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TECHNICALREPORT

ALLIEDNEVADAGOLDCORP.

HYCROFTMINE,WINNEMUCCA,NEVADA,USA

MAY15,2009

Preparedby

SCOTTE.WILSONCONSULTING,INC.

ScottE.Wilson,C.P.G.

______________

ScottE.Wilson,C.P.G

ScottEWilsonConsultingInc6InvernessCourtEast,Suite110

Englewood,CO80112

Phone:(720)3481646

Fax:(303)7901872

www.wilsonmining.com

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AlliedNevadaGoldCorp.

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ScottE.WilsonConsulting,Inc. ANV_43101_51509.docx

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TableofContents

1 SUMMARY........................................................................................................................ 1

1.1 INTRODUCTION................................................................................................................ 1

1.2 GEOLOGYANDMINERALIZATION.................................................................................... 4

1.3 DRILLINGANDSAMPLING................................................................................................ 4

1.3.1 RESOURCES............................................................................................................... 5

1.3.2 NI43101COMPLIANTMEASUREDANDINDICATEDMINERALRESOURCES...........6

1.3.3 NI43101COMPLIANTINFERREDMINERALRESOURCES.........................................7

1.4 OPERATINGMINEPLAN................................................................................................... 7

1.5 NI43101COMPLIANTPROVENANDPROBABLEMINERALRESERVES...........................8

1.6 ONGOINGRESOURCEDEVELOPMENT............................................................................. 9

1.7 CONCLUSIONS.................................................................................................................. 9

1.7.1 AdequacyofProcedures........................................................................................... 9

1.7.2 AdequacyofData...................................................................................................... 9

1.7.3 AdequacyofFinancialInformation........................................................................... 9

1.7.4 CompliancewithCanadianNationalInstrumentNI43101.....................................9

1.7.5 CautionaryNotetoU.S.ReadersConcerningEstimatesofMeasured,Indicated

andInferredResources......................................................................................................... 10

1.8 RECOMMENDATIONS..................................................................................................... 11

2 INTRODUCTIONANDTERMSOFREFERENCE................................................................. 12

2.1 PURPOSEOFTECHNICALREPORT.................................................................................. 12

2.2 SOURCESOFINFORMATION.......................................................................................... 12

2.3 EXTENTOFINVOLVEMENTOFQUALIFIEDPERSON.......................................................12

2.4 TERMSOFREFERENCE.................................................................................................... 13

2.5 UNITSOFMEASURE....................................................................................................... 13

2.5.1 CommonUnits........................................................................................................ 13

2.5.2 CommonChemicalSymbols................................................................................... 14

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2.5.3 CommonAcronyms................................................................................................. 14

3 RELIANCEONOTHEREXPERTS....................................................................................... 16

4 PROPERTYDESCRIPTIONANDLOCATION...................................................................... 17

4.1 LOCATION....................................................................................................................... 17

4.2 MINERALTENURE........................................................................................................... 18

4.3 AGREEMENTSANDROYALTIES....................................................................................... 21

4.4 ENVIRONMENTALLIABILITIES........................................................................................ 23

4.5 PERMITS......................................................................................................................... 24

5 ACCESS,CLIMATE,LOCALRESOURCES,INFRASTRUCTUREANDPHYSIOGRAPHY.........27

5.1 ACCESS............................................................................................................................ 27

5.2 CLIMATE......................................................................................................................... 27

5.3 LOCALRESOURCESANDINFRASTRUCTURE................................................................... 27

5.4 PHYSIOGRAPHY.............................................................................................................. 28

6 HISTORY.......................................................................................................................... 29

6.1 PROPERTYHISTORY........................................................................................................ 29

6.2 EXPLORATIONDEVELOPMENTANDHISTORY................................................................ 30

6.2.1 BayArea.................................................................................................................. 32

6.2.2 CentralFault,SouthCentral,Gap,Cut4andCut5Deposits.................................32

6.2.3 TheBoneyardDeposit............................................................................................. 32

6.2.4 TheFireandBrimstoneDeposit............................................................................. 32

6.2.5 TheAlbertDeposit.................................................................................................. 33

6.3 CANYONRESOURCES2005DRILLINGPROGRAM..........................................................33

6.4 PRODUCTIONHISTORY................................................................................................... 33

6.5 HISTORICALRESOURCEANDRESERVEESTIMATES........................................................36

7 GEOLOGICALSETTING.................................................................................................... 38

7.1 REGIONALGEOLOGY...................................................................................................... 38

7.2 HYCROFTPROPERTYGEOLOGYFIRE&BRIMSTONEDEPOSIT....................................42

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7.2.1 HangingWalloftheEastFaultBrimstonePit......................................................42

7.2.2 RocksInTheFootwallOfTheEastFaultFire&BrimstoneDeposit....................43

8 DEPOSITTYPE................................................................................................................. 45

8.1 GEOLOGICALMODEL...................................................................................................... 45

8.2 HYCROFTGEOLOGICALMODEL...................................................................................... 45

9 MINERALIZATION........................................................................................................... 46

9.1 ALTERATIONANDMINERALIZATIONINTHEEASTFAULTHANGINGWALL................46

9.1.1 BARRENDISSEMINATEDSILICAPYRITE.................................................................. 46

9.1.2 FRACTURECONTROLLEDCHALCEDONYPYRITEMARCASITEMINERALIZATION...47

9.1.3 HYPOGENEACIDLEACHOXIDEALTERATION.......................................................... 50

9.1.4 BLANKETACIDLEACHALTERATION........................................................................ 51

9.1.5 BASALACIDLEACHALTERATION............................................................................ 52

9.1.6 OXIDEALTERATION................................................................................................. 52

9.1.7 SUPERGENEOXIDATIONANDFAULTGOUGEALTERATION...................................54

9.2 ZONINGOFACIDLEACHANDOXIDE.............................................................................. 55

10 EXPLORATION................................................................................................................. 57

10.1 HISTORICEXPLORATIONANDDEVELOPMENT..............................................................57

10.2 RELOGGINGANDGEOLOGICLOGGINGCODES............................................................59

10.3 SURVEYING..................................................................................................................... 62

10.3.1 DrillCollarSurveys.................................................................................................. 62

10.3.2 DownHoleSurveys................................................................................................. 62

11 DRILLING......................................................................................................................... 63

11.1 HISTORYOFDRILLINGANDSAMPLINGINTHEFIRE&BRIMSTONE/ALBERTAREA......63

11.2 1999TWINDRILLINGPROGRAM................................................................................... 63

11.3 CANYONRESOURCES2005DRILLING............................................................................ 67

11.4 DRILLSAMPLERECOVERY............................................................................................... 68

11.4.1 Pre1999Drilling...................................................................................................... 68

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11.4.2 1999Drilling............................................................................................................ 68

11.4.3 AlliedNevadaDrilling.............................................................................................. 71

11.4.4 SilverMineralizationinDrillholes........................................................................... 71

12 SAMPLINGMETHODANDAPPROACH........................................................................... 84

12.1 SAMPLINGMETHODS..................................................................................................... 84

12.1.1 ReverseCirculationRotary...................................................................................... 84

12.1.2 CoreDrilling............................................................................................................ 84

12.2 SAMPLEQUALITY............................................................................................................ 85

12.2.1 ReverseCirculationRecovery................................................................................. 85

12.2.2 CoreRecovery......................................................................................................... 85

12.3 SAMPLELOCATION......................................................................................................... 85

12.3.1 DownholeSurveys.................................................................................................. 85

12.3.2 FinalCollarSurveys................................................................................................. 85

12.4 SAMPLINGINTERVALS.................................................................................................... 85

12.4.1 ReverseCirculation................................................................................................. 85

12.4.2 Core......................................................................................................................... 85

13 SAMPLECOLLECTION,PREPARATION,ANALYSISANDSECURITY..................................87

13.1 SUMMARY...................................................................................................................... 87

13.2 SAMPLEPREPARATIONANDANALYSIS.......................................................................... 87

13.2.1 Pre1999SamplePreparation................................................................................. 87

13.2.2 Post1999SamplePreparation............................................................................... 88

13.2.3 Post1999SampleCollection.................................................................................. 91

13.2.4 Post1999SampleCollectionCore........................................................................ 91

13.3 SAMPLESECURITY.......................................................................................................... 92

13.3.1 ReverseCirculationandCoreSamples................................................................... 92

13.3.2 AnalyticalResults.................................................................................................... 93

13.4 QA/QC,CHECKSAMPLESANDCHECKASSAYS...............................................................93

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14 DATAVERIFICATION....................................................................................................... 95

14.1 INTEGRITYOFDATABASE............................................................................................... 95

14.1.1 DataSelection......................................................................................................... 95

14.1.2 AssaySelection........................................................................................................ 95

14.1.3 GeologicalDataChecks........................................................................................... 96

14.1.4 CollarSurveyChecks............................................................................................... 97

14.1.5 DownholeSurveyChecks........................................................................................ 97

14.2 ANALYSISOFSAMPLINGBIASANDCORRECTIONOFEXPLORATIONDRILLINGASSAYS97

14.3 ANALYSISOFSAMPLINGBIASANDCORRECTIONOFEXPLORATIONDRILLINGASSAYS

ORE 100

14.4 ELECTRONICDATABASEVALIDATIONSRK................................................................. 101

14.4.1 DataCollectionAssayCertificatesandGeologicalLogs....................................102

14.4.2 DataCollectionElectronicData......................................................................... 102

14.4.3 VerificationofAssays............................................................................................ 102

14.4.4 VerificationofGeologicalData............................................................................. 103

14.4.5 VerificationofSurveys.......................................................................................... 103

14.4.6 ResultsandDatabaseCompilation....................................................................... 103

14.5 ADJUSTMENTOFASSAYVALUESNEWRESOURCEMODEL.........................................104

15 ADJACENTPROPERTIES................................................................................................ 105

16 MINERALPROCESSINGANDMETALLURGICALTESTING..............................................106

16.1 PROCESSINGFACILITIES............................................................................................... 106

16.1.1 BrimstoneLeachPad............................................................................................ 106

16.1.2 BrimstonePlant.................................................................................................... 106

16.1.3 Recovery................................................................................................................ 106

16.2 METALLURGICALTESTWORK...................................................................................... 109

16.2.1 HistoricTestWork................................................................................................. 110

16.2.2 TestWork2000.................................................................................................. 110

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16.3 PREVIOUSLYMINEDORECOMPAREDTOREMAININGRESERVES...............................111

16.4 METALLURGICALTESTINGOFUNOXIDZEDMATERIAL................................................112

16.4.1 OreCharacterization............................................................................................. 112

16.4.2 MetallurgicalTesting............................................................................................. 113

17 MINERALRESOURCEANDMINERALRESERVEESTIMATES..........................................115

17.1 HYCROFTMINERALRESOURCE.................................................................................... 115

17.1.1 ResourceDataforGradeEstimationandBlockModeling...................................115

17.1.2 RESOURCEESTIMATION....................................................................................... 124

17.1.3 VORTEXZONENEWLYDEFINEDSUBSETOFHYCROFTRESOURCE....................135

17.2 HYCROFTMINEMINERALRESERVES............................................................................ 136

17.2.1 ReserveDetermination......................................................................................... 136

17.2.2 ReserveDeterminationProcedures...................................................................... 137

17.2.3 EconomicParameterstoDetermineReserveLevelPitDesign............................137

17.2.4 Dilution.................................................................................................................. 138

17.2.5 CutoffGrades........................................................................................................ 138

17.2.6 HycroftMineMineralReservesStatement..........................................................139

18 OTHERRELEVANTDATAANDINFORMATION.............................................................. 140

19 INTERPRETATIONSANDCONCLUSIONS....................................................................... 141

20 RECOMMENDATIONS................................................................................................... 142

20.1 VortexSulfideResourceDevelopmentPlan................................................................ 142

20.2 SulfideResourceDevelopmentPlan............................................................................ 142

20.3 HardBottomDrillingPlan............................................................................................ 142

21 REFERENCES................................................................................................................. 145

22 DATE............................................................................................................................. 147

23 ADDITIONALREQUIREMENTSFORDEVELOPINGORPRODUCINGPROPERTIES.........148

23.1 OPENPITMININGOPERATIONS................................................................................... 148

23.2 MININGFLEET.............................................................................................................. 151

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23.3 PROCESSINGANDRECOVERIES.................................................................................... 151

23.4 PERSONNEL.................................................................................................................. 151

23.5 ENVIRONMENTAL......................................................................................................... 152

23.6 TAXESANDMARKETS................................................................................................... 152

23.7 CAPITALANDOPERATINGCOSTESTIMATES............................................................... 152

23.8 ECONOMICANALYSIS................................................................................................... 153

23.9 MINELIFEDISCUSSIONANDEXPLORATIONPOTENTIAL.............................................155

24 AUTHORSCERTIFICATE................................................................................................ 160

ListofTables

Table1.1HycroftMineTechnicalReportRelevantStatistics......................................................... 3

Table1.2HycroftMineMeasuredandIndicatedOxideGoldResources.......................................6

Table1.3HycroftMineMeasuredandIndicatedSulfideGoldResources.....................................6

Table1.4HycroftMineMeasuredandIndicatedOxideSilverResources.....................................6

Table1.5HycroftMineMeasuredandIndicatedSulfideSilverResources.....................................6

Table1.6HycroftInferredOxideGoldResources(IncludesCrofootPad).....................................7

Table1.7HycroftInferredOxideSilverResources......................................................................... 7

Table1.8HycroftInferredSulfideGoldResources......................................................................... 7

Table1.9HycroftInferredSulfideSilverResources........................................................................ 7

Table1.10HycroftMineProvenandProbableMineralReservesatOctober17,2008................8

Table4.1HycroftLandHoldingsCosts......................................................................................... 23

Table4.2HycroftOperatingPermits............................................................................................ 25

Table4.3HycroftMiscellaneousPermits..................................................................................... 26

Table5.1HycroftWaterWellsandPermittedYearlyConsumption............................................28

Table6.1HistoricDrilling.............................................................................................................. 31

Table6.2HistoricProduction(USImperialUnits)........................................................................ 34

Table6.3HistoricPadProduction(USImperialUnits)................................................................. 35

Table6.4HistoricMay2000Resource......................................................................................... 36

Table6.5HistoricMAY2000Reserves......................................................................................... 37

Table6.6ProductionPriortoFebruary1,2001........................................................................... 37

Table9.1GradebyDomain.......................................................................................................... 49

Table10.1HycroftExplorationDrillCampaigns........................................................................... 57

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Table10.2ExplorationDrillholesbyType.................................................................................... 58

Table10.3DiscoveryYearsofHycroftOxideZones..................................................................... 58

Table10.4GeologicalLoggingCodes............................................................................................ 59

Table10.5Lithological,Structure,Alteration,SulfurandOxidationCodes.................................61

Table11.11999TwinRCDrillingCampaign................................................................................. 66

Table11.2ComparisonoftheTwinDrillholes(FireAssaysImperialUnits)..............................67

Table11.3ComparisonoftheTwinDrillholes(CyanideSolubleAssays).....................................67

Table11.4AlliedNevadaHycroftDrillingProgram...................................................................... 75

Table13.1LaboratorySampleSizes............................................................................................. 88

Table14.1ErrorFrequenciesbySelectionCriteria...................................................................... 96

Table14.2TabulationofErrorsinRandoreCategory................................................................. 96

Table14.3TabulationofErrorsinRandomWasteCategory.......................................................96

Table14.4AdjustmentstoCyanideSolubleGoldforPresenceofSulfur....................................99

Table14.5CorrectionFactorsAppliedtothe1999TwinDrilling(USImperialUnits).................99

Table16.1ProductionPadLoadingandRecoveries(USImperialunits)....................................107

Table16.2Column/BarrelTestResultsonTransitionOxideandSilicifiedOxideOre.........110

Table16.3ColumnLeachResultsforOxideOre........................................................................ 111

Table16.4SouthBrimstoneDrillIntercepts(USImperialUnits)...............................................112

Table16.5NorthBrimstoneDrillInterceptsUSImperialUnits..................................................112

Table17.1VulcanRockUnitsandAlterationShapes............................................................... 117

Table17.2BrimstoneTonnageFactors...................................................................................... 118

Table17.3BrimstoneCompositeStatistics(ImperialUnits)......................................................119

Table17.4Cut5CompositeStatistics......................................................................................... 122

Table17.5CombinedResource_aug08.bmfDimensions............................................................125

Table17.6HycroftVariograms................................................................................................... 125

Table17.7EstimationSamplingParameters.............................................................................. 126

Table17.8ReconciliationofOREtoSEWCResourceModelEstimation(USImperialUnits)....127

Table17.9HycroftResourceClassificationCriteria.................................................................... 128

Table17.10HycroftMeasuredandIndicatedInSituGoldMineralResources.........................128

Table17.11HycroftInferredInSituGoldMineralResources....................................................129

Table17.12MeasuredandIndicatedInSituSilverResources...................................................129

Table17.13InferredInSituOxideSilverResources................................................................... 130

Table17.14CrofootPadOxideInferredMineralResources......................................................130

Table17.15March31,2009OxideMeasuredandIndicatedGold........................................131

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Table17.16March31,2009SulfideMeasuredandIndicatedGold......................................131

Table17.17March31,2009OxideMeasuredandIndicatedSilver......................................132

Table17.18March31,2009SulfideMeasuredandIndicatedSilver.....................................132

Table17.19March31,2009OxideInferredGold.................................................................. 133

Table17.20March31,2009SulfideInferredGold................................................................ 133

Table17.21March31,2009OxideInferredSilver.................................................................. 134

Table17.22March31,2009SulfideInferredSilver................................................................ 134

Table17.23VortexZoneInferredResources............................................................................. 135

Table17.24EconomicDesignParameters................................................................................. 137

Table17.25PitDesignParameters............................................................................................. 137

Table17.26October17,2008HycroftMineralReserveEstimate.............................................139

Table23.1HycroftMinePersonnel............................................................................................ 152

Table23.2OperatingCosts(ImperialUnits)............................................................................... 153

Table23.3CapitalExpenditures(thousandsofdollars).............................................................153

Table23.4HycroftProjectAnualCashflowSummary(USImperialUnits).................................154

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ListofFigures

Figure4.1HycroftMinePropertyLocationMap.......................................................................... 19

Figure4.2PropertyLayout........................................................................................................... 20

Figure4.3ClaimBoundaries......................................................................................................... 22

Figure7.1SimplifiedGeologicalMapoftheSulfurDistrict..........................................................40

Figure7.2SimplifiedEastWestCrossSectionsthroughtheSulfurDistrict.................................41

Figure7.3BrimstoneNorthPitWallGeology............................................................................... 44

Figure9.1BarrenSilicaPyrite....................................................................................................... 47

Figure9.2SchematicCrossSectionofFractureControlledChalcedonyPyriteMarcasite..........48

Figure9.3HypogeneOxidationbyAcidSteamHeatedSolution...............................................51

Figure9.4SupergeneOxidation+NormalFaultMovement........................................................55

Figure11.1Recoveryvs.ChemexAuFA........................................................................................ 69

Figure11.2Recoveryvs.HycroftAuCN........................................................................................ 70

Figure11.3HoleLocationsandResultsofFireAssayProgramHistoricPulps........................73

Figure11.4ReservesandResourceDevelopmentDrillPlan........................................................74

Figure16.1HycroftLeachPadRecovery(CyanideSoluble)Comparisons.................................108

Figure17.1AllMineralizedBrimstoneComposites.................................................................... 120

Figure17.2BrimstoneCompositesatthe0.005AuFACutoffGrade..........................................121

Figure17.3GradeandRocktypeDistributionsatCut5(AllMineralization).............................123

Figure17.4GradeandRocktypedistributionatthe0.005cutoffgrade....................................124

17.5VortexZonewithSuggestedDrillingTargets.......................................................................135

Figure20.1Phase1SulfideandVortexDevelopmentPlan.......................................................143

Figure20.2DrillPlantoconvertOxidetoProvenandProbable.................................................144

Figure23.1PitSiteandFacilities................................................................................................ 149

Figure23.2HycroftMiningPhases............................................................................................. 150

Figure23.3IRRSensitivity........................................................................................................... 155

Figure23.4Cut4CrossSection.................................................................................................. 156

Figure23.5BayAreaCrossSection............................................................................................ 157

Figure23.6BrimstoneCrossSection.......................................................................................... 158

Figure23.7Geophysics............................................................................................................... 159

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1 SUMMARY

1.1 INTRODUCTION

ThisNI43101compliantTechnicalReportwaspreparedbyScottE.WilsonConsulting,Inc.

(SEWC)ofEnglewood,ColoradoforAlliedNevadaGoldCorp.(AlliedNevada),aDelawarecorporationlistedontheTorontoStockExchange,theNewYorkStockExchangeandthe

AmericanStockExchange(SymbolANV).AlliedNevadacontrolsmorethan100mineral

propertiesthroughoutNevadaincludingtheHycroftGoldMiningOperationwhichisthesubject

ofthisreport.

ThisreportvariouslydescribessixgoldandsilverdepositscollectivelyreferredtoastheHycroft

Mine,HycroftProjectorsimplyHycroft.Thesixdeposits,listedbelow,containthemineral

resourcesandmineralreservesaddressedinthisreport.

x BrimstoneDeposit(MineralReservesandMineralResources)

x Cut5Deposit(MineralReservesandMineralResources)

x CamelHillDeposit(MineralResources)

x BayAreaDeposit(MineralResources)

x Boneyard(MineralResources)

x CentralFault(MineralResources)

x DeepSulfidesVortexZone

AllmaterialatHycrofthasbeenclassifiedinaccordancewiththeresourceclassificationofthe

CanadianInstituteonMining,MetallurgyandPetroleum(CIM)asincompliancewithNational

Instrument43101(NI43101).

ThisnewTechnicalReportidentifieschangestotheNI43101compliantMineralReservesand

MineralResourcesthatwerereportedintheOctober17,2009TechnicalReport,authoredby

SEWCandpublishedonSEDAR.Numeroussourcesofinformation,bothdigitalandhardcopy,

wereusedinthepreparationofthisreport.Thedatacomprisesoverthreethousand

explorationholesaswellasupdatedgeologicalinterpretations.OrdinaryKrigingwasusedas

thegradeestimationtechnique.

Theauthorofthisreport,ScottWilson,aQualifiedPerson,hasvisitedtheHycroftpropertyon

numerousoccasions.Mostrecently,Mr.WilsonvisitedtheHycroftMineonMarch3,2009toreviewpitdesigns,mineplansandschedulingoptionsassociatedwiththeoperationofthe

HycroftMine.

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TheHycroftMineisanopenpit,heapleachgoldandsilvermine.Hycroftislocated54miles

westofWinnemucca,Nevadaandhasproducedinexcessofonemillionouncesofgoldandtwo

millionouncesofsilver.FormerlytheHycroftMinewasknownastheCrofootLewisMine.

Miningbeganintheareain1983withasmallheapleachoperationknownastheLewisMine.

TheLewisMineproductionwasfollowedbyproductionfromtheCrofootpropertyintheBay,

SouthCentral,Boneyard,GapandCut4pitsalongtheCentralfault,andfinallythenorthendof

theBrimstonepitandcontinueduntilitwasputonacareandmaintenanceprogramin

December1998duetolowgoldprices(below$300perounce).

TheHycroftMinehistoricallycomprisedtwoprimaryleaseholdingsnamedtheCrofootand

Lewisproperties.Thesepropertiescompriseapproximately11,829acresofwhichtheCrofoot

propertyisapproximately3,636acresandtheLewispropertyis8,193acres.TheLewis

propertycompletelysurroundstheCrofootproperty.InMay,SeptemberandOctoberof2006,

717additionalclaimswerelocatedcomprising14,340acresinthenameofHycroftResourceandDevelopmentCorporation.Together,AlliedNevadaholds2,349unpatentedclaims

coveringapproximately48,000acresontheHycroftProperty.

TheCrofootpropertyisheldbyHycroftResourcesandDevelopmentInc.,awhollyowned

subsidiaryofAlliedNevada.A4%netprofitsinterestisretainedbytheoriginalCrofootowners.

In1996thelease/purchaseagreementwasamendedtoprovideforminimumadvanceroyalty

paymentsof$120,000onJanuary1ofeachyearinwhichminingoccursonbothpatentedand

unpatentedclaims.AllpaymentsfortheCrofootpropertyarecappedat$7.6million,after

whichAlliedNevadawillowntheproperty.Anadditional$120,000isdueiforeproduction

exceeds5.0milliontonsfromtheCrofootproperty,onbothpatentedandunpatentedclaims,inanycalendaryear.Alladvancedroyaltypaymentsareavailableascreditagainstthe4%net

profitsroyalty.RoyaltypaymentstoCrofoothavetotaled$840,000sincetheamended

agreement.

TheleaseholdinterestintheLewispropertyiswhollyownedbyAlliedNevada.

Oftheapproximately50,000acresofpatentedandunpatentedmineralclaims7,700acresare

withinthecurrentplanofoperations.Nearly2,600acreshavebeendisturbedbymining

operations.Thereisone20acreclaimonthenorthendoftheCentralFaultthatisnot

controlledby

Hycroft.

This

claim

isnot

in

an

area

that

impacts

any

current

or

future

operations.

TheHycroftMineisinfullproductionandhasbeenrecoveringgoldfromitsprocessing

facilities.Table1.1liststhemostimportantaspectsoftheHycroftMinethatareaddressedin

thisreport.

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Table1.1HycroftMineTechnicalReportRelevantStatistics

Category Description

PropertyName HycroftMine

CompanyName

Hycroft

Resources

and

Development

Inc.

Owner AlliedNevadaGoldCorp.

LandPosition PublicandPrivateClaims,NevadaandBLM

NearestPopulationCenter Winnemucca,Nevada

MineLocation FiftyfourmileswestofWinnemuccaviatheJungoRoad

Topography LowHills

Climate AridDesert

HistoricProduction Over1,000,000OuncesSince1983

ReasonforNI43101TechnicalReport MaterialChangestotheMineralResourcesandMineral

Reservesat

the

Hycroft

Mine

MineralizationType FractureControlledDisseminatedGold

EstimationType OrdinaryKriging

MineLife 6.5Years

ProductionRateImperialTons 25MillionTonnesperYearMinedTargetof180,000

ContainedOuncesPlacedonPad

MiningMethod OpenPitTruckandShovel

ProcessingMethod RunofMineHeapLeaching

ProcessingGoldRecovery 56%

GoldSelling

Price

SEWC

Financial

Model

$650

USD

MiningCostperImperialTonMined $1.14USD

ProcessingCostperImperialOreTon

(IncludesG&A)

$1.37USD

OperatingCostperImperialOreTon $2.59

PreTaxCashFlowSEWCFinancial

Model

$86.582Million

PreTaxNetPresentValueat10%SEWC

FinancialModel

$45.416Million

PreTaxIRRSEWCFinancialModel 55%

ApproximateTimeforPayback 42Months

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1.2 GEOLOGYANDMINERALIZATION

TheHycroftDepositislocatedintheNevadaBasinandRangegeologicprovinceonthewestern

flankoftheKammaMountains,alongthecountylinebetweenHumboldtandPershing

Counties,Nevada.

Tertiary

to

recent,

fault

controlled,

low

sulfidation

gold

deposits

occur

over

anareameasuring3milesinanorthsouthdirectionby1.5milesinaneastwestdirection.

Basedondrillingresults,mineralizationextendstodepthsofatleastthan330ftinthe

outcroppingtonearoutcroppingportionoftheBaydepositonthenorthwestsideandtoover

1000ftintheBrimstonedepositintheeasternportionoftheHycroftproperty.

Fivemajornorthnortheasttrending,westdipping,normalfaultzonesbroadlyboundgold

mineralization.ThefaultzonesarereferredtoastheCentral,Boneyard,Albert,FireandEast

Faults.TheLewis,Bay,CentralandSouthCentral,Cut3,andCut4depositsarehostedbythe

SulfurGroupinthehangingwalloftheCentralFault.

TheBrimstoneDepositishostedwithinthehangingwalloftheEastFault.Thisportionofthe

deposithasbeenhighlystructurallypreparedbyatleastfourphasesofalteration.Gold

mineralizationisthoughttohaveoccurredduringperiodsoffracturecontrolled,

chalcedony/pyrite/marcasitemineralization.Oxidationappearstoberelatedtoadeepacid

leachingevent.

1.3 DRILLINGANDSAMPLING

Explorationanddevelopmentdrilling,byAlliedNevadaanditspredecessors,totals1,270,583

feetofdrilling,in3,626,drillholesattheHycroftMine.InDecember2006,AlliedNevadadrilled

onereversecirculationholeatthesouthendoftheCut4Pit.TheCompanythencommencedadrillingprogramofseventyholesinAugust2007todelineateoxideandsulfideresources

throughouttheentireHycroftproperty.AsofDecember31,2008,AlliedNevadahad

completed393holestotaling300,494feetdrilledwithencouragingresults.

Currentsamplecollection,assayingandcertificationofassaysareconsistentwithcurrently

acceptedminingandoperatingpractices.Thesamplingmethodsarestandardizedandtracked

byminesitegeologists.Samplepreparation,analysisandsecurityarehandledbytwo

reputablelaboratories.Alldataisverifiedbeforebeingenteredintothedrillholedatabasesfor

resourceestimation.

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1.3.1 RESOURCES

SEWChasdevelopedthebreakdownforresourcesontheHycroftproperty.Resourcesforthis

reportarebrokendownaseither1)OxideGold2)OxideSilver3)SulfideGold4)SulfideSilver.

Thebreakdownsarecharacterizedas:

x OxideMineralizationTheoxidematerialwillbeprocessedbyutilizingtheexistingand

expandedheapleachpadsandprocessingfacilities.OxideSilverisincludedonlyas

MineralResourcesduetolimitedunderstandingofoxidesilverrecoveries.Until

additionalsilverassaysareobtainedandsilverrecoverycanbedetermined,no

containedsilverwillbereportedfortheoxidereservesandresources.

x SulfideGoldMineralizationTheinferredresourceestimateforsulfidematerial

containinggoldonlywascalculatedfromfireassaydataobtainedfromover3,400

historicexplorationdrillholes,comprisingapproximately1,100,000feetofdrilling.

Theseexplorationholesweredrilledtoashallowdepthandwerenotfireassayedfor

silver.Thesehistoricholesweredesignedtoidentifytheextentofoxide(heap

leachable)goldonlyandassuchwereneitherdesignedtotestthedepthnortheextent

ofthesulfidemineralization.Subsequentanalysisofthe3,200historicdrillholes

determinedthatapproximately90%ofthehistoricdrillholesbottomedinsulfides.

x SulfideSilverMineralizationTheinferredresourceestimateforsulfidematerial

containingsilverwasdeterminedfrom393holesdrilledsincefallof2007,comprising

approximately300,000feetofdrilling.Theseholeswerefireassayedforbothgoldand

silver.ThisinferredresourceiscalculatedoverawideareaofHycroftdepositand

showsthepotentialfortheretobealargemineralizedsystematHycroft.Drilltestingof

thisresourceissufficientforthecalculationofinferredresource.Additionalresource

developmentdrillingwillconvertasubstantialportionofthisdepositintotheindicated

andmeasuredcategories.

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1.3.2 NI43101COMPLIANTMEASUREDANDINDICATEDMINERALRESOURCES

TheMarch31,2009measuredandindicatedgoldresourceisreportedata0.17gAu/tcutoff

grade.MeasuredandIndicatedOxideGoldResourcesfortheHycroftMinedepositareshown

inTable1.2.MeasuredandIndicatedSulfideGoldResourcesfortheHycroftMinedepositareshowninTable1.3.

Table1.2HycroftMineMeasuredandIndicatedOxideGoldResourcesMarch31,2009MeasuredandIndicatedGoldResource

CutoffgAu/t Tonnes1,000's Gradeg Au/t Contained ozAu

0.17 393,901 0.40 5,095,000

Table1.3HycroftMineMeasuredandIndicatedSulfideGoldResources

March31,2009MeasuredandIndicatedSXGoldResource


0.45 46,963 0.53 798,000

TheMarch31,2009measuredandindicatedsilverresourceisreportedata12.41gAg/tcutoff

grade.MeasuredandIndicatedOxideSilverResourcesfortheHycroftMinedepositareshown

inTable1.4.MeasuredandIndicatedOxideSilverResourcesfortheHycroftMinedepositare

showninTable1.4.

Table1.4HycroftMineMeasuredandIndicatedOxideSilverResourcesMarch31,2009MeasuredandIndicatedSilver Resource

CutoffgAg/t Tonnes1,000s GradegAg/t Contained ozAg

12.41 70,385 31.13 70,452,000

Table1.5HycroftMineMeasuredandIndicatedSulfideSilverResources

March31,2009Measuredand IndicatedSilver Resource


12.41 34,198 42.79 47,050,000

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1.3.3 NI43101COMPLIANTINFERREDMINERALRESOURCES

TheMarch31,2009HycroftInferredOxideGoldResourcesareshowninTable1.6atacutoff

gradeof0.17gptAuFA.HycroftInferredOxideSilverResourcesareshowninTable1.7ata

cutoffgradeof12.41gptAgFA.InferredSulfideGoldResourcesarereportedinTable1.8atagoldcutoffgradeof0.45gptAuFA.InferredSulfideSilverResourcesaretabulatedinTable1.9

atacutoffgradeof12.41gptAgFA.Industryacceptedstandardsforresourceestimationwere

usedtodeterminetheextentofmineralizationatHycroft.Goldandsilvermineralizationwas

estimatedusingordinarykrigingof25footdrillholecomposites.

Table1.6HycroftInferredOxideGoldResources(IncludesCrofootPad)March31,2009InferredGoldResource


0.17 139,408 0.37 1,643,000

Table1.7HycroftInferredOxideSilverResourcesMarch31,2009InferredSilver Resource


12.41 11,503 51.27 18,962,000

Table1.8HycroftInferredSulfideGoldResourcesMarch31,2009InferredGoldResource


0.45 218,524 0.62 4,371,000

Table1.9HycroftInferredSulfideSilverResources

March31,2009InferredSilver ResourceCutoffgAg/t Tonnes1,000s GradegAg/t Contained ozAg

12.41 103,405 47.82 158,965,000

1.4 OPERATINGMINEPLAN

SEWCusedcurrenteconomicstodevelopanewmineplanfortheHycroftMine.Ata

productionrateofapproximately23milliontonnesoforeandwasteperyeartheminecan

operateforabout6.5years.TheorewillbeplacedonPhases1and2oftheBrimstonePad.

Leachingoftheorewilltakeapproximately8years.

Thecurrentplanisfortheminetoruntwentyfourhoursperday,sevendaysperweek.

Productionisexpectedtoaverage1.9milliontonnesoftotalmineproductionpermonth.The

orecutoffgradeis0.16gAu/t.OrewillbeplacedontheBrimstonePadwithoutcrushing(run

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ofmine)andwastewillgotooneofseveraldumplocations.Muchofthewastewillbeusedto

backfilltheCentralfaultpit.

Alloregradematerialplacedontheleachpadwillberunofmineandcrossrippedtoenhance

permeability.Anetworkofsolutiondriplineswillbepositionedandtherunofminematerialwillbeleachedwithacyanidesolutionforaperiodof60to90daysbeforeanother30fthigh

liftoforeisplacedontopoftheexistingone.Returnsolutionfromthepadcontainingthe

preciousmetalsisdirectedtothepregnantsolutionpond.

ThepregnantsolutionwillbeprocessedataMerrillCrowezincprecipitationplantthathas

beenmaintainedinpristineconditionsinceitwasshutdownin1998.TheMerrillCrowe

processclarifiesanddeoxygenatesthepregnantsolutionusingtwo1,600squarefootSparkler

filters.Zincdustisappliedtotheclarifiedsolutionwheregoldprecipitatesandiscollectedon

three48inchrecessedplatefilterpresses.Thecollectedprecipitatewillberefinedatanew

refinerywheremercurywillberemovedandthegoldwillbefirerefined.Thisisaclosed

processsothebarrensolutionisreturnedtotheleachpadcircuittostarttheprocessagain.

Expectedrecoveryofgoldis56.6%ofthetotalgold.

1.5 NI43101COMPLIANTPROVENANDPROBABLEMINERALRESERVES

EconomicreservesfortheBrimstoneandCut5depositswerecalculatedbasedoncurrent

operationaleconomicsforHycroft.The2008SEWCreserveblockmodelwasused.SEWC

verifiedtheeconomicpitlimitsofthemineralreserveestimateusingWhittle4.0software.

Table1.10summarizestheHycroftreserveswhichareunchangedsincetheOctober17,2008

TechnicalReport.

The

stated

Mineral

Reserve

Estimate

conforms

to

the

December

23,

2005

CIMdefinitionsofProvenandProbableMineralReserves.

Table1.10HycroftMineProvenandProbableMineralReservesatOctober17,2008Cutoff Category Tonnes 1,000s GradegAu/t Ounces

0.17gAu/t Proven 42,236 0.55 747,831

0.17gAu/t Probable 24,134 0.51 395,347

TotalProvenand

ProbableMineral

Reserves

66,369 0.54 1,143,178

Thewaste

material

inside

the

final

pit

design

includes

2.47

million

tonnes

of

oxide

inferred

materialgrading0.44gptAuFAabovea0.17gptAuFAcutoffgrade.Additionallythewastealso

includes13.63milliontonnesofsulfideinferredmaterialthatgrades0.45gptAuFAabovea

0.17gptAuFAcutoffgrade.ThoughthesemineralresourceswillbeminedwithintheHycroft

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Pit,mineralresourcesthatarenotmineralreservesdonothavedemonstratedeconomic

viability.

1.6 ONGOINGRESOURCEDEVELOPMENT

AlliedNevadahasundertakenseveralmetallurgicalstudiestodeterminetherecoveriesassociatedwiththepotentialtoprocesssulfidegoldandsilvermaterial.Theresultsare

encouraging.Thelargesulfideresourcehasbeendrilltestedanddelineatedbywidelyspace

drillingprograms.AlliedNevadashouldinstitutedrillingprogramstoincreasethedrilling

densityofthedeepsulfideandVortexZoneinferredgoldandsilverresourceportionoftheore

deposit.Thiswillallowforthepotentialtoconvertresourcesintotheindicatedmineral

resourcecategory.Indicatedresourcesshouldbeevaluatedforthepotentialtosustainsulfide

processingmethods.

1.7 CONCLUSIONS

1.7.1 AdequacyofProcedures

SEWC,aswellasotherreputablefirmsandconsultants,hasreviewedthemethodsand

proceduresofAlliedNevadaanditspredecessors.Themethodsofgeologicalinterpretation,

geotechnicalevaluation,mineplanningandassayingproceduresarereasonableandmeet

generallyacceptedpracticesforoperatingNevadagoldmines.

1.7.2 AdequacyofData

SEWCbelievesthatAlliedNevadahasconductedexplorationanddevelopmentsamplingand

analysisprogramsusingindustrystandardpractices.TheresultingdatacanbereliedupontoestimateMineralResourcesandMineralReservesattheHycroftProject.

1.7.3 AdequacyofFinancialInformation

TheeconomicsofthisTechnicalReportarebasedonactualandpredictedinformationgathered

fromdiscussionswithAlliedNevadapersonnel.SEWCbelievesthecosttrackingprocedures

andassumptionsatHycroftareadequateenoughtodrawreliableconclusionsonthe

economicsoftheHycroftMine.

1.7.4 CompliancewithCanadianNationalInstrumentNI43101

ThedrillholedatabaseandassayingqualityfortheHycroftMineissufficientforthe

determinationofMeasured,IndicatedandInferredMineralResources.Additionally,the

geologicalinterpretations,metallurgicalassumptionsandthespatialdrillingdensities,within

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theBrimstoneandCut5deposits,aresufficienttodefineandstateProvenandProbable

MineralReservesforHycroft.Alloftheaforementionedcategoriesarecompliantasdefinedby

theDecember23,2005CIMStandardsofDisclosureforMineralProjects,Form43101F1and

CompanionPolicy43101CP.

1.7.5 CautionaryNotetoU.S.ReadersConcerningEstimatesofMeasured,Indicatedand

InferredResources

ThetermsMineralResource,MeasuredMineralResource,IndicatedMineralResource

andInferredMineralResourceusedinthisreportareCanadianminingtermsasdefinedin

accordancewithNI43101underguidelinessetoutintheCIMStandardsonMineral

ResourcesandMineralReservesadoptedbytheCIMCouncilonDecember11,2005.Whilethe

termsMineralResource,MeasuredMineralResource,IndicatedMineralResourceand

InferredMineralResourcearerecognizedandrequiredbyCanadianregulations,theyarenot

definedtermsunderstandardsoftheUnitedStatesSecuritiesandExchangeCommission.

UnderUnitedStatesstandards,mineralizationmaynotbeclassifiedasareserveunlessthe

determinationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegally

producedorextractedatthetimethereservecalculationismade.Assuch,certaininformation

containedinthisreportconcerningdescriptionsofmineralizationandresourcesunder

CanadianstandardsisnotcomparabletosimilarinformationmadepublicbyUnitedStates

companiessubjecttothereportinganddisclosurerequirementsoftheUnitedStatesSecurities

andExchangeCommission.AnInferredMineralResourcehasagreatamountofuncertainty

astoitsexistenceandastoitseconomicandlegalfeasibility.Itcannotbeassumedthatallor

anypartofanInferredMineralResourcewilleverbeupgradedtoahighercategory.Under

Canadianrules,estimatesofInferredMineralResourcesmaynotformthebasisoffeasibilityor

othereconomicstudies.ReadersarecautionednottoassumethatalloranypartofMeasured

orIndicatedResourceswilleverbeconvertedintoMineralReserves.Readersarealso

cautionednottoassumethatalloranypartofanInferredMineralResourceexists,oris

economicallyorlegallymineable.Inaddition,thedefinitionsofProvenMineralReservesand

ProbableMineralReservesunderCIMstandardsdifferincertainrespectsfromthestandards

oftheUnitedStatesSecuritiesandExchangeCommission.

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1.8 RECOMMENDATIONS

SEWCrecommendsthatAlliedNevadaimplementthefollowingresourcedevelopmentplansat

Hycroft.

1. DeterminetheprebackfillsurfaceattheBayArea

2. Investigategoldandsilverrecoveryandprocessingmethodsforsulfidematerial

3. DrilltheVortexZoneon200footcenters

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2 INTRODUCTIONANDTERMSOFREFERENCE

2.1 PURPOSEOFTECHNICALREPORT

ScottE.WilsonConsulting,Inc.(SEWC)preparedthistechnicalreportoftheHycroftMineatthe

requestofAlliedNevadaGoldCorp.(AlliedNevada),aDelawarecorporation.TheHycroftMineisownedbyAlliedNevada.AlliedNevadamadethedecisioninSeptemberof2007tore

activatetheirwhollyownedHycroftMinewhichwasplacedincareandmaintenanceprogram

inlate1998duetolowmetalprices.OpenpitminingoftheBrimstonePitresumedinthethird

quarterof2008.Goldproductionisexpectedinthefourthquarterof2008.Approximately

650,000ouncesofgoldwillberecoveredoverfiveyears.

ThisreportisintendedtoprovideatechnicalsummaryoftheHycroftMinegoldandsilver

resourceandreservesforAlliedNevada.Thistechnicalreportiswrittenincompliancewith

disclosureandreportingrequirementssetforthintheCanadianSecuritiesAdministrators

NationalInstrument43101,CompanionPolicy43101CP,andForm43101F1.Priortothis

report,SEWCofEnglewoodColoradoauthoredatechnicalreportpertainingtotheHycroft

MinedatedOctober17,2008(Wilson,2008).Thetechnicalinformationcontainedinthis

technicalreportreflectsmaterialchangesthathaveoccurredsincetheOctober2008Report.

TheremainingresourcesandreservescitedfortheHycroftMinearecurrentasofMarch30,

2009.

2.2 SOURCESOFINFORMATION

Thescopeofthisstudyincludedareviewofpertinenttechnicalreportsanddatainpossession

ofAllied

Nevada

relative

to

the

general

setting,

geology,

project

history,

exploration

activities

andresults,methodology,qualityassurance,interpretationsandresourcesandreserves

Materialchangesdiscussedinthisreportarebasedontheremodelingandreinterpretationof

geologyattheBrimstoneandCut5Deposits.Observationsandinterpretationsofgeostatistics,

geology,gradeestimationanddeterminationofmineralizedtrendsatHycroftweregenerated

independentlybySEWCanddiscussedinternallywithAlliedNevada.TheHycroftmodelwas

generatedandevaluatedwithVulcan3Dscientificsoftware.Economicpitlimitswere

determinedwithWhittleStrategicPlanningsoftware.

2.3 EXTENTOFINVOLVEMENTOFQUALIFIEDPERSON

Theauthorsmandatewastodeterminethemostcurrentoxideandsulfide,propertywidegold

andsilverMineralResourceestimatesfortheHycroftMine.Alsotheauthorwasmandatedto

determinetheProvenandProbableMineralReservesfortheHycroftMine.Theauthoris

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responsiblefortheconstructionoftheHycroftblockmodelandtheinterpretationofstatistics

andgradeestimationtechniquesfortheHycroftMine.Theauthorvisitedtheminesitefora

personalinspectiononMarch3,2009tovalidatemineplanningoptionsrelatedtoproduction

ofgoldattheHycroftMine.

2.4 TERMSOFREFERENCE

Unlessstatedotherwise,allvolumesandgradesareinmetricunitsandcurrenciesare

expressedinconstant2009USdollars.DistancesareexpressedinUSimperialunits.Thisreport

iswrittenspecificallyfortheHycroftMineOperation.

2.5 UNITSOFMEASURE

2.5.1 CommonUnits

Cubicfoot................................................................................................................................. ft3

Cubicyard................................................................................................................................ yd3

Degree......................................................................................................................................

DegreesFahrenheit.................................................................................................................. F

Foot.......................................................................................................................................... ft

Gallon....................................................................................................................................... gal

Gram........................................................................................................................................ g

Inch.......................................................................................................................................... "

Kilo(thousand)......................................................................................................................... k

Lessthan..................................................................................................................................

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2.5.2 CommonChemicalSymbols

Calciumcarbonate................................................................................................................... CaCO3

Copper..................................................................................................................................... Cu

Cyanide.................................................................................................................................... CN

Gold.......................................................................................................................................... Au

Hydrogen................................................................................................................................. H

Iron........................................................................................................................................... Fe

Lead.......................................................................................................................................... Pb

Silver........................................................................................................................................ Ag

Sodium..................................................................................................................................... Na

Sulfur........................................................................................................................................ S

Zinc........................................................................................................................................... Zn

2.5.3 CommonAcronyms

AA............................................................................................................................................. atomicabsorption

AuEq.........................................................................................................................................

gold

equivalent

BLM.......................................................................................................................................... U.S.BureauofLand

Management

CIM........................................................................................................................................... CanadianInstituteof

Mining,Metallurgy

andPetroleum

Engineers

EIS............................................................................................................................................ Environmental

ImpactStatement

EPA........................................................................................................................................... U.S.Environmental

ProtectionAgency

FCCPM...................................................................................................................................... Fracturecontrolled

chalcedonypyrite

marcasite

mineralization

ISO............................................................................................................................................ International

Standards

Organization

NDEP........................................................................................................................................ NevadaDepartment

ofEnvironmental

Protection

NPI............................................................................................................................................ Netprofitinterest

NSR........................................................................................................................................... NetSmelterreturn

OzAg/ton................................................................................................................................. Silverouncesper

shortton

OzAu/ton................................................................................................................................. Goldouncespershort

ton

ROM......................................................................................................................................... Runofmine

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RQD.......................................................................................................................................... Rockquality

designation

RCorRVC................................................................................................................................. Reversecirculation

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3 RELIANCEONOTHEREXPERTS

Theopinionsexpressedinthisreportarebasedontheavailableinformationandgeologic

interpretationsasprovidedbyAlliedNevada.SEWCregularlydiscussestheHycroftMineand

materialinformation

with

the

following

people:

x Mr.MikeDoyle,VicePresidentofTechnicalServices,AlliedNevadaGoldCorp.

x Mr.HalKirby,VicePresidentandChiefFinancialOfficer,AlliedNevadaGoldCorp.

x Mr.DavidFlint,ChiefGeologist,AlliedNevadaGoldCorp.

x Mr.WarrenWoods,GeneralManager,HycroftResourcesandDevelopment,Inc.

x Mr.ToddSylvester,MineManager,HycroftResourcesandDevelopment,Inc.

Theauthorhasexercisedindependenceinreviewingthesuppliedinformationandbelieves

thatthebasicassumptionsarefactualandcorrectandtheinterpretationsarereasonable.The

authorhasreliedonthisdataandhasnoreasontobelievethatanymaterialfactshavebeenwithheld.

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4 PROPERTYDESCRIPTIONANDLOCATION

4.1 LOCATION

TheHycroftMineislocated54mileswestofWinnemuccainHumboldtCounty,Nevada(Figure

4.1)withasignificantportionofthepropertyinadjacentPershingCounty.ThemineiseasilyaccessibleviatheJungoroad,NevadaHighway49,anallweather,unpavedroadthatis

maintainedbyHumboldtCounty(Wilson,2008;Prenn,2006).

TheminepropertystraddlesTownships34,35,35.2and36NorthandRanges29and30East

withanapproximatelatitude4052northandlongitude11841.Themineissituatedonthe

westernflankoftheKammaMountainsandontheeasternedgeoftheBlackRockDesertin

unsurveyedSections1and2,Township34North,Range29East;Sections13,23,24,25,26,27,

34,35,36,Township35North,Range29East;andSections17,18,19,20,30,31,Township35

North,Range30East,MDB&M,HumboldtCounty,andSections1,2,3,11,12,13,14,23,24,

25,26,Township34North,Range29East;andSections5,6,7,8,17,18,19,20,29,30,

Township34North,Range30East,MDB&M,PershingCounty,Nevada.AlliedNevadastaked

25claimsinNovember,2007inSections28,31,32and33,Township35North,Range30East,

MDB&M,HumboldtCounty,andSections1,11,12and14,Township34North,Range29East,

PershingCounty.OneclaimwasstakedinJanuary,2008inSection34,Township35North,

Range29East,MDB&M,HumboldtCounty.Anadditional1,057unpatentedlodeminingclaims

werestakedinAprilandMay,2008andrecordedwiththeBureauofLandManagement

(BLM)inlateJune,2008.ThesenewclaimsarelocatedinSections1,2,3,10,11,12,13,14,

15,21,22,23,27,28,29,30,31,32and33,Township35North,Range29East;Sections36,

Township35North,Range28East;Sections25,26,35and36,Township35.2North,Range29

East;Sections4,5,6,7and8,Township35North,Range30East;Sections28,32and33

Township36North,Range29East;Sections19,28,29,30,31,32,33and34,Township36

North,Range30East,MDB&M,HumboldtCounty,andinSections3,4,5,6,7,8,9,10,15,16,

17,18,19,20and21,Township34North,Range29East;Sections1,2,11,12and13,Township

34North,Range28East;MDB&M,PershingCounty.Pleasenotethatmuchoftheprojectarea

islocatedonunsurveyedpublicandprivatelandandthesections,ranges,andtownshipslisted

abovehavebeeninterpolatedforpurposesofthisgeneraldescription.However,allpatented

claimshavebeensurveyed(Wilson,2008;Prenn,2006).

OnMay10,2007,VistaGoldCorp(Vista)transferreditsNevadaassets,includingHycroft,to

AlliedNevada.TheHycroftMinehistoricallycomprisedtwoprimaryleaseholdingsnamedthe

CrofootandLewisproperties.Thesepropertiescompriseapproximately11,829acresofwhich

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theCrofootpropertyisapproximately3,636acresandtheLewispropertyis8,193acres.The

LewispropertycompletelysurroundstheCrofootproperty.InMay,SeptemberandOctoberof

2006,VistaGoldlocated717additionalclaimscomprising14,340acres.InNovemberof2007

Alliedlocated25claims,andin2008Alliedlocated1,058claimsinJanuary,AprilandMay,

comprising21,660acres.AlliedNevadacurrentlyholds2,349unpatentedclaimscovering

approximately48,000acres.

4.2 MINERALTENURE

ThemineismanagedandoperatedbyAlliedNevadaunderthenameofTheHycroftMine.

TheCrofootpropertyisownedbyHycroftResourcesandDevelopmentCorporation.A4%net

profitsinterestisretainedbytheoriginalCrofootowners.In1996thelease/purchase

agreementwasamendedtoprovideforminimumadvanceroyaltypaymentsof$60,000on

January1ofeachyearinwhichminingoccursonthepatentedclaimscoveredunderthe

amendedagreementand$60,000onJanuary1ofeachyearminingtakesplaceonthe

unpatentedclaimscoveredundertheamendedagreement.AllpaymentsfortheCrofoot

propertyarecappedat$7.6million,afterwhichAlliedNevadawillowntheproperty.An

additional$60,000isdueiforeproductionexceeds5.0milliontonsfromthepatentedclaims

onCrofootpropertyandanadditional$60,000ifproductionexceeds5.0milliontonsonthe

unpatentedclaimsontheCrofootpropertyinanycalendaryear.Alladvanceroyaltypayments

areavailableascreditagainstthe4%netprofitsroyalty.RoyaltypaymentstoCrofoothave

totaled$840,000sincetheamendmentagreement.

Thereare

2,349

unpatented

mining

claims

covering

approximately

48,000

acres

at

the

Hycroft

site.Anadditional1,440acresareinpatentedlodeandplacerclaimsandarethecoreproperty

surroundedbytheunpatentedclaims.Thepermittedsitedisturbanceforcurrentandfuture

miningactivitiestotal2,600acres.Thereisone20acreclaimonthenorthendoftheCentral

FaultthatisnotcontrolledbyHycroft.Thisclaimisnotinanareathatimpactsanycurrentor

futureoperations.

AlliedNevadapossessesallofthenecessarypermits,facilitiesandinfrastructuretoallow

resumptionofminingatHycroft.Capitalinvestmenthasbeenapprovedforpreproduction

stripping,leachpaddevelopment,thepurchaseofausedminingfleetandothercapital

expendituresnecessarytorestarttheHycroftMine.Figure4.2showsthepropertylayoutincludingsitefacilities,mineralizedzones,mineworkingsandwastedeposits.

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Figure4.1HycroftMinePropertyLocationMap

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Figure4.2PropertyandFacilitiesLayout

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4.3 AGREEMENTSANDROYALTIES

TheleaseholdinterestsofHycroftMinearecomposedoftwoprimaryproperties,Crofootand

Lewis.TheCrofootandLewispropertiestogethercompriseapproximately11,829acres.The

Crofootpropertycoversapproximately3,636acresandisvirtuallysurroundedbytheLewis

propertyof8,193acres.

VistaexercisedtheiroptiontopurchasetheLewispropertyonDecember13,2005by

purchasingalltheoutstandingsharesofF.W.Lewis,Inc.for$5.1million.Inadditiontothe

LewisportionoftheHycroftmine,F.W.Lewis,Inc.owned52otherpropertiesthatwere

retainedbyVistaandsubsequentlytransferredtoAlliedNevada.F.W.Lewis,Inc.alsohada5%

NSRroyaltyongoldanda7.5%NSRroyaltyonsilverproducedfromtheLewisportionofthe

property.ThereisnolongeranyroyaltyongoldandsilverproducedfromthepreviousLewis

ownership.

InMay,SeptemberandOctoberof2006,VistaGoldlocated717additionalclaimscomprising14,340acresinthenameofHycroftResourceandDevelopmentCorporation.

TheCrofootpropertywasoriginallyheldundertwoleasesandisnowoptionedbyHycroft

ResourcesandDevelopmentInc.(HRDI),subjecttoa4%netprofitsinterestretainedbythe

formerownersforproductionofallmineralsandoresexceptmercuryandsulfur.Thenet

profitsinterestformercuryshallbe7%andCrofootretainsallrightstothesulfurexceptasthat

amountneededtomaintainproductionofotheroresandminerals.In1996,the

lease/purchaseagreementwasamended(4thAmendment)toprovideforminimumadvance

royaltypaymentsof$120,000onJanuary1ofeachyearinwhichminingoccursbothon

patentedandunpatentedminingclaims.Anadditional$120,000isdueiforeproduction

exceeds5.0milliontonsfromtheCrofootpropertyinanycalendaryearonbothpatentedand

unpatentedminingclaims.Alladvanceroyaltypaymentsareavailableascreditagainstthe4%

netprofitsroyalty.Underthe1996amendedagreement,theCrofootroyaltyiscappedat$7.6

millionofwhich$3.8millionisforthepatentedclaimsand$3.8millionisfortheunpatented

claims.Todate,$0.84millionhasbeenpaidtotheCrofootfamilyundertheprovisionsofthe

1996amendedagreement.

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Figure4.3ClaimBoundaries

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Table4.1HycroftLandHoldingsCosts

MonthDue Lessor Type $AmountJanuary Crofoot AdvanceRoyalty $120,000

U.S.BLM,Humboldt&PershingCounties Unpatented ClaimFees $63,992

CommunicationSiteofFlokaPeak Annual Fee $1,809

PotableWaterPermit#Hu086412NCNT

StateDivisionofHealth

AnnualFee $225

BioRemediationCellsPermit#GNV041995

BureauofMiningRegulation

AnnualFee $200

February Permit#11822354Nevada

StateFireMarshal

AnnualFee $150

October

Permit

#03615

Nevada

Board

for

the

Regulation

of

LiquefiedPetroleumGasAnnual

Fee $135

4.4 ENVIRONMENTALLIABILITIES

Goldproductionbeganonthepropertyin1983andcontinuedthrough1985whenStandard

SlagopenedtheLewisMine.TherewasabriefgapinmininguntilHRDIacquiredtheLewis

MineandtheCrofootclaimsandstartedminingin1988.Miningoperationscontinueduntil

1998whenpitdevelopmentwasplacedonstandbyduetolowmetalprices.Theprocess

operationscontinueduntil2004whenthepropertywasplacedoncareandmaintenance.

TheMinesGroupInc.ofReno,Nevadarevisedandupdatedreclamationplansandcost

estimatesfortheHycroftMinein2003.InJanuary2004VistaannouncedthatHycroft

ResourcesandDevelopment,Inc.(HRDI)hadreachedanagreementwithmembercompanies

ofAmericanInternationalGroup,Inc.(AIG)toreplacetheexistingbondatitsHycroftMinewith

anewpackagethatincludesaninsurancecomponentandcoversallexistingreclamation

liabilityatHycroft.Thereclamationplanandbondingincludesallthehistoricminingatthe

Hycroftproperty.Thebondcalledforinitialpaymentof$4.0millionandtwoadditional

paymentsof$1.3millionafter6monthsand11monthsfromtheinitialpayment.Thebonding

instrumentwasacceptedbytheBureauofLandManagement(BLM),andthe

insurance/assurancebondinginstrumentreplacedtheexistingbondmadeupofa$5.1millionnoncashcollateralizedbondfromAmericanHomeAssuranceCompany,lettersofcreditof$1.7

millionposteddirectlywiththeBLMandtheexistingindemnityagreement.

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The2004bondcostestimateswererevisedandincreasedbyHRDIto$7,549,363attheendof

2006andbondamountincreasedtoBLM.

AlliedNevadaGoldcontractedSRKConsultingofRenotoreviewtheHycroftPlanofoperations,

updatethesitedisturbanceusingtheGeographicalInformationSystemprogramsandJuly2007aerialphotograph.Theupdateddisturbanceandproposednewdisturbancewasthenloaded

intotheNevadaStandardizedReclamationCostEstimator(SRCE)version1.1.1,withtheNevada

CostDataFileandHycroftInterimFluidManagementplan.Thenewprojectreclamation

estimatetotals$14,343,100,whichhasbeenapprovedbyboththeNevadaDepartmentof

EnvironmentalProtectionandBureauofLandManagement.Theupdatedfinancialguarantee

hasbeensubmittedtotheBLM.

4.5 PERMITS

HycroftMineoperatesunderpermitauthorizationsfromtheBLM,NevadaDivisionof

EnvironmentalProtection,andtheNevadaBureauofMiningRegulation&Reclamation.Allied

NevadahaspostedabondforitsminingoperationsatHycroft.Alloperatingand

environmentalpermits,approvedbytheBLMandNDEP,areingoodstandingformining

operationsatHycroft.

Table4.2summarizestheoperatingpermits,whileTable4.3showsthemiscellaneouspermits

fortheproperty.

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Table4.2HycroftOperatingPermits

OperatingPermits IssuingAgency Number StatusPlanofOperations&ReclamationPlan

BLM #N2687002P Current

ReclamationSuretyBond AmHomeAssureCo. N64641 CurrentManufactureofHighExplosives

BureauofAlcohol,Tobacco&Firearms

#9NV013205C12087

Current

ClassIIAirQualityPermit NVDivisionofEnvironmental

Protection

BureauofAirQuality

#AP1041

0661.01

Current

WaterPollutionControlCrofootOperation

NVBureauofMiningRegulation&Reclamation

NEV60013 Current

WaterPollutionControlBrimstoneOperation


NEV94114 Current

WaterPollutionControl

ClosureofLewisFacility

NVBureauofMining

Regulation&Reclamation

NEV89017 Current

BioremediationFacilityPermit


#GNV041995 Current

ReclamationPermit NVBureauofMiningRegulation&Reclamation

#0134 Current

StormwaterPollution

NVBureauofWaterPollutionControl

#NV005000610037

Current

ArtificialPondPermit(BrimstoneMine)

NVDeptofWildlife S21090 Current

ArtificialPond

Permit(Crofoot

Mine)

NVDeptofWildlife S23123 Current

CrofootProcessPonds NVDivisionofWaterResources

#J273 Current

CrofootProcessWell#1 NVDivisionofWaterResources

#60230 Current

CrofootProcessWell#2 NVDivisionofWaterResources

#60231 Current

CrofootPotableWell NVDivisionofWaterResources

#49533

HazardousMaterialsStoragePermit

NVStateFireMarshall #11822354 Current

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Table4.3HycroftMiscellaneousPermits

OperatingPermits IssuingAgency Number StatusR/WCommunicationSiteonFlokaPeak

BLM N46292 Current

R/WPotableWaterWell/Pipeline/PowerLine

BLM N46564 Current

R/WProcessWells/Pipeline/PowerLine

BLM N46959 Current

R/WRoad&Waterline(OldMancamptoLewis)

BLM N39119 Current

R/WMabelWellPipeLinetoMancamp

BLM N44999 Current

KammaPeakStation FCC WNER344 Current

SulfurMineStation FCC WNER345 CurrentWinnemuccaMtn.Station FCC WNER346 Current

BaseStation&45MobilUnits FCC WNKK336 Current

Class3LandfillPermit NVBureauofWasteManagement

#SWM10811 Current

PotableWaterPermit NVDivisionofWaterResources

#HU086412NCNT

Current

Propane NVBoardfortheRegulationofLPG

#03615 Current

RegionalGeneralPermit U.S.ArmyCorpsofEngineers

Section404Permit

Current

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5 ACCESS,CLIMATE,LOCALRESOURCES,INFRASTRUCTUREANDPHYSIOGRAPHY

5.1 ACCESS

Hycroftanditsrelatedfacilitiesarelocated54mileswestofWinnemucca,Nevada.Accessto

HycroftMinefromWinnemucca,NevadaisbymeansofStateRoadNo.49(JungoRoad),agoodquality,unpavedroad.AccessisalsopossiblefromImlayandfromLovelockbydirtroads

intersectingInterstate80.ThemajorityoftheminesemployeesliveintheWinnemuccaarea.

Winnemucca(population15,000)isacommercialcommunityonInterstate80,164miles

northeastofReno,Nevada.Thetownisservedbyatranscontinentalrailroadandhasasmall

airport.Thereisaccesstoadequatesuppliesofwaterandpower.

5.2 CLIMATE

Theclimateoftheregionisarid,withprecipitationaveraging7.6inchesperyear.Themajority

oftheprecipitationoccursinthewinterandspringmonthsandagaininOctober.

Temperaturesduringthesummeraregenerallyinthe50sFatnightandnear90Fandabove

duringthedays.Wintertemperaturesareusuallyinthe20sFatnightandinthe40sFduring

theday.Thereisstrongsurfaceheatingduringthedayandrapidnighttimecoolingbecauseof

thedryair,resultinginwidedailyrangesintemperatures.Theaveragerangebetweenthe

highestandlowestdailytemperaturesisabout30to35F.Dailyrangesintemperaturesare

greaterinsummerthanthewinter.

Windsaregenerallylight.Dustorsandstormsoccuroccasionally,particularlyduringthespring.

Themineisgenerallynotknowntohavemajordelaysinproductionduetoinclementweather.

5.3 LOCALRESOURCES

AND

INFRASTRUCTURE

ThemineissituatedontheeasternedgeoftheBlackRockDesertandhasalkalitolerantlow

shrubvegetation.

WaterrightsaslistedintheProcessManagementPlanareshowninTable5.1.TheNearandFar

ProcesswellsandtheCrofootpotablewellarethemainsourcesofwaterfortheminesite.

Theminesitehasatruckshop,oreprocessingfacilities,anadministrationbuildingaswellas

otherservicerelatedstructures.Electricityisfurnishedfromnearbypowerlinesandthereisa

telephonesystem.

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Table5.1HycroftWaterWellsandPermittedYearlyConsumption

Permit#

WellName

GallonsperWell

TotalCombined

Gallons

60230 NearProcess 471,903,000 1,076,502,000

60231 FarProcess 471,903,000

49533 CrofootPotable 4,831,000 47423 LewisCamp 57,970,000

42675 MabelCrofoot 59,095,000

46794 GrableCamp 10,800,000

60230 NearProcess 471,903,000

5.4 PHYSIOGRAPHY

ThemineissituatedontheeasternedgeoftheBlackRockDesertandonthewesternflankof

theKammaMountainsbetweenWinnemuccaandGerlach,Nevada.

TheBlackRockDesertisa400squaremile,thoroughlyflat,prehistoriclakebed,completely

devoidofanyvegetationoranimalhabitat.Itsnamecomesfromalarge,prominentdarkrock

formationlocatedatthenorthendofthedesert.Duringthesummer,thelakebedisprimarilya

hardpanalkalineplaya.Duringthewinter,itbecomesatemporarylake.

Therearenostreams,rivers,ormajorlakesinthegeneralarea.Elevationsrangefrom4,500to

5,500feetabovesealevel.

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6 HISTORY

6.1 PROPERTYHISTORY

OnesmallandtwolargeopenpitoperationscomprisetheHycroftMine.Theminewas

formallyknownastheCrofootLewisopenpitmine.Miningbeganin1983withasmallheapleachoperationknownastheLewismine.Lewismineproductionwasfollowedbyproduction

fromtheCrofootpropertyintheBay,SouthCentral,Boneyard,GapandCut4Pitsalongthe

CentralFault.ThenorthendoftheBrimstonePitcontinueduntilitwasplacedonacareand

maintenanceprograminDecember1998duetolowgoldpricesbelow$300perounceofgold.

TheLewisminewasacquiredbyVistainearly1987fromF.W.Lewis,Inc.andtheCrofootmine

wasacquiredbyVistainApril1988.TheleaseholdinterestintheLewispropertywas

purchasedbyVistaonDecember13,2005inconsiderationofthepaymentof$5.1millionand

theeliminationofthe5%NSRroyaltyongoldand7.5%NSRroyaltyonsilverproducedfromthe

property.TheHycroftMineproducedoveronemillionouncesofgoldfromthe

commencementofminingoperationsin1987,untiltheoperationsweresuspended.Gold

productionfromtheleachingandrinsingoftheheapleachpadscontinuedin2000through

2005andthenwasplacedoncareandmaintenance.

InMay2007AlliedNevadaacquiredtheNevadabasedholdingsofVista.TheHycroftMinewas

includedaspartofthetransferofownership,allowingAlliedNevadatoexplore,expandand

developtheresourcesatHycroft.AlliedNevadadeterminedin2008thattherewasawell

definedoxideandsulfideresourceoutsideofBrimstoneandBoneyardbasedonananalysisof

allknowndrillingattheminesite.AlliedNevadahasalsopursuedasuccessfulcampaignof

deepdrillingthathasidentifiedalargemineralizationsystembelowtheBrimstoneandCut5

deposits.

TheearliestrecordedminingintheSulfurdistrictbeganinthelate1800sfollowingthe

discoveryofsignificantnativesulfurdeposits(CouchandCarpenter1943,Willden1964).

Miningofnativesulfurwassporadicduringthe1900s,withthelastsignificantepisodeof

miningoccurringinthe1950s.Basedonhistoricalreports,atotalofover181,488tonsof

sulfurore,gradingapproximately2035%sulfurwasminedandmilled(Mclean1991).High

gradesilvermineralization,consistingofnearlypureseamsofcerargyrite(AgCl)plusalunite,

wasdiscoveredin1908atSilverCamelHill(Vandenburg1938).Assaysupto117.9Kg/tonneand12.4g/tonnegoldwerereportedbyJones(1921).Silverproductionceasedby1912witha

totalestimatedproductionof5670kgofsilver.Minorsilvermininghasalsooccurredalongthe

EastFaultintheSnyderaditregion,andsilversamplesashighas66optwerereportedby

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