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AGAPITO ASSOCIATES, INC. <br />715 HORIZON DRIVE GOLDEN OFFICE <br />SUITE 340 303.271.3750 <br />GRAND ,JUNCTION, CO 81606 <br />USA CHICAGO OFFICE <br />VOICE 970.242.4220 630.792.1520 <br />www.agapito.com <br />February 1, 2007 534-16-T4 <br />Mc Jim Mattern <br />Trapper Mining Company <br />P. 0. Box 187 <br />Craig, CO 81626 <br />Re: Interim Report of G-Pit and Pit Stability Analyses-Tasks 3 & 4 <br />Dear Jim, <br />On October 11, 2006, Dr. John Tinucci of Agapito Associates, [nc. (AAI), made a site <br />visit to the Trapper Mine to examine a large landslide that had occurred over the weekend of <br />October 8, 2006, in the G-Pit and K-Pit areas of the mine. Apost-event, field trip report was <br />issued to document observations from geotechnical and mining perspectives and to provide a <br />discussion on likely conditions leading to the event.) Since this site visit, modeling analysis of <br />G-Pit stability has been completed as well as analysis of Z-Dip Pit. <br />The purpose of this report is to summarize the modeling results and address questions <br />raised by Colorado Division of Reclamation, Mines, and Safety (DRMS) in their November 24, <br />2006, letter to the mine owner, Trapper Mining, [nc. (TM[), about expected ground conditions at <br />Z-Dip Pit. For clarity, numerical modeling results are presented first prior to addressing specific <br />questions from DRMS. This will provide sufficient background to help the responses to make <br />more sense. <br />The modeling results documented in this report provide <br />• Our understanding of conditions leading to landslide <br />• Demonstrate our confidence in being able to predict the behavior of the next phase of <br />Z-Dip Pit mining <br />• Help guide future geotechnical investigation activities and mine planning activities <br />associated with mining G-Pit area <br />• Our responses to DRMS's questions <br />I Agapito Associates, Inc, (2006), "Trip Report on GPit Landslide of October 8, 2006," prepared for Trapper <br />Mining, Inc, November 30. <br />Mining & Civi[ Engineers & Geologists <br />GEOENGINEERING MINING ENGINEERING CIVIL ENGINEERING <br />