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Permit Number: M- 1977 - 403 -HR <br />Anniversary Date: July 1, 2012 <br />Idarado Mining Company <br />2011 /2012 Annual Report <br />Idarado Mining Company (IMC) is implementing remediation and reclamation activities pursuant to the <br />Consent Decree (D. Colorado Civil Action No. 83 -C -2385) between the State of Colorado Department of <br />Public Health and Environment (CDPHE), the State of Colorado Office of Attorney General, and IMC. <br />All field reclamation and remediation activities prescribed by the Remedial Action Plan (RAP) have been <br />completed. Monitoring and maintenance of these reclamation and remedial activities are being performed <br />and will continue to be conducted until each of the performance criteria is achieved or modified. <br />Site activities conducted during the anniversary year included: <br />1. Conducting operation and maintenance of the RAP remedial elements where monitoring activities <br />determined that repairs or maintenance was required. All monitoring and maintenance activities <br />were completed according to the specifications and requirements of the RAP. Operation, <br />maintenance and monitoring activities consist of: <br />• Inspecting, cleaning and repairing, as necessary, runoff diversion and conveyance channel <br />systems at the Telluride and Red Mountain tailing piles during the spring and fall seasons, <br />• Inspecting, cleaning and repairing, as necessary, runoff diversion and conveyance channels in <br />the High Country during the summer when the High Country areas are accessible, <br />• Performing diversion channel inspections and erosion repairs, as necessary, following <br />substantial storm events, <br />• Conducting visual inspections of the Telluride and Red Mountain tailing piles, <br />• Conducting and monitoring rodent control on the Telluride and Red Mountain tailing piles, <br />• Performing remediation of bare areas on Telluride Tailing Pile 4 according to the approved <br />Bare Area Work Plan for the Idarado Tailing Piles, <br />• Managing water from the Red Mountain and Telluride underground mine workings throughout <br />the reporting period in accordance with the RAP provisions, including removal of sediment <br />from Mill Level infiltration lagoon #1, <br />• Completing excavation and lining of the Mill Level overflow lagoon, with placement of the <br />excavated material on Telluride Tailing Pile 5, as approved by CDPHE, <br />• Monitoring vegetation cover and density of the Telluride and Red Mountain tailing piles, <br />• Performing periodic water quality monitoring according to the schedule and requirements <br />prescribed in the RAP. <br />2. Mining and milling operations associated with the Idarado Mine are not and were not operational <br />during the permit year. No mining beneficiation or rock waste /tailing disposal operations were <br />conducted during the permit year. <br />3. No new surface land disturbances were conducted in the 2011/2012 anniversary year. <br />