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C74%.1111_./....11M <br />IRLIECIALJ11 -s <br />November 02, 2011 <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Reference: Annual Fee — and Report / Permit: M- 1977 -410 <br />Dear Division of Reclamation, Mining and Safety: <br />Please find enclosed our check number 1594 in the amount of $ 259.00 for our annual permit <br />renewal. <br />Attached as part of this report is the Division Cover Letter and the Annual Report Form <br />completed on 11/03/11. <br />I'm pleased to report on the following activity during the past twelve months at the Cross <br />Gold Mine. This has been an extremely busy year for us as a small underground mine <br />operation. During this reporting period we have completed numerous work projects which <br />include: <br />1. The entire restoration of our Cross Mine surface plant facilities. <br />2. Rehabilitation work on all of our underground mine equipment. <br />3. Major servicing and repair work on our Gardner Denver ESOF 750 CFM air compressor. <br />4. Rebuilding our 150 foot portal and snow shed. <br />5. Installing a new 480/240/120 volt electrical power system from the main Cross Mine <br />shop to our tunnel level underground workings. <br />Calais Resources, Inc. <br />P.O. Box 653 • 4415 Caribou Rd. <br />Nederland, CO 80466 <br />Phone: (303) 258 -3806 • Fax: (303) 258 -0402 <br />www.calaisresources.com <br />