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'• 1.0 EXECUTIVE SUMMARY -Start of Active Operations <br />The following Annual Report addresses American Soda's Yankee Gulch Sodium <br />Minerals Project, located in Rio Blanco County, Colorado. In accordance with C.R.S. <br />34-32-116(3)(a), the Annual Report provides a summary of the surface disturbance and <br />reclamation performed during the current reporting period from July 13, 2004 to July 12, <br />2005 (2004 - 2005), as well as planned disturbance and reclamation for the next <br />reporting period from July 13, 2005 -July 12, 2006 (2005 - 2006). Activities at the <br />Yankee Gulch Project during the reporting period were conducted under the regulatory <br />guidance and inspection oversight of the Colorado Division of Minerals and Geology <br />(DMG) under Permit No. M-1999-002. <br />As part of this Annual Report, American Soda has prepared maps identifying areas <br />where disturbance has occurred during the report period. Figure 1 provides a general <br />location map of the American Soda Piceance Site Mining Operation. Figure 2 provides <br />a detailed map of the Piceance Site Processing Facility and its surroundings. Figure 3 <br />provides a detailed map of the 0 - 5 year mining panel, where the majority of surface <br />disturbance has occurred to date. Figure 3 also identifies American Soda's Pilot Plant <br />Area, which was developed in 1997. Figure 4 is a current status map of the 0 - 5 year <br />mining panel which shows areas of reclamation for the 2004 - 2005 reporting period. <br />~ . Section 2.0 of this report addresses permit modifications for the Yankee Gulch Project <br />during the 2004 - 2005 permit period. <br />Section 3,0 addresses the status of American Soda's project operations, including the <br />extent of current disturbances and additional disturbance planned for 2005 - 2006. <br />Section 4.0 describes reclamation that has occurred to date and is planned for the 2005 <br />- 2005 reporting period. <br />• <br />American Sotla, L.L.P. 1 <br />DMG Annual Report <br />July 12, 2003 <br />