02-06 North American Emerald Mine File Pt. 7

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NCDENR
North Carolina Department of
Environment & Natural Resources
Division of Land Resources — Land Quality Section
1612 Mail Service Center, Raleigh, NC 27699-1612
Phone [phone] Fax [phone]
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CQNEIDEMALL3' �N�: The infamiation COP.tained in thi,. facsir-jic F1 -1 R-C('TrpFlrylr,-,
mcsw,!:. md
constilutcs information which boloop to North Ameriaw. Emerald Mims, Inc. J'hi;s io, a ir tr-
individual or entity rained *)vve- If you we not dw intended rtc*entefr+ o_fix., � ndw onl: fiOT I;IC 113t Cf thC
-'Owl, YR ,art "-d tna, anv diso�o-,wv
c4Wyinr- dmributmr, or tht taking of a" arfim in r01jM= On this i11fbMWJ1-n, is 3Ui 13 13M JV-tc:. 1 yCU her,
cornmunicatior. in crixr, plewc immediate notify us by tfthonc, and ry) rM , -.51 r.--., if-:: at ; -V7 Ili: fftz
L ft wig;
.331 Dunan Lane + Hidderlito.Narth C71rc.,in,

07/11l2005 11:07 6236357030
IMI, V
I I JIM,
ULO,
SEBSidlEC, INC.
ju°.y 11, 2005
W Er/
152i' FOWEP.S FERRY -:CA D
ELDG 24 - 51ATC 100
A%TU%NTA. GA 303-9
Nt. ]antes R. Sunihmers, President/ :EO
North American Ern=rald Minces, tic.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North /-lunerican Emcxald Aline (Pelmit No. 0-06)
Review o- Blasting Records, Blasting Proced,wes,
Blasting Req rirements a;ad Vibratioj Monz:•o'iag
Bear MT_ S mm, eTs:
Per; oru` request I have re•viewedSortli E,r`terald r, iitCs .G rill•:11t; r.E :lr:;,, �'it8 :i",
Procedures, Blasting Requiremerit, and VibTatioii Mon-fm-ing Et 1' .'?lilt No. 10
are descr:bcd below.
13 isting Re; ords
i tie North Arnericar, Emerald NC'nes' Blasting Recorls were k l r:+ . t:i L'e iri
necessary informatics needed for Wrf tfpe of post bla,i evz.11; aticn ` he infb7:•rr--'1+ l=i rVZ. i-:
blasting records are accurate and consistent with the'-y-ce blasti-t ; ;o:tiducte
BiastinL Procedures
The blasting procedures at the NoT*h A xieriran Emer .d Kr-., ,a:: leiene. t7 i r,:,':. -z72►e' ..
no" break matte„ai. This is didTer-mt• from quarries anc` -onsx
larger patterns using fewer poun.cls of explosives per •iclay. T:-c l rr
storage; loading, warning signals. detonating and all clear sign is ,
in other types of reining in North Carolina.
131:�sting Re uirements 0,
There are no blasting requireme,its that vrould exceec `wse r:gwn d irr th-, e1a;. r: ;later;
agency. Oil
Vlbrattiom Monitoring ° z
North A-mencan Emerald Dine is r.aw -:monitoring ,,ho gmune )kr:.kn a<nd air -w
distance of approxirrtately 680 fc:.t. Tnis location is b•.tYreen -.h � rri nvu a d .`i+
st-, acture. This off-si:e structure is approximately 3000 feet from J c riLnirng. Ti
monitoring location is more than adequate to ensure the protectionof" Cle adjace�r -�;-ertic
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07/E /2005 11:07 6286357090 NrEil
no
SEISMIC, INC.
in reviewing the sei.,mograph dsta; I found the readings to be accurate base or: th» given
distance and pounds per delay. At the present time the vibratiolt being Frteeuce ; 5 - . fie
is very low. With the type mining North American ET=rald :dine is doszL, a: rci c s 1-.-1,::c:ssT " -
will continue to do, I do not foresee any significant incumse in theae =!dlr6gs. ' hi:= nei'r e th.a.
case i feel sure the mine can operate at a lower blasting limit: but saii.'tou: hti; undo staadi:; a_
the long range mining plan, I will not submit a recommendation at this time.
Please call if you have question, or yoc require further assistznce in thx::tt^st:e=
Sincerely,
Sauis Seismic, Inc.
Roger Reeder
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07/11/2006 11:07 8236357080
ara
SEISMICr INC.
July 11, 2005
WEfi
1627 POWERS K-RRY ROAD
ELDG 24— SUITE 100
ATLANTA. GA 30339
Nt.. lanes R. Summers, Pmsident/C'EO
North American Emerald Mines, Lac.
531 Duncan lane
lliiddenite, North Carolina 28636
RE: North American F-Merald Mine (permit No. 02-06)
Review of Blasting Records, Blasting Proced-wes,
Blasting Requirements and Vibration, Monitonng
Dear Rah. Summers:
atW�h%�sra ss� rr� ecru
vatw.5p...i595m A:.:Or�l
per your request 1 have reviewed North American Errcrald lslares' Blas i.7g Re -or, Bin! i-
procedures, Blasting Requirements and Vibration Monitoring at Fe-Amit No. 02-16,
are described below.
M sg_tiURerords
1 he North American Emerald Mmes' Blasting
R o is w m,at o d, tti) ininfo* d re
i;c i3 tea i
necessary information needed for airy type p
blasting records are accurate and consistent with the cypv bla,;Ong conducted at tliir. ;,_:. 3e.
Ed4ast1rA6 dE£o9
The blasting procedures at the NOTfa American Emerald Mir:: are designs t lF,rs'. Tall—;
not break mateA:al. This is different from quarries anC ,.onstr:c'aon. 's"his vp F , ,i.: 5 a cr ,
larger patterns using fewer pounds of a„plosiT/es per delay. The piocedwr r eF fo; e.v,
IS
torage, loading, warning signals, detonating and all clear signals, are eors.stent,a,S.i T
in other types of mining in North Carolina.
H1�estln� YieuTlfrements
There are no blasting requirements that would excece those required by t-w Mt: rr
agency.
'Vlbraiioza iVio;a toelat�
North 'c�r�cerl anAn Emerald llfiners now monitazang'ba ground vibration and aer �Ji�e , s, r�� � :'
distance of approximately 680 feet. This location is b Cv+een h4 mining and `iG ;:L `
structure. T"nis ofi" site structure is approximately 3000 feet from the mis-1ing. 1:; ; �',' s-r;
monitoring location is More than adequate to,tsvre the protection oz'the adjaee'st-c;_�ez<!ca.
tCU+iiliPcKi° :2�„4"4195i'L'li '4J':IYl R ''fJl 'O::
EiPdNrrflPAid:� knFkirl.C-d L$°$e9dFNvi"u18.W'/ CWaRAfiTFMG 614,1I1.4455
2C,r-M-2466 T/i38.�246b 3048&Y2455 704-5040466 g2-:.5i.2466 atS-$F9• 55 8b.`:,4::G12d

NFEM
E,a:= e
07/11/2005 11:07
im
8286357080
?age 2
In reviewing the s,isM(Waph data, l found the readings to be accurate ba3eg on the given
distance and pounds per delay. At the present time ti'ae vibratioin being frt� '—ed by tlee bras"i''`
Ame
lice type raining biort�t rican Erna aid :elr a is do n; ai i a
is very low. With t r ;
will continua to do, I do not foresee any significant inwase M the,e re€,dirge.',:his =r tic
T.-
case
I feel sure��mine canloPelzlano 6ubrrtitd a ea reaomrnendation asting limit; but t this t,me.. undo ' .indi.:g ?x
the long rang ug plan,
Please call if you have questions or you require further assistance in tha l :natter
Sincerely,
Sauis Seismic, Inc.
A� 64.1,
Roger Reeder
urtjar4xera.aL RRARcsA.QA etnafMMrMWF cruacrnrric covsvxuxv

r
WDENR .
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E. Michael F. Easley, Governor
Director and State Geologist William G. Ross Jr., Secretary
July 19, 2005
Certified Mail
Return Receipt Requested
7003 1010 0003 5645 1457
Mr. James R. Hill, Chairman
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Hill:
We have received a copy of a report dated July 11, 2005 from Sauls Seismic, Inc, in
response to my letter of June 24, 2005 to Mr. James Summers. However, some issues
remain outstanding.
From our telephone conference call to Mr. Summers on June 22, 2005, we understand
that you may no longer have all of the blasting records for blasts conducted under your
management. However, we request the following clarifications or additional information.
Do all records show that air blasts and ground vibrations have been within the
limits of the permit? Please set out the limits and actual levels of the air blasts
and vibrations. Overall, were the blasts consistently well within the limits (for
example average of 50% of the limit, etc., barely within the limits, or scattered
within the entire range? Are there any notations in the records within your
possession indicating that weather conditions or other circumstances that may
have caused the periodic complaints, even when the blasting measurements were
well within the limits?
2. Do any of the records note the occurrence of flyrock beyond the immediate blast
area, or beyond the guarded area? Where do the records note the occurrence of
flyrock?
3. The July 11, 2005 report acknowledges that blasting for this mine is different
from quarries and construction. Although the total poundage of explosives per
delay required may be less, the possibility of flyrock exists. What guidelines for
blast confinement are used for blasting in this case to prevent flyrock? Offsite
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-38331 FAX: [phone] \Internet www.dlr.enr. state.nc.us/dlr.htm
An Equal Opportunity 1 Affirmative Action Employer —50% Recycled l 10% Post Consumer Paper

07/11/2005 11:07 8286357080 W EM
SEISMIC, INC.
July 11, 2005
1627 FCA ERS FERRY -;CAD
BLDG 24-SUITE 100
ATLANTA. GA 3=51
hli. James R. Summers, President/CEO
North American Emerald Mines, lnc.
531 Duncan bane
I-liddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Review of Blasting Records, Blasting Procedures,
Blasting Requirements and Vibration Monitoring
Dear Mr. 5urnrnem:
oflonfo��so, ssa�sm�ic :ci��.
ww v.sa•. ;sseismic.com
Per your request I have reviewed North American Emerald Mines' -Blasting Records, Blasting
Procedures, Blasting Requirements and Vibration Monitoring at Permit No. 02-06, 'the. riasults
are described below.
Bit} stine Records
The North American Emerald Mines' Blasting Records were feurd to b,: in ord:r
necessary information needed for any type of post blast evaluation. The inibTrnatiop_ given in tl_3
blasting records are accurate and consistent with the type blasting conducted at this ;r_ Le.
Bigaaping Procedures
The blasting procedures at the Norto American Emerald Min, are designed to fors :: ;nate-iai.
not break maternal. This is different from quarries anf. nonstnc'won. _"iris gyp. b:ast;:::t;
larger patterns using fewer pounds of explosives per delay. The procedures used foss s= ,eey,
storage, loading, warning signals, detonating and all clear signals, are consistent with :aose used
in other types of mining in North Carolina.
BIgsting iReguirements
There are no blasting requirements that would exceer. `hose required by the scat;::; c < a,c ny
agency.
Vibrad0n. Mgnit0&z
North American Emerald Mine is now monitoring the ground r.bretion and air over r:,ess r=_ at a
distance of approximately 680 feet. This location is bstween te mining and thru ;;1w ^ >f'''-
structure. This off -site structure is approximately 3000 feet from the mining. The presznt
monitoring location is More than adequate to ensure the protection of the adjacent •rr�e t e
laf trUMMAi ATVMA,CA CVA"44?W=W'/ CMnq.QK"C 1CU5YNe " VOINWIMIN 7TfLMI MV ItWAkc.a:;
206-392-2466 T,09 2466 3044BS&2455 704-504.0466 502.459.2466 613399*466 W":4tl26 M113.77i•4.75q

North Carolina
James D. Simons, P.G., P.E.
Director and State Geologist
July 19, 2005
e��
NCDENR
Department of Environment and Natural Resources
Division of Land Resources
Certified Mail
Return Receipt Requested
7003 1010 0003 5645 1457
Mr. James R. Hill, Chairman
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Hill:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
We have received a copy of a report dated July 11, 2005 from Sauls Seismic, Inc. in
response to my letter of June 24, 2005 to Mr. James Summers. However, some issues
remain outstanding.
From our telephone conference call to Mr. Summers on June 22, 2005, we understand
that you may no longer have all of the blasting records for blasts conducted under your
management. However, we request the following clarifications or additional information.
Do all records show that air blasts and ground vibrations have been within the
limits of the permit? Please set out the limits and actual levels of the air blasts
and vibrations. Overall, were the blasts consistently well within the limits (for
example average of 50% of the limit, etc., barely within the limits, or scattered
within the entire range? Are there any notations in the records within your
possession indicating that weather conditions or other circumstances that may
have caused the periodic complaints, even when the blasting measurements were
well within the limits?
2. Do any of the records note the occurrence of flyrock beyond the immediate blast
area, or beyond the guarded area? Where do the records note the occurrence of
flyrock?
3. The July 11, 2005 report acknowledges that blasting for this mine is different
from quarries and construction. Although the total poundage of explosives per
delay required may be less, the possibility of flyrock exists. What guidelines for
blast confinement are used for blasting in this case to prevent flyrock? Offsite
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-38331 FAX: [phone] Internet: www.dlr.enr. state.nc.usldlr.htm
An Equal Opportunity 1 Affirmative Acton Employer— 50% Recycled 110% Post Consumer Paper

DATE,TIME
FAX NO./NAME
DURATION
PAGE(S)
RESULT
MODE
TRANSFALSSION VERIFICAiiON REPOR- `.
TIME
NAME Nt;. DF.hlr: Di_R
FA`; 9_9715?901
TEL 9i.9733^E'3'
BUSY: BUSY/NO RESPONSE
07i19 14:10
918286357080
00:00:G0
F:H
BUSY
STANDAFD

North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Quality Section Mining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fa: [phone]
FAX COVER SHEET
FAX NUMBER TRANSMITTED TO: [phone]
To: Mr. James K. Hill
Of: �Tortl Ameri an Emeralds
From: Floyd Williams
RE: Permit #02-
Date: 7/19/2005
C(
$ b35 7
S, PLEASE TELEPHONE US IMMEDIATELY AT [phone].
*IF YOU DO NOT RECEIVE ALL PAGE

07/11/2005 11:07
e286357080
NFE,
r'C
WLial
SEISMIC, INC.
In reviewing the seismograph data, I found the readings to be accurate based on the given
distance and pounds per delay. At the present time the vibration being produced by the b:tasrina
is very low. With the type raining North American Emerald Nine is doin z and as 11. n_ e, s_ P.:'
will continue to do, I do not foresee any significant incmase in these readings. his :)eirg the
case I feel sure the mine can operate at a lower blasting limit, but without fuB understanding of
the long range mining plan, I will not submit a recommendation at this time.
Please call if you have questions or you require furtlter assistance in this matter.
Sincerely,
Sauls Seismic, Inc.
Roger Reeder
BAtMMAKA6 ARWA.C-A CHAFAflAWMWv! CWavir,sc 4GIEEtl134P bL IMIETN )3lO;:v:'2T.-! K'il1`.gl

A
NCDENK
North Carolina Department of Environment and Natural Resources
Division of Land Resources Michael F. Easley, Governor
James D. Simons, P.G., P.E. William G. Ross Jr., Secretary
Director and State Geologist June 24, 2005 5645 y444
Certified Mail ❑QU3
Return
ReceintReouested '7pp3 y0113
7003 lolo 0003 5645 1440
Mr. Jaynes R. Summers, President/CEO
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 29636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Summers:
This office has received complaints regarding North American Emerald Mines (NAEM)
(Mining Permit # 02-06) mining activities in Alexander County.
Photographs have been submitted to our office showing flyrock lying on the adjoining
om Your
properties, although i have not receded arived ea sea violation of your permit We are coported specific incidences of flyrock ncerned
company. Flyrock beyond your guarprocedures at this mine dictate
that the somewhat different nature of your miningto and
nnsure the safety of neighboring persons and
that special blasting requirements are necessary
properties.
Accordingly, please submit to this office within 30 days of receipt of this letter a report
prepared by a qualified blasting consultant to cover the following items:
Review all available blasting records and company blasting procedures, and
1. necessary to conduct mining
blasting requirements for your company
operations;
2. Submit a recommendation to this office of the lowest blasting limits under
which the mine can operate; and provides the most accurate
3. verify that the location of the seismograph p
readings to ensure the protection of the adjacent properties, or recommend a
more suitable location.
We ask that you give this matter your immediate attention. If you have any questions,
please feel free to contact this office.
g' rely,
awes D. Simons, PG, PE
cc: Doug Miller, PE
Floyd Williams, PG
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-3833 \ FAX: [phone] \ Internet: wvw+.dKe; r. %Post Consumer Paper
htm
An Equal opportunity \ Atrinnative Action Employer - 50% Recy

North Carolina Department of Environment and Natural Resources,
Division of Land Resources, Land Quality Section
MINE INSPECTION REPORT
(PERMITTED MINE)
1. Mine Name: North American Emerald Mine 2. Mining permit #: 02-06
3. Operator: North American Emerald Mines, Inc. 4. County: Alexander
5. Address: 531 Duncan Lane Hiddenite, NC 28636; Atm. Mr. J. Ronald Summers
6. Pemrit expiration date: 3/15/10
7. Person(s) contacted at site: Ron Summers
8. Was mine operating at time of inspection? Yes: No: X 9. Pictures: Yes: X No:
10. Date last inspected: 4/18/05 11. Any mining since last inspection? Yes: X No:
12. Is the mine in compliance with the Operating Conditions of the permit? Yes: No: X
If no, explain:
O.C. #4A: Adequate mechanical barriers have not been provided beyond the overburden placed beyond the
berm of the mine area just west of silt basin No. 2. Silt fence has been installed along the edge of the
overburden since last inspection, but the device has not been properly installed.
13. Is the mine in compliance with the Reclamation Conditions of the permit? Yes: X No:
If no, explain:
14. Did any of the above deficiencies result in offsite damage? Yes: No: X If yes, describe the type and
severity of the damage:
15. Corrective measures needed and/or taken: 1.) Properly install the silt fence located at the edge of the
overburden placed beyond the berm of the mine area just west of silt basin No. 2 by trenching the lower 6" to 8"
of material below ground and backfilling with compacted soil.
16. Other recommendations and comments: During this inspection, an area of disturbance was noted on the
Sulphur Springs tract adjacent to the South Yadkin River in the form of a graded road. This disturbance on non -
bonded property would appear to be covered under exploration dig criteria pertinent to 3/9/05 memo in the mine
file of telephone call from Judy Wehner addressing this type of activity.
17. Is the Annual Reclamation Report +/- map accurate? Yes: No: (explain) Not reviewed: X
18. Follow-up inspection needed? Yes: X No: Proposed date:
19. Number of additional pages of inspection report: 0 20. Copy of report sent to operator: 7/1/05
CIO
Inspected by: Charles Gerstell Date: 6/29/05
Phone number: 704-663-1699

4\ • : ,
W-bENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E.
Director and State Geologist
June 24, 2005
Certified Mail 5 6 4 5 1440
Return ReceiptReauested 7003 1010 0003
7003 1010 0003 5645 1440
Mr. James R. Summers, President/CEO
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Summers:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
This office has received complaints regarding North American Emerald Mines (NAEM)
(Mining Permit # 02-06) mining activities in Alexander County.
Photographs have been submitted to our office showing flyrock lying on the adjoining
properties, although we have not received any reported specific incidences of flyrock from your
company. Flyrock beyond your guarded area is a violation of your permit. We are concerned
that the somewhat different nature of your mining and blasting procedures at this mine dictate
that special blasting requirements are necessary to ensure the safety of neighboring persons and
properties.
Accordingly, please submit to this office within 30 days of receipt of this letter a report
prepared by a qualified blasting consultant to cover the following items:
1. Review all available blasting records and company blasting procedures, and
blasting requirements for your company necessary to conduct mining
operations;
2. Submit a recommendation to this office of the lowest blasting limits under
which the mine can operate; and
3. Verify that the location of the seismograph provides the most accurate
readings to ensure the protection of the adjacent properties, or recommend a
more suitable location.
We ask that you give this matter your immediate attention. If you have any questions,
please feel free to contact this office.
S' rely,
ames D. Simons, PG, PE
cc: Doug Miller, PE
Floyd Williams, PG
Geological Survey - Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-3833 k FAX: [phone] k Internet: www.dir.enr. state.nc.us/dlr.htm
An Equal Opportunity k Affirmative Action Employer— 50% Recycled k 10% Post Consumer Paper

Business Corporation
CD-479 (39) North Carolina Annual Report
9-0D.
Name of Codporation: NORTH AMERICAN EMERALD MINES r INC
Slate of Incorporallon: NC
Fiscal Year Ending:
Date Filed: 101301200'2 4.00 V
Marshall
I
Elaine F. M of State
North Carolina
228 00061
12-31-00
Monet 10eY / yl N
Secretary of State Corp. ID Number:
561845742 ron
to er ID Number, oratds Inlor
federal Emp Y
leass complete the entire 1Igle�liine 8ronly Hess core
CheCa the boa end Comp gri ll. , jk,
itthis is the Initial t 09 nreport 0 100118110lrt, Agent. J A M t 5 K
has not Chang address 0 57 a f ( 36
f, pallistered agent & registered otlica malting MARK qrV S AXrTC j N C
fiIDD SPP rn1
4471 Sul PN4R `a
nty
of registered ofirce county; ��•FXAN ��'e� S'Y
3, Street address 8 coude✓4
nature rsn.tltut roentte M. epppintrtanll
3. It registered agent changed, signature of new agent: P .O . BOX 57 28636
SP72LAC�HIDDDENI r NC
q. Enter Orincipal,�ottu LdPq�e NG b�36
�il7',v� QT honer bef are: o
g E to p ncipal of telephone
8oZ$ G 3 5 principal officers here: EAy 7—
8, Enter name, late and business address of p , 5
ntie: �FzSI�
Name: 7 A M ES
K. HIL c
Address: F; o.8Ox S/ G otiV�3b
�f I -Nrr�I N T'Ne. S py. ins.
Name:Name: L�
Addre55155G p/tTTFi Sod om
fFi7D�'u1�'�, NC
Z28G3` Title:
i
Name:
Address:
7
Fl
Brie1ry describe then of MII,4fI1VJG
report must be completed by all corporations
EM E1ZA
Certification of annual rep
7-a nee
R r 5ju)

AM�
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E. Michael F. Easley, Governor
Director and State Geologist June 24, 2005 William G. Ross Jr., Secretary
Certified Mail
Return ReceiptReaugsted 7003 1p10 0003 5645 14413
7003 1010 0003 56451440
Mr. James R Summers, President/CEO
North American Emerald Mines, Inc.
531 Duncan Lane
Ifiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Summers;
This office has received complaints regarding North American Emerald Mines (NAEM)
(Mining Permit # 02-06) mining activities in Alexander County.
"Photographs have been submitted to our office showing flyrock lying on the adjoining
properties, although we have not received any reported specific incidences of flyrock from your
company. Flyrock beyond your guarded area is a violation of your permit. We are concerned
that the somewhat different nature of your mining and blasting procedures at this mine dictate
that special blasting requirements are necessary to ensure the safety of neighboring persons and
properties.
Accordingly, please submit to this office within 30 days of receipt of this letter a report
prepared by a qualified blasting consultant to cover the following items:
1. Review all available blasting records and company blasting procedures, and
blasting requirements for your company necessary to conduct mining
operations;
2. Submit a recommendation to this office of the lowest blasting limits under
which the mine can operate; and
3. Verify that the location.of the seismograph provides the most accurate
readings to ensure the protection of the adjacent properties, or recommend a
more suitable location.
We ask that you give this matter your immediate attention. If you have any questions,
please feel free to contact this office.
S' rely,
ames D. Simons, PG, PE
cc: Doug Miller, PE
Floyd Williams, PG
Geological Survey • Land Quality - Geodetic Survey .
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-38331 FAX: [phone] Internet www.dlr.enr. state.nc.us/dir.htm
An Equal Opportunity 1 Affirmative Action Employer-50% Recycled 110% Post Consumer Paper

State of North Carolina
Department of the Secretary of State
ARTICLES OF AMENDMENT
BUSINESS CORPORATION
Date Filed: 11/21/2003 10:25:00 A
Elaine F. Marshall
North Carolina Secretary of Stat
C200332400262
Pursuant to §55-10-06 of the General Statutes of North Carolina, the undersigned corporation hereby submits the following Articles of
Amendment for the purpose of amending its Articles of Incorporation.
1. The name of the corporation is: North American Emerald Mines, Inc.
2. The text of each amendment adopted is as follows (State below at- attach):
BE IT FURTHER RESOLVED, that paragraph 2 in the Articles of Incorporation dated .luly 26, 1993 should be amended to
read as follows:."1'he number of shares the corporation is authorized to issue is ten million (10,000,000)"
3. if an amendment provides for an exchange, reclassification, or cancellation of issued shares, provisions for implementing the
amendment, if not contained in the amendment itself, are as follows:
N/A
4. The date of adoption of each amendment was as follows:_ March 76 7003
5. (Check either a, b, c, or d, whichever is applicable)
a. The amendmeni(s) was (were) duly adopted by the incorporators prior to the issuance of shares.
b._The amendmen:(s) was (were) duly adopted by the board of directors prior to the issuance of shares.
C._The amendmem(s) was (were) duly adopted by the board of directors without shareholder action as shareholder action
was not required because (set forth a briefexplanation of why shareholder action was not required.)
d. _X_The amendment(s) was (were) approved by shareholder action, and such shareholder approval was obtained as required
by Chapter 55 of the North Carolina General Statutes.
CORPORATIONS DIVISION P. O. BOX 29622 RALEIGH, NC 27626-0622
(Revised January 2002) (Form B-02)

ARTICLES OF AMENDMENT
Page 2
6. These articles will be effective upon filing, unless a delayed time and date is specified:
This the 20`t' day of November. 2003.
r ype or rnnt tvame ana I Me
\OTES:
I. Piling fee is $50. This document and one exactor conformed copy of these articles must be filed with the Secretary of State.
CORPORATIONS DIVISION P. O. BOX 29622
(Revised January 2002) RALEIGH, NC rris -0
(Foorm B-02)

i
North Carolina Department of
—�" Environment & Natural Resources
NCDENRDivision of Land Resources — Land Quality Section
1612 Mail Service Center, Raleigh, NC 27699-1612
Phone [phone] Fax [phone]
Facsimile
Date:
Phone No:
Fax No: 7' - Q 1)
FROM: F7/o ; �,,,ti,
Extension:
COMMENTS:
H
You should be receiving page(s) including cover sheet. If you do not
receive all pages, please contact sender.

Producing the Finest Quality Emeralds & Gemstones in North America
June 14, 2005
Francis M. Nevils, Jr., P.E.
Section Chief, Land Quality Section
Sediment Control, Mining & Dam Safety
512 North Salisbury Street, Room 519
1612 Mail Center
Raleigh, NC 27601
Dear Mr. Nevils,
North American Emerald Mines has become aware of a possible regulatory violation on
the property of Sulpher Springs Properties LLC, in Alexander County, NC. Sulpher
Springs Properties recently documentation in responsebrought oour request on Tuesday, June our attention and provided2005. the attached
North American Emerald Mines did not authorize this work and only found out about this
having occurred when Jamie Hill and Lynn Hill, the managing member of Sulpher
Springs Properties brought it to our attention.
Sincerely,
James R. Summers
President / CEO
Attachments
cc: without attachments: r,.-& k+
Reef Ivey, NAEM Co
Jeff Christian, CFO
Lynn Hill, Managing 1
william Duncan, SSP
nrn
la "W—V A.
531 D office:828-635- 080 ♦ Fax [phone]

316 StlC.%F, LOAF LANE
TA11 ORSV'Il4 NC 28681
[phone]
[phone] [phone]-FAX
March 8, 2005
Ms. Lynn S. Hill, Managing Member
Sulphur Springs Properties, LLC
P.C. Box 1591
Mowing Rock, NC 28505
Mr, and Mrs. William B. Duncan
Opp Cascade Drive
H,gh Point, NC 27285
RE: Environmental Report: Sulphur Springs Properties(NAEM Lease- 80+ Acres, I iddenits
Dear Lynn, Shirley and Sill:
At your request, on February 11, 2005, i Joined Ed Hinson, Attorney, Jay Parkinson, A omey,
Michael Cookson, former IdAEM sub -contract or and Lynn Hill to investigate oomplainti about
environmental damage resulting from the construction of a road leading dust Greasy f -ask and
the South Yadkin River to the wateriv. As you know, several years ago, Environmen Al Forestry
Services improved and widened the original, existing road to the waterfall, as well as i enlitied
endangered plant and true species in the area. So, I am very familiar with the subject rea.
Although my Investigation was very brief, i noted areas where the land, watershed, riv r and
creek are being negatively impacted. Most serious is the area long the South Yadkin i nd Greasy
Creek. ''hose strearns are included in the Cstairbs. River Basin. These water source, are
classified by the Environmental Management Commission as WS-IIHOWCA. The reg lations for
this classification are extensive and detailed. The section governing this ofassification And the
entire nearly 504-sage document ran be viewed on the Commission's wabsita.
For the purpose of this report, ! will focus on the two areas where the property Is out a
compliance. The first, and most immediately obvious violation, is an Alexander Count ordinance
tire; requires a thirty -toot minllmunt buffer to protect the South Yadkin giver and the trill Aaries
feading the Over. Please note that the South Yadkin River is a major source of water Ili r
Alexander County. The water processing plant is downstream in Stony Point. This site Ation Is
shown in "Exhibit A"• a photo showing road construction to the water,` edge
The second area of vlolat on deals with North Carolina law making It Illegal to discharg i sediment
into a stream. "Exhibit BO, clearly shows sediment build up in the river. There are saw ral
locatlons where -sedimentation has occurred as a result of the non-compliance with re iulations
during road construction.
Exhibits A, S. G, D,E,F,G illustrate the following:
1-j No catch basins installed
2.) No silt fences installed

OB-'10i2006 07:53
FAX CP}f GROUP
3.)
Bare soli -no vegetation reestablished
4..)
Unstable raw vetn!cal cuts
5.)
Construction to streams' edge
6.)
Fill around mature trees -may kill trees
7.)
Destruction of native and endangered plants
B.)
Felled trees, bushes and other debris en river's edges, banks and roe iside
9.)
Aesthethicaliy unsightly area
These problems need to be addressed as soon as possible before detection by the w ious
regulatory agencies, particularly NCDEHNR. The penalties for some of these viclatior ; run from
$500 to $5,000 Pei day. It is to your advantage to oocomplish the Olean -up and comp ante
without the pressures of fines or penalties. Whan these problems are corrected, I rec mmend
that a long-tann environmental plan be developed and implemented.
Please feel tree to contact me for further information on the report and what is require to bring
this beautiful property into compliance.
cordially yours.
Shawn Cox, ISA-CA
Environmental Forestry Services, Inc-
C.C.: jay Parkinson, Attorney -at -Law
Ed Hinson, Attorney -at -Law
Encl.
Z 08

ern
NCDENR
North Carolina Department of
Environment & Natural Resources
Division of Land Resources — Land Quality Section
1612 Mail Service Center, Raleigh, NC 37699-161:
Phone [phone] Fax (919) M-2376
Facsimile
Date:
7
TO:
Phone No:
Fax No: 14�7 — bO�'J C� Q>'--O
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FROLM: = Q +) C Extension:
COiVD ENTTS: btrprI
You should be receiving pages) including cover sheet. If you do not
receive all panes, lease contact sender.

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NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E. Michael F. Easley, Govemor
Director and State Geologist June 24, 2005 William G. Ross Jr., Secretary
Certified Mail
Return Receipt Requested
7003 1010 0003 5645 1440
Mr. James R. Summers, President/CEO
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-'06)
Dear Mr. Summers:
This office has received complaints regarding North American Emerald Mines (NAEM)
(Mining Permit # 02-06) mining activities in Alexander County.
Photographs have been submitted to our office showing flyrock lying on the adjoining
properties, although we have not received any reported specific incidences of flyrock from your
company. Flyrock beyond your guarded area is a violation of your permit. We are concerned
that the somewhat different nature of your mining and blasting procedures at this mine dictate
that special blasting requirements are necessary to -ensure the safety of neighboring persons and
properties.
Accordingly, please submit to this office within 30 days of receipt of this letter a report
prepared by a qualified blasting consultant to cover the following items:
1. Review all available blasting records and company blasting procedures, and
blasting requirements for your company necessary to conduct mining
operations;
2. Submit a recommendation to this office of the lowest blasting limits under
which the mine can operate; and
3. Verify that the location of the seismograph provides the most accurate
readings to ensure the protection of the adjacent properties, or recommend a
more suitable location.
We ask that you give this matter your immediate attention. If you have any questions,
please feel free to contact this office.
S p'eyrely,
ames D. Simons, PG, PE
cc: Doug Miller, PE
Floyd Williams, PG
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • W2 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-3833 \ FAX: [phone] \ Internet: www.dlr.enr. state.nc.us/dlr.htm
An Equal Opportunity \ Affirmative Action Employer - 50% Recycled \ 10% Post Consumer Paper

05/03/2005 15:14 8286357080 NAEM
Producing the Finest Quality Emeralds & Gemstones in North America
FAX COVE ►A� at a
TO:
AWN:
FATE:
FAX A
�7
E: The infamyion carievred in this Tacsimile taa�r%.. as�A in any ecamqun:��tg dkr:umei*t:.
wa�itotes infotmatim which ketong m Naeh Anw*ican Emadd Mines, ia0. This mfcm Wion 3s B�en2cd ��ly fi7r dre ur: oft%:
individual or entity named above. If you me nW ffis 6acardcd recipnait bf tltis iafaprrlBQi�[I, ion ire hmat>y tt0�i'tsd that racy d=scfe:�tn<.
copying, d9shibation or the g=ia8 offfiy Aaron in Nia� on this inPotmaeian, a atriaty txohitdted. Ifym hour. received G9ls
eoalinanlearion 7n error, plcax immrsdiatc nptilY us by tdephoae, end rctum dxc ori�nas naesmYF shone vla4"•e U.S. Postal .`;er<+;ca
531 Duncan Lane f ffiddenite, North Carolina 7%36
Office: 828-635-8080 + Pau: 828-E35-70M

05/03/2005
NAEM F
15:14 8286357080 �

Map of Hiddenite, NC by MapQuest
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Hiddenite, NC 28636-8365, US - Hiddenite Hotel Offers - Hiddenite Flight Offers
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(e.g., Theaters)
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http://www.mapquest.com/mapslmap.adp?country=US&addtohistory=&formtype=address... 4/6/2005

NCDENR MRO
Fax:[phone] Apr 13 2005 14:54 P.02

Parcel Print
Page 1 of 2
[� �Parcel Print Display
Parcellnf t'
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Account Number
0901268
Sequence Number
12982
Map Number
H_7A
Lot Number
Owner Name
BROWN SOHN M & OTHERS
Owner Mailing Address
230
R STE F
City, State
CHARLOTTE NC
Zip Code
28227
Deed Book / Page / Date
043521842002
Description
SR 1492
Total Value
$349,500.00
Acres
134
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Alexander County, NC Property Record Card
Page I of I
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4/6/2005

petition
Subject: petition
From: "Gary Herman" <[e-mail]>
Date: Mon, 20 Dec 2004 12:13:33 -0500
To: <[e-mail]>
Mr. Williams,
I am requesting information about a petition filed by several people in Alexander
County regarding the North American Emerald Mines' application to expand its
blasting area to 94+ acres. Any forms you may have or information you could send
me would be greatly appreciated. I left a voice mail on your phone system, but if
You could provide a few quotes and some pertinent information in a return e-mail,
that would hopefully suffice. Sorry for the bother, but I do appreciate your help!
Sincerely,
Gary Herman
The Taylorsville Times
828-632-2532
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12/20/2004 2:39 PM

North Carolina
Michael F. Easley, Governor
oepartmenNCDEN—
tand
North American Emerald Mines, Inc.
Attention: Mr. J. Ronald Summers
531 Duncan Lane
Hiddenite, North Carolina 28636
Natural Resources
William G- Ross Jr
DIVISION OF LAND Secre
LAND QUALITY SECTIONCES
September 9, 2004
RE: North American Emerald Mine (Permit #02-06)
Dear Mr. Summers: Alexander County, N. C.
Attached is a copy of our report
site for which our records show p rt documentin
g an Provisions is North Carolina General Statute 74_56 l he inspection
Lionwrecently conducted at a
you to be responsible. The inspection was
Performed mine
Miningtined under the
Please review the re Act of 1971.
the inspector. view port carefully and note an
required to correct an deficiencies that mase note a y problems or deficiencies documented by
y y recommendations and/or specific corrective actions
y be listed.
The responsibility for understanding and complying with
mining permit and the Act lies with you.
the terns and conditions of Your
Please do not hesitate
attached report. to contact this office if You have any questions concerning the
Your cooperation is appreciated.
Sincerely,
ahid S. Khan
Attachment Asst. Regional Engineer
cc: Floyd Williams, pc, _Mining Specialist
919 N@n Street, Mooresville, North Carolina 28115
Phone: [phone] FAX:
40 Eqoa' 704-663.6040 I Internet: www.enr.state.nc.us
0PpOrtunrcy; Affirmative Action Employer- 50 °% Recycled 110 °/ P
° ost Consumer Paper

"..,,per
�1, i J
w.�
�R,.
Elaine F. Marshall Lr.rHrc i lvjjt:jN ! OFTHE
Secretary SECRETARY OF STATE
PO Box 29622 Raleigh, NC 27626-0622 [phone]
Corporations
•Corporations Home
'Important Notice
*Corporate Forms/Fees
*Corporations FAQ
'Tobacco Manufacturers
*Verify Certification
'Online Annual Reports
Links
*Secretary Of State Home
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Legislation
•1999 Senate Bills
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*Other Legislation
Search
•By Corporate Name
*For New Corporation
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Online Orders
*Start An Order
•New Payment Procedures
Click here to: Date: 10/26/2004
View Document Filings 1
Print a pre -populated Annual Report Form I File an
Annual Report I
Corporation Names
Name Name Type
NC NORTH AMERICAN
EMERALD MINES, INC. Legal
Business Corporation Information
SOSID:
Status:
Date Formed:
Citizenship:
State of Inc.:
Duration:
Registered Agent
0328502
Current -Active
7/29/1993
Domestic
NC
Perpetual
Hill Jr, James K
471 Sulpher Spring Rd.
Hiddenite NC 28636
P.O. Box 57
Hiddenite NC 28636-0057
No Address
471 Sulpher Spring Rd.
Hiddenite NC 28636
For questions or comments about the North Carolina Secretary of state 's web site, please send e-mail to
Webmaster.
For questions or comments concerning the Corporations Division, please send e-mail to Corporations
Administrator
Agent Name:
Registered Office
Address:
Registered Mailing
Address:
Principal Office
Address:
Principal Mailing
Address:
Click here for help downloading forms.
1 of 1
10/26/2004 1:43 PM

Entity Names
For
http://I.secretary.state.nc.us/Corporations/soskb/(
North Carolina
DEPARTMENTOF THE
secretary r A a • 1
TE
•'
Corporations
•Corporations Home
•Important Notice
"Corporate Forms/Fees
'Corporations FAQ
"Tobacco Manufacturers
'Verify Certification
*Online Annual Reports
Links
*Secretary Of State Home
*Business License
"Register for E-Procurement
*Dept. of Revenue
Legislation
•1999 Senate Bills
•2001 Bill Summaries
•Annual Reports 1997
"Corporations 1997
'Other Legislation
Search
"By Corporate Name
•For New Corporation
*By Registered Agent
Online Orders
*Start An Order
•New Payment Procedures
Click here to: Date: 10/26/2004
View Document Filings 1
Print a pre -populated Annual Report Form I File an
Annual Report I
Corporation Names
Name Name Type
NC NORTH AMERICAN
EMERALD MINES, INC. Legal
Business Corporation Information
SOSID: 0328502
Status: Current -Active
Date Formed:
7/29/1993
Citizenship:
Domestic
State of Inc.:
NC
Duration:
Perpetual
Registered Agent
Agent Name:
Registered Office
Address:
Registered Mailing
Address:
Principal Office
Address:
Principal Mailing
Address:
Hill Jr, James K
471 Sulpher Spring Rd.
Hiddenite NC 28636
P.O. Box 57
Hiddenite NC 28636-0057
No Address
471 Sulpher Spring Rd.
Hiddenite NC 28636
questions or comments about the North Carolina Secretary of State's web site, please send e-mail to
Webmaster.
For questions or comments concerning the Corporations Division, please send e-mail to corporations
Administrator
Click here for help downloading forms.
of 1
10/26/2004 1:43 PM

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TRANSMISSION VERIFICATION REPORT
TIME
: 12/02/2004 14:46
NAME
: NC DENR DLR
FAX
: 9197158801
TEL
: 9197333833
SER. #
: xxxxx ==:rx
DATEJIME
FAX NO./NAME
12/02 12/02 14:42
DURATION
66
PAGES?
10:04:16
RESULT
17
OK
MODE
STANDARD
ECM

+ o
North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Quality Section Mining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fax: [phone]
FAX COVER SHEET
FAX NUMBER TRANSMITTED TO:
To:
Of:
From:
RE:
Date: ;Id V
COMMENTS:
GL
•IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US IMMEDIATELY AT [phone].

� A
e
a
e
ma s farm
aeaCaryl
that m be ea Orth d ,Is of green gold?
pVus, d,$ le wapramMENsTonnNaE
fief IgEwILLtAMS cause he likes to
S9 P WOES WITHOUT GLOVES,b athecoldweight
ertip an Shaggy"
aE MIt EE athis fing sed pahtl•
e red earth his callow he looks like
feelth treasure in energy, old,
of prospective Of syuirrelly eis38years
lanky>full t],em both
haired, around in
ud,
d a f hgo0a d her,h a dSyedigging in
divorced a" It e
th,Nortb

The Emerald Hunter
Finding this size and quality in
the United States is like hitting oil
in midtown Manhattan. This cal-
iber of emerald simply is not sup-
posed to happen here. If you want
good emerald you go to Zambia,
Brazil, Colombia. Colombia alone
accounts for roughly 60 percent of
an annual global yield that is too
small to fill up the shallow end of
a swimming pool.
ow Hill believes he is on
the trail to the mother
lode, and he is digging
for it in the foothills of
North Carolina's Brushy
Mountains. If he is right and there
is a reservoir of premium emerald
in his Faulknerian postage stamp of
native soil (Hiddenite, pop. 1703), it
could give him —a guy who dropped
out of college to become a treasure
hunter, of all things —the singular
power to make the United States an
Before & After -A cut
emerald can be worth ten
times more than a rough gem.
unlikely new player in an ancient
world trade.
Hiddenite is about an hour's drive
northwest of Charlotte, off a two-
lane highway that runs through a
scrappy landscape of chicken houses,
cow pastures, trailer parks and rac-
coon road kill.
It's all sitting on some of the most
baffling geology on the planet. To
oversimplify, sometime between 100
million and 600 million years ago,
as tectonic plates shifted and the
earth cracked, pressurized mineral
waters and gases rose in streams from
the deep. They cooled and crystal-
lized along fault lines and fissures.
If streams containing beryl (a com-
mon, colorless mineral) ran across
rocks containing the coloring agent
chromium, the result was emerald.
Quartz and mica usually wound up
in the mix, along with a yellow
limonite and clay mixture that comes
off on the fingers like pollen.
143

So wheO the abandoned came up for auction Rtst Min
had little co in 1996, Hill
this rnPetition. "Buy this and
and this and this," he told his
mother and grandmother, Who had
been looking to Purchase parkland
tract onto the area. to
marked tract after
the until he had
he had worn ragged
had lad acres of forest.
A gravel road leads there, to a
clearing among the poplars and oaks.
The miner stands on a bluff and
e looks out ----�
on the land that will oc_
Pie
c him for thee
of his life. IT
pie CO nothing
here eo
and say, `Why, it
amt n° g but a bunch
bunch of rock; it don't °f dirt, a
mg to me,"' he sa s. " like not'
like ever Y But to me, it
And what if theg.'
treasure the elusive buried
ure isn't there, I ask. Jamie Hill
draws hard on his cigarette, flicks it,
"p sparks flying into the twilight.
s there,- he says. "It's there.,'
JHADOW OF A GIANTMy daughter's eighth grade history class ]
visit to our nation's capital. Unfortun
greatly enthused Panned a
aboutatri ately she was not
educational" to be fua. P that she considered too
However, on their return, 7
how she and her clwas pleased to hear
assmates had been filled with
awe and emotion as they gazed at the Washington
"To thin Monument.
Forrest G k p oma she marveled. "We were standingright where
I
stoo
—Conrribured b
y ANN W9LRgR
A VOUCH OF GRACE
Traveling rnwith arn in China Chi ese couple.on and I shared a sleeping corn
art
h ur i Chinese words, so co y spoke no English a hour into the trip, nversation was i nd We
Aherspcakingfohafewemancalledso mpossible—until an
wife, who also spoke into it. meone on his cell phone.
Then ton, passed the phone to his
the phone. Feelingrather Foolish, I said Y surprise, she attheotherend Hello' handed me
lish. I told was the couple's dau lato it. Th
herabou ghterw The person
Lion to her t us and our trip, and she who spoke perfect Eng-
parents. How delightful that relayed the informa-
teach us such a lesson about Chinese a sim le
P phone call could
graciousness.
—Conrribured by MA V RrSN MACRAy
145

Producing the Finest Quality Emeralds & Gemstones in L�"
North America
October 19, 2004
OC Land Department of Environ
Quality Section mental and Natural Resources N
Division of Land Resources
1612 Mail ServiceOtj�3� �lt7bnb
Raleigh, NC 27699-7612 Center ���1
ATTENTION: �� ���
Ms. Judith A Wehner
Assistant State Mining Specialist
RE: Permit # 02-06
North American Emerald Mines
Alexander County
Yadkin River Basin
Dear Ms. Wehner:
Please find e
owners of o enclosed a "gqn-� le"
our intent to increase
letter that was sent to the
with your recommend ase the permitted acre adloining land
recommendation. age in accord
I have also e once
enclosed the "certified mail" receipts.
Please advise on any further
modification. actions required by us to secure the mining
Since^re!„
Ron Summers,n Preside
North America nt
Emerald Mines, Inc.
531 Duncan Lane ♦ Hiddenite, Office: 828_635-8080 Fa N82g Carolina 28636
635-708p

Producing the Finest Quality Emeralds & Gemstones in North America
Certified Mail
Return Receipt Requested
October 8, 2004
SAMPLE
RE: Permit No. 02-06
North American Emerald Mines, Inc.
Alexander County
Yadkin River Basin
Dear Mr. Brown:
This is to notify you that NAEM, Inc. has formally applied through the
North Carolina Department of Environment and Natural Resources in
Raleigh to increase the company's permitted mining acreage to
94.6 acres.
This is a strategic decision only that will facilitate the approval
process to secure the use of future land for mining purposes. At this
time we do not foresee any change in our current mining plans.
Sincerely,
J. Ronald Summers, President and CEO
North American Emerald Mines, Inc.
531 Duncan Lane® Hiddenite, North Carolina 28636

n
■ Complete items 1, 2, and 3. Also complete A.
item 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse C,
so that we can return the card to you.
■ Attach this card to the back of the mailpiece, X
or on the front if space permits.
IX
1. Article Addressed to:
OV 0
3Z� VAOIS LYE
%1r &O, k( " 2&&3(0
It
7awly) 11
S. ,Date oC elivery �/I 0
IWh get
n o,�,�ro«Pa
❑ Yes
H No
3. Service Type
— Cer ified Mail ❑ Express Mail
`❑ Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Extra Fee) ❑ Yes
2. Article Number 7003 2260 0007 6157 6080 I
(transfer from service label) I
PS Form 3811, March 2001 Domestic Return Receipt 102595-01-M-14241
I
,
■ Complete items 1, 2, and 3. Also complete A. Received by (Please Print Clearly) S. Dateof/Delivery
item 4 if Restricted Delivery is desired. N b I
■ Print your name and address on the reverse C. Signature
so that we can return the card to you. p Agent
■ Attach this card to the back of the mailpiece, X dr ❑Addressee j
or on the front if space permits.
D. Is delivery addrejApifferent from Rem 1? ❑ Yes
1. Article Addressed to: If YES, enter delivery address below: ❑ No
VDu'f& D-Z� V,f n S
O+v-r\ 1p-Me .y-oj S
Flo, b04 LC)&
g
2. Article Number
(Transfer from service label)
PS Form 3811, March 2001
3. Service Type
k Cer ifed Mail ❑ Express Mail
❑ Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Edre Fae) ❑ Yes I
7003 2260 0007 6157 6042
Domestic Return Receipt
■ Complete items 1, 2, and S. Also complete
Rem 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
'513'F-1 .1
5 `- K
t�'rs�r
� n'361+
U[ U'Z"(anfl, nc 29613
2. Article Number
(rmmlar from service label)
PS Form 3811, March 2001
A Receivedy (Please Print Clearly) S. Date of Delivery
/y
C. Si90aWK
D. Is delivery addrO6 different from Item 19
U_ Yew
o
If YES, an,fdolivery address below:
I
3. Service Type
I
❑ Certified Mail ❑ Express Mail
❑ Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Edna Fee)
❑ Yes
7003 2260 0007 6157 6066
Domestic Return Receipt
102595A1-M-1424'
t6j�'-'

■ Complete items 1, 2, and 3. Also
item 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
SO that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front if space narma.
I. Article Addressedto:
Mi,adhl1 Fr Offtun I�'Ugl�c
❑ Express Mail
❑ Return Receipt for Merchandise
2. Article Number- """""4O1 uenveryl (5rtra Feel
❑ Yes
(transfer font seMos labeq 7003 2260 0007 6157 6097
March 2001 Domestic Return
PS Form 3811, Receipt
102595- "--- 01-M;1424
■ Complete items 1, 2, and 3. Also complete
Rem 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
47IY�J�-Kllc� (�K.��c�(l(�KlY1
3H fnAcfcdanlA
*mo)IC"
IC Zk�
A. Received by (Please Print Clearly) I B. Date of Delivery
❑ Agent
X 11 ❑ Addre
D. Is deliv different from Reem 1? ❑ Yes
R Y,E3, enter deliv aifdress below: ❑ No
� C
3. Service Type')
❑ Certified Mall ❑ Express Mail
❑ Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Fife Fee) ❑ Yes
2- Article Number
7003 2260 0007 6157 6073 i
(trans/er from service /abeQ _.. ___ ——_.._--._.-_-.__ ___ _ __
PS Form 3811, March 2001 Domestic Return Receipt 102595-01-M-1424
■ Complete items 1, 2, and 3. Also complete
Rem 4 if Restricted Delivery is desired.
■ Print your name and address on the reverse
so that we can return the card to you.
■ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
8u� gofialIswa
A. Weyecl by (Pleas Plat Cleary) I B. Date of Delivery .
C.
❑ Agent
r-1 nda.e�em
D. Is delivery address different from Rem 1? ❑ Yes
If YES, enter delivery address below: ❑ No
S. Service Type
Certified Mail ❑ Express Mail
Registered ❑ Return Receipt for Merchandise
❑ Insured Mail ❑ C.O.D.
4. Restricted Delivery? (Extra Fee) ❑ Yes
2. Article Number
(transfer from service label) 7003 2260 0007 6157 6059
PS Form 3811, March 2001 Domestic Return Receipt 102595-01-M-1424
10I'�j�6ij
L
a�

TRANSMISSION VERIFICATION REPORT
TIME
: 08/27/2004 08:47
NAME
: NC DENR DLR
FAX
: 9197158801
TEL
: 9197333833
SER.#
: xxxxxxxxxxxx
DATEJIME
08/27 08:45
FAX NO./NAME
88286357080
DURATION
00:02:13
PAGE(S)
04
RESULT
OK
MODE
STANDARD

North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Quality Section dining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fax:[phone]
FAX COVER SHEET
FAX NI MBER TR.�NSM=D TO:
To:
Of:
From:
RE: F'U.Vuw(n IL4tiJ
Date: �Il a ! I d
COMMENTS:
*IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US IMMEDIATELY AT (9I9) 733-4574.

TRANSMISSION VERIFICATION REPORT
TIME :
09/02/2004 10:12
NAME :
NC DENR DLR
FAX :
9197158801
TEL :
9197333833
SER.* :
xxxxxxxxxxxx
DATEJIME
09/02 10:11
FAX NO./NAME
87046636040
DURATION
00:00:51
PAGE(S)
03
RESULT
OK
MODE
STANDARD

North Carolina Department of Environment and Natural Resources
Division of Land Resources - Land Qualitv Section Mining Program
1612 Mail Service Center, Raleigh, North Carolina 27699
[phone] Fax:[phone]
FAX COVER SHEET
FAX vUN1BER TRANSMITTED TO:
To:
From:
r
RE:
Date:
LG�c/G4/.
`IF YOU DO NOT RECEIVE ALL PAGES, PLEASE TELEPHONE US INIMEDIATELY AT [phone].

Certified Mail
Mr. Summers
Page 2
As required by 15A NCAC 513.0013, you are hereby advised that you have 180 days
from the date of your receipt of this letter to submit all of the requested information. If you are
unable to meet this deadline and wish to request additional time, you must submit information,
in writing, to the Director clearly indicating why the deadline can not be met and request that
an extension of time be granted. If an extension of time is not granted, a decision will be made
to grant or deny the mining permit based upon the information currently in the Department's
files at the end of the 180-day period.
Though the preceding statement cites the maximum time limit for your response, we
encourage you to provide the additional information requested by this letter as soon as
possible. Your prompt response will help us to complete processing your application sooner.
Please contact me at [phone] if you have any questions.
Sincerely,
?ud�ith A. Wehner
Assistant State Mining Specialist
Land Quality Section
Enclosure
cc: Mr. Doug Miller, PE

/North American Emerald Mines
Subject: North
Amencan Emerald Mines
From: Charles Gerstell <Charles.Gerstell@ncmail
Date: Wed, 08 Sep 2004 16:30:58 -0400 .net>
To: Michael Landis <[e-mail]>
CC: [e-mail]
Mike,
A recent inspection of North American Emerald
County found work beyond the approved permit limits.
also Mines in Alexander
noted on site which A crusher was
mining is being used to crush
area. stone removed from the
I am referring this operator
needs or has a permit to you as it is undetermined if the
crusher. from the Division of Air
It also It for the
Please appeared that some material had already been crushed.
matter. You need any addtional inform
Charles
anon regarding this
Charles Gerstell - [e-mail]
%TITLE$
North Car 1'
o ina Dept. of
Div. of Land Resources
919 N. Main St.
Mooresville, NC 28115
Ph: [phone]
Environment & Natural Resources
Land Quality Section
Fax: [phone]
Charles Gerstell <Charles.Gerstell ncmail.net>
%TITLE%
NC DENR - Mooresville
Div. of Land Resources - Land Quality Section
of I
9/10/2004 11:08 AM

North Carolina
James D. Simons, PG, PE
Director and State Geologist
Certified ail
Return Receipt R_ e_g_ u_ ested
©7,�
NCDENR
Department of Environment and
Division of Land Resources
Land Quality Section
Mr. J. Ronald Summers
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Permit No. 02-06
North American Emerald Mine
Alexander County
Yadkin River Basin
Dear Mr. Summers:
July 19, 2004
Natural Resources
Michael F. Easley, Goverr
William G. Ross Jr., Secret
�002 3y50 Z093 ?�53 4381
We have reviewed the application your company submitted for the above referenced
mine site. However, the following information is needed to continue processing your
application for the above referenced mine site.
As per the Director of the Division of Land Resources, please re -notify (including return
receipt from certified mail) all of the adjoining landowners of your intent to increase the
permitted acreage to34.6 acres. The notifications on file indicate only an increase of 14
acres. I have enclosed a Notice form for your use.
Please be advised that our review cannot be completed until all of the items listed
above have been fully addressed.
In order to complete the processing of your application, please forward two (2) copies of
the requested information to my attention at the following address:
Land Quality Section
Division of Land Resources
Department of Environment and Natural Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 / FAX [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity I Affirmative Action Employer-50% Recycled 110% Post consumer Paper

North Carolina
James D. Simons, PG, PE
Director and State Geologist
Certified Mail
Return Receipt Requested
A r
NCDENR
Department of Environment and Natural Resources
Division of Land Resources
Mr. J. Ronald Summers
North American Emerald Mines
531 Duncan Lane
Hiddenite, North Carolina 28636
Re: North American Emerald Mine
Mining Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Summers:
Land Quality Section
Michael F. Easley, Governor
William G. Ross Jr., Secretary
June 16, 2004
7002 3150 0003 7053 3414
The review has been completed on the modification request your company submitted
for the above referenced mine site. However, the following is needed to continue processing
your application:
The reclamation bond was calculated for this site using the information submitted in the
application request. The reclamation bond for this site has been calculated to be $59,000.00.
The calculation worksheet is enclosed for your review and the bond or balance ($500.00) will
be required prior to approval of this modification.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that the modification request cannot be completed until the new bond
amount has been received.
As required by G.S. 74-51 (h), you are hereby advised that. you have 60 days from the
date of your receipt of this letter to submit the reclamation bond. If you are unable to meet this
deadline and wish to request additional time, you must submit information, in writing, to the
Director clearly indicating why the deadline can not be met and request that an extension of
time be granted.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-45741 FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper

/ 1r
.APPLICATION FOR A MINING PERMIT
E. DETERMINATION OF AFFECTED .ACREAGE AND BOND
The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a range
of 3500 to $5, 000 per affected acre) for each permitted mine site based upon the acreage approved by the
Department to be affected during the life of the mining permit. Please in, err the anar2rimare roved n t, .
AFFECTED
CATEGORY ACREAGE
RECLA,NIATION RECLAMATION
COST/ACRE* COST
Tailings/Sediment Ponds: Ac.
X $ /><,'D/Ac. = $ ` &C. CG
Stockpiles: 15 Ac.
X S %ar'i'- /Ac. = $ `I N '' I (`i
Wastepiles: _/. % Ac.
X S :ICi6 /Ac. = $ ?. C c co
Processing Area/Haul Roads: Ac.
X $ 101V/Ac. = $
Mine Excavation: ` Ac.
X $ .d0 d /Ac. = $ ! 3 4C( C.�,
Other: P , Ac.
X $ — /Ac. = $
TOTAL AFFECTED AC.: LE. II Ac.
( TOTAL PERMITTED AC.: ') Y- k_ Ac.)
Temnoran� & Permanent Sedimentation 8 Erosion Control Measures*
Divtde the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage --- Ac.
b) Positive Drainage !J Ac.
X $1,500.00 =$- <�tot>f',CT-
Inflation
SUBTOTAL COST: $_•�(=1 `� ` _ OC
Factor:
0.02 X SUBTOTAL COST:. $ "0 , CC
\ �
X Permit Life (1 to )10 years):
INFLATION COST: $--!:�C`i C, ':r'.
TOTAL COST = SUBTOTAL COST + INFLATION COST = $ J ` ','7 C [,
Total Reclamation Bond Cost: $
(round down to the nearest $100-00)
-14- 1� ?v.t
l C
mil"+.CI,

MINING CHECKLIST FOR ROUTING
Applicant's Name: Nrn u} d, � roject Name:ol;
Applic./Permit No.: Q?
County: Date Received: 5
Reviewer:
River Basin Name: __,p/
❑ Ne ❑Renewal
❑ Modification (inside permit boundaries)
odification (outside permit boundaries
❑ Partial Releasadditional Information
e ) ❑ Transfer ❑ Release ❑Fee Received: $❑ Fee Needed: $_
__
�?CO'Onal
nli a ion n +�Office
Office Mining Application Review Checklist" t loneo .plete copies; attach the "LQ5 Regional
"Mining Application Review Form" to the other co rc py and attach � the DWQ and DAQ
copy, send both copies to the Regional Engineer)
❑ Division of Water Resources Dam' Routed Rec'd
❑ NC Wildlife Resources Commission Date. Routed _ — --
Date: Routed Rec'd ----
El US Fish & Wildlife Service Date: Routed Rec'd _
(Only new applications and modRecd
ificationreciuests that add land tothe
� '
n�-
Permit)
❑ Division of Parks & R
❑ NC Geological Suecreation
ry Date: Routed Rec'd
ey Section Date: RoutedRcc� (Only new applications and modification requests that add la he permit)
❑Division of Archives & History Date:
(Only new applications) Routed Rec'd
El Other. �—
Date: Routed � Rec'd _
**5u5pen!5e Date for Comments:
from receipt) (no later than 25 days
Please note the following:

eroaucing the Finest Quality Emeralds & Gemstones in North America
May 18, 2004
Judith A.Wehner
North Carolina Department of Environmental and Natural Resources
Assistant State Mining Specialist
Land Quality Section
Dear Ms. Wehner:
RL•CE D
MAY �11404
In accordance with our recent phone conversation and per your instructions, I have
enclosed the signed receipt from the certified mail sent to Mr. David P. Sprinkle advising
him of our intentions to expand the current mining site.
We are continuing to work with Peoples Bank in Hiddenite to effect the additional bond
for $500 and expect to complete this paperwork shortly.
Please advise if there is any further information you require of NAEM to complete this
mining permit modification.
Thank you,
J. Ronald Summers, President and CEO
attachment
531 Duncan Lane ♦ Hiddenite, North Carolina 28636
Office:828-635-8080 ♦ Fax:[phone]

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist
April 7, 2004
Certified Mail
Return Receipt Requested
Michael F. Easley, Governor
William G. Ross Jr., Secretary
7002 0860 0006 5833 6965
Mr. James K. Hill, Jr.
North American Emerald Mines, Inc.
PO Box 57
Hiddenite. North Carolina 28636
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Hill:
We have reviewed the modification request and additional information your company
submitted for the above referenced mine site. However, the following information is needed to
continue processing your application:
Please provide proof, such as copies of the signed receipts from certified mail, that Mr.
David P. Sprinkle has been notified of your modification request. Please find enclosed
a notification form for your use.
The reclamation bond has been calculated using the information submitted in the
application. The reclamation bond for this site would be $59,000.00. The calculation
worksheet is enclosed for your review and the new bond or balance ($500.00) will be required
prior to approval of this request.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604
An Equal Opportunity 1 Affirmative Action Employer — 50% Recycled 110% Post Consumer Paper

APPLICATION FOR A MINING PERMIT
E. DETERMINATION OF AFFECTED ACREAGE .AND BOND
The following bond calculation worktheet is to be used to establish an appropriate bond (based upon a range
of $500 to S5, 000 per affected acre) for each permitted mine site based upon the acreage approved by the
DepartmentPt7oto be affected during the life of the mining permit. Pleare rmvrr the annmrimnro r_
CATEGORY AFFECTED
ACREAGE
Tailings/Sediment Ponds: f GJ Ac.
Stockpiles: � ,
Ac.
Wastepiles: Z. T. Ac.
Processing Area/Haul Roads: -2. 3_ Ac.
Mine Excavation: (- ,-9 Ac.
Other: FJ2? Ac.
TOTAL AFFECTED AC.: 1.j . Ac.
( TOTAL PERMITTED AC.: !Y- 4= Ac.)
RECLAMATION
COST/ACRE*
X
/Ac.
X
/Ac.
X
$ /Ac.
X
$ ��� 4_ /Ac.
X
$ CLL' " /Ac.
RECLAMATION
COST
_ $-> I-> i
_ $ . CC{� Cp
X $ — /Ac. = $
Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into
proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures
will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage
b) Positive Drainage
0.02 X SUBTOTAL COST:.
$1,500.00 = $y�
SUBTOTAL COST:
Permit Life (i o)10 years):
INFLATION COST: $ P
TOTAL COST = SUBTOTAL COST + INFLATION COST =
Ac.
Ac. X
$ 50, H. e,GC X
Total Reclamation Bond Cost:
(round down to the nearest $106.00)

i American Emerald 02-06
Subject: North American Emerald 02-06
From: Doug Miller <[e-mail]>
Date: Wed, 24 Mar 2004 14:50:48 -0500
To: Judy Wehner <[e-mail]>
No further comments
Doug Miller - [e-mail]
North Carolina Dept. of Environment & Natural Resources
Div. of Land Resources - Land Quality Section
919 N. Main St.
Mooresville, NC 28115
Ph: [phone] Fax: [phone]
Doug Miller <Doug.Miller(a)ncmail.net>
NC DENR - Mooresville 1
Div. of Land Resources - Land Quality Section
1 of 1 3/24/2004 4:29 PN

r
MINING CHECKLIST FOR ROUTING
Applicant's Name: �� jay �,,r, , , project Name: 1jqVP4,r
'612
%r/20
Applic./Permit No.:: /09&County: h— Date Received:
Reviewer: River Basin Name:
❑ New ❑ Renewal ❑ Modification (inside permit boundaries)
❑ Modification (outside permit boundaries) ❑ Transfer ❑ Release
❑ Partial Release ❑ Additional Information ❑ Fee Needed: $
❑ Fee Received: $
PJeAX=Z*
en'a ion�ackaQrRegional Office (2 complete copies; attach the "LQ5 Regional
Office Mining Application Review Checklist" to one copy and attach berth the DWQ and DAQ
"Mining Application Review Form" to the other copy; send both copi s t the R ' nal Engineer)
Date: Routed C ec'd
❑ Qivioion of Water Resources Date: Routed Rec'd
❑ NC Wildlife Resources Commission Date: Routed Rec'd
/ - Fish & Wildlife Service Date: Routed Rec'd
(Only new applications and modification requests that add land to the permit)
Please route firs Q ,y of theapplication and ny loration rria �� t�
❑ Division of Parks & Recreation Date: Routed Rec'd
❑ NC Geological Survey Section Date: Routed Rec'd
(Only new applications and modification requests that add land to the permit)
❑ Division of Archives & History Date: Routed Rec'd
(Only new applications)
❑ Other: Date: Routed Rec'd
"51-15pe1`16e Date for Comments: (no later than 25 days
from receipt) /
f
❑ Please note the following:
AfPtiv ---*7

WN;t
y, rrrr s
Wetland and Natural Resource
Consultants, Inc. ,.
WNR, Inc. Project# NAEM-1000-AlexanderCounty
North American Emerald Mines
c/o Hidden Crystal Inn
Attn: Mr. James Hill, Jr.
PO Box 57
Hiddenite, North Carolina 28636
Re: Endangered Species Report
Alexander County Property (+/- 15 acres)
Hiddenite, Alexander County, North Carolina
Dear Mr. Hall:
JI! r + MAR g
2004
tff I
t
At your request, on February 26, 2004, Jennifer Robertson of WNR Consultants, Inc.
performed a pedestrian survey of the Alexander County property off SR 1491 to look
for threatened and endangered species (TES) that could potentially occur on the subject
property. Prior to the fieldwork, records in Raleigh were search for potential known
locations of any natural resources that may be mapped within a four mile radius of the
Alexander County property.
METHODS
A search of the US Fish and Wildlife Service (US FWS) website (www.fws.gov) and the
North Carolina Natural Heritage Program (NC NHP)website
(www.ncsparks.net/nhp/county.html) found two currently listed animal species and two
historically listed animal species for that area (Alexander County): Big -eared Bat
(Corynorhinus refinesquii), a federal species of concern and state threatened species
(historic record for county); Bald Eagle (Haliaeetus leucocephalus), a federal threatened
species proposed for de -listing and state threatened species (current record for county);
Bog Turtle (Glyptemys muhlenbergii), a federal and state threatened species (current
record for county); and Seep Mudalia (Leptoxis dilatata), a federal threatened species and
state significantly rare species (historic record for county). The Bog Turtle (Glyptemys
muhlenbergii) is also listed more specifically for the Hiddenite quad. The records in
Raleigh at the North Carolina Natural Heritage Program office were also searched for
the Alexander quad. The Bog Turtle was not documented within four miles of the
mining property. Actually, none of the animal species were documented within four
miles of the mining property on the Hiddenite quadrangle.
Newton Office
PO Box 224
Newton, NC 28658
828�465�3035
828�465"3050 Fax
www.wnrinc,com
Clyde Office
217 Paragon Parkway, #142
Clyde, NC, 28721
828-627�0051
828"627&0052 Fax
www,wndnc.com

The same website search resulted in two currently listed plant species and one
historically listed plant species for Alexander County: Keever's Bristle -Moss
(Orthotrichum keeverae), a federal species of concern and state endangered species
(current record for county); Dwarf -flowered Heartleaf (Hexastylis noniflora), a federal
and state threatened species (current record for county); and Torrey's Mountain -Mint
(Pycnanthemum torrei), a federal species of concern and state significantly rare
throughout species. The records for listed plants were also searched in Raleigh for the
Hiddenite quad. One of these species, Keever's Bristle -Moss, was documented as
occurring within the Hiddenite quad but not within four miles of the mining property.
Supporting information obtained from the US FWS and NC NH websites are attached
in Tables I and 2 for your reference. This information includes Alexander County and
Hiddenite quad search results, suitable habitat descriptions, and an explanation of the
codes. USGS topographical maps and aerial photographs are also attached. Also
included within this report are representative photographs of the existing conditions on
site.
FINDINGS
The mining site field search yielded no specimens of any of the threatened and/or
endangered animals or plants. The site has been previously disturbed in areas with
improvements such as roads in connection with the existing mining operation. The
existing habitats on site are either fields or Virginia pine stands.
There is really no suitable habitat on site for any of the animal or plant threatened or
endangered species (see Tables I and 2). No big -eared bats were observed and are not
expected to use this site because there are no old buildings or caves within the existing
mine area. This area is nearly barren of trees which would provide habitat for the bats.
No bald eagles were observed and are not expected to use this site because of the lack
of nearby large bodies of open water. The bog turtle is the only animal species listed for
the more specific Hiddenite quad. However, there are no streams or wetlands or
ponds on the property which are essential for this animal. This site sits up on the top of
a large hill. No seep mudalias were observed and once again are not expected to use
this site because they are found within New River drainages. The big -eared bat and
seep mudalia are historic listings for Alexander County which indicates that no
specimens have been observed for more than twenty years.
No Keever's bristle -moss was observed and is not expected to occur on the site
because there are no granitic domes or outcrops present. No dwarf -flowered heartleaf
was observed and is also not expected to occur due to the lack of deciduous forests on
slopes. The area adjacent to the site along the unnamed tributary to the South Yadkin
River where appropriate habitat does exist was walked earlier but no specimens were
observed. The last species is a historic record for the county once again indicating that
it has not been observed for more than twenty years.

To summarize the existing conditions on site, the two roadsides are well maintained by
North American Emerald Mines; the fields are being used for stockpile storage areas;
and the forested areas are dominated by Virginia pine which do not allow for much
diversity in the understory of the forest. There are some existing houses on the dirt
road coming in to the site and an existing mining operation adjacent to the site.
In summary, this site does not provide any appropriate habitat for the two currently
listed potential animal species and the two currently listed potential plant species of the
listed threatened and endangered species. It is highly unlikely that any occur on or use
the site due to the fact that none were observed during the field search and that the
appropriate habitat areas are not present.
Please call with any questions that you may have, or to discuss the information within
this report further.
Best regards,
Jennifer Robertson
Ecologist
WNR, Inc.
Copies sent to:
NCDENR
Division of Land Resources — Mining Program
Attn: MS Judy Wehner
1612 Mail Service Center
Raleigh, North Carolina 27699-1612
Mr. Carroll Williams, PE
4840 North Center Street
Hickory, North Carolina 28601

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7' Vd
: HIDDENITE Location: 035' 54' 49.86" N 081' 04' 22.26" W
NameCaption: North American Emerald Mines
Date: : HID
Scale: t inch equals 2000 feet Alexander County North Carolina
WNR, Inc. Job # NAEM-1000

merican Emerald Mine Property °
lip
Name: HIDDENITE Location: 035° 54' 50.70" N 081 ° 04' 21.53" W
Date: 3/4/2004 Caption: North American Emerald Mines
Scale: 1 inch equals 400 feet Alexander County, North Carolina
WNR, Inc. # NAEM-1000