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Idarado Mining Company <br />2010 /2011 Annual Report <br />June 27, 2011 <br />Page 2 <br />As reported with the 2009/2010 the Red Mountain Mill Warehouse collapsed <br />during the 2009/2010 winter season. Structure demolition and material salvage <br />or off -site disposal of building materials from the Red Mountain Mill warehouse <br />and attaching motor shed was completed during the year. The demolition of <br />these facilities was prompted by the snow - loading conditions and partial <br />collapse of the structures during the winter /spring seasons of 2009/2010. Prior <br />to demolition activities the structures were inspected for asbestos - containing <br />materials (ACMs), identified ACM's were properly removed and disposed of <br />off -site, and the ACM removal cleared by a certified and licensed asbestos <br />inspector and asbestos manager. Prior to demolition, a building demolition <br />permit was secured by the State of Colorado Department of Public Health and <br />Environment — Air Quality Bureau. Demolition activities were completed <br />during the summer of 2010. All demolition and materials management was <br />completed prior to completion of the 2010 field season. <br />During the 2010 field season, the noxious weed program continued with <br />inspections and control measures at the Telluride and Red Mountain permit <br />areas. The 2010 inspection, as the previous inspection in 2009 was conducted <br />by Mrs. Rebecca Bilodeau, a third -party biologist working for Advanced <br />Environmental Services, Inc. of Loveland. Mrs. Bilodeau provided the weed <br />identification and prescribed physical and chemical control methods. The 2010 <br />inspection found that the Oxford Daisy, Canadian Thistle, Yellow Toadflax, and <br />Mullen determined in 2009 has mostly been controlled and eradicated. A few <br />more infestations of Canadian Thistle were identified on the Red Mountain site <br />which were chemically treated to try and control. An inspection during the 2011 <br />field season will be conducted to follow up on previous control measures. <br />