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Page 3 of 4 <br /> 112c Annual Report <br /> KhGEIVED Permit Number: M-2013-064 <br /> Permittee Name: Varra Companies, Inc. <br /> JUL 1 12017 Operation Name: Varra-Coulson Resource Project <br /> DIVISION OF RECLAMATION, County: Weld <br /> M FE REp p LS Anniversary Date: August 28, 2017 <br /> (DRMS Office Use Only) Current Bond Amt: $205,801.00 <br /> Annual Fee Due: $791.00 <br /> Permit Acreage: 100.63 <br /> DRMS Specialist: PSH <br /> According to C.R.S. 34-32.5-116 or 34-32-116, each year, on the anniversary date of the permit, an operator shall submit <br /> the Annual Fee, an Annual Report and Map showing the extent of current disturbances to affected land,required <br /> monitoring information, reclamation accomplished to date and during the preceding year, any new disturbance that is <br /> anticipated to occur during the upcoming year, any reclamation that will be performed during the upcoming year,the <br /> dates for the beginning of active operations, and the date active operations ceased for the year. <br /> Information contained in this report will be reviewed by the Division upon receipt and prior to the next compliance <br /> inspection of the site. If,while completing this report,you learn that your site is not in compliance with the rules and the <br /> act, it is advisable that the issues be rectified promptly to avoid possible enforcement action. <br /> SUMMARY NARRATIVE: Operations commenced in March 2017 affecting the entire 11.61±acres of Middle Field. <br /> Fencing of the south boundary and Fern St. access road is complete. Establishment of the irrigation canal segment to <br /> redirect irrigation waters along the northwest boundary to the Poudre River is still pending, as on-set of operations <br /> consistent with the approved Exhibit C-2: Extraction Plan has commenced north of the existing irrigation canal, while an <br /> extraction into 2018 may increase 40±acres south of the irrigation canal into South Field. Minor preparation of clearing <br /> of vegetation and initial access road preparation have affected approximately 2.0±acres. <br /> 1. Is the site identification sign posted in accordance with Rule 3.1.12(1). YES NO <br /> 2. Is the affected area boundary clearly marked in accordance with Rule 3.1.12(2). YES NO <br /> 3. Is the mine site in final reclamation(all material extraction and stockpile removal is complete)? YES NO <br /> If"YES,"please note time limits related to completion of reclamation, Rule 3.1.3. <br /> 4. What was the date of last excavation, processing or hauling activity at the mine? On-going <br /> 5. Does the mine operate more than 180 days per year? YES NO <br /> If"NO", please review Rule 1.13 to assure that your mine is in compliance. <br /> 6. Has this mine been granted: a)approval of TEMPORARY CESSATION Status? YES NO <br /> b) approval for INTERMITTENT OPERATION? YES NO <br /> 7. Number of acres currently affected(mining+incomplete and or unreleased reclamation). 13.61± <br />