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Annual Report — 2012 <br />Climax Molybdenum Company - Climax Mine <br />HWY 91 — Freemont Pass <br />Climax, Colorado 80429 <br />Permit No. M- 1977 -493 <br />According to C.R.S. 34 -32 -116, each year, on the anniversary date of the permit, an operator <br />shall submit the annual fee, an annual report and map showing the extent of current <br />disturbances to affected land, required monitoring information, reclamation accomplished to <br />date and during the preceding year, any new disturbance that is anticipated to occur during the <br />upcoming year, the dates for the beginning of active operations, and the date active operations <br />ceased for the year. <br />The 2012 Annual Report for the Climax Mine (Climax) follows the format of the questionnaire <br />that was included with the Division of Reclamation, Mining and Safety's (DRMS) Annual Fee <br />Invoice and Report Request letter dated February 1, 2013. Climax's responses to the <br />questionnaire are provided below. A signed copy of the questionnaire is in Appendix 1 and <br />other supporting documentation including maps and environmental monitoring data are included <br />as Appendices 2 and 3, respectively. <br />Climax Responses to DRMS Annual Report Questionnaire <br />1. Yes. There is an identification sign posted on the east facing wall of the Climax main gate <br />house that is visible from the entrance road. <br />2. Yes. Although boundaries are not marked in remote areas that are generally inaccessible <br />due to the rugged terrain of the site, property boundaries at potential public access points <br />are marked with Do Not Enter and No Trespassing signs. The Climax affected land <br />boundaries also are clearly delineated on publically available maps distributed with the AM- <br />06 application; Climax believes that signage at public access points together with the AM -06 <br />maps meet the intent of Rule 3.1.12(2) and (3). <br />3. No. Climax is not in final reclamation. <br />4. Excavation, processing, and hauling activities are currently ongoing at Climax. <br />5. Climax operates more than 180 days per year. <br />6. No. Climax has neither requested, nor been granted, approval for Temporary Cessation or <br />Intermittent Operation during the reporting year. <br />7. There are 4,038.5 acres of currently affected land, including mining and incomplete and /or <br />unreleased reclamation. Climax is permitted for 7,908 acres within the AM -06 affected land <br />boundary. <br />1 <br />