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III IIIIIIIIIIIIIIII 999 4FGE:II/tD DEC Q 5 egg) November 30, 1997 D~vis~en of Minerals 8 Geology Report of Activity : Hendricks Mining Co./Calais Resources Inc. Cross Mine Permit # M - 77 - 410 Permit Year Ending: November 03, 1997 The Cross Mine operation remained closed for the period November 04, 1996 through May 1997. Full maintenance of the facilities and roads, water system work and the mine office were kept open during this period. Work was completed by Toro Hendricks. On Apri130th, 1997 Hendricks Mining Co. entered into an option agreement with C:Ilais Resources Inc. of 45831 Hocking Ave., Chilliwack, British Columbia, Canada V2P 1 B5. Calais Resources lac. is a small junior resource exploration company with active properties in Baja, Mexico, Manhattan, Nevada and Norway. It currently trades as a public company on the VSE. Under the option agnteroeot through September O5, 1997, Calais Resources Inc., evaluated past geologic data, previous drill data, permits and drilled four surface core holes. Upon completion of this work, Calais Resources Inc. notiified Hendricks Mining Co. that it exercised its option to proceed with the property. Applications were submitted to the DMG for surface core drill sites. Between June and November the following surface core holes were drilled: Site 1 -Hole # Calais 97 - 101 Total depth 1,313 feet Site 2 -Hole # Calais 97 - 102 Total depth 1,720 feet Site 2 -Hole # Calais 97 - 103 Total depth 2,000 feet Site 3 -Hole # Calais 97 - 104 Total depth 1,997 feet Site 4 -Hole # Calais 97 - 105 Total depth 1,479 feet Site 4 -Hole # Calais 97 -106 Total depth 1,541 feet Site 5 -Hole # Calais 97 - 107 Total depth - hole in progress. The five surface drill sites occupy areas less than 30 feet x 30 feet. So at 900 square fret x's five sites, approximately 4,500 square feet has been disturbed or less than 1/10th of ao acre. All sites have been built on existing roads. The sites are kept neat and clean with no discharge. Full reclamation of these five sites is scheduled for completion by August Ol, 1998. All were located on our fee title, privately owned, patented land. No undergr nd work took place in 1997 and the underground mines were closed. There was no eduction fro~the properties in 1997. Please feel ~~ to contact me if you require any additional information at this time. 30 9 ~- Thomas S. data/map/checks MINE OFFICE (303) 258-3806 FACSIMILE (303) 258-0 €02 P.O. BOX 653 -CARIBOU, NEDERLAND, CO. 80466-0653.