### July 20, 2015

Exemption No. 12090 Regulatory Docket No. FAA

– 2015

– 0566

Mr. Bri an Zamudio Director of Operations Persistence Mining Inc. 5666 La Jolla Boulevard Unit 314 La Jolla, CA 92037
Dear Mr. Zamudio : This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends. By letter dated March 3, 2015 , you petitioned the Federal Aviation Administration (FAA) on behalf of Persistence Mining Inc. ( hereinafter petitioner or operator ) for an exemption

. The exemption would all ow the petitioner to operate an unmanned ai rcraft system (UAS) to conduct a e r i al mining and geological surveys

. See Appendix A for the petition submitted to the FAA des cribing t he proposed operations and the regulations that the petitioner seeks an exemption

. The FAA has determined that good cause exists for not publishing a summary of the petition in the Federal Register because the requested exemption would not set a precedent , and any delay in acting on this petition would be detrimental to the petitioner

. Airworthiness Certification
The UAS proposed by the petitioner is a n ARMDS

. In accordance with the statutory criteria provided in Section 333 of P ublic Law 112

− 95 in reference to 49 U

. S

. C

. § 44704, and in consideration of the size, weight, speed, and limited operating area associated with the aircraft and its operation, the Secretary of Transportation

### 2
has determined that this aircraft meets the conditions of Section 333. Therefore, the FAA finds that relief from 14 CFR part 21 , C ertification procedures for products and parts, Subpart H

— Airworthiness Certificates , and any associated noise certification and testing requirements of part 36, is not necessary.
The Basis for Our Decision You have requested to use a UAS for aerial data collection 1



### . The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petition. In Grants of Exemption No s
. 11062 to Astraeus Aerial ( see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. ( see Docket No. FAA

− 2014

− 0507), 11112 to VDOS Global, LLC ( see Docket No. FAA−2014−0382), and 11213 to Aeryon Lab s , Inc. ( see Docket No. FAA−2014−0642), the FAA found that the enhanced safety ac hieved using an unmanned aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA go od cause to find that the UAS operation enabled by this exemption is in the public interest. Having reviewed your reasons for requesting an exemption, I find that

—

• They are similar in all material respects to relief previously requested in Grant of Exemp tion Nos. 11062, 11109, 11112, and 11213 ;
• The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, and 11213 also apply to the situation you present; and

• A grant of exemption is in the public interest.
Our Decision In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, Persistence Mining Inc. is granted an exemption from 14 CFR §§ 61.23(a) and ( c ), 61.101(e)(4 ) and (5), 61.113(a), 61.315(a) , 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petiti oner to operate a UAS to perform aerial data collection

. This exemption is subject to the conditions and limitations listed below.
Conditions and Limitations

In this grant of exemption, Persistence Mining Inc. is hereafter referred to as the operator.

1 Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UA. Examples include imagery (photography, video, infrared, etc.), electronic measurement (precision surveying, RF analysis, etc.), chemical measurement (part iculate measurement, etc.), or any other gathering of data by instruments aboard the UA.

### 3

Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption.
1. Operations authorized by this grant of exemption are limited to the ARMDS when weighing l ess than 55 pounds including payload. Proposed operations of any other aircraft will require a new petition or a petition to amend this exemption

. 2. Operations for the purpose of closed

- set motion picture and television filming are not permitted.
3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds gre ater than the maximum UA operating airspeed recommended by the aircraft manufacturer.
4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL.
5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate or U.S. driver’s license.

6. All operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maint ains VLOS capability. The VO and PIC must be able to communicate verbally at all times ; e lectronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation fo r the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.
7. This exemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in thi s grant of exemption, are hereinafter referred to as the operating documents. The operating documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limita tions in this exemption and the procedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The ope rator may update or revise its operating documents. It is the operator’s responsibility to track such revisions and present updated and revised

### 4 documents to the Administrator or any law enforcement official upon request. The operator must also present up dated and revised documents if it petitions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. The FA A’s UAS Integration Office (AFS− 80) may be contacted if questions arise regarding updates or revisions to the operating documents.
8. Any UAS that has undergone maintenance or alterations that affect the UAS op eration or flight characteristics, e.g. , replacement of a flight critical component, must undergo a functional test flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and mu st remain at least 500 feet from other people. The functional test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property.
9. The operator is responsible for maintaining and inspecting the UAS to ensure that it i s in a condition for safe operation.
10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g. , inoperable comp onents, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight.
11. The operator must follow the UAS manufacturer’s maintenance, overhaul, replacement, inspection, and life limit requirements for the aircraft and aircraft components.
12. Each UAS operated under this exemption must comply with all manufacturer safety bulletins.
13. Under this grant of exemption, a PIC must hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license issued by a state, the District of Col u mbia, Puerto Rico, a territory, a possession, or the Federal G overnment. The PIC must also meet the flight revi ew requirements specified in 14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.
14. The operator may not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and main taining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with

### 5
14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs (trai ni ng, proficiency, and experience

- building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operat ions may only be conducted during dedicated training sessions. During traini ng, proficiency, and experience

- building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119.
15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual f light rules (SVFR) are not authorized.
16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport sym bo l as denoted on the current FAA

- published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreement with the airport management mus t be made available to the Administrator or any law enforcement official upon request.
17. The UA may not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.
18. If the UAS loses communications or loses its GPS sign al, the UA must return to a pre
- determined location within the pr ivate or controlled

- access property.
19. The PIC must abort the flight in the event of unpredicted obstacles or emergencies.
20. The PIC is prohibi ted from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the intended operation and to operate after that for at least 5 minutes or with the reserve power recommended by the manufacturer if greater.
21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be cond ucted in accordance with an ATO

- issued COA. The exemption holder may apply for a new or amended COA if it intends to condu ct operations that cannot be conducted under the terms of the attached COA

. 22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N− Number) markings in accordance with 14 CFR part 45, Subpart C. Markings must be as large as practicable.

### 6
23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request.
24. The UA must remain clear a nd give way to all manned aviation operations and activities at all times.
25. The UAS may not be operated by the PIC from any moving device or vehicle.
26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, v ehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protectio n. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons ; and b. The owner/controller of any vessels, vehicles or structures has granted permission for operating closer to those objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard. The PIC, VO, operator t rainees or essential persons are not considered nonparticipating persons under this exemption.
27. All operations shall be conducted over private or control led

- access property with permission from the property owner/controller or authorized representative. P ermission from property owner/controller or authorized representative will be obtained for each flight to be conducted.
28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported to the FA A's UAS Integration Office (AFS− 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov

. If this exemption permits operations for the purpose of closed

- set motion picture and television filming and production, the following additional conditions and limitations apply.
29. The operator must have a motion picture and television operations manual (MPTOM) as documented in this grant of exemption.

### 7
30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards District Office (FSDO) with jurisdiction over the a rea of proposed filming. The 3

- day notification may be waived with the concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights; b. Name and phone number of the operator for the UAS aerial filming conducted under this grant of exemption;
c. Name and phone number of th e person responsible for the on

- scene operation of the UAS; d. Make, model, and serial or N− Number of UAS to be used;
e. Name and certificate number of UAS PICs invol ved in the aerial filming; f. A statement that the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request ; g. Signature of exemption holder or representative; and h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes essential to accomplish the operati on.
31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary for the filming production, as specified in the exemption holder’s MPTOM. Unless otherwise specified in this grant of exemption , the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 CFR including, but not limited to, parts 45, 47, 61, and 91.

### 8 This exemption terminates on July 31, 2017 , unless sooner superseded or rescinded. Sincerely,
/ s/ John S. Duncan Director, Flight Standards Service

Enclosures

### 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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. ARMDS Flight Manual

2 

### 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

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. ARMDS Flight Manual

3 1. Mission

1.1. Objective: To successfully complete areal mining and geological surveys using an unmanned 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 mining 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: ARMDS

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 mining areas in North America, keep our highways clear and safe; and provide volumetric analysis for open pit mines.
2.5. The ARMDS can carry payloads 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 . What 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 impact of the wind is at the altitude the system is flying. The end result is a system capable of gathering high quality aerial intelligence at much higher wind thresholds.

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. 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 easy 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 employs 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 map to create a preplanned flight plan. In semi

- autonomous mode, the operator clicks on the map and the ARMDS automatically flies to the point on the map where the operator is pointing. Pre

- mission 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 system 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 dimensions 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 made or recalled with no internet connection required.

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5 2.10. ARMDS Operating Handbook

- System User Guide is carried with the UAV in a carrying case for easy reference.
2.11. Physical Characteristics
2.11.1. 82” length, 20” height
2.11.2. Measurements

– Wingspan of 7.5 ft.
2.11.3. Weight (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 polymer 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. Weather

2.14.1.1. Winds 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 emperature

- : - 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.

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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 motor 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 make flying 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

. Any component failure detectable by the system 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 Systems

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

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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, telemetry, 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. Frequency Allocations

- 915 MHz, 2.4 GHz, 5.8 GHz
3.7. Flight termination link

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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 system.
3.8. Takeoff 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. Waypoints 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 malfunction is likely to result in degraded performance rather than leading to a catastrophic failu re.



### 4. Emergency Procedures and System 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.

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. ARMDS Flight Manual

9 4.3. Motor Failure

– The UA V flight performance will degrade significantly if one or more

motors 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 UA V 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 unmanned 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 currency.
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

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. 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 mission

. 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

- mission 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. While 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.

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11 7.5. Stop Work Authority. Any Persistence Mining p ersonnel can, at any time , halt an operation i n the n ame 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 oper ation 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 damage or injury to persons or property.
7.6.1. 2 The PIC shall be designated for every flight and operations members must 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

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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
times.
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 sma ll volume of air traffic in the survey regions
due to the remote locations. All air traffic in the area is almost c ompletely 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 Emerge ncy return

- to

- base

– The system will be pre

- programmed with an emergency
return

- to home waypoint. 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 monitoring 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

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13 9.5 Weather 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 Weather minimum 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:

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14 12.2 Launch time
12.3 Recovery time
12.4 Mission duration
12.5 Weather at launch
12.5.1 . Ceilings
12.5.2 Winds
12.5.3 Temperature
12.6 Payload used
12.7. Ba ttery used
12.8 Operators
12.9 Mission summary 

### 13. Emergency Management

13.1 Emergencies will be handled in accordance with Shell Platform Emergency Procedures
13.2 Emergency Contact Inf ormation
13.2.1 Persistence Mining Oper ations 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 emergency 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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16 

# EXHIBIT A

- EXEMPTION / WAIVER REQUESTS Regulations Waiver Request and Procedures for ARMDS

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
number 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 verifying 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) Emergency 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

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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 manual 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 manufacturer. Maintenance will be documented on flight manual 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 manual which will be in possession of operators at all times. 91.409(a)(1) Inspections, annual, within preceding 12
months 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 manual 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 manual 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 Administrator may issue a certificate of waiver authorizing the operation of aircraft in deviation from any rule listed in this subpart if the
administrator 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 f t

. 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

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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

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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 manual 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 manual 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

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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

. With 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 numerous objectives including, but not limited to:
1. Geo

- mapping f or exploration s
2. Emergency Response Protocols for natural disasters
3. Fluvial Studies
4. Hyper spectral imaging maps The first phase of the development project will be to decrease the amount 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.

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24 Through this program Persistence Mining will establish an aerial surveying program for geo - mapping, environmental services support as well as to develop safety procedures and best practices for such operation s.

We are 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

. Will 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