SOURCES AND USES OF FUNDS

SOURCE OF FUNDS
Common Stock Purchase (Investor) $100,000
$ 6,000,000 Note Payable to Investor 4,750,000
Total Sources of Funds 

$4,850,000


Uses of Funds (Year 1 – Prototype Development and Validation):
Corporate and LLC formation and meetings – travel 18,000
Legal review, LLC and Corporate Formation 20,000
Consulting Fee for Investment Marketing 250,000
Escrow set-up and closure 2,000
Total Initial Uses of Funds $ (290,000)
Prototype Development Uses:
Terra Sonic International – Sonic Drill and Components:  
TSi 150CC Compact Crawler Rig$610,000 
APHS (auto pipe handling sys with track mod)60,000 
Adapter, TSi Head Flange to TSi Spindle x 23,000 
Rod (4.25”OD x 3.75”ID), 600’ w/6”x 4.25” spindle57,000 
8” Core Barrel x 35,000 
8” Core Barrel Bits x 106,000 
4.25” x 8” Core Barrel Adaptor x 46,000 
Casing (9.25”OD x 8.4”ID x 10’) x 600’112,000 
9.25” Casing Shoe Bits x 106,000 
6” x 9.25” Casing Adaptors x 35,000 
Sonic Crew Special Training (3 weeks)30,000 
Trucking – to Grants Pass, Oregon100,000 
Total Sonic Rig Investment (1,000,000)
Research and Development (e.g. Eductor Rod Couplings, Adaptor Vanes, Jetting Sub-Couplings, Heat Manifold,Manufacturing, Engineering, Professional Services (400,000)
Processing Plant and Ancillary Equipment:  
Jet Pump with Driver and Pump Smart VFD with Accessories (e.g. Platform and Conduit)330,000 
Processor (e.g. Centrifugal Concentrator, Pumps, Backfill Apparatus, Conduit)300,000 
Grinder (e.g. 30tph) of Slurry20,000 
Water Filtration Unit (e.g. Bonchar, Zeolite)50,000 
Gold Room (e.g. MSI 255 Shaking Table / 755 Enhancer with Facility/RV, Security)100,000 
Reservoir (e.g. Tank, Dam, Pump, Well Structures, Well Pump)100,000 
Total Processing Plant and Equipment (900,000)
Subtotal “Uses” (2,590,000)
Other Equipment:
Scientific Analysis Technology:  
XRF Hand-Held Spectrometer, Training, Data Collection Software, Core Holders, Validity Fees$50,000 
Seismic and/or LIDAR integration60,000 
Other40,000 
Total (150,000)
Heavy Equipment:  
Rental of Heavy Equipment when needed20,000 
Morooka with Trailer/crane for Rods, Casing, Tools and Equipment130,000 
Total (150,000)
Facilities and Transportation:
RV Living Quarters x 250,000 
ATV’s x 28,000 
Haul Trailers x 230,000 
Containers x 212,000 
Other30,000 
Total Facilities and Transportation (130,000)
Administration, Supplies, Permits, Insurance, Payroll (Annual Expense):
Payroll $4,000 ea. including tax x 3 x 12 months144,000 
Sonic Driller Wages $6,000 including tax x 1 x 12 months72,000 
Officer’s Wages $6,000  including tax x 1 x 12 months72,000 
Project Manager Wages $6,000 including tax x 1 x 12 months72,000 
Insurance plus Workmen’s Comp70,000 
Fuel (variable)50,000 
Rent25,000 
Other25,000 
Total Annual Administration and Other (530,000)
Total Cash Uses for Prototype Development and Validation – Year 1 (3,550,000)
Cash Sources Available for Beta Conversion and Exploration – Year 2 (See Page 3) $1,300,000

NOTE:  Total cash required for Prototype Development and validation is $3,550,000. This amount needs to be placed in a bank account available for Corporate use. The balance $1,300,000 will be placed in an interest bearing account requiring two signatures subject to conditional use to continue exploration and gold production.

Sources of Funds
– Beta Exploration and Alpha Conversion (Year 2)-
Three Hi-Value Target Properties.
Cash Available after Proof of Prototype $1,300,000
Uses of Funds –
Five Months with One Month Working Capital for Alpha Conversion:
Additional Equipment Requirements $(100,000)
Site Evaluation and Preparation:  
Legal Contracts (Hydro-Mining Properties, LLC)$30,000 
Pre-site Evaluation – Professional Fees50,000 
Site Historical Research15,000 
Travel30,000 
Total (125,000)
Site Preparation and Set-up:  
Advance Crew with Preparation – to site30,000 
Drill Rig, Special Sampling Equip – Transportation120,000 
Total (150,000)
Beta Drilling:  
Direct Costs –fuel, labor, maintenance x 5 months500,000 
Sample Analysis60,000 
Offsite Sample Analysis60,000 
Evaluation for Alpha Conversion10,000 
Other40,000 
Total (670,000)
Alpha Conversion:  
One month Working Capital Requirement100,000 
Processing Equipment – Transportation35,000 
Community Involvement:  
Security (one month)5,000 
Reclamation, replanting contracts5,000 
Food concessions5,000 
Community promotions, environmental concerns5,000 
Permitting, legal review5,000 
Other40,000 
Total (200,000)
Total Cash Uses for Beta Exploration and Alpha Conversion
Year 2
 (1,245,000)
Cash Sources Available for Contingencies 

$55,000


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