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reg Lewicki And Associates <br />11541 Warrington Court Phone: (303) 346-5196 Fax (303)-346-6934 <br />Parker, CO USA 80138 E-Mail: greg@lewicki.biz <br />September 16, 2008 <br />Jim Dupler <br />Colorado Division of Minerals and Geology <br />Minerals Section <br />1313 Sherman Street 2nd Floor <br />Denver, CO 80203-2273 <br />Re : Annual Report B&B Excavating, Inc. Carol Ann Pit <br />MLR No. M-97-026 Tax I.D.# 84-0601382 <br />Dear Jim: <br />Enclosed is the Annual Report for the past year for The Carol Ann Pit of B&B <br />Excavating, Inc., including map and report form. Past records show that the annual <br />date for the pit is September 8 of each year. The financial warranty for the permit is <br />$63,444 and the total permit area is 30.0 acres. The mining and reclamation plan is <br />phased. <br />The following information is provided to comply with Rule 2.4.1: <br />(1) Approximately 2.95 acres of new disturbance occurred in the past year on the <br />southwest side of the permit area, which is the final disturbance of the mine. The total <br />disturbed area is now 27.8 acres. Full mining was completed on the east portion of the <br />property in 2005. That area was seeded and mulched in 2007 and the vegetation is in <br />the process of re-establishment. All salvageable topsoil has been stockpiled along the <br />berm on the south edge of the property as shown on the map and as was required by <br />the permit. Additional topsoil has been established on the north side of the disturbance <br />west of the drainage. Mining equipment was present on the site at the end of August, <br />2008. All disturbed areas are well-protected with berms and silt fences to trap erosion.