Contract analysis

I. INTRODUCTION AND REGULATORY BACKGROUND 1.1 Purpose of this Document This document sets forth the description, scope of work, implementation schedule, budget, and reporting requirements for the Flint Creek Watershed Restoration Project (the "Project" or "SEP-1"), a supplemental environmental project to be implemented by Torchlight Mining Corp. ("TMC") pursuant to the Consent Decree entered in Civil Action No. 9:24-

1. The Federal Water Pollution Control Act, as amended (the "Clean Water Act" or "CWA"), 33 U.S.C. §§ 1251–1387;

2. The Resource Conservation and Recovery Act ("RCRA"), as amended, 42 U.S.C. §§ 6901–6992k; and

3. The Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), as amended, 42 U.S.C. §§ 9601–9675. The four facilities at issue are: (i) the Ridgecrest Copper-Molybdenum Mine in Granite County, Montana; (ii) the Bonanza Creek Gold Mine in Humboldt County, Nevada; (iii) the Torchlight Chemical Processing Facility in Kanawha County, West Virginia; and (iv) a formerly operated lead-zinc mine in

II. PROJECT DESCRIPTION 2.1 Project Overview Project Name: Flint Creek Watershed Restoration Project Project Location: The Project is located along a twelve (12) mile segment of Flint Creek downstream of the Ridgecrest Copper-Molybdenum Mine site, in Granite County, Montana. The project reach begins at the Ridgecrest Mine property boundary (approximately 46.6721° N, 113.1543° W) and extends downstream to the confluen

1. Stream-Bank Stabilization: Survey, design, and installation of bioengineered bank stabilization structures at twenty-eight (28) identified erosion sites along the project reach, encompassing approximately 18,000 linear feet of treated bank;

2. Riparian Replanting: Planting of approximately 45,000 native riparian plants (willows, cottonwoods, alders, native grasses, and forbs) along restored bank segments, establishing riparian buffer zones averaging 50 feet in width on each side of the channel across approximately 145 acres; and

3. Fish-Passage Improvements: Removal or replacement of three (3) undersized or perched culverts and modification of two (2) low-head diversion structures to restore aquatic connectivity for native fish species, including westslope cutthroat trout (Oncorhynchus clarkii lewisi). Total Budget: Five Million Five Hundred Thousand Dollars ($5,500,000.00). Implementation Period: The Project is anticipated to be implemented

III. SCOPE OF WORK 3.1 Component 1: Stream-Bank Stabilization Component 1 encompasses the survey, design, and construction of stream-bank stabilization improvements along the twelve-mile project reach of Flint Creek. The scope of work for this component is as follows: Survey and Geomorphic Assessment. A detailed geomorphic assessment of the twelve-mile Flint Creek channel and banks will be conducted to characterize e

Section 404 Permit (Clean Water Act). A permit under Section 404 of the Clean Water Act, 33 U.S.C. § 1344, will be obtained from the U.S. Army Corps of Engineers, Omaha District (Montana Regulatory Office), for all in-stream and bank work that involves the discharge of dredged or fill material into waters of the United States. Depending on the scope and impact of the work, authorization may be obtained under one or m

IV. IMPLEMENTATION SCHEDULE 4.1 Phase 1: Planning, Design, and Permitting (Months 1–12 from Effective Date) Phase 1 encompasses all pre-construction planning, design, and permitting activities. The anticipated Effective Date of the Consent Decree is June 14, 2025, and Phase 1 will accordingly extend from approximately June 14, 2025, through June 14, 2026. Phase 1 activities are organized into the following sub-phases

V. BUDGET 5.1 Budget Summary Table The total budget for the Flint Creek Watershed Restoration Project is Five Million Five Hundred Thousand Dollars ($5,500,000.00), allocated across the following budget categories: The budget has been developed based on preliminary cost estimates prepared by Pinnacle Creek Environmental, LLC, informed by recent comparable stream restoration projects in western Montana, current unit c

VI. ENVIRONMENTAL AND PUBLIC HEALTH BENEFITS 6.1 Ecological Benefits The Project will provide the following ecological benefits to the Flint Creek watershed: Stream Habitat Restoration. The Project will restore approximately twelve (12) miles of degraded stream habitat along Flint Creek. Stream-bank stabilization, channel recontouring, and installation of bioengineered structures will increase habitat complexity by c

VII. REPORTING AND CERTIFICATION REQUIREMENTS 7.1 Progress Reports TMC shall submit semi-annual progress reports to EPA, DOJ, and MT DEQ during the implementation period of the Project. Progress reports shall be submitted within thirty (30) days following the end of each six-month reporting period, measured from the Effective Date of the Consent Decree. The first progress report shall be due on or before January 14,

1. A narrative description of all work completed during the reporting period, organized by project component;

2. A summary of expenditures incurred during the reporting period and cumulative expenditures to date, organized by budget category;

3. Photographic documentation of work completed, including representative photographs of treated erosion sites, planted areas, and fish-passage improvements;

4. An assessment of schedule compliance, including comparison of actual progress to planned milestones and identification of any schedule deviations;

5. A description of any deviations from the approved scope of work, including the reasons for such deviations and any proposed corrective actions;

6. A summary of permits obtained or pending, and any issues or delays associated with the permitting process;

7. A summary of any interactions with regulatory agencies, landowners, or other stakeholders during the reporting period; and

8. An identification of any anticipated issues or challenges that may affect the schedule, scope, or budget of the Project during the next reporting period. 7.2 Annual Expenditure Reports In addition to the expenditure summaries included in semi-annual progress reports, TMC shall submit annual certified expenditure reports to EPA, DOJ, and MT DEQ within sixty (60) days following the end of each calendar year during t