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ENVIRONMENTAL REGULATION
Our exploration and planned development and mining
activities are subject to extensive and costly environmental
laws and regulations under various federal, state, county and local laws relating to the protection of the environment,
which generally includes air and water quality, hazardous waste management, radionuclide handling and
reclamation. Failure to comply with these requirements can result in civil and/or criminal liability for non-
compliance, fines and penalties, clean-up costs and other environmental damages. It also is possible that
unanticipated developments or changes in the law could require us to make environmental expenditures significantly
greater than those we currently expect. Environmental legislation is evolving in a manner that will require stricter
standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental
assessments of proposed projects and a heightened degree of responsibility for companies and their officers,
directors and employees. Current and future laws, regulations and permits will impose significant costs, liabilities or
obligations or could limit or prevent our ability to continue operations or undertake new operations. Environmental
hazards may exist on the properties in which we hold interests that are unknown to us at present and that have been
caused by previous owners of the properties.
Our Bear Lodge Property in Wyoming is subject to federal and state environmental laws, regulations, and permits.
The federal agency responsible for regulatory jurisdiction is the United States Forest Service, Bearlodge Ranger
District, Sundance, Wyoming. The state agency with regulatory jurisdiction is the Wyoming Department of
Environmental Quality. We operate under approvals and permits granted by these two agencies and have established
a surety bond to ensure environmental reclamation of areas disturbed. As of December 31, 2014, the Company had
a surety bond with the state of Wyoming totaling $421,300. Prior to operating, we will require several other permits
and licenses including those issued by the Nuclear Regulatory Commission (“NRC”), U.S. Army Corps of
Engineers and others.
In 2009, the Environmental Protection Agency (“EPA”) announced that it will develop financial assurance
requirements under CERCLA § 108(b) for the hardrock mining industry. EPA expects to publish its proposed
financial responsibility regulations in 2016. EPA’s notice did not indicate what the anticipated scope of these
requirements will be, or whether they will be duplicative of existing bonding and other financial assurance
requirements applicable to the hardrock mining industry. However, the promulgation of regulations that require
significant additional financial assurance could have a material adverse effect on our business operations.
MINERALS EXPLORATION REGULATION
Mining operations and exploration and development activities are subject to various national, state, county and local
laws and regulations in the United States, which govern prospecting, development, mining, production, exports,
taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous
substances and other matters. The Company believes that it is in compliance in all material respects with applicable
mining, health, safety and environmental statutes and the regulations passed thereunder in the United States. There
are no current orders or notices of violations relating to the Company with respect to the foregoing laws and
regulations.
Compliance with these laws and regulations may impose substantial costs on the Company and could subject it to
significant potential liabilities. Changes in these laws or regulations could require us to expend significant resources
to comply with new laws or regulations, or changes to current requirements, and could have a material adverse
effect on our business operations.
MINE SAFETY AND HEALTH REGULATIONS
Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank
Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United
States are required to disclose in their periodic reports filed with the SEC information regarding specified health and
safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the
year ended December 31, 2014, our Bear Lodge Property was not subject to regulation by the Federal Mine Safety
and Health Administration under the
Federal Mine Safety and Health Act of 1977
.
