THE GRANT HARTFORD CORPORATION
619 S.W. Higgins Ave. Suite O, Mssoula, Montana 59803


December 12, 2007


Laura Plute

University of Montana

Missula, MT 59812


 


Dear Ms. Plute;


The Grant Hartford Corporation is looking forward to working with members of the University of Montana in order to input and combine various GIS data, both current and historic, to create a 3 dimensional model of geology for the Garnet mining region. The Company is prepared to offer a grant to the University of Montana for the pursuit of this program.


Below is an outline and budget for the proposed program:


Work/Task Outline


I. Data Conversion


    A. Convert paper maps to geographically-referenced digital format.


     1. Scan maps in to .tiff format using large-scale 54" scanner at
 University of Montana's Mansfield Library

          a. Quantity of maps is unknown but consulting geologist Tom Peters
 estimates less than 100

          b. Interpreted cross-sections by Mann and Reichel will be
 included in digitization

          c. Maps to be digitized include authors Joe Irving, J.T. Pardee,
 Reichel, Anaconda Mining, Jim Sears, and Layaka Mann


     2. Using ESRI ArcGIS, georeference images in to Montana State Plane
 projection

          a. Reference surveyed markers and points collected by WGM Group,
 also using State of Montana
      cadastral data and/or BLM and other
 publicly-available data

          b. Also utilize recent data/maps already georeferenced by WGM Group


     3. Deliver georeferenced data/images to Grant Hartford Company on
 CD/DVDs





THE GRANT HARTFORD CORPORATION
619 S.W. Higgins Ave. Suite O, Mssoula, Montana 59803


   B. Attempt to convert older digital data from Pegasus Gold Corporation
 in to new digital format for future use in modeling software


   1. Transfer borehole and other data from older 5.25-inch floppy disks
 in to modern computers and on to CDs for archiving

      a. Condition of disks, quantity of data, resolution/quality of
 data, and format are all unknown;
       assuming some form of database


   2. Evaluate format of data and attempt to convert to modern format if
 necessary

      a. Load in to modern Microsoft Access or Microsoft SQLServer
 database (if feasible) for analysis/querying
       using ArcGIS and/or database
 (SQL) queries


   3. Evaluate subsurface and block-modeling software (including
 Geosoft, Vulcan, Minesight, SURPAC, ArcGIS & extensions, etc) to determine
 suitability for subsequent subsurface modeling and quantifying ore
 resources


Budget


         Uncertainty about the volume of maps, scanning speed and quality,
 positional accuracy of surveyors' initial data (a vital technical reference), and the quantity and digital format of the Pegasus Gold Company subsurface data, combined with the investigators' prior experiences on similar projects, have resulted in higher estimates of work load than would have otherwise been considered.


SCANNING


SCANNING

  ~2 scans/hour at highest resolution X 100 individual maps to scan =

 50 hours

 $16/hour Mansfield Library rate for use of scanner X 50 hours =  $800

 $22/hour Warren Roe labor rate X 50 hours = $1100

--------------------

 $1900.00 for approximately 50 hours of labor plus expenses

GEOREFERENCING
   
   1 map/hour X 100 maps = 100 hours

 $22/hour Warren Roe labor rate X 50 hours = $1100

 $50/hour Aaron Deskins labor rate X 50 hours = $2500

---------------------

 $3600.00 for approximately 100 hours of labor





THE GRANT HARTFORD CORPORATION
619 S.W. Higgins Ave. Suite O, Mssoula, Montana 59803


PEGASUS DATA TRANSFER, ARCHIVING, AND MODERNIZATION

   25 hours

 $22/hour Warren Roe labor rate X 32 hours = $704

 $50/hour Aaron Deskins labor rate X 32 hours = $1600

--------------------

 $2304.00 for approximately 64 hours of labor


OTHER

      6 hours travel time and/or meetings at $22/hour Warren Roe labor
 rate = $132

      6 hours travel time and/or meetings at $50/hour Aaron Deskins labor
 rate = $300

      4 X 100-mile round-trips to office in Drummond X $0.485/mile = $194

      5 X 6-mile round-trips to WGM Group office in Missoula X $0.485/mile
 = $14.55

      misc supplies = $100

----------------

 $740.55 for approximately 12 hours of labor plus expenses



---------------

---------------

SALARY

   $3036 Warren Roe salary + 1% fringe = $3066.36

    $4400 Aaron Deskins salary + 27.5% fringe + $307 pro-rated health
 insurance = $5917.00

---------------

 $8983.36


---------------

---------------

SUBTOTAL

   $8983.36 salary + fringe

   $900.00 direct costs

   $208.55 travel

---------------

 $10091.91 for 226 hours and deliverables


---------------

---------------

GRAND TOTAL

   $10091.91 + 41.5% University cost

---------------

 $14280.05




THE GRANT HARTFORD CORPORATION
619 S.W. Higgins Ave. Suite O, Mssoula, Montana 59803



The Grant Hartford is ready to begin this program with Jim Sears, Aaron Deskins and Warren Roe based on the budget above. Please find enclosed a check for $14, 280.05 for this program.


The Company expects this program to be the first step in a longer relationship with the University involving geological research, mapping, drilling and exploration and expects each step to give students and faculty an opportunity to work with an active mining and exploration company.


Best regards





Eric Sauve, President & CEO

The Grant Hartford Corporation