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August 2004 <br />"Environmental Policy Statement by Calais Resources Inc." <br />Calais Resources loc. merged with Hendricks Mining Co. in 1998. <br />Since 1971, Hendricks Mining Co. and now it's predecessor Calais <br />Resources Inc. have been developing environmental principles for it's <br />underground gold mining operations at Caribou, Colorado. These <br />environmental practices and policies continue to this day and will be at <br />the core of Calais's operating agenda in the future. W'c believe very <br />strongly in environmental excellence while exploring, developing and <br />producing precious metals that are used by modern societies world wide. <br />Both Hendricks Mining Co. and Calais Resources lnr. have spent S 19.5 <br />million dollars on the Caribou project. This includes land <br />acquisitions/district mine consolidations, +150,000 feet of core drilling, <br />geological mapping/sampling and professional services, mine <br />development, infra-structure, permits and environmental systems. <br />The Caribou District is unique in the Colorado ~1ineral belt. [3oth the <br />veins and host rocks contain significant amounts of calcite and the pH of <br />the water from the mines averages 8 on a year round basis. F.ztensive <br />whole rock analysis work on bath Caribou ores and host rocks show no <br />acid generating qualities. Historic mining has demonstrated excellent <br />ground conditions. The mineral deposit at Caribou is meso-thermal. <br />Numerous high grades veins show ore grades over predictable strike <br />lengths, along ancient strike/slip faults that continue to significant depths <br />with mineable underground widths from 3 feet to 50 feet. Fistoric, high <br />grade underground mining has been the principal use for the properties <br />at Caribou since 18G9. <br />Calais Kesources Inc. Environmental Policies/New Millennium Mine: <br />1. Recycling everything from cans, waste oil, scrap metals, cardboards <br />and plastics. Our goal is 100 % rc-cycling of rccyclables. <br />2. Car Pooling crew members during active work programs to reduce <br />road traffic and to eliminate the need for new mine parking and to <br />promote energy conservation. <br />3. Using state of the art environmental, mining and milling equipment <br />through out the new millennium mine. This includes filter presses for <br />tailings decanting and underground filling with Portland cement, <br />recycling water, final water filtration through silica gel and ceramic filter <br />Muu• l>7h,•• l ifll _'titi-itilN, P.~r~.•,ur'~,~ I ii~i~ ~iH•04(1•) <br />1'l' it;.~~., 5i C.r. r.ui: ~Vr,Lr,~n~i a~~nn~loo ~•,r,ii <br />