FALLON MINING COMPANY

BUSINESS PLAN PROFORMA


Exhibit 8.1.A 
FORECASTED INCOME STATEMENT
END OF YEAR
Prepared October 2014


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue  $        4,000,000  $    38,000,000  $      72,000,000  $   162,000,000  $   190,000,000  $    260,000,000  $     260,000,000  $     260,000,000  $         260,000,000  $      260,000,000
Cost of Sales - Plant Operation and Ore Handling           1,000,000         9,000,000            9,000,000          9,000,000          9,000,000            9,000,000            9,000,000             9,000,000                9,000,000             9,000,000
Gross Profit           3,000,000       29,000,000          63,000,000       153,000,000       181,000,000        251,000,000         251,000,000         251,000,000             251,000,000         251,000,000
Expenses
Salaries - Administration 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 1,610,510 1,771,561 1,948,717 2,143,589 2,357,948
Salaries - Engineering 600,000 900,000 1,125,000 1,406,250 1,757,813 1,933,594 2,126,953 2,339,648 2,573,613 2,830,975
Salaries - Plant 2,000,000 3,000,000 3,600,000 4,320,000 5,184,000 6,220,800 7,464,960 8,957,952 10,749,542 12,899,451
Employee Benefits and Payroll Taxes           1,260,000         1,750,000            2,077,250          2,470,038          2,942,069            3,417,716            3,977,216             4,636,211                5,413,361             6,330,931
Consultants 600,000 900,000 1,350,000 2,025,000 2,430,000 2,916,000 3,499,200 4,199,040 5,038,848 6,046,618
Insurance 300,000 375,000 468,750 585,938 732,422 915,527 1,144,409 1,430,511 1,788,139 2,235,174
Depreciation on Machinery and Equipment           2,500,000         5,000,000            7,500,000         10,000,000        10,000,000          10,000,000          10,000,000           10,000,000              10,000,000           10,000,000
Amortization of Start-Up Costs 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Repairs, Maintenance and Retrofit 500,000 600,000 720,000 864,000 1,036,800 1,244,160 1,492,992 1,791,590 2,149,908 2,579,890
Leased Equipment 50,000 62,500 78,125 97,656 122,070 152,588 190,735 238,419 298,023 372,529
Travel 200,000 300,000 450,000 495,000 544,500 598,950 658,845 724,730 797,202 876,923
Meetings and Entertainment 100,000 125,000 156,250 195,313 244,141 305,176 381,470 476,837 596,046 745,058
Utilities 100,000 150,000 225,000 270,000 324,000 388,800 466,560 559,872 671,846 806,216
Professional Fees 150,000 225,000 281,250 351,563 439,453 549,316 686,646 858,307 1,072,884 1,341,105
Rent and Leasing  50,000 100,000 150,000 150,000 165,000 181,500 272,250 340,313 425,391 531,738
Subscription and Dues 10,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Supplies 50,000 62,500 78,125 97,656 122,070 152,588 190,735 238,419 298,023 372,529
Research and Development 750,000 1,125,000 1,350,000 1,620,000 1,944,000 2,332,800 2,799,360 3,359,232 4,031,078 4,837,294
Miscellaneous 250,000 275,000 302,500 332,750 366,025 402,628 442,890 487,179 584,615 701,538
Total Expenses 11,370,000 15,565,000 20,384,750 25,574,413 28,423,438 31,502,225 35,239,531 39,655,566 44,931,417 51,242,083
Operating Profit (8,370,000) 13,435,000 42,615,250 127,425,588 152,576,562 219,497,775 215,760,469 211,344,434 206,068,583 199,757,917
Interest Income 500,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Income Before Taxes (7,870,000) 13,685,000 42,865,250 127,675,588 152,826,562 219,747,775 216,010,469 211,594,434 206,318,583 200,007,917
Less: Tax Provisions   (2,326,000) (17,146,100) (51,070,235) (61,130,625) (87,899,110) (86,404,188) (84,637,774) (82,527,433) (80,003,167)
Net Income After Taxes  $       (7,870,000)  $    11,359,000  $      25,719,150  $     76,605,353  $     91,695,937  $    131,848,665  $     129,606,281  $     126,956,661  $         123,791,150  $      120,004,750

PROFORMA 10 YEAR SCHEDULE

INVESTMENTS