Application for a Conditional UsePermit to mine Primary Kaolin

McDuffie County, GA

Kaolin (or China clay) mining is one of Georgia’s Primary industries; representing up to $1 billion per year in revenue in mostly rural communities

Source: Georgia Mining Association

Georgia accounted for 94% of the U.S. production in 2010 with 5.9 million tons; 2.72M tons was exported nationwide and only 310,000 tons was imported.

• Paper coatings- 58%• Refractory products- 12%• Catalysts, fiberglass, paint & rubber- 4% each

Large volumes (82% of Sales)

• Brick, chemicals, fine china, porcelain, pottery, animal feed, sanitary ware, tile, filler & extender for adhesives, cosmetics, fertilizers, pharmaceuticals, and plastics-small % each

Remainder of the market is small but diverse

Source: USGS 2010

Difference between Primary & Secondary kaolin

Predecessor companies did considerable drilling & analysis to find primary kaolin resourcesPurchased the CUP parcels between 2000 and 2006; spent $1.98MDearing Plant constructed in 2009 to produce specialty kaolin productsIn market development phase; now generating growth in our business:

Kaolin sales for the last three years are:2009: $108,8082010: $505,3452011: (July 31st) $455,219

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Bagged Product

Bulk Loading

APM Economic Impact 2009-July 31, 2011Total spent- $3,357,636 (not including payroll)State of Georgia Spending- $2,572,330Central Savannah River Area (CSRA) Spending-$1,995,918Direct McDuffie County Spending- $655,000 Total Georgia Payroll- $594,940Payroll McDuffie County- $152,000YTD spending in the CSRA is ~$250,000 (excluding payroll)$25,000 per year in Property and Equipment Valorem Taxes in McDuffie County

Projected to add a second shift at plant with 4 full time positions- $160,000 payroll increase/yearAdding a 2nd shift would double operating expenditures to ~$1,000,000/year~$500,000 in capital spending is planned at our Dearing plant as our product line & sales increase

Limited product potential at Tudor Rd.Cofer properties offer unique clay characteristicsCofer kaolin offers potential for expansion of the product line & growthEconomic benefit to McDuffie County

Lucky Strike Mine, Hancock County

Large wooded area

Large wooded area

~80 acre buffer area

287 acres to be used only for

haul road

Initial area to be disturbed

333 APM owned acres 189 acres available for mining144 acres (buffer) excluded from all activities (43%)

Small impact areas, about 30 acres permitted at any time done in small ~5 acre cellsWisham Parcel (287 acres) included only for future transport to the bypass (un-owned & no access)Mine reclamation will be ongoing

Limited off-site trucking, only 7 days per quarter, not to exceed 28 days per year

APM will consult with the County School District to ensure trucks will not be hauling when buses are picking up or dropping off students on Margaret’s or Moose Club Roads

No mining activities or hauling on weekends or holidays

Site Studies done to support the application:Feasibility study to run a pipeline from the site to the plant in Dearing ~6.5 miles = $1.75 millionTraffic study to haul south on Margaret’s Rd., west on Moose Club Rd., and south on US 278 = No LOSThreatened & Endangered Species studies = No affectsWetland & Cultural Resource Surveys = No wetland impacts proposed and future Resource Surveys will be done if anything significant is found Determined Public Water Service Areas = Public water is available surrounding the entire site

APM is committed to minimizing the impact of the proposed development on our neighborsUpon receipt of CUP, APM proposes to form a Community Liaison CommitteeInteractive process to address any issues and concerns of the surrounding communityPropose to meet quarterlySuggest it be composed of 5 members:

3 Community representatives1 County representative1 APM representative

Stantec Engineering did a detailed traffic study based on data collected on May 12, 2011 to measure the impact of our proposal, what they found was:

~6,000 daily vehicle trips on Augusta Highway at Moose Club 442 daily trips on Margaret’s Road~1,100 daily trips along Moose Club Road (between US 278 and Margaret’s)APM’s impact - 95 round trips per day assuming five days per quarter

Our proposed annual impact on traffic volume:

Margaret's Rd.- 3.2%Moose Club Rd.- 1.3%Augusta Highway- 0.002%

Existing conditions

With project traffic in 2012 & 2030

APM is a growing company, adding value to McDuffie’s Natural Resources

Our plan minimizes off-site impacts and takes our neighbor’s concerns into consideration

APM has spent $3.36M growing the McDuffie County business since 2009 and has plans for expansion if the Cofer clays can be permitted