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Additional Pages <br />2010 Annual Report <br />Daniels Sand Pit #2 <br />M-1973-007-SG <br />Continental Materials Corporation <br />Anniversary Date: January 7 <br />Overview of Permit Year: During the 2009 operating year mining activity was at about an average pace. The <br />staking for the highway project has taken place and construction of the project is expected to occur in 2010. <br />This is the amendment that was approved in the 2008 Annual Plan. <br />Annual Report Maps: The annual report map is now based on the mining plan submitted in the 2009 report <br />and only modest changes have taken place. The actual limit of the westward mining in 2009 is now indicated on <br />the map along with the anticipated westward mining in 2010. <br />Affected Lands: The 2009 amount of affected land is the same as last year. In 2010 we will continue to <br />operate within the already designated affected land portion of the permit boundaries as shown on the map. <br />Revegetation: The site is stable and is not subject to erosion. No revegetation was done in the last year. <br />Expected Activity (2010): Mining activity in 2010 should be much like 2009 as the market has failed to <br />recover. With the economic downturn affecting construction rather severely it is hard to tell how much need <br />for sand will exist. Additional extraction is expected to slightly expand the current mining area slightly to the <br />west. Some sloping of the high walls will take place if the westward boundary is reached. It is anticipated that <br />this should take place in 2010; however this will be dictated by market conditions. As mentioned earlier, the <br />construction on the west and north boarder of the permit area will commence but this was addressed in the <br />2008 amendment. The construction schedule does not anticipate completion of the project in 2010. <br />Bonding: This operation is covered by a surety bond provided to the DBMS <br />Continental Materials 2010 Annual Report M-1973-007-SG Daniels Sand Pit #2 Page 1 of 1