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1.0 Henderson Mine <br />1.1 Disturbance <br />New disturbance at the Mine in 2012 was limited to incremental caving of the glory hole and exploratory <br />drilling. No changes were made to any of the mine openings (shafts). A site map of the Henderson Mine <br />indicating affected land boundary and disturbance areas is included in Appendix A. <br />1.2 Interim Reclamation <br />Interim reclamation was not carried out at the Henderson Mine in 2012. <br />Routine maintenance of erosion and sediment control structures was completed during the year. <br />1.3 Prospecting <br />1.3.1 Prospecting Contact <br />The contact person for the Notice of Intent (NOI) and prospecting activities is: <br />Bryce Romig <br />Environmental Manager <br />Climax Molybdenum Company <br />Henderson Operations <br />P.O. Box 68 <br />1746 County Rd. 202 <br />Empire, CO 80438 <br />(303) 569 -3221, ext. 1204 <br />1.3.2 Prospecting Activities <br />Annual Report — 2012 <br />Henderson Mine and Mill Reclamation Activities <br />Permit No. M- 1977 -342 <br />A surface drill program was initiated in July 2011 under Notice of Intent (NOI) P -2011 -014 on the URAD <br />Valley side of Red Mountain and Harrison Mountain. The original NOI included the construction of five <br />(5) drill pads and corresponding access roads in the vicinity of Red Mountain in 2011 and 2012. A <br />modification request was submitted and approved in 2012 for the construction of three (3) additional drill <br />pads (Sites 6 -8) and corresponding road construction on the adjacent Harrison Mountain, and an <br />extension for drilling activities at all drill pads (Sites 1 -8) through October 31, 2013. The drill pads are <br />indicated on the location figure included in Attachment A. <br />2012 activities included the drilling of 2 new holes at the previously constructed drill pad Site 2. The <br />collar locations in Latitude and Longitude are as follows: <br />Page 1 <br />