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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 />October 19, 2012 <br />Randy McClure <br />Rio Grande Silver, Inc. <br />PO Box 610 <br />Creede, CO 81130 <br />Re: Equity Exploration Project, NOI P -20 <br />Bond Increase. <br />Dear Mr. McClure, <br />The Division has reviewed the materials subm <br />it meets all requirements and is adequate for a <br />October 18, 2012. The modification includes: <br />underground drilling stations, addition of surf, <br />of onsite "barrel testing" of waste rock, and cc <br />and downstream. <br />The project now includes additional reclamati <br />required reclamation bond amount has been u <br />bond amount is $18,361.00, which was accept <br />statewide prospecting bond (Safeco corporate <br />be provided for this modification is $9,831, bl <br />Please see the costs shown in the enclosed pa( <br />must be submitted, and notify me promptly if <br />The posted statewide prospecting bond descri <br />other active Prospect Notices for Rio Grande <br />Together, the bonded liabilities of all of the ai <br />statewide bond. The additional bond ($9,831 <br />obligated amount of the statewide bond to $2: <br />sufficient funds to cover this modification. I <br />this change. <br />MT191 <br />Please be reminded that all other conditions <br />reports and payment of annual fees, and film <br />force and effect. <br />Page 1 <br />STATE OF COLORADO <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />— St <br />SAFETY <br />John W Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pi6eda <br />Director <br />I 1 -010, Modification MD -2, Approved, and Notice of <br />tted for the NOI modification named above, and finds that <br />Iproval. The Division approved the modification on <br />extending underground exploration drifts, additional <br />ce affected area for disposal of waste rock, implementation <br />ntinued water sampling of West Willow Creek upstream <br />costs that are associated with this modification, and the <br />.ted to include those costs. The current total required <br />by the Division in 2011. It was posted in the form of a <br />•ety no. 6575235). The additional bond amount that must <br />,ing the new total required bond amount to $28,192.00. <br />t, which details the $9,831.00 of additional bonding that <br />notice any errors or omissions. <br />led above also covers the reclamation obligations of all <br />silver. It is posted in the total amount is $269,318.00. <br />tive Prospect Notices obligates $241,490.00 of the <br />)0) associated with this modification brings the total <br />1,321.00, indicating that the statewide bond still contains <br />rill notify Barbara Coria, the Division's bond specialist, of <br />�d requirements of the NOI, including the filing of annual <br />of drill hole permanent abandonment reports, remain in full <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction • Durango Active and Inactive Mines <br />