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Varra Companies, Inc. <br />Office of Special Projects <br />1431 East 16 Street Greeley, Colorado 80631 Telephone (970) 353 -8310 Fax (970) 353 -4047 <br />AUGUST 2010 ANNUAL REPORT — M99 -006— Kurtz Resource Recovery & Land <br />Development Project <br />Status of operations has changed and an updated map and operational plan were approved <br />on 20 November 2009. Operations are continuing within the bottom and North wall of <br />Tract A, and will continue at this portion of the permit into 2011. The open pit walls <br />located in the northeast corner of tract a will continue to be graded, or partially graded to <br />3H:1V or less. No additional grading, resoiling, or revegetation is anticipated in the <br />coming year since operations remain within the pit bottom or on the active walls. <br />A Technical Revision to the permit to open for extraction Tract C in Section 29, will be <br />submitted on or near the due date of this Annual Report. A separate Technical Revision <br />administering the implementation of a conveyor route will also be submitted for OMLR <br />approval on or near this time. Any adjustments in operational activities will be attended <br />to in next years Annual Report. <br />1 <br />