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2014 ANNUAL REPORT <br />JAKE KAUFFMAN & SON, INC. <br />Permit No. M -1999 -069 <br />Wagner/Kauffinan Pit #3 <br />PHASE I Final release on November 30, 2012 <br />PHASE II Lined storage reservoir <br />RECEIVED <br />JAN 082015 <br />DIVI4ION OF RECLAMATION <br />MININGMD SAFETY <br />Mining is complete, banks finished, final grading is being done. The 90 -day pump <br />test on liner was started August 21, 2013 with no leakage occurring. September 13, 2013 <br />Big Thompson River flooded filling reservoir. The lake has not been pumped but <br />evaporation has occurred lowering the level approximately 3 -5 feet. The area around the <br />lake has been releveled and reclamation is in progress. <br />PHASE III Small lake <br />Mining is complete. Blue section has been seeded. Brown section filled in to grade. <br />During 2014 flood repair to the southern dyke of the lake was complete, water pumped out <br />and reclamation is once again in progress. <br />FLOOD DAMAGE <br />On September 13, 2013 the Big Thompson River flooded the storage reservoir and <br />small lake. The water storage reservoir has evaporated 3 -5 feet. The water damage to the <br />banks on the south edge of the small lake has been repaired, and the water pumped out. <br />Reclamation will continue simultaneously with the small lake and water storage <br />reservoir. <br />Mary Kauffman, Corp. Secretary <br />Jake Kauffinan & Son, Inc. <br />970 - 290 -4152 <br />970 - 667 -9985 (fax) <br />