May 3, 2000

Climax Molybdenum Company

Henderson Operations

Operations Description

May 16, 2000

Mine Site with Red and Harrison Mountains

Red Mountain - Mine Harrison Mountain

May 16, 2000

GeologyClassic Climax-type porphyry molybdenum deposit

Host rock is granite/aplite porphyry

474,000 feet of core drilling

Limited accessory mineralization

May 16, 2000

May 16, 2000

Preliminary Lab Layout with Drill Hole

May 16, 2000

Drill Hole in Relation to Proposed UNO Site

May 16, 2000

Drill Hole into Harrison Mountain

• The hole is 2,500 feet in length

• The hole had an inclination of -26 degrees with the top at the 7,500 feet and the bottom at 6,300 feet.

• The hole was drilled at HQ-3 (2.4 inches in dia.) for 1,397 feet and NQ-3 (1.8 inches in dia.) for 1,102 feet.

• Hole deviation was less than 200 feet

• Geological logging is complete

May 16, 2000

Drill Hole into Harrison Mountain (cont.)

• The rock is a rhyolite or aplite porphry

• The rock is very hard with a high percentage of quartz.

• The rock is expected to have a high compressive strength (this will be tested)

• The RQD is quite high, 70 – 100.

• There is no evidence of mineralization

May 16, 2000

Drill Hole into Harrison Mountain (cont.)

• There were only a few small fractured zones, not near the UNO area, and no fault zones

• There is very little water, only about 1.5 gpm.

• Due to the hardness and strength, there is some potential for rockbursting when mining. This potential is no greater than what has been experienced at Henderson in the past.

May 16, 2000

Example of Mineralized Core