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another three of these provisional patent applications into a single PCT application that also designates the United
States as the jurisdiction for patent protection. If allowed, a U.S. patent granted from the utility patent application
would have a term of 20 years measured from the filing date of the utility patent application. See “Item 1A. Risk
Factors” of this Annual Report. Several of these technologies have potential value for application in other industries,
and the Company is evaluating this potential.
ENVIRONMENTAL REGULATION
Our exploration and planned development and mining activities are subject to extensive and costly
environmental laws and regulations under various federal, state, county and local laws relating to the protection of
the environment, which generally includes air and water quality, hazardous waste management, radionuclide
handling and reclamation. Failure to comply with these requirements can result in civil and/or criminal liability for
non-compliance, fines and penalties, clean-up costs and other environmental damages. Also, unanticipated
developments or changes in the law could require us to make environmental expenditures significantly greater than
those we currently expect. Environmental legislation is evolving in a manner that will require stricter standards and
enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of
proposed projects and a heightened degree of responsibility for companies and their officers, directors and
employees. Current and future laws, regulations and permits will impose significant costs, liabilities or obligations
or could limit or prevent our ability to continue operations or undertake new operations. Environmental hazards
may exist on the properties in which we hold interests that are unknown to us at present and that have been caused
by previous owners of the properties.
Our Bear Lodge Property in Wyoming is subject to federal and state environmental laws, regulations, and
permits. The federal agency with primary regulatory jurisdiction is the U.S. Forest Service, Bearlodge Ranger
District, Sundance, Wyoming. The state agency with regulatory jurisdiction is the Wyoming Department of
Environmental Quality. We operate under approvals and permits granted by these two agencies and have
established a surety bond to ensure environmental reclamation of areas disturbed. As of December 31, 2015, the
Company had a surety bond with the state of Wyoming totaling $439,600. Prior to operating, we will require
several other permits and licenses including those issued by the NRC, U.S. Army Corps of Engineers and others.
In 2009, the U.S. Environmental Protection Agency (“EPA”) announced that it would develop financial
assurance requirements under Section 108(b) of the Comprehensive Environmental Response, Compensation, and
Liability Act, as amended, also known as CERCLA or the Superfund law, for the hardrock mining industry. The
EPA had previously announced that it expected to publish its proposed financial responsibility regulations in 2016.
On January 29, 2016, the U.S. District Court for the District of Columbia issued an order requiring that if the EPA
intends to prepare such regulations, it must do so by December 1, 2016. The EPA’s notice did not indicate what the
anticipated scope of these requirements will be, or whether they will be duplicative of existing bonding and other
financial assurance requirements applicable to the hardrock mining industry. However, the promulgation of
regulations that require significant additional financial assurance could have a material adverse effect on our
business operations.
MINERALS EXPLORATION REGULATION
Mining operations and exploration and development activities are subject to various national, state, county
and local laws and regulations in the United States that govern prospecting, development, mining, production,
exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety,
hazardous substances and other matters. The Company believes that it is in compliance in all material respects with
applicable mining, health, safety and environmental statutes and the regulations. There are no current orders or
notices of violations relating to the Company under applicable laws and regulations.
Compliance with these laws and regulations may impose substantial costs on the Company and could
subject it to significant potential liabilities. Changes in these laws or regulations could require us to expend
significant resources to comply with new laws or regulations, or changes to current requirements, and could have a
material adverse effect on our business operations.