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Page 2 <br />DRMS Annual Report <br />November 03, 2011 <br />Cross Gold Mine Permit Number M- 1977 -410 <br />6. Implementing an extensive MSHA safety training program and detailed safety training <br />record keeping system. We completed and have on going MSHA approved employee <br />safety training and first aid training. We also conduct in depth weekly safety meetings <br />at the mine office. Up to date escape way and ventilation maps are on file with MSHA <br />and the Front Range Mine Rescue Team and the Henderson Mine Rescue Team. Both <br />teams have made visits to the mine for onsite inspections. <br />7. Obtaining full licensing and permitting from the ATF for our explosives magazines and <br />explosive purchasing. <br />8. The construction of a new employee parking lot. <br />9. Working with Bruce Humphries on our Permit Expansion which has been filed with the <br />DRMS. We have also completed all of our permit filings with the Boulder County Land <br />Use Office. <br />10. We have a new chief geologist working full time as of June 2011. She is updating all of <br />our historic mine maps, geologic data base, safety maps, and is working with Bruce <br />Humphries on our permit applications. Her name is Leah Page and her contact email is <br />leahipage @gmail.com. <br />11. We commenced small scale production mining on the Intermediate Apache vein on <br />the tunnel level and produced + 120 tons of gold /silver ore that was shipped to the <br />Kinross Mill located in Republic, Washington. This first test shipment worked out in a <br />satisfactory manor for us, so we are preparing now to mine and ship a 2 " batch of ore <br />that will total 500 tons of newly mined ore. <br />12. We are currently driving an underground drift from the Intermediate Apache Tunnel <br />level to intersect the North Apache vein. We expect to hit this vein in November and <br />will place it into small scale production. <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 />