The Green Energy property is located in Grand County 20 miles west of the community of Moab, southeastern Utah and consists of 26 contiguous place claims totalling 4,160 acres. The property is transected by a paved regional highway and several dirt roads from previous and ongoing oil and gas endeavors and has excellent access to rail, power and highway. The historic exploration was conducted by Fidelity Exploration and Production Co, US Borax, King Oil Co. and Amerada Co since the late 1950’s. The Green Energy Property exists over an area with historic fluid analysis ranging from 81 to 174 mg/l lithium in saturated minerals brines. Well No.1 Long Canyon returned 500 mg/l lithium. This well is located within 800m of the Green Energy Property ("Concentrated Subsurface Brines in the Moab Region, Utah", Utah Geological and Mineralogical Survey, June 1965). The brine was discovered in the 1960s when over pressurized oil exploration wells encountered blowouts upon drilling.
The Paradox Basin area is a semi-desert region with an average of over 300 days of sunshine per year, existing infrastructure, and year-round access to road, rail and power.
The Green Energy Property is located approximately 3 kilometers northwest of Intrepid Potash’s Cane Creek Operation. The Cane Creek mine is an existing Texas Gulf underground mine that was converted in the 1950’s to a solar solution mine.
Approximately twelve wells have been drilled on the Green Energy Property with approximately 25 historic wells in the immediate area. Of these 25 historic wells, three on the Green Energy Property have analytical data for lithium and are concurrent with a zone determined by the USGS to contain greater than 40% total dissolved solids in oil field brines. Lithium occurs in the basin in oversaturated mineral brine (40 per cent minerals, 60 per cent water) and was discovered during oil exploration when drill wells intercepted the main brine zone of the Paradox formation. The main zone has been identified as Clastic Bed #31. This unit occurs at a depth below surface of approximately 6,000 feet (~1800m) and consists of 30 feet (~10m) of shale, anhydrite and dolomite; the bed is not part of any oil reservoir. The characteristics of the brine as previously intercepted offer several positive attribute for extraction. This particular horizon has been established to be externally recharged based on deuterium and tritium counts, the isotope work indicates that the source water is coming from a fresh source, likely snow melt. This isotope work is suggestive of a recharge and mineralizing source for the unit. The temperature is elevated (145°F) relative to expected temperatures for that depth (102°F) indicative of residual heat source driving system (potentially cooling pluton, crustal hot spot, etc). Drilling in the area to this depth and deeper have consistently intersected a high pressure brine (4953psi recorded at bottom of the White Cloud #2 hole.), which indicates strong hydrostatic pressure.
The company is currently creating a 3D geologic model of the property by compiling historic oil well log data and matching it with concurrent 2D seismic data to better understand orientation of the target horizon. Once completed the company will be in a position to better target potential well head sites as well as begin modelling the horizon for the potential resource. This desktop study will also act as an exploration tool that may point to additional perspective horizons on the property.
The Company has not undertaken any independent investigation of the drill results, fluid analysis or other information contained in this statement nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information or whether the information was prepared in accordance with the requirements of National Instrument 43-101 ("NI 43-101"). The Company believes that the historical drill results, fluid analysis and other information contained in herein are relevant to continuing exploration on the Green Energy Property. The Company intends to conduct a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Evaluation of reservoir potential will be done in preparation for the re-entry of shut-in wells.