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Varna Companies, Inc. <br />Office of Special Projects <br />1431 East 16'" Stree[ Greelev. Colorado 80631 Telephone (9701 3 5 3-83 10 Fax (9701353-4047 <br />AUGUST 2004 ANNUAL REPORT - M99-000Y Kurtz Resource Recovery & Land <br />Development Project <br />This is the fifth yeaz of operations. The status of operations is neazly unchanged from the <br />previous yeazs annual report map (refer to attached updated annual report map). <br />Extraction involves the entire Tract D Area and is expected to continue in this Area <br />through 2004-5, and estimated to continue in Tract D for the next five yeazs. <br />Additionally, stockpile activities have expanded into Tract E and is progressing to the <br />South to facilitate removal of resources in Tract D. Soil was removed prior to stockpiling <br />in Tract E. There is no planned reclamation beyond concurrent slopping and recoiling. <br />Finished slopes aze being stabilized with oats. The extent of finished sloped, soiled and <br />stabilized slopes is to the extent shown on the updated annual report map. <br />