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Annual Report — 2013 <br />Henderson Mine and Mill Reclamation Activities <br />Permit No. M- 1977 -342 <br />Prospecting activities planned for 2014 include surface drilling in the targeted area of the historic Puzzler <br />mine. Two sites have been identified as favorable drilling locations. Both sites are situated to the <br />north of the Henderson Mine Rd (County Rd 202) just west of the turn off for Woods Creek Rd <br />(County Rd 203). The first site, hereby referred to as simply Puzzler, is located at approximately <br />Latitude 39 46.3633305, Longitude 105 49.2340317 and is situated within existing mining <br />claims owned by the Company. The second site, hereby referred to as Puzzler West, is within <br />the Henderson property boundary at approximately Latitude 39 46.3790452, Longitude 105 <br />49.5008012. <br />1.4 Other Activities <br />1.4.1— Weed Control <br />Habitat Management and Green Solutions, Inc., both licensed commercial pesticide applicators, <br />performed weed management activities in late July and again in late September and early October, 2013. <br />Canada thistle, yellow toadflax, mayweed chamomile and oxeye daisy were found throughout the main <br />mine facilities area, the URAD area, Orica Yard, and along County Road 202 between URAD and the <br />Henderson Mine. Herbicide applications were spot - applied to targeted weed species. <br />The herbicides used for treatment include: Milestone (aminopyralid), Tordon 22K (picloram), <br />Weedestroy AM 40 (2,4 -D amine) and Plateau (imazapic). Krovar IDF (bromacil, diuron), a soil sterilant <br />was utilized around substations and building perimeters. MSO Premium Surfactant or Induce were <br />utilized as surfactants and blue marker dye was added to applications to allow greater visibility of treated <br />areas. <br />In total, approximately 50 acres were sprayed in and around the Henderson Mine, URAD Mine and <br />county road right -of -ways. <br />1. 4.2 — Water Quality Data <br />Water quality data will be provided in the Annual Water Quality Data Report, due to the DRMS, per the <br />approved Groundwater Management Plan (TR -16). <br />2.0 Henderson Mill <br />2.1 Disturbance <br />Approximately 6 acres were disturbed in 2013. This is primarily attributed to the continued rise of the <br />tailing impoundment. Disturbance from ongoing activities associated with topsoil salvage and gravel pit <br />operations have been accounted for in previous years, however no new disturbance occurred in 2013. <br />2.2 Interim Reclamation <br />Interim stabilization efforts included the salvage of 325,300 cubic yards of topsoil /growth media from <br />inundation areas along the upstream side of the tailing impoundment. The material was placed in the <br />North and Ranger Gulch stockpiles, which is situated on the northern end of the impoundment. <br />Routine maintenance of erosion and sediment control structures was carried out in 2013. <br />Page 2 <br />