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Additional Sheet <br />2011 Annual Report <br />Coal Creek Resources <br />M-1988-044 <br />Schmidt Construction Company <br />Anniversary Date: March 28 <br />Overview of Permit Year: During the 2010/2011 operating year all of the mining activity occurred in the <br />Upland Mining area and showed a slight increase. The increase was due to opening a small amount of <br />previously undisturbed land in the new amendment area. It was not due to increased production as demand for <br />sand remained extremely low. <br />Annual Report Maps: There is one annual report map which shows the upland mining areas. Nothing changed <br />in the lowland area and therefore no map of that is provided, but acreages for the South Lowland are shown. <br />Affected Lands: The maps contain the necessary information regarding the amount of affected land and land <br />not yet released and the current bonded boundaries. <br />Reclamation: Land in some state of reclamation increased in the last year. Three parcels that were still being <br />used for construction fill in 2010 have now been backfilled and graded and one parcel topsoiled. Seeding will <br />occur this next permit year. <br />Continued monitoring of the exclosures shows continued gains in the growth of the protected woody <br />vegetation. Significant gains have been made in the regrowth of cottonwood and willow in the exclosure areas. <br />Outside the exclosures and all along the stream, new cottonwood is gaining in height and cover at a rapid rate. <br />In the last year, there appears to be some additional declines in the oldest cottonwood stands. This is expected <br />as those cottonwoods so old they are expected to die, but with the rapid regrowth along the stream corridor, <br />now that cattle have been removed, will replace the older stands with new stands of cottonwood. Vegetation <br />sampling will continue in Exclosures 1 and 2, but is no longer needed in Exclosures 3, 4, and 5. The Army <br />Corps of Engineers desires photographic monitoring continue there along with photographic and sampling in <br />Exclosures 1 and 2. <br />Work Anticipated in 2011/2012: As was the case last year, future mining is quite unpredictable and totally <br />dependent on the rate of economic recovery. At this time demand remains low, but there do appear to be some <br />hints that demand might increase some later this year, perhaps by summer. We'll see. <br />Schmidt Construction 2011 Annual Report M-1988-044 Coal Creek Resources Page 1 of 1