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u • EXHIBIT HISTORY The Alma Mining District in Colorado was discove ed in the early 1850's. In 1872 the first recorded work t k place on the Alma Placer Claim. This work began on the ba ks of the South Platte River. In 1877 a second "paychannel" was found east of the initial discovery. As in all early mining districts, work began as sm two man operations. Physical labor was the or source. The properties were then slowly consolid more affluent owners. This meant larger and more operations using better equipment and recovery pro mining progressed, it moved eastward from the rive thicker gravel beds found there. With some gravel sixty feet thick, underground drift mining was en remove the gravel along the richer "paychanne surface and underground mining techniques were emp the 1990's. As labor costs increased after the Se War, increasingly productive surface techni machinery had to be employed. After 1950, onl mining was used in the Alma District. In 1979 Z Enterprises erected a modern processing plant and earth moving equipment to institute large voluR mining. The processing plant was designed to w cubic yards per day of the gravels. Timberline s;iare of problems during 1980 and were able to on an average of 1,523 cubic yards of gravel per day cubic yards of gravel were processed during the 19 Timberline has not operated since, and their MLRB revoked in 1984. The site operator, Panhandle Drilling Co., has en a lease with Ducommun Business Trust, owner of the New assay samples have been taken to determine th rate of precious minerals on the 311 one or ime power 3ted under productive :esses. As into the beds over ployed to is". Both Loyed into :ond world ques and y surface imberline ised large surface ash 5,000 nad their .y process . 227,000 IO season. permit was eyed into property. recovery property.