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1996 ANNUAL UPDATE <br /> (1995 MLR Report Year) <br /> SUNNYSIDE MINE BULKHEADS <br /> Area Inventory of Seeps, Springs and Flowing Adits <br /> Background: <br /> Sunnyside Gold Corporation has made four commitments (Appendix B-1) <br /> to the Division of Minerals and Geology (DMG) and Mined Land <br /> Reclamation Board as a condition of approval for TR-14 , File No. M- <br /> 77-378 (Sunnyside Mine - Bulkhead Installation) . Of these four <br /> commitments, three initially required annual reporting of data. <br /> Any data and corresponding narrative will be contained in this <br /> section of the annual report. <br /> Additional commitments by SGC include: <br /> 1) Colorado Department of Public Health and Environment (CDPHE) <br /> would receive this report and other correspondence related to <br /> the bulkhead program. <br /> 2) SGC will work with DMG and CDPHE-WQCD to insure compliance <br /> with clean water laws and valid regulations promulgated <br /> thereunder. <br /> Background update: <br /> During the report year, SGC completed construction of the bulkheads <br /> as approved in TR-14/TR-16. Construction of the bulkheads <br /> according to plan has been certified and this certification <br /> accepted by DMG. <br /> SGC had filed for Declaratory Judgement to clarify the status of <br /> seeps, springs and adit flows that may increase due to the <br /> bulkheads. This action moved through the process but was delayed <br /> by request of both parties because of progress in negotiations for <br /> settlement being held seperately. <br /> A settlement agreement was not in place by the end of calender year <br /> or MLR reporting year March 1996 but has since been finalized and <br /> entered by the Court on May 8, 1996. <br />