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					                                                       Con Mine
                                                       Box 2000, Yellowknife, NT X1A 2M1
                                                       Phone: (867) 766-5317 Fax: (867) 873-6357
                                                       E-Mail: Ron.Connell@Newmont.com

MIRAMAR NORTHERN MINING LTD.
CON MINE
February 28, 2011

Mackenzie Valley Land and Water Board
P.O. Box 2130
Yellowknife, NT
X1A 2P6
Attention:   W. Hagen, Chair
Re:   Con Mine Reclamation Status Report – Effective December 31, 2010
Dear Mr. Hagen:
As per Part B, Item 2. c) of Water License MV2007L8–0025, Miramar Northern Mining
Ltd. – Con Mine (MNML) submits an updated Reclamation Status Report and hereby
applies for a reduction of the reclamation security deposit. This application for reduction
in the amount of the security is based on closure and reclamation work carried out
between January 01 and December 31, 2010, as outlined in the approved final Closure
and Reclamation Plan (C&R Plan) for Con Mine. The project groups are specified
below, and the project descriptions conform to those shown in the Final Closure Plan
RECLAIM Model V 5.1 supplied to MNML on July 15, 2009. There are three
attachments as follows:
Attachment 1 is an Excel spreadsheet that identifies closure and reclamation work
completed to December 31, 2010, the value associated with this work as identified in
RECLAIM model version 5.1 dated October 14, 2008, and an updated estimate of the
mine closure and reclamation liability. The total value of the work completed in 2010 is
$2,130,191. In addition, the cash portion of the DIAND Trust (Con Mine Reclamation
Trust) accrued interest in the amount of $32,896. The balance at December 31, 2010 is
$11,524,372. New comments on the spreadsheet are highlighted in yellow.
In June 2010, the MVLWB moved to amend Part B, Items 2 and 3 of Water License
MV2007L8-0025 to decrease the amount of the Reclamation Security from $15,500,000
to $12,800.000 based on reclamation work completed up to and including December
31, 2009. The Minister of Indian and Northern Affairs (INAC) approved and the
amended Water License in August. INAC accepted an amended Irrevocable Letter of
Credit in the amount of $1,306,225, to reflect the new amount of the Reclamation Trust.
Attachment 2 is a copy of a statement from Computershare Trust showing the Net
Asset Value of the Con Mine Reclamation Trust as of December 31, 2010.
Attachment 3 is a copy of the lease of the laboratory to ASL.


                                       Page 1 of 12
RECLAMATION PROJECTS COMPLETED JANUARY 01 TO DECEMBER 31, 2010

1.    UNDERGROUND WORKINGS

C-1 Shaft Cap:       In accordance with the approved Closure and Reclamation Plan for
Con Mine (C&R Plan), and the design provided by geotechnical engineers from Golder
Associates, in 2008 a concrete cap was placed in the C-1 Shaft as per the NWT Mine
Health and Safety Act and Regulations. A copy of the preliminary As-Built report was
submitted to the MVLWB on June 19, 2008. A surface cap, complete with a lockable
metal hatch to prevent access to the sub-grade cap, was installed in 2010. The final
As-Built report was prepared by Golder Associates.


2.    TAILING CONTAINMENT AREAS (TCA’S)

Negus TCA: Further contouring, and placing of a country rock cover on areas of the
historical Negus TCA, was carried out in 2010, This work focused on an area adjacent
the site of the former Ed’s Trucking (now Camco), and the Esso bulk fuel storage site.

Neil Lake TCA:      No activity in 2010.

Lower Pud: Further work was carried out in 2010 on placing a layer of peat to support
a vegetative cover on this historical TCA. Trial seeding and fertilization of a test plot
was conducted, with successful germination and growth. This area will be inspected in
2011 to determine if the vegetation survived the winter months.

Crank Lake: Drainage of the historical Crank Lake TCA was further improved by
surveying and grading of channels that direct surface drainage from this area to the
Middle Pud TCA. As part of this process several culverts were repaired or replaced.
Materials suitable for use as an aggregate to support a vegetative cover are being
stockpiled at the north end of the Crank Lake TCA.

Upper Pud: As outlined in the C&R Plan, placement of a capillary barrier of clean
country rock commenced in 2010. This layer is designed to separate the tailing from
the final aggregate layers and vegetation cover that is being designed by consultants.

Middle Pud: Middle Pud TCA will be utilized for an undefined period to collect and
contain surface runoff from the TCA’s on site. To date, activities that have taken place
on Middle Pud TCA include:
    Construction of an engineered drainage channel to direct surface water and
       tailing porewater from Crank Lake TCA through the northern reach of Middle Pud
       to the collection pond at the southern aspect of the TCA.
    All catch basins were backfilled to stabilize the embankments of the respective
       dams, following which they were contoured, seeded, and fertilized.
    Some areas of the tailing were contoured to direct drainage of surface water
       towards the engineered drainage channel


                                      Page 2 of 12
3.       BUILDING AND EQUIPMENT REMOVAL

Decontamination: As part of the decommissioning process, each structure was
decontaminated before it was demolished. Decontamination consists of removing all
hazardous materials from the structure, followed by inspection to confirm the structure is
de-energized and properly prepared for demolition. Hazardous materials removed
include products containing asbestos, tires, batteries, refrigerants, glycol, hydrocarbons,
solvents, paint, mercury switches, fluorescent light bulbs and ballasts, as well as all
chemicals and reagents that may have been associated with the former use of the
structure. To date, 45 of the 63 structures identified on the mine leases have been
removed. The following hazardous materials have been dealt with:

        Process Plant Chemicals – All mill reagents and process chemicals formerly
         used on site have been removed and sold or sent to recyclers for disposal. The
         only reagents remaining on site are those that continue to be used in the Water
         Treatment Plant.

        Hazardous Materials Without Asbestos – This category includes tires, batteries,
         refrigerants, glycol, hydrocarbons, solvents, paint, mercury switches, fluorescent
         light bulbs and ballasts. Virtually all of these materials have been removed from
         site and sent to recyclers for disposal. The only exceptions are several
         refrigerators that will be decommissioned in 2011, and materials currently in use
         as part of the reclamation process.

        Asbestos – Over the past several years a number of asbestos removal
         campaigns have been conducted at the minesite. Up until 2009 these
         campaigns were contracted to companies licensed and trained to carry out this
         work. In 2009, seven individuals on MNML’s staff completed an Asbestos
         Awareness training program to enable them to deal with any asbestos
         remaining on the property. In 2010, asbestos siding was removed from the
         lakeshore pumphouse, the last structure on site in which asbestos was present.
         It is scheduled for demolition in the first quarter of 2011.

        Bulk Fuel Storage – All bulk fuel storage tanks on site have been removed with
         the exception of one buried gasoline tank, two buried diesel fuel tanks, and
         three above ground diesel fuel tanks. Two of these facilities are still in use and
         will remain so in the foreseeable future (one gasoline and one diesel tank). The
         three above ground diesel fuel tanks have been taken out of service and
         scheduled for removal in 2011. The buried tanks may also be scheduled for
         removal in 2011.

        Pipe Utilidors – All pipe utilidors were demolished and the former pipe corridors
         reclaimed in 2010. This includes the utilidors connecting the lakeshore
         pumphouse to the mill complex.




                                        Page 3 of 12
Buildings: There are 63 structures identified on the mine leases in the C&R Plan. As
of December 31, 2010, the following 45 structures have been decommissioned and
demolished:

      Four dock buildings (Buildings 101, 102, 103, 107) and 2 tanks (104 and 108)
      Recreation Hall (Building 109)
      Fourplex Apartment (Building 115)
      House (Building 116)
      Power substation (121)
      Garage (122)
      Cabin (201)
      Gatehouse, office and warehouses (Buildings 202, 203, 204, and 205)
      Mill shops and pumphouse (Buildings 207, 210, 212, and 219)
      Mill storage sheds (Buildings 206, 211, 228, 229)
      Refinery, Metallurgical and Assay labs (Buildings 208, 209, and 220)
      C-1 Dry (Building 213)
      Mill Office (Building 214)
      Mill tanks and boiler (Buildings 215, 223, 224, 225, and 227 )
      Mill storage bins (Buildings 216, 217, and 222)
      Power Plant (Building 218)
      C-1 Hoist Room and headframe (Building 221)
      Oxygen Plant building (Building 226)
      Main Mill (Building 230)
      Autoclave (231)
      Rob Shaft Office Complex (Building 302)
      Rob Shaft Vent Structure (Building 305)
      Blend Plant (Building 309)

Autoclave (Building 231):         As of October 2007, all arsenic sludge remaining on
Con minesite had been processed through the autoclave. On October 31, 2007 the
autoclave was shut down in preparation for final decommissioning. At that time it was
allowed to cool as per the manufacturer’s specifications. At the end of November 2007,
the autoclave was placed on Care and Maintenance in heated storage. In March 2008
the heat was shut off in preparation for final decommissioning. The brick liner was
removed by Stebbins International in the third quarter of 2008. The liner material was
salvaged and shipped to a refinery for gold recovery. The autoclave was demolished in
the second quarter of 2010. The components of the autoclave (stainless steel and
titanium) have been sent to a scrap metal facility for recycle.

Blend Plant (Building 309):             Arsenic sludge was excavated from the three
pits in the Blend Plant and processed at the Autoclave, which rendered it physically,
chemically, and environmentally stable. Following this, the Blend Plant pit walls were
subject to high pressure washing to remove the remaining residue. Subsequent
sampling confirmed that the concrete liner of the pits contained less than 3,000 mg/kg
arsenic, and the underlying bedrock contained less than 30 mg/kg of arsenic.


                                      Page 4 of 12
Photographs of the liners were taken to show their integrity, and a qualified
Geotechnical Engineer conducted an investigation to confirm the pit walls were intact.
A report on the structural integrity of the pits, confirming that they were in a suitable
condition to be backfilled, was submitted to the MVLWB in April 2009. Backfilling of the
pits with clean country rock (<340 mg/kg arsenic) was completed at the end of 2009. In
2010 the Blend Plant structure was demolished and the resulting waste placed in the
hazardous waste disposal site.

Of the 18 structures remaining on site, the following five are scheduled for
decommissioning and demolition in 2011:

        Pumphouse/boiler at lakeshore (Building 105) [demolition in 1st quarter of 2011]
        Fourplex Apartment (Building 117) [demolition in 4th quarter of 2011]
        Garage (118) [demolition in 4th quarter of 2011]
        Shops (Buildings 307 and 308) [demolition in 4th quarter of 2011]
        Oxygen Plant (Equipment and concrete slab – building and large tanks are gone)
         [PraxAir has sold remaining equipment, which is scheduled for removal in 2011]

Twelve structures are scheduled to remain on site, as follows:

        Four houses (lakeshore properties) (Buildings 106, 110, 111, 119)
        Three garages (lakeshore properties) (Buildings 112, 113, 114)
        Masonic Lodge (Building 120)
        Environmental Laboratory (Building 303) – A copy of the lease is attached.
        Warehouse/Admin. Complex (Building 304) and Materials Yard (Building 306)
         (requested by City of Yellowknife)
        Water Treatment Plant (Building 310) (A new plant is scheduled for construction)

The future of the Robertson Shaft headframe (Building 301) is undecided. The City of
Yellowknife is considering this structure as a mining heritage site. However, MNML
intends to maintain funding for demolition of this structure should it be necessary.
Details of this plan will be developed pending a decision by the City.


4.       CHEMICALS AND SOIL CONTAMINATION

Laboratory Chemicals: The majority of laboratory chemicals were sold, given to
other laboratories, or sent to hazardous waste disposal facilities. Arrangements were
made with ALS Environmental to dispose of any remaining unused laboratory
chemicals. In 2010 they were shipped to a waste chemical disposal company.

PCB Disposal:         As per recent changes to the federal PCB Regulations, all PCB
contaminated material remaining on site at Con Mine was shipped to PCB destruction
facilities in the second quarter of 2009. There are no PCB oils or PCB contaminated
material stored on site at Con Mine.



                                        Page 5 of 12
Con Pond: Commencing in 1999, all arsenic sludge was excavated from Con Pond
and taken to the Blend Plant for processing through the autoclave. Following approval
of the final C&R Plan in 2007, the remaining contaminated soil and oversize material
was transported to the approved Hazardous Waste Disposal Site. The underlying
bedrock was then high pressure washed to remove the residual material. Concrete
from demolition of the retaining wall was placed in the Hazardous Waste Disposal Site
in 2007. A report summarizing results of the cleanup was submitted to the MVLWB on
January 03, 2008. In 2010 the Con Pond former hazardous waste storage site was
backfilled with clean country rock in preparation for placement of an impervious liner
and final capping with a rock cover.

Negus Pond:          Commencing in 2004, arsenic sludge was excavated from Negus
Pond and taken to the Blend Plant for processing through the autoclave. Following
approval of the final C&R Plan in 2007, the remaining contaminated soil and oversize
material was transported to the approved Hazardous Waste Disposal Site. The
underlying bedrock was then high pressure washed to remove the residual material.
Concrete from demolition of the retaining wall was placed in the Hazardous Waste
Disposal Site in 2007 and an engineered drainage channel was constructed to drain
Negus Pond to the Middle Pud TCA. A report summarizing results of the cleanup was
submitted to the MVLWB on January 03, 2008. Negus Pond has now been backfilled
with clean country rock in preparation for placement of an impervious liner and final
capping with a rock cover.

Hazardous Waste Disposal Site:          As per the approved C&R Plan, a hazardous
waste storage site was established at the former calcine storage area south of the mill
site, between the Upper Pud and Middle Pud TCA’s. Calcines stored in this area were
used as feed during processing of arsenic sludge in the Blend Plant and Autoclave.

During 2007, the remaining arsenic contaminated soil and oversize material from
cleanup of Con Pond, Negus Pond, and the Blend Plant pits was placed in the
Hazardous Waste Disposal Site. All arsenic contaminated material on the minesite has
now been placed in the hazardous waste disposal site. Upon approval of the final cover
design for this area, an impervious liner will be installed and it will be capped with rock.

Contaminated Soils:
   Type 1, light fuel – Soil in the vicinity if the remaining fuel storage tanks on site,
     including those that are buried, will be tested to determine if any hydrocarbon
     contamination is present. If soil contamination is found, remediation will be
     carried out using the most appropriate technology.

      Type 2, heavy fuel and oil – There is no provision for dealing with Type 2 soil
       contamination in the Con Mine C&R Plan as all bulk heavy fuel storage tanks
       were removed from site between 2002 and 2004, and areas in the vicinity of the
       tanks reclaimed several years before the C&R Plan was developed. However, it
       was determined that soil contaminated with Bunker C Oil and Arsenic was
       present in the vicinity of the lakeshore boiler building.


                                        Page 6 of 12
    In 2009 and 2010, this material was excavated and placed on a clay-lined pad in
    the Upper Pud TCA. The area was then backfilled with clean country rock
    excavated from the site of the new water treatment plant. Once the lakeshore
    boiler building has been demolished, and it can be determined that no further
    contaminated soil is present at that location, the Bunker C contaminated material
    will be dealt with. As there is currently no available technology for dealing with
    contaminated material of this nature, it will be proposed that this material be
    placed as a leveling layer in the Hazardous Waste Disposal Site prior to
    placement of the impervious liner and final cap.

   Type 3, metals – MNML is confident that all arsenic contaminated soil (at levels
    above that found in tailing), has now been placed in the Hazardous Waste
    Disposal Site. This includes soil excavated from in and around Con Pond, Negus
    Pond, and the Blend Plant. Soil under and around the mill was processed to
    recover the remaining precious metals and then placed in the Middle Pud TCA.
    All areas of suspected “high” arsenic contamination have now been reclaimed.

    Over the past several years a number of campaigns were conducted to assess
    soil contamination from metals associated with the byproducts of mining. Arsenic
    has been used as the surrogate metal in each of these campaigns. The following
    areas have been addressed:

       o Rat Lake – Cleanup of the south end of Rat Lake was carried out over a
         period of ten years, starting in 2000 and culminating in 2009. In all, some
         10,000 m3 of tailing contaminated soil was excavated and transported to
         the Upper Pud TCA. It was replaced with clean sand. The final report on
         this project was submitted to the MVLWB in April 2009.

       o Tin Can Hill – No mining activity took place on the Tin Can Hill lease,
         however at the request of the City of Yellowknife, two soil testing
         campaigns were carried out in this area. The first study, in 2006,
         addressed arsenic above the industrial guideline of 340 mg/kg. The
         second study, in 2007, was to determine if the area was suitable for
         residential use. It addressed arsenic above the residential guideline of
         160 mg/kg.

          In 2009, the City elected to remove the residential designation from Tin
          Can Hill in favour of green space, therefore only soil demonstrating
          anthropogenic arsenic contamination above 340 mg/kg would be subject
          to reclaim. However, this material comprises most of the roadways and
          walking trails on Tin Can Hill. The arsenic is present as the chemically
          stable mineral Arsenopyrite, which presents no risk to human health,
          therefore it is unlikely that this material will be removed. The final report
          was submitted to the MVLWB, INAC, and the City of Yellowknife in
          January 2008.




                                   Page 7 of 12
          o Taylor Road Extension – In 2007, at the request of the City of Yellowknife,
            a soil testing campaign was carried out in the area south of Taylor Road
            and north of the mill complex at Con Mine. The study was to determine if
            this area is suitable for residential use by the City of Yellowknife. The
            study addressed arsenic above the residential guideline of 160 mg/kg.

             It was determined that with very little work this area could be reclaimed for
             residential use. In the event the City ever decides to develop this area, the
             small amount of soil demonstrating anthropogenic arsenic contamination
             above 160 mg/kg can easily be reclaimed. The final report was submitted
             to the MVLWB, INAC, and the City of Yellowknife in January 2008.

Non Hazardous Waste or Construction Debris:          As per the approved Non
Hazardous Waste Management Plan for Con Mine, non hazardous wastes and
construction debris generated at the mine and which cannot be recycled are
permanently disposed of at the Con Mine non hazardous waste disposal site. Once it
has been determined that all non hazardous wastes on site have been placed in the non
hazardous waste disposal site, the area will be capped in a manner similar to that which
is approved for the Upper and Middle Pud TCA’s.


5.    WATER MANAGEMENT

Installation of Groundwater Monitoring Wells:         During the 2008 groundwater
monitoring program at Con Mine, 11 new wells and one replacement well were installed,
for a total of 21 groundwater monitoring wells. In 2010, one of these wells (#26A) was
destroyed by the construction of a new housing project at the Con/Rycon trailer parks.

East Perimeter Drainage Channel:         Installation of the East Perimeter engineered
drainage channel commenced in 2008 and was completed in 2009. This channel
extends from the gatehouse at the northeast perimeter of the mine, south through the
historic Negus and Neil Lake TCA’s, to the Lower Pud TCA at the southern extremity of
the main mine lease. Surface water and tailing porewater from these areas is captured
in the drainage channel and directed to the north end of the Lower Pud TCA, where it is
pumped to the Middle Pud TCA for treatment. This drainage channel effectively
captures any contaminants that may have drained to the east from the main mine lease.
A figure showing the layout of the water collection system at Con Mine was submitted to
the MVLWB in 2010.

The east perimeter drainage channel was resurveyed in 2010, in preparation for further
grading and contouring, and placement of a geotechnical liner, in 2011.

Crank Lake/Middle Pud Drainage Channel: In 2008 and 2009, drainage collection
channels were constructed at Crank Lake and Middle Pud TCA’s as noted earlier in this
report. Upgrading and improvement of these structures was carried out in 2010, with
further improvements planned for 2011.



                                      Page 8 of 12
Taylor Road Marsh:          Although not specifically mentioned in the C&R Plan, MNML
has been working with the City of Yellowknife on a system to keep the Taylor Road
Marsh from flooding during the spring freshet. In the past this was accomplished by
pumping the excess water to Kam Lake. To eliminate the need for pumping, a storm
sewer was proposed and received approval from the City of Yellowknife in 2007,
however it was ultimately determined that this was not the most efficient and cost
effective alternative. The concept of a low maintenance, gravity flow engineered
drainage system was developed in 2008 and the design was approved in 2009.
Construction of the channel commenced in August 2010. It is expected to take three
years to complete this structure.


6.    MONITORING AND MAINTENANCE

Annual Geotechnical Inspections:       As required under the Water License, a
qualified Geotechnical Engineer performs the annual geotechnical inspection of Con
Mine, usually in mid-June. The program includes inspection of all tailing containment
areas for physical and chemical stability, the hazardous and non hazardous waste
disposal areas, all concrete caps and closures on openings to underground, and
potential areas of subsidence on the minesite. Two months after each inspection, an
Annual Geotechnical Inspection report and an Action Plan outlining any work that may
be required are submitted the MVLWB. The report and Action Plan for 2010 was
submitted to the MVLWB on August 19th. The annual budget for this work is $10,000.

Surveillance Network and Groundwater Monitoring Program: As required under
the Water License, Surveillance Network Program (SNP) monitoring has been ongoing
at Con Mine for over 30 years, since the first NWT Water License was issued. The
groundwater monitoring program commenced in 2004 and has been carried out
annually since that time. Reports on the results of these programs are submitted
annually to the MVLWB on or before March 31st of the following year. The annual
budget for this work is $17,600 for monitoring and $3,667 for reporting.

Flowmeter Inspection Program:             As required under the Water License, Con
Mine hires a consultant to perform the Annual Flowmeter Inspection and Calibration.
Results of the inspection are reported in the Annual SNP Report. The annual budget for
this work is included in the SNP monitoring program.

Metal Mining Effluent Regulation (MMER) Reporting:          The federal MMER came
into effect on June 06, 2002. Con Mine commenced MMER monitoring and reporting at
that time. Under this program, Environment Canada requires each metal mining
operation to submit quarterly and annual reports on treated effluent monitoring and
quality control. The annual budget for this work is $3,000.




                                     Page 9 of 12
Environmental Effects Monitoring (EEM):         As part of the federal MMER,
commencing in 2002 an annual environmental effects monitoring program is required
for each stream of treated effluent leaving the mine property. This program is designed
to last for a period of 14 years and consists of conducting biological test cycles to
determine if there is an effect caused by the treated effluent on the receiving
environment downstream of the mine. These tests include Acute and Chronic Toxicity
on a selected range of plant and water life species.

The program also includes Biological Studies, each conducted over a three year period
to assess the effects of the effluent on the environment. The Biological Study is
repeated twice. They are followed by a two year program to evaluate the Extent and
Magnitude of any effects that are discovered, and finally a two year Investigation of
Cause study. Con Mine completed year nine of the EEM program when the
Investigation of Cause interpretative report was submitted in 2010. The annual budget
for this work is $65,714.

General Site Maintenance:       General site maintenance is done on an ongoing
basis and includes snow removal, road grading and improvements, culverts, lighting,
potable water and sewage trucking. The annual budget for this work is $10,000.

Regulatory Review and Inspections: Over the past four years the minesite has been
routinely inspected by representatives from INAC, Environment Canada, and WSCC.
No significant issues have been identified during these inspections and no orders have
been issued. Work on the capping projects continues to be approved by the WCSS
Chief Mine’s Inspector, and copies of the As-built Reports have been delivered to the
MVLWB and the INAC inspector.


7.       POST CLOSURE SITE MAINTENANCE

Water Treatment: Surface runoff is collected in the Middle Pud TCA and treated
during the summer months. After evaporation is taken into consideration, water
accumulates at an average of ~200,000 m3 per year. Because of the large storage
capacity of the Middle Pud basin, it is not necessary to treat water annually. MNML’s
current water management strategy is to treat water every second year. The volume of
water treated and released since the C&R Plan was approved is as follows:

        2007 – 505,402 m3
        2008 – 136,691 m3
        2009 – 0 m3
        2010 – 222,408 m3
        Four year average – 216,125 m3

The cost of treatment in 2010 was $179,496, or $0.807/m3. Spread over a two year
period, this amounts to $89,748, below the annual water treatment budget of $125,466.



                                     Page 10 of 12
This cost is expected to continue to decrease, as plans are underway to construct a
new water treatment plant designed specifically to treat surface water effluent from Con
Mine. As the quality of this surface water continues to improve each year, the cost of
treatment will continue to drop. This, combined with a modern, efficient water treatment
system, will significantly reduce future water treatment costs.


8.    OTHER PROJECTS

Surveillance Network Program
Lab results for SNP 40-9 and 25-9 have revealed arsenic concentrations that exceed
the Water License discharge criteria. Investigations carried out between 2008 and 2010
indicate that the elevated arsenic concentrations may be the result of tailing supernatant
that was released to the environment during the early operating life of the mine. MNML
has committed to prevent further discharge of water from this source that has a greater
average concentration than that allowed under the Water License, and to further
investigate and ultimately remediate this problem. To cover the cost of this work,
MNML has added contingency funding of $100,000 to the amount of the reclamation
security for 2011.

Reclamation Security
The MVLWB recommended a security reduction of $2.7 million in 2009. This amount
was subsequently approved by the Minister of INAC and the Water License was
subsequently amended to reflect the lower amount. Under Part B, General Conditions,
Item 2, of amended Water License MV2007L8-0025, the amount of the Reclamation
Security is now set at $12,800,000. MNML has added a contingency of $100,000 to this
amount for work to be carried out at SNP 40-9 and 25-9. As of December 31, 2010,
there is $11,524,372 in the Con Mine Reclamation Security Trust, and an Irrevocable
Letter of Credit on file for $1,306,225, bringing the total in the security deposit to
$12,830,597.

Utilizing Reclaim Model V 5.1 supplied by INAC on July 15, 2009, MNML has updated
the reclamation security to reflect the status of the work as of December 31, 2010. It is
the position of MNML that the amount of the reclamation security should be reduced by
$2,130,191, to $10,003,479 to reflect work that has been completed to date. As there is
$11,524,372 in the Con Mine Reclamation Trust, the amount of the Irrevocable Letter of
Credit should no longer be required, and $1,520,893 of the monies held in trust should
be released to MNML.

MNML hereby requests the Board to review this 2010 Reclamation Status Report and
adjust the Reclamation Security required under the Water License to reflect the closure
and reclamation work completed at Con Mine up to December 31, 2010. Upon receipt
of the Board’s response, MNML will take the necessary steps to reduce to amount of
the Reclamation Security.




                                      Page 11 of 12
In November 2010, several Board members of the Mackenzie Valley Land and Water
Board toured the minesite. MNML cordially invites the members of the Board, its
technical advisors, or other representatives, to return to the minesite in 2011 and view
the work that has been completed or is ongoing. Should you require additional
information, please contact the writer by telephone at 766-5317, or by e-mail at the
following address: Ron.Connell@Newmont.com


Sincerely,




Ron Connell,
Manager, Environmental & Reclamation


Distribution:
       Scott Stewart, Indian and Northern Affairs Canada
       Scott Stringer, General Manager – Miramar Northern Operations
       Angela Plautz, Regulatory Officer – Mackenzie Valley Land & Water Board




                                     Page 12 of 12
Reclamation Project: Con Mine MV2007L8-25                                                                                                                                        2/28/2011
                                                                                     SUMMARY OF COSTS
                                            Capital Costs
                                                                                                                                            Completed
                                            COMPONENT TYPE                           COMPONENT NAME                   TOTAL COST           Dec. 31, 2010       BALANCE

                                            UNDERGROUND MINE                         Con Mine                                $634,500               $445,500        $189,000

                                            TAILINGS                                 Negus                                    $83,091                $10,591         $72,500

                                                                                     Neil                                     $73,048                  $548          $72,500

                                                                                     Lower Pud                               $224,414                $21,414        $203,000

                                                                                     Crank Lake                               $63,775                  $110          $63,665

                                                                                     Upper Pud                               $932,238               $227,048        $705,190

                                                                                     Middle Pud                            $1,533,070                 $3,878      $1,529,192

                                            BUILDINGS AND EQUIPMENT                  Dock, Mill & Shaft                    $2,056,755             $1,648,708        $408,046

                                            CHEMICALS AND SOIL MANAGEMENT                                                  $2,022,335               $841,080      $1,181,255

                                            WATER MANAGEMENT                                                                 $383,000               $240,000        $143,000

                                            MOBILIZATION/DEMOBILIZATION                                                       $50,000                    $0          $50,000

                                            MONITORING AND MAINTENANCE                                                     $1,630,878               $439,924      $1,190,954

                                            POST-CLOSURE SITE MAINTENANCE                                                  $2,408,779               $501,864      $1,906,915

                                            SNP 40-9 / 25-9 CONTINGENCY                                                      $100,000                               $100,000

                                                                        SUBTOTAL                                          $12,195,882             $4,380,665      $7,815,218



                                            PROJECT MANAGEMENT                                      8 % of subtotal          $971,671               $350,453        $625,217


                                            ENGINEERING                                             5 % of subtotal          $607,294               $219,033        $390,761


                                            CONTINGENCY                                            15 % of subtotal        $1,821,882               $657,100      $1,172,283


                                            MARKET PRICE FACTOR ADJUSTMENT                          0 % of subtotal                $0


                                            GRAND TOTAL - CAPITAL COSTS                                                 $15,596,730              $5,607,251    $10,003,479



                                            COMMENTS:
                                            MNML proposed that they had reduced the liability at the Con Mine by $1,031,564 by March 31, 2008.

                                            MNML proposes that we have reduced the liability at Con Mine by $3,477,060 as of December 31, 2009. This amount has been further
                                            reduced by $170,866 by way of the interest accrued on the cash portion of the reclamation security.

                                            In 2009 the Board recommended a security reduction of $2,700,000 based on work completed up to the end of December 2009. The
                                            Minister of INAC approved this recommendation and the amount of the Water License Reclamation Security was amended to $12,800.000.
                                            In 2010 MNML completed work with an estimated value of $2,130,191 based on INAC's RECLAIM model, V5. This work reduces the
                                            reclamation liability to $9,875,479.
                                            As per INAC's recommendation of April 01, 2010, Project Management has been corrected from 10% to 8%, and Engineering has been
                                            increased from 3% to 5% on the summary page.
                                            MNML has added contingency funding of $100,000 to cover remediation work at Snp 40-9 and 25-9.




Con Mine Bond Est-31 Dec 2010.xlsx                                                                        Summary                                                                       1
Reclamation Project: Con Mine MV2007L8-25                                                                                                             2/28/2011


             1      Underground Mine Name: Con Mine                                                           UG Mine # 1
                                                                                                     UNIT
                 ACTIVITY/MATERIAL                                       UNITS QUANTITY             COST             COST         COMPLETED

         A       OBJECTIVE: CONTROL ACCESS
         .       C-1 Shaft                                                    m3             250        540       $135,000              ($135,000)
         .       Rob                                                          m3             250        540       $135,000
         .       Negus Vent                                                   m3             250        540       $135,000              ($135,000)
         .       Rob vent                                                     m3              75        540        $40,500                ($40,500)
         .       other caps [Negus 115, Con 103 (2)]                          m3             100        540        $54,000
         .       Rycon                                                        m3                0       540              $0                     $0
         .       Other - 204Q stope/raise                                                    250        540       $135,000              ($135,000)

                 Subtotal                                                                                         $634,500              ($445,500)



                 COMMENTS:
                 The Board has accepted the cost estimate set forward by MCML to control access to the underground workings by capping shafts,
                 raises and the 204Q open stope. The quantities applied by INAC are inconsistent with the quantities set forward by MCML in January
                 2007. The reason for the variance in the quantities used by INAC is unknown and therefore the facilities operator’s estimate has been
                 used. The cost estimate presented in Table X above does not take into consideration work completed on this mine component during
                 2007. It is understood by the Board that approximately half of the estimated liability has been removed. The estimated liability is
                 subject to a reduction subsequent to:
                 1. the submission of as-built drawings to the Board,
                 2. the notification to the Board of the Northwest Territories Workers Compensation Board Mine’s Inspector acceptance of as-built
                 drawings certified by a qualified engineer registered in the Northwest Territories,
                 3. the submission of an annual estimate of current mine reclamation liability and
                 4. the details of the costs incurred for this mine component during the previous calendar year.

                 INAC's Oct 3, 2008 Water Licence Inspection report confirms that the C-1 Shaft, Negus Vent Shaft and 204Q Raise have been
                 capped and that the Chief Inspector of Mines NWT has accepted the work.
                 MNML considers the work complete at all openings to surface except Rob Shaft, Negus 115 stope, and Con 103 stope.




Con Mine Bond Est-31 Dec 2010.xlsx                                 UG Mine Component                                                                         1
Reclamation Project: Con Mine MV2007L8-25                                                                                                             2/28/2011


    1     Tailings Impoundment Name: Negus                                       Impoundment #                         1
                                                                                                  UNIT
        ACTIVITY/MATERIAL                                           UNITS QUANTITY               COST             COST          COMPLETED

A       OBJECTIVE: CONTROL ACCESS
        Fence                                                            m             1000          10          $10,000                ($10,000)
.       Signs                                                          each              13          11            $143                    ($143)
.       Block roads                                                     m3              140          3.2           $448                    ($448)

C       OBJECTIVE: COVER TAILINGS
.       Vegetate                                                          ha             50        1450          $72,500                      $0

I       SPECIALIZED ITEMS
.       Negus Pond/ Blend Plant Cover                                                     0     106,250               $0                      $0

        Subtotal                                                                                                 $83,091                ($10,591)


        COMMENTS:
            The Board has utilized INAC’s assignment of the reclamation of the former Hazardous Waste site at Negus Pond / Blend Plant Cover to
        the Mine Component – Chemicals and Soil Contamination. The cost estimate for the Negus TCA does not include the liability of the former
        Hazardous Waste site as presented by MCML under “Item I Specialized Items” in the January 2007 Final C & R Plan.
            The cost estimate to control access used by the Board is a combination of the estimates prepared by both MCML and INAC. Access
        control includes the cost for fencing presented by MCML and the costs for signs and to block roads as estimated by INAC. INAC did not
        include fencing costs in their estimate and MCML did not include the cost for signs and to block roads in their estimate. INAC had combined
        the Negus and Neil TCA closure estimates in their cost estimate. The Board has split their costs equally between the Negus TCA and the
        Neil TCA.

         The Board has accepted the MCML cost estimate to cover the Negus TCA. The MCML cost estimate is $72,500. Whereas the INAC cost
        estimate is $1,578 for both the Negus and Neil TCA. INAC has assigned part of the cost to reclaim the Negus and Neil TCA under the Mine
        Component – Building / Equip, item K. Grade and Contour, vegetation. INAC estimates an additional $23,925 will be required to vegetate the
        Negus and Neil TCA and the mill area. The Board feels that MCML’s operational knowledge of the site and of the details of the Final C&R
        Plan warrants acceptance of their estimate.




Con Mine Bond Est-31 Dec 2010.xlsx                               Tailings (Negus) Component                                                                  1
Reclamation Project: Con Mine MV2007L9-25                                                                                                  2/28/2011


    1 Tailings Impoundment Name: Neil                                        Impoundment #                         2
                                                                                             UNIT
     ACTIVITY/MATERIAL                                          UNITS QUANTITY              COST             COST            COMPLETED

A    OBJECTIVE: CONTROL ACCESS
.    Signs                                                         each             12            11           $132                    ($132)
.    Block roads                                                    m3             130           3.2           $416                    ($416)

C    OBJECTIVE: COVER TAILINGS
.    Vegetate                                                        ha              50        1450         $72,500                       $0

     Subtotal                                                                                               $73,048                    ($548)
     COMMENTS:
     The Board accepts INAC cost estimate to control access. Access control includes the costs for signs and to block roads. MCML did not
     include the cost for signs and to block roads in their estimate. INAC had combined the Negus and Neil TCA closure estimates in their cost
     estimate. The Board has split their costs equally between the Negus TCA and the Neil TCA.

     The Board has accepted the MCML cost estimate to cover the Neil TCA. The MCML cost estimate to cover the Neil TCA is $72,500.
     Whereas the INAC cost estimate is $1,578 for both the Negus and Neil TCA. INAC estimates an additional $23,925 will be required to
     vegetate the Negus and Neil TCA and the mill area. The Board feels that MCML’s operational knowledge of the site and of the details of
     the Final C&R Plan warrants acceptance of their estimate.




Con Mine Bond Est-31 Dec 2010.xlsx                         Tailings (Neil) Component                                                              1
Reclamation Project: Con Mine MV2007L8-25                                                                                                2/28/2011


    1 Tailings Impoundment Name: Lower Pud                                 Impoundment #                         3
                                                                                            UNIT
     ACTIVITY/MATERIAL                                         UNITS QUANTITY              COST             COST             COMPLETED

A    OBJECTIVE: CONTROL ACCESS
.    Signs                                                        each             50           11          $550                       ($550)
.    Ditch, mat'l A                                                m3            1000           20        $20,000                   ($20,000)
.    Block roads                                                   m3             270          3.2          $864                       ($864)

C    OBJECTIVE: COVER TAILINGS
.    Vegetate                                                       ha            140        1450        $203,000                         $0


     Subtotal                                                                                              $224,414                  ($21,414)
     COMMENTS:
     The Board accepts INAC cost estimate to control access. Access control includes the costs for signs and to block roads. MCML did not
     include the cost for signs and to block roads in their estimate.

     The Board has accepted the MCML cost estimate to cover the Lower Pud TCA. The MCML cost estimate to cover the Lower Pud TCA is
     $203,000. Whereas the INAC cost estimate is $106,348. The Board feels that MCML’s operational knowledge of the site and of the details of
     the Final C&R Plan warrants acceptance of their estimate.




Con Mine Bond Est-31 Dec 2010.xlsx                     Tailings (Lower Pud) Component                                                            1
Reclamation Project: Con Mine MV2007L8-25                                                                                                      2/28/2011


    1 Tailings Impoundment Name: Crank Lake                                   Impoundment #                          4
                                                                                               UNIT
     ACTIVITY/MATERIAL                                           UNITS QUANTITY               COST              COST           COMPLETED

A    OBJECTIVE: CONTROL ACCESS
.    Signs                                                           each              10          11             $110                    ($110)

C    OBJECTIVE: COVER TAILINGS
.    Soil cover                                                       m3           25000           2.1         $52,500
.    Rip rap                                                          m3                                            $0
.    Vegetate                                                         ha              7.7        1450          $11,165                       $0

     Subtotal                                                                                                 $63,775                      ($110)
     COMMENTS:
     The Board has accepted the MCML cost estimate to cover the Crank TCA. The MCML cost estimate to cover the Crank TCA is $63,665.
     The reclamation activities at the Crank TCA have not been specifically identified in the INAC cost estimate. The Board feels that MCML’s
     operational knowledge of the site and of the details of the Final C&R Plan warrants acceptance of their estimate. The Board recognizes
     that it is possible that the cost to complete the Crank TCA reclamation activities may have been included twice in their estimate by the
     acceptance of the INAC estimate under a separate mine component. If so, this is to be identified and the details of the duplication
     explained by MCML in an annual submissions of the current mine reclamation in order that it may be removed.




Con Mine Bond Est-31 Dec 2010.xlsx                          Tailings (Crank) Component                                                                1
Reclamation Project: Con Mine MV2007L8-25                                                                                                                                      2/28/2011

                     1     Tailings Impoundment Name: Upper Pud                                    Impoundment #                           5
                                                                                                                     UNIT
                         ACTIVITY/MATERIAL                                             UNITS QUANTITY               COST              COST             COMPLETED

                 A       OBJECTIVE: CONTROL ACCESS
                 .       Signs                                                             each             10           11            $110                      ($110)
                         Berm/Ditch to provide areas for vegetation                          m            1000           35          $35,000

                 B       OBJECTIVE: STABILIZE EMBANKMENT
                 .       Toe buttress, drain mat'l                                           m3             42          8.95          $376                     ($376)
                 .              , fill mat'l A                                               m3          11500          8.95       $102,925                ($102,925)
                 .              , fill mat'l B                                               m3           8060          8.95        $72,137                 ($72,137)

                 C       OBJECTIVE: COVER TAILINGS
                 .       Rip rap                                                             m3         174000         3.61        $628,140
                 .       Vegetate                                                            ha             29         1450         $42,050

                 F       OBJECTIVE: UPGRADE SPILLWAY
                 .       Excavate spillway                                                   m3               1       50000          $50,000                   ($50,000)

                 H       OBJECTIVE: REMOVE TAILINGS DISCHARGE
                 .       Pipe                                                                m3           2000          0.75          $1,500                    ($1,500)

                         Subtotal                                                                                                $932,238                ($227,048)
                         COMMENTS:
                         The cost estimate to control access used by the Board is a combination of the estimates prepared by both MCML and INAC. Access control
                         includes a cost to berm / ditch of $35,000 as presented by MCML rather than the $864 presented by INAC. The costs for signs as estimated by
                         INAC is included. MCML did not include the cost for signs specifically in their estimate.
                         The Board has accepted the INAC cost to Stabilize Embankment of $175,438. The MCML cost estimate had allocated the need to Stabilize
                         Embankments under the over-all contingency fund. Given the lack of a Geotechnical Engineer’s report accessing the long term stability of the
                         embankments the Board considers it appropriate to include this potential cost within the estimate for the Upper Pud TCA.
                         The Board has accepted the MCML cost to cover the Upper Pud TCA to be $670,190 as opposed to the INAC estimate of $882,116, pending the
                         submission and approval of a final cover design. The Board feels that MCML’s operational knowledge of the site, local contractors rates and of the
                         details of the design presented in the Final C&R Plan warrants the use of their estimate until the final cover design is known and associated costs
                         Theficostdpresented by INAC to remove the remaining tailings discharge pipe has been included. MCML missed this item in their cost estimate.
                         The cost to construct a spillway between Upper Pud TCA and Middle Pud TCA of $50,000 estimated by MCML has been applied. It is understood
                         by the Board that the estimate to construct this spillway was included under Sections D and F in the INAC estimate for the Mine Component -
                         Middle Pud TCA at $34,127. INAC’s statement in their letter dating February 15, 2008 that the Mine Component – Middle Pud TCA Section D has
                         been omitted by the Board is erroneous and is a result of MCML and INAC not applying costs for work under the same Mine Component. It is the
                         Boards understanding that the spillway was constructed in 2007. The estimated liability is subject to a reduction subsequent to:
                         1.     the submission of as-built drawings to the Board, (MCML - Done)
                         2.     the notification to the Board of the Northwest Territories Workers Compensation Board Mine’s Inspector and/or INAC’s acceptance of as-
                         built drawings certified by a qualified engineer registered in the Northwest Territories, (MCML - Done)
                         3.    the submission of an annual estimate of current mine reclamation liability and (MCML - Done)
                         4.    the details of the costs incurred for this mine component during the previous calendar year. (MCML - Done)
                         In 2009/2010, catch basins at the toe of all dams were backfilled to stabilize the embankments. This includes the large catch basin at the toe of
                         the Taylor Road Dam. This work is now complete.


Con Mine Bond Est-31 Dec 2010.xlsx                                        Tailings (Upper Pud) Component                                                                              1
Reclamation Project: Con Mine MV2007L8-25                                                                                                    2/28/2011


    1 Tailings Impoundment Name: Middle Pud                               Impoundment #                         6
                                                                                           UNIT
     ACTIVITY/MATERIAL                                         UNITS QUANTITY             COST             COST          COMPLETED

A    OBJECTIVE: CONTROL ACCESS
.    Signs                                                       each             52           11            $572                   ($572)
.    Block roads                                                  m3             180          3.2            $576                   ($576)

B    OBJECTIVE: STABILIZE EMBANKMENT
.         , fill mat'l A                                           m3            305         8.95          $2,730                 ($2,730)

C    OBJECTIVE: COVER TAILINGS
.    Doze Tails to final cover                                     m3         15000         0.78         $11,700                       $0
.    Place rock cover                                              m3        165000         3.82        $630,300                       $0
.    Vegetate                                                      ha            22         1450         $31,900                       $0
.    Other - cover shortfall, drill and blast cost only                      182000          4.5        $819,000                       $0

D    OBJECTIVE: STABILIZE TAILINGS SURFACE
.    Runoff channel SE side, rip rap                               m3            375         8.95         $3,356                       $0
.    Tailings cover on WTP sludge                                              13900         0.78        $10,842                       $0

F    OBJECTIVE: CONSTRUCT TREATMENT PRECIPITATE POND
.    Excavate channel, mat'l A                     m3                           3240         4.35        $14,094                       $0

I    SPECIALIZED ITEMS
.    Vegetate dams                                                             40000          0.2          $8,000                      $0

     Subtotal                                                                                          $1,533,070                ($3,878)
     COMMENTS:
     The Board accepts INAC cost estimate to control access. Access control includes the costs for signs and to block roads. MCML did not
     include the cost for signs and to block roads in their estimate.
     The Board has accepted the INAC cost to Stabilize Embankment. The MCML cost estimate had allocated the need to Stabilize
     Embankments under the over-all contingency fund. Given the lack of a Geotechnical Engineer’s report accessing the long term stability
     of the embankments the Board considers it appropriate to include this potential cost within the estimate for the Middle Pud TCA.



Con Mine Bond Est-31 Dec 2010.xlsx                        Tailings (Middle Pud) Component                                                           1
Reclamation Project: Con Mine MV2007L8-25                                                                                                       2/28/2011


  1 Tailings Impoundment Name: Middle Pud                                   Impoundment #                          6
                                                                                             UNIT
    ACTIVITY/MATERIAL                                          UNITS QUANTITY               COST             COST            COMPLETED
    The INAC cost estimate to cover tailings has been used by the Board, pending the submission and approval of the final cover design,
    with the following changes:
    1)   the area to vegetate is restricted to the 22 ha above the high water mark of the pond planned for in the Final C&R Plan and as
    documented technical memo. . . December X, 2007. . In January 2007 MCML had estimated that the area to vegetate would be 20 ha.
    The INAC cost estimate provided for the vegetation of 41 ha, the total area of the Middle Pud TCA, including the planned for pond;
    2)    the MCML unit cost to vegetate (a $3,190 reduction based on an area of 22 ha) has been used, in order to be consistent with the
    unit cost to vegetate other mine components;
    3)     the MCML unit cost to place rock cover on Middle Pud (a $87,450 reduction) has been used. The Board feels that MCML’s
    operational knowledge of the site, local contractors rates and of the details of the presented in the Final C&R Plan warrants the use of
    their estimate until the final cover design is known and associated costs confirmed; and
    4)  the cost to place till islands has not been included, as based on the preliminary design of the tailings cover presented in the Final
    C&R Plan this measure should only be required as a contingency.
    The cost to construct a channel from the mill and place rip rap is included under spillway construction in Mine Component - Upper Pud
    TCA at $50,000. It is understood by the Board that the estimate to construct this spillway was included under Sections D and F in the
    INAC estimate for the Mine Component - Middle Pud TCA at $34,127. It is the Boards understanding that the spillway was constructed
    in 2007.
    Some details including in the INAC cost estimate are not specifically accounted for in the MCML cost estimate. The Board has
    therefore applied the INAC cost for the following activities:
    1)   to Stabilize Tailings Surface with a Runoff channel SE side, rip rap, and Tailings cover on WTP sludge ($14,198);
    2)   to Construct Treatment Precipitate ($14,084).
    The Board recognizes that it is possible that MCML has accounted for these activities elsewhere. If so, this is to be identified and the
    details of the duplication explained by MCML in an annual submissions of the current mine reclamation in order that the duplication of
    costs be eliminated.




Con Mine Bond Est-31 Dec 2010.xlsx                     Tailings (Middle Pud) Component                                                                 2
Reclamation Project: Con Mine MV2007L8-25                                                                    2/28/2011


    1 Building / Equipment Name: Dock, Mill & Shaft Bldg / Equip #:                     1
                                                                       UNIT
     ACTIVITY/MATERIAL                             UNITS QUANTITY     COST        COST       COMPLETED

E    OBJECTIVE: DECONTAMINATE BUILDINGS & TANKS
.    Process plant, chemicals                        each     1380       20      $27,600         ($27,600)
.    Hazardous material, without asbestos            each      434       45      $19,530         ($19,530)
.    Asbestos                                        each    317.13      19       $6,025          ($6,025)
.    Bulk fuel storage                                 kg     1000       35      $35,000         ($35,000)
.    Power plant                                     each         1    1900       $1,900          ($1,900)
.    Explosives plant                                each                 0           $0

F    OBJECTIVE: REMOVE MILL BUILDINGS
.    Storage Shed                                     m2      24.14     19.5       $471             ($471)
.    Elec. Carp Shop                                  m2      494.3     19.5      $9,639          ($9,639)
.    Pump House                                       m2      11.83     19.5       $231             ($231)
.    Storage Bin (2)                                  m2     345.72      32      $11,063         ($11,063)
.    Fine ore bin                                     m2     235.04      32       $7,521          ($7,521)
.    Power plant                                      m2    6198.48      32     $198,351        ($198,351)
.    Hoist Room                                       m2      99.91     19.5      $1,948          ($1,948)
.    Propane tank                                     m2      97.31      32       $3,114          ($3,114)
.    Mill Boiler                                      m2     142.65      32       $4,565          ($4,565)
.    Oxygen Plant                                     m2      440.9      48      $21,163
.    Mill Boiler                                      m2    3477.66     240     $834,638        ($834,638)
.    Autoclave                                        m2    1293.73      32      $41,399         ($41,399)
.    Tank                                             m2     419.98      32      $13,439         ($13,439)

G    OBJECTIVE: REMOVE DOCK BUILDINGS
.    Pump House                                       m2     375.81      21       $7,892
.    House (4) Wood to remain on site                 m2     457.91      21       $9,616          ($9,616)
.    Recreation Hall                                  m2     991.42      21      $20,820         ($20,820)
.    Garage (4) to remain on site                     m2     158.91      21       $3,337          ($3,337)
.    Apartment (2)                                    m2     457.88      21       $9,615          ($4,808)
.    Sub-station                                      m2      16.66      35        $583             ($583)
.    Propane tank                                     m2      99.71      35       $3,490          ($3,490)
.    House (1) Concrete                               m3      53.51      30       $1,605          ($1,605)

H    OBJECTIVE: BREAK BASEMENT SLABS
.    Dock Pump House                                  m2      121.5       6           $729
.    Robertson Head Frame                             m2       120        6           $720

I    OBJECTIVE: REMOVE ROBERTSON SHAFT BUILDINGS
.    Robertson Head Frame                             m2      1500      240     $360,000



Con Mine Bond Est-31 Dec 2010.xlsx                          Bldgs & Equip Component                                 1
Reclamation Project: Con Mine MV2007L8-25                                                                                                              2/28/2011


.   Environmental Lab to remain on site                               m2           403.66          32          $12,917                 ($12,917)
.   Warehouse                                                         m2          1651.45          48          $79,270                 ($79,270)
.   Vent Structure                                                    m2           784.34          32          $25,099                 ($25,099)
.   Material Yard                                                     m2           156.97            5           $785
.   Shops                                                             m2            612.8         19.5         $11,950
.   Blends Plant                                                      m2           2848.5          48         $136,728               ($136,728)
.   Remove boneyard waste                                             m2            5000          19.5         $97,500                ($97,500)

J   OBJECTIVE: LANDFILL FOR DEMOLITION WASTE
.   Landfill disposal fee (not required)                            tonne          15000           2.1          $31,500                ($31,500)

K   SPECIALIZED ITEMS
.   pumps at pump house                                                                  2        2500           $5,000                 ($5,000)

    Subtotal                                                                                                $2,056,755             ($1,648,708)
    COMMENTS:
    The Board has applied the MCML costs for building decontamination, demolition and removal. The overall Contingency applied by the Board
    as a percentage of subtotal is greater than that applied by MCML due to the lack of demolition estimates from experienced contractors. It is
    the Board’s understanding that INAC did not solicit demolition estimates from experienced contractors either in preparation of their estimate.
    The detailed list of buildings and other facilities identified by MCML will allow for a reconciliation of the remaining estimated liability upon
    receipt and acceptance by the Board confirmation of the demolition and removal of individual buildings. INAC has combined several buildings
    The th b cost forth i
    t   MCML d                         d it                        ifi pump h        b            t d
                          Break Basement iSlabsl and the pumps atb ildi house under SpecializedfItems have been applied. The INAC cost
    estimate did not specifically include these items.
    INAC Section K Grade and Contour activities and Section L Reclaim Roads activities have been included by the Board under Mine
    Component – Negus TCA and Mine Component – Neil TCA as per the MCML allocation of these activities.
    The MCML cost estimate Landfill for Demolition Waste under Mill Component has been included. The INAC estimate included a Specialized
    Item – Disposal of misc. debris and no Landfill for Demolition Waste costs. The Board considers the MCML cost estimate to be sufficient to
    cover the disposal of debris/demolition waste.

    MNML state in 2008 that the Recreation Hall, fourplex apartment, power-station across from the Masonic Lodge, and the propane vaporizer
    building have been demolished. INAC Water Licence Inspection Report confirms that the Recreational hall and an apartment have been
    demolished. INAC also states that the carpenter shop and the old pumphouse has been demolished.
    MNML notes that the four houses and accompanying garages on site are not slated for demolition. They will remain as permanent
    residences. It will be necessary to maintain an Environmental Laboratory on site as long as water treatment is ongoing. Con Minesite has
    approved hazardous and non-hazardous waste disposal sites (landfills), therefore there will be no requirement for landfill disposal fees.


    In 2010 MNML completed removal of all mill and autoclave buildings with the exception of the Oxygen Plant, which is the responsibility of
    PraxAir. All hazardous material associated with the mill complex was shipped offsite for recycle or disposal. Asbestos was removed and
    buried in tailings as per the WSCC approved methods. The Blend Plant was demolished. Materials stored in the boneyard at the Rob Shaft
    were shipped to recyclers. The pumphouse at the dock is scheduled for demolition in the first quarter of 2011. The pumps have been
    removed. The City of Yellowknife has requested the Warehouse and Administration building to be retained for use by Public Works. It will
    be demolished.




Con Mine Bond Est-31 Dec 2010.xlsx                                               Bldgs & Equip Component                                                      2
Reclaim Project: test                                                                                            2/28/2011

                             Chemicals and Soil
    1                           Contamination:                                   1
                                                                                      UNIT
        ACTIVITY/MATERIAL                                   UNITS QUANTITY           COST        COST      COMPLETED

A       LABORATORY CHEMICALS
.       From Lab                                  pallet                     6         1590      $9,540         ($9,540)

B       PCB, hauling                              litre                    833          30      $24,990        ($24,990)

D       CON AND NEGUS POND COVERS
.       supply and place liner, GCL               m2                     34000         7.88    $267,920             $0
.       place upper and lower sand bedding        m3                      6800          22     $149,600             $0
.       supply rock from on-site quarry           m2                     17000          4.5     $76,500        ($76,500)
.       place rock cover                          m3                     17000         7.65    $130,050       ($130,050)

E       HAZARDOUS WASTE LANDFILL
.       supply and place liner, ES2               m2                     22440         17.9    $401,676             $0
.       supply upper and lower sand bedding       m3                      4488          22      $98,736             $0
.       supply rock from on-site quarry           m3                     11220          4.5     $50,490             $0
.       place rock cover                          m3                     11220         7.65     $85,833             $0

G       CONTAMINATED SOILS
.       Type 1, light fuel                        m3                      5000          15      $75,000             $0
.       Type 2, heavy fuel and oil                m3                                                 $0             $0
.       Type 3, metals                            m3                     60000          10     $600,000       ($600,000)

H       NON HAZARDOUS WASTE OR CONSTRUCTION DEBRIS                                                                  $0
.       Cover                                     m3                      4000           4      $16,000             $0
.       Top liner                                 m2                      8000          2.5     $20,000             $0
.       Topsoil                                   m3                      4000           4      $16,000             $0


        Subtotal                                                                              $2,022,335      ($841,080)




Con Mine Bond Est-31 Dec 2010.xlsx                         Reclaim Model - Chemicals                                       1
Reclaim Project: test                                                                                                                               2/28/2011

                      Chemicals and Soil
  1                      Contamination:                                                   1
                                                                                               UNIT
      ACTIVITY/MATERIAL                                           UNITS QUANTITY              COST              COST                     COMPLETED




      COMMENTS:
      The Board accepts the MCML cost for the removal of Laboratory Chemicals, PCB, hauling, waste oils, waste batteries based on MCML’s detailed
      knowledge of these remaining materials provided in the January 2007 Final C&R Plan. The Board understands that additional materials were removed in
      2007. The remaining estimated liability will be adjusted upon receipt and acceptance by the Board confirmation of their removal from site.

      The Board agrees with the INAC cost estimate for the Hazardous Waste Landfill. The cost presented by INAC is comparable with those incurred for
      landfill cover construction at other northern sites irrespective the specific design parameters. The Board feels that the INAC Technical Advisors’s
      knowledge of the Hazardous Waste Landfill design warrants the use of their estimate until the final design is known and associated costs confirmed.
      The Board agrees with the INAC cost estimate for covers at the former hazardous waste sites at the Con and Negus ponds. The unit cost to place
      upper and lower sand bedding on the Con and Negus pond areas has been increased from $7.56 to $22 in order to be consistent with the numbers
      being applied for the same item by INAC at the Hazardous Waste Landfill The Board feels that the INAC Technical Advisor’s knowledge of the covers at
      former hazardous waste sites warrants the use of their estimate until the final design is known and associated costs confirmed.

      The Board has accepted the MCML costs for Contaminated Soils have also been used. The volume of metal contaminated soil has been increased from
                                                                          3
      40,000 m3 as presented in the January 2007 Final C&R Plan to 60,000 m based on the Golder Associates memo of December 14, 2007 regarding the
      remaining in-situ volume of arsenic contaminated soils.
      The Board has accepted the MCML cost for the Non Hazardous Waste or Construction Debris Landfill as INAC did not provide a comparative item in
      their cost estimate.
      The INAC cost for a Hazardous Materials Audit has not been included as the Board considers that an audit would only be required should the site be
      abandoned and responsibility transferred to the government.


      In 2010, all laboratory chemicals currently not in use were shipped to a licensed disposal company. Hazardous waste manifests were utilized and a copy
      of the Certificate of Disposal was sent to the INAC Inspector. Con Pond and Negus Pond were backfilled with clean country rock from the site of the
      new water treatment plant. All arsenic contaminated soil on site has been placed in the hazardous waste landfill.




Con Mine Bond Est-31 Dec 2010.xlsx                             Reclaim Model - Chemicals                                                                       2
Reclamation Project: Con Mine MV2007L8-25                                                                                                       2/28/2011


    1       Water Management Project:                                         Project # 1
                                                                                     UNIT
        ACTIVITY/MATERIAL                              UNITS QUANTITY               COST             COST                  COMPLETED

D       OBJECTIVE: MONITORING WELLS
        Operational cost                                  each                8        5000         $40,000                        ($40,000)

F       OBJECTIVE: BREACH DITCHES
        Excavate                                            m3            4800           10         $48,000                              $0

I       OBJECTIVE: COLLECT DRAINAGE FOR TREATMENT
        Excavate collection ditches           m3                          8000           25        $200,000                      ($200,000)
        Rip rap ditches                       m3                          6000           15         $90,000                             $0
        Pipes                                  m                          1000            5          $5,000

        Subtotal                                                                                    $383,000                       ($240,000)
        COMMENTS:
        The Board accepts the MCML costs have been applied. The Board feels that MCML’s operational knowledge of the facility and the
        details of the Final C&R Plan along with the technical expertise of the current operators warrants acceptance of their estimate.

        MNML installed 12 new monitoring wells in 2008, bringing the total number of groundwater monitoring wells to 21. There are no
        plans to install additional monitoring wells at this time.

        MNML has completed construction of all major collection ditches on site. These ditches will continue to be monitored and
        maintained. Riprap liners will be installed in the ditches in 2010 and 2011.




Con Mine Bond Est-31 Dec 2010.xlsx                                  Water Component                                                                    1
Reclamation Project: Con Mine MV2007L8-25                                                                                                        2/28/2011


    1         Monitoring & Maintenance                                                  Mon / Mtce # 1
                                                                             QUANTITY             UNIT
        ACTIVITY/MATERIAL                                              UNITS per YEAR            COST         COST #        COMPLETED

A       OBJECTIVE: INSPECTIONS
        Annual geotechnical inspection                   each                              22    $10,000    $220,000    4           ($40,000)
.       Survey inspection                                each                                                     $0                      $0
.       Annual SNP and Well Monitoring                   each                              30    $17,600    $528,000    4           ($70,400)
.       Reporting                                        each                              30     $3,667    $110,010    4           ($14,668)
.       Other - MMER                                     each                              24     $3,000     $72,000    4           ($12,000)
.       Other - EEM                                      each                              14    $65,714    $919,996    4          ($262,856)


        Subtotal, Annual post-closure monitoring costs                                                     $1,850,006              ($399,924)
        Discount rate for calculation of net present value of post-closure cost, %      3.00%
        Number of years of post-closure activity                                           46 years
        Present Value of payment stream post-closure monitoring costs                                      $1,412,479



B       OBJECTIVE: MAINTENANCE
.       General Site Maintenance                         year                              30    $10,000    $300,000    4           ($40,000)


        Subtotal, Annual post-closure maintenance costs                                                     $300,000
        Discount rate for calculation of net present value of post-closure cost, %      3.00%
        Number of years of post-closure activity                                           46 years
        Present Value of payment stream post-closure maintenance costs                                      $218,399

        Subtotal                                                                                           $1,630,878              ($439,924)

        COMMENTS:
        The Board accepts the MCML cost estimate for Monitoring and Maintenance. INAC also accepted the MCML cost estimate. Details explaining
        the rational for the MCML cost estimate are provided in Section 10 of the January 2007 Final C&R Plan.

        Based on the annual cost provided by MNML previous the liability has been reduced by $109,982

        MNML has now completed four years of annual monitoring and maintenance. Column G has been added to indicated the number of years each
        of these activities has taken place and column H has been recalculated accordingly.




Con Mine Bond Est-31 Dec 2010.xlsx                                                   Monitor Component                                                  1
Reclamation Project: Con Mine MV2007L8-25                                                                                                             2/28/2011


    1 Post-Closure Site Maintenance
                                                                                                UNIT
     ACTIVITY/MATERIAL                                             UNITS QUANTITY              COST              COST # COMPLETED

A    WATER TREATMENT
     Total annual cost, unit cost from Ongoing Water Treatment                         m3         0.64        $125,466




     Subtotal, Annual post-closure costs                                                                      $125,466     4         ($501,864)

     Discount rate for calculation of net present value of post-closure cost,      3.00%


     Number of years of post-closure activity                                          25 years

     Present Value of payment stream                                                                        $2,408,779



     COMMENTS:
     The Board accepts the MCML costs have been applied. The Board feels that MCML’s operational knowledge of the facility and the details of
     the Final C&R Plan along with the technical expertise of the current operators warrants acceptance of their estimate. The cost presented by
     MCML is comparable with those incurred at waste water treatment facilities elsewhere in Canada. The Board recognizes that it is the best
     interest of MCML to operate the water treatment plant with increasing efficiencies in order that they do not have to continue operating it for
     more years than budgeted.
     Based on the annual cost provided by MNML previous the liability has been reduced by $125,466
     MNML has now completed four years of water treatment. Column H has been added to indicated the number of years this has taken place
     and column I has been recalculated accordingly.
     In 2010, MNML continued to treat water in the old plant while the new plant is being designed and site preparation is underway. The actual
     cost of treating water was $0.80/m3, in spite of the inefficiencies associated with the old plant. MNML contends that they should receive
     credit for water treatment.




Con Mine Bond Est-31 Dec 2010.xlsx                                 PostClosure Component                                                                     1
                                                                                          Computershare Trust Company of Canada
                                                                                                           100 University Avenue
                                                                                                       Toronto, Ontario M5J 2Y1
                                                                                                        Telephone 416-263-9687
*M000159Q02*




                         CON MINE RECLAMATION TRUST
                         C/O NEWMONT CANADA LIMITED
                         ATTN: PEGGY ATKINSON                                         Holder Account Number
                         419 NOTRE DAME ST. W.
                         AZILDA ON P0M 1B0                                            7894067219
                         CANADA

                                                                                      Account Type                   Regular Account

                                                                                      Statement Date                     Dec 31, 2010
                                                                                      Last Statement Date                Oct 29, 2010




     Investment Account Statement                                                                                                Page 1 of 3

     Trust Officer:                DAVID HA


     Canadian Portfolio Overview
     Currency :       Canadian Dollar

     Account Summary
                                                               Net Asset Value

                                                         Nov 30, 2010               Dec 31, 2010
     CON MINE RECLAMATION TRUST
     C/O NEWMONT CANADA LIMITED                          $11,514,106               $11,524,372




     Cash Balances
                                                      Opening Balance            Closing Balance

     Total                                                      $755                       $839




     Income Summary
                                                           This Period              Year to Date

     Total                                                         $0                        $0




                                                                                                            ADP.TORONTO_0122/000159/000282
                                                                                                                Holder Account Number
CON MINE RECLAMATION TRUST
C/O NEWMONT CANADA LIMITED                                                                                      7894067219


Investment Account Statement                                                                                                                            Page 2 of 3

New Activity in Your Account
Date                              Activity          Quantity                                      Description                 Price/Rate ($)               Credit/Debit -

                                                                                            Opening Balance                                                      755.02

Dec 09                      REDEEMED          -11,516,000                      GOVERNMENT OF CANADA                                                      11,516,000.00
                                                                                        TREASURY BILL
                                                                                         DUE 12/09/2010
                                                                                           DUE 12/09/10
                                                                             ISSUE REDEEMED FOR CASH
                                                                                          1350Z7PD0060

Dec 09                              BUY           11,542,000                    GOVERNMENT OF CANADA                               99.7740               -11,515,915.08
                                                                                       TREASURY BILL
                                                                                        DUE 03/03/2011
                                                                                                 FLAT
                                                                                       YIELD @ 0.985%
                                                                                              TN TP2
                                                                                              Closing Balance                                                   $839.94




Your Account Holdings
                                                                                                                                       Dec 31, 2010         Dec 31, 2010
Description                                                    Average Cost ($) Average Book Value ($)                 Quantity
                                                                                                                                           Price ($)     Market Value ($)
Cash Balance                                                                                                                                      839               839
GOVERNMENT OF CANADA                                                   99.774              11,515,915           11,542,000.000                 99.840        11,523,533
TREASURY BILL
DUE 03/03/2011
Total Value of Priced Securities Including Cash                                          $11,516,754                                                       $11,524,372
                                           Holder Account Number
            CON MINE RECLAMATION TRUST
            C/O NEWMONT CANADA LIMITED     7894067219


            Investment Account Statement                                             Page 3 of 3
*L000159*




                                                           ADP.TORONTO_0122/000159/000283/i
Rhonda Miller - MVLWB
From:                                Kathleen Graham [kgraham@mvlwb.com]
Sent:                                March-01-11 11:09 AM
To:                                  permits@mvlwb.com; 'Rhonda Miller - MVLWB'
Subject:                             FW: 2010 Reclamation Status Report for Con Mine
Attachments:                         2010 Reclamation Status Report.pdf


 
 
From: Ron Connell [mailto:Ron.Connell@Newmont.com]
Sent: Monday, February 28, 2011 2:06 PM
To: Kathleen Graham; Scott Stewart
Cc: Scott Stringer
Subject: 2010 Reclamation Status Report for Con Mine
 
Kathleen:

Attached please find an electronic copy of the above captioned report. I will drop off a hard copy in the next day
or so.




Ron Connell
Manager, Environment and Reclamation

T 867.766.5317
M 867.444.8093
F 867.873.6357
www.newmont.com

Newmont Mining Corporation
Miramar Northern Mining Ltd.
P.O. Box 2000, Yellowknife, NT X1A 3B9

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================================================


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