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"Formation is dedicated to the principle of environmentally sound mining practices and believes that mining and the protection of the environment can co-exist.

"The project will have a relatively small area of surface disturbance."

"Declines will be developed from portals located above the hydrostatic groundwater level and will be developed to ensure that water does not drain from the portals."

"Formation's Plan of Operations provides for careful disposal of waste rock and tailings in order to protect water quality."

"Process waters will be carefully managed and recycled."

"Within the immediate project area, existing roads will be used as much as possible to minimize surface disturbance."

"The use of underground mining, mine backfill and dry stacking of tailings, provides numerous environmental advantages for the project."

Stage 1 Construction (completed):

Stage 1 consisted of timber clearing for the tailings and waste rock storage facility, the soil stockpile, site roads, and mill and concentrator pads. Dahle Construction, LLC of Salmon, Idaho has now completed the Stage 1 timber clearing (approx 125 acres).

Stage 2 Construction (antipated commencement fall 2010):

1. Hydrometallurgical Facility

Salmon, Idaho, top of mountain

1. Cobalt Ore Mill and Concentrator
2. Water Treatment Plant
3. Maintenance Shop and Storage Area
4. Aerial Tram Unloading Terminal
5. Tailings and Waste Rock Storage Facility and Soil Stockpile
6. Water Management Ponds

Salmon, Idaho, 7040 foot elevation

1. Ram Portal Bench
2. Ram Portal
3. Aerial Tram Loading Terminal

Stage 3 Construction: