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CHECKLIST ENVIRONMENTAL ASSESSMENT Project Name: Judith Mountains Non-Mechanized Land Use Licenses (LULs)

for Mineral Exploration on State of Montana Surface/Mineral Estate

Proposed Implementation Date: ~May 2021-April 2024 Proponent: Big Sky Exploration LLC* and

The Golden Arrow Mining Company, LLC** 250 Blue Sky Trail Bozeman, MT 59718

Location: Section 16 – T17N-R20E, except Lot 1 (Common Schools Trust)* Section 16 – T17N-R21E (Common Schools Trust)**

County: Fergus

I. TYPE AND PURPOSE OF ACTION

Personnel with Rough Stock Mining Services have applied to the Department of Natural Resources and Conservation (DNRC) for two non-mechanized Land Use Licenses for two companies and locations as noted above to prospect for lode gold and silver mineral deposits. Field work is expected to include geologic mapping, rock-chip sampling, soil sampling, and stream sediment sampling. Samples gathered will be sent away for geochemical analyses. Sampling of soil and rock material will be with hand tools, such as rock hammers, trowels, and shovels. Location of sample sites would be noted on topographic or geologic maps or through a Global Positioning System. Depending on sample results, the proponent may consider implementing magnetic geophysical surveys on foot with handheld instruments.

II. PROJECT DEVELOPMENT

1. PUBLIC INVOLVEMENT, AGENCIES, GROUPS OR INDIVIDUALS CONTACTED: Provide a brief chronology of the scoping and ongoing involvement for this project.

State of Montana DNRC: surface and mineral owner. MMB Geologist, Teresa Kinley; MMB Bureau Chief, Trevor Taylor; MMB Petroleum Engineer Zack Winfield; AGMB Archaeologist, Patrick Rennie; Lewistown Unit Manager, Jocee Hedrick, Northeast Land Office (NELO); Land Use Specialist, Dustin Lenz, NELO; Manager, Clive Rooney NELO; MT Natural Heritage Program Map Viewer, MT-DEQ Jake Mohrmann. DNRC grazing lessee – 17N 20E 16: Sara Campbell Revocable Trust (Box Elder Ranch) 17N 21E 16: Cone Butte Ranch LLC

2. OTHER GOVERNMENTAL AGENCIES WITH JURISDICTION, LIST OF PERMITS NEEDED:

None.

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3. ALTERNATIVES CONSIDERED:

No Action Alternative: The proposed Land Use Licenses (LULs) would not be granted. Current non-motorized recreational use and grazing leasing would continue. Action Alternative: A Land Use License would be granted to Big Sky Exploration LLC for Section 16, T17N, R20E to explore via non-mechanized methods for lode deposits of gold and silver. A Land Use License would be granted to The Golden Arrow Mining Company, LLC for Section 16, T17N, R21E to explore via non-mechanized methods for lode deposits of gold and silver. Current non-motorized recreational use and grazing activities would continue.

III. IMPACTS ON THE PHYSICAL ENVIRONMENT

RESOURCES potentially impacted are listed on the form, followed by common issues that would be considered. Explain POTENTIAL IMPACTS AND MITIGATIONS following each resource heading. Enter “NONE” If no impacts are identified or the resource is not present.

4. GEOLOGY AND SOIL QUALITY, STABILITY AND MOISTURE: Consider the presence of fragile, compactable or unstable soils. Identify unusual geologic features. Specify any special reclamation considerations. Identify any cumulative impacts to soils.

GEOLOGY Section 16, T17N, R20E Igneous and sedimentary rocks are present in Section 16, T17N, R20E. Tertiary (Paleocene) or Upper Cretaceous quartz monzonite and syenite porphyry (TKqmp) have been mapped in the west portion of the section. Additional fingers of TKqmp occur in the eastern part of the section, intruded into sedimentary rocks. Porter and Wilde, (1993, revised 1999) note that this map unit includes some quartz diorite, monzonite and rhyolite porphyry. Lower Cretaceous Thermopolis Formation and Fall River Sandstone (undivided) (Ktf) constitutes the largest amount of sedimentary rock mapped in Section 16, T17N, R20E. It primarily occurs in a gentle arc from the NE¼ of the section through its central part, with some lobes into the W2W2 of the section. Arcuate bands of other sedimentary rocks in the eastern third of the Section include the Middle Jurassic Ellis Group (Je), Upper Jurassic Morrison Formation (Jm), Cretaceous Kootenai Formation (Kk), and Lower Paleozoic Sedimentary Rocks, undivided (Pzs). The arcuate bands could indicate additional igneous intrusions at depth. Porter and Wilde (1993, revised 1999) included a dashed fault area, mostly in the igneous rocks in the northwest part of Section 16, T17N, R20E. Goddard (1988) extended this inferred fault into the sedimentary rocks and indicated some offset. He also mapped dikes of Tertiary-Cretaceous tinguatite porphyry (TKt) in the sedimentary rocks and in the igneous quartz monzonite and syenite porphyry (TKqm) in Section 16. He shows a synclinal axis just west of the center portion of the section with a plunge to the north. Goddard (1988) noted disseminated pyrite in the igneous rocks in various parts of the area, including Sections 16, 15, 17, 21, and 20. Sedimentary rocks in parts of Sections 16, 20, and 21 also contain small amounts of pyrite. Two short veins are mapped in the SE4 of Section 16 in both igneous and sedimentary rocks.

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The State of Montana has previously leased this area for metalliferous and oil and gas mineral exploration in the 1940’s, and 60’s through the 80’s. In about 1988, several drill holes were emplaced for metalliferous exploration and subsequently reclaimed.

Section 16, T17N, R21E Section 16, T17N, R21E also contains igneous and sedimentary rocks. It locates southwest of Lookout Peak on the east flank of a large igneous dome (laccolith) composed of Tertiary-Cretaceous quartz monzonite porphyry (TKqmp). Most of the western part of Section 16 contains this intrusive igneous rock. Porter and Wilde (1993, revised 1999) also mapped part of a smaller body of TKqmp in the NE4NE4 of the section. Areas of Tertiary-Cretaceous tonolite porphyry occur near the edges of the larger body of TKqmp and to the east of the section. The sedimentary rock units include: Paleozoic rocks undifferentiated (PZs) Jurassic Ellis Group (Je), Jurassic Morrison Formation (Jm), Cretaceous Kootenai (Kk) and Thermopolis Formation and Fall River Sandstone, (undivided) Formations (Ktf) in the east and southwestern portion of the section. Porter and Wilde also mapped an area of faulting in the southwest part of Section 16, T17N, R21E, but they did not indicate direction or amount of movement. Goddard (1988) mapped a number of igneous dikes and sills of Tertiary-Cretaceous tinguaite porphyry (TKt) that cut/intrude the sedimentary formations and the igneous dome (laccolith). The State of Montana has previously leased this area for metalliferous mineral exploration in the 70’s to early 90’s. SOILS Steep topography occurs throughout these areas. However, minimal disturbance by non-mechanized exploration methods would not increase potential for soil erosion. The proponents will be walking into the areas. According to the USDA Web Soil Survey, the loam soils on Section 16 of T17N, R20E are comprised of seven soil map units with numerous gravel, stone, or cobbles and in some instances, some clay and sand. These soils have slight to moderate ratings for soil erosion. All components on the section have low resistance to soil compaction, high potential for restoration, and are poorly suited for roads. The loam soils on Section 16 of T17N, R21E are comprised of four soil map units that have abundant gravel, rock, or cobbles, and may have associated sand or clay at depth. These soils have a moderate to slight erosion rating. All components on the section have low resistance to soil compaction, high potential for restoration, and are poorly suited for roads. The non-mechanized mineral exploration on these two sections noted above would have minimal impacts on soil quality and stability. The exploration would include foot traffic and hand tools for sampling. The proponent would be required to stockpile topsoil separately while digging holes. The size of the holes will be limited to 2 ft square. When holes are refilled, the proponent would replace the subsoil first then all topsoil and sod. All holes and disturbed areas would be reseeded.

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5. WATER QUALITY, QUANTITY AND DISTRIBUTION: Identify important surface or groundwater resources. Consider the potential for violation of ambient water quality standards, drinking water maximum contaminant levels, or degradation of water quality. Identify cumulative effects to water resources.

The East Fork of Armell Creek flows to the north through the east half of Section 16, T17N, R20E. USGS topographic map information indicates this stream is perennial in this section. Hydrography data from Montana State Library shows this creek as intermittent in Section 16, T17N, R20E. A perennial stream runs through the center of Section 16, T17N, R21E. The stream flows through the Log Gulch drainage. This stream becomes intermittent farther downstream beginning in Section 23, when it flows through alluvial fan material. Springs are present in both sections. Digging within 10 feet of a spring will be prohibited. The proponent has proposed possible soil/sediment disturbance within 10 feet of wetlands, and the ordinary high-water mark of streams. DNRC will require that samples in these areas be taken during low discharge periods. According to Montana’s Ground Water Information Center there are no wells documented in either of the sections examined in this assessment. Stream sediment sampling is planned for the non-mechanized exploration in both sections. An estimated 11 to 15 samples may be taken in each LUL area. These samples could be taken behind large rocks in dry, intermittent, and/or perennial drainages or near junctions of the drainages. These samples may provide indicators of possible mineralization from upstream or a possible placer deposit. Small sample size and intermittent to low flow would result in limited sediment disturbance. Panning in the streams will not be permitted. Samples in perennial streams would be limited to low-water discharge periods. No effects to water resources are anticipated. 6. AIR QUALITY:

What pollutants or particulate would be produced? Identify air quality regulations or zones (e.g. Class I air shed) the project would influence. Identify cumulative effects to air quality.

A short duration increase in airborne pollutants and particulates could occur from hand digging. Minimal short-term impacts to air quality are expected.

7. VEGETATION COVER, QUANTITY AND QUALITY: What changes would the action cause to vegetative communities? Consider rare plants or cover types that would be affected. Identify cumulative effects to vegetation.

DNRC’s last tract evaluation for each of the corresponding sections were completed in the summer of 2017. Both sections are a mixture of timber and grasslands. Vegetation identified during the tract evaluations include; Western Wheatgrass, Muhly, Sandberg Bluegrass, Idaho Fescue, Bluebunch Wheatgrass, Green Needlegrass, Kentucky Bluegrass, Timothy, Smooth Brome, Douglas Fir, Lodgepole, Forbs and Sumacs.

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No changes to vegetation communities are anticipated. No impacts are expected to occur from the proposed activity that would not be addressed by mitigation measures. Mitigation of any impacts on vegetation are as follows: The proponent will repair any soil damage and seed any disturbed areas with the seed mix for reclamation approved by the Lewistown Unit Manager and NELO. This mix is included in the land use licenses. Spread of noxious weeds and fire hazards are not a concern as all prospecting will be done via foot travel. No motorized vehicles are permitted for prospecting activities. Land areas disturbed by sample digging will require subsoil, topsoil and sod replacement and seeding to prevent noxious weed establishment. 8. TERRESTRIAL, AVIAN AND AQUATIC LIFE AND HABITATS:

Consider substantial habitat values and use of the area by wildlife, birds or fish. Identify cumulative effects to fish and wildlife.

These areas provide habitat for a variety of big game, large and small mammals, raptors, and possibly songbirds. The tracts proposed for exploration are heavily timbered and steep in areas. Wildlife activities, if present on the tracts, may experience temporary disruption due to the proposed project, but no more than is currently occurring from human activity in the area. Minimal impacts are anticipated from non-mechanized exploration. No MT Natural Heritage Program (MT-NHP) species of concern sites are present on either Section 16, T17N, R20E or Section 16, T17N, R21E. A hoary bat (G3G4, S3) and long-legged myotis (G4G5, S3) site, both last observed in 1960 was located about a mile from Section 16 in T17N, R20E. A MT-NHP Cutthroat Trout (G5T4, S2) site locates about 1.45 miles away from this section’s closest point. These trout were found in Collar Gulch which flows to the south and were last observed in 1994. The East Fork of Armell Creek, that cuts Section 16, T17N, R20E, flows to the north and does not have any connection with Collar Gulch. A perennial reach of Log Gulch cuts Section 16, T17, R21E. Downstream, a Montana Natural Heritage Species of Concern site for Northern Redbelly Dace (G5, S3) or possible hybrid taxa locates in Log Gulch about 2.8 miles from the closest point of Section 16, T17N, R21E. The fish at this site were last observed in 2006. The Montana State Library hydrography information and the USGS topographic map shows Log Gulch becoming intermittent about 1.5 miles from Section 16 and continuing as an intermittent stream at and beyond the site for the Dace fish. Due to minimal activity proposed, the fish, if present, would not be affected. 9. UNIQUE, ENDANGERED, FRAGILE OR LIMITED ENVIRONMENTAL RESOURCES:

Consider any federally listed threatened or endangered species or habitat identified in the project area. Determine effects to wetlands. Consider Sensitive Species or Species of special concern. Identify cumulative effects to these species and their habitat.

No impact to fisheries or water resources is anticipated from the non-mechanized exploration proposed. These sites are not located within Greater Sage Grouse general or core habitat. No species of concern raptors have been noted on, or within a mile radius of the tracts.

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No long term or cumulative impacts to unique, endangered, fragile or limited environmental resources (including wetlands) are anticipated from either of the proposed alternatives. 10. HISTORICAL AND ARCHAEOLOGICAL SITES:

Identify and determine effects to historical, archaeological or paleontological resources.

A Class I (literature review) level review was conducted by the DNRC staff archaeologist for the area of potential effect (APE). This entailed inspection of project maps, DNRC's sites/site leads database, land use records, General Land Office Survey Plats, and control cards. The Class I search revealed that evidence of historic mining/prospecting activity may be in the APE. Because the work proposed has no potential to adversely effect state owned heritage properties, no additional archaeological investigative work will be conducted.

11. AESTHETICS: Determine if the project is located on a prominent topographic feature, or may be visible from populated or scenic areas. What level of noise, light or visual change would be produced? Identify cumulative effects to aesthetics.

The proposed prospecting is occurring in remote areas of the Judith Mountains and these sections do not contain public access roads. The proponent (Big Sky Exploration LLC) plans to walk into Section 16, T17N, R20E from adjacent BLM lands, starting from the Red Mountain trailhead in Section 20. The Golden Arrow Mining Company, LLC accesses a patented claim block surrounded by BLM land on a nearby Section by helicopter. At present, they plan to access Section 16, T17N, R21E by walking through BLM land. They may also work out walk-in access to their claims on Federal mineral estate/private surface that adjoins the State parcel and shorten the walk-in distance to their proposed State of Montana non-mechanized LUL area. No mechanized equipment would be used for these projects. Due to their location, the small amount of disturbance, and short-term nature of the activity at each site, minimal aesthetic impacts are expected.

12. DEMANDS ON ENVIRONMENTAL RESOURCES OF LAND, WATER, AIR OR ENERGY: Determine the amount of limited resources the project would require. Identify other activities nearby that the project would affect. Identify cumulative effects to environmental resources.

The proposed projects would have minor, temporary impact on the land as small test holes would be hand dug in both sections. The proponent would reclaim all test hole sites and any disturbance created by this project. DNRC’s Land Use Licenses will limit the maximum size of the hand-dug test holes/pits to 2 feet square unless approved by MMB, DNRC in writing. The LUL will require that test holes should be properly filled with subsoil, topsoil, and then reseeded, prior to moving on to the next hole. The proposed project would not affect water quality or quantity and no water is required for the test holes or other samples. Air quality would be not be affected by foot traffic and small hand-held equipment used in this project.

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13. OTHER ENVIRONMENTAL DOCUMENTS PERTINENT TO THE AREA: List other studies, plans or projects on this tract. Determine cumulative impacts likely to occur as a result of current private, state or federal actions in the analysis area, and from future proposed state actions in the analysis area that are under MEPA review (scoped) or permitting review by any state agency.

MT Dept. of State Lands (MT-DSL) completed an Environmental Assessment in 1993, for mineral exploration, regarding possible drill holes on Section 16, T17N R21E, associated with Metalliferous Lease M-1798-89. MT-DSL did an Environmental Assessment for mineral exploration, regarding drill holes on Section 16, T17N, R20E, in about 1988, associated with Metalliferous Lease M-1363-79. Exploration drill holes were emplaced and subsequently reclaimed. None.

IV. IMPACTS ON THE HUMAN POPULATION

RESOURCES potentially impacted are listed on the form, followed by common issues that would be considered. Explain POTENTIAL IMPACTS AND MITIGATIONS following each resource heading. Enter “NONE” If no impacts are identified or the resource is not present.

14. HUMAN HEALTH AND SAFETY: Identify any health and safety risks posed by the project.

No human and health safety risks were identified as a result of the proposed project other than typical occupational hazards that coincide with non-mechanized mineral exploration operations.

15. INDUSTRIAL, COMMERCIAL AND AGRICULTURE ACTIVITIES AND PRODUCTION: Identify how the project would add to or alter these activities.

The proposed project is not expected to alter current or future industrial, commercial, and agricultural activities and production.

16. QUANTITY AND DISTRIBUTION OF EMPLOYMENT: Estimate the number of jobs the project would create, move or eliminate. Identify cumulative effects to the employment market.

The proposed project would not create, move, or eliminate jobs.

17. LOCAL AND STATE TAX BASE AND TAX REVENUES: Estimate tax revenue the project would create or eliminate. Identify cumulative effects to taxes and revenue.

None.

18. DEMAND FOR GOVERNMENT SERVICES: Estimate increases in traffic and changes to traffic patterns. What changes would be needed to fire protection, police, schools, etc.? Identify cumulative effects of this and other projects on government services.

None.

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19. LOCALLY ADOPTED ENVIRONMENTAL PLANS AND GOALS: List State, County, City, USFS, BLM, Tribal, and other zoning or management plans, and identify how they would affect this project.

No known zoning plans exist for these areas. The Bureau of Land Management released a Record of Decision regarding a revised Resource Management Plan for the Lewistown, MT area on July 30, 2020. The BLM’s website https://www.blm.gov/press-release/BLM-releases-Resource-Management-Plans-for-Lewistown-Missoula noted future publication of the plan in the Federal Register. DNRC is not aware of any other locally adopted environmental plan or goal. The minimal activity from the non-mechanized LUL proposals would not affect any locally adopted environmental plan or goal.

20. ACCESS TO AND QUALITY OF RECREATIONAL AND WILDERNESS ACTIVITIES: Identify any wilderness or recreational areas nearby or access routes through this tract. Determine the effects of the project on recreational potential within the tract. Identify cumulative effects to recreational and wilderness activities.

Recreational activity including fishing, hunting, and hiking occurs intermittently throughout these sections. The proposed action will not alter access or ability for the public to continue using the land recreationally. BLM’s Collar Gulch ACEC locates about 0.7 miles from the closest point of Section 16, T17N R20E. The Lewistown Field Office Resource Management Plan Revision ACEC Report on the Application of the Relevance and Importance Criteria (Jan. 2015) include a map indicating possible expansion of this ACEC. The new boundary on this map is about 0.25 mile from the State section’s closest point. Red Mountain Road, connected off of Judith Peak Road, comes through BLM Land and edges of the Collar Gulch ACEC to within 0.2 mile of the SW4 of the State section. BLM (Jan. 2015) also analyzed the Black Butte area, mostly in the western part of T17N R22E, for an ACEC, but did not recommend it be considered for this designation. This area is about three to five miles from the State Section 16, T17N, R21E. DNRC anticipates minimal effects on recreation potential due to the proposed non-mechanized LUL’s. 21. DENSITY AND DISTRIBUTION OF POPULATION AND HOUSING:

Estimate population changes and additional housing the project would require. Identify cumulative effects to population and housing.

None. 22. SOCIAL STRUCTURES AND MORES: Identify potential disruption of native or traditional lifestyles or communities.

None.

23. CULTURAL UNIQUENESS AND DIVERSITY: How would the action affect any unique quality of the area?

No affect.

24. OTHER APPROPRIATE SOCIAL AND ECONOMIC CIRCUMSTANCES:Estimate the return to the trust. Include appropriate economic analysis. Identify potential future uses for the analysis area other than existing management. Identify cumulative economic and social effects likely to occur as a result of the proposed action.

Two $25 payments for the Land Use License application fees have been provided. The companies would provide an annual rental fee of $3.00 per acre for each non-mechanized, mineral exploration land use license. The annual rental for Section 16, Tl 7N, R20E would be (3 x 623.50) = $1870.50. For Section 16, T17N, R21E the annual rental would be (3 x 640) = $1920.

Discovery of potential economic mineral deposits might happen, but is not guaranteed to occur.

EA Checklist Prepared By:

Name: Zackary Winfield; Teresa Kinley

Title: Petroleum Engineer; Geologist

V. FINDING

I 25. ALTERNATIVE SELECTED:

Date: 5/17/2021

After reviewing the Environmental Assessment, I have selected the Action Alternative, to issue Land Use License (LUL) 508-21 on Section 16, Tl 7N, R2.1E and LUL 507-21 on Section 16, Tl 7N, R20E for non-mechanized mineral exploration. I believe this alternative can be implemented in a manner that is consistent with the long-term sustainable natural resource management of the area and will generate revenue for the Common Schools trust.

I 26. SIGNIFICANCE OF POTENTIAL IMPACTS:

I conclude all identified potential impacts will be mitigated by utilizing the stipulations listed in the accompanying attachments and no significant impacts will occur because of implementing the selected alternative.

i 21. NEED FOR FURTHER ENVIRONMENTAL ANALYSIS:

DEIS D More Detailed EA

EA Checklist Name: Approved By: Title:

Signature:

DS-252 Version 6-:?003

Trevor Taylor

MMB Bureau Chief

9

0 No Further Analysis

Date:

See attached Fig. 1 Vicinity Map; Fig. 2A and Fig. 2B Detail from 2019 aerial for each section; and a LULstipulations list for each section.

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Special Stipulations for Sec. 16, T17N, R20E: LUL 507-21

1) Licensee shall be in compliance with all applicable state and federal laws, rules and regulations, including but not limited to those concerning safety, environmental protection, reclamation, any drone flight requirements for photography and topographic mapping over the site if used, and other requirements.

Licensee shall provide copies of required permits or pertinent exemptions to the Department’s Minerals Management Bureau (MMB) with their exploration plan.

2) The Licensee has the responsibility to keep themselves, staff, and contractors and their staff apprised of the boundaries of the non-mechanized LUL to keep mineral exploration activities within the licensed area. The attached Vicinity Map (Figure 1) and 2019 aerial photo (Figure 2A) provide an approximate location for the areas covered by LUL 507-21.

3) The Licensee will provide MMB with an exploration plan covering the licensed area for review and approval prior to beginning non-mechanized exploration each year. The plan should include type of non-mechanized exploration proposed within the licensed area and planned locations of sample sites and potential disturbance areas.

4) Soil disturbance within 10 feet of wetlands, and/or the ordinary high-water mark of

streams is not allowed without prior written approval by Minerals Management Bureau, Montana Department of Natural Resources and Conservation (MT-DNRC). Soil disturbance within 10 feet of springs is prohibited. Panning of sediments is prohibited in streams or springs.

5) The size of hand-dug disturbance is limited to a maximum 2 feet by 2 feet opening, outside the 10-foot buffer zone of streams, springs, wetlands, unless licensee receives prior written approval by MMB, MT-DNRC. Topsoil/sod will be stockpiled separately from subsoil for reclamation. Licensee shall fill holes with subsoil before covering with topsoil and sod. All holes must be filled and reclaimed immediately prior to moving on to the next hole.

6) Licensee will repair any soil damage and seed any disturbed areas with weed-free native grass seed per MT DNRC specifications below to stabilize soils and reduce noxious weed encroachment.

Common Name lbs PLS/acre for full stand % of mix lbs PLS/acre for mix

Bluebunch Wheatgrass 7 0.4 2.8 Idaho Fescue 2.5 0.4 1 Green Needlegrass 6 0.1 0.6 Mountain Brome 10 0.1 1

Total Pure Live Seed Per Acre 5.4

2

Special Stipulations for Sec. 16, T17N, R20E: LUL 507-21, continued Address questions on the seed mix to the Lewistown Unit. Licensee will monitor sites for revegetation and control weeds for a period of three years after reclamation.

7) Geologic, geochemical/physical information, (including detailed sample sites locations and areas disturbed by non-mechanized mineral exploration, and sample results for each corresponding sample site), and any photographic & topographic drone data (processed and raw) for the tract will be provided to Minerals Management Bureau, TLMD MT-DNRC annually with a report on exploration activities. The lessee shall also concurrently provide GPS, GIS, or other data; detailed maps and/or aerial photos associated with the non-mechanized exploration to MMB. Licensee should advise the department if they consider this information confidential.

8) The Licensee, and employees, including contractors, and/or operators shall comply with

any requirements of fire restriction stages unless they obtain an exemption that may be issued by the Manager of the Lewistown Unit Office after field review. Access may be temporarily denied should the fire restrictions rise to the level of closure.

9) Licensee must contact and coordinate with DNRC’s surface grazing lessee and any future licensee/lessee to mitigate management conflicts, such as grazing schedules.

10) This license is subject to the requirements or rights of pre-existing rights-of-

way/easements and/or agreements.

11) The licensee shall contact the Department ' s Trust Land Management Division, Minerals Management Bureau if any gold, silver, and/or associated minerals are encountered on the licensed premises.

12) The licensee agrees to avoid and not disturb historic former buildings, mining structures, foundations or other cultural features/artifacts on this tract.

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Special Stipulations for Sec. 16, T17N, R21E: LUL 508-21

1) Licensee shall be in compliance with all applicable state and federal laws, rules and regulations, including but not limited to those concerning safety, environmental protection, reclamation, any drone flight requirements for photography and topographic mapping over the site if used, and other requirements.

Licensee shall provide copies of required permits or pertinent exemptions to the Department’s Minerals Management Bureau (MMB) with their exploration plan.

2) The Licensee has the responsibility to keep themselves, staff, and contractors and their staff apprised of the boundaries of the non-mechanized LUL to keep mineral exploration activities within the licensed area. The attached Vicinity Map (Figure 1) and 2019 aerial photo (Figure 2B) provide an approximate location for the areas covered by LUL 508-21.

3) The Licensee will provide MMB with an exploration plan covering the licensed area for review and approval prior to beginning non-mechanized exploration each year. The plan should include type of non-mechanized exploration proposed within the licensed area and planned locations of sample sites and potential disturbance areas.

4) Soil disturbance within 10 feet of wetlands, and/or the ordinary high-water mark of

streams is not allowed without prior written approval by Minerals Management Bureau, Montana Department of Natural Resources and Conservation (MT-DNRC). Soil disturbance within 10 feet of springs is prohibited. Panning of sediments is prohibited in streams or springs.

5) The size of hand-dug disturbance is limited to a maximum 2 feet by 2 feet opening, outside the 10-foot buffer zone of streams, springs, wetlands, unless licensee receives prior written approval by MMB, MT-DNRC. Topsoil/sod will be stockpiled separately from subsoil for reclamation. Licensee shall fill holes with subsoil before covering with topsoil and sod. All holes must be filled and reclaimed immediately prior to moving on to the next hole.

6) Licensee will repair any soil damage and seed any disturbed areas with weed-free native grass seed per MT DNRC specifications below to stabilize soils and reduce noxious weed encroachment.

Common Name lbs PLS/acre for full stand % of mix lbs PLS/acre for mix

Bluebunch Wheatgrass 7 0.4 2.8 Idaho Fescue 2.5 0.4 1 Green Needlegrass 6 0.1 0.6 Mountain Brome 10 0.1 1

Total Pure Live Seed Per Acre 5.4

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Special Stipulations for Sec. 16, T17N, R21E: LUL 508-21, continued Address questions on the seed mix to the Lewistown Unit. Licensee will monitor sites for revegetation and control weeds for a period of three years after reclamation.

7) Geologic, geochemical/physical information, (including detailed sample sites locations and areas disturbed by non-mechanized mineral exploration, and sample results for each corresponding sample site), and any photographic & topographic drone data (processed and raw) for the tract will be provided to Minerals Management Bureau, TLMD MT-DNRC annually with a report on exploration activities. The lessee shall also concurrently provide GPS, GIS, or other data; detailed maps and/or aerial photos associated with the non-mechanized exploration to MMB. Licensee should advise the department if they consider this information confidential.

8) The Licensee, and employees, including contractors, and/or operators shall comply with

any requirements of fire restriction stages unless they obtain an exemption that may be issued by the Manager of the Lewistown Unit Office after field review. Access may be temporarily denied should the fire restrictions rise to the level of closure.

9) Licensee must contact and coordinate with DNRC’s surface grazing lessee and any future licensee/lessee to mitigate management conflicts, such as grazing schedules.

10) This license is subject to the requirements or rights of pre-existing rights-of-

way/easements and/or agreements.

11) The licensee shall contact the Department ' s Trust Land Management Division, Minerals Management Bureau if any gold, silver, and/or associated minerals are encountered on the licensed premises.

12) The licensee agrees to avoid and not disturb historic former buildings, mining structures, foundations or other cultural features/artifacts on this tract.

LUL-507-21

LUL-508-21

Collar Gulch ACEC

17N 20E

18N 20E

17N 21E

18N 21E

16N 21E16N 20E

19N 21E19N 20E

18N 19E

19N 19E

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Fergus

Copyright:© 2013 National Geographic Society, i-cubed

FIGURE 1: Vicinity Map for State of Montana LUL #507-21 and LUL #508-21 for Non-mechanizedMineral Exploration. Prepared by T. Kinley, MT-DNRC, 4/30/2021

Vicinity Map for Big Sky Exploration LLC's LUL #507-21 and Golden Arrow Mining Company, LLC's LUL #508-21

LUL-507-21

Figure 2A: Detailed 2019 Aerial Photo View of LUL #507-21 Area (yellow) in Section 16, T17N, R20E, PMM, Fergus Co., MT with other Sections in red. Annotation and overlays by T. Kinley, MMB, MT-DNRC, April 30, 2021.

17N 20E16

09

21

17

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1008

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LUL-508-21

Figure 2B: Detailed 2019 Aerial Photo View of Approximate LUL #508-21 Area (yellow) in Section 16, T17N, R21E, PMM, Fergus Co., MT with otherSections in red. Annotation and overlays by T. Kinley, MMB, MT-DNRC,April 30, 2021.

17N 21E

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