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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Note 3 &amp;#8212; Restricted Cash&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 27.5pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Under the terms of the Second Extension Agreement we entered into with the Karlsson Group on June&amp;#160;26, 2013, we are required to deposit 50% of the net proceeds of the next $20.0 million of capital we raise (for a total of $10.0 million) into escrow, which funds may be used solely to fund specified development expenses pursuant to the Extension Agreement.&amp;#160; As of June&amp;#160;30, 2013, we had approximately $2.4 million remaining in escrow related to our recently completed capital raising activities.&amp;#160; Pursuant to the Second Extension Agreement, this escrowed cash will be used to fund our planned in-fill drilling program and other related activities in the Holbrook Basin over the next several months.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
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