COLOR CLAIMS, INC. 637 S. 400 East, Cedar City, UT

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1 COLOR CLAIMS, INC. 637 S. 400 East, Cedar City, UT Date: May 30, 2012 I, Craig Parkinson, Geologist, hereby state that the valuation report issued for the mining property named Lake Claims on the date of its issuance March 18, 2010 is representative of the current valuation of the asset and that the conditions by which the evaluation report was issued does not impact the recertification of the report in any way. Sincerely, Craig Parkinson Initials Investor:

2 PARKINSON GEOLOGIC SERVICES PO Box 3481 Grass Valley CA Cell Phone: March 18,2010 Wayne Aiken Color Claims, Inc. 637 South 400 East Cedar City UT MINING VALUATION REPORT LAKE CLAIMS PROPERTY Lincoln County, Nevada Dear Mr. Aiken: Parkinson Geologic Services (PGS) is pleased to present this Mining Valuation Report of the Lake Claims Property located 25 miles northwest of the Town of Pioche, Lincoln County, Nevada. This report presents the results of document research, review of laboratory analytical test results, and knowledge of the mining industry in Nevada. INTRODUCTION The Lake Claims Property is located on land administered by the Bureau of Land Management (BLM), in east-central Nevada. The property consists of 10 (ten) Association Placer Mining Claims covering 800 acres. Access to the property is via State Highway 93 west from Pioche, and then on the State maintained "Bristol Wells" gravel road to the claim group. PLACER MINING CLAIMS The property is situated within portions of Section 28 and 33, Township 4 North, Range 63 East. The placer mining claims are filed with the BLM as listed below: Claim Names Tropic Quail Creek Duck Creek Navajo Newcastle Otter Creek Paiute Panquitch Red Creek Yankee Meadows BLM Serial Numbers NMC NMC NMC NMC NMC NMC NMC NMC NMC NMC Location SW Section 28 SE Section 28 NW Section 33 NE Section 33 NW Section 33 NE Section 33 SW Section 33 SE Section 33 SW Section 33 SE Section 33

3 2 Each of the 10 claims is 80 acres in size for a total area of 800 acres, which is equivalent to 1.25 square miles. GEOLOGY The Lake Claims Property is located within the Basin and Range Province, which comprises almost all of Nevada. The region is characterized by linear mountain ranges separated by downthrown, alluvium-filled basins. The alluvial placer gravels on the property consist of dolomite, limestone, shale, and volcanic material derived from Burnt Peak to the north and from the surrounding adjacent areas. These lithologic and structural occurrences are geologically important because they are the host rocks of numerous prolific gold mines in Nevada. The host rocks are mostly Cambrian in age. The property contains underlying metal-bearing placer gravels located within current and past washes that drain the mountains. The Lake Claims Property overlies the drainages and washes that receive material derived from weathering of the bedrock occurring in the area. METALLIC RESOURCES A mineral resource is an occurrence of natural solid material in the Earth's crust in such form, quantity, and quality (grade) that the material has a reasonable prospect for economic extraction. PGS believes that the location, quantity, grade, continuity, and geologic characteristics of the subject property mineral resources are known and have been adequately interpreted from the available geologic evidence, data, and analytical test results. The mineral resources have a reasonable prospect for economic extraction by modern surface and underground mining methods, and under current metal prices and economic conditions. A mineral resource evaluation is based on geologic evidence, historic and modern sampling, and reasonable geologic and grade continuity assumptions. The mineral resource estimate presented in this report is based on geologic information and sample assay data obtained by appropriate techniques from outcrops, trenches,' pits, and workings that may exist on the property. PGS evaluated the metallic resources available in the placer gravel deposits only..lake Claims Property Metal Grade Testing Previous workers have collected geologic samples from the property and conducted laboratory analytical testing. These workers are listed below: Auric Metallurgical Laboratories Can Pay Mining, Co. Dillon Gage Refinery Iseman Consulting PGS reviewed the geologic reports and assay results obtained by the above workers, and noted a wide range in the metallic concentration values for the qold, platinum, palladium, rhodium, iridium, silver, and molybdenum resources on the Lake Claims Property. The various samples from the property were tested at different times and from different sample types such as original

4 3 samples, sample splits, magnetic concentrates, table concentrates, cone concentrates, and taiiings. The most recent analytical test results reported by Iseman (dated 7/28/09) appear to provide an accurate current representation of the metallic grades obtained from the property. The Iseman results are summarized below, where all grades are in ounces per ton except molybdenum, which is reported in pounds per ton. Dollar Value of Placer Material on July 28, 2009 Metal Grade Price Per Ton Gold Platinum Palladium Rhodium Iridium Silver Molybdenum 231b/ton 14 per pound Dollar Value $ Total Dollar Value Per Ton of Placer Material $3113 However, during the past six months, the price of both precious metals and base metals has risen. Thus, the current value of the Lake Claims Property has also risen. As of March 18, 2010, the value of the property has increased significantly because the price per ton of material has increased, as shown below. Dollar Value of Placer Material on March 18, 2010 Metal Grade Price Per Ton Gold Platinum Palladium Rhodium Iridium Silver Molybdenum 23lb/ton 17 per pound Dollar Value $ Total Dollar Value Per Ton of Placer Material $4167

5 4 Piacer Gravel Resources The Lake Claims Property consists of 800 acres, as indicated above. One acre consists of 43,560 square feet, thus 800 acres is equivalent to 34,848,000 square feet. Russ Leavitt Construction (Logandale, Nevada) conducted a tonnage estimate of the 800 acres and conservatively presumed a depth of 120 feet for the extent of the placer gravels. PGS notes that the placer gravels may extend to a depth of several hundred feet. PGS used a depth of 120 feet for the depth of the metal-bearing placer gravels on the property. Using a conversion of 27 cubic feet per cubic yard, the property contains roughly 155 million cubic yards of alluvial placer deposits. The calculations are provided below: Placer Gravel Volume Area: 800 acres x 43,560 square feet per acre = 34,848,000 square feet Depth: 120 feet minimum Volume = Area x Depth 34,848,000 square feet x 120 feet = 4.2 billion cubic feet (rounded) 4.2 billion cubic ft + 27 cubic ft per cubic yard = 155 million cubic yds (rounded) Placer Gravel Tonnage At a standard gravel conversion factor of 1.5 tons gravel per cubic yard, the 155 million cubic yards is equivalent to approximately 232 million tons of gravel. Note that the above tonnage calculations confirm the tonnage estimation prepared by Russ Leavitt Construction. Metallic Resource Value of the Lake Claims Property The value of the metallic resources on the property is calculated by multiplying the tons of gravel by the total value of the various metallic resources contained within the placer gravel material underlying the Lake Claims Property. These calculations are summarized below: Tonnage of Metal-Bearing Placer Gravels = 232 million tons. Dollar Value per Ton of Placer Gravels = $4167 per ton Total In-Place Gross Value of Placer Gravels = Tons X Dollar Value 232 million tons x $4167 per ton = $966.7 Billion To be conservative, PGS estimates an In-Place Gross Value of $950 billion for the 800 acres which comprise the Lake Claims Property.

6 5 The BOO-acre Lake Claims Property consists of 10 (ten) individual Association Placer Mining Claims that are each 80 acres in size. Thus, one 80-acre claim has an individual value equal to one-tenth (1/10) of the In-Place Gross value of the total 800 acres. Therefore, each claim has a value of $95 billion. The in-place gross value of the metallic resources on the Lake Claims Property is based on current and historical data and definitions, and the presumption there are no environmental restrictions to the anticipated mining operations. The metal resources on the property provided in this evaluation report are based on the presumption that the historical information provided to Parkinson Geologic Services is (1) accurate and reliable, (2) that the historical and current assay results from the laboratories are valid, (3) that the sample test results from the claims represent the entire property, and (4) previous historical workers have conducted their evaluations using a standard professional level of care for the mining industry. Parkinson Geologic Services thanks you for the opportunity to work on this project. Please contact me if you require assistance regarding development of the Lake Claims Property. Sincerely, Craig L. Parkinson, P.G. President Parkinson Geologic Services Certified Professional Geologist #10098 American Institute of Professional Geologists

7 6 Craig L: Parkinson, PG Geology and Mining Professional Parkinson Geologic Services Post Office Box 3481 Grass Valley CA EDUCATION Degree Discipline Institution Master of Science Master of Science Bachelor of Science Hydrogeology Mining Geology Geology University of Nevada, School of Mines University of Idaho, College of Mines Cornell College EXPERIENCE Mineral exploration, development, and production: Environmental engineering and compliance: 20 years 6 years PROFESSIONAL CERTIFICATION Certified Professional Geologist American Institute of Professional Geologists NO Registered - Licensed Professional Geologist Alaska 466 Idaho 811 Arizona Oregon 1571 Arkansas 1823 Pennsylvania 3836 California 6058 Utah Florida 2113 Washington 1214 Georgia 1584 Wyoming 2717!jcensed Engineering Geologist and Hydrogeologist Washington 1214 Certified Hydrogeologist California 563 Certified Environmental Manager Nevada 1534

8 CERTIFICATE OF ACKNOWLEDGMENT State of California ) County of \,,\evc\.c\cj-.. ) On 3l\DI~{)\D before me, &-\\\-<1\\\ ~. ~- Not\i\.\ I Date' (here insert name and title of the officer) ~ personally appeared CVCM~ l. ~Q,, \\\~ll Name~ of Signer~) who proved to me on the basis of satisfactory evidence to be the person (,&1 whose name ($) is/a~ subscribed to the within instrument and acknowledged to me that he/s}(e/t~y executed the same in his/hlr/thlir authorized capacity (~), and that by his/~/therr signature W on the instrument the person 01,. or the entity upon behalf of which the person W' acted, executed the instrument. I certify under PENALTYOF PERJURYunder the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal Above