s remote hydrolysis reactors offer an economical solution for replacing diesel and coal-fired electrical generation.

Electronics manufacturing Semi-conductor manufacturers use hydrogen for the deposition of silicon and silicon germanium, as well as for surface preparation. Hewlett-Packard (printer division) and Micron Technology, leading producers of computer memory modules and semi-conductor circuits, are located about 90 miles from the Blackstone in Boise, Idaho. Significant additional volumes of hydrogen will be needed for extreme ultra violet lithography (EUVL) as the semi-conductor industry transitions to 450mm wafers.

Ammonia manufacturing Ammonia is one of the most highly produced inorganic chemicals where hydrogen is combined with nitrogen to produce ammonia via the Haber-Bosch process.

Mining Mining is particularly well suited to vehicles powered by the hydrogen fuel used in locomotives, loaders, underground drilling, electrical generation, ventilation, mucking equipment, and more. Zero emissions, low noise, high-power density, low temperature and pressure operation and component durability are well matched to underground and open-pit applications.

Luminous paints Luminous paint gives off light through fluorescence, phosphorescence, or radioluminescence. Luminous paints use a radioactive isotope of hydrogen that emits very low-energy beta radiation.

Food and beverage Hydrogen is commonly used in vegetable oil processing to remove carbon-carbon double bonds, resulting in a solid or semisolid fat. Hydrogenation results in a longer shelf life with more culinary flexibility.

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Other hydrogen markets In addition to the foregoing, the Company believes it has ready markets in: • Agriculture• Alternative fuels• Ammonia Manufacturing• Biotechnology• Electronics manufacturing• Food and beverage• Fuel cells• Glass• Metals production/finishing• Mining• Paints• Petrochemicals• Petroleum refining• Pharmaceuticals• Plastics• Rocket fuel• Rubber• Utility power generation• Welding

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19. Management teamJames Hawley, President & Director Mr. Hawley is extremely knowledgeable about the Blackstone, having served as an officer and director of the publicly traded entity that operated the Property under lease from 1984 to 1988. During his tenure he structured two public offerings that provided over $4 million for drilling and pit development. He also managed the lessee’s securities aftermarket from its beginnings as a penny stock to market highs above $3.00.

During the period Mr. Hawley was also intricately involved in both hydrometallurgical and pyrometallurgical pilot scale milling focusing on the recovery of the silver and copper values in the Blackstone ore. His experience in the early 1980s with Blackstone ore tests at Kennecott Copper, a working relationship with the US Bureau of Mines in Salt Lake City, and study of the European Union SolZinc project are the foundation of Blackstone’s zinc ore to hydrogen patent pending process.

Mr. Hawley’s specific expertise and knowledge of the Blackstone and the zinc to hydrogen technology uniquely qualifies the Hawley Family Trust to choose a team of qualified geological, engineering, and chemical professionals to manage the project.

His business experience includes positions as an executive officer and director of two publicly traded corporations, director of operations in the restructuring of two international insurance companies, a real estate developer specializing in the construction of planned unit developments, and CEO of a privately held multi-state broadband distribution enterprise.

Mr. Hawley is also an experienced senior computer technology executive skilled in the design, development, and distribution of nationwide IPTv digital video networks and software for the hospitality and multi-family housing industries.

A pioneer in On-Demand Television including the establishment of the initial digital encoding and secure distribution standards for feature length films in association with the Motion Picture Association of America (MPAA). He also has particular expertise in the licensing of feature- length films from the major motion picture studios and the syndication of television programming across major US broadcast networks.

Mr. Hawley is fluent in a number of computer programming and database languages, including Pascal, DOS, HTML, PHP, SQL, MySQL, Java, and Embarcadero Delphi® integrated development environments. He is skilled in the installation and configuration of Microsoft® network servers, Windows operating systems, Payment Card Industry secure payment processing systems, digital video production, including the coding and distribution of native computer, Web, and mobile software applications.

Mr. Hawley attended Seattle University for four years, with an additional year at Boise State University, majoring in political science and journalism. He also studied French language and culture as an exchange student at Cité Internationale Universitaire de Paris, and metallurgical science at the U.S. Bureau of Mines Laboratory on the University of Utah campus.

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Marilyn Green, Secretary/Treasurer & Director Ms. Green is highly knowledgeable about the Property, having served as an officer and director with Mr. Hawley for the previous lessee. She has extensive experience in the securities industry and in risk management assessment, working with Mr. Hawley to reorganize two international insurers writing reinsurance, specialized risks, and surplus lines coverage.

As an NASD-licensed Financial Principal, Ms. Green served as managing executive for Royal Alliance, a SunAmerica Company and member of the New York Stock Exchange. She held previous brokerage positions with The William J. Green Company and Paulson Investment Company.

Kaili Anne Hawley, Director Ms. Hawley has a strong background in marketing, with experience as marketing manager for Cal-Med in Newport Beach, California; clinical informatics specialist with Saint Alphonsus Health System in Boise, Idaho; Kareo Health Systems, Irvine, California; Palomar Health, San Diego, California; and as a consultant for Medicare Services Meaningful Use implementation for hospitals and clinics in southern California. She holds a B.A. in communications and an M.A. in organizational management and international business from Antioch University.

Christopher Hawley, Director Mr. Hawley is the principal of Hawley + Associates, a marketing practice he founded in 1984. His major clients have included Oregon Steel, Ore-Idaho Foods, J.R. Simplot, and Boise Cascade, as well as numerous small and professional service businesses. Prior to launching his consulting practice, he was an instructor in communication and political science at Boise State University and the University of Idaho.

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20. Labor forceThe automated materials handling and electric kiln operation are not labor intensive. The processing circuit can be operated with a four-person daytime staff, plus a manager and three additional workers for reloading the kilns on the night shift. There are a number of communities within a 15- to 80-mile radius of the mine, including Boise, Idaho (metro population 700,000) that have sufficient skilled labor pools.

A professional chemist with extensive experience in thermochemical reactions will manage production. Executive management will manage the Company’s finances and administrative duties, negotiate and administer sales of hydrogen and precious metals, and provide on-site oversight of hydrogen production.

The pilot plant is expected to operate 22 days per month. During downtime, the circuit will be idled for maintenance, inspections, and repairs. The initial operating season is expected to last from mid-March through the end of November and extended to the entire year thereafter. Although Elmore County does not maintain County Road 68, which intersects the proposed processing plant during the winter, the Company is authorized to plow the road at its own expense.

21. Risk factorsHydrogen production and Ore processing involve significant financial risks that even a combination of careful evaluation, experience, and knowledge cannot eliminate. As such, investment in the Company entails a high degree of risk and is suitable only for sophisticated persons of substantial financial means who have no need of liquidity in their investments, and who fully understand and are capable of bearing the risks of an investment in the Company, up to and including a complete loss of their investment.

Investors should recognize that the risk factors set forth below are those that, at the date of this due diligence package, seem to the Company the most likely to be significant. Prospective purchasers must realize, however, that factors other than those set forth below may ultimately affect the investment in a manner and to a degree that cannot be foreseen. The order in which the following risks are presented is not intended to represent the magnitude of the risks described.

1. Ore stockpile values may be significantly lower than expected. While we have no reason todoubt the veracity of the historical data we have compiled from prior operators, it is possiblethat the overall values may be considerably lower than estimated. Lower stockpile values willhave a negative effect on the return on your investment. Historical data from prior miningoperations is not a guarantee that we will successfully recover the metallic values in the orestockpile, or that such processing will be profitable.

2. Ore stockpile may contain less volume than expected. In the event the ore stockpile doesnot provide a sufficient amount of feed ore with economically acceptable metallic values theCompany would be forced to process ore from two secondary stockpiles, mine additional orefrom the pit or previously identified ore zones. While we do not believe providing 15 tons ofore per day with sufficient values to sustain a profitable operation is a material

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factor, the time involved to reposition crushing, loading, and haulage equipment could adversely affect profits for an indeterminate period of time.

3. Geochemical components in the stockpiled ore may restrict or curtail the ore processingand hydrogen production. A number of attempts to process the Blackstone ore using hydro-metallurgical circuits have failed to achieve any measure of economic success. The exceptionbeing the production of copper sulfate and electrolytic zinc dilute sulfuric leach displayingsome limited success. In the case of the latter the most of the precious metals remained inthe tailings while small levels of Palladium in the electrolyte caused the metallic zinc toeventually bond to the anodes stifling production. The prior results indicate the Blackstoneore mined in the 1980’s is not as oxidized as the mineralogy suggests, such as native silverand gold intertwined in the lattice of partially oxidized chalcopyrite.

Pyrometallurgy (smelting) is the only method that has demonstrated near-full recovery ofthe metals in Blackstone ore as in the case demonstrated by the Kennecott smelting tests.While smelting ore literally dates back centuries the selection of techniques, reagents,temperature, oxidation control, equipment, and other variables can significantly affectrecovery results. A certain amount of trial and error will be required to fine-tune thepyrometallurgy circuit to achieve optimum recovery, which could adversely affect the timingfor a return on your investment.

4. We will depend on third-party refiners for processing. We plan to market our copper, gold,and silver matte to third-party refineries in the United States. We presently do not havesmelting contracts with any of these refineries. If and when such contracts are in place, theloss of any single refinery could have a material adverse effect if alternative refineries areunavailable. We cannot assure you that alternative refineries will be available as the needarises, or that such refineries would offer sufficiently attractive terms for their services. Ineither event, we could experience delays or disruptions in sales that would materially andadversely affect operations.

We expect to market the zinc component of the Blackstone ore as an oxide to increase itsmarket value and allow us to use single-pass processing. While we believe there are anumber of viable markets for the sale of zinc oxide (ZnO) we do not have a sales contract inplace. The time involved in securing such an agreement with acceptable terms or developingan alternate processing method for the zinc in the ore would have a materially adverseeffect on our profitability and your investment.

5. Access to the Property may be restricted due to location and weather conditions. Althoughthe Property is accessible by a road maintained by Elmore County at a relatively lowelevation, the area is subject to snow in the winter. While we plan to operate nine months ofthe year, unseasonable weather conditions could hamper access to our facilities. As a result,processing of the ore stockpile could be delayed at times. Such delays could affect ouranticipated business operations.

6. If we successfully process hydrogen, copper, zinc, lead, silver, gold or other metals we maystill be unable to achieve profitability. Even if commercial quantities of metals are processed,there can be no assurance that a ready market will exist for the sale of the metals. Numerousfactors beyond our control may affect the marketability of any the metals we recover,including:

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a. Market fluctuationsb. Proximity and capacity of markets and processing equipmentc. Government or market regulations, including environmental protection

The exact effect of these factors cannot be accurately predicted, but any combination of them could result in our not receiving an adequate return on invested capital.

7. Our operations may be adversely affected by hazards associated with the mining industry,some of which may not be fully covered by insurance. Ore processing and hydrogenproduction involves significant production and operational risks, including those related to:

a. Unexpected geochemical ore componentsb. Difficulty in recovery of gas and metalsc. Interruptions due to inclement weather or unfavorable climate conditionsd. Equipment or service failurese. Delays in installing and commissioning plants and equipmentf. Environmental hazardsg. Industrial accidentsh. Labor disputes

8. Our performance may be subject to variations in the prices of hydrogen, gold, silver, andother minerals. Our revenues will primarily be derived from the sale of hydrogen, copper,zinc, silver, and gold and to a lesser extent, lead, and manganese. As a result, our earningswill be directly related to the prices of these metals. Silver and gold prices are particularlyvolatile. For example, during 2013 the price of silver ranged from a high of $32.58 per ounceto December, 2016 prices in $17.00 per ounce range,1 and the price of gold ranged from ahigh in excess of $1,700 per ounce to December, 2016 range of about $1,248.60 per ounce.2

In contrast, copper prices ranged between $3.38 and $3.32 per pound and zinc averaged$0.17 per pound over the same period.

9. Metals prices, particularly gold and silver, are affected by many factors beyond ourcontrol. These factors include, but are not necessarily limited to:

a. Expectations for inflationb. Speculationc. Relative exchange rate of the U.S. dollard. Global and regional demand and productione. Global political and economic conditionsf. Production costs in major producing regionsg. Bullion sales by private and government holdersh. Interest ratesi. Returns on other asset classesj. Currency values

The profitability of mineral processing could be significantly affected by changes in the market price of the relevant minerals. In recent decades, there have been periods of both worldwide overproduction and periods of worldwide underproduction of many mineral

1 As reported by Handy and Harman. 2 As reported by the London Metal Exchange.

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commodities. A surplus or a shortage of any metal can result in significant price change for the various commodities. The lower the price of metals, the more difficult it is to make a profit. Because our processing costs are relatively fixed, the lower the market price of gold, silver, and other metals, the greater the chance we would have to idle our operations.

10. We expect to operate at a loss for the foreseeable future. We expect to incur losses untilsuch time we market recovered metals from the Blackstone ore stockpile sufficient to fundcontinuing operations. The development of our processing circuit will require thecommitment of substantial resources for operating expenses and capital expenditures,which may increase in subsequent years if we add personnel and equipment necessary toincrease production. The amounts and timing of expenditures will depend on a number offactors, many of which are beyond our control, including:

a. Progress of ore stockpile processingb. Results of engineering analyses and recommendationsc. Rate at which operating losses are incurredd. The cumulative effect of these factors makes it impossible to predict when, if ever,

the Company will show a profit from operations on the Property

11. Our operations may not be economically feasible due to the cyclical nature of certainfactors. The economic feasibility of any development project is based upon, among otherthings:

a. Completion of design, engineering, installation and government regulationb. Volatile metals pricesc. Issuance and maintenance of necessary permitsd. Estimates of the size and grade of ore reservese. Proximity to infrastructures and other resources such as water and powerf. Metallurgical recoveriesg. Production ratesh. Capital and operating costsi. Receipt of adequate financing

Consideration must also be given to the adequacy of infrastructure, including: a. Reliability of roads, and water supplyb. Unusual or infrequent weather phenomenac. Government or other interference in the maintenance of such infrastructure

All of the foregoing factors are highly cyclical. While the exact effects of these factors cannot be predicted, any one or a combination of them could cause our business to fail.

12. We are subject to certain governmental regulation at the federal, state, and local levelsthat could delay or suspend our operations. While the Blackstone processing project is apilot-size closed-circuit processing operation located solely on private property we willnonetheless be subject to certain governmental regulations including Mine Safety andHealth Administration inspections and occupational health regulations, slag managementand disposal, fugitive dust control and Idaho Department of Environmental Qualityemissions standards. Obtaining the necessary government permits can be a complex andtime-consuming process involving numerous jurisdictions. With respect to the regulation ofmineral processing, various jurisdictions have established performance standards, air and

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water quality emission standards, and other requirements for various aspects of the operations, including health and safety standards. Legislation and regulations also establish requirements for decommissioning, reclamation, and rehabilitation of mineral processing facilities following the cessation of operations and may require that some properties be managed for long periods of time.

13. Governmental authorities and private parties may bring lawsuits based upon damage toproperty and injury to persons resulting from the environmental, health, and safetyimpacts of prior and current operations, including operations conducted by other miningcompanies many years ago at sites located on the Property. These lawsuits could lead tothe imposition of substantial fines, remediation costs, penalties, and other sanctions.Substantial costs and liabilities, including environmental restoration are inherent in ouroperation. We cannot assure you that any such law, regulation, enforcement or privateclaim would not have a negative effect on our financial condition and operations.

14. We face substantial requirements for environmental compliance that could be cost- prohibitive. Exploration activities are subject to various levels of federal and state laws andregulations relating to protection of the environment, including requirements for closureand reclamation of mineral processing. Some of the laws and regulations that could affectour operations include the Clean Air Act,3 the Clean Water Act,4 the ComprehensiveEnvironmental Response, Compensation and Liability Act,5 the Emergency Planning andCommunity Right-to-Know Act,6 the Endangered Species Act,7 the Federal Land Policy andManagement Act,8 the National Environmental Policy Act,9 the Resource Conservation andRecovery Act,10 and all related state laws in Idaho.

15. Environmental regulations mandate, among other things, the maintenance of air andwater quality standards and land reclamation, and set forth limitations on the generation,transportation, storage, and disposal of solid and hazardous waste. Environmentallegislation is evolving in a manner that will require stricter standards and enforcement,increased fines and penalties for non-compliance, more stringent environmentalassessments of proposed projects, and a heightened degree of responsibility for miningcompanies. We may incur environmental costs that could have a material adverse effect onour financial condition and results of operations. Any failure to remedy an environmentalproblem could require us to suspend operations or enter into interim compliance measurespending completion of the required remedy.

As part of our operating plan to address the preceding concerns, we intend to minimizesurface disturbance and negative impact to the highest degree. We will not use cyanideheap leaching or mercury amalgamation. All surface operations will incorporateconventional equipment and methods enhancing those with current, proven, state-of-the-

3 77 Stat. 392 (1963), codified as amended at 42 U.S.C. §7401. 4 86 Stat. 816 (1972), codified at 33 U.S.C. §1251 et seq. 5 94 Stat. 2767 (1980), codified at 42 U.S.C. §9601 et seq. 6 100 Stat. 1733 (1986), codified at 42 U.S.C. §11004-11049. 7 87 Stat. 884 (1973), codified at 16 U.S.C. §1531. 8 Pub.L. 94-579 (1976), codified at 43 U.S.C. §1701-1787. 9 83 Stat. 852 (1969), codified at 42 U.S.C. §4321 et seq. 10 Pub.L. 94-580, codified at 42 U.S.C. §6901 et seq.

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art equipment and technology. This will further reduce capital and operating costs and maximize the recovery of metals. Our goal is to exceed Federal Mine Safety and Health Act11

rules and regulations, establishing the safest possible work environment. Despite these efforts, it is possible we could incur liability.

We do not anticipate discharging water into active streams, creeks, rivers, lakes or any other bodies of water. We also do not anticipate disturbing any endangered species or archaeological sites or causing damage to the Property. Recontouring and revegetation of disturbed surface areas will be completed pursuant to the applicable permits. The cost of remediation work varies according to the degree of physical disturbance. It is difficult to estimate the cost of compliance with environmental laws since the full nature and extent of our proposed activities cannot be determined at present.

Future expenditures related to closure, reclamation, and environmental expenditures are difficult to estimate due to:

a. Uncertainties relating to costs and remediation methods that may be requiredb. Participation of other potentially responsible partiesc. Changing environmental laws and regulations

Obtaining environmental protection permits, including the approval of reclamation plans, may increase costs and cause delays depending on the nature of the activity to be permitted and the interpretation of applicable requirements implemented by the permitting authority. We may also be required to maintain reserves for costs associated with mine closure, reclamation of land, and other environmental matters. There can be no assurance that all necessary permits will be obtained and, if obtained, that the costs involved will not exceed our estimates.

16. The death or incapacity of an organizer would be extremely detrimental to the Company.The Company has full discretionary authority to identify structure, execute, administer, andliquidate Company assets. Accordingly, no person should invest in the Company unless suchperson is willing to entrust all aspects of the management and investment decisions of theCompany to its management. Each of our officers and employees is important to our success.If any of them, particularly Mr. James Hawley, became unable or unwilling to continue in theirrespective positions and we were unable to find suitable replacements, our business andfinancial results could be negatively affected.

22. Minimizing riskIn the unlikely event of a default, lenders can liquidate or take ownership of the 20 acre parcels securing their debentures conferred by the Deeds of Trust on the five patented claims12 situated

11 Pub.L. 91-173 (1969) as amended by Pub.L. 95-164 (1977), codified at 30 U.S.C. §801 et seq. 12 A patented mining claim is one which the federal government has passed title to the claimant, making the claimant the owner o f the surface and mineral rights. An unpatented (“located”) mining claim is one that is still owned by the federal government, but which the claimant has a right to possession to extract minerals.

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in the Bennett Mountains, approximately 80 miles southeast of Boise, Idaho in sections 13, 14, and 15, T.2 S., R.10 E., Boise Meridian.13 Each 20 acre claim secures one $2,000,000 debenture.

The 20 acre Kentucky lode contains the ore stockpile, the 20 acre Ohio, Iowa, and Illinois lodes share the approximate $415,000,000 in proven and probable reserves with the Kentucky lode. The Oregon lode is the site for the proposed hydrogen and metals processing plant and contains an undeveloped extension of the Blackstone mineral deposit that strikes along the ridge of the other four 20 acre lodes.

Based on the 2015 property valuation by independent geologists Richard Kucera, Ph.D., F.G.A.C and Andrew Egan, B.Sc., the Blackstone, without further development, has a minimum proven value of $214.8 million ($221.7 million at current commodities prices). Moreover, the consensus of geologists who have studied the property is the extent of the Blackstone mineralization is the width of the five claims (7,500 ft.) and at least a mile and a quarter below the deepest exploration level of 178 vertical feet.

As a comparison a list of similar mineral properties for sale in the western US, which list between $20 and $74 million, is attached as Exhibit D.

23. CompetitionThere are no hydrogen manufacturers using the Company’s zinc-to-hydrogen conversion technology. About 95 percent of all hydrogen is produced by steam reformation, requiring 3.5 units of natural gas per unit of hydrogen produced. Manufacturing hydrogen by electrolysis is not cost effective as more units of energy are required than are produced.

The oxygen and hydrogen gas manufacturing industry is capital intensive, with industry operators spending about $0.87 on capital for every dollar spent on labor. To effectively compete, industry operators require large-scale production units and distribution networks, which demand substantial capital investments. In addition, plants tend to be highly automated, requiring limited on-site labor. Major players, such as Praxair, Air Products and Chemicals, and The Linde Group are currently engaging in vast capital expenditures, of which a large part is dedicated to the construction of new facilities or transport pipelines.

In contrast, the Company’s method for off-site production of hydrogen using zinc hydrolysis reactors ‘fueled’ with recyclable zinc powder overcomes the need for expensive fossil fuels or electricity, distribution systems, and the process is emissions free.

13 The five patented claims are designated as the Kentucky, Ohio, Iowa, Illinois, and Oregon Lode Mining Claims (Mineral Survey No. 1662), more particularly described in Book 15 of Patents at page 407, et seq., in the Office of the County Recorder, Elmore County, Idaho.

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24. Competitive advantagesThe Company’s zinc-to-hydrogen conversion technology delivers hydrogen fuel: • At a lower price than current methods of hydrogen production• With considerably less expenditure of energy than current methods of hydrogen production• In a format that can be used at sites other than the Company’s Property• For environmentally friendly, green energy, the only emission of which is water

25. Intellectual propertyThe Company’s zinc-to-hydrogen conversion process is Patent Pending, pursuant to Provisional Patent Application No. 62391773, attached as Exhibit C.

26. Break-even pointThe Company anticipates showing profitability in Year 3 of operations.

27. Exit strategiesExit strategies available to the lender include:

• Repayment of the loan• Initial public offering as discussed in question 10• Sale of the Property in the event of default as discussed in question 22

28. Use of proceedsThe Company’s anticipated use of proceeds and costs are set forth in footnotes 7 and 12 to the pro-forma Statement of Cash Flows, attached as Exhibit G. In summary, the major uses are:

• Perfect the company’s patent pending zinc-to-hydrogen conversion process• Construct a zinc-to-hydrogen conversion plant on the Oregon patented claim• Construct a minimum 10-ton-per-day plant to recover copper, silver, gold, lead, and zinc

oxide• Construct a portable zinc-to-hydrogen powered electrical generation system• Market hydrogen fuel, zinc oxide, zinc powder, copper, lead, silver, and gold

29. Methodology for determining market potential, sales, and growthA March, 2016 report by Markets and Markets, “Hydrogen Generation Market by Generation & Delivery Mode (Captive, Merchant), Technology (Steam Methane Reforming, Partial Oxidation, Gasification, and Electrolysis), Application (Refinery, Ammonia Production, and Methanol Production), & Region - Global Forecast to 2021,” projects that the hydrogen generation market will grow to $152 billion within the next five years, based on an annual growth rate of 5.2 percent. The refining industry was the largest hydrogen consumer, with Asia-Pacific being the main regional market. The refinery segment is expected to be the highest growth contributor, followed by methanol. Hydrogen production in refineries is projected to grow faster due to increasing demand for petroleum tightening norms to reduce sulfur content.

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30. Unique selling propositionAccording to P&S Market Research, the increasing use of hydrogen in petroleum industries is propelling the growth of the global hydrogen market. The other end-user industries for hydrogen include metal processing industries, chemical manufacturing, pharmaceuticals, and food processing. The demand for hydrogen in petroleum refining has increased significantly over the last few years, owing to stringent motor vehicle emissions regulations imposed by various governments. Developed countries follow the latest emission regulations; whereas, developing countries frequently revise regulations. The rising per capita vehicle ownership and consequential demand for petroleum is fueling the demand for hydrogen globally. Apart, their scope in refineries as a chemical compound further acts as a driving factor for the hydrogen market.

Some of the other drivers behind the growing global demand of hydrogen include increasing demand of hydrogen from refinery hydro-processing industry, and growing concept of power- to-gas. Power-to-gas concept is designed to conserve energy and optimally utilize renewable sources. Methanation is one of the most important processes of the power-to-gas cycle, which produces methane. Hydrogen is one of the important raw materials for methanation, where it combines with carbon dioxide and produces methane. Growing utilization of this system is further fueling the demand of hydrogen gas.

On the basis of production and delivery, the global hydrogen market can be segmented into merchant production and captive production. On the basis of production process, the hydrogen market can be classified as gasification of coal, steam reforming of natural gases, partial oxidation of hydrocarbons, electrolysis of water, and others. On the basis of application, the hydrogen market can be classified as petroleum refinery, chemical production, food processing, pharmaceutical, metal processing, and others.

Though environmental legislations are increasing global hydrogen consumption for purification and higher quality products anticipated to provide further growth opportunities for hydrogen market, one of the major challenges to the global hydrogen market is unstable global oil refining capacity. The oil refining industry is a major end-user of hydrogen gas. Instability in this industry is severely affecting the growth of the hydrogen market. There is major instability in Western Europe, where refining capacity is continuously declining since 2011. According to the Organization of the Petroleum Exporting Countries (OPEC), the oil refining capacity of Western Europe was decreased from 15,155.9 (thousand barrels per calendar day) in 2011 to 14,097.6 (thousand barrels per calendar day) in 2013.

Geographically, Asia-Pacific is the largest revenue generating region globally for the hydrogen market. Rise in number of ammonia production plants and increasing refinery output is driving the Asia-Pacific hydrogen market, particularly in countries such as India, China, and Malaysia.

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North America is the second-largest market for hydrogen. The U.S. is the largest hydrogen consumer in North American. Over the last few years, stringent motor vehicle emission regulations imposed in developed countries, including the U.S., have increased the demand for low-sulfur and ultralow-sulfur gasoline and diesel fuels. This is fueling demand for hydrogen in the petroleum refining industry, thus driving the hydrogen market in North America.

31. Growth potentialGrowth potential is addressed in Question 30.

32. Customer acquisition strategyCustomer acquisition is addressed in Question 18.

33. Customer retention strategyThe Company believes its zinc-to-hydrogen conversion technology will appeal to commercial customers because of its ability to deliver hydrogen fuel: • At a lower price than current methods of hydrogen production• With considerably less expenditure of energy than current methods of hydrogen production• In a portable format that can be used at sites other than the Company’s Property• For environmentally friendly, green energy, the only byproduct of which is water

34. Customer satisfaction metricsThe Company anticipates measuring customer satisfaction by a variety of methodologies: • Direct customer feedback through surveys and questionnaires• Social media monitoring• Understanding customer expectations and thoroughly investigating complaints• Documenting the chain of communication so as to know where communication faults are

and foster amendments• Obtaining feedback through face-to-face conversations or meetings between the customer

and sales representative

35. Alliances and partnershipsThe Company has not entered into any alliances, partnerships, agency, joint ventures, or any other type of formal or informal joint organization. As noted in Section 17, the Company has executed letters of authorization to Mr. Eugene Maillard, Beverly Hills, California, and Mr. Frank Liu, New York, New York, authorizing them to seek funds on behalf of the company, with the express written understanding that the Company’s board of directors retains the exclusive right to accept or reject any funding offers, in whole or in part, in its sole discretion. The authorization letters are attached as Exhibit B.

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36. Legal proceedingsNeither the Company nor its principal shareholders are a party to any material legal proceedings and we do not have any contingencies related to legal matters. Likewise, we are not aware of any other pending or threatened litigation that would have a material adverse effect on our business, operating results, cash flows, or financial condition.

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Exhibit A Incorporation documents, amendments, and 2016 annual report

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Exhibit B Authorization letters to Messrs. Maillard and Liu

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Exhibit C Protected under U.S. Patent law by Provisional Patent Application No. 62391773

Title: Method for Producing Zinc Powder, Zinc Oxide, Hydrogen Fuel, and Potable Water from Zinc Ore Cross-reference to related research: None Federally sponsored research: None Sequence listing: None

ABSTRACT An environmentally friendly closed circuit for processing zinc-rich ores into zinc powder, zinc oxide, hydrogen fuel, and potable water is described. The invention replaces the use of fossil fuels expended in previous production methods of hydrogen gas; instead, relying on water electrolysis and thermochemical reactions using metallic oxides and powders. Conventional electrolytic production of hydrogen requires more energy than is produced from the hydrogen generated, making the process self- defeating as an energy-neutral method.

BACKGROUND OF THE INVENTION This invention relates to the processing of zinc-rich ores, specifically for purposes of creating zinc oxide, zinc powder, hydrogen fuel, and potable water. The invention arose from the inventor’s 30 years of experience in developing the Blackstone Mine (“Blackstone”), located in Elmore County, Idaho, approximately 80 miles southeast of Boise.

The Blackstone ore body is particularly rich in zinc. Depending on the level of refinement, zinc has a number of important industrial and pharmaceutical uses. In industry, zinc is most commonly used as an anti-corrosion agent in the galvanization of other metals (Green and Earnshaw 1203). A widely used alloy that contains zinc is brass, in which copper is alloyed with anywhere from 3 percent to 45 percent zinc, depending upon the type of brass. (Lehto 829). Besenhard notes that zinc is frequently employed as an anode material for batteries. Zinc oxide compounds are often used as a white pigment in paints and as a catalyst in the manufacturing of rubber (Emsley 503).

Zinc is also considered to be an essential mineral for the maintenance of public health (Hambidge and Krebs 1101–5). It is included in most single tablet over-the-counter daily vitamin and mineral supplements (DiSilvestro, 135, 155). Pharmaceutical preparations include zinc oxide, zinc acetate, and zinc gluconate. Zinc is believed to possess antioxidant properties, which may protect against accelerated aging of the skin and muscles of the body. It also helps speed up the healing process after an injury (Milbury and Richer 99) and is suspected of being beneficial to the body’s immune system (Keen and Gershwin 415–31). Zinc deficiency has been linked to major depressive disorders (Swardfager et al. 911- 29).

Although zinc is the 24th most abundant element in the earth’s crust, recent research suggests that known zinc reserves – at least those that can be mined profitably at current prices – will soon be exhausted, particularly given the recent closure of several major zinc mines (Shumsky, par. 1; Troen, par. 10). Zinc output lagged consumption by 296,000 tons in 2014, according to the International Lead and Zinc Study Group (de Sousa and Clarke, par. 7). This research suggests that either new zinc reserves must be discovered or the price of zinc must increase significantly to offset the cost of mining currently known, but less accessible, reserves.

The technology for recovering zinc from waste and recycled materials has been known since at least 1888. For example, the Waelz process is a method of recovering zinc and other relatively low boiling

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point metals from EAF flue dust and other materials using a rotary kiln (Harris 702-720). The process consists of treating zinc containing material, in which zinc can be in the form zinc oxide, zinc silicate, zinc ferrite, zinc sulphide together with a carbon containing reductant/fuel, within a rotary kiln at 1000°C to 1500°C. The kiln feed material comprising zinc ‘waste’, fluxes and reductant (coke) is typically pelletized before addition to the kiln. The chemical process involves the reduction of zinc compounds to elemental zinc (boiling point 907°C) which volatilizes, which oxidizes in the vapor phase to zinc oxide. The zinc oxide is collected from the kiln outlet exhaust by filters/electrostatic precipitators/settling chambers.

In the indirect process, metallic zinc is melted in a graphite crucible and vaporized at temperatures above 907°C (typically around 1000°C). Zinc vapor reacts with the oxygen in the air to produce zinc oxide, accompanied by a drop in its temperature and bright luminescence. Zinc oxide particles are transported into a cooling duct and collected in a baghouse. This method was popularized in 1844 by French painter E.C. LeClaire and is commonly known as the French process (Holley 153). Its product normally consists of agglomerated zinc oxide particles with an average size of 0.1 to a few micrometers. By weight, most of the world’s zinc oxide is manufactured via the French process.

More recently, University of Delaware researchers tested a solar reactor they developed to produce hydrogen from sunlight (Roberts, par. 1). Eight weeks of sophisticated testing at temperatures up to 1200°C revealed that the reactor’s mechanical, electrical and thermal systems worked as predicted. He was even able to collect small amounts of the stored solar energy in a vial, despite operating below critical reaction temperatures in order to validate the system’s components in a high-temperature environment. The reactor is designed to accomplish the first step in a two-step water-splitting process to generate hydrogen renewably from sunlight. The reactor, which is closed to the atmosphere, uses gravity to feed zinc oxide powder (the reactant) into the system through hoppers that dispense the powder onto a ceramic surface. There it undergoes a thermochemical reaction upon exposure to highly concentrated sunlight within the reaction cavity, producing solar fuel.

A research team from the University of Colorado at Denver incorporated desalination into microbial fuel cells, a new technology that can treat wastewater and produce electricity simultaneously (Luo, Jenkins, and Wren 340-344). They were able produce hydrogen gas, which is collectable and storable, thus making improvements in the technology, although the practicality of their process remains in question.

Stanford University scientists have created an advanced zinc-air battery with higher catalytic activity and durability than similar batteries made with platinum and other costly catalysts (Li 1805; Shwartz, par. 1). The researchers believe their discovery could lead to the development of a low-cost alternative to conventional lithium-ion technology.

Two pyrometallurgical processes have been designed and developed for the treatment of zinc- containing wastes: (i) a high-temperature submerged plasma zinc fuming process, and (ii) a reductive roast followed by oxidative ISASMELT process (Versheure 237-251). Continuous operation of these processes has been demonstrated on a pilot scale. It has been shown that high zinc fuming rates can be obtained while retaining vessel integrity through the formation of a stable freeze lining. A mathematical process model using FactSage and ChemApp thermodynamic software has been developed, which simultaneously describes chemical, thermal and heat transfer outcomes of these processes.

The chemistry of producing hydrogen through the dissociation of zinc oxide is also well known. In 2005, a team of scientists at the Weitzman Institute in Israel introduced an energy self-sufficient hydrogen production process by dissociating zinc oxide with a solar reactor to produce zinc powder (Piquepaille, par. 8). The powder was mixed with 350˚C water to produce hydrogen, reprecipitate the zinc oxide for further dissociation, and then reused to produce more hydrogen. Promising as this research was, the

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project did not address the production of the zinc oxide catalyst used to make the zinc powder, nor did it address the energy required to create the compound.

In contrast, the invention begins at the source through the vaporization of zinc ore. The invention is an end-to-end process designed for the production of hydrogen fuel, zinc oxide, zinc powder, economically significant metals, and potable water from ore containing sufficient amounts of zinc to allow self- sustainable hydrogen production for powering the invention and its associated devices. By increasing zinc content above the 3 percent (60 lbs/ton) required for self-sustainability, my invention will produce an excess of hydrogen. The extra fuel can be used for firing a high-temperature reactor for dissociating zinc oxide into zinc powder. Zinc powder is easier to handle and can be safely transported to power plants and fuel depots where hydrogen fuel could be easily generated using the zinc powder/water reaction. Instead of coal- or gas-fired power plants, zinc powder is a far more efficient and inexpensive energy source.

In conclusion, insofar as I am aware, there is no truly self-powered processing circuit for the production of zinc powder directly from zinc ore. I believe my invention overcomes this obstacle by creating a sustainable refining process that requires no fuel sources beyond the ore itself. With fewer than 60 hydrogen fuel stations in the United States, the widespread use of hydrogen-powered vehicles has been stunted. Zinc powder offers a viable method for hydrogen production at local hydrogen fueling stations, ultimately clearing the way for widespread distribution and an excellent alternative to fossil fuel pollution. In the not-too-distant future, drums of zinc powder could become the replacement for barrels of oil.

SUMMARY The invention seeks to replace the use of fossil fuels expended in previous production methods of hydrogen gas; instead, relying on water electrolysis and thermochemical reactions using metallic oxides and powders. Conventional electrolytic production of hydrogen requires more energy than is produced from the hydrogen generated, making the process self-defeating as an energy-neutral method. The advantages to the invention include, but are not necessarily limited to:

1. Economical hydrogen production2. Energy self-sufficiency3. Zero environmental emissions4. Clean energy5. Fewer greenhouse gasses6. Reduced carbon footprint7. On-site portable hydrogen production8. Wider hydrogen distribution channel9. Advancing the use of electrical vehicles10. Viable alternative to fossil fuels11. Alternative fuel for electrical generation12. Alternative power for desalination13. Potable water production14. Solar power storage

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BRIEF DESCRIPTION OF THE DRAWINGS Figure 1 depicts the entire self-sustaining ore processing circuit for creating hydrogen fuel, zinc oxide, zinc powder, and a polymetallic matte consisting of copper, silver, and gold. Figure 2 details the crushing, grinding, and screening circuit more broadly referenced in Figure 1.

DETAILED DESCRIPTION AND OPERATION An ore processing circuit is provided in which raw ore (1.1) is graded for zinc content and submitted to a crushing and grinding process (1.2 and Figure 2) that produces a -200 mesh dry ground ore feed that is conveyed to a proprietary graphite lined electric kiln (1.5). Three-phase electrical current for the kiln is provided by a hydrogen-powered internal combustion engine (ICE) coupled to an electrical generator operating at 3600 rpm (1.4). A 35 Kw solar panel array and electrical converter act as a backup power supply for the kiln in the event power from the ICE generator is unavailable.

The dry ground ore is conveyed to an electric kiln (1.5). After the ore is fired at a temperature of 1000°C for approximately two to three hours, the zinc content in the ore vaporizes, the vapor stream vents to a hydrogen reactor and zinc oxide filtering vessel (1.8) where water (1.6) is introduced into the vapor stream to strip the H2 molecule from the water, producing hydrogen gas and precipitating zinc oxide from the vapor stream (1.9). Firing continues at 1200°C to 1300°C where metallic copper, silver, and gold collect at the base of the kiln, the impurities collect in a borax glass slag layer floating on top of the metals. The metals and slag are tapped from the base of the kiln into molds as copper matte (1.11). The zinc oxide is pneumatically removed from the filter cartridges in the hydrogen/zinc oxide reactor and collection vessel to an automated packaging system for distribution to market or retained for production of zinc powder in the invention’s solar/hydrogen powered zinc oxide dissociation reactor (1.10) the polymetallic copper matte produced in the second temperature phase is shipped to a smelter for further refining and certification.

The entire processing circuit is self-sustaining insofar as hydrogen fuel is carried from the hydrogen reactor and zinc oxide filtering vessel (1.8) to a hydrogen-powered generator (1.4). Excess hydrogen fuel is sent to storage tanks (1.13) for later use in the processing circuit. Water from the hydrogen/zinc oxide reaction (1.12) can be reused in the hydrogen reactor (1.8) or used as potable water.

The entire zinc-to-hydrogen and zinc oxide processing circuit uses no fossil fuels, relying solely on the hydrogen produced during the processing cycle or solar energy as a backup.

Figure 2 details the crushing, grinding, and screening process broadly referenced in Figure 1 (1.2). Ore is analyzed for zinc content using hand-held X-ray fluorescence (2.2). Ore containing at least 60 pounds per ton of zinc (3 percent) is sent to a jaw crusher (2.3) where it is crushed to -3/4-inch and conveyed to a pulverizer where it is ground to -200 mesh. A circular vibrating screen (2.4) removes oversized ore, and returns it by conveyor (2.5) to the pulverizer for regrinding (2.6). Properly sized ore is then sent by a conveyor (2.7), to the electric kiln for the first stage firing (10000 C) and zinc vaporization (also known as “zinc fuming”). The vapor stream vents to a hydrogen reactor and zinc oxide filtration system (commonly known as a bag house) where the introduction of water liberates hydrogen gas by stripping the hydrogen molecule from the water and zinc oxide precipitates as a non-toxic white powder as the zinc vapor stream cools.

Following the zinc/hydrogen/water reaction (2.8) borax glass and sodium carbonate (soda ash) are added to the residual ore (calcine) from an overhead mixer. With the addition of the reagents to the calcine the kiln temperature is raised to between 1200°C to 1300°C (stage 2 firing). Fluxes absorb the impurities into a liquid slag layer that forms on the top of the molten copper, silver, and gold. The metals are poured into molds as a polymetallic matte and further refined into pure metals at a third- party smelter (2.14), while the borax slag is reused or recycled.

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The invention is designed to create a self-perpetuating energy cycle for the production of hydrogen, zinc oxide, and zinc powder with near zero atmospheric emissions. The invention will use no external energy in its processing cycles which includes stand-by solar energy if the zinc content in the ore falls below the minimum requirements needed for self-sufficient hydrogen fuel production. With regard to stand-by solar energy the invention includes a method for the storage of solar energy in zinc oxide coatings on the collector panels and combination zinc powder/silver storage batteries.

The invention includes proprietary designs for a graphite lined electric kiln used to tap molten metals from its base and boil off zinc into a vapor transport system connected to a hydrogen reactor and zinc oxide collection vessel. The kiln has two controlled heating phases, the first a 1000°C for vaporizing the zinc content in the ore, and a second 1200°C to 1300°C temperature phase for reducing the remaining calcine into metallic matte.

The invention includes the design of a companion reactor, collection vessel, and pneumatic filtering system for containing hydrogen and zinc oxide from the zinc vapor stream when it reacts with water in the chamber. The vessel and filters are designed to capture and then pneumatically release zinc oxide from the filter cartridges as the compound precipitates from the zinc vapor stream upon cooling. Zinc oxide is pneumatically conveyed to storage containers or an automated packaging machine.

A portion of the hydrogen gas generated from the primary processing phase is used to operate electrical generators for powering the kilns, equipment and vehicles required to load, crush, screen, grind, and transport zinc ore into the invention’s ore processing circuit.

The invention also includes a graphite lined zinc oxide dissociation reactor fueled by a combination of solar energy and hydrogen from the ore processing cycle. The reactor is designed to produce temperatures in excess of 1800°C to dissociate zinc oxide into zinc powder. The invention’s kiln, reactor, control valves, pumps, conveyors, reagent feeders, metering devices, and sensors are controlled by a computer regulated system utilizing proprietary software authored by the inventor.

The invention includes an additional design for a portable hydrogen gas production circuit using the zinc powder manufactured by the hydrogen reactor from the primary invention described above. The zinc powder is mixed with superheated sea, waste or tap water at 350°C to produce on-site hydrogen for vehicle fueling stations, industrial depots, power plants, desalination plants, and any other facility either capable or can be modified to operate on hydrogen as a fuel.

While the zinc and superheated water process is a well-known prior-art chemical reaction for hydrogen gas production, the invention differentiates itself through its portability, zinc oxide catalyst recycling, and solar energy storage used in the on-site production of hydrogen gas. The invention seeks to widen the distribution of hydrogen gas as a clean, environmentally friendly fuel for the reduction of fossil fuel use and hydrocarbon emissions.

The foregoing invention has been described in accordance with the relevant legal standards, thus the description is exemplary rather than limiting in nature. Variations and modifications to the disclosed embodiment may become apparent to those skilled in the art and fall within the scope of the invention.

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REFERENCE NUMERALS 1.1 Zinc ore 1.2 Crush and grind 1.3 35 Kw solar panel 1.4 Hydrogen-run generator 1.5 Electric kiln 1.6 Air/water injection 1.7 Hydrogen/zinc oxide filter vessel 1.8 Zinc vaporization process 1.9 Zinc oxide production 1.10 Packaging and marketing 1.11 Copper, silver, and gold matte production 2.1 Zinc ore 2.2 Grading ore for zinc content 2.3 Crushing and grinding to ¼-inch gravel 2.4 Circulatory vibrating screen 2.5 Oversized return conveyor 2.6 Pulverization of ore to -200 mesh 2.7 Ore feed conveyor 2.8 Ore/reagent mixer 2.9 Kiln gantry hoist 2.10 Electric kiln 2.11 Zinc oxide recovery filter 2.12 Packaging and marketing 2.13 Pouring copper, silver, and gold ores into metallic matte 2.14 Shipment to third-party smelter for refining and certification

CLAIM

What is claimed is:

1. An environmentally safe, closed circuit for processing zinc-rich ores into zinc oxide, zinc powder,hydrogen fuel, and potable water substantially as shown and described.

2. A technology utilizing zinc oxide and zinc powder for improving the efficiency in photovoltaiccells and panels. The technology consists of absorption coatings for solar receptors and thestorage of solar energy. Unlike the use of such coating in miniature photovoltaic cells, as inexperiments at the University of Arkansas, the claimant intends to expand the coatingtechnologies to large-scale solar collectors that will simultaneously store solar energy for lateruse. The claimant intends to expand the invention into a highly efficient, large-scalephotovoltaic cells capable of storing significant amounts of reserve energy when sunlight isunavailable.

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REFERENCES

American Institute of Physics. “Zinc oxide materials tapped for tiny energy harvesting devices.” Applied Physics Letters, 13 Jan 2015 http://www.aip.org/publishing/journal-highlights/zinc-oxide-materials- tapped-tiny-energy-harvesting-devices.

Besenhard, J. O. Handbook of Battery Materials. Hoboken, NJ: Wiley-VCH, 1999.

Chen, H. M. et al. “Plasmonic zinc oxide/silver photoelectrode for green hydrogen production.” SPIE: The International Society for Optics and Photonics, 20 Sept 2013 <http://spie.org/x103087.xml>.

De Sousa, A. and L. Clarke. “Record zinc shortage seen widening as producers close mines.” Bloomberg Business, 5 March 2015 http://www.bloomberg.com/news/articles/2015-03-05/record-zinc- shortage-seen-widening-as-producers-close-mines.

DiSilvestro, R. A. Handbook of Minerals as Nutritional Supplements. Boca Raton, FL: CRC Press, 2004.

Emsley, J. “Zinc.” Nature’s Building Blocks: An A-Z Guide to the Elements. Oxford: Oxford University Press.

Emspak, J. “Hydrogen fuel made with sunlight and zinc.” Discovery News, 21 Feb 2013 http://news.discovery.com/tech/alternative-power-sources/hydrogen-fuel-sunlight-zinc- 130221.htm.

Genuth, I. “Zinc powder will drive your hydrogen car.” Phys.org 11 Sept 2005 http://phys.org/news6381.html.

Greenwood, N. N. and A. Earnshaw. Chemistry of the Elements (2nd ed.). Oxford: Butterworth- Heinemann, 1997.

Hambidge, K. M. and N.F. Krebs. “Zinc deficiency: a special challenge.” Journal of Nutrition 137.4 (2007): 1101–5.

Harris, W. E., “The Waelz Process.” AIME Transactions, 121 (1936): 702–720.

Holley, C.D. The Lead and Zinc Pigments. Hoboken, NJ: Wiley, 1909.

Keen, C.L. and Gershwin, M.E. “Zinc deficiency and immune function.” Annual Review of Nutrition 10 (1990): 415–31.

Kushnir, P. “Hydrogen as an alternative fuel.” Army Logistics Management College, May/June 2000 http://www.almc.army.mil/alog/issues/MayJun00/MS492.htm.

Lehto, R. S. “Zinc.” In C. A. Hampel. The Encyclopedia of the Chemical Elements. New York: Reinhold Book Corporation, 1968.

Li, Y. et al. “Advanced zinc-air batteries based on high-performance hybrid electrocatalysts.” Nature Communications 4.5 (2013): 1805.

Luo, H., P.E. Jenkins, and Z. Ren, “Concurrent Desalination and Hydrogen Generation Using Microbial Electrolysis and Desalination Cells.” Environmental Science and Technology 45.1 (2011): 340-344.

Milbury, P. E. and A.C. Richer. Understanding the Antioxidant Controversy: Scrutinizing the “fountain of Youth. Santa Barbara, CA: Greenwood Publishing Group, 2008.

Piquepaille, R. “Sun + zinc = clean hydrogen.” ZD Net, 12 Sept 2005 http://www.zdnet.com/article/sun- zinc-clean-hydrogen/.

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Roberts, K. “Bottling sunlight.” University of Delaware Daily, 3 April 2012 http://www.udel.edu/udaily/2012/apr/solar-reactor-040312.html.

Shumsky, T. “Shortages galvanize zinc.” Barron’s, 11 Oct 2014 http://online.barrons.com/articles/shortages-galvanize-zinc-1413007336.

Shwartz, M. “Stanford scientists develop efficient zinc-air battery.” Stanford News, 4 June 2013 http://news.stanford.edu/news/2013/june/zinc-air-battery-060413.html.

Swardfager, W., et al. “Potential roles of zinc in the pathophysiology and treatment of major depressive disorder.” Neuroscience & Biobehavioral Reviews 37.5 (2013): 911–29.

Troen, O. “World running out and shortage hits pound in your pocket.” The Independent (UK), 22 April 2015 http://www.independent.co.uk/news/uk/home-news/zinc-world-running-out-and-shortage- hits-pound-in-your-pocket-9731536.html.

Umicore. “Summary of fine zinc powder flammability and explosivity characteristics. http://www.zincchemicals.umicore.com/ZincMetalPigment/ZMPhse/ZMPhse_explosiChar.html.

Versheure, K. et al. “Investigation of zinc fuming processes for the treatment of zinc-containing residues.” In Nilmani, M. and Rankin, W. J., Sustainable developments in metals processing. Melbourne, Australia: John Floyd International Symposium on Sustainable Developments in Metals Processing, 2005.

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Exhibit D Comparable mining properties

Victoria Copper Mine

Location: Elko County, Nevada

Patented claims: 5

Unpatented claims: 121

Resources: • 1.4 million tons of proven ore grading 0.35 ounces of silver per ton and 2.15% copper• Probable ore reserves of more than 500,000 tons

Asking Price: $55 million

Darwin Mines

Location: Darwin, California

Patented claims: 0

Unpatented claims: 40

Resources: • Estimated total value: $13.3 billion• Surface samples: .3 oz/ton gold; 2.3 oz/ton silver• Metals: Gold, silver, lead, copper, zinc• 800 acres

Asking Price: $23.5 million

Discovery Day Mine

Location: Forks of Salmon, California

Patented claims: 0

Unpatented claims: 48

Resources: • Potential reserves: 1 million oz. gold• Metals: Gold, silver, lead, zinc, copper, tungsten

Asking Price: $20 million

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Exhibit E Zinc-to-Hydrogen Conversion Schematic

Protected under U.S. Patent law by Provisional Patent Application No. 62391773

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Exhibit F Another Butte in Southern Idaho?

Another Butte in Southern Idaho? In November 1930, Robert N. Bell, M.E., Idaho Inspector of Mines, published a research article in which he described a “genetic blood relationship” between the Butte, Montana Mining District and the Blackstone Mine, located in southern Idaho’s Volcano Mining District. At the time, Butte was the largest copper producer in the world. Its total production would exceed $175 billion at today’s prices.

The Butte district lies on the southwest edge of the Boulder batholith, a magma chamber of about 2,200 square miles. The Blackstone and Volcano Mining District are located on the southwest edge of the Idaho batholith, a magma chamber covering 15,400 square miles, roughly seven times the size of the Boulder batholith. Located miles below the surface, these huge chambers are the primary source of precious metals in their respective ore bodies. Both properties feature granite formations with the same weathered and disintegrated surfaces.

The Blackstone property also shares Butte’s dominant characteristic of highly altered eruptive granite and quartz monzonite traversed by lean quartz pyrite veins of silver, gold, and copper carbonates. Other common traits include manganese gossans of silver, associated with the presence of aplite, rhyolite, and quartz porphyry.

About 5,000 feet east of the Blackstone where the Volcano mineral belt intersects the floor of the Camas Prairie valley, a series of closely parallel quartz veins and mineralized porphyry dikes are exposed above the surface. A small vein mined from a 200 foot tunnel reportedly produced a shipment of 30 tons of ore with average values of 320 ounces of silver and .06 ounces of gold per ton. At 2013 prices, that shipment would be valued at approximately $225,000.

The Butte district’s great siliceous rhyolite dikes are evidence of deep-seated magmatic activity that deposited metallic mineral values. The same types of rhyolite dikes are equally conspicuous at the Blackstone. The largest amount of magmatic activity is located. Outcroppings are readily visible along the 7,500 granite ridge that traverses the property. A five-foot wide vein in one of the surface exposures assayed at 50 lbs. copper, 14.5 ounces silver, and .04 ounces of gold per ton.

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Another Butte in Southern Idaho?

Volcano Mining District in the heart of a productive agricultural area has received little attention from state and U.S. geologists

Northwest Mining Truth (November, 1930)

Robert N. Bell, M.E.

Can the Butte copper district be duplicated? The answer to the above question by an experienced Montana geologist familiar with the history of Montana’s famous copper camp would be a decisive “no,” and he would be right unquestionably, for as a matter of experience in metal mining development, there are no exact duplicates in nature as nature abhors a straight line.

Broad experience teaches that there is an individuality to every mining district and in fact to almost every separate ore body in a district. It has been pointed out, however, by such authorities as Dr. Spurr and other noted geologists, that there is a genetic or blood relationship or type characteristic among mining districts and ore deposits, especially in the Cordilleran area of the west, which should have some value in an economic forecast based on surface outcrop and shallow development conditions if such conditions are of sufficient strength, and evidence closely comparable to magmatic activity.

Butte’s unique position The Butte district probably carries the highest concentration of copper values of any district in the world in a similarly constricted area. Its production of copper and other metals during the past 50 years is said to have exceeded 2 billion dollars and is unique in this respect as well as in many others, especially in the primary character of its predominant ore: chalcocite.

For many years, Butte was the only important productive copper ore district in the world whose enclosing formation was eruptive granite. This formation is now the source of more than half the copper production of the United States.

The outstanding characteristic of the Butte granite or quartz monzonite is its local association with a zone or belt of later igneous differentiates, originally of basic andesite formations, but more conspicuously with siliceous dike rocks in association with the ore bodies. In forecasting the development of another mineral district star of the Butte magnitude, the writer recognizes that he is dealing with very shallow phases of raw material, but believes that this material is of such blood relationship to the surface expressions of the Butte ore deposits as to justify this comparison.

Surface was unattractive The Butte district in Montana is situated within the southwest edge of the main lobes of the Boulder granite batholith - a magma chamber of 2,200 square miles in exposed surface area. The surface evidence of the great ore bodies at Butte was decidedly unattractive.

The general formation of highly altered and disintegrated eruptive granite or quartz monzonite was traversed by lean quartz pyrite veins carrying low silver values and a little copper carbonate stain.

These together with the manganese-gossan veins of the old silver mines are associated with strong dikes of aplite, rhyolite and quartz porphyry and in only one instance, I believe, did commercial copper exhibit a surface outcrop crest.

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To plant a new industrial unit of the capacity of Montana’s great copper camp practically in the lap of the productive agricultural area of Southern Idaho is a consummation devoutly to be wished, and a forecast not devoid of material substance.

The Idaho district under consideration in this forecast is known as the Volcano Mining District. It is situated in Camas and Elmore Counties in south central Idaho within fifteen miles of the Union Pacific Railway at Glenn's Ferry on the south and within five miles of the branch terminal of the same line at Hill City on the north.

In spite of its attractive comparison with Butte conditions, the Volcano district has so far escaped the attention of the U.S. Geological Survey and Idaho Bureau of Mines and Geology, except in its outlying edges.

One of the old reports on the geology and water resources of the Snake River Valley by Russell covers the rhyolite feature of Mount Bennett at the west end of the district, and a recent paper by the State Bureau on ground water for irrigation on Camas Prairie by Piper is confined to the artesian water possibilities of the valley, with little reference to the general geology of its borders other than their magmatic and volcanic character.

Geologically this district is located at the extreme southern edge of the magma chamber known as the Idaho granite batholith, which has ten times the volume of the Boulder Batholith in Montana, with an exposed surface area conservatively estimated at 22,000 square miles.

The granite formation of this district shows the same characteristically weathered and disintegrated surface as does the Butte district, with occasional patches of wind carved, weathered bouldery and monolithic pillars of harder formation.

Parallels flat valley This interesting mineral district lies parallel to the broad flat-floored intermountain valley of Camas Prairie, a notable dry farming wheat section of Southern Idaho, 10 miles broad and 30 miles long. Viewed from one of the grain fields in the valley, the mineral belt looks like a low weathered granite ridge rising to an elevation of a thousand feet above the valley floor, within a distance of a mile and a half. Its straight east-west contour and fairly uniform northern slope suggests a false scarp of regional proportions.

The northern slope of the ridge is scored by numerous short shallow erosion channels, usually carrying springs and patches of brushwood such as willows and quaking aspen. Several of these shallow gullies are without doubt roughly north and south lines of cross faulting as they conspicuously displace the vein. The elevation of the valley floor opposite the central part of the mineral belt is 5,200 feet and along the crest of the ridge 6,200 feet above sea level.

Area’s geology described Following the crest of this ridge which is in reality the southern edge of a remnant plateau area, varying from a mile to two miles broad, the disintegrated granite formation over approximately a mile in width and for a N. 70º E. strike length of five or six miles, is conspicuously traversed by a close set series of nearly vertical aplite dikes of equal proportion in size to the Butte formations of this character, then by a series of more or less cellular quartz pyrite veins.

One of these, the Revenue, while it may not make Daly’s original snake-the Anaconda-look like an angle worm in comparison, is to say the least a very worthy duplicate of that noted mineral outcrop, and consists in this instance of an opaque white quartz vein, in places intensely brecciated to a boxwork

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silica expression that is from forty to eighty feet wide in almost continuous low outcrops above the plateau surface for a distance of two miles, with short intermissions of siliceous banded shear zone structure and intensely sheared and sericitized granite walls.

This great vein is succeeded in the central cross-section under discussion by a highly altered and intensely mineralized quartz porphyry or feldsite porphyry dike or stock that is 180 feet wide, its exact petrographic determination being difficult on account of the highly mineralized condition of the surface outcrop, which carries bands of light spongy gossan several feet wide with considerable copper carbonate staining and giving light values in silver up to three or four ounces.

Chalcopyrite near surface This is succeeded by three narrower quartz filled fissures. One of them, with a continuous outcrop of 1,000 feet, is five to 10 feet wide and in some shallow surface pit development has afforded specimen values in small kidneys of clean chalcopyrite ore of $80 per ton in copper, gold, and silver.

This series, a few hundred feet farther south, is succeeded by a parallel dike of igneous rock that is probably a basaltic andesite, and again by other parallel dikes up to fifty feet thick of rhyolite or quartz porphyry. The whole series is cut at an oblique angle by occasional cream colored narrow dikes of fine grained aplite two to three feet wide.

A little farther west on this interesting belt, the rhyolite appears as a surface flow or capping to the copper-bearing quartz veins and dikes over a short stretch of their course. These formations, together with remnant patches of basalt, indicate former extensive coverage of the formation that has been removed by erosion.

As rhyolite dikes are so conspicuously associated with the Butte ore bodies, whatever their function may have been in connection with the primary supply of the ore solutions, it is interesting to record the occurrence of this type of igneous rock in the district under discussion, which occurs in such volume as to make the rhyolite butte for which the famous Montana copper camp was named, together with its continuous dikes and flows, look like a small knot on a big log by comparison.

Possible influence of dikes The Butte geologists give little credence to the influence of the Butte rhyolites, one way or another, on the ore deposition of that district. A more liberal view of this particular item of Butte geology is worth considering, as these great siliceous dikes were doubtless stokers and conditions to the ore bearing granite wall rocks of the district, and probably are responsible in a measure at least for the conditioning and faulting of the granite formation.

They also evidence a silex condition of differentiation and liquid flux and phase of deep-seated magmatic activity, that seems to be favored by the authorities to be one of the essential factors of final segregation of metallic mineral values prior to their ascent as gases or other solutions into the fissure courses in which they are deposited as ore bodies.

In this respect the Volcano district ore zone has a superior advantage over the Butte district.

The rhyolites of the Volcano district are most conspicuously exhibited at the west end of the belt in the round-topped summit of Mt. Bennett, which has an elevation of 6,700 feet and is made up entirely of immense rhyolite dikes. Mt. Bennett probably constitutes one of the principal centers of eruption and extrusion of this class of siliceous magmatic slags which forms a belt of these acid lavas eight miles wide and thirty miles long by probably 10,000 feet in vertical cross section. These rocks, by reason of their hard resistant character, comprise the more prominent outcrop formation along the plateau area of the mineral belt, whose general surface is covered with a deep mantle of coarse sandy soil supporting rich

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growth of wild grasses and sagebrush and is largely fenced and covered by enlarged dry-farm homesteads on which the mineral rights are reserved to the government.

Watching Butte since 1884 The writer first visited the Butte district in Montana in the spring of 1884 when its surface conditions were not so badly scarred as at present. He has since had repeated opportunity to note these conditions of the Montana camp, both at the surface and underground, and is highly impressed with the similarities of this Idaho district, not only of the mother magma formation but also of the conspicuous comparative character of its later intrusive vein and dike conditions.

The Blackstone group There is very little development in the Volcano district on which to base a forecast of similar phenomenal ore development at depth to that which resulted at Butte from similar shallow surface tests and outcrop conditions.

One of the few shallow prospect developments of this Idaho district is an old discovery near the west end of the mineral zone, known as the Blackstone Mine, which was located forty years ago by two noted jurists of Idaho – the late Joseph J. Rich of Paris, Idaho, and Hon. James H. Hawley of Boise.

The Blackstone Group, consisting of five claims patented many years ago and idle since the patent was issued, carries a sheared quartz fissure richly stained with manganese oxide and copper carbonate. It was developed by a short crosscut tunnel at a face depth of 100 feet where the oxidized condition still prevailed but disclosed some fair sized kidneys of chalcopyrite ore which together with the richer carbonate materials is said to have afforded three small carload shipments of hand-picked ore that gave smelter returns of 15 percent copper and $20 per ton in gold and silver. These old workings are long since caved and the evidence of values is the surface outcrop cuts where a vein of green and black stained shelly quartz five feet wide gives average values of 2.5 percent copper and $5 gold and silver per ton.

Shaft at the Opportunity About a mile west of this development, the Opportunity Mine has a vertical shaft 150 feet deep on a siliceous copper carbonate and manganese stained shear zone 10 to 20 feet wide, which exhibits the same deep oxidation as was common in the early history of the Butte mines. This dry shaft revealed no sulphide mineral but gave a gradual increase in the associated silver values in the gangue of the vein. A band of soft, sooty manganese on the hanging wall at the shaft bottom, six inches wide, gave an assay of 5 percent copper, 12 ounces silver and 60 cents gold per ton.

Extending east on the zone from this point for a distance of three miles, the numerous outcrops carry shallow prospect pits, in no place exceeding thirty feet in depth.

The thirty-foot prospect shaft of the Revenue Group of claims is now badly caved but its dump ore from a five foot quartz vein exhibits selected specimens of hard quartz containing pyrite, chalcopyrite and occasionally coarse crystals of both galena and sphalerite. The lead-zinc association is found at several other shallower prospect pits on this and other quartz veins of the zone.

Tunnel cut rich silver At the extreme east end of the mineral belt where it strikes the flat floor of the Camas Prairie valley, a series of closely parallel quartz veins and mineralized porphyry dikes outcrop conspicuously above the surface. On one of the smallest of these veins, some very rich silver ore was found and a shallow tunnel was extended in 200 feet a number of years ago. This tunnel is now caved and inaccessible, but is

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reputed to have marketed small shipments of from five to thirty tons of crude ore carrying 200 to 500 ounces of silver per ton, with several dollars gold.

There is a good sized dump of cobbings at the portal of this old tunnel that gives assay sample values of 60 ounces of silver from a brown stained granular quartz with corroded segregations of soft chalcopyrite, and the walls of a caved discovery shaft ten feet deep on the same vein exhibit stringers of quartz and brown hematite.

One of these stringers several inches wide gives an assay sample result of 110 ounces silver and $10 gold per ton, and in harder quartz bands some scattered crystals of chalcopyrite and a blue sulphide material, probably argentite.

Development now underway The most promising development on this belt is now underway and is likely to shortly reveal its economic possibilities. This development is on the Revenue Group of claims, covering the central section of the mineral zone for a distance of a mile and a half over its most conspicuous quartz and copper stained porphyry outcrops. It consists of a crosscut tunnel starting at an elevation of about 600 feet above the valley bottom, in one of the more favorable erosion channel depressions.

The tunnel is now 1300 feet long, will shortly penetrate the big Revenue quartz vein at the face depth of 400 feet, and will be continued across the system for an additional 800 feet.

The accompanying cross section of the formation penetrated by this tunnel is of keenest interest, and while the maximum depth to be obtained under the mineralized outcrop is comparatively shallow, it is to be expected that an unaltered sulphide condition of the veins, as indicated by their gossany outcrops, may be anticipated, in a degree at least, by reason of the fact that the tunnel has been very wet since it was started.

The first 400 feet of the course of the tunnel from the portal is through rotten, decomposed, blue granite of fairly coarse texture, and a thin section of this rock gives the following: “Orthoclase and quartz inclose euhedral plagiaclase crystals. Biotite, hornblende, magnetite and a little augite are accessories. The feldspars are somewhat cloudy.”

Tunnel cuts dike series This granite is succeeded along the course of the tunnel with an equal volume of aplite dike formation alternating with bands of altered granite, as shown in the section. One of these aplite dikes is 150 feet broad and intensely brecciated, so much so as to involve heavy timbering and spiling for that distance.

At the 750-foot station, an aplite dike was intersected about 150 feet wide, carrying a hanging wall band five feet wide that had been intensely fractured and its network of fracture or shrinkage planes completely saturated with molybdenite, giving the rock a blue cast. This dike is succeeded by another zone of granite, and again another fifty foot aplite dike, extremely siliceous and fine grained, resembling quartzite to the unaided eye, was passed through and again altered granite was encountered.

In a petrographic determination of this fresh phase of the aplite, according to thin section studies, the rock was found to consist essentially of quartz, orthoclase and a little albite, with beautiful spherulites around the corroded quartz phenocrysts and zone of micropegmatitic structure.

Big vein 100 feet ahead It is expected that the big north vein of the series, 40 to 80 feet wide, will be encountered within 100 feet of the present face of the tunnel if its dip of a few degrees from the vertical exhibited in its surface outcrop is maintained at this depth.

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The contacts of these aplite dikes with the granite vary from an irregular intermeshing of the two formations to distinct talc gouge partings.

The tunnel has been wet overhead since the first big brecciated aplite dike was cut, and occasional big rushes of water were encountered after passing through the talcy contact gouges. The back of the tunnel dries as the face advances, which, however, continues wet, and the tunnel drain is now carrying approximately thirty gallons a minute of water flow.

These conditions evidence the probable upper surface of the ground water circulation but should mean some unaltered sulphide conditions when the big quartz vein and its parallel highly mineralized porphyry dike are encountered.

May be largely pyrite It is to be expected that these sulphides will be largely pyrite, but should have commercial association of chalcopyrite mineral and probably some zinc and lead, judging from the shallow pit development in the surface outcrop of these ore bearing fissures.

If the development at this level should reveal associated chalcocite mineral, the identification of the zone as a geologic blood relation of the Butte district in Montana will be substantially completed and will justify the economic forecasts of its probable great economic importance for more extensive and deeper development.

The Revenue Group of claims is owned by the Consolidated Mines Syndicate, a development enterprise supported entirely by widespread public stock subscription. Frank E. Johnesse, First National Bank Building, Boise, Idaho is manager.

The company owns three other properties in other Idaho districts, on all of which extensive preliminary development work has been performed, and some large ore resources proven on each property. Mr. Johnesse has the reputation of getting more results in underground work for the money obtained from his stockholders than is common from such speculative development investments.

Eight men now working The present Revenue tunnel was started last January. It is 5x7 in the clear inside the timber portion. It is equipped with a portable two-drill compressor, and the camp consists of a blacksmith shop, cook shanty, dining room and a frame bunk house for the accommodation of ten men. A crew of eight men is now employed.

The tunnel carries an 8-inch ventilation pipe with an elbow and a vertical standpipe 30 feet high at the portal. A small jet of compressed air is injected into the standpipe at the elbow and gives excellent ventilation at the face, exhausting powder gasses in about fifteen minutes after a round. This simple contrivance has been fully effective so far and may be of interest to other enterprises of this nature.

The overall cost of the tunnel to date has averaged $13 per foot. The cost was increased by the 150 feet of ground encountered, some of which had to be breast boarded and top spiled with short lengths of track iron.

The cost is a credit to the operator and emphasizes the altered character of the formation encountered, which is a favorable augury of the general geological conditions of the ore-bearing zone and is comparable to the conditions encountered at shallow depths in Butte. The character of the ore occurrence to be shortly proven by this interesting piece of development is awaited with keenest interest and anticipation.

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Exhibit G

BUSINESS PLAN & FINANCIAL STATEMENTS

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CONTENTS

Executive summary ............................................................................................................................... 53

Project description Overview ............................................................................................................................................... 54 Ore reserves ......................................................................................................................................... 54 Project highlights .................................................................................................................................. 55 Zinc-to-hydrogen conversion technology ................................................................................................... 55 Markets................................................................................................................................................. 56

History of the property ..................................................................................................................... 58

Geology ........................................................................................................................................... 59

Development of the property by prior lessees ................................................................................... 61 Circa, Incorporated ................................................................................................................................. 61 Hambro Resources ................................................................................................................................. 62 Richwell Resources ................................................................................................................................. 62

Pilot plant operations ...................................................................................................................... 63

Zinc-to-hydrogen processing circuit ................................................................................................... 64 Plant capacity vs. reaction time.................................................................................................................. 65 Economics of excess zinc oxide ................................................................................................................... 66 On-site power .............................................................................................................................................. 66 Environmental regulations .................................................................................................................... 66 Staffing.................................................................................................................................................. 67 Product shipping, security, and communications ...................................................................................... 67

Management of the company ................................................................................................................ 68

Balance sheet .................................................................................................................................. 70

Notes to balance sheet .......................................................................................................................... 72

Five-year consolidated statement of projected cash flows ................................................................. 73

Notes to five-year consolidated statement of projected cash flows .................................................... 74

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EXECUTIVE SUMMARY

Blackstone Mining Company, Ltd. (“Company”) has developed a disruptive technology (Pat. Pend.) for converting zinc ore to hydrogen fuel (“Technology”). The company plans to install a solar- and hydrogen- powered pilot processing facility at its wholly owned mining property in southwestern Idaho (“Property”). The results will be used to further develop hydrogen fuel production on-site and at other locations throughout the United States and Internationally. When used on-site, the Technology also recovers copper, lead, silver, and gold as a byproduct of the zinc-to-hydrogen reaction.

As of August, 2017, the Property’s current and known hydrogen-compatible ore inventories total $463.8 million, excluding the value of hydrogen produced by the Technology:

• 30,000 tons of stockpiled ore ($41.2 million)• Proven ore reserves ($67.6 million)• Probable ore reserves ($355 million)• Proven leach grade reserves of $154.2 million are not included in the hydrogen compatible inventory

When fully deployed, the zinc-to-hydrogen conversion Technology is projected to extend the total current reserve values to at least $1.3 billion.

Project highlights • Ore reserves capable of producing an estimated $1.3 billion in hydrogen and metals• Recovery of copper, lead, silver, zinc powder, zinc oxide, and gold as a by-product of on-site hydrogenproduction at the Blackstone• Easily accessible stockpile and reserves with minimal excavation required• Clean, inexpensive production of hydrogen from zinc ore, zinc oxide, and zinc powder• Environmentally friendly, emission-free production of hydrogen• Reusable zinc oxide byproduct for continuous production of hydrogen• Portable production technologies for economical off-site hydrogen production• Blackstone green hydrogen is an excellent alternative to burning fossil fuel.

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PROJECT DESCRIPTION

Overview Blackstone Mining Company, Ltd. (“Company”) has developed a disruptive technology (U.S. Pat. Pend. 62/391773) for converting zinc ore to hydrogen fuel and recycling the resulting zinc oxide to zinc powder (“Technology”). The Technology allows hydrogen to be produced anywhere as green energy fuel.

The Company is the sole owner in fee simple title of the zinc-rich Blackstone Mine. The 100-acre complex is situated in the Bennett Mountains, approximately 80 miles southeast of Boise, Idaho in sections 13, 14, and 15, T.2 S., R.10 E., Boise Meridian. The Property is accessible from U.S. Highway 26 and Elmore County Road 68 at an elevation of about 5800 feet.

The Company plans to deploy the Technology at the Property for manufacturing hydrogen and recovering commercial amounts of copper, gold, lead, and silver. The plan also anticipates installing off- site zinc hydrolysis reactors that use recyclable Blackstone zinc powder to produce hydrogen off-site, avoiding the expense of shipping containerized gas.

Hydrogen Compatible Ore reserves As of August, 2017 the Property’s current and known hydrogen-compatible ore inventories (“Reserves”) are valued at approximately $1,844 per ton, a total of $463.8 million, excluding the value of hydrogen produced by the Technology:

• 30,000 tons of stockpiled ore ($41.2 million)• Proven ore reserves ($67.6 million)• Probable ore reserves ($355 million)

When fully deployed, the sale of Technology-produced hydrogen is projected to increase total Reserve values threefold, to $1.3 billion.

The proven ore reserve valuations were verified in 1996 by geologists Richard E. Kucera, PhD, FGAC, and subsequently reevaluated in 2015 by Andrew Egan, BSc. Dr. Kucera and other experts have estimated the Blackstone ore body extends at least 1.25 miles below the Reserves identified thus far. The Stockpile requires no additional excavation and near-surface Reserves can be easily removed with conventional excavation. The values of the proven, probable, stockpile, and leach grade ores, adjusted for commodities prices as of August 17, 2017, are shown in Table 1.

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TABLE 1 – BLACKSTONE MINE ORE RESERVES & STOCKPILE VALUES (AUGUST 2017) (Does not include values for hydrogen production)

Metal Tons Assay/ton Source Price Price per Value/ton Total value

Hydrogen-compatible proven reserves

Gold (ozs) 35,500 0.106 Kitco 1,286.00 ounce 136.32 4,839,218

SIlver (ozs) 35,500 23.53 Kitco 17.01 ounce 400.25 14,208,708

Copper (%) 35,500 4.94% Kitco 2.96 pound 292.45 10,381,904

Lead (%) 35,500 4.00% Kitco 1.05 pound 84.00 2,982,000

Zinc Oxide (%) 35,500 8.50% Kitco 5.70 pound 969.00 34,399,500

Manganese (%) 35,500 1.15% Kitco 0.94 pound 21.62 767,510

Subtotal 67,578,840

Hydrogen-compatible ore stockpile

Gold (ozs) 30,000 0.007 Kitco 1,286.00 ounce 9.00 270,060

SIlver (ozs) 30,000 8.5 Kitco 17.01 ounce 144.59 4,337,550

Copper (%) 30,000 3.00% Kitco 2.96 pound 177.60 5,328,000

Lead (%) 30,000 2.50% Kitco 1.05 pound 52.50 1,575,000

Zinc Oxide (%) 30,000 8.50% Kitco 5.70 pound 969.00 29,070,000

Manganese (%) 30,000 1.15% Kitco 0.94 pound 21.62 648,600

Subtotal 41,229,210

Hydrogen-compatible probable reserves

Gold (ozs) 186,500 0.106 Kitco 1,286.00 ounce 136.32 25,422,934

SIlver (ozs) 186,500 23.53 Kitco 17.01 ounce 400.25 74,645,748

Copper (%) 186,500 4.94% Kitco 2.96 pound 292.45 54,541,552

Lead (%) 186,500 4.00% Kitco 1.05 pound 84.00 15,666,000

Zinc Oxide (%) 186,500 8.50% Kitco 5.70 pound 969.00 180,718,500

Manganese (%) 186,500 1.15% Kitco 0.94 pound 21.62 4,032,130

Subtotal 355,026,864 Leach Grade (with no H2 production)

Gold (ozs) 700,000 0.078 Kitco 1,286.00 ounce 100.31 70,215,600

SIlver (ozs) 700,000 2.110 Kitco 17.01 ounce 35.89 25,123,770

Copper (%) 700,000 0.20% Kitco 2.96 pound 11.84 8,288,000

Lead (%) 700,000 0.50% Kitco 1.05 pound 10.50 7,350,000

Zinc Oxide (%) 700,000 0.50% Kitco 5.70 pound 57.00 39,900,000

Manganese (%) 700,000 0.25% Kitco 0.94 pound 4.70 3,290,000

Subtotal 154,167,370

All reserves $ 618,002,285

A portion of the Blackstone commercial mineralized zone is exposed at outcrop level in a 110-foot-wide section, striking into the previous open pit mining area about 1,600 feet west of the existing workings. Based on 12 cubic feet per ton for the ore, there are an estimated 300,000 to 500,000 tons in the first 40 vertical feet between the exposed section and the workings, depending on the average width of the mining zone. The additional tonnage is expected to be similar to that of the ore described in the Kucera and Egan valuation reports. If the assumption is true the ‘assumed’ ore block would have a value of up to $790 million.

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While the reported values of the hydrogen-compatible ore are economically compelling, factors such as overburden mixed with the ore, stripping ratios, and losses from crushing, sorting, and processing could materially affect the volume of the on-site ore inventory, including the stockpile. Operators of the Blackstone in the 1980s were focused on recovering silver, the primary reason much of the mined hydrogen compatible zinc-rich ore was left behind.

Stockpiled ore will be sorted for its zinc content to ensure the processing feed meets the first year’s production goal of 350,000 pounds of zinc powder, which may reduce the recovery of the reported silver and gold values.

Project highlights • Ore reserves capable of producing an estimated $1.3 billion in hydrogen and metals• Recovery of copper, lead, silver, and gold as a by-product of the on-site hydrogen production• Easily accessible stockpile with no additional excavation required• Hydrogen-compatible ore reserves near the surface can be stripped with little difficulty• Clean, inexpensive production of hydrogen from zinc ore, zinc oxide, and zinc powder• Environmentally friendly, non-fossil fuel, emission-free production of hydrogen• Reusable zinc oxide byproduct for continuous production of hydrogen• Off-site production technologies for the economical production of hydrogen

Zinc-to-hydrogen conversion technology The Technology injects zinc vapors into superheated water to create hydrogen gas. The resulting zinc oxide is subsequently dissociated into zinc powder, which allows the reaction to be repeated multiple times. When used on-site, the Technology also recovers commercial amounts of copper, lead, silver, and gold matte bullion as a byproduct of the initial hydrogen production cycle. The Company believes the

initial pilot processing plant will be profitable and validate the Technology eventually allowing off-site commercial manufacturing of hydrogen throughout North America and overseas.

The Company will begin production by processing 10 tons per day of hydrogen-compatible Reserves on- site at the Blackstone. The first full processing year will produce an estimated 350,000 pounds of zinc powder from 2,000 tons of Blackstone ore, representing about .007% of Reserves. The success of the Technology will depend on the Company’s ability to:

(1) Efficiently dissociate the zinc oxide byproduct of hydrolysis into zinc powder; and(2) Repeat the hydrogen production cycle multiple times.

The more times the zinc oxide-to-hydrogen reaction is repeated, the greater the income from the ore. Repeating the hydrolysis reaction 10 times on a single ton of Blackstone ore increases the hydrogen gross value to about $4,500 per ton. Blackstone ore also contains commercial quantities of lead, copper, silver, and gold that are recovered as a byproduct of the zinc-to-hydrogen conversion process.

Zinc oxide dissociation to zinc powder occurs at temperatures above 1794o C with about 90 percent efficiency. A small portion of the zinc oxide remains unaltered from the dissociation reaction but is not lost in the process. The dissociation temperature of 1794o C can be reduced as much as 25% by the addition of readily available bio-mass to the reactor from the farmlands adjacent to the Blackstone.

The frequency with which the resulting zinc powder can be reused may vary in actual practice although test results from the European Union’s SolZinc project suggest a reuse factor of at least 10 times is attainable. If the Company reaches its first full-year zinc powder production goal from the pilot plant

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without reusing any zinc powder, income from the sales of hydrogen, zinc oxide, and matte bullion would be about $3.78 million. If zinc oxide can be successfully dissociated to zinc powder 10 times, income would rise to about $13 million from the 10 ton per day pilot facility.

MARKETS Polymetallic by-products Initially the copper, silver, gold, and lead matte bullion produced as a by-product of the zinc ore to hydrogen process will be either sold or refined under custom smelting agreements with processors such as Asahi Refining, Salt Lake City, Utah (formerly Johnson-Matthey), Teck Resources, Trail, BC (formerly Cominco), ASARCO, Hayden, Arizona or smaller base and precious metals refiners in the region depending on the most lucrative terms.

At its option, the Company can further refine the matte bullion by-product on site separating the precious metals from the base metals and marketing the metallic components separately. We believe during initial operations off-site custom refining is more advantageous.

Zinc Oxide While we anticipate almost all of the zinc oxide (ZnO) that precipitates as by-product of the hydrogen production phase to be dissociated to zinc powder for the off-site production of hydrogen (zinc hydrolysis) ZnO could can also be sold directly to any of the 420 chemical distributors in the US such as UINVAR (Van Water & Rogers) , EMCO, LinTech or Nexeo.

With the addition of a homogenizer to the processing circuit the zinc ore to hydrogen processing circuit can produce Nano-particle size, reagent grade zinc oxide which could be sold through distributors such as Sigma-Aldrich, Fisher Scientific, or Avantor at prices of 10 to 15 times higher than that of industrial grade ZnO.

Hydrogen In the zinc ore fuming phase of the hydrogen production cycle, excess hydrogen will be designated as ‘direct delivery’ for marketing to customers in the agricultural, fertilizer production, semi-conductor manufacturing, petroleum refining, and metals fabrication, metals finishing, and precious metals refining industries within a radius of about 300 miles of the Blackstone. The area designated as the ‘direct delivery’ market results from Department of Transportation limitations for hauling hydrogen on US roads.

For example, hydrogen costs about $19.00 per kilogram delivered. The DOT weight limit for hauling hydrogen is 768Kg or $14,600 per semi-truckload. The adjusted cost per ton-mile estimate for hydrogen delivery is $9.65 or about $ 2,900 for deliveries on the perimeter of the 300 mile Blackstone direct delivery zone resulting in a minimum gross profit of $11,700 when sold at prevailing market prices. The available profit allows Blackstone to significantly undercut competing industrial gas distributors within the direct delivery zone.

Potential Blackstone hydrogen direct delivery customers include Micron Technologies, Hewlett Packard, JR Simplot Company, Ore-Ida Foods, Idaho National Laboratories, Norco, Foreland Refining, Big West Oil, Chevron, Tesoro, Holly Frontier, and Silver Eagle Refining, all within a 300 mile radius of the Blackstone. Conversely using Blackstone zinc hydrolysis reactors for off-site hydrogen production reduces delivery costs to approximate $0.42 per ton mile for the transportation of Blackstone zinc powder for the zinc hydrolysis reaction. We believe Blackstone’s remote hydrogen production technology can reduce the cost of hydrogen to the point it is cost competitive with $2.50 per gallon gasoline or about $7 per Kg.

Current markets for Blackstone off-site hydrogen production include the following:

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Oil Refineries Refineries use hydrogen to lower the sulfur content of diesel fuel. Refinery demand for hydrogen has increased as sulfur-content regulations have become more stringent. Much of the growth in hydrogen use at refineries is being met through hydrogen purchased from merchant suppliers rather than from increased hydrogen production on-site at the refinery.

Major hydrogen treatment processes in oil refineries: • Hydrodesulphurisation: Sulphur compounds are hydrogenated to hydrogen sulphide• Hydroisomerisation: Normal paraffins are converted into isoparaffins• Dearomatisation: Aromatics are hydrogenated to cycloparaffins or alkanes• Hydrocracking:Long-chain hydrocarbons are cracked to shorter chains in the gasoline range

Utility Power Generation The United States, China, and the European Union, are world's largest emitter of global warming gases accounting for well over 50% of the world's carbon dioxide emissions primarily from the burning of fossil fuels. Numerous government agencies as well as private industry are actively investing in alternative fuel for the generation of electrical power. Blackstone zinc powder and the Company’s remote hydrolysis reactors offer an economical solution for replacing diesel and coal fired electrical generation.

Electronics Manufacturing Semi-conductor manufactures us hydrogen for the epitaxial deposition of silicon (Si) and silicon germanium (SiGe), as well as for surface preparation. Hewlett Packard (printer division) and Micron Technologies, leading producers of computer memory modules and semi-conductor circuits, are located about 90 miles from the Blackstone in Boise, ID. Moreover, significant additional volumes of hydrogen will be needed for extreme ultra violet lithography (EUVL) as the semi-conductor industry transitions to 450mm wafers.

Ammonia Manufacturing Ammonia is one of the most highly produced inorganic chemicals where hydrogen is combined with nitrogen to produce ammonia via the Haber-Bosch process.

Mining Mining is particularly well-suited to vehicles powered by the hydrogen fuel used in the locomotives, loaders, underground drilling, electrical generation, ventilation, mucking equipment etal. Zero emissions, low noise, high power density, low temperature and pressure operation and component durability are well matched to underground and open pit applications.

Luminous Paints Radio-luminescent paints require a radioactive isotope of hydrogen that emits very low-energy beta radiation. The devices are similar to a hermetically sealed fluorescent tube coated inside with a phosphor and filled with tritium.

Food and Beverage Hydrogen is commonly used for vegetable oil processing to remove carbon-carbon double bonds, resulting in a solid or semi-solid fat. Hydrogenation results in a longer shelf life with more culinary flexibility.

Other Hydrogen volume users Biotechnology, Glass, Welding, Plastics, Pharmaceuticals, Alternative Fuel, Fuel Cells, and Rubber Manufacturers who use about sixty-percent of the world’s zinc oxide production.

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HISTORY OF THE PROPERTY

The Blackstone Mine is one of the largest and most prominent properties in the Volcano Mining District. As early as 1870, prospectors in search of gold and silver discovered numerous strong mineral-bearing outcrops at the Blackstone.14 Since that time the Property has been the subject of intense professional interest.15 In 1903, the Property was acquired by former Idaho Governor James H. Hawley and his partner, Samuel Rich, who patented the claims in the name of Blackstone Mining Company, Ltd.16

The Property lies on the north flank of the Bennett Mountains at an average elevation of 5,850 feet. The surrounding terrain consists primarily of eroded hills cut by dry gullies. Vegetation is mainly sagebrush, mountain birch with light scrub, and alfalfa hay fields in the valleys. There is a small running creek and additional water can be obtained from wells drilled at the property or in the valley west of the main working. The Company has defined water rights singularly for its own use.

In the early 1900s, Blackstone Mining Company began development by driving an approximate 60-foot crosscut tunnel. This work is reported to have cut a six-foot wide vein from which three carloads (about 50 tons) of ore were shipped. The reported assay value was 15 percent copper and zinc, 30 ozs. silver, and .04 ozs. gold per ton.17 The initial shipment would be valued at about $94,000 at current prices.

In 1936, the Volcano Mining Company operated the Property under lease and shipped at least 54 tons of so-called “mine float” (ore left on the surface of the Property from prior mining) to the United States Smelter at Salt Lake City, Utah. Table 2 shows the returns from the smelter as shown in the Company’s records.

Known primary metals are copper, gold, lead, manganese, silver, and zinc. Small amounts of nickel, rare earth elements, and traces of palladium have been reported in some fire assays and atomic absorption spectrophotometer analysis.

14 Frank E. Johnesse, “Report on the Revenue Group of lode mining claims in the Volcano Mini District, Elmore County, Idaho,” Boise, Idaho: Unpublished manuscript, January 3, 1932. Johnesse was manager of the Lark Mining Company in the Wood River Mining Dist rict and a candidate for Idaho Inspector of Mines in 1920.

15 See Robert N. Bell, “Another Butte in southern Idaho?” Northwest Mining Truth (November 20, 1930): 5–6.; Rhesa M. Allen, Geology and ore deposits of the Volcano district, Elmore County, Idaho, Moscow, Idaho: University of Idaho, unpublished M.S. thesis (1940); Rhesa M. Allen, “Geology and mineralization of the Volcano District, Elmore County, Idaho,” Economic Geology, 47, 8 (1952): 815–821; Richard F. DeLong, Geology of the Hall Gulch plutonic complex, Elmore and Camas counties, Idaho, Moscow, Idaho: University of Idaho, unpublished M.S. thesis (1986); Earl H. Bennett, The geology and mineral deposits of part of the western half of the Hailey 1º×2º Quadrangle, Idaho, Washington, D.C.: U.S. Geological Survey Bulletin 2064-W, prepared in cooperation with the Idaho Geological Survey, Idaho State University, and the Un iversity of Idaho (2001).

16 The Company, Blackstone Mining Company, Ltd., was formed as an Idaho corporation in 1987 and is the successor-in-interest to the corporation formed by Hawley and Rich in 1903.

17 George I. Vasilhoff, “Preliminary report on the Blackstone Mine Property,” Boise, Idaho: Unpublished manuscript, October 1984.

TABLE 2: VOLCANO MINING COMPANY SHIPMENTS (1936) Tons Shipped Copper (%) Silver (oz./ton) Gold (oz./ton)

22.82 2.6 11.1 0.07 31.17 2.3 5.5 0.04

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GEOLOGY

In 1984, University of Idaho Geologist Richard F. DeLong mapped about 11 square miles of the Bennett Mountain area, including the Property. The southern part of DeLong’s map consists mainly of granodiorite intrusive of tertiary age in contact to the north and east with tertiary and quaternary volcanic magmas. The main mass of tertiary intrusive has several windows exposing older (cretaceous) intrusive consisting mainly of granodiorite and related rocks that form the main body of the Idaho Batholith. The tertiary intrusive is also cut by a number of east-west striking dikes and quartz veins of tertiary or later origin.

Mineralization exposed by exploration and development is confined to an east-west striking zone of structural weakness in the cretaceous intrusive, which lies mainly in section 13, 14 and 15 which is the location of the Blackstone Mine. Principal minerals present are chalcopyrite, galena, sphalerite, malachite, and magnetite associated with quartz monzonite, and carrying varying silver, copper, zinc, and gold values. Surface mineralization is highly oxidized but some chalcopyrite has been noted in the pit about 40 feet below the original surface.

Another large exposure of the cretaceous intrusive occurs mainly in sections 13 and 18, to the southeast of the known mineral zone, although this area has not been sampled in detail. DeLong considered it favorable for similar mineral deposition to the known zone at the Property.18

Surface development through 1987 consisted primarily of a 100 x 600 foot open pit located near the eastern end of the five-patented-claim block. The open pit is developed on two east-west trending structures. Quartz veins and stockwork are developed along these structures. The adjacent rock is intensely altered.

18 Vasilhoff 1984; DeLong 1986.

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At the surface, the southern structure hosts a stockwork that contains sulfides and intense alteration. The sulfides consist of pyrite, chalcopyrite, sphalerite, and galena as the major phases. In thin section, bornite or digenite rims can be seen around most of the chalcopyrite. Surrounding the stockwork are three distinct zones of alteration with mineralization. The zones from the stockwork outward are: a sulfide-epidote zone, a sulfide-sericite zone, and a sericite-manganese oxide zone.

The alteration in the sulfide-epidote zone is pervasive and extensive, with all original textures being destroyed. Alteration minerals include epidote, chlorite, and sericite. This alteration forms a ten foot (3 meters) wide zone around the stockwork. Silicification within this zone is relatively minor, but there are veins of quartz and epidote, with relict sphene.

The mineralogy and style of alteration is similar to that of the fragments in the stockwork. The epidote ranges in size from 25 microns up to 1 millimeter. The finer-grained epidote is spatially associated with the veinlets. Sericite occurs as a fine-grained felty mass evenly distributed through the rock, and ranges in size from less than 2 to 200 microns. Chlorite also occurs as fine-grained patches throughout the rock. Apatite is present in this zone of alteration and is associated with the quartz veinlets. Calcite is present in this zone and is associated with the epidote and iron oxides. Iron oxides are most abundant near the outer edge of this zone where they comprise as much as 35 percent of the rock. The sulfides are most likely pyrite, chalcopyrite, and galena.

The sulfide-sericite zone of alteration has an elongate, elliptical shape that varies in width from 10 to 42 feet. Alteration is both selectively pervasive and veinlet-controlled. Alteration minerals include fine- grained patches that are up to two millimeters in diameter. The sericite is well developed and occurs as fine-grained masses in the rock. The grains are 1 to 40 microns in size. Some of the sericite is associated with the quartz stringers. Sericite also replaces epidote in this zone. The sulfides are primarily pyrite and chalcopyrite.

The sericite-manganese oxide zone is the most widespread alteration associated with the deposit. The zone encloses other zones of alteration, but is not uniform in width. The alteration is both selectively pervasive and veinlet-controlled. The former is dominant near the stockwork. Sericite is 1 to 500 microns in size and is an alteration product of the plagioclase and potassium feldspar. Manganese oxide occurs as disseminated grains throughout the zone. The manganese oxide is a soft, sooty material that does not have a distinctive X-ray diffraction pattern.

Electron microprobe analysis indicates a significant amount of zinc associated with the manganese. The biotite occurs as fine grain aggregates associated with the iron oxides. This type of alteration also forms a linear zone north of the main structure. Nine of the ten reverse circulation holes drilled by Hambro Resources intersected at least one of the two known mineral structures. Other minor, parallel mineral structures were intersected in several of the holes.

The south structure, which is exposed in the pit, hosts multiple well developed fifteen foot quartz veins at depth. Sericite-pyrite alteration forms halos around the veins. Several minor zones of sulfide-epidote were intersected in some of the Hambro drill holes. The geologic target for silver mineralization appears to be the quartz veins and adjacent altered host rock.

Cross-sections and plan views of the deposit show a series of at least 10 east-west trending structures, most of which have a significant amount of fault gouge. The quartz veins occurring along these structures have a pinch and swell structure. The veins generally have a greater vertical than horizontal

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extent forming shoots and pods. The structures and quartz veins strike in an east-west direction and dip north between 50º and 70º.

At the surface, the southern structure is about 70 feet wide and the northern structure is about 40 feet wide. At depth, the two structures converge with a well-developed zone of altered rock between them. The combined thickness of the structures is 90 feet to 130 feet. Horizontal extent of the body is about 600' in the drilling area. Faults and altered host rock are exposed at the surface, 200 feet to 300 feet west of the current development. The vertical extent of the structures is at least 300 feet to 400 feet, down dip, as indicated by the drill holes.

The last exploratory drilling in 2002 was a small series of vertical holes from the outcrop’s apex that yielded low metallic values of copper and zinc with heavy alteration, indicating the bulk of the ore structures dip to the north of the outcrops towards the Camas Prairie.

Geological data suggests the Blackstone ore body is an intrusion from the Idaho Batholith, meaning the Property could have commercial ore values as deep as 6,000 feet below the outcrop. Exploratory drilling has been confined to the vadose (dry) zone of the Property, intercepting mostly oxidized ore. Atomic absorption spectrophotometer analysis and smelting tests on Blackstone ore samples have yielded small amounts of nickel and traces of palladium in addition to minor concentrations of rare earth elements. It remains to be seen whether the presence of these metals is an anomaly, or if their recovery will develop into meaningful quantities at depth.

DEVELOPMENT OF THE PROPERTY BY PRIOR LESSEES

Circa, Incorporated (1982-1984) In 1982, Circa Incorporated (“Circa”), a Utah mining company, leased the Property and began initial development of the Blackstone pit. Circa submitted a series of samples to Kennecott Copper’s smelter in McGill, Nevada to determine if the ore contained sufficient silica and metallic values to warrant smelting without prior concentration. The pyrometallurgical tests resulted in a 92 percent recovery of the metals in the ore and an agreement to accept “mine-run” ore directly from the Property.

Prior to commencing ore deliveries, a worldwide oversupply of copper sent prices plummeting and the Blackstone ore consignments were put on hold. In the spring of 1983, Kennecott closed its McGill facility and the ore purchase contract was cancelled. With the closure of the McGill smelter, there were no custom ore processing facilities close enough to the Property for economically feasible shipping mine run ore.

Facing soft metals-market prices, Circa turned to hydrometallurgical ore processing as an alternative for recovering the metallic values from the Blackstone ore. In 1984, Circa shipped about 4,000 tons of Blackstone ore containing about 25 ounces of silver, 60 pounds of copper, nearly 100 pounds of zinc, 30 pounds of lead, and .10 ounce of gold per ton to a small hydrometallurgy mill in Mountain Home, Idaho. The mill utilized a dilute sulfuric acid leach introduced to a finely ground ore slurry in series of agitation tanks. The acid based leaching process left a high percentage of both the base and precious metals in the tailings as the sulphide minerals in the mill feed were not soluble.

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Hambro Resources, Inc. (1984-1985) In the fall of 1984, George Vasilhoff, MME, PE, a consulting engineer, compiled an initial engineering report on the Property for Hambro Resources, Inc., a Canadian resources company (“Hambro”). Vasilhoff examined the pit area previously developed by Circa, as well as the surface showings to the east of the pit. He reported the pit was an east-west striking trench about 600 feet long and an average of 100 feet wide about 25 feet below the original surface. About 180 feet at the east end of the pit had been cleaned sufficiently to permit sampling of the mineralization.

Vasilhoff cut six 20-pound channel samples from the floor of the pit in widths varying between 40 and 110 feet. The samples were crushed, split to about five pounds each, and submitted to Chemex Laboratories in Reno, Nevada. The results are shown in Table 3.

TABLE 3: PRELIMINARY SAMPLES

Sample Copper (%) Lead (%) Zinc (%) Silver (oz./ton) Gold (oz./ton) Location

7751 1.48 0.24 0.36 12.00 0.003 W pit, 44' N-S channel 7753 0.64 4.24 3.01 3.90 0.003 E pit, 35' N-S channel 7754 0.4 0.13 0.27 2.80 0.003 E end, 90' W 37' N. channel 7755 0.51 0.1 0.17 3.90 0.003 E end, 90' W 16' N. S. channel 7756 0.76 0.18 0.11 5.07 0.006 E end+ 120' W, 30' N-S channel 7757 0.4 1.78 2.17 4.94 0.003 Grab discovery pit 1 7758 0.02 0.05 0.06 0.17 0.003 Grab discovery pit 2

Source: Vasilhoff 1984

Based on the results of the preliminary samples, Vasilhoff ordered 10 more channel samples cut across the pit floor over a strike length of 180 feet with each sample being 45 to 60 feet in width. These samples were crushed and split in the same manner as the previous samples, with a split of each being submitted to Chemex Laboratories. The results are shown in Table 4.

Based on Vasilhoff’s analysis, Hambro optioned the Property lease from Circa. Hambro drilled nine reverse-circulation exploratory holes in the pit region to determine the possibility of expanding pit development. The drill results confirmed Vasilhoff’s analysis and Hambro began exploring financing options to further develop the Property.

Richwell Resources, Ltd. (1986-1988) In 1986, Richwell Resources assumed Hambro’s lease of the property, conducting an extensive diamond- core drilling program resulting in the calculation of proven and indicated Reserves at the Property. Richwell further developed the pit by mining and stockpiling about 35,000 tons of ore reported by the company’s chief consulting geologist to contain in excess of 4 percent copper, 12 percent zinc, 20 ozs. silver per ton, and .04 percent gold per ton.19

19Richard E. Kucera, PhD, FGAC, “Gross value of proven ore reserves at the Blackstone Mine, Elmore County, Idaho,” Vancouver, B .C.: Unpublished manuscript (May 16, 1996).

TABLE 4: SAMPLES SENT TO CHEMEX

Sample Gold (oz./ton) Silver (oz./ton)

1 .008 2.57 2 .012 2.57 3 .006 4.33 4 .010 5.91 5 .012 8.51 6 .016 7.53 7 .020 4.82 8 .016 7.84 9 .018 17.28

10 .003 8.52

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About 4,000 tons from the Stockpile were shipped to Richwell’s hydrometallurgical mill in Gooding, Idaho. The mill used an ammonium thiosulfate leach with a dilute hydrochloric acid bath to separate the silver. The results were similar to those obtained by Circa, leaving most of the metals in the tailings.

Richwell then switched to a dilute ph2 sulfuric acid pond leach of minus 3/4-inch crushed ore. The leach dissolved enough copper to produce commercial amounts of agricultural grade copper sulfate (Cu2SO4) and electrolytic zinc, though a high percentage of the base metals values and nearly all of the precious metal remained in the tailings.

PILOT PLANT OPERATIONS

Previous mine operators have demonstrated that hydrometallurgy is an ineffective method for processing ore from the Property. Conversely, tests on the lower-grade values in the granodiorite zone surrounding the pit indicate the ore is amenable to common leaching techniques; hence the designation of “leach- grade” ore zones to describe the proven and indicated ore Reserve calculations for the Property.

The success of the Kennecott Copper tests in recovering 92 percent of the values in the Blackstone ore is an obvious solution for treating Blackstone ore. Copper smelting dates back to 5000 BC, and the underlying chemistry has not substantially changed. Technological improvements allow us to install a small-scale, automated, single-step pyrometallurgical processing circuit to recover most of the values in the Stockpile while simultaneously producing (1) hydrogen fuel for self-sustained operations, and (2) zinc powder for off-site hydrolysis without the use of fossil fuels.

Building a high-capacity smelter or concentration plant without much larger proven reserves is cost prohibitive. Therefore, we believe an initial pilot sized processing facility allows us to profitably manufacture hydrogen while recovering significant polymetallic values from the Stockpile and in-situ reserves presents a unique opportunity to:

• Develop off-site localized hydrogen production facilities using a combination of Blackstone- produced zinc powder, and solar energy;

• Earn significant profits from the sale of polymetallic by-products of on-site hydrogen production;• Produce reagent grades of zinc oxide that can be marketed at prices well above metallic zinc or

industrial grade zinc oxide;• Expand hydrogen compatible ore reserves at the Blackstone significantly increasing the value of

the property;• Prosecute our US Patent Pending process for converting zinc ore to hydrogen fuel;

The planned processing facility will be energy self-sufficient producing hydrogen from the closed circuit vaporization of the zinc contained in Blackstone ore. Zinc vapor combined with water (zinc hydrolysis) results in hydrogen gas which will be used for powering the processing facility with the excess sold to customers in the Blackstone’s direct delivery area (300 mile radius).

The initial by-product of the reaction is non-toxic zinc oxide most of which will be dissociated into zinc powder using a combination solar-hydrogen reactor capable of temperatures above 18000 centigrade. Blackstone zinc powder primary use will be for off-site hydrogen production at or near volume customer locations throughout the US. Blackstone off-site hydrogen production technology has the capability of evolving into a nationwide distribution system for hydrogen fuel. As our technology evolves we believe

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the patent pending process20 will become a major factor in reducing greenhouse gases and a slowing the growth of climate change.

The Blackstone is particularly rich in zinc ore providing an abundant supply of near-surface in-situ hydrogen compatible ore in addition to the Stockpile for the production of hydrogen, zinc powder and matte bullion. While the processing volume of the proposed pilot facility is initially small we believe the operation will return a sizable profit in the marketing of hydrogen, various grades of zinc-oxide and lead, silver, copper, gold matte bullion. As shown in the pro-forma cash flow processing volumes will be increased incrementally resulting in a proportioning rise in income (see pages 73 through 75).

ZINC-TO-HYDROGEN PROCESSING CIRCUIT

Hydrogen-compatible ore from the Stockpile is screened and graded where the cut-off grade for processing will be five-percent zinc (100 lbs./ton). The feed ore is crushed to -¾ inch in a hydraulic crusher bucket attached to a hydrogen powered track-type backhoe/loader and loaded into a hydrogen powered tandem axle dump truck (10 ton capacity) as it is crushed and hauled to a receiving hopper at the processing facility.

Feed ore grading at the crushing site is done with a hand-held XRF spectrograph to ensure a cut-off grades meet specification. XRF technology uses a unique set of characteristic X-rays for each metal, creating a metallic “fingerprint” and allowing the device to calculate the concentrations of specific metals in the ore for the processing plant.

At the plant, the ore will be dry-ground to -200 mesh and heated to temperatures above 400°C in a Waelz type kiln oxidizing the ore’s sulfide component. Blackstone zinc occurs primarily as the mineral sphalerite (ZnS) and the balanced equation for roasting is: 2 ZnS + 3 O2 → 2 ZnO + 2 SO2.

Sulfur from roasting is evacuated to a scrubber containing calcium oxide (lime) to convert the it to calcium sulfate a marketable fertilizer at about $0.25 to $0.50 per pound depending on volume and packaging. The gaseous product of the sulfide roasting, sulfur dioxide (SO2) can also be used to produce sulfuric acid marketable at about $315 per ton.

Following roasting, the ore is fired in a two-stage, graphite-lined electric kiln at temperatures above 9070

centigrade the temperature at which zinc boils. The vaporizing process is similar to the zinc fuming methodology patented in 1910 by Edward Dedolph. The reaction of zinc vapors with water precipitates zinc oxide and releases hydrogen (known as water splitting) without the use of fossil fuels.

During the zinc vaporization phase, a collection vessel (hydrolysis reactor) fills with hydrogen liberated from the hydrolysis reaction while a pneumatic filtering system inside the reactor removes the zinc oxide byproduct. Periodic bursts of air to pneumatic powered filter cartridges release the collected zinc oxide while the hydrogen is stored in a minimum 350 bar (5000 psi) pressurized tank. A vacuum pump removes the zinc oxide into a separate storage vessel as it collects in the base of the hydrolysis reactor.

20 USPTO file no. 62/391773, filed May 10, 2016.

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Blackstone zinc to hydrogen processing is a variation on the zinc oxide manufacturing developed in France in 1844 commonly known as the French process which is used in virtually all commercial production of zinc oxide worldwide.

When the hydrogen process is complete the remaining ore (calcine) is mixed with soda ash and borax glass and the kiln temperature is raised above 1200°C. The molten metals are tapped from the bottom of the kiln into molds as an agglomeration of metallic lead, silver, gold, and copper matte bullion which is sent to a refiner for final separation and sale.

Zinc powder is produced by dissociating zinc oxide using a solar-hydrogen powered graphite-lined reactor designed to produce temperatures in excess of 1800°C. Adding an inert gas atmosphere or bio- mass to the dissociation reactor allows the dissociation reaction to complete at more manageable temperatures of 1300°C to 1500°C. The dissociation reaction typically completes to above 90%.

The pilot processing facility is an end-to-end process for producing hydrogen, dissociating zinc oxide to zinc powder, and the recovery of lead, silver, gold, and copper matte bullion from Blackstone ore. The process will be highly automated and computer controlled using proprietary software authored by the Company.

The Blackstone processing circuit offers a number of advantages: • Cost-efficient hydrogen production• Recovery of Copper, Lead, Silver, and Gold as matte bullion• Energy self-sufficiency• Zero emissions• Clean energy• No greenhouse gasses• No carbon footprint• Off-site hydrogen production• Viable alternative to fossil fuels• Potable water exhaust• Zinc oxide solar power storage• Calcium sulfate fertilizer production• Nano-particulate reagent manufacturing

Plant capacity vs. reaction time Pyrometallurgical processing involves more than just melting the metal out of the ore. Blackstone ores are a mixture of metallic oxides, sulfides, and carbonates. To extract the metals, the ore has to undergo a series of chemical reactions. Based on the Kennecott tests, zinc fuming and metallic matte recovery is expected to take between two to four hours per one-ton kiln, including downtime for loading, tapping, and resuming processing temperatures.

Time affects processing capacity. The longer it takes to complete a processing cycle, the lower the plant capacity. If a four-hour processing cycle proves sufficient, dual kilns should yield several tons of excess capacity beyond the 10-ton per day design capacity. Extended processing times will require the addition of more kilns increasing power consumption and potentially labor costs.

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Grades and Purity With the exception of cadmium, zinc has the lowest boiling point of the metals in the Blackstone ore. Although the ore contains trace amounts of cadmium, we expect the temperature processing shifts to result in high purity hydrogen, zinc oxide and zinc powder for manufacturing off-site hydrogen. Zinc oxide not dissociated to zinc powder will be converted to reagent grade zinc oxide where prices range between $15 to as much as $190 per pound.

Zinc oxide is an inorganic powder that is insoluble in water and is widely used as an additive in rubber, plastics, ceramics, glass, cement, lubricants, paints, ointments, adhesives, sealants, pigments, foods, batteries, ferrites, fire retardants, first-aid tapes, and pharmaceuticals.

Worldwide consumption of zinc oxide is over 1.4 million tons per year; rubber manufacturers consume about 60 percent of the supply; electronics, ceramics, chemical, pharmaceutical, pigmentation, and agricultural industries use the remaining 40 percent. The dominant supplier is China.

On-site power Electricity for the processing circuit will be generated on-site from solar and hydrogen powered in-line generators. The primary generator capacity is sufficient to power two 35Kw electric kilns and the materials-handling equipment. A second hydrogen-powered generator will provide power for plant lighting, utilities, laboratory, crew quarters, and appliances. A third generator will provide power for the zinc oxide dissociation reactor and zinc oxide/zinc powder materials handling circuit. Backup and stand- by power will be available from a solar-power array using zinc-air battery storage.

The Stockpile and hydrogen-compatible reserves contain sufficient volume to provide feed ore for the zinc ore to hydrogen processing plant for 25 years at 40-tons-per-day, four times the size of the processing circuit described herein.

Environmental regulations While the planned processing circuit is confined solely to private property, we will still be required to obtain permits from the Idaho Department of Environmental Quality (DEQ) for fugitive dust and particulate emissions.

By design, the pilot plant is closed circuit and virtually emissions free. Sulfur dioxide from the sulphide ore roasting phase will be contained in a scrubber charged with calcium oxide (lime). The zinc fuming and hydrogen production phase are contained in pressure vessels and hydrogen storage tanks. Emissions from the matte bullion recovery phase also flow to a calcium oxide scrubber resulting in negligible atmospheric discharge.

Based on the use of hydrogen as the primary energy source the pilot plant is expected to have near-zero emissions well within those defined as permissible by the DEQ. Other than the receiving hopper and the ore crushing at the Stockpile, the processing circuit will be contained completely within an approximate 6,000 square feet steel building.

Final design and installation of the processing circuit will be under the direction of a professional engineering firm familiar with state environmental regulations and meeting the requirements of the permitting process. Engineering firms in Boise such as Forsgren Associates, Hildebrand & Associates, or Brown & Caldwell are fully qualified to oversee the design, construction and permitting and will be retained subject to financing.

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Staffing The automated materials handling and electric kiln operation are not labor intensive. The processing circuit can be operated with a four-person daytime staff, plus a manager and three additional workers for reloading the kilns on the night shift. There are a number of communities within a 15 to 90 mile radius of the mine, including Boise, Idaho (metro population 700,000) that have sizeable labor pools.

A professional chemist with extensive experience in thermochemical and metallurgical reactions will manage production. Executive management will direct Blackstone’s finances, administration, marketing, product distribution, matte bullion sales, off-site hydrogen expansion, and on-site oversight of the hydrogen production process.

The pilot plant will operate 22 days per month with the initial operating season beginning in mid-March through the end of November, and extended to the entire year thereafter. Although Elmore County does not maintain the access road in the winter months, the Company is authorized to plow the road at its own expense. During downtime, the zinc to hydrogen processing circuit will be idled for maintenance, inspections, and repairs.

Product shipping, security, and communications The pilot plant is anticipated to produce up to 35 tons of copper/silver/gold matte monthly, which will be shipped weekly to a refinery, most likely in Salt Lake City, Utah, on a Company-operated truck. Salt Lake City is about a five hour drive from the mine, primarily on Interstate highways. The facility will also produce about 40 tons of zinc oxide each month, most of which will be converted to zinc powder. Both products will be staged in Boise for shipment by common carrier for off-site hydrogen manufacturing or sale. In addition to zinc powder the Company believes it is also positioned to produce reagent grade zinc oxide at prices above $10 per pound. Company-operated vehicles used to ship product will be GPS monitored for location, mileage, and speed.

Broadband satellite will be the primary communications link, although cellular telephone service is available in certain spots on the Property. The pilot plant and surrounding area will be under 24-hour closed circuit television surveillance and digital video recording. Live and recorded video will be accessible by local monitors in the plant and over the Internet. Entrance to the processing plant, reagent and product storage areas, laboratory, and overhead roll-up doors will be controlled by touch-pad locks.

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DIRECTORS OF BLACKSTONE MINING COMPANY, LTD.

James Hawley, President & Director Mr. Hawley is extremely knowledgeable about the Blackstone, having served as an officer and director of the publicly traded entity that operated the Property under lease from 1984 to 1988. During his tenure he structured two public offerings that provided over $4 million for drilling and pit development. He also managed the lessee’s securities aftermarket from its beginnings as a penny stock to market highs above $3.00.

During the period Mr. Hawley was also intricately involved in both hydrometallurgical and pyrometallurgical pilot scale milling focusing on the recovery of the silver and copper values in the Blackstone ore. His experience in the early 1980s with Blackstone ore tests at Kennecott Copper, a working relationship with the US Bureau of Mines in Salt Lake City, and study of the European Union SolZinc project are the foundation of Blackstone’s zinc ore to hydrogen patent pending process.

Mr. Hawley’s specific expertise and knowledge of the Blackstone and the zinc to hydrogen technology uniquely qualifies the Hawley Family Trust to choose a team of qualified geological, engineering, and chemical professionals to manage the project.

His business experience includes positions as an executive officer and director of two publicly traded corporations, director of operations in the restructuring of two international insurance companies, a real estate developer specializing in the construction of planned unit developments, and CEO of a privately held multi-state broadband distribution enterprise.

Mr. Hawley is also an experienced senior computer technology executive skilled in the design, development, and distribution of nationwide IPTv digital video networks and software for the hospitality and multi-family housing industries.

A pioneer in On-Demand Television including the establishment of the initial digital encoding and secure distribution standards for feature length films in association with the Motion Picture Association of America (MPAA). He also has particular expertise in the licensing of feature- length films from the major motion picture studios and the syndication of television programming across major US broadcast networks.

Mr. Hawley is fluent in a number of computer programming and database languages, including Pascal, DOS, HTML, PHP, SQL, MySQL, Java, and Embarcadero Delphi® integrated development environments. He is skilled in the installation and configuration of Microsoft® network servers, Windows operating systems, Payment Card Industry secure payment processing systems, digital video production, including the coding and distribution of native computer, Web, and mobile software applications.

Mr. Hawley attended Seattle University for four years, with an additional year at Boise State University, majoring in political science and journalism. He also studied French language and culture as an exchange student at Cité Internationale Universitaire de Paris, and metallurgical science at the U.S. Bureau of Mines Laboratory on the University of Utah campus.

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Marilyn Green, Secretary/Treasurer & Director Ms. Green is also highly knowledgeable about the Blackstone, having served as an officer and director with Mr. Hawley for the publicly traded lessee of the property. She has extensive experience in the securities industry and in risk management assessment, working with Mr. Hawley to reorganize two international insurers writing reinsurance and surplus lines coverage. As an NASD-licensed Financial Principal, Ms. Green served as

managing executive for Royal Alliance, a SunAmerica Company and member of the New York Stock Exchange. She held previous brokerage positions with The William J. Green Company and Paulson Investment Company.

Kaili Anne Hawley, Director Ms. Hawley has a strong background in marketing, with experience as marketing manager for Cal-Med in Newport Beach, California; clinical informatics specialist with Saint Alphonsus Health System in Boise, Idaho; Kareo Health Systems, Irvine, California; Palomar Health, San Diego, California; and as a consultant for Medicare Services Meaningful Use implementation for hospitals and clinics in southern California. She holds a B.A. in communications and an M.A. in organizational management and international business from Antioch University.

Christopher Hawley, Director Mr. Hawley is the principal of Hawley + Associates, a marketing practice he founded in 1984. Clients have included Oregon Steel, Ore-Idaho Foods, J.R. Simplot, and Boise Cascade, as well as numerous professional service businesses. He was an instructor in communication and political science at Boise State University and the University of Idaho.

Mr. Hawley and Ms. Green’s specific expertise and knowledge of the Blackstone and the zinc to hydrogen technology uniquely qualifies them along with the otherHawley Family Trust members input to choose a team of qualified geological, engineering, and chemical professionals to manage the Blackstone zinc to hydrogen process.

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FINANCIAL STATEMENTS

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Blackstone Mining Company, Ltd. Balance Sheet June 30, 2017

(A pre-revenue stage Company)

ASSETS

Current assets

Cash in bank 24,446

Accounts receivable 4,572

Total current assets 29,018

Fixed assets

Furniture and fixtures 7,200 Improvements by prior lessees1 4,600,000 100-acre mining property valued as agricultural land2,3 500,000

Total fixed assets (net of depreciation) 5,107,200

Total assets $ 5,136,218

LIABILITIES AND EQUITY

Current liabilities

Bank line of credit 2,335 Property taxes payable 1,050

Total current liabilities 3,385

Total liabilities 3,385

Owners’ equity

Invested capital 5,132,833

Total owners’ equity 5,132,833

Total liabilities and equity $ 5,136,218

The accompanying notes are an integral part of these financial statements.

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Notes to Blackstone Mining Company Ltd. Balance Sheet

(1) Assumptions. During the period 1981 through 1989, three lessees Circa, Inc., Hambro Resources,and Richwell Resources expended, in the aggregate $4,600,000 in development and improvementsto the Blackstone Mine, resulting in proven ore reserves that have been independently valued in areport by geologists Richard E. Kucera, PhD, FGAC, and Andrew Egan, B.Sc.

Adjusted for inflation money expended for development and improvements would exceed $15million.

(2) Value of the land based on comparable sales in Elmore County and Camas County, Idaho.

(3) While not presented through the Balance Sheet the value of the Blackstone property increasessignificantly when compared to mineral properties of similar or lesser value for sale in the westernUnited States. Comparable listings are as follows;

Victoria Copper Mine Location: Elko County, Nevada Patented claims: 5 Unpatented claims: 121 Resources:

• 1.4 million tons of proven ore grading 0.35 ounces of silver per ton and 2.15% copper• Probable ore reserves of more than 500,000 tons

Asking Price: $55 million

Darwin Mines Location: Darwin, California Patented claims: 0 Unpatented claims: 40 Resources:

• Estimated total value: $13.3 billion• Surface samples: .3 oz/ton gold; 2.3 oz/ton silver• Metals: Gold, silver, lead, copper, zinc• 800 acres

Asking Price: $23.5 million

Discovery Day Mine Location: Forks of Salmon, California Patented claims: 0 Unpatented claims: 48 Resources:

• Potential reserves: 1 million oz. gold• Metals: Gold, silver, lead, zinc, copper, tungsten

Asking Price: $20 million

BLACKSTONE MINING COMPANY PRO-FORMA STATEMENT OF CASH FLOWS

Year 1 Year 2 Year 3 Year 4 Year 5

Assumptions Interest rate on debentures 6.0% 6.0% 6.0% 6.0% 6.0% Operating days per year 0 192 260 260 260 Tons processed per day 0 10 20 40 60

Tons processed per year 0 1,920 5,200 10,400 15,600 Gross value per ton (precious metals) $ - $ 581 $ 581 $ 581 $ 581 Gross value per ton (zinc hydrogen) $ - $ 971 $ 1,457 $ 2,429 $ 2,429 Gross value per year $ - $ 2,980,762 $ 10,600,096 $ 31,308,992 $ 46,963,488

Costs Operating costs/year $ (700,000) $ (728,000) $ (757,120) $ (787,405) Milling losses/year (10% of gross value per year) $ - $ (298,076) $ (1,060,010) $ (3,130,899) $ (4,696,349) Refinery charges/year (12% of gross value less mill losses) $ - $ (321,922) $ (1,144,810) $ (3,381,371) $ (5,072,057)

Total costs $ (1,319,998) $ (2,932,820) $ (7,269,390) $ (10,555,810)

Net value per year $ - $ 1,660,763 $ 7,667,276 $ 24,039,602 $ 36,407,678

Operating activities Cash received

Sales of concentrates (Gross value less milling losses) $ - $ 2,682,685 $ 9,540,086 $ 28,178,093 $ 42,267,139 Less refinery charges $ (321,922) $ (1,144,810) $ (3,381,371) $ (5,072,057)

Total cash received (Net smelter return) $ - $ 2,360,763 $ 8,395,276 $ 24,796,722 $ 37,195,082 Cash used

Operating costs (Includes 4% annual inflation adjustment) $ - $ (700,000) $ (728,000) $ (757,120) $ (787,405) Total cash used $ - $ (700,000) $ (728,000) $ (757,120) $ (787,405)

Net cash received (used) by operating activities $ - $ 1,660,763 $ 7,667,276 $ 24,039,602 $ 36,407,678

Financing activities Cash received

Procceds from sale of debentures (fully subscribed) $ 10,000,000 $ - $ - $ - $ - Total cash received $ 10,000,000 $ - $ - $ - $ -

Cash used Offering fees, commissions, and expenses $ (100,000) $ - $ - $ - $ - Principal paid on loan $ - $ - $ - $ - $ (10,000,000) Interest paid on loan $ (636,000) $ (636,000) $ (636,000) $ (636,000)

Total cash used $ (100,000) $ (636,000) $ (636,000) $ (636,000) $ (10,636,000)

Net cash received (used) by financing activities $ 9,900,000 $ (636,000) $ (636,000) $ (636,000) $ (10,636,000)

Investment activities Cash received

Total cash received Cash used

$ - $ - $ - $ - $ -

Plant build-out and equipment $ (1,166,700) $ (500,000) $ (500,000) $ (500,000) $ (500,000) Total cash used $ (1,166,700) $ (500,000) $ (500,000) $ (500,000) $ (500,000)

Net cash received (used) by investment activities $ (1,166,700) $ (500,000) $ (500,000) $ (500,000) $ (500,000)

Net increase (decrease) in cash held $ 8,733,300 $ 524,763 $ 6,531,276 $ 22,903,602 $ 25,271,678

Cash at beginning of period $ - $ 8,733,300 $ 9,258,063 $ 15,789,339 $ 38,692,941

Cash at end of period $ 8,733,300 $ 9,258,063 $ 15,789,339 $ 38,692,941 $ 63,964,619

The accompanying notes are an integral part of these financial projections.

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Notes to Blackstone Mining Company Ltd. Five-Year Consolidated Cash Flow Projections

(1) Forward-looking statements. Financial projections are “forward-looking statements” as definedunder federal securities law. As such, they are subject to risks and uncertainties.

(2) Assumptions. The following assumptions have been used in calculating these projections:a. Operating season: The initial operating season is expected to last from mid-March

through the end of November, and extended to the entire year thereafter. AlthoughElmore County does not maintain the access road in the winter, the Company isauthorized to plow the road at its own expense if it chooses to do so.

b. Tons processed: 10 tons per day in the second year; increasing to 60 tons per day in the5th year.

c. Plant build-out: Projections assume build-out will be completed in the first year andproduction will commence in the second year.

d. Gross processed value per ton: Gross processed value per ton (excluding hydrogen) hasbeen calculated using the values shown in the following table.

Gross processed value per ton (excluding hydrogen) Metal Unit Price per unit Amount/ton Value per ton

Copper Pounds 2.08 96.0 199.68 Gold Ounces 1,280.00 0.106 135.68 Lead Pounds 0.80 80.0 64.00 Silver Ounces 17.15 23.50 403.03 Zinc (as zinc oxide) Pounds 5.00 170.0 850.00

(3) Processing losses. Losses due to processing are estimated at 10 percent of gross sales.

(4) Refinery charges. Charges for refining the polymetallic matte into pure bullion are estimated at 12percent of net sales.

(5) Plant operating costs: Plant operating costs have been calculated as shown in the following table.An annual allowance of 4 percent has been included to account for inflation and cost increases.

Processing costs Expense Per month Months/year Annual

Salaries & benefits Management & administration $ 12,000 12 144,000 Plant labor 17,300 8 138,400 Professional, technical & contract 14,500 8 116,000 FICA 2,100 12 30,000 Workers’ compensation 500 12 6,000 Plant travel stipends 450 8 4,800

Total salaries & benefits $ 439,200 Operations

Insurance 600 12 7,200 Plant fuel 14,300 8 114,400 Reagents & lab supplies 12,900 8 103,200 Contingencies 3,000 12 36,000

Total operations expense 260,800 Total annual operating costs $ 700,000

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(6) Contingency. An allowance equal to 15 percent of operating expenses has been set aside for contingencies.

(7) Financing. Financing terms are subject to negotiation and have been excluded from these projections.

(8) Plant build-out and equipment. First-year plant build-out costs are capitalized under investment activities asfollows.

First-year plant build-out costs Expense (First year) Per month Months/year Annual

Salaries & benefits Management & administration $ 14,000 12 168,000 Construction labor 19,500 8 156,000 Professional, technical & contract 15,800 8 126,400 FICA 2,500 12 30,000 Workers’ compensation 750 12 9,000 Plant travel stipends 650 8 5,200

Total salaries & benefits $ 494,600 Equipment

Crushing, grinding, & conveying 75,000 Rolling stock 191,000 Steel building 150,000 Fixtures 140,000 Analytical equipment 40,000 Contingencies 76,100

Total capital equipment $ 672,100 Total build-out costs $ 1,166,700

The Company plans to expand plant capacity in the five years covered by these projections and has earmarked $2.0 million for that purpose.

Certification of Proven Ore Reserve Values Blackstone Mine Project

Elmore County, Idaho Richard E. Kucera, Ph.D. & Andrew Egan, B.Sc.

August 17, 2015

Andrew Egan, B.Sc. Consulting Geologist

August 17, 2015

Mr. James Hawley, President Blackstone Mining Company, Ltd. 22522 Kellerman Drive, NE Kingston, Washington 98346-1300

Re: Blackstone Mine property, Elmore County, Idaho

Dear Mr. Hawley:

I have reviewed the following geological and engineering reports on the Blackstone Mine project (“Blackstone”) in southwestern Idaho:

• DeLong, R.F., M.A., M.Sc., 1986. Report on the Winter 1986 Drilling Program, Blackstone Mine, Elmore County, Idaho.

• Kucera, R.E., Ph.D., F.G.A.C., July 21, 1986. Geologist’s Report on the Blackstone Mine Project, Elmore County, Idaho.

• August 11, 1988. Report on the Blackstone Mine Project, Elmore County, Idaho. • May 16, 1996. Gross Value of Proven Ore Reserves, Blackstone Mine, Elmore County, Idaho. • Vasilhoff, G.I., M.M.E., P.E., 1984. Preliminary Engineering Report on the Blackstone Mine Property. • Zarubica, J., B.Sc., 1987. Report on the 1987 Summer Drilling Program.

In addition, I have reviewed the following ancillary reports:

• Bell, R.N., M.E., 1930. “Another Butte in Southern Idaho?” Northwest Mining Truth.

• Johnesse, F.E., M.E., 1932. Report on the Revenue Group of Lode Mining Claims in the Volcano Mining District, Elmore County, Idaho.

Since I did not personally observe the drilling and exploration program, I can only render an opinion on the written records I have reviewed. As described in the above reports, the procedures employed appear to be quantitatively sufficient, methodologically sound, and consistent with generally accepted practices in the mining industry for calculating proven and probable reserves.

Based on the results of the exploratory drilling and related information set forth in the above reports, the Blackstone contains 700,000 tons of proven leach-grade ore and 35,500 tons of proven mill-grade ore. In addition, the authors have estimated probable leach-grade reserves of 3,000,000 tons and probable mill-grade reserves of 186,000 tons.

Consistent with the guidelines set forth in SEC Industry Guide 7, the value of a mining property is best calculated on the basis of proven reserves. Dr. Kucera calculated the value of such reserves in his 1996 report and I have updated his calculations to reflect metals prices and the Blackstone property value based on the current proven reserves as of July 15, 2015.

2382 South Denver Avenue · Boise, Idaho 83706-4536 · (208) 863-5643 · mr.egan2009@gmail.com

Mr. Hawley, 2. August 17, 2015

VALUATION OF PROVEN ORE RESERVES – BLACKSTONE MINE, ELMORE COUNTY, IDAHO

High-grade (Mill-grade) reserves Tonnage Assay/ton Price Per Value/ton Total value

Gold 35,500 0.106 ozs $ 1157.401 Oz $ 122.68 $ 4,335,297

Silver 35,500 23.530 ozs 15.431 Oz 363.07 12,888,910

Copper 35,500 4.94% 2.542 Lb 250.95 8,908,796

Manganese 35,500 1.15% 0.813 Lb 18.63 661,365

Zinc (as Zinc Oxide) 35,500 8.50% 5.005 Lb 850.00 30,175,000

Lead 35,500 4.00% 1.114 Lb 88.80 3,152,400

Total high-grade reserve value 60,141,768

Leach-grade reserves

Gold 700,000 0.078 ozs $ 1157.401 Oz $ 90.28 $ 63,194,040

Silver 700,000 2.110 ozs 15.431 Oz 32.56 22,790,110

Copper 700,000 0.20% 2.542 Lb 10.16 7,112,000

Manganese 700,000 2.00% 0.813 Lb 32.40 22,680,000

Zinc (as Zinc Oxide) 700,000 0.50% 5.005 Lb 50.00 35,000,000

Lead 700,000 0.25% 1.114 Lb 5.55 3,885,000

Total leach-grade reserve value 154,661,150

Total reserve value $ 214,802,918

Sources: 1Handy & Harman base 2Comex 3InfoMine 4Ryan’s notes 5Est. price per lb., non-nano grade ZnO, FOB Boise, ID.

The $214.8 million valuation does not include the approximate 3.2 million tons of probable reserves also set forth in Dr. Kucera’s 1996 valuation.

Respectfully yours,

Andrew Egan, B.Sc. Geologist

GROSS VALUE OF PROVEN ORE RESERVES, BLACKSTONE MINE, ELMORE COUNTY, IDAHO

lNTRODUCTION

This report, prepared at the request of Mr. Jarnes Hawley III, will calculate the gross value of proven ore reserves at the Blackstone Mine, located in Elmore county, Idaho, USA. These reserves are polymetallic ore containing commercial quantities of gold, silver, copper, manganese and ZlllC.

PREVIOUS WORK

The author has drawn upon information from Jarnes Zarubica, Consulting Geologist of Ketchum Idaho. In his report of December, 1987, Mr. Zarubica summarized the results of the 1987 drilling program, and he calculated proven and probable ore reserves.

The present writer visited the property in 1986, to review the geology in the field, study the work progress and make certain recommendations, resulting in two reports, dated July 21, 1986 and August 11, 1988. In addition, the writer summarized the development work taking place at the Blackstone mine and discussed the processing, metallurgy, and mill operations (located at Gooding, Idaho), March 14, 1990.

ESTIMATED PROVEN ORE RESERVES

Based on the results of the development program, Zarubica has calculated that a high grade ore zone (mill grade) has been proven to contain 35,500 tons of0.106 oz. gold, 23.58 oz. silver, 4.94% copper, 1.5% manganese, and 8.5% zinc. He has estimated that the low grade (leach grade) deposit contains 700,000 tons of leachable reserves having an average yield of 0.078 oz. gold. 2.11 oz. silver, 0.2% copper, 2% manganese, 0.25% lead and 0.5% zinc.

To calculate the gross value of ore reserves at the Blackstone Mine, I have referred to current commodity prices published in the Wall Street Journal, May 7, 1996.

High Grade Ore (mill grade)

Commodity Assay/ton May 7, 1996

Price$ Gross total Gross total value/ton$ value/35,500 tons

Gold 0.106 oz. 394.10/oz 41.77 1,482,835 Silver 23.58 oz. 5.44/oz. 128.27 4,553,585 Copper 4.94% 1.245/lb. 123.00 4,366,500 Manganese 1.15% 1.16/lb. 66.68 947,140 Zinc 8.5% 0.502/lb. 85.34 3,Q22,51Q

$405.06 $14,379,630

Low Grade Ore (leach grade)

May 7, 1996 Gross total Gross total Commodity Assay/ton Price$ value/ton$ value/700,000 tons

Gold 0.078 oz. 394.10/oz. 30.73 21,511,000 Silver 2.11 oz. 5.44/oz. 11.47 8,029,000 Copper 0.2% 1.245/lb. 4.98 3,486,000 Manganese 2.0% 1.16/lb 46.40 32,480,000 Lead 0.25% 0.507/lb. 25.35 17,745,000 Zinc 0.5% 0.502/lb. 5,Q2 3,514,QQQ

$123.95 $86,765,000

fROBABLE RESERVES

In addition to proven reserves, drilling results suggest to Zarubica that as much as three million tons of probable leach-grade ore, and an additional 186,000 tons of high grade ore may be proven by further development of the Blackstone property. Therefore, additional drilling, and computer modeling of the area surrounding the pit is recommended, to expand the tonnage of proven reserves.

Note: All figures in this report subject to fluctuations in metal prices.

Richard E. Kucera, Ph.D.

CERTIFICATE OF QUALIFICATION

I, Richard E. Kucera, Ph.D., hereby certify,

1. That I am a Geological Consultant in the State of Washington.

2. That I am an active member of the following professional associations:Geological Society of America; Rocky Mountain Association of Geologists;Geological Association of Canada; Society for Mining, Metallurgy andExploration, Northwest Mining Association; and the American Association ofPetroleum Geologists.

3. That I hold B.Sc. and M.Sc. degrees from the Ohio State University , and aPh.D. from the University of Colorado.

4. That I have been practicing my profession as a Geologist for 31 years.

5. That I have no direct or indirect interest in the properties or securities ofBlackstone Mining Company, Ltd.

6. That the statements made in this report are based on information specified inthe report.

7. That the report has been prepared for exclusive use of participants in theproject and no part of it shall be reproduced by any other person, regulatorybody or organization without the complete context of the report or withoutmy perm1ss1on.

8. Consent is hereby granted to use the report, in its complete form only, in aFiling Statement, Statement of Material Facts, or Prospectus by BlackstoneMining Company, Ltd.

Richard E. Kucera, Ph.D.