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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 <br />C.R.S. 34-32-116(3)(a), the Annual Report provides a summary of the surface <br />disturbance and reclamation pertormed during the current reporting period <br />from July 13, 2005 to July 12, 2006 (2005 - 2006), as well as planned disturbance <br />and reclamation for the next reporting period from July 13, 2006 -July 12, 2007 <br />(2006 - 2007). Activities at the Yankee Gulch Project during the reporting period <br />were conducted under the regulatory guidance and inspection oversight of the <br />Colorado Division of Minerals and Geology (DMG) under Permit No. M-1999-002. <br />As part of this Annual Report, American Soda has prepared maps identifying <br />areas where disturbance has occurred during the report period. Figure 1 <br />provides a general location map of the American Soda Piceance Site Mining <br />Operation. Figure 2 provides a detailed map of the Piceance Site Processing <br />Facility and its surroundings. Figure 3 provides a detailed map of the 0 - 5 year <br />mining panel, where the majority of surtace disturbance has occurred to date. <br />Figure 3 also identifies American Soda's Pilot Plant Area, which was developed <br />in 1997. Figure 4 is a current status map of the 0 - 5 year mining panel which <br />• shows areas of reclamation for the 2004 - 2005 reporting period. <br />Section 2.0 of this report addresses permit modifications for the Yankee Gulch <br />Project during the 2005 - 2006 permit period. <br />Section 3.0 addresses resent changes and the current status of American Soda's <br />project operations, including the extent of current disturbances and additional <br />disturbance planned for 2006 - 2007. <br />Section 4.0 describes reclamation that has occurred to date and planned <br />reclamation for the 2006 - 2007 reporting period, <br />American Soda. L.L.P. 1 <br />DMG Annual Report <br />July 12, 2003 <br />