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CLIMAX MOLYBDENUM COMPANY <br />A Subsidiary of Phelps Oatlee MlplnB CAmpany <br />Mazch 2, 2006 <br />Certified Mail No.: 7005 0390 0002 8122 3666 <br />Colorado Division ofMinerals and Geology <br />1313 Sherman Street; Rm. 215 <br />Denver, Colorado 80203 <br />RE: Climax Mine Permit No. M-77-493: 112d-3 Annual Report - Yeaz 2005 <br />To Whom It May Concern: <br />Climax Mine <br />Hwy. 91 <br />Climax, Colorado 60429 <br />(719)486-2150 <br />Fax (7191486-2251 <br />Enclosed is the 2005, 112d-3 Annual Reclamation Report and the annual weed control report for <br />the Climax Molybdenum Company, Climax Mine. The required annual fee of $1000.00 is <br />attached, The attached map and information provides details of the extensive reclamation, dust <br />control, and monitoring activities at the Climax Mine in 2005. The Climax Mine remained on <br />active, but standby, status during the year with continued significant reclamation related <br />activities and water treatment. These activities will continue through 2006 and beyond. <br />The current financial warranty for Climax is $52,365,000. The Climax Molybdenum Company <br />continues to work with the Division of Minerals and Geology in completing the analysis for an <br />accurate warranty for the property. <br />If you have any questions or require additional clarifications, please contact me at (719) 486- <br />2150 ext. 723. <br />Sincerely, <br />Gary A. Slifka <br />Sr. Environmental Engineer <br />Climax Molybdenum Company, Colorado Operations <br />Encl. <br />Cc : J. Cupp -Climax Molybdenum Company (w/o enclosures) <br />K. Knoll -Henderson Operations (w/o enclosures) <br />B. Romig -Environmental Manager, Colorado Operations (w/o enclosures) <br />