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e <br /> <br />ATTACHMENT TO ANNUAL REPORT <br />CARNATION MINE <br />PERMIT NO. M-1977-416 <br />NOVEMBER 1, 2006 <br /> <br />OCT 3 0 2006 <br />Division of tteciamation, <br />Mining and Safety <br />International Uranium (USA) Corporation (the "Operator") formally notified the Division of <br />Reclamation, Mining and Safety (the "Division"), via letter dated July 13, 2006, of the planned <br />resumption of mining operations at the Carnation Mine. In July, the mine site was occupied, and <br />site maintenance and clean-up was performed. Preliminary mine preparation work is underway <br />to re-establish utilities to the mine site and to allow access underground to determine the <br />condition of the mine workings. As of the date of this Annual Report, extraction of ore from the <br />mine has not yet begun. <br />On September 9, 2006, the Division notified the Operator of the revised reclamation surety <br />amount for the Carnation Mine. The Operator has obtained a bond increase rider in the specified <br />amount and submitted it for approval by the Division. <br />No changes occurred in the Permit M-1977-416 area during the past year. Routine site <br />maintenance within the permit area was performed to maintain storm water controls. No new <br />disturbances within the permit area are presently anticipated during the coming year. No <br />reclamation is planned during 2007. <br />