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NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Desert Hawk Gold Corp. (the “Company”), a Nevada Corporation, was incorporated on November 5, 1957. The Company commenced its current mining activities on May 1, 2009. During the year ended December 31, 2009, the Company entered into Joint Venture Agreements with the Clifton Mining Company (“Clifton”), the Woodman Mining Company and the Moeller Family Trust for the lease of certain of their property interests in the Gold Hill Mining District of Utah. In 2011, the Company entered into an agreement with DMRJ Group, (a Platinum Partners related entity), which allowed for long term funding of the Kiewit project and helped to provide cash flow for operations during the period from 2009 until 2014 while the permitting process was ongoing. The final permit needed to begin development of the Kiewit property was received in January 2014 and development began in February 2014. Construction at the site was substantially complete on September 30, 2014. Revenue from the heap leach operation began in October 2014 with the first sales of gold concentrate. Mining has since been ongoing with future plans to expand the pit and eventually the heap leach pad upon approval by the BLM and the State of Utah of a modification to our mining permit. Additionally, we have begun to process ore for another company in a similar manner to our process, but separately from our ore.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles used in the United States of America (“U.S. GAAP”) and have been consistently applied in the preparation of the financial statements. Risks and Uncertainties As a mining company, the revenue, profitability and future rate of growth of the Company are substantially dependent on the prevailing prices for gold and silver. The prices of these metals are volatile and affected by many factors beyond the Company’s control, including prevailing interest rates and returns on other asset classes, expectations regarding inflation, speculation, currency values, governmental decisions regarding precious metals stockpiles, global and regional demand and production, political and economic conditions and other factors. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of resources that the Company can economically produce. Further, the carrying value of the Company’s property and equipment, net; mining properties and interest, net; inventories and ore on leach pads are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ materially from those estimates.The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral resources that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold in leach pad inventories, stock-based compensation and valuation allowances for deferred tax assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from the amounts estimated in these financial statements. Reclassifications Certain reclassifications have been made to conform prior years’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported. Cash and Cash Equivalents The Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less when purchased to be cash equivalents. Reclamation Bonds Reclamation bonds primarily represent bonds and are restricted primarily for reclamation funding which are carried at cost plus earned interest. Reclamation bonds are shown as a non-current asset and are included in the balance sheet. See Note 3. Inventories The recovery of gold from certain oxide ores is achieved through the heap leaching process. Under this method, mineralized material is placed on a leach pad where it is treated with a chemical solution, which dissolves the gold contained in the material. The resulting “pregnant” solution is further processed in a plant where gold is recovered. The Company records ore on leach pad, solution in carbon columns in process and gold concentrate, at average production cost per gold ounce, less provisions required to reduce inventory to net realizable value. Production costs include the cost of mineralized material processed; direct and indirect materials and consumables; direct labor; repairs and maintenance; utilities; amortization of property, equipment, and mineral properties; and mine administrative expenses. Costs are removed from ore on leach pads as ounces are recovered, based on the average cost per recoverable ounce of gold on the leach pad. Estimates of recoverable gold on the leach pad are calculated from the quantities of material placed on the leach pad (measured tons added to the leach pad), the grade of material placed on the leach pad (based on assay data) and an estimated recovery percentage (based on ore type) along with our historical experience. The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, actual gold ounces recovered are regularly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. The ultimate recovery of gold from a leach pad will not be known until the leaching process is concluded. The quantification of material inventory on the leach pad is based on estimates of the quantities of gold at each balance sheet date that the Company expects to recover during the next 12 to 24 months. Inventory is stated at the lower of cost or net realizable value, which for December 31, 2021 is net realizable value. A portion of the December 31, 2021 inventory has been classified as non-current. This classification has been made based on the amount of gold expected to be sold beyond the next twelve months. See Note 4. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Maintenance and repairs are expensed as incurred. Replacements and betterments that extend the useful life of the property and equipment are capitalized. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and any resulting gain or loss is reflected in results of operations. See Note 5. Mineral Properties and Interests The Company capitalizes costs for acquiring mineral properties and ongoing mineral lease payments and expenses costs to maintain mineral rights. Upon reaching the production stage, the capitalized costs are amortized using the units-of-production method on the basis of periodic estimates of ore resources. Estimates for ore resources are a key component in determining units of production rates. Estimates of ore resources, mineralized material, and other resources may change, possibly in the near term, resulting in changes to rates in future reporting periods. The Company does not have proven and probable reserves at this time. Mineral Exploration and Development Costs Until proven and probable reserves are established, all exploration expenditures and pre-development costs are expensed as incurred. Once such reserves are established, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operations, are capitalized and will be amortized on units of production basis over proven and probable reserves. Previously capitalized costs, net of accumulated amortization, are expensed in the period the property is abandoned. Impairment of Long-Lived Assets The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, estimated future metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties. Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are accounted for based on the fair value of the equity award issued. The Company estimates the fair value of stock-based compensation using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation. Income Taxes Income taxes are provided based upon the liability method of accounting. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards, and their financial reporting amounts at each year-end using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard to allow recognition of such an asset. The Company evaluates its tax positions taken or expected to be taken in the course of preparing its tax returns to determine whether the tax positions will more likely than not be sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not standard are not recorded as a tax benefit or expense in the current year. When applicable, the Company will recognize a liability for unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the years presented. See Note 12. Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. At December 31, 2021 and 2020, the common stock equivalents of 2,400,000 associated with the Company’s outstanding stock options were excluded from the calculation of diluted earnings per share because the options were antidilutive due to the net losses for the periods. Revenue Recognition Concentrate Sales: The Company’s product consists of gold bearing carbon which is shipped offsite to be turned into an unrefined gold concentrate, which is then further refined to become gold and silver bullion known as doré. The Company’s performance obligation in these transactions is generally the transfer of the refined dore’ to the buyer. Management has determined that the performance obligation for concentrate sales is met and title is transferred when the Company delivers the doré to the buyer because, at that time, (i) legal title is transferred to the buyer (ii) the buyer has accepted the doré and obtained the ability to realize all of the benefits from the product, (iii) the doré content specifications are known, have been communicated to the buyer, and the buyer has the significant risks and rewards of ownership to it, and (iv) the Company has the right to payment for the doré. Contract Processing Income: The Company processes ore for a third party which is processed separately from the Company’s ore but in the same manner. It is also shipped offsite to be turned into an unrefined gold concentrate which is then further refined to become gold and silver bullion known as doré. For this service, the Company receives a percentage of net proceeds from the sale of the gold and silver doré. Management has determined that the performance obligation for contract processing income is met when title has been transferred to the buyer of the dore’ because, at that time, (1) the Company has a right to receive its percentage of net proceeds from sale of the gold and silver dore’ from the third party for which it processes ore and (ii) the doré content specifications are known, have been communicated to the buyer, and the buyer has the significant risks and rewards of ownership to it. Revenue and related accounts receivable from both types of revenue are recorded net of charges which represent components of the transaction price. Charges are estimated by management upon transfer of risk based on contractual terms, and actual charges typically do not vary materially from management’s estimates. Revenue may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue proceeds are recorded net of the impact of royalties and participation agreements. See Note 17. Reclamation and Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the asset. After the initial measurement of the asset retirement obligation, the liability is adjusted when there are changes in the estimated future cash flows due to change in estimated costs or change in time until reclamation will commence. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. Such assumptions are based on the Company’s current mining plan and the best available information for making such estimates. See Note 14. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. Financial Instruments The Company's financial instruments include cash and cash equivalents as well as various notes payable. All instruments are accounted for on a historical cost basis, which, due to the short maturity and interest rates of these financial instruments, approximates fair value at December 31, 2021 and 2020. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2021 and December 31, 2020, the Company has no assets nor liabilities that require measurement at fair value on a recurring basis. Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $14,247,760 through December 31, 2021 and net loss of $2,955,949 for the year ended December 31, 2021 along with negative working capital of $13,712,733 , which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, it has not yet reached optimum levels. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Although management has procured funding through a forward sales agreement (Note 7) they intend to continue to seek new capital from equity securities issuances to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The Company’s management believes that is has sufficient funds to meet its obligations and continue production over the next twelve months. COVID -19 The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to obtain permits required to continue and expand current operations, retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies. There has also been a reduction in the availability of equipment financing. These disruptions continue to hamper operations. It is management’s belief that disruptions relating to COVID will be mitigated in the future as a large percent of the population becomes vaccinated. New Accounting Pronouncements Accounting Standards Updates Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

Risks and Uncertainties As a mining company, the revenue, profitability and future rate of growth of the Company are substantially dependent on the prevailing prices for gold and silver. The prices of these metals are volatile and affected by many factors beyond the Company’s control, including prevailing interest rates and returns on other asset classes, expectations regarding inflation, speculation, currency values, governmental decisions regarding precious metals stockpiles, global and regional demand and production, political and economic conditions and other factors. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of resources that the Company can economically produce. Further, the carrying value of the Company’s property and equipment, net; mining properties and interest, net; inventories and ore on leach pads are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets.

Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ materially from those estimates.The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral resources that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold in leach pad inventories, stock-based compensation and valuation allowances for deferred tax assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from the amounts estimated in these financial statements.

Reclassifications Certain reclassifications have been made to conform prior years’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity (deficit), and cash flows as previously reported.

Cash and Cash Equivalents The Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less when purchased to be cash equivalents.

Reclamation Bonds Reclamation bonds primarily represent bonds and are restricted primarily for reclamation funding which are carried at cost plus earned interest. Reclamation bonds are shown as a non-current asset and are included in the balance sheet. See Note 3.

Inventories The recovery of gold from certain oxide ores is achieved through the heap leaching process. Under this method, mineralized material is placed on a leach pad where it is treated with a chemical solution, which dissolves the gold contained in the material. The resulting “pregnant” solution is further processed in a plant where gold is recovered. The Company records ore on leach pad, solution in carbon columns in process and gold concentrate, at average production cost per gold ounce, less provisions required to reduce inventory to net realizable value. Production costs include the cost of mineralized material processed; direct and indirect materials and consumables; direct labor; repairs and maintenance; utilities; amortization of property, equipment, and mineral properties; and mine administrative expenses. Costs are removed from ore on leach pads as ounces are recovered, based on the average cost per recoverable ounce of gold on the leach pad. Estimates of recoverable gold on the leach pad are calculated from the quantities of material placed on the leach pad (measured tons added to the leach pad), the grade of material placed on the leach pad (based on assay data) and an estimated recovery percentage (based on ore type) along with our historical experience. The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, actual gold ounces recovered are regularly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. The ultimate recovery of gold from a leach pad will not be known until the leaching process is concluded. The quantification of material inventory on the leach pad is based on estimates of the quantities of gold at each balance sheet date that the Company expects to recover during the next 12 to 24 months. Inventory is stated at the lower of cost or net realizable value, which for December 31, 2021 is net realizable value. A portion of the December 31, 2021 inventory has been classified as non-current. This classification has been made based on the amount of gold expected to be sold beyond the next twelve months. See Note 4.

Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Maintenance and repairs are expensed as incurred. Replacements and betterments that extend the useful life of the property and equipment are capitalized. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and any resulting gain or loss is reflected in results of operations. See Note 5.

P3Y

P7Y

Mineral Properties and Interests The Company capitalizes costs for acquiring mineral properties and ongoing mineral lease payments and expenses costs to maintain mineral rights. Upon reaching the production stage, the capitalized costs are amortized using the units-of-production method on the basis of periodic estimates of ore resources. Estimates for ore resources are a key component in determining units of production rates. Estimates of ore resources, mineralized material, and other resources may change, possibly in the near term, resulting in changes to rates in future reporting periods. The Company does not have proven and probable reserves at this time. Mineral Exploration and Development Costs Until proven and probable reserves are established, all exploration expenditures and pre-development costs are expensed as incurred. Once such reserves are established, expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operations, are capitalized and will be amortized on units of production basis over proven and probable reserves. Previously capitalized costs, net of accumulated amortization, are expensed in the period the property is abandoned.

Impairment of Long-Lived Assets The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, estimated future metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties.

Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are accounted for based on the fair value of the equity award issued. The Company estimates the fair value of stock-based compensation using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation.

Income Taxes Income taxes are provided based upon the liability method of accounting. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards, and their financial reporting amounts at each year-end using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard to allow recognition of such an asset. The Company evaluates its tax positions taken or expected to be taken in the course of preparing its tax returns to determine whether the tax positions will more likely than not be sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not standard are not recorded as a tax benefit or expense in the current year. When applicable, the Company will recognize a liability for unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the years presented. See Note 12.

Earnings Per Share Basic earnings per share includes no dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. At December 31, 2021 and 2020, the common stock equivalents of 2,400,000 associated with the Company’s outstanding stock options were excluded from the calculation of diluted earnings per share because the options were antidilutive due to the net losses for the periods.

2400000

Revenue Recognition Concentrate Sales: The Company’s product consists of gold bearing carbon which is shipped offsite to be turned into an unrefined gold concentrate, which is then further refined to become gold and silver bullion known as doré. The Company’s performance obligation in these transactions is generally the transfer of the refined dore’ to the buyer. Management has determined that the performance obligation for concentrate sales is met and title is transferred when the Company delivers the doré to the buyer because, at that time, (i) legal title is transferred to the buyer (ii) the buyer has accepted the doré and obtained the ability to realize all of the benefits from the product, (iii) the doré content specifications are known, have been communicated to the buyer, and the buyer has the significant risks and rewards of ownership to it, and (iv) the Company has the right to payment for the doré. Contract Processing Income: The Company processes ore for a third party which is processed separately from the Company’s ore but in the same manner. It is also shipped offsite to be turned into an unrefined gold concentrate which is then further refined to become gold and silver bullion known as doré. For this service, the Company receives a percentage of net proceeds from the sale of the gold and silver doré. Management has determined that the performance obligation for contract processing income is met when title has been transferred to the buyer of the dore’ because, at that time, (1) the Company has a right to receive its percentage of net proceeds from sale of the gold and silver dore’ from the third party for which it processes ore and (ii) the doré content specifications are known, have been communicated to the buyer, and the buyer has the significant risks and rewards of ownership to it. Revenue and related accounts receivable from both types of revenue are recorded net of charges which represent components of the transaction price. Charges are estimated by management upon transfer of risk based on contractual terms, and actual charges typically do not vary materially from management’s estimates. Revenue may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue proceeds are recorded net of the impact of royalties and participation agreements. See Note 17.

Reclamation and Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the asset. After the initial measurement of the asset retirement obligation, the liability is adjusted when there are changes in the estimated future cash flows due to change in estimated costs or change in time until reclamation will commence. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. Such assumptions are based on the Company’s current mining plan and the best available information for making such estimates. See Note 14. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. Financial Instruments The Company's financial instruments include cash and cash equivalents as well as various notes payable. All instruments are accounted for on a historical cost basis, which, due to the short maturity and interest rates of these financial instruments, approximates fair value at December 31, 2021 and 2020.

Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2021 and December 31, 2020, the Company has no assets nor liabilities that require measurement at fair value on a recurring basis.

Going Concern As shown in the accompanying financial statements, the Company had an accumulated deficit of $14,247,760 through December 31, 2021 and net loss of $2,955,949 for the year ended December 31, 2021 along with negative working capital of $13,712,733 , which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Although production restarted in 2019, it has not yet reached optimum levels. The timing and amount of capital requirements will depend on a number of factors, including demand for products, metals market pricing, and the availability of opportunities for expansion through affiliations and other business relationships. Although management has procured funding through a forward sales agreement (Note 7) they intend to continue to seek new capital from equity securities issuances to provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan. The Company’s management believes that is has sufficient funds to meet its obligations and continue production over the next twelve months.

-14247760

-2955949

13712733 COVID -19 The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to obtain permits required to continue and expand current operations, retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies. There has also been a reduction in the availability of equipment financing. These disruptions continue to hamper operations. It is management’s belief that disruptions relating to COVID will be mitigated in the future as a large percent of the population becomes vaccinated.

New Accounting Pronouncements Accounting Standards Updates Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

NOTE 3 – RECLAMATION BONDS At December 31, 2021 and 2020, the Company has a surety bond of $674,000 in an escrow account with the bonding company for reclamation of its property. This escrowed amount is held at Bank of New York, Mellon for the Company’s benefit. It may not be released to the Company without the prior consent of the surety bondholder. The escrowed amount does not earn interest. In December 2020, the Company was notified by the Utah Department of Natural Resources that the reclamation cost estimate for the Kiewit properties had been escalated from $1,348,000 to $1,537,000, an increase of $189,000. The amount was remitted to the Utah Division of Oil, Gas and Mining on March 11, 2021. Total reclamation bonds posted at December 31, 2021 and December 31, 2020 are $947,116 and $758,011, respectively, which consists of the above escrowed amount along with certificate of deposits held with the state of Utah for the remaining bonds on the property, including exploration bonds.

674000

1348000 1537000 189000 947116 758011

NOTE 4 – INVENTORIES Inventories at December 31, 2021 and December 31, 2020 consists of the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify">Ore on leach pad</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,488,902</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,583,986</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Carbon column in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">119,461</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">133,640</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">146,251</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">129,391</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.1in"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,754,614</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,847,017</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.1in">Less long-term portion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,081,425</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,505,020</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,673,189</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,341,997</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> Inventories at December 31, 2021 and 2020 were valued at net realizable value because production costs were greater than the amount the Company expected to receive on the sale of the estimated gold ounces contained in inventories. The adjustment to inventory, which is included in general production and project costs on the statements of operations, was $1,496,590 and $204,127 at December 31, 2021 and 2020, respectively.

5488902

6583986

119461 133640

146251

129391

5754614

6847017

1081425

1505020

4673189

5341997

1496590

204127

NOTE 5 – PROPERTY AND EQUIPMENT The following is a summary of property and equipment at December 31, 2021 and 2020: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Equipment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,461,263</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,361,808</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,981</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,981</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Electronic and computer equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,587</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,587</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Vehicles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">348,535</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">315,905</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Buildings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,359</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-27">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Land and improvements</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">76,569</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">44,840</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,043,294</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,780,121</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,802,265</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,129,046</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,241,029</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,651,075</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Kiewit property facilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,497,436</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,497,436</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(810,185</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(758,851</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,687,251</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,738,585</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.25in; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,928,280</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,389,660</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> For the Kiewit property facilities, amortization based on total units of production was $51,334 and $108,657 for the years ended December 31, 2021 and 2020, respectively. Depreciation expense on property and equipment for the years ended December 31, 2021 and 2020 was $866,537 and $889,108 respectively. During the year ended December 31, 2021, the Company was required to return a CAT 740 Haul truck to Wheeler Machinery because the Company was five payments delinquent in its obligation on the related note payable. On the date of the return, the net carrying value of the equipment was $290,889 and the outstanding note payable balance was $86,806. A loss on disposal of equipment of $204,083 was recognized. The truck was purchased by a related party who in February began renting the truck to the Company on a month-to-month basis. See Notes 8 and 13. During the year ended December 31, 2021, the Company acquired a new HP4 crushing system in exchange for its HP3 crushing system which was returned to ICM Solutions, Inc. (“ICM”). Prior to the acquisition, the Company had been renting the HP4 crushing system from ICM and had an accrued rent payable of $158,000. ICM financed the acquisition of the new HP4 crushing system with a new note of $215,510 for the cost of the new equipment, plus accrued rent payable, less the trade-in value of the HP3 crushing system.

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify"> </td><td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap"> </td><td style="white-space: nowrap"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Equipment</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,461,263</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,361,808</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,981</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,981</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Electronic and computer equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,587</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,587</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Vehicles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">348,535</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">315,905</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Buildings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,359</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-27">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Land and improvements</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">76,569</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">44,840</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,043,294</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,780,121</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,802,265</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,129,046</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,241,029</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,651,075</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Kiewit property facilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,497,436</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,497,436</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(810,185</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(758,851</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,687,251</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,738,585</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.25in; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,928,280</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,389,660</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table>

6461263

6361808

6981

50587

348535

315905

99359

76569

44840

7043294

6780121

-3802265 -3129046

3241029

3651075

2497436

-810185 -758851

1687251

1738585

4928280

5389660

51334

108657

866537

889108

290889 86806

204083

158000

215510

NOTE 6 – MINERAL PROPERTIES AND INTERESTS Mineral properties and interests as of December 31, 2021 and December 31, 2020 are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="text-align: center">December 31,</td><td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="text-align: center">December 31,</td><td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Kiewit and all other sites</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,700,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,700,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">JJS property</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">250,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">250,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,950,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,950,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(864,436</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(770,560</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,085,564</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,179,440</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Asset retirement obligation assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify">Kiewit Site</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">725,122</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">718,289</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: justify">Kiewit Exploration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 1.5pt">JJS property</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">31,016</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">31,016</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0.25in">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">784,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">777,682</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.125in">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(190,427</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(171,254</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 27.25pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">594,088</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">606,428</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 27.25pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,679,652</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,785,868</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> Amortization of the mineral properties and interests based on total units of production was $113,049 and $258,132 for the years ended December 31, 2021 and 2020, respectively. The Company is required to pay a 4% net smelter royalty (“NSR”) to PDK Utah Holdings, LP (“PDK”) on revenues of gold and silver from the Kiewit gold property and the JJS properties. See Note 7.

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="text-align: center">December 31,</td><td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="text-align: center">December 31,</td><td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Kiewit and all other sites</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,700,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,700,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">JJS property</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">250,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">250,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,950,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,950,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(864,436</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(770,560</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,085,564</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,179,440</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Asset retirement obligation assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify">Kiewit Site</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">725,122</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">718,289</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-align: justify">Kiewit Exploration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 1.5pt">JJS property</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">31,016</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">31,016</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0.25in">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">784,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">777,682</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.125in">Less accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(190,427</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(171,254</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 27.25pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">594,088</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">606,428</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 27.25pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 0.25in">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,679,652</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,785,868</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 3700000 3700000 250000 250000 3950000 3950000 -864436 -770560 3085564 3179440 725122 718289 28377 28377 31016 31016

784515

777682

190427

171254

594088 606428

3679652

3785868

113049

258132

The Company is required to pay a 4% net smelter royalty (“NSR”) to PDK Utah Holdings, LP (“PDK”) on revenues of gold and silver from the Kiewit gold property and the JJS properties. See Note 7.

NOTE 7 – PREPAID FORWARD GOLD CONTRACT LIABILITY In 2019, the Company entered into and closed a Pre-Paid Forward Gold Purchase Agreement (the “Purchase Agreement”) with PDK for the sale and purchase by PDK of gold produced from the Company’s mining property. Under the terms of the Purchase Agreement, as amended, PDK agreed to purchase a total of 47,045 ounces of gold from the Company. The Company agreed to deliver ounces of gold produced from the Kiewit property to PDK and the Company would then receive proceeds from PDK at the then current spot price less a discount specified in the Purchase Agreement. The Company has the option of paying cash to PDK for the number of ounces scheduled to be delivered each month at a rate of $500 per ounce. The Company received a net amount of $13,600,000 in 2019 for the future delivery of these gold ounces. Under the terms of the Purchase Agreement, as amended, the Company is obligated to deliver gold in the following quantities: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Months</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Gold Ounces per Month</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total Gold Ounces</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">December 2020 </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 31%; text-align: right">655</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 30%; text-align: right">655</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">January 2021 to March 2021</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">896</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,688</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">April 2021 to March 2022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,932</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">April 2022 to March 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,396</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,752</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">April 2023 to December 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,753</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,777</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">January 2024</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right">241</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">241</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">47,045</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> In addition, under the Purchase Agreement, PDK may reduce the required number of ounces to be sold in exchange for up to 8,000 common shares of the Company. To date, PDK has not elected this option. As security for the obligations of the Company under the Purchase Agreement, the Company has granted PDK a security interest in all of the assets of the Company. The Purchase Agreement contains representations and warranties, as well as affirmative and negative covenants customary to a transaction of this nature. To date, no gold has been delivered under the contract. As of December 31, 2021 and December 31, 2020, a cumulative of 11,542 and 655 ounces, respectively, were scheduled to be delivered to PDK under the terms of the Purchase Agreement. The ounces due but unpaid to PDK at December 31, 2021 have been reflected in Due to PDK in lieu of gold deliveries on the balance sheet based on the Company’s option to pay cash in lieu of delivery at $500 per ounce. The forward gold contract balance and the related contract expense for the year ended December 31, 2021 are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Total ounces to be delivered through December 31, 2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">11,542</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Contractual payment per ounce in lieu of delivery</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Due to PDK in lieu of gold deliveries at December 31, 2021</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,771,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Forward gold contract balance associated with 11,542 ounces</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,336,561</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Forward gold contract expense for the year ended December 31, 2021</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,434,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Prepaid forward gold contract liability balance at December 31, 2020</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,600,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Forward gold contract balance associated with 11,542 ounces</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,336,561</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Prepaid forward gold contract liability balance at December 31, 2021</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,263,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> As of December 31, 2021, and through the issuance of these financial statements, PDK has sent invoices to the Company for the deliveries and payments due. The failure to make gold deliveries and make additional payments as described below provides PDK with certain remedies, including termination of the agreement, demand for early payment of the entire delivery obligations, and enforcement of foreclosure rights against the assets pledged as security under the agreement. Due to the delinquent status of the deliveries and PDK’s rights under the default provisions of the Purchase Agreement, the Company has classified the entire liability balance owing as current on the December 31, 2021 balance sheet. The Company has received no notice of default on the Purchase Agreement from PDK. In addition to the delivery of gold ounces, the Purchase Agreement contains a royalty provision whereby royalties of 4% are due to PDK on gold and silver recovered from mining operations at the Kiewit site and sold by the Company to a third party. Under the Purchase Agreement, the Company also pays a 5% withholding tax to the state of Utah on the PDK royalty payments. Royalties are payable within 30 days following the end of each fiscal quarter. The Purchase Agreement contains a participation payment whereby PDK receives a portion of the proceeds from gold sold by the Company to a third party. The payment due to PDK is based upon a percentage of proceeds over a set gold price per ounce. The upside participation amounts are payable within four days following each sale. To date, none has been remitted to PDK. The Purchase Agreement provides for the Company to pay 2.2% interest on outstanding amounts due to PDK. The following is a summary of royalties, upside participation and interest payable: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Royalties payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">403,388</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">210,802</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Royalties withholding payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,396</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,095</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Upside participation payable</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,550,849</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">576,360</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in">Subtotal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,977,633</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">798,257</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Interest payable (incl. in accounts payable and accrued liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">120,989</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,600</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt; padding-left: 0.125in">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,098,622</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">803,857</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> Under the terms of the Purchase Agreement, as amended, PDK agreed to purchase a total of 47,045 ounces of gold from the Company. 500 13600000 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Months</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Gold Ounces per Month</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Total Gold Ounces</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">December 2020 </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 31%; text-align: right">655</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 30%; text-align: right">655</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">January 2021 to March 2021</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">896</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,688</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">April 2021 to March 2022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,932</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">April 2022 to March 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,396</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,752</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">April 2023 to December 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,753</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,777</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">January 2024</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right">241</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">241</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">47,045</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 655 655 896 2688 911 10932 1396 16752 1753 15777 241 241 47045

8000

a cumulative of 11,542 and 655 ounces, respectively, were scheduled to be delivered to PDK under the terms of the Purchase Agreement. The ounces due but unpaid to PDK at December 31, 2021 have been reflected in Due to PDK in lieu of gold deliveries on the balance sheet based on the Company’s option to pay cash in lieu of delivery at $500 per ounce. The forward gold contract balance and the related contract expense for the year ended December 31, 2021 a cumulative of 11,542 and 655 ounces, respectively, were scheduled to be delivered to PDK under the terms of the Purchase Agreement. The ounces due but unpaid to PDK at December 31, 2021 have been reflected in Due to PDK in lieu of gold deliveries on the balance sheet based on the Company’s option to pay cash in lieu of delivery at $500 per ounce. The forward gold contract balance and the related contract expense for the year ended December 31, 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Total ounces to be delivered through December 31, 2021</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">11,542</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Contractual payment per ounce in lieu of delivery</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">500</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Due to PDK in lieu of gold deliveries at December 31, 2021</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,771,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Forward gold contract balance associated with 11,542 ounces</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,336,561</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Forward gold contract expense for the year ended December 31, 2021</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,434,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Prepaid forward gold contract liability balance at December 31, 2020</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,600,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt">Forward gold contract balance associated with 11,542 ounces</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,336,561</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Prepaid forward gold contract liability balance at December 31, 2021</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,263,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 11542 500 5771000 11542 -3336561 2434439 13600000 11542 -3336561 10263439 the Purchase Agreement contains a royalty provision whereby royalties of 4% are due to PDK on gold and silver recovered from mining operations at the Kiewit site and sold by the Company to a third party. Under the Purchase Agreement, the Company also pays a 5% withholding tax to the state of Utah on the PDK royalty payments. Royalties are payable within 30 days following the end of each fiscal quarter. P4D

0.022

403388

210802

23396

11095

1550849 576360 1977633 798257

120989

5600

2098622

803857

NOTE 8 – NOTES PAYABLE The following is a summary of the notes payable: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: left">Note payable to Miller, collateralized by land and two buildings, due in 11 monthly installments of $7,000, beginning December 1, 2021, and a balloon payment of $3,000 due on October 1, 2022, non-interest bearing.</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">66,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-28">-</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a 374 DL Excavator, due in monthly installments of $19,575, beginning June 2020, including interest at 8.5%, until paid in full (December 2021).</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-29">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">304,845</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to ICM Solutions, LLC, collateralized by three conveyor systems, due in monthly installments of $4,365, beginning April 2020, including interest at 9% until paid in full (December 2021).</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-30">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">69,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a used CAT 740 Haul truck (SN2293), originally due in monthly installments of $14,475, beginning May 2019, including interest at 9%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-31">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">86,807</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">226,115</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">386,268</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a used D8T dozer, due in monthly installments of $19,125, beginning August 2019, including interest at 9%, until paid in full</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">102,368</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">349,761</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Komatsu Equipment, collateralized by a used PC490 Excavator 1 payment of $28,823 and 12 monthly payments of $1,903 including interest at 4.6%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-32">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,275</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><div style="-sec-ix-hidden: hidden-fact-34">Note payable to Wheeler Machinery, collateralized by a used CAT 740 Haul Truck, due in 14 monthly installments of $14,475, beginning in July 2021, including interest at 7.48%, with a balloon payment due in August 2022 of $18,185.</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-33">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt"><div style="-sec-ix-hidden: hidden-fact-36">Note payable to Goodfellow, collateralized by a JM Conveyor, due in 19 monthly installments of $4,675, beginning in February 2021 including interest at 15%.</div></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,900</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-35">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">543,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,208,186</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(427,413</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(981,759</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt">Long term portion</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">116,098</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">226,427</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Principal payments due are as follows for the years ended: December 31, 2022</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">427,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; padding-bottom: 1.5pt">December 31, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">543,511</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> In February 2021, Wheeler CAT requested the return of the CAT 740 Haul truck (SN2293) because the Company was five payments delinquent in its obligation on the related note payable. This truck was then purchased from Wheeler CAT by a related party who in February began leasing the truck to the Company on a month-to-month rental. See Note 13. This arrangement relieved the Company of any other financial obligation on this note. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; text-align: center"> </td> <td colspan="2" style="white-space: nowrap; text-align: center">December 31,</td><td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: left">Note payable to Miller, collateralized by land and two buildings, due in 11 monthly installments of $7,000, beginning December 1, 2021, and a balloon payment of $3,000 due on October 1, 2022, non-interest bearing.</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">66,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-28">-</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a 374 DL Excavator, due in monthly installments of $19,575, beginning June 2020, including interest at 8.5%, until paid in full (December 2021).</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-29">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">304,845</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to ICM Solutions, LLC, collateralized by three conveyor systems, due in monthly installments of $4,365, beginning April 2020, including interest at 9% until paid in full (December 2021).</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-30">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">69,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a used CAT 740 Haul truck (SN2293), originally due in monthly installments of $14,475, beginning May 2019, including interest at 9%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-31">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">86,807</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Epiroc, collateralized by a used Epiroc drill due in 36 monthly payments of $14,679 including interest at 5.2%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">226,115</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">386,268</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Wheeler Machinery, collateralized by a used D8T dozer, due in monthly installments of $19,125, beginning August 2019, including interest at 9%, until paid in full</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">102,368</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">349,761</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Note payable to Komatsu Equipment, collateralized by a used PC490 Excavator 1 payment of $28,823 and 12 monthly payments of $1,903 including interest at 4.6%.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-32">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,275</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><div style="-sec-ix-hidden: hidden-fact-34">Note payable to Wheeler Machinery, collateralized by a used CAT 740 Haul Truck, due in 14 monthly installments of $14,475, beginning in July 2021, including interest at 7.48%, with a balloon payment due in August 2022 of $18,185.</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-33">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt"><div style="-sec-ix-hidden: hidden-fact-36">Note payable to Goodfellow, collateralized by a JM Conveyor, due in 19 monthly installments of $4,675, beginning in February 2021 including interest at 15%.</div></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,900</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-35">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">543,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,208,186</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(427,413</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(981,759</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt">Long term portion</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">116,098</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">226,427</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Principal payments due are as follows for the years ended: December 31, 2022</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">427,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0.125in; padding-bottom: 1.5pt">December 31, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116,098</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">543,511</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 11 7000

3000

2022-10-01

66000

19575

0.085

304845

4365

0.09

69230

14475

0.09

86807

36 14679

0.052

226115

386268

19125

0.09

102368

349761

28823 12

1903

0.046

11275

14 14475

0.0748

18185

130128

19 4675

0.15

18900

543511

1208186

427413

981759

116098

226427

427413

116098

543511

NOTE 9 – NOTE PAYABLE – CARES Act Loan In April 2020, the Company received a loan of $463,497 pursuant to the SBA’s Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 16, 2020 issued by the Company, was to mature on April 9, 2025 and bore interest at a rate of 1% per annum, payable monthly to commence on August 15, 2021. The Note could be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, certain amounts of the loan could be forgiven if funds are used for qualifying expenses as described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. As of December 31, 2020, the Company had used funds from the loan to pay qualifying expenses. The Company received forgiveness of the Note on November 24, 2020 and gain on extinguishment of $463,497 was recognized as income during the year ended December 31, 2020.

463497

2025-04-09

0.01

463497

NOTE 10 – ASSET RETIREMENT OBLIGATION Changes in the asset retirement obligation for the years ended December 31, 2021 and 2020 are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap"> </td><td style="padding-left: 0pt; white-space: nowrap"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-left: 0pt">Asset retirement obligation, beginning of period</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">1,233,514</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">826,637</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0pt">Obligation incurred:</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 0.125in">Kiewit properties</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">6,833</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">283,347</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0.125in">JJS property</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-37">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">31,016</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt">Accretion expense</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">121,947</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">92,514</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 0pt">Asset retirement obligation, end of period</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">1,362,294</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">1,233,514</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table> In early 2020, the Company updated the asset retirement obligation to reflect a plan for reclamation and closure of the Kiewit and JJS properties at the end of their lives which resulted in an increase of estimated undiscounted costs of $198,365. The asset retirement asset and obligation increased by $125,363 as a result of a change in the estimated timing of costs and the impact of discounting the costs to present value. In late 2020, the Company received notification regarding an increase in its reclamation bond which resulted in a re-assessment of its original reclamation cost estimate. As a result of this reassessment, the asset retirement asset and asset retirement obligation balances were increased by $189,000. This estimate was adjusted by $6,833 in early 2021. The estimated reclamation costs in 2021 and 2020 were discounted using credit adjusted, risk-free interest rate of 10% from the time the Company incurred the obligation to the time it expects to pay the retirement obligation.

1233514 826637 6833 283347 31016 121947 92514 1362294 1233514

198365

125363

189000 6833

0.10

NOTE 11 – SETTLEMENT OF CONSULTING CONTRACT On March 29, 2018, the Company entered into a five-year Agency Agreement (the “Agency Agreement”) with H&H Metals Corp., a New York corporation (“H&H”). Under the terms of the Agency Agreement, H&H agreed to provide certain advisory services in regard to natural resources activities and to assist in securing purchasers for minerals produced from its mining properties. The Company negotiated a settlement in 2019 with H&H resulting in the Company owing a balance of $200,000 due in July 2020 to H&H. This payment has not yet been paid and is classified as a current liability at both December 31, 2021 and 2020.

200000

NOTE 12 – INCOME TAXES No benefit (provision) has been recognized for the years ended December 31, 2021 and 2020. The income tax provision (benefit) for the years ended December 31, 2021 and 2020 differ from the statutory rate of 21% as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">December 31, 2021</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">December 31, 2020</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left; padding-left: 0pt">Amount computed using the statutory rate</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">(621,000</td><td style="padding-left: 0pt; width: 1%; text-align: left">)</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">(21</td><td style="padding-left: 0pt; width: 1%; text-align: left">)%</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">(387,000</td><td style="padding-left: 0pt; width: 1%; text-align: left">)</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">(21</td><td style="padding-left: 0pt; width: 1%; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 0pt">Changes in prior year estimates</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(734,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(25</td><td style="padding-left: 0pt; text-align: left">)%</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(417,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(23</td><td style="padding-left: 0pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0pt">Non-taxable item – SBA loan forgiven</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-38">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-39">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(97,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(5</td><td style="padding-left: 0pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt">Other</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-40">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-41">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">15,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">1</td><td style="padding-left: 0pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Change in valuation allowance</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">1,355,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">46</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">886,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">48</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total income tax provision (benefit)</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-43">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left">%</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-44">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-45">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left">%</td></tr> </table> The components of the Company’s net deferred tax assets are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: justify">Deferred tax asset:</td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-left: 0.125in">Net operating loss carryforward</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">4,131,000</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">2,818,000</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0.125in">Exploration costs</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">12,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">30,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 0.125in">Stock based compensation</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">96,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">96,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.125in">Asset retirement obligation</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">161,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">73,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify">Total deferred tax assets</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">4,400,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">3,054,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(4,269,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(2,915,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">131,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">103,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt">Deferred tax liabilities: Property and equipment</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(131,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(103,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 4pt">Net deferred tax assets</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-47">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table> At December 31, 2021, the Company had net operating loss carry forwards of approximately $19.7 million for federal income tax purposes, approximately $7.7 million of which expire between 2036 and 2037. The remaining balance of approximately $12.0 million will never expire but its utilization is limited to 80% of taxable income in any future year. Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax assets, a valuation allowance equal to 100% of the deferred tax assets has been recorded at December 31, 2021 and 2020. During the years ended December 31, 2021 and 2020, there were no material uncertain tax positions taken by the Company. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at December 31, 2021 and 2020. The Company’s federal income tax returns for fiscal years 2018 through 2020 remain open and subject to examination.

0.21

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">December 31, 2021</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">December 31, 2020</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left; padding-left: 0pt">Amount computed using the statutory rate</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">(621,000</td><td style="padding-left: 0pt; width: 1%; text-align: left">)</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">(21</td><td style="padding-left: 0pt; width: 1%; text-align: left">)%</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">(387,000</td><td style="padding-left: 0pt; width: 1%; text-align: left">)</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">(21</td><td style="padding-left: 0pt; width: 1%; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 0pt">Changes in prior year estimates</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(734,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(25</td><td style="padding-left: 0pt; text-align: left">)%</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(417,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(23</td><td style="padding-left: 0pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0pt">Non-taxable item – SBA loan forgiven</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-38">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-39">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(97,000</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(5</td><td style="padding-left: 0pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt">Other</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-40">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-41">-</div></td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">15,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">1</td><td style="padding-left: 0pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Change in valuation allowance</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">1,355,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">46</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">886,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">48</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total income tax provision (benefit)</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-43">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left">%</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-44">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-45">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left">%</td></tr> </table>

-621000

0.21

-387000

0.21

-734000

0.25

-417000

0.23

-97000

-0.05

15000

0.01

1355000

0.46

886000

0.48

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: justify">Deferred tax asset:</td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-left: 0.125in">Net operating loss carryforward</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">4,131,000</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 9%; text-align: right">2,818,000</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-left: 0.125in">Exploration costs</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">12,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">30,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 0.125in">Stock based compensation</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">96,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">96,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0.125in">Asset retirement obligation</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">161,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">73,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify">Total deferred tax assets</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">4,400,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">3,054,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(4,269,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(2,915,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">131,000</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">103,000</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt">Deferred tax liabilities: Property and equipment</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(131,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(103,000</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 4pt">Net deferred tax assets</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right"><div style="-sec-ix-hidden: hidden-fact-47">-</div></td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table>

4131000

2818000

12000 30000

96000

161000

73000

4400000

3054000

4269000

2915000

131000

103000

131000

103000

19700000

7700000

which expire between 2036 and 2037. The remaining balance of approximately $12.0 million will never expire but its utilization is limited to 80% of taxable income in any future year.

P12M

NOTE 13 – RELATED PARTY TRANSACTIONS The Company has a month-to-month lease agreement for its office space with RMH Overhead, LLC, a company owned by Rick Havenstrite, the Company’s President and a director. The Company recognized rent expense of $18,000 and $17,000 for years ended December 31, 2021 and 2020. At December 31, 2021 and 2020, amounts due to RMH Overhead, LLC for rent of $ Nil and $ Nil, respectively. On February 1, 2021, RMH Overhead, LLC. (“RMH”) an entity owned by Rick Havenstrite, President of the Company, purchased a CAT 740B Articulated Haul Truck from Wheeler CAT. This truck had previously been owned by the Company with an associated note payable to Wheeler CAT. See Note 5. Beginning February 1, 2021, the Company began renting this truck from RMH at a rate of $10,000 per month on a month-to-month rental. At December 31, 2021 $10,000 is due to RMH for rent of this equipment, and this amount is included in accounts payable and accrued expenses on the balance sheet. The Company compensates directors for their contributions to the management of the Company, with one director receiving fees of $6,000 per month and another director receiving $5,000 per quarter. At December 31, 2021 and December 31, 2020, accrued compensation due to directors was $55,000 and $34,000, respectively.

18000

17000

the Company with an associated note payable to Wheeler CAT. See Note 5. Beginning February 1, 2021, the Company began renting this truck from RMH at a rate of $10,000 per month on a month-to-month rental. At December 31, 2021 $10,000 is due to RMH for rent of this equipment, and this amount is included in accounts payable and accrued expenses on the balance sheet.

6000

5000

55000

34000

NOTE 14– COMMITMENTS AND CONTINGENCIES In addition to commitments disclosed in Notes 3 and 7, the Company had the following commitments and contingencies. Personal property tax and other accrued liabilities Personal property tax for Tooele County, Utah, is billed and becomes due on November 30 of each year. At December 31, 2021 and 2020, the amount due to Tooele County is $ Nil and $35,568, respectively. Employment Agreements The Company has an employment agreement with Mr. Havenstrite as President of the Company, which is ongoing. The agreement, as amended, requires Mr. Havenstrite to meet certain time requirements and limits the number of other board member obligations in which he can participate. The agreement allows for a base annual salary of $144,000 plus an auto allowance and certain performance compensation upon fulfillment of established goals. The agreement allows the board of directors to terminate Mr. Havenstrite’s employment at any time, providing for a severance payment upon termination without cause. The amounts accrued at December 31, 2021 and 2020, is due to the officers of the Company as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: justify; padding-left: 0pt">Rick Havenstrite, President</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">37,697</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">26,620</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 0pt">Marianne Havenstrite, Treasurer and Principal Financial Officer</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">18,462</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">11,077</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 0pt">Total</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">56,159</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">37,697</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table> Mining Leases Annual claims fees are currently $165 per claim plus administrative and school trust land fees. Total paid for claims fees paid during the years ended December 31, 2021 and 2020, are $15,199 and $14,945, respectively. Claims fees are due in August for the year beginning in September of that year.

35568

144000

37697

26620

18462

11077

56159

37697

165

15199

NOTE 15 – CAPITAL STOCK Common Stock The Company is authorized to issue 100,000,000 shares of common stock. All shares have equal voting rights and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company. During the year ended December 31, 2021 the Company had no transactions relating to common stock. During the year ended December 31, 2020, the Company sold 200,000 shares of common stock for cash at a price of $1 per share. Preferred Stock The Company's Articles of Incorporation authorized 10,000,000 shares of $0.001 par value Preferred Stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine.

100000000

All shares have equal voting rights and have one vote per share

0.50

200000

10000000

0.001

NOTE 16 – STOCK OPTIONS The Company has reserved 2,400,000 shares under its 2018 Stock Incentive Plan (the “Plan”). The Plan was adopted by the board of directors on March 28, 2018, retroactive to February 23, 2018, as a vehicle for the recruitment and retention of qualified employees, officers, directors, consultants, and other service providers. The Plan is administered by the Board of Directors. The Company may issue, to eligible persons, restricted common stock, incentive and non-statutory options, stock appreciation rights and restricted stock units. The terms and conditions of awards under the Plan will be determined by the Board of Directors. Outstanding and vested options at December 31, 2021 and 2020 were 2,400,000. These options have an exercise price of $0.40, a remaining life of 1.15 years, and no intrinsic value. No options were granted, expired, or were exercised during the year ended December 31, 2021 nor 2020.

2400000

0.4

P1Y1M24D

NOTE 17 – REVENUE Product sales for years ended December 31, 2021 and 2020 are shown below: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt">Concentrate sales</td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; padding-left: 0.125in">Gold</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">6,472,006</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">6,811,841</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; padding-left: 0.125in">Silver</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">92,876</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">68,810</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 1.5pt">Total concentrate sales</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">6,564,882</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">6,880,651</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.125in">Less: Royalties</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(276,416</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(265,212</td><td style="padding-left: 0pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 0.125in">Upside participation payments</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(974,489</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(987,277</td><td style="padding-left: 0pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Outside processing charges</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(306,884</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(286,165</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(1,557,789</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(1,538,654</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left">Net concentrate sales</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">5,007,093</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">5,341,997</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 1.5pt">Contract processing income</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">2,734,822</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">132,110</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total revenue</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">7,741,915</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">5,474,107</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table> For the years ended December 31, 2021 and 2020, all revenue from Concentrate sales was from concentrate sold to Asahi Refining. For the years ended December 31, 2021 and 2020, all revenue from Contract processing income was received from the outside company whose concentrate sales are to Asahi Refining. The balance due from Asahi Refining is $265,644 which is included in accounts receivable at December 31, 2021. At December 31, 2021 and December 30, 2020, the Company had a receivable balance from Contract processing income of $ Nil and $ Nil. Contract processing income is proceeds received for ore processed for another company.

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td> <td colspan="2" style="padding-left: 0pt; white-space: nowrap; text-align: center">December 31,</td><td style="padding-left: 0pt; white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; text-align: center"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2021</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: center">2020</td><td style="padding-left: 0pt; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt">Concentrate sales</td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td><td style="padding-left: 0pt"> </td> <td colspan="2" style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; padding-left: 0.125in">Gold</td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">6,472,006</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td><td style="padding-left: 0pt; width: 1%"> </td> <td style="padding-left: 0pt; width: 1%; text-align: left">$</td><td style="padding-left: 0pt; width: 9%; text-align: right">6,811,841</td><td style="padding-left: 0pt; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; padding-left: 0.125in">Silver</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">92,876</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">68,810</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 1.5pt">Total concentrate sales</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">6,564,882</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">6,880,651</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.125in">Less: Royalties</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(276,416</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(265,212</td><td style="padding-left: 0pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-left: 0.125in">Upside participation payments</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(974,489</td><td style="padding-left: 0pt; text-align: left">)</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">(987,277</td><td style="padding-left: 0pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Outside processing charges</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(306,884</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(286,165</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(1,557,789</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">(1,538,654</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left">Net concentrate sales</td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">5,007,093</td><td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt"> </td> <td style="padding-left: 0pt; text-align: left"> </td><td style="padding-left: 0pt; text-align: right">5,341,997</td><td style="padding-left: 0pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 0pt; text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 1.5pt">Contract processing income</td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">2,734,822</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; padding-left: 0pt; text-align: right">132,110</td><td style="padding-left: 0pt; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total revenue</td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">7,741,915</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td><td style="padding-left: 0pt; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: left">$</td><td style="border-bottom: Black 4pt double; padding-left: 0pt; text-align: right">5,474,107</td><td style="padding-left: 0pt; padding-bottom: 4pt; text-align: left"> </td></tr> </table> 6472006 6811841 92876 68810 6564882 6880651 276416 265212

974489

987277

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7741915

5474107

265644

NOTE 18 – SUBSEQUENT EVENTS The Company anticipates modification to its operating permit in Spring 2022 which will require an increase in our bond deposit of approximately $640,000 at that time.

640000

2022-08-31

2021-02-28

false FY 0001168081 NONE