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.~ <br />ATTACHMENT TO ANNUAL REPORT <br />CARNATION MINE <br />PERMIT NO. M-1977-416 <br />NOVEMBER 1, 2004 <br />A site inspection of Permit M-1977-416 was conducted by the Division of Minerals and Geology <br />(the "Division") on September 8, 2003. No Corrective Actions were stipulated from this <br />inspection. In addition to observing recent site maintenance and control work, the Division and <br />the Operator agreed on the delineation of the Permit boundary. <br />Based on the field inspection and review during the October 2003 site inspection, the Operator <br />installed Permit boundary markers, the completion of which was an outstanding Corrective <br />Action item. The Division was notified of this action on November 20, 2004 <br />At the time of preparation of the last Annual Repor[ for Permit M-1977-416, a request for a <br />Technical Revision to the Permit was being prepared. Technical Revision TR-O1 addressed final <br />definition of the Permit boundary, and refined and updated the existing site reclamation plan. <br />The Technical Revision was approved by the Division on December 11, 2003. <br />On February 2, 2004, the Operator submitted a proposed Final Reclamation Map for Permit M <br />1977-416. This map was accepted by the Division on March 10, 2004. <br />No new disturbances within the permit area are presently anticipated during the coming year. No <br />reclamation is planned during 2005, as the Carnation Mine will remain in standby status pending <br />improved uranium vanadium market conditions. <br />