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Flag Resources, Inc. Silt Pit <br />Permit # M- 1981 - 202 -SG 2012 Annual Report <br />Notes: <br />(7) We continued to mine in the area east of the Plant Site as shown on the map. We now <br />have 5.92 acres ± of partially mined area ( \ \ \). No new soils were placed on the topsoil <br />piles and the total stockpiled topsoil remains at approximately 80,000 YD3 (brown) in the <br />three stockpile areas. We continue to mine the slopes 3h to iv so that no sloping will be <br />necessary when the lake fills with water. We are still using the Plant Site and it contains <br />gravel stockpiles, and the office facilities. <br />(9) The west lake area has refilled and covers approximately 44.47 acres ± (blue) and an <br />additional 40.16 acres on the east part of the mine will fill with water when mining ends. <br />We continue to fill and clean the settling ponds developed in 2006 (dark blue). Limited <br />reclamation is needed in the current mining area since the slopes are shaped as mining <br />progresses only the above water slopes will need revegetation. Sloping is complete on <br />approximately 8600 linear feet around the mined areas. Topsoil is stored along the <br />perimeter of the mined area and the river for use in resoiling the slopes. <br />(14) Weed control was done in June 2012 this year in accordance with the Garfield Weed <br />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 <br />Telar and Milestone was used on the Russian Knapweed. Ranger pro was use on grass areas <br />to control the weeds in those areas. Weed control will continue in 2013. <br />(11) Mining will continue east of the Plant Site. We will continue to mine on the floor of <br />the partially mined area and into the striped area in the northeast part of the mine next <br />year. We will continue to monitor the west lake slopes and do remedial work in that area <br />if necessary. <br />(10) No reclamation is required next year in the Plant Site area or in the mining area east <br />of it. The western parcel may have additional seeding done as needed on the above water <br />slopes next year. We will continue to monitor the west lake slopes and do remedial work in <br />that area if necessary. <br />(19) The current bond is $55,400. Comparison of the evaluation done in 2010, by the <br />Division, was found to be adequate. This annual report shows that Tess area is disturbed <br />at this time than allowed in the bond estimate. Reclamation, except seeding, is complete <br />on the western 59.81 acres ± of the site. We feel the bond is adequate to cover all <br />reclamation requirements for this year. <br />