Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          05-206-14-44  01-363104                       
                                          05-208-08-57  07-4K9604                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                   9%          20%                             
Location:                                  27%         100%                             
07-LA-126-0.0/5.5                    Federal Project:                                   
01-HUM-101-35.9/39.2                    Federal Project:                                
                                     NONE                                               
                                     ACNH-Q101(82)                                      
                                                                                        
                                                                                        
                                                                                        
                                                                                        
Progress payment No. 05            Payment period ending: 07-20-05                      
Progress payment No. 02            Payment period ending: 07-20-05                      
MERCER FRASER COMPANY                                                                   
PYRAMID RESOURCES, INC.                                                                 
P O BOX 1006                                                                            
P.O. BOX 2396                                                                           
EUREKA CA 955021006                                                                     
IRWINDALE, CA 91706                                                                     
                                                                                        
                                                                                        
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.         178,175.40      176,675.40                      
1. Contract Itms Without Mobil.          10,500.00            0.00                      
2.a. Extra Work                         398,401.50      107,526.16                      
2.a. Extra Work                                                                         
  b. Adjustment Comp.                                                                   
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
3. Materials on Hand                    129,026.64      129,026.64                      
4. Earned Subject to Retention          408,901.50      107,526.16                      
4. Earned Subject to Retention          307,202.04      305,702.04                      
5. Mobilization                         150,000.00      150,000.00                      
5. Mobilization                                                                         
6. Total Work Completed      408,901.50                                                 
6. Total Work Completed      328,175.40                                                 
7. Deductions                                                                           
7. Deductions                                                                           
8. a.Contract Retentions                                                                
8. a.Contract Retentions                                                                
   b. Unsatisfactory Prog.                                                              
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              457,202.04      455,702.04                      
9. Total pay to Contractor              408,901.50      107,526.16                      
10. Reduction Amt to Escrow                                                             
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                             107,526.16                      
12. Net Pymt. this Estimate                             455,702.04