### Persistence Mining Inc . ARMDS Flight Manual

1 

# UAS FAR 333 Exemption Package

Rotor Small Unmanned Air Vehicle Geological Mapping project in

Nevada, New Mexico, U tah and California Prepared by: Brian Zamudio Director , Persistence Mi ning Inc
. Date: March 3 , 2015

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### TABLE OF CONTENTS MISSION 3 VEHICLE DESCRIPTION : Aerial Remote Mineral Detection System 3 (ARMDS) COMMAND AND CONTROL SYSTEMS 6 EMERGENCY PROCEDURES AND SYSTEM FAILURES 8 SECURITY 8 OPERATIONS 8 SAFETY 9 MISSION PARAMETER S 10 PRE - FLIGHT 11 LAUNCH 12 RECOVERY 12 POST - MISSION REPORTING 12 EMERGENCY MANAGEMENT 13
EXHIBIT A - EXEMPTION / WAIVER REQUESTS 14

### Persistence Mining Inc . ARMDS Flight Manual

3 **1. Mission**  1.1. Objective: To successfully complete areal mi ning and geological surveys using an unm anned aircraft equipped with spectral imaging sensors or LIDAR. 1.2. Description: Persistence Mining Inc.in full cooperation with the New Mexico Institute of Mining and Technology and the New Mexico Bureau of Geology, w ill use a small unmanned aircraft systems to perform geological surveys. Persistence Mining will perform surveys with qualified manufacturer trained personnel who have current commercial pilot certificates. The remote locations of these inspections, primar ily m ining site, outside of inhabited areas and cities, in geologically important areas creates an ideal use for a remote unmanned aerial surveys such technology. By conducting these inspections in adherence with all Federal Aviation Regulations that are a pplicable to a small unmanned systems, our team hopes to produce a real world example of how UAV’s can increase knowledge, productivity and generate beneficial data to help in both geological research for education, safety, and commercial industries. 

### 2. **Vehic le Description: A**  **RMDS** 2.1. CIT Engineering Overview: CIT Engineering, Inc. is a California based company located in Carlsbad; CA. CIT is focused on providing unmanned aerial system and robots for specific client needs. 2.2. CIT Engineering has built a drone for Persistence Mining Inc. as an amateur aircraft. 2.3. ARMDS Overview: 2.4. M ap remote communities in mi ning areas in North Am erica, keep our highways clear and safe; and provide volumetric analysis for open pit mines. 2.5. The ARMDS can carry pa yl oads up to 9 Kg ( 20 lbs. ) . The ARMDS flies with a ma ximum wind threshold of 21 NM for sustained win ds and wind gusts up to 35 NM
. Wh at is unique about the ARMDS is that t he system automatically compensates for wind versus relying on the operator’s ‘sense of feel’ for what the im pact of the wind is at the altitude the system is fly ing. The end result is a system capable of gathering high quality aerial intelligence at mu ch higher wind thresholds.

### Persistence Mining Inc . ARMDS Flight Manual

4 2.6. The ARMDS has an operational range of up to 21 NM (25 Miles ). All flight operation s are GPS controlled making the system extremely eas y to navigate. At any point if the operator is not explicitly commanding the system to move, the system automatically holds its GPS position (i.e. GPS hold for reliable location hover). Camera positioning is also GPS controlled allowing for the most sophisticated camera targeting available. The flight control system em ploys not only GPS positioning but a variety of sensors including sonar, barometric pressure, temperature, wind speed and others to ensure t he most stability of any system in its class - regardless of the wind. 2.7. The ARMDS can be operated in both semi and fully automatic flight modes. Creating preplanned gridline flight paths to fly in autonomous mode is as simple as clicking on the ma p to create a preplanned flight plan. In semi - autonomous mode, the operator clicks on the ma p and the ARMDS automatically flies to the point on the map where the operator is pointing. Pre - mi ssion waypoints, Landing zone points and flight area dimensions can all be ent ered during preflight ensuring the ARMDS operates solely within specified parameters 2.8. The ARMDS includes many advanced safety features that make it safe near roadways and in urban and rural areas. Built - in intelligent fault handling allows the ARMDS to dete ct a system fault while in the air, and to automatically fly back to its take - off location and land. Faults which can be detected by internal sensors include: loss of communication RFP: Unmanned Aircraft Vehicle (UAV) for “at height” Inspection to the comm and station; exceeding pre - set wind thresholds exceeded; and low battery levels. In addition, the operator can create no fly zones or maximum flight ranges and altitudes so the s ystem cannot enter areas deemed unsafe, populated or unnecessary exploration. Automated flight checks ensure the system is operating at peak performance prior to take off. 2.9. The ARMDS can be operated entirely by a touch - screen and a GPS map based interface. Translated: the operator only needs to program the system where to go, the specific dim ensions of the gridlines and then system automatically plots the course within the parameters to gather necessary research data. Maps can be saved and flight plans can be ma de or recalled with no internet connection required.

### Persistence Mining Inc . ARMDS Flight Manual

5 2.10. ARMDS Operating Handbook - System User Guide is carried with the UAV in a carrying case for easy reference. 2.11. Ph ys ical Characteristics 2.11.1. 82” length, 20” height 2.11.2. Measurements – Wi ngspan of 7.5 ft. 2.11.3. We ight (without payload) – 25 lbs. (11.3 KG) 2.11.4. Fuel – 2gal lon - 2 - stroke gasoline 2.11.5. Landing style/type – Autonomous vertical lift 2.12. Propulsion System 2.12.1. Engines – The ARMDS is powered by Bergen/Zenoah 52cc 2 - stroke 2.12.2. Batteries - 2 - cell lithium poly me r 5000mAh 2.13. Performance Characteristics 2.13.1. Performance Charts - Available upon request 2.13.2. Maximum Altitude – 40 ft. AGL 2.13.3. Maximum Endurance – 6 - 8 Hours 2.13.4. Maximum Range – 21 NM ( 25 miles ) 2.14. We ather

2.14.1.1. Wi nds Maximum – 21 NM ( 25 MPH sustained ) , 35NMH ( 40 MPH) gusts 2.14.1.2. Minimum ceiling: 1 2.14.1.3. Maximum ceiling 400 feet 2.14.1.4. Minimum visibility: 3 SM 2.14.1.5. Icing conditions – no icing conditions 2.14.1.6. Precipitation – no visible moisture 2.14.1.7. Operating t em perature - : - 22 °F - 122°F 2.15. Maintenance R equirements : t he UAV is nearly maintenance free, it performs automatic p re - flight checks and the failure of any check will prevent take - off. Checks which cannot be done by the system will be performed by a qualified person prior to each flight.

### Persistence Mining Inc . ARMDS Flight Manual

6 2.14.1 Pre - flight checklist includes: 2.14.1.1 Visual inspection of the airframe 2.14.1.2 Visual inspections of rotor integrity 2.14.1.3 Check charge of all batteries (aerial vehicle, command station, radio

repeater station) 2.15 Reliability: The system is designed for maximum reliability to maintain performance over its life. The only components experience routine wear are rotors, b atteries, motors, and l egs. Battery and motor conditions are monitored by the system with deviations reported to the operator. 2.15.1 Contact with other objects during flight may cause other components, particularly rotors, and mo tor arms, to become damaged. Damaged components a re likely to be detected during the full visual inspection of the airframe performed before each flight. Structural damage affecting flight characteristics will be detected by on - board sensors. 2.15.2 The UAV system detects numerous conditions which may ma ke fly ing unsafe, such as reduced GPS accuracy, magnetic anomalies, low battery charge, battery cell imbalances, and temperature fluctuations. Automatic pre - flight checks prevent the UAV from taking off if such conditions are present; or, if the conditio n is detected during flight, the system will trigger a Fatal Conditioned Response. 2.16. Fault Tolerance: The key feature of the UAV fault tolerance is its mech anical simplicity. It uses . An y com ponent failure detectable by the s ys tem will be reported t o the control station and will cause the UAV to perform a Fatal Condition Response (FCR) or Non Fatal Conditioned Response (NFCR), depending on the type of failure. 

### 3. **Command and Control Sy stems**  3.1. The ARMDS Ground Controls allow the operator to control the aircraft and its payload sensors. The touch screen control allows for quick navigation and data entry while the

### Persistence Mining Inc . ARMDS Flight Manual

7 display screen provides all essential flight data to the operator. Telemetry data is transmitted to the command station at a minimum rate of once per second. 3.2. Displayed on GCS: 3.2.1. UAV Position 3.2.2. Navigation Route 3.2.3. UAV Tail Number 3.2.4. UAV Position 3.2.5. UAV Altitude 3.2.6. UAV Heading 3.2.7. North Seeking Arrow 3.2.8. Range to Target 3.2.9. Calculated target position 3.2.10. Date/time 3.2.11. Sensor heading and orientation relative to UAV 3.3. On - board Flight Instruments 3.3.1. The UAV is equipped with an Inertial Navigation System (3 - axis gyroscope, 3 - axis magnetometer, GPS receiver, and static pressure sensor) and a sonar sensor for precision AGL altitude measu rement. 3.4. On – board computer systems 3.4.1. The UAV is equipped on - board computer systems to monitor (sensors, battery, etc.), control (speeds, altitude, position, etc.), and communicate (control, telem etry, etc.). 3.5. On - board guidance and navigation equipment 3.5.1. The UAV can operate autonomously ; it does not require any input from ground based equipment after it‘s preflight programming. 3.6. Frequenc y Allocations - 915 MHz, 2.4 GHz, 5.8 GHz 3.7. Flight termination link

### Persistence Mining Inc . ARMDS Flight Manual

8 3.7.1. T o prevent a “fly away” or other potentially dangerous situation a flight termination link is available to the operator from the ground control s ystem . 3.8. Ta keoff and Landing – The ARMDS has vertical lift autonomous launch and recovery. A Landing Zone “LZ” is designated by the operators and identified in the GCS software. For launch procedures the aircraft will takeoff and hover 3 meters directly above the LZ and hold until further operator instruction is given. The aircraft will automatically adjust for wind during this period. 3.9. Navigation System 3.9.1. Specific maps can be downloaded to the display screen (such as air sectional and geographic maps) which is overlaid with GPS positional data. Wa ypoints can be created before and during flight operation creating specific locations and sequences for the aircraft 3.10. Redundant System s 3.10.1. The UAV combines the input from a multitude of sensors. Even though the data from all sensors is required for optimal system performance, a single sensor ma lf unction is likely to result in degraded performance rather than leading to a catastrophic failu re. 

### 4. **Emergency**

**Procedures and Sy stem Failures**  4.1. Failure Handling – The UA V has extensive failure detection and handling capabilities. All failures are deeded to be either fatal or non - fatal. Failures classified as fatal result in a Fatal Condition Response (FCR); and failures classified as non - fatal result in a Non - Fatal Condition Response (NFCR). 4.2. Sensor Failure – Failure of on - board flight instruments/sensors will degrade the UAS performance and will result in either a FCR or a NFCR, dep ending on their severity. If the UA V becomes unstable due to senso r failure, it will stop all four motors and free fall to avoid a fly away condition.

### Persistence Mining Inc . ARMDS Flight Manual

9 4.3. Motor Failure – The UAV flight performance will degrade significantly if one or more mo tors fail
. 4.4. Airframe Failure – If airframe is damaged in ways that impacts flight characteristics, the UA V will behave similar to if an on - board flight instrument failed. 4.5. Navigation System Failure – In a navigation system failure, degraded GP S will result in FCR or NFCR‘s depending on failures. 4.6. Power Failure – A complete battery failure which results in power loss to the UAV will result in degraded flight performance. 4.7
. Low Battery Condition – Operator will be alerted of a l ow battery condition and will land the aircraft as soon as able. 4.8 Low Battery Condition – Operator will be alerted of a low battery conditio n and will land the aircraft as soon as able. 4.9. Line - of- Sight Loss – All flight operations will b e conducted with the UAV within visual sight of a spotter . If the spotters view becomes obstructed and line - of- sight is lost , the pilot may instruct the UAV to hover in place until line - of- sight is reestablished, to return to the take - off position, or to l and at the current position. 

### 5. Security 5.1. The system and communication links are encrypted by the manufacturer ’ s proprietary software. 

### 6. Opera**ti ons**  6.1. Crew Requirements – Persistence Mining Inc. has named two operators to this inspection program. Both are commercially rated pilots and have years of experience in multiple unm anned systems. Operators will be flight current for both manned and unmanned standards and as well hold a current Class II F AA Medical Certificate along with appropriate flight currenc y. 6.2. Operator roles: 6.2.1 Operator/Pilot in Command (PIC) – For each operation a PIC will be designated, this person will be directly responsible for the operation of the UAS and the

### Persistence Mining Inc . ARMDS Flight Manual

10 s afety of the operation. It will be the responsibility of the PIC to ensure the operation complies with applicable regulations and/or ensures professional “best practice” to all applicable regulations. 6.2.2 Spotter

/back - up Pilot – The Spotter will be responsible to visually maintain contact with the UAV while s can ning the area for undetected aircraft or obstacles. The Observer will also handle the communications between the PIC, external crew, air safety officer and the platform safety officer . The observer will also be a certified and a current system operator and will assume control of the UAS should the PIC become incapacitated. 6.2.3 Operator profiles: 6.2.3.1 Maintenance: Operators will hold appropriate maintenance certification for the system provided by the UAV servicer and/or manufacturer. 

### 7. Safety 7.1. Safety is priority for every mi ssion
. T he location and details of the task demand the safe o perations. Several layers of safety management will be implemented for this operation: 7.2. All flight operations must meet standards written in the Pre - mi ssion operations plans and r isk m atrixes will be reviewed prior to a ny operation. During operations, Safety Officer(s) will be present along with Persistence Mining personnel who all have “stop work authority” over the operation. 7.3. FAR & ICAO Regulations. This operation will conduct under all applicable FAA and ICAO regulations. Wh ile the location and scope of this operation provides exemption from many of the regulations , Persistence Mining Inc. Persistence will ensure operations fall under “be st practice” of all appropriate regulations. 7.4. Persistence Mining Standard Operating Procedures. 7.4.1 Persistence Mining Operators will maintain internal company safety practices at all times. These i nternal regulations are in addition to all applicable FAR, ICAO standards.

### Persistence Mining Inc . ARMDS Flight Manual

11 7.5. Stop Wo rkAuthorit y. An y Persistence Mining p ersonnel can, at any time , halt an operation i n the n am e of safety without retribution or concern for their jobs. 7.6. Operating Standards – To assure safe operation within close proximity to roads or possibly inhabited areas the ARMDS will be operated in autonomous mode at all times. Manual operation is only permitted in the case of an emergency procedure as stated in the aircraft operational procedures manual. 7.6.1 Safe Operating Standards 7.6.1.1 Efforts will be in place to ensure that an emergency free fall to the ground will not result to dam age or injury to persons or property. 7.6.1. 2 The PIC shall be designated for every flight and operations members mu st comply with PIC instructions or any person wh om the PIC has authorized to act on behalf of the PIC. 7.6.1.3 Operations will not occur beyond visual line - of- sight (VLOS) and will be within the inspection region of the platform. 7.6.1.4 The UAV will follow the same right - of-way rules as any manned glid er, airplane or helicopter. S ince the UAV will be operating within VLOS they shall give way to manned aircraft at all times. 7.6.1.5 T he operation will take place only under visual flight conditions and all applicable visual flight rules will be followed. 7.7 Site Survey – An on location site survey will be conducted by assigned operators prior to any o peration. Site surveys will be coordinated with all interested parties prior to flight inspection
. 7.7.1 Locations of hazards 7.7.2 Location of Launch/Recovery site 7.7.3 Location of forward observers 

### 8. Mission Parameters 8.1. Dimensions – Persistence Mining operators will act inside the surveyed flight Inspection area. These parameters will be programmed prior to any survey and in accordanc e with

### Persistence Mining Inc . ARMDS Flight Manual

12 specific needs of the s urvey area and needs of the client . This will create a digital flight bo x for the UAS and a grid system w here we can identify the location of the UAS at all tim es. 8.2 Example 8.3 Operating Altitude – Th e UAS will operate at or below 4 00 ft. AGL at all times. 8.4 Lateral Distance – The UAS will stay within 2 miles laterally of the pilot at all times. 8.5 Air Traffic De - confliction – There is a very sm a ll volume of air traffic in the survey regions due to the remote locations. All air traffic in the area is almost c om pletely limited to helicopter traffic coming to and from the production platform. These helicopter flights are scheduled and in constant communication with platform air traffic officer. Inspections will occur in “dead” periods in - between scheduled arrivals and d epartures. Operators will have aviation band radios with communications to the air officer at all times. 8.6 Em erge ncy

return - to - base – The s ys tem will be pre - programmed with an emergency return - to home wa yp oint. Should notice be given by an observer or air traffic offic er the system will at all times be able to return to land within a five minute period. 8.7 Obs ervers – The back - up PIC will act as the observer an d be in communication with the safety personnel and flight o fficer /pilot, as well as aviation frequencies for the platform. 8.8 Communication – The operating personnel will have direct communication links to the observers, safety personnel and mo nitoring geologists. The safety personnel will handle the communications for the flight operations team. The flight officer/ pilot will have an aviation band radio to communicate with any traffic in the area. 

### 9. Pre **- Flight**  9.1 F light Operations Area – Prior to starting operations, the flight team will set up equipment in a fight controls in a stationary area with a distance from the take - off pad of a minimum of 20 meters insuring safety. 9.2 Ground Control System is operational 9.3 Launch/Recovery zone is free and clear of debris 9.4 Launch/Recovery zone is clearly marked for safety

### Persistence Mining Inc . ARMDS Flight Manual

13 9.5 We ather report within 30minutes 9.6 Airspace dimensions loaded into computer 9 .7 Telemetry playback ready 9.8 All operations personnel are briefed to the particulars of the Flight Operations Area ensuring a solitary flight environment for operators 9.9 We ather m inim um for operation – Per best practice standards, operations will take place in VFR conditions; no instrument flight is authorized at any time. 9.10 Pre - Flight Checks – Checklists will be used at all times without exceptions 

### 10. Launch 10.1 Launch operation will take place at pre - determined LZ. The LZ will be clearly marked as such to ensure safety with ground personnel. 10.1. 1 Authority to Launch – The system cannot be launched without: 10.1.2 Approval from Persistence safety officer 10.1. 3 Approval from Observer 10.1.4 After the PIC has received clearance from these sources the PIC will have authority to proceed with the operation. 

### 11. Recovery 11.1 Recovery operation will take place at pre - determined LZ. The LZ will be clearly marked as such to ensure safety with ground personnel. 11.2 Authority to Recover – The system cannot be recovered until it is safe to do so as determined by the Persistence Mining personnel on duty. 11.3 Communication – After recovery operation is complete operators will inform air traffic officer and safety officers that the vehicle is safe on deck. Any notification to the airspace control/change of status to any flight plans will be report at this time. 

### 12. Post **- mission reporting**  12.1 After each operation personnel will create a report summarizin g details and telemetry of the flight. These reports will be made available to FAA personnel upon request and will include:

### Persistence Mining Inc . ARMDS Flight Manual

14 12.2 Launch time 12.3 Recovery time 12.4 Mission duration 12.5 We ather at launch 12.5.1 . Ceilings 12.5.2 Wi nds 12.5.3 Temperature 12.6 Pa yload used 12.7. Ba ttery

used 12.8 Operators 12.9 Mission summary 

### 13. Emergency

**Management** 13.1 Em ergencies will be handled in accordance with Shell Platform Emergency Procedures 13.2 Em ergency Contact Inform ation 13.2.1 Persistence Mining Operations Team – TBA 13.2.2 Local Fire and Medical Dept. – TBA 13.3 Safety Equipment at Operations Site 13.3.1 First Aid Kit 13.3.2 Fire Extinguisher 13.4 Procedure in Event of Incident/Accident 13.4.1 The PIC will take command of the situation until resolved 13.4.2 The PIC will contact the proper em ergency services if required 13.4.3 The UAV will return to land as soon as safely possible
. 13.4.4 The operations team will ensure spectators will remain clear of operations area. 13.4.5 The operations team will shut down all operations gear as required: 13.4.5.1There is no equipment on the ground station that needs to be urgently shut down.

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15 13.4.5.2 The UA

V power should be disconnected as soon as practical, however other actions in this list should be done by level of importance as the situation deems
. 13.4.6 Fi rst Aid will be administered if and as required. 13.4.7 Firefighting will be performed only i f it can be safely performed given the equipment available and ability of the personnel or in the event of a life threatening situation. Otherwise firefighting shall wait for proper emergency services. Fire is considered highly unlikely given the size of t he UAV and the use of electric motors.

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# EXHIBIT A - EXEMPTION / WAIVER REQUESTS **Regulations Waiv er Request and**  **Procedures for A RMDS**  **Regulation Title and Description**  **Safety Equivalent** Note: For exemptions that do not apply as the

operation is outside the US no waiver or exemption is needed per CFR 91.101 Best practices will be applied under ICOA rules when applicable 91.1(b)(2) Civil aircraft manual, carried on aircraft Manual will be carried by operator(s) on ground at control station. 91.9(c) Civil aircraft marking in accordance with

FAR 45 Unmanned system will be marked with serial num ber and non - government marking 91.103(b)(1) Preflight action, use of takeoff and

landing distance data Requires 10 meters by 10 meter platform 91.103(b)(2) Preflight action, use of performance data

if no flight manual is required Flight manual will be maintained by PIC on the ground and performance data will be will be analyzed to enhance future performance 91.105(a)(2) Flight crewmembers at stations, seat

belt fastened There are no seatbelts because there are no passengers or on board pilots 91.109(a) Flight instruction, dual controls required Flight control are on a ground station and will be operated by a certified pilot with a spotter verifyi ng control 91.203(a)(1) Civil aircraft: certifications required

airworthiness certificate on board Appropriate documentation will be available with operations crew on site. 91.203(a)(2) Civil aircraft: certifications required,

registration certificate on board Appropriate documentation will be available with operations crew on site. 91.207(a)(2) Em ergency locator transmitters,

attached to the airplane No ELT is available for an unmanned system this size. All operation will be conducted within line of sight to o perators to ensure no loss of

### Persistence Mining Inc . ARMDS Flight Manual

17 visual contact 91.211(a) Supplemental oxygen for flight crew Not Applicable 91.405(a) Maintenance required, inspection of

aircraft All maintenance of unmanned system will be conducted as specified by the manufacturer. Maintenance will be documented on flight ma nual which will be in possession of operators at all times. 91.405(b) Maintenance required, documentation

and return to service All maintenance of unmanned system will be conducted as specified by the ma nufacturer. Maintenance will be documented on flight ma nual which will be in possession of operators at all times. 91.407(a)(1) Operation after maintenance, return to

service by appropriate person All maintenance of unmanned system will be conducted as specified by the manufacturer. Maintenance will be documented on flight ma nual which will be in possession of operators at all times. 91.409(a)(1) Inspections, annual, within preceding 12

mo nths No flight instruction for hire will be performed 91.409(b) Inspections, 100 hour, if flight instruction

for hire is provided All maintenance of unmanned system will be conducted as specified by the manufacturer. Maintenance will be documented on flight ma nual which will be in possession of operators at all times. 91.417(a) Maintenance records to be maintained

by owner or operator All maintenance of unmanned system will be conducted as specified by the manufacturer.

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18 Maintenance will be documented on flight ma nual which will be in possession of operators at all time s.

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19 

# FAR 91 REGULATIONS WHICH MAY REQUIRE WAIVER Safety Equivalent

NOTE: SUBPART J Waivers Adm inistrator may issue a certificate of waiver

authorizing the operation of aircraft in deviation from any rule listed in this subpart if the adm inistrator finds that the proposed operation can be safely conducted under the terms of the certificate of waiver. 

### 61.113

Private pilot privileges and limitations: Pilot in command We will be using a private pilot for most surveying however an exemption is requested for testing periods when an engineer from our staff will be needed to make necessary adjustments. All flights will 

### be incidental to Persistence Mining Inc.’s business; an d will not carry passengers or property for compensation or hire. 91.107 Use of Safety Belts Aircraft does not carry any passengers or a pilot 91.111 Operating near other aircraft ARMDS will be operated below commercial airs pace in remote areas more than 5 NM from all commercial airfields 91.113 Right - of- way rules: Except Water operations Flight plans will be registered prior to flights and will be below standard flight levels and a maximum of 40 0 feet AGL 91.115 Right - of- way rules: Water operations Flight plans will be registered prior to flights and will be below standard flight levels and a maximum of 40 feet above the ground 91.117 Aircraft Speed Air speeds will be at a rate lower than 50 MPH 91.119 Minimum safe altitudes: General . Al l flights will be between 50 ft. and 400 ft . AGL with an average of 10 0 feet AGL, except during take - off and landing

91.121 Compliance with ATC clearances and instructions IRF clearance will not need to be granted by a tower due to the remote location of the launch sites away from conventional airfields . T here is no station within the area prescribed in this section, the current reported altimeter setting of an appropriate

### Persistence Mining Inc . ARMDS Flight Manual

20 available station . All operations will be

conducted under line of sight rules at or below 400 feet AGL 91.125 ATC light signals There will not be any signals in the launch areas to comply with 91.126 Operating on or in the vicinity of an airport in class G airspace ARMDS will not be operated in class G airspace 91.127 Operating on or in the vicinity of an airport in class E airspace ARMDS will not be operated within class E airspace 91.29 Operations in Class D airspace ARMDS will not be ope rated within class D airspace 91.13 Operations in Class C airspace ARMDS will not be operated within class C airspace 91.131 Operations in Class B airspace ARMDS will not be oper ated within class B airspace 91.133 Restricted and Prohibited areas ARMDS will not be operated in restricted or prohibited airspace 91.135 Operations in Class A airspace ARMDS will no t be operated in class A airspace 91. 137 Temporary Flight Restrictions 1 SM during the day and 3 at night with no clouds

91.153 VFR flight plan: information required 1 SM during the day and 3 at night with no clouds Does not apply because below the 400 foot AGL ceiling , 91.155 VFR weather minimums Below 400 feet

91.157 Special VFR weather minimums 1 SM during the day and 3 at night with no cloud s 91.159 VFR cruising altitude or flight level Between 40Ft. AGL and 400 feet AGL 91.169 IFR flight plan: information required We will file a flight plan prior to flight 91.173 ATC clearance and flight plan required We will file a flight plan prior to fly at low altitudes 91.175 Takeoff and landing under IFR No IRF will be managed by the ground pilot in remote areas 91.177 Minimum altitude for IR operations The drone will be flown at altitudes of 5 0 ft. and 400 ft. AGL The drone will need to stay well below the normal flight altitude for a

### Persistence Mining Inc . ARMDS Flight Manual

21 regular manned aircraft 91.179 IFR cruising altitude or flight level The drone will be flown at altitudes of 5 0 ft. AGL to 400 ft. AGL. The drone will need to stay well below the normal flight altitude for a regular manned aircraft 91.185 IFR operations: two - way radio communication failure The ARMDS is an unmanned vehicle therefore is programmed to return to the launch location in case of communication failure 91.209 Aircraft lights No flights will occur from sunset to sunrise 91.305 Flight test areas Will be conducted in remote areas more than 20 NM from any airports 91.313e Restricted category civil aircraft: Operating

limitations Aircraft will be operat ed within safety guidelines put forth by the supervisor and will not fly directly over any person or people 91.405 (a) Maintenance required, inspection of aircraft All maintenance of unmanned system will be conducted after completion if each flight. Maintenance will be documented on flight ma nual this will be in possession of operators at all times. 

### 91.405 (b) Maintenance required, documentation and

return to service All maintenance of unmanned system will be conducted after completion if each flight. Maintenance will be documented on flight ma nual this will be in possession of operators at all times. 

### 91.407 Operation after maintenance, return to service

by appropriate person. All maintenance of unmanned system will be conducted as specified by the Manufacturer . Maintenance will be documented on flight manual which will be in possession of operators at all times 

### 91.515 Flight Altitude rules Aircraft will only operate with VFR weather minimums 91.7(a). Civil aircraft airworthiness Certificate Persistence seeks the requested r elief because the ARMDS does not require an airworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. Therefore, we will ensure that the ARMDS is in an airworthy condition based upon its compliance with the operating documents prior to every flight, and as stated in the conditions and limitations of our operations manual .

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22

### Persistence Mining Inc . ARMDS Flight Manual

23 Persistence Mining is a small mining company with headquarters in La Jolla CA. Our personnel have experience operating unmanned systems to provide geological and agricultural surveying data to clients
. Wi th our alliance to educators and researchers , the Persistence Mining team w ill be able to assist researching in mapping and discovering various geographical features that will assist in a number of research areas. ARMDS is currently working with a large petroleum company to develop the procedures and safety plans to support remo te sensing operations on production platforms in the Gulf of Mexico. The purpose of this program is to support enhancing incident response times and improve safety of platform insp ections for num erous objectives including, but not limited to: 1. Geo - ma pping for exploration s 2. Em ergency Response Protocols for natural disasters 3. Fluvial Studies 4. Hy per spectral imaging maps The first phase of the development project will be to decrease the am ount of pitch and tilt during flight and turns within a grid pattern 2014 - 15 year. These inspections will occur in after each flight to guarantee advancements in proceeding flights Approximate Location of the areas to be surveyed : 1. Remote areas near Hawthorn, Nevada 2. Remote Areas in Playas New Mexico 3. Other remote mining areas 4. Agricultural areas All operations will be conducted in specified areas with a pre - determined flight plan by personnel who hold current commercial pilot certificates
. These PICs will be trained to the highest level and certified t o operate by the unmanned system manufacturer.

### Persistence Mining Inc . ARMDS Flight Manual

24 Through this program Persistence Mining will establish an aerial surveying program for geo - ma pping, environmental services support as well as to develop safety procedures and best practices for such operation s. Weare requesting exemptions from the Federal Aviation Regulations so this operation can be commercially completed in accordance to all applicable FARs that would pertain to a small unmanned system. It is our team's hope that through exemption from ina pplicable regulations Persistence Mining Inc
. Wi ll be able to provide the United States government and the FAA a source of performance data from the safe and successful conduct of commercial UAS operations. The remote location s of this request provides a unique opportunity to further the process of UAS integration into the NAS with strict safety and access controls already in place for the locations of the inspections.
Brian Zamudio , Director of Operations Persistence Mining In c. 5666 La Jolla Blvd Unit 314, La Jolla, CA 92037 619 - 518 - 6424 Brian@persistence.com