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3.0 STATUS OF PROJECT OPERATIONS (2009 - 2010) <br />3.1 Current Status/Activities <br />The American Soda Yankee Gulch project is presently in interim status with no solution <br />mining or processing taking place. Ongoing activities during the report period were <br />focused on the well field and test mine pad. These activities include inspection and <br />maintenance of storm water control features, security, and maintenance of access <br />roads, vegetation establishment and control of noxious weeds. Additionally, <br />mechanical integrity testing (MIT) of the all long term stand-by wells is conducted once <br />every two years. No MIT testing was conducted during the report period. No new <br />disturbance or reclamation activity occurred in the well field during the report period. <br />In September 2008 MIT testing was done on all long term stand-by status well strings. <br />Table 1 below provides the status of the production wells and indicates which wells <br />remaining in stand-by status were tested for mechanical integrity in 2008. <br />20-33 (C03858-04560) Bridge Plugs Set 9/2/04 Long term stand-by <br /> P & A Short 12/19/08 Short String Plugged.,and Abandoned <br /> String Only after failure to 'ass MIT 9/10/2008 <br />20-36 (C03858-04562 Bridge Plugs Set 9/1/04 Lon term stand-by <br />20-74 (C03858-04563) Bridge Plugs Set 8/19/04 Lonq term stand-by <br />28-21 (C03858-04567) Bridge Plugs Set <br />P & A Short <br />String Only <br />7/21/04 Long term stand-by <br />12/18/08 Short String Plugged and Abandoned- <br />after failure to pass MIT 9/11/2008> <br />6 (C03858-04573) I Bridge Plugs Set <br />American Soda, L.L.P. <br />DBMS Annual Report <br />July 8, 2010 <br />8/13/04 Longterm stand7by <br />3