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November '30,2010 C- 1981- 008/New Horizon Mine MLT <br />GENERAL MINE PLAN COMPLANCE: <br />• The mine was still shut down at the time of the inspection, due to ongoing repairs to a turbine <br />at the San Miguel power plant in Nucla. Mr. Fry indicated that mining might resume on <br />Monday, December 6th. <br />ROADS — Rule 4.03 - Construction 4.03.1(3) / 4.03.2(3); Drainage 4.03.1(4) / 4.03.2(4); <br />Surfacing and Maintenance 4.03.1(5) and (6) / 4.03.2(5) and (6); Reclamation <br />4.03.1(7)/4.03.2(7): <br />• Reconstruction of W. 5th Avenue, which extends westward from the north side of the <br />facilities area to intersect with 2700 Road, has been completed, and the road is now open to <br />traffic. Heavy use of the road is not anticipated; it serves mainly local traffic. <br />REVEGETATION — Rule 4.15 - Vegetative Cover; Timing: <br />• Fall seeding was recently completed on portions of the Lloyd parcel that were topsoiled in <br />2010. A portion of the former BB Road Detour (tie -in with BB Road) reclaimed previously <br />was re- seeded this fall, as the original seeding had not been successful. <br />• Mr. Fry had noted the presence of a low - growing, prickly weed coming up in the topsoil <br />placed on the Lloyd property. Subsequent to the inspection, the weed was identified as <br />Buffalobur (Solanum rostratum). <br />SUPPORT FACILITIES - Rule 4.04: <br />• During the October 2010 inspection, it was noted that the liner covering the berm at the fuel <br />storage facility had become worn in a few spots and was no longer impervious. The worn <br />areas have now been successfully repaired using a single large patch which is securely <br />affixed (Photo 2). <br />RECLAMATION PLAN COMPLIANCE — Rule 4.13 <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 Page 3 of 5 <br />