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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 />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />November 1, 2013 <br />Dale Herbertson <br />Sara Ray Silver Mining LLC <br />6542 W. Mexico Ave. <br />Lakewood, CO 80232 <br />INADEQUATE ANNUAL FEE/REQUEST FOR UPDATE OF INFORMATION <br />PLEASE, READ CAREFULLY — ACTION REQUIRED <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />On October 15, 2013, the Division of Reclamation, Mining and Safety received your Annual Fee for NOI No. P- <br />2011 -004, Ajax Mine. However according to Division records, the Annual Fee, report or map is inadequate. <br />Annual Fee: Inadequate <br />If the annual fee has not been submitted, please remit $86.00. If the annual fee is inadequate please remit the <br />remaining balance. <br />Enclosed is an annual report form with reporting instructions. <br />The Annual Report and Fee requirement will be considered submitted when we have received the <br />following components: <br />1. APPROPRIATE ANNUAL FEE <br />2. COMPLETED REPORT <br />3. ASSOCIATED MAP <br />FAILURE TO SUBMIT AN ADEQUATE PACKET MAY RESULT IN ENFORCEMENT ACTION WITH <br />ASSOCIATED CIVIL PENALTIES. The Division must receive the complete Packet no later than 5 p.m. on <br />December 1, 2013 (if this date falls on a weekend or state recognized holiday your Packet will be due on the next <br />regular business day), or a Notice of Violation, Cease and Desist Order from ALL mining related activities, Civil <br />Penalties equal to the amount of the annual fee(s) due, and a Notice of Formal Public Hearing before the Mined Land <br />Reclamation Board for consideration of POSSIBLE NOI REVOCATION AND FINANCIAL WARRANTY <br />FORFEITURE will be issued for this account. <br />Thank you for your cooperation in this matter. If you have any questions, please feel free to contact Jim Dupler <br />(303)866 -3567 x8119. <br />Enclosure — annual report form <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />