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COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M-2005-089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1,2007 TO MARCH 1, 2008 <br />1. TOTAL ACRES 1N PERMIT AREA: 73 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 27.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: APPROX. 6.4 <br />5. CURREN'C TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION: <br />APPROX. 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: NONE <br />7. APPROX[MATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: 8.0 <br />8. APPROx:IMATE ACREAGE TO BE RECLAIMED 1N NEXT REPORT YEAR: <br />NONE <br />Actual processing/production from the site did not begin until November 2006. A total of <br />approximately 27 acres have been mined on the site. Approximately 6.4 acres were <br />mined during t:he report year to the full-depth of the deposit. <br />No reclamation, other than stockpiling of overburden, has occurred on the site and <br />backfilling will not occur for another few years. <br />Mining to the full depth of the deposit (~30 ft.) will occur on approximately 8 acres <br />during the next report year. <br />Sufficiency of Ualue of Financial Warranty <br />The permittee: holds a Financial Warranty for the permit through Western Surety <br />Company in the full amount of $184,814.00, a figure sufficient to achieve all reclamation <br />requirements Linder the current permit. <br />A check in the amount of $791.00 is being submitted with this report to cover the Annual <br />Fee required to maintain this permit in good standing. <br />