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Idarado Mining Company <br />2007/2008 Annual Report <br />Permit Number: M-1977-403-HR <br />Anniversary Date: July 1, 2008 <br />Idarado Mining Company (IMC) is implementing remediation and reclamation activities <br />as per the Consent Decree (D. Colorado Civil Action No. 83-C-2385) between the State <br />of Colorado Department of Public Health and Environment, the State of Colorado Office <br />of Attorney General, and IMC. <br />All field reclamation and remediation activities prescribed and required within the <br />Remedial Action Plan (RAP) as amended to the Consent Decree have been completed <br />and the monitoring and maintenance of these reclamation and remedial activities are <br />being conducted and will continue to be conducted, at least until calendar 2011. No <br />amendments to the Consent Decree and RAP were completed during the 2007/2008 <br />anniversary year (July 1, 2007 - July 1, 2008). <br />Site activities conducted during the anniversary year included: <br />1. RAP monitoring and maintenance (e.g., soil erosion, slope stability, revegetation, <br />diversion structures, etc.) were conducted where monitoring activities determined <br />repairs or maintenance was required. Spring and fall season diversion channel <br />debris removal was conducted at the Red Mountain and Pandora (Telluride) <br />operations. Debris removal and clean out of the High Country channels was <br />conducted during the summer when roadway access allowed entrance to the High <br />Country areas. Periodic water quality monitoring as per the schedule and <br />requirements prescribed in the RAP was conducted. All monitoring and <br />maintenance activities under the RAP were completed in a timely fashion and to <br />the specifications and requirements of the RAP. Water management from the Red <br />Mountain and Pandora mine workings was conducted throughout the reporting <br />period in accordance with the provisions of the RAP. Spring 2008 Mill level <br />lagoon maintenance was conducted during May and a 24" pipeline was installed <br />from the Mill level lagoon flume to the inlet of the infiltration ditch. Lagoon <br />maintenance activities included the cleaning of infiltration basins 1, 3, 4 and 5. <br />2. Mining and milling operations associated with the Idarado Red Mountain, <br />Pandora, and High Country sites are not and were not operationally active during <br />the permit year. No mining, beneficiation or waste rock disposal operations were <br />conducted during the permit year. <br />3. As discussed in previous annual reports (2005/2006, 2006/2007) the reclamation <br />work permitted under the 2004 Technical Revision (TR) was completed during <br />the 2005/2006 anniversary year. No further work in the area is contemplated in