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Page 2 <br />MLRD Annual Report <br />November 02, 2003 -November 03, 2004 <br />Permit Number: M-1977-410 <br />November 12, 2004 <br />Environmental Projects: <br />The final work on the Cross Mine dump reclamation was completed along the <br />north corridor with Coon Track Creek. The sloping, berm, installation of 30 dump <br />truck loads of top soil and mulch was completed in 2003. During 2004, removal of <br />rocks along Coon Track Creek took place. Seeding of the soil and mulch via high <br />akitude seed was completed. Additional raking and contouring was finished. <br />Full site reclamation was completed on diamond drill sites CR03-125 and CR03- <br />126. Each hole was filled from 0 to - 150 feet with concrete. The sites were <br />thoroughly cleaned. Top soil and mulch were spread and the site was re-contoured. <br />A rock barrier was placed with large boulders along the road edge of the site to <br />prevent vehicle disturbance. Native pine and fir trees were planted on the site. The <br />company designed and bulk reclamation signs that are posted on the reclaimed drill <br />sites describing the drill boles and reclamation effort. <br />Numerous sites on oar property were posted with signs and markers to help <br />prevent damage from increasing numbers of four wheel drive vehicles. <br />New 6"x 6" sign posts were installed at the mines, Caribou Town site and <br />Caribou Cemetery. Calais is currently building historic signs to describe the <br />important mining history for the area and importance of good environmental <br />stewardship. <br />Core Drilling Projects: <br />Calais completed 4 diamond dri116oles between Apri115, 2004 and June O5, <br />2004. The holes were located on the north east corner of the Pandora # 4 patented <br />claim. Three of the holes were drilled from the same location and the fourth was <br />drilled 150 feet to the south. All were drilled from an existing roadway with previous <br />disturbance. Two small ponds were constructed and sealed with bentonite. Cuttings <br />from the holes were settled in the first pond and the over flow water settled in the <br />second pond. The water was recycled in the drill process. No toxic chemicals were <br />used, only Minea drill fluid which has EPA approval. Every precaution was taken to <br />prevent any oil contamination and 3 M Oil Sorbet rags were used in and around the <br />drill. A drill contactor was used. Ideal Drilling from Hibbing, Minnesota completed <br />the drilling with a hydraulic QS 1000 Atlas Copco rig. Calais supplied all the <br />support work. Each of the four holes was sealed with concrete from 0 to -150 feet. <br />The entire disturbance from this program on an existing roadway was 40 feet a 80 <br />feet or 3,200 sq. feet. Half of the site was reclaimed with top soil and mulch, followed <br />by seeding during the summer of 2004. The company is scheduled to reclaim the <br />balance of the site in June of 2005. The holes were surveyed by Drexel Barren <br />Surveyors from Boulder, Colorvdo. They surveyed the collar location, elevation and <br />azimuth. Idea Drilling provided the down hole surveys. The core was transferred <br />