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Additional Pages <br />2011 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 2010 operating year mining activity was at about an average pace. <br />Construction of the new highway project is well under way on the east and north boundaries of the pit This is <br />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 2010 is now indicated on <br />the map along with the anticipated northward mining in 2011. <br />Affected. 7 ands: The 2010 amount of affected land is the same as last year. In 2011 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 (2011): Mining activity in 2011 should be much like 2010 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 />north. The westward boundary was not reached until virtually the end of the year so no sloping took place on <br />this area. Some sloping will take place in 2011 but much will depend on the road construction on the westward <br />boundary of the pit As mentioned earlier, two bridges and part of the roadway are under construction and <br />have actually impacted the northward edge of the current primary mining pit by having overburden from the <br />construction project being temporarily stockpiled beyond the construction limits. The construction schedule <br />does anticipate completion of the project in 2011. <br />Bonding: This operation is covered by a surety bond provided to the DRMS <br />Continental Materials 2011 Annual Report M-1973-007-SG Daniels Sand Pit #2 Page 1 of 1