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PERMIT#: P-2009-002 <br /> INSPECTOR'S INITIALS:MAC <br /> INSPECTION DATE:May 30,2014 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham and Tony Waldron of the Division of Reclamation, <br /> Mining and Safety (Division). In addition, Ms. Ann Lemberg was present on behalf of the Golden Age Number <br /> Two Mining Co. The Golden Age No. 2 prospect site is located in Boulder County approximately 8 miles <br /> northwest of Boulder, Colorado. <br /> The inspection was conducted as part of the Division's regular monitoring program.The Golden Age No. 2 <br /> prospect site consists of three patented claims: Golden Age Number Two, Blue Bull and Little Grace. The <br /> minerals being investigated at the site include gold, silver and rare earth metals. The surface features <br /> associated with historic mining at the site include a vertical shaft on the Golden Age Number Two claim;the <br /> shaft has collapsed in on itself. In addition, there is an historic mine dump located adjacent to the shaft. The <br /> mine dump contained approximately 4,000 tons at the time the N01 was approved in 2009. <br /> In 2012, the Operator reported that a portion of the mine dump was removed, without authorization,from <br /> the Golden Age Number Two claim and was used to build a nearby road. The Division observed the mine <br /> dump had been disturbed and it appeared that up to half of the mine dump had been removed. The portion of <br /> the mine dump that still remains is stable and has a cover of vegetation. The area where a portion of the <br /> dump was removed lacks vegetation and appears to have been recently disturbed. The Division and the <br /> Operator traversed a road located approximately 400 feet west of the mine dump. The road is situated on the <br /> south side of N. Gulch Road and extends to the southwest at a distance of approximately 765 feet. The <br /> Division observed material along the road which was of a similar composition to the material observed in the <br /> mine dump. The Division will not hold the Operator responsible for reclamation of the disturbed portion of the <br /> mine dump. The Division has instructed the Operator to coordinate with local law enforcement with regard to <br /> the allegation the mine dump was removed illegally from the site. <br /> The approved prospecting activities at the site are limited to digging a trench (351 x 1' W x 2' H) on the Blue <br /> Bull claim. To date, the Operator has not commenced excavation of the trench or the associated sample <br /> collection. However,the Operator did conduct surface sampling in 2011 according to the information provided <br /> in the Annual Reports. The Operator informed the Division that the excavation of the trench and the <br /> associated sampling will be conducted in the future. The Division currently holds a financial warranty in the <br /> amount of$200.00. Currently, there is no reclamation responsibility associated with the NOI; however, the <br /> financial warranty is not adequate to cover the reclamation liability associated with the approved prospecting <br /> activities. Hard Rock Rule 5.3.3 requires that Prospectors provide the Division with a financial warranty in the <br /> amount of$2,000.00 per acre of land to be disturbed, or such other amount as determined by the Division. <br /> Therefore, the Golden Age Number Two Mining Co. must provide the Division with $1,800.00 to meet the <br /> requirements of Rule 5.3.3. Notice of the increase of the financial warranty will be sent under separate cover. <br /> As noted above,the Operator's approved prospecting activities are limited to excavation of the trench and <br /> collection of samples. If the Operator intends on conducting additional prospecting activities not defined in <br /> the approved NOI, including altering the defined dimensions of the trench, then a modification of the N01 <br /> must be filed and approved in accordance with Rule 5.1.2(j). <br /> This concluded the inspection. <br /> Page 2 of 4 <br />