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Calais <br />C..> es ource s <br />November 03, 2009 <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 and Fee's for Permit # M —1977 -410 <br />Cross Gold Mine / Caribou, Colorado — Boulder, County <br />Dear DRMS: <br />Please find enclosed our check for $ 259.00 dated October 13, 2009; check <br />number 4692 for our annual permit fees. <br />Written Annual Report: <br />The permit year November 04, 2008 through November 03, 2009 continued to be <br />a busy year for us at the Cross Mine operation. Numerous projects were completed <br />in preparation for our new mine expansion and startup planned for early 2010. <br />1. The Cross Mine office remained open all year round. <br />2. Full access to the mine was maintained through out the winter months. <br />3. The Cross Mine road from County Road 128 was rebuilt using our D8 Cat <br />and A 66 3 yard loader. This included ditch work to maintain our Storm <br />water permit in full compliance. <br />4. The Cross Mine and Caribou mine water discharge systems were maintained <br />on a seven day per week basis — 365 days for the year. This included daily <br />lime activity at the Cross, flow measurements, pH testing, sampling, weir <br />measurements in the upper Coon Track creek basin and visual observations. <br />Improvement work was completed on our 8 inch discharge pipe and pond <br />number two dam. This included concrete work and dike work. A significant <br />amount of reporting work was completed on time to the CDH and EPA on <br />our water systems. We continued to use Walsh Environmental Engineers to <br />complete the quarterly DMR's and statistical filing work. <br />5. Storm water permit work was completed as required and logged into our file <br />systems. <br />6. Work continued on the portal / snow shed timbering project. Old timbers <br />from the 1970's were replaced with new # 1 Douglas fir 6 x 6 and 8 x 8 posts <br />and caps. Rail work was completed in this area as well as ballast work. <br />7. Work continued on improvements to our tunnel level secondary escape way. <br />A study was completed to cost the improvements required to complete the <br />replacement of the top surface timber sets and snow cover / closure doorway. <br />P.®. Box 653 - Caribou Nederland, C080466-0653 Phone 303 2583806 Fax 303 °258°0402 <br />Email thomassh @earthlink.net Websit e= wrww.calaisresources.com <br />