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H , <br /> 2016 ANNUAL REPORT <br /> JAKE KAUFFMAN&SON, INC. <br /> Permit M-1999-069 <br /> Wagner/Kauffman Pit#3 <br /> PHASE 1 Final release on November 30,2012 <br /> PHASE 11 Lined storage reservoir <br /> Mining is complete,banks were finished,grading finished and 90-day leak test was conducted <br /> from Friday,July 22,2016 through Thursday,October 20,2016. Final report was prepared by Terramax, <br /> Inc.and submitted to Colorado Division of Water Resources December 8,2016. We are awaiting final <br /> report from that Division. <br /> PHASE III Mining is complete. The blue section was seeded in 2011 and 2013,the brown sections <br /> have been filled in to grade. The banks(green)have been shaped and the///areas are being filled and <br /> graded in preparation for the 90-day leak tests. All reclamation is actively being conducted in <br /> conjunction with the water reservoir on Phase 11. <br /> Mary Kauffman,Corporate Secretary <br /> Jake Kauffman&Son, Inc. <br /> 970-290-4152 <br /> 970-667-9985(fax) <br />