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2007 Annual Report <br />Permit No. M-1977-140 <br />2006 Minine -Because of the rise irr the water table from past drought years, areas that <br />were previously exposed, were again, under water. This prevented any further mining in <br />present pond. <br />In addition, because the present pond is at, or near the limited 20 acres exposed surface <br />area, we did not mine any further. Rather than move west to mine the future proposed <br />lake (refer to map), we decided to buy material from the Bassi Pit, located to the east of <br />our property. <br />2006 Reclamation -Because it appears that no more excavation will take place in existing <br />pond, we graded and sloped remaining banks of pond. In the next few months, we will <br />contact the Division of Minerals and Geology in regards to a release of liability for the <br />existing lake (refer to map), portion of our permit. <br />Bond Information - A copy of our current bond is enclosed. <br />