Contract analysis

1. Entry of Consent Decree. The Consent Decree, lodged with this Court on February 19, 2025 (Dkt. No. 47), a copy of which is attached hereto as Exhibit 1, is hereby APPROVED and ENTERED as an Order of this Court. The Consent Decree is incorporated herein by reference as if set forth in full. Each provision of the Consent Decree shall be enforceable as an order of this Court.

2. Effective Date. The Effective Date of the Consent Decree shall be thirty (30) days after the date of entry of this Order, i.e., June 14, 2025, as defined in Section IV ("Definitions") of the Consent Decree. All deadlines and obligations of the parties that are measured from the Effective Date shall be calculated from June 14, 2025, unless otherwise specified in the Consent Decree.

3. Binding Effect. The Consent Decree shall be binding upon the United States of America, the State of Montana, the State of Nevada, and the State of West Virginia, and upon all Defendants — Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC — as well as upon their respective officers, directors, employees, agents,

4. Retention of Jurisdiction. This Court retains jurisdiction over the subject matter of this action and over the parties for the duration of the Consent Decree for the purpose of implementing and enforcing the terms and conditions of the Consent Decree, for the purpose of resolving disputes arising under the Consent Decree in accordance with the dispute resolution provisions set forth therein (Section XVI), and for

5. Civil Penalty Payment Schedule. Defendants shall pay the total civil penalty of Thirty-One Million Five Hundred Thousand Dollars ($31,500,000) in four (4) equal installments of Seven Million Eight Hundred Seventy-Five Thousand Dollars ($7,875,000) each, in accordance with the following schedule: (a) First Installment: $7,875,000, due on July 14, 2025 (thirty (30) days after the Effective Date); (b) Second Installm

6. Remediation Obligations. Defendants shall perform all remedial actions required by the Consent Decree at the four subject facilities in accordance with the schedules, performance standards, and specifications set forth in the Consent Decree and its appendices, including but not limited to the following milestones: (a) Ridgecrest Copper-Molybdenum Mine: (i) Submission of the Ridgecrest Remedial Action Work Plan to

7. Financial Assurance. Defendants shall establish and maintain financial assurance in the total amount of Two Hundred Forty-Five Million Dollars ($245,000,000) as required by Section XIV of the Consent Decree, consisting of the following two instruments: (a) A surety bond in the amount of One Hundred Sixty-Five Million Dollars ($165,000,000), Bond No. ISA-ENV-2025-08934, issued by Ironbark Surety of America, Inc.; a

8. EPA Past-Cost Reimbursement. Defendants shall reimburse the United States the sum of Eighteen Million One Hundred Thousand Dollars ($18,100,000) for past costs incurred by the EPA, consisting of: (a) Fourteen Million Three Hundred Thousand Dollars ($14,300,000) for removal actions conducted at the Ridgecrest Copper-Molybdenum Mine between January 15, 2021 and May 30, 2023, pursuant to CERCLA Section 104, 42 U.S.C.

9. Supplemental Environmental Projects. Defendants shall fund and implement the three Supplemental Environmental Projects described in Section XII of the Consent Decree, with a combined value of Twelve Million Dollars ($12,000,000), in accordance with the schedules, specifications, and reporting requirements set forth therein: (a) Flint Creek Watershed Restoration Project — $5,500,000; (b) Battle Mountain Community D

10. Independent Monitor. Verdant Analytics, Inc. is hereby appointed as the independent environmental monitor under the Consent Decree, with the duties, responsibilities, access rights, and compensation set forth in the Independent Monitor Agreement executed on February 15, 2025, which is attached to the Consent Decree as Appendix F. Dr. Kamal Osei, Senior Managing Director of Verdant Analytics, Inc., shall serve as

11. Stipulated Penalties. The stipulated penalty provisions of the Consent Decree, as set forth in Section XV thereof, are approved and shall be enforceable in accordance with their terms. Stipulated penalties shall accrue for each day of noncompliance with the requirements of the Consent Decree, as provided therein, and shall be payable upon demand by the United States. The accrual and payment of stipulated penaltie

12. Dispute Resolution. All disputes arising under the Consent Decree shall be resolved in accordance with the dispute resolution provisions set forth in Section XVI of the Consent Decree, subject to this Court's retained jurisdiction as set forth in Paragraph 4 of this Order. Nothing in this paragraph or in the Consent Decree's dispute resolution provisions shall be construed to limit this Court's inherent authority

13. Force Majeure. The force majeure provisions of the Consent Decree, as set forth in Section XVII thereof, are approved and shall apply in accordance with their terms. The Court notes that the force majeure provisions do not relieve Defendants of their obligation to use best efforts to comply with the Consent Decree's requirements during and after any force majeure event, and that the burden of demonstrating entitl

14. Modification. The Consent Decree may be modified only upon the written agreement of all parties and approval of this Court, in accordance with Section XXII of the Consent Decree, or upon motion by any party and order of this Court pursuant to applicable law. No modification shall be effective until it has been approved by this Court and entered as an order. Any party seeking a modification shall file a motion wit

15. No Other Relief. Except as expressly provided in the Consent Decree and this Order, this Order does not limit, modify, or otherwise affect any rights, claims, or defenses of any party, including the right of the United States, the State of Montana, the State of Nevada, or the State of West Virginia to seek further relief against Defendants for any matters not resolved by the Consent Decree. Nothing in this Order