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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-348 INSPECTION DATE November 22. 2005 INSPECTOR'S INITIALS CBM OBSERVATIONS This was an inspection conducted at the request of the operator to determine progress of reclamation activities. Attending the inspection were Carl Mount of the Division of Minerals and Geology, Gordon Benton of Holcim, Kallie Bauer and Bill Schenderlein of Applegate Group (consultant to Holcim). Acreage Release AR-01 has been approved as of October 25, 2005. The official acreage release letter will be sent shortly following confirmation of the number of acres to remain in the permit area. In the meantime, Holcim is continuing to reclaim the rest of the affected land within the permit area. Same limited pre-law area spoil piles are being used for growth medium on some post law material disposal areas. These areas include the plant burial site in former pit A-1 and the cement kiln dust disposal area (also in Pit A-1). During the inspection the angle of repose slopes just west of the Windsor Reservoir and Canal Company Ditch (which bounds part of the southernmost permit area near the cement plant site) were discussed. Although some of these slopes appear to be vegetated sufficiently to pass bond release criteria, Holcim is still considering reducing these slopes to 2H:1 V or less steep and revegetating them. The operator could define these areas and change the reclamation plan for these areas only to allow leaving the angle of repose slopes, however, the operator could also follow the present reclamation plan and flatten and revegetate the slopes. Reclamation on other areas of the mine is proceeding well. The inspection proceeded from south to north and almost all areas of the permit were viewed. At the Plant Burial site in Pit A-1, the operator is using pre-law material as final cover for the building materials that were disposed in the bottom of the pit as approved in the reclamation plan. The operator still needs to establish 2H:1V slopes on the south fill in this pit and reducing the highwall just to the east of this fill was discussed as a possible alternative for fill material. To the north of this fill area, the operator still needs to get rid of product material that will be hauled to the Florence plant in southern Colorado. After getting rid of this material, the operator is contemplating using pre-law fill just to the west of this area. It was unclear what the disposition of the power lines in this area was and this needs to be investigated further. The E2 Pit has had the eastern highwall completely eliminated and graded to 2H:1 V slopes or less steep. Grading and growth medium placement has also occurred throughout the E3 Pit and slopes are gentle enough where drill seeding can probably be done on the entire regraded pit area. The A3 Pit was inspected and it was found that the below water slopes on the fill in the middle of the pit were graded down to 2H:1 V slopes or less steep except for apost-law fill in the middle of the pit and a small fill in the northernmost area of the pit. All the post-law areas that are 5 feet above to 10 feet below (vertical distance) the water surface will have to be graded to 3H:1 V slopes or less steep in order to meet the requirements of Rule 3.1.5(7). The northernmost slopes in Pit A-3 look good. Pit A-4 is filled with water at this point but is the pit that water has been pumped to to clear out other pits so backfilling and reclamation can proceed in those pits. The water in Pit A-4 is used mainly for dust control and the level is expected to go down in the winter months. Pit A-6 has been completely graded, topsoil and growth medium placed and the area has been completely seeded by the time of this inspection. The area looks good at this juncture but final disposition of this area will have to be watched closely since no erosion control methods other than grading, topsoiling and seeding have been used. Active growth medium placement was occurring in Pit E-1 at the time of this inspection. No problems of possible violations were observed during this inspection. Responses to this inspection report should be directed to Carl B. Mount at the Division of Minerals and Geology, Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-3863.