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TURNPIKE MINING RESOURCE <br />ANNUAL REPORT <br />DMG PERMIT NO. M- 2004 - 009 -AM -1 <br />REPORT YEAR: <br />AUG. 4, 2010 THRU AUG. 4, 2011 <br />This DMG Regular 112 Permit (No. M- 2004 - 009 -AM -1) was approved by the Division <br />for operations on August 4, 2004 and the later amendment to this permit was approved on <br />June 21, 2006, expanding the area to be mined by approximately 75 acres. The total <br />permit area is 275 acres while the area permitted to be mined is 159 acres. Mining and <br />production of sand and gravel began on the site in September 2004. A TR (Technical <br />Revision) was approved in 2009, allowing a re- configuring of reclamation backfill, <br />primarily in the north one -half of the permit area, with no change in the area to be mined <br />During the report year, no mining occurred in the permit area. Reclamation (backfilling) <br />occurred in the south - central portion of the north one -half of the mining area. <br />Approximately 4.0 acres were backfilled, constituting reclamation for the year. All <br />backfilling was done on areas that were mined previous to the current reporting year. <br />During the next reporting year, approximately 7.0 acres may be mined to the east of the <br />current mined area in the south one -half of the permit area. The 50 -acre reservoir being <br />constructed in the central area of the north one -half of the permit area should be <br />completed which will complete reclamation in this area. Bond release for this portion of <br />the permit may be implemented at that time. <br />A map is attached to this report showing the areas and acreages described above. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Western Surety <br />Company of America in the full amount of $1,310,224.00, a figure sufficient to achieve <br />all reclamation requirements under the current permit. <br />A check in the amount of $791.00 is being submitted with this report to cover the Annual <br />Fee required to maintain this permit in good standing. <br />