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Q~ <br />Lilly Mine Annual Report <br />One Securities Centre <br />3490 Piedmont Road, Suite 1300 <br />Atlanta, GA 30305 <br />404.634.9100 <br />Background <br />In March of 2008, Quikrete Materials, LLC acquired the Lilly Mines for the <br />purpose of mining marble for processing at a site in Wellsboro Colorado. This is the first <br />annual report submitted under the new ownership and covers activities for 2008. <br />2008 Activities <br />In early 2008 the former owners of the Lilly mines signed an agreement with <br />Kiewit Western to mine, crush, and haul marble from the Lilly Mines. After the acquisition <br />Quikrete Materials, LLC kept the agreement in place with Kiewit. <br />Kiewit mobilized in late May 2008 and arrived on site with an office, a portable <br />crusher, a wheel loader, a tread excavator, bulldozer, and a drill rig. Eventually they sub- <br />contracted local truckers to haul ore from the mine to the plant. <br />Primary mining activity took place in the lower bench and followed the ore strike <br />in a northern direction. Ore was removed by drilling, blasting, and ripping new benches into <br />the previous mining area. Kiewit did not extend the width of the mine and did minimal <br />stripping. Because there was very little change in the mining area except for the new bench <br />development on the lower south end, no new mine map is included. <br />Kiewit completed their activities in September 2008 and removed all of their <br />equipment. Approximately 60,000 tons were processed but about 40% of the ore remains at <br />the mine site in stockpiles. <br />Planned 2009 Activities <br />The mining campaign in 2008 was able to produce enough ore to feed the plant <br />through 2009. At this time it is not expected that there will be any mining activities in 2009. <br />Quikrete Materials, LLC have not yet decided if the ore left at the Lilly Mines will be hauled to <br />the Wellsboro facility or will remain in place unti12010. Throughout 2009, plant employees <br />will routinely inspect the mine. <br />Vincent E Sadowski <br />Regional VP of Operations <br />Quikrete Materials, LLC <br />wr+rb~yjOVes <br />CEME~ <br />1 <br />;F <br />i <br />