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Marr Mine and Loadout Apr 27, 2011 <br />2010 Reclamation Report <br />The attached DRMS form categorizes the reclamation acreage, as per OSM request, and <br />summarizes the total mining-related disturbance and reclamation at the Kerr/Mary Mine and <br />Loadout since the initiation of mining. <br />DRMS Report Form: Acreage reported in previous DRMS Forms pertaining to acreage <br />released for Phase 1 at the Loadout site has been in error. Bond Release No.2 (SL-02) <br />included the Loadout site for Phase 1 Bond Release. However, to update the acreage number <br />shown on the DRMS Form was apparently overlooked and did not include the Loadout in the <br />total acres shown as Phase 1 Released. The 2010 DRMS Form has been updated to include <br />the Loadout (11.7 acres) which changes the total acres for `Phase 1' Bond Release to 401.4 <br />acres. <br />Bond Release No.4 (SL-04) included 6.9 acres at the Loadout approved for `Phase 2' Release. <br />The entrance road and shop building (approved as permanent) apparently were not included in <br />the Phase 2 Release. Acreage not yet approved for Phase 3 Bond Release includes the <br />Loadout (11.7 acres) and at the mine site (17 acres) which calculates to 28.7 acres. Total <br />acreage to date, that has been released for the Phase 3 Bond Release is 372.7 acres. <br />If you have any questions or require further information or clarification, please contact the <br />undersigned. <br />Sincerely, <br />eorge V Patterson <br />General Mine Mgr <br />6