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KAGAN & SON, LLC. <br />555 Ernest Avenue <br />Westcliffe, CO 81252 <br />(719) 783 -9636 FAX (719) 783 -3039 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />DATE: October 11th, 2013 <br />RE: ANNUAL REPORT <br />PERMITEE NAME: <br />PERMIT NO: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />To whom it may concern, <br />KAGAN & SON, LLC <br />M- 1979 -192 -114 <br />SPOTTED BURRO PIT <br />14- Oct -13 <br />$791.00 <br />FREMONT <br />Attached is a check in the amount of $791.00 for the annual fee for the preceding year. Mining has <br />occured this year and will continue for the foreseeable future. The area of surface disturbance <br />increased by approximately 1/2 acre. Scaling from Google Maps, the disturbed area is now <br />approximately 11.82 acres and the mining will go to the south next year. This pit is a long -term <br />resource that will be in production for many years. This is an active pit. Please see map for details. <br />Sincerely, <br />Andrew Kagan <br />Managing Member <br />cc: Fremont County <br />LJ Development, Inc. <br />