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Notes: <br />Flag Resources,Inc SILT PIT <br />Permit # M- 1981 -202 2011 Annual Report <br />(7) We continued to mine in the area east of the Plant Site as shown on the map. We now have <br />8.88 acres ± of partially mined area ( \ \ \). We increased our topsoil piles by 2.85 acres this <br />year brings the total stockpiled topsoil to approximately 80,000 YD3 (brown) in the three <br />stockpile areas. We continue to mine the slopes 3h to lv so that no sloping will be necessary <br />when the lake fills with water. We are still using the Plant Site and it contains gravel <br />stockpiles, and the office facilities. <br />(9) The west lake area has refilled and covers approximately 44.47 acres ± (blue) and an <br />additional 34.24 acres on the east part of the mine will fill with water when mining ends. We <br />continue to fill and clean the settling ponds developed in 2006 (dark blue). Limited reclamation <br />is needed in the current mining area since the slopes are shaped as mining progresses only the <br />above water slopes will need revegetation. Sloping is complete on approximately 8600 linear <br />feet around the mined areas. Topsoil is stored along the perimeter of the mined area and the <br />river for use in recoiling the slopes. <br />(14) Weed control was done in June and October 2011 this year in accordance with the Garfield <br />Weed Management Plan on the perimeter of the mine and spot work was done on the Plant Site <br />areas and roadways. Escort and 2 -4 -D was applied to the Hoary Crest, and Kochia, and Telar <br />and Milestone was used on the Russian Knapweed. Ranger pro was use on grass areas to control <br />the weeds in those areas. Weed control will continue in 2011. <br />(11) Mining will continue east of the Plant Site in the area colored brown. We expect to <br />continue to mine on the floor of the partially mined area and into the striped area in the <br />northeast part of the mine next year. We will continue to monitor the west lake slopes and do <br />remedial work in that area if necessary. <br />(10) No reclamation is required next year in the Plant Site area or in the mining area east of it. <br />The western parcel may have additional seeding done as needed on the above water slopes next <br />year. We will continue to monitor the west lake slopes and do remedial work in that area if <br />necessary. <br />(19) The current bond is $55,400. Comparison of the evaluation done in 2010 by the Division <br />and found to be adequate. This annual report shows that less area is disturbed at this time <br />than allowed in the bond estimate. Reclamation, except seeding, is complete on the western <br />59.81 acres ± of the site. We feel the bond is adequate to cover all reclamation requirements <br />for this year. <br />