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I A i <br />TURNPIKE MINING RESOURCE <br />ANNUAL REPORT <br />DMG PERMIT NO. M- 2004 - 009 -AM -2 <br />REPORT YEAR: <br />AUG. 4, 2012 THRU AUG. 4, 2013 <br />This DMG Regular 112 Permit (No. M- 2004 -009) was approved by the Division for <br />operations on August 4, 2004 and the most recent amendment (AM -2) to this permit was <br />approved on March 18, 2013, changing the post- mining land use and reclamation plan. <br />Also, on June 26, 2013, an approval for acreage reduction was received reducing the <br />permit area by approximately 75 acres encompassing the finished reservoir, the waste <br />water treatment plant and a small reclaimed area in the northwest of the permit. The total <br />permit area is now approximately 200 acres with the only areas remaining to be mined <br />being in the south "Triangle" area north of US Hwy. -52, the far west side area west of <br />Boulder Cr. and a small area remaining under the old plant site now containing <br />stockpiles. <br />During the reporting year, a small area consisting of approximately 3 acres was mined in <br />the northeast area of the "Triangle" (see map). Reclamation for the reporting year <br />consisted entirely of completing the water - storage reservoir in the north - central portion of <br />the permit area and releasing it from further reclamation liabilities. Approximately 4.0 <br />acres may be mined during the next reporting year in the same area as mining occurred <br />during this reporting year <br />A map is attached to this report showing the areas and acreages described above. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Great American <br />Insurance Company in the full amount of $1,025,887.00, a figure sufficient to achieve all <br />reclamation requirements under the current permit. <br />A check in the amount of $791.00 is being submitted with this report to cover the Annual <br />Fee required to maintain this permit in good standing. <br />