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IICOLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M- 2005 -089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1, 2013 TO MARCH 1, 2014 <br />1. TOTAL ACRES IN PERMIT AREA: 73.0 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66.0 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 33.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: 3.0 <br />5. CURRENT TOTAL. ACRES IN VARIOUS STAGES OF RECLAMATION: 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: 0 <br />7. APPROXIMATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: —4.0 <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: 3.0 <br />Mining resumed on this permit site in May 2013. Previous to May 2013, this site had <br />been granted Temporary Cessation that was due to expire in February 2014 and no <br />mining or reclamation had been performed on the site until May 2013. All mining during <br />the reporting year occurred in an area that had been disturbed previously (overburden <br />removed) so no new areas were opened -up or disturbed during the reporting year. <br />A total of approximately 33 acres have been mined for sand and gravel and /or disturbed <br />with the removal of overburden (O.B.) on the site. <br />As part of the Temporary Cessation status of this mine site up until May 2013, the <br />overburden stockpiles on the perimeter of the permit area were scheduled to be <br />revegetated. This had to do not with erosion issues, but with weed control. Rather than <br />disturb the OB stockpiles with heavy equipment for revegetation, we have allowed the <br />landowner's cattle to graze the stockpiles. The cattle have done a superb job in keeping <br />the stockpiles completely weed -free while compacting the OB to further reduce erosion. <br />With using the cattle for weed control on these OB stockpiles, the root mass of the weeds <br />stays intact and "holds together" the soil. It has been a very successful solution for weed <br />control on these stockpiles. Backfilling of a portion of the pit area may occur during the <br />next reporting period. <br />Mining will resume in 2014 during the construction season with another approximately 4 <br />acres being mined in the central north area which where the former fixed gravel plant was <br />located. That area has already been disturbed due to OB removal and we utilize a <br />completely mobile /portable gravel mining plant at this and our other mining sites. <br />