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<br />' Operation Status Map: Shows last year's disturbance areas, new disturbance areas, <br />and status of all disturbed areas. (Note: the South Lowland area is not included on the <br />map. However, no changes occurred there that were not previously described or are <br />updated in the description in this report.) <br />TONNAGE OF MATERIALS MINED: 194,034.59 <br /> <br /> <br />F1 <br /> <br /> <br /> <br /> <br /> <br /> <br />D <br />COMPLIANCE WITH ACREAGE LIMITATIONS: The inventory format used in the table <br />below is derived from the acreage accounting table included in the amended Reclamation Permit. So <br />long as the acreage value shown in Line 8 is not a negative value the terms of the acreage limitations <br />in the lease are in compliance. If the value in Line 8 is negative then, at the minimum, appropriate <br />action must be taken to immediately change the status of suitable land so Line 8 is at least zero and <br />preferably a positive number. <br />Disturbance Category Inventory <br /> Description of Land Category acres <br />Line 1 Total amount of land bonded (Bonded Boundary - <br />including south lowland) ;261.16 <br />Line 2 Land area actually disturbed in Bonded Boundary <br />(Includes mining and processing areas plus any stage <br />of reclamation that has not been released from bond.) 1198.05 <br />Line 3 Land bonded but undisturbed (Line 1 minus Line 2) 63.11 <br />Line 4 Bonded land contained in roads (only includes roads <br />that will remain after reclamation) 0 <br />Line 5 Bonded land seeded but not released from bond $8.82 <br />Line 6 Total excluded land (Line 4 plus Line 5) 58.82 <br />Line 7 Total land allowed in Land Board disturbance category <br />(this is a fixed value) 150 <br />Line 8 Additional disturbance allowed in Land Board <br />disturbance limitation (Line 7 minus Line 6) 91.18 <br />Line 9 Enter the smaller of Line 3 or Line 8 63.11 <br />i <br />' Note: Due to slight differences in map scaling between 2007 and 2008, some values <br />differ slightly if compared. Differences are less than 2%. <br />GEOLOGIC CONDITIONS ENCOUNTERED: No unusual or unexpected geologic <br />conditions were encountered in the last year. Deposits continued to be located using backhoe pits at <br />Status report for 2007 (July 15, 2007) Page 3 of 10 <br />- - II