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Varra Companies, Inc. <br />Office of Special Projects <br />1431 Eastle Street Greeley. Colorado 80631 Telephone (970) 353-8310 Fax (970 353-4047 <br />AUGUST 2008 ANNUAL REPORT - M99-006- Kurtz Resource Recovery & Land <br />Development Project <br />The status of operations is nearly unchanged from the previous years annual report map. <br />Extraction involves the entire Tracts D and E, and is expected to continue in these areas <br />through 2008-9. Extraction in the Southern half of Tract E is essentially exhausted and <br />continues in the Northern half A small dry plant has been set up within the upper bench <br />of the central area of Tract D with extraction continuing along the center of the tract. The <br />western portion recycles plant water and wash fines for remining, as reflected in previous <br />annual report maps. <br />Additionally, stockpile activities occupy the remainder of Tract F. There is no planned <br />reclamation beyond concurrent slopping and re-soiling reported and shown in previous <br />annual reports and continuing as possible along completed portions of Tract D, primarily <br />along the Southern boundary. Finished slopes are being stabilized temporarily with oats <br />until final seeding efforts commence once continuity along slope aspects is established. <br />Weed management will proceed according to the June 2005 Technical Revision.