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Varra Companies, Inc. <br />Office of Special Projects <br />1431 East 16'h Street Greeley, Colorado 80631 Teleahone (970) 353-8310 Fax(970)353-4047 <br />OCTOBER 2008 ANNUAL REPORT - M1978-287 - VADER PIT <br />There are no substantive changes from the previous years Annual Report. Extraction will occur <br />sporadically on an as needed bases. We do not anticipate substantial removal of materials. No <br />reclamation occurred last year. No reclamation is planned in the coming year. Much of the <br />activity at this location is the processing of stockpiled material brought in from the adjacent <br />Seahorse permitted operations.