Hycroft Mine Environmental

Permitting for the heap leach expansion that includes expanded heap leach, open pits, and waste rock facilities was completed in August 2012 with the Bureau of Land Management (“BLM”) and Nevada Division of Environmental Protection (“NDEP”) authorizing the proposed actions. The permits required to construct and operate the crushing system and to begin mill construction were also received from the BLM and NDEP in 2012. The Plan of Operations for the Hycroft Environmental Assessment (“EA”) for a rail spur, open pit expansion and processing complex, that includes a TMF and Heap Leach Facility, was submitted to the BLM in August 2012. NV Energy submitted a Rights of Way application for the power line associated with the Hycroft Mill in March 2013. The BLM determined that action should be analyzed with the Hycroft EA.

Studies supporting permitting of a long-term TMF, and a deeper open pit, such as groundwater characterization, waste rock characterization, and archaeological and biological surveys, began late in 2009. All field work has been completed for these programs.  The study information was included in a Plan of Operations that was submitted to the BLM in April 2014, requiring a supplemental EIS. Approvals are anticipated to be received in 2016.

Future expansion activities described in this technical report will require multiple federal, state and local permits.

The existing Hycroft Mine workforce lives mainly in Winnemucca (Humboldt County) and Lovelock (Pershing County); this will likely remain the same for the milling project. The large number of contractors needed for the project would temporarily reside in these two communities with a small number also staying in the town of Gerlach (Washoe County).

Initial surveys indicate that the town of Winnemucca has the required infrastructure (shopping, emergency services, schools, etc.) to support the maximum workforce and dependents. The construction labor force will be housed in Winnemucca and transported 54 miles via a contracted bus service to the job site.  Additional work has been initiated to manage the resourcing and logistics of construction labor, including the construction of temporary contractor housing in partnership with a local Winnemucca developer.