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• COLORADO <br /> Division of Reclamation, <br /> Mining and Safety <br /> Department of Natural Resource <br /> 1313 Sherman Street, Room 215 <br /> Denver,Colorado 80203 <br /> May 25, 2016 <br /> Kevin M. Cassidy <br /> Seaglass Holding Corporation <br /> DBA: US Rare Earths <br /> 5600 Tennyson Parkway, Suite 240 <br /> Plano,TX 75024 <br /> RE: Reason to Believe a Violation Exists and Notice of Board Hearing <br /> Failure to Comply with a Board Order <br /> Powderhorn Project Exploration Drilling Program, NOI No. P-2011-024 <br /> Dear Mr. Cassidy: <br /> The Board Order for Violation PV-2016-001, effective April 4, 2016, required Seaglass Holding <br /> Corporation dba US Rare Earths (the Prospector)to submit the delinquent annual fee, report and map <br /> for 2015, within 10 days of the effective date of the Order, due April 14, 2016. As of the date of this <br /> correspondence, the Division has not received the delinquent 2015 annual fee, report and map. <br /> The Division believes this a violation pursuant to: <br /> • C.R.S. 34-32-124(1) for failure to comply with the conditions of an order, permit, or <br /> regulation. Specifically, the operator has failed to comply with the corrective actions of <br /> the Board Order for Violation PV-2016-001. <br /> Therefore,the Division has reason to believe a violation exists to the Colorado Mined Land <br /> Reclamation Act, C.R.S. 34-32-101 et seq., and has scheduled this matter to appear before the Mined <br /> Land Reclamation Board (Board). <br /> A Formal Board Hearing will be held during the July 27-28, 2016 Board meeting for consideration of <br /> this possible violation. The hearing will be held at 1313 Sherman Street, Room 318, Denver, Colorado, <br /> beginning at 9:00 a.m. on July 27th or as soon thereafter as the matter can be considered. At that <br /> hearing you will have the opportunity to present your defense. <br /> This is an important legal proceeding and you must appear in person for this hearing. If you fail to <br /> appear, an Order and financial judgment may be entered against you. In addition,failure to appear <br /> at the hearing may result in legal consequences including, but not limited to, loss of party status and <br /> your ability to seek reconsideration from the Board or seek judicial appeal in district court. <br /> 1313 Sherman Street, Room 215,Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br /> John W.iiickenlooper, Governor ► Robert Randall, Interim-Executive Director i Virginia Brannon,Director I * s <br />