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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />COLORADO <br />[RECLAMATION <br />Phone: (303) 866 -3567 <br />D I V I S I O N O F <br />FAX: (303) 832 -8106 <br />MINING <br />SAFETY <br />John W Hickenlooper <br />Governor <br />MINING AND RECLAMATION PERMIT <br />Mike King <br />HARD ROCK/METAL MINING OPERATIONS <br />Executive Director <br />Loretta E Pineda <br />Director <br />Permit Number: <br />M- 2013 -028 <br />Type of Permit: <br />110(2) <br />Permit Date: November 4, 2013 <br />(Anniversary date for annual report and fees purposes) <br />THIS PERMIT is issued by the Mined Land Reclamation Board, Department of Natural Resources, <br />State of Colorado. <br />RECITALS <br />A. The Permittee, Western States Minerals,LLC desires to conduct a mining operation known <br />as Combination Placer, for the purpose of extracting Gold. Unless the permit is modified or a separate <br />permit is issued to cover the mining and/or recovery of other minerals or extractive products, the Permittee <br />will not mine any other commodities at this site. <br />B. On August 9, 2013 the Mined Land Reclamation Board (the "Board ") approved the <br />Permittee's application for this permit, fixed the amount of the financial warranty and directed that this <br />permit be issued upon the filing with the Division of Reclamation, Mining and Safety (the "Division ") of <br />performance warranty and financial warranty (or warranties) in the amount so fixed in form and substance <br />approved by the Division. Said warranties have been filed with the Division. <br />C. If the Permittee desires to extract materials other than those listed in (A), a separate permit <br />or a permit modification may be required. <br />D. On August 9, 2013 the Board made the following findings: <br />1. The application for this permit complies with the requirements of the Colorado <br />Mined Land Reclamation Act, C.R.S. 34 -32 -101 et seq., as amended, and with all applicable local, state and <br />federal laws; <br />2. The operation will not adversely affect the stability of any significant, valuable, <br />and permanent man -made structure located within two hundred feet of the Affected Land, except where <br />there is an agreement between the Operator and the persons having an interest in the structure that damage <br />to the structure is to be compensated for by the Permittee or if such an agreement cannot be reached, an <br />engineering analysis establishes no damage will occur to the structure to the satisfaction of the Division; <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />