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Idarado Mining Company <br />2008/2009 Annual Report <br />Permit Number: M-1977-403-HR <br />Anniversary Date: July 1, 2009 <br />Idarado Mining Company (IMC) is implementing remediation and reclamation activities <br />as per the Consent Decree (D. Colorado Civil Action No. 83-C-2385) between the State <br />of Colorado Department of Public Health and Environment, the State of Colorado Office <br />of Attorney General, and IMC. <br />All field reclamation and remediation activities prescribed and required with the <br />Remedial Action Plan (RAP) as amended to the Consent Decree have been completed <br />and monitoring and maintenance of these reclamation and remedial activities are being <br />,conducted and will continue to be conducted, at least until calendar year 2011. Four <br />amendments to the Consent Decree and RAP were submitted during the 2008/2009 <br />anniversary year (July 1 2008- July 1, 2009). These RAP amendment pertain to <br />management of Mill Lagoon Sediments, Telluride Tailing Pile 6 Seep management, the <br />Mountainside Diversion and Tailing Runoff Diversion or Collection Channels, and Bare <br />Ground Remediation. <br />Site activities conducted during the anniversary year included: <br />1. RAP monitoring and maintenance (i.e, soil erosion, slope stability;, revegetation, <br />diversion structures, etc.) were conducted where monitoring activities <br />determined repairs or maintenance was required. Spring and fall season <br />diversion channel debris removal and channel repair was conducted at the Red <br />Mountain and Telluride operations, as necessary. Debris removal, clean out and <br />repair of the High Country channels was conducted during the summer when <br />roadway access allowed entrance to the High Country areas. Periodic water <br />quality monitoring as per the schedule and requirements prescribed in the RAP <br />was conducted. All monitoring and maintenance activities under the RAP were <br />completed to the specifications and requirements of the RAP. Water <br />management from the Red Mountain and Telluride mine workings was <br />conducted throughout the reporting period in accordance with the provisions of <br />the RAP. <br />2. Mining and milling operations associated with the Idarado Red Mountain, <br />Telluride and High country site are not and were not operational during the <br />permit year. No mining, beneficiation, or waste rock/tailing disposal operations <br />were conducted during the permit year. <br />3. As discussed in previous annual reports, the reclamation work permitted under <br />the 2004 Technical Revision JR) was completed during the 2005/2006 <br />anniversary year. No further work in the area is contemplated, unless some of <br />the material placed at this site is used for bare ground remediation. If the site is