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COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M-2005-089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1, 2009 TO MARCH 1, 2010 <br />1. TOTAL ACRES IN PERMIT AREA: 73 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 33.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: NONE <br />5. CURRENT TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION <br />APPROX. 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: NONE <br />7. APPROXIMATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: NONE <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: <br />NONE <br />A total of approximately 33 acres have been mined and/or disturbed with the removal of <br />overburden (O.B.) only on the site. No mining on this permit occurred during the <br />reporting year. This is the first year of this operation that no mining has occurred. <br />No reclamation, other than stockpiling of overburden, has occurred on the site and <br />backfilling will not occur for another few years. <br />No mining activities are planned for the next reporting year other than removal of product <br />from existing stockpiles. <br />The annual report accompanies this report and remains essentially unchanged from last <br />year's report map. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Western Surety <br />Company in the full amount of $184,814.00, a figure sufficient to achieve all reclamation <br />requirements under the current permit. <br />A check in the amount of $791.00 is being submitted with this report to cover the Annual <br />Fee required to maintain this permit in good standing.