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1 <br />COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M- 2005 -089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1, 2011 TO MARCH 1, 2012 <br />1. TOTAL ACRES IN PERMIT AREA: 73 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 33.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: NONE <br />5. CURRENT TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION: APPROX. 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: NONE <br />7. APPROXIMATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: —4.0 <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: NONE <br />This permit was approved for Temporary Cessation on August 16, 2011 and which is good until February 1, <br />2014, should temporary cessation be required for this time period. It is anticipated that operations may resume <br />on this site beginning in summer 2012, but possibly not until summer 2013. <br />A Technical Revision (TR) to the mine and reclamation plan was approved on August 2, 2011 that allowed <br />changes to the plan(s) for a weed control plan and seeding of topsoil stockpiles for erosion control. Weed <br />control was implemented in October 2011 and proof of that activity was sent to the DRMS (Eric Scott). Erosion <br />control of the stockpiles will be accomplished per the TR during the next reporting period. <br />A total of approximately 33 acres have been mined for sand and gravel and /or disturbed with the removal of <br />overburden (O.B.) only on the site. No mining on this permit occurred during the reporting year. <br />No reclamation has occurred on the site during the report year and backfilling will not occur for another few <br />years. <br />No annual report map accompanies this report as no activities have occurred on the site that would require any <br />significant changes to the map. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Western Surety Company in the full amount of <br />$184,814.00, a figure sufficient to achieve 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 Fee required to <br />maintain this permit in good standing. <br />