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Varna Companies, Inc. <br />Office of Special Projects <br />1431 Fast 16`" Street Greelev. Colorado 80631 Telephone (970) 353-8310 Fax (970) 353-4047 <br />AUGUST 2007 ANNUAL REPORT - M99-006- Kurtz Resource Recoverv & Land <br />Developmem Projgct <br />The status of operations is neazly unchanged from the previous yeazs annual report map. <br />Extraction involves the entire Tracts D and E, and is expected to corttinue in these areas <br />through 2007-8. <br />Additionally, stockpile activities occupy the remainder of Tract F since last year's annual <br />report. There is no planned reclamation beyond concurrent slopping and re-soiling <br />reported and shown in previous annual reports and continuing as possible along <br />completed portions of Tract D, primarily along the Southern boundary. Finished slopes <br />aze being stabilized temporarily with oats until final seeding efforts commence once <br />continuity along slope aspects is established. Weed management will proceed according <br />to the June 2005 Technical Revision. <br />