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Bowie Resources Limited _ Bowie No. 2 Mine • 1999 Annual Hydrology Report Surface Water Monitoring Stations: PONDS Stock Ponds P-1 through P-6 are monitored quarterly for 1.) Inflow; 2.) Outflow; and 3.) Water level below spillway outlet or depth of water in the pond measured from the bottom of the pond. A review of water rights within the permit boundary indicated a probability of a unfound pond in Section 4. Reconnaissance during the spring of 1999 located Pond 6 (P-6). This pond is now regularly monitored. Field data collected during the 1999 sampling season is consistent with baseline information provided in the permit application. Three additional ponds aze being monitored in order to gather baseline information for a furore permit revision. Surface Water Monitoring Statious: SPRINGS Sixteen springs within the permit boundary were monitored during the 1999 monitoring season in accordance with the Hydrologic Monitoring Plan included in the permit application. This plat indicates that identified springs will be inspected quarterly for field pazameters with full suite laboratory pazameters required on springs with flows greater than five (5) gallons per minute. During the construction phase of the mine, four (4) springs (S-6, S-7, S-9 and S-15) were eliminated byroad and portal bench construction activities. A review of water rights within the • permit boundary indicated a probability of a unfound spring in Section 4. Reconnaissance during the spring of 1999 located Spring 18. This spring is now regularly monitored. The 1999 field and laboratory analysis is consistent with baseline data provided in the permit application. An additional 38 springs and/or springs with ponds were monitored in order to gather baseline information for a future permit revision. Surface Water Mouitoring Stations: STREAMS AND DITCHES Twenty two surface water monitoring stations including the North Fork of the Gunnison, Terror Creek, Hubbazd Creek, Freeman Gulch, the Deer Trail Ditch, Stephens Draw, the Fire Mountain Canal and Gulches A through D are monitored quarterly for field pazameters and semi annually for full suite analysis. The results of the 1999 field and laboratory studies aze consistent with baseline information supplied in the permit application. Flow data for the North Fork of the Gunnison river is obtained from the USGS from a website http://nwis-colo.cr.usgs.gov/historic.html. This flow reading is obtained telemetrically from a station neaz Somerset, CO and is reflective of upper stream flows only. Nine additional surface water monitoring stations were monitored to gather baseline information for a future permit revision. These include the Sheep Corral, Dove Gulch, Ironpoint, Hubbazd Creek and Upper Terror Creek drainage basins. • Page 3