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Annual Report to DMG <br />Bayfield Pit #1 <br />Permit No. M-1987-038 <br />°La Plata County, Colorado <br />Extent of current disturbances to affected land: <br />No mining activity or disturbance occurred in the reporting period. <br />Reclamation accomplished to date and during the reporting period: <br />All areas of disturbance have been substantially reclaimed in accordance <br />with the reclamation plan as amended by AM-03 in 1998 and further <br />amended by TR-01 in 2003. <br />New disturbances that are anticipated to occur during the coming year: <br />Limited mining may occur, depending on product demand. <br />Reclamation that will be performed during the upcoming year: <br />Reclamation in disturbed areas is virtually complete. Weed control <br />measures will be performed as necessary. <br />Dates for beginning of active operations: <br />N/A <br />Date active operations ceased for the year, if any: <br />N/A <br />Statement regarding the sufficiency of the value of the Financial Warranty: <br />DMG holds a letter of credit financial warranty in the amount of <br />$22,857.00. The amount is sufficient for all reclamation work remaining at <br />the Bayfield #1 Pit. <br />