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• iii iiiiiiiiniu iii a~~~ 999 ..., November 24,1998 Mr. Carl Mount ~~iVED Division of Minerals and Geology ;~ -, Department of Natural Resources 1313 Sherman Street, Room 215 .~,neralS&Geoic. Denver, Colorado 80203 Reference: Permit Number M - 77 - 410 Calais Resources, Inc. (Previously Hendricks Mining Co,) Dear Carl: Please find attached our check in the amount of $ 225 for our annual permil. I have, also attached the completed Hard Rock/Metal and DMO annual report. Our geologist Mr. Robert Akrigbt prepared a detailed summary of our core drilling; for the period November 1997 through November 1998. Accompanying that four page report is a drill Topo Map showing the location of the drilling reported during the permit year, Our drill pads are 20 feet x 30 feet. Often, one to five holes are drilled from the same site. We have no discharge from the water settlement ponds. Environmental friendly drill fluids are used. Water is recycled by the drilling operation. Core sites are fully reclaimed after use. l;entooite is used to plug the hole casing after completion. The sites are cleaned, leveled and returned to their original contours, covered with screened topsoil and seeded with high altitude seed mix. The sites are fully returned to their natural state in one year or less. Approximately 27,977 feet of core drilling took place during this permit year. No underground work took place at our sites during the permit year. Edur~tional lectures and underground tours for school groups and special interest groups stook place at the Cross Gold Mioe, During this permit year, approximately 2,000 people participated}p the lecture and tours. Please cg6~act me if you have any questions or require any additional data. 5ipcerely, Tom Hendri ks A ap+Reports+Check CC: Calais Resources, Inc. Head Office MINE OFFICF. (303) 258-3806 FACSIMILE (303) 258-O~i02 P.O. BOX 653 -CARIBOU, NEDERLAND, CO. 80466-0653.