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0 4,0 0 <br />Calais6,?®??o? <br />06116* <br />0 ®®00: " <br />so <br />November 05, 2008 <br />Resources <br />Gold & Silver Exploration <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Reference: Annual Report / Cross Mine / Permit Number: M-1977410 <br />Dear Division of Reclamation, Mining and Safety: <br />I'm pleased to report on our activity at the Cross Gold Mine at Caribou, <br />Colorado for the period November 04, 2007 through November 03, 2008. Please <br />don't hesitate to contact me if you have any questions. <br />Work continued steadily through this period between management and Walsh <br />Environmental Engineers and Scientists to prepare permit applications for the <br />Boulder County Planning Commission and the Boulder County Commissioners. <br />Two thick books were finalized and presented to the Boulder County Land Use <br />Office in June of 2008. In a public meeting with the Boulder County Planning <br />Commission in July, the Planning Commission gave unanimous approval to our new <br />200 tpd small mine; mill and environmental systems plant subject to normal <br />engineering plans and compliance with existing permits. In Public meetings with the <br />Boulder County Commissioners, the same approval was obtained on October 03, <br />2008. The management of Calais was extremely pleased with the Boulder County <br />decisions and cooperation. During the year we also obtained our new ATF <br />Explosives permits and CDH Water Discharge permit and Storm water permits. <br />The Company also had SRK Engineers complete a NI-43-101 study on the Cross <br />Gold Mine. Metallurgical work also took place at RDI, Inc. in Wheat ridge, <br />Colorado. <br />The Cross Gold Mine office remained open all year round. Our CDH/NPDES <br />permit was fully maintained and the mine water system was inspected and <br />maintained on a seven day per week basis throughout this period. Improvements <br />were made to the water discharge system. Improvements were also made to repair <br />high wind damage on our large metal green building at the Cross Mine by Black <br />Roofing Co. of Boulder, Colorado. <br />Between March and June, Eric Clifford and I completed extensive rehab work <br />in the main Cross Mine Shop area, the train trestle area, the snow shed and portal <br />area and on equipment maintenance. We also had an MSHA compliance inspection <br />and renewed our MSHA permit and reporting number. <br />No underground mine programs took place during this period and no surface or <br />underground drill programs took place during this period due to budgeting <br />problems. No land was disturbed which would require any form of reclamation. <br />P0. Box 653 - Caribou . Nederland, CO 80466-0653 ® Phone 303.258.3806 • Fax 303.258.0402 <br />Finail.thnmassh(a earthlink.nef . Wahcite.www.calaisresnnrres.enm