LOST DUTCHMAN MINE, LLC – SUSTAINABLE ORE CONCENTRATION TECHNOLOGY

BACKGROUND

Lost Dutchman Mine, LLC (LDM), based in Tucson, Arizona, is a technology development
company. LDM has developed a mine ore concentration technology that is capable of
concentrating metal ores without the use of water or chemicals. The technology is capable of
concentrating gold, silver, copper, tungsten, and many other heavy metal ores and does so in a
manner that benefits mine sustainability goals and values. The technology has been tested and
subjected to independent third-party review and verification. Qualified potential clients or
investors may have access to confidential test results, reports, and further discussions through a
Non-Disclosure Agreement between the parties. This discussion provides a non-confidential
description of the LDM ore processing system.

GENERAL PROCESS DESCRIPTION
The LDM process is a gravitational separation process that utilizes airflow rather than water to
separate higher density metal minerals from ore materials. Both particle density and particle size
are important components of the technology. The process utilization is related to other mine
concentration technologies that use water or water slurries, such as elution columns or Knelson
concentrators. The relevant components of the LDM technology are feed material preparation,
feed introduction and distribution, energy input and regulation of airflow, and the collection of
the separated products.

Feed preparation is centred on ore crush size and moisture content. In general, materials are
crushed and ground finer than is normal for heap leach processing but likely not dissimilar to the
grind necessary for vat leach or other processes. Because the process utilizes airflow, the
materials will have a moisture limit and may require some drying before entering the unit. The
system requires a steady and uniform distribution in the feed cycle that includes surge capacity
and automated material flow to ensure a steady feed rate. Air velocity is closely controlled and

regulated to obtain the desired particle separation. The airflow component, along with feed
drying as necessary, are the main source of energy input and consumption of power in the
system. The system design is conducive to easy handling of the separated products and includes
mechanisms for dust control without the use of water.

For ore concentration, the system is designed to be added to the mine process unit immediately
after the mine crusher system. The system can be configured to fit any ore recovery need. That
is, to increase ore concentration and recovery, units may be aligned in series with each unit
concentrating additional ore. To meet ore process tonnage goals, systems can be operated with
additional units running in a parallel configuration. In addition, the technology has other uses,
such as tailings reprocessing to recover additional gold and increase revenue sources.

TECHNOLOGY USES AND SUSTAINABILITY BENEFITS
This high-density particle separation technology includes the following uses. This technology is
environmentally safe and provides numerous benefits to mines who desire to achieve
sustainability goals.

1.0 Concentrate Gold, Silver, Copper, and Other Metals
The process does not use water or chemicals to concentrate the ore. Benefits include significant
reduction in the mine site water and chemical usage, both important to environmental
stewardship goals and operational efficiency. Water and chemical usage at mine sites represent
large perceived or real risks to a mine’s operational viability and profitability.

2.0 Reduction in Final Ore Recovery Tonnage
By concentrating the ore before recovery, less tonnage goes to final ore leaching and recovery
reducing operational costs. In addition, for mines that truck ore a great distance to the process
facility, this technology allows for increases in ore process throughput and lower transportation
costs.

3.0 Tailings Management and Disposal
Reductions in the tonnage of ore being leached also results in lessening of the tonnage of tails
requiring disposal and also lessens the amount of water that is placed in a tailings impoundment.

In addition, it may be possible that this technology can be used following leaching to separate
sulfidic tailings from non-sulfidic tails. The water in the non-sulfidic tailings would require less
treatment and could be re-used in the process system.

4.0 Reprocessing Tailings
The LDM technology gives some mine sites the ability to recover the “hard to get” gold from
tailings and to have another revenue source that can help pay for tailings management or
remediation costs.

5.0 Value Added Waste Material Usage
Concentrating and separating the ore after the crusher allows for several value-added uses of
crushed waste rock materials. Crushed rock can be available for immediate backfill of pits,
shafts and adits, or other mine construction and remediation uses. Concentrating and separating
ore from limestone or carbonaceous ore bearing rock allows for the use of the crushed limestone
for mine site remediation efforts, such as acid rock conditions or tailings water treatment.

6.0 Permitting
The significant reduction in the use of water and chemicals in the ore recovery process has
significant benefits related to mine permitting. While this benefit may allow for a reduction in
the time it takes to permit a mine site, the largest benefit may be its effect on mine permit
conditions. Permit conditions related to water usage and chemical usage, and their perceived or
real environmental risks, can result in significant operational, remediation, and bonding costs
that may make profitable mining difficult. In addition, this technology related to the
management of tailings also may result in more favorable mine permit conditions and bonding
requirements.

SUMMARY
The LDM high density particle separation technology concentrates metal ores without the use of
water or chemicals. This technology has significant operational benefits that increase mining
efficiency, viability, and profitability. The benefit of this technology to a mining company’s
environmental stewardship and sustainability goals is substantial.

For additional information please contact info@cemi.ca