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PERMIT #: P-2012-006 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: April 9, 2015 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). David Badner of Gold Hill Minerals, Inc. and Bruce Humphries of Regulatory Permits Management, <br />Inc. were also present for the inspection. The Bueno Mine and Mill prospecting site is located on the west side <br />of Jamestown, Colorado. The inspection was conducted as part of the Division's regular monitoring program. <br />As noted above, the Division met with Mr. Badner and Mr. Humphries at the prospecting site. The Division did <br />not visit the location where drilling operations were conducted in 2012; the Division confirmed that the <br />drilling operations were properly abandoned in a previous inspection conducted on May 28, 2013. To date, no <br />other prospecting activity has taken place. The drilling which occurred in 2012 was conducted on patented <br />mining claims. According to the Mr. Badner, the U.S. Forest Service (USFS) has not issued approval of a Plan of <br />Operations (POO) for the planned prospecting activities on unpatented mining claims located on USFS <br />property. <br />The Operator is currently assessing whether to proceed with additional prospecting activities at the site. The <br />Operator should be aware that all reclamation must be complete within 5 years from the date that <br />prospecting ceases. The Division considers the Final Abandonment Report submitted on January 14, 2013, as <br />notice that prospecting operations were complete. Therefore, full reclamation of the site must be completed <br />by January 14, 2018. The Division understands that should the USFS grant approval of a POO, then additional <br />prospecting activities may occur. However, the Division encourages the Operator to submit a request for a full <br />release from reclamation responsibility if no further prospecting activity will take place. <br />The Division currently holds a financial warranty in the amount of 18,500.00, which is sufficient to complete <br />reclamation. <br />This concluded the inspection. <br />Inspection Contact Address <br />David Badner <br />250 NW 23rd St., Unit 204 <br />Miami Beach, FL 33217 <br />CC: Mike Johnson, USFS <br />Page 2 of 2 <br />