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01 <br />J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7TH STREEET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX: (970) 242-7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />PARTIAL BOND RELEASE LETTER <br />May 27, 2015 <br />Re: Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />Dear People: <br />Bowie Resources, LLC has submitted an application for a partial bond release to the Division of <br />Reclamation, Mining and Safety for its mining permit No. C-1996-083. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be <br />bonded for the estimated reclamation cost. Now that a portion of the reclamation work has been <br />performed, Bowie Resources LLC has formerly requested a partial bond release from the Division <br />of Reclamation, Mining and Safety. Bowie Resources LLC has a posted liability of $12,466,699.61 <br />and has requested that about $1,500,000 of that amount be released. In accordance with the <br />Division's Rule 3.03.2(1), Bowie Resources LLC is required to send written notice of its partial bond <br />release request to adjacent land owners, surface owners and various local governing bodies. <br />The areas eligible for bond release are wide spread stretching from Hubbard Creek on the east to <br />Stevens Gulch on the west. The bond release areas are bounded by the Union Pacific tracks to the <br />south stretching about 3.5 miles to the north. All areas are located in Delta County. <br />During the period 2003 through 2013, numerous drill pads, roads and the Hubbard Creek and <br />Freeman gulch vent shaft sites were graded to approximate original contour and seeded. During <br />the same period of time both shafts and numerous gob vent and exploration holes were sealed. <br />During 2013, 2014 and 2015 twenty-four drill sites and nine roads were restored to approximate <br />original contours. Soil cover and topsoil were placed on 4.5 acres of gob pile #1 during 2014. Gob <br />pile #1 and gob pile #2 have a combined 7.4 acres covered with 3.5 feet of soil. <br />During the ensuing years the vegetation has flourished on the drill pads, roads and the Hubbard <br />Creek vent shaft site. The Freeman gulch vent shaft site was covered by a 2007 landslide. Based <br />on a vegetation evaluation performed during July and August 2014, a demonstration was made that <br />untreated drainage from the reclaimed areas does not contribute additional suspended solids above <br />natural conditions. The vegetation study concludes the area sampled appears to be more than <br />capable of supporting post -mining land uses. <br />Sincerely, <br />J. E. Sf&v-elr <br />J. E. Stover, P. E. <br />Consulting Engineer <br />