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SCOUT INVESTMENTS, L.L.0 <br />8301 E. Prentice Ave., Suite #100, Greenwood Village, CO 80111 <br />Telephone (303) 659-5000 • Telecopier (303) 773-1176 <br />June 16, 2016 <br />Mr. Peter S. Hays <br />Ms. Barbara Coria <br />Sent via email <br />Re: Application for Transfer of Mineral Permit and Succession of Operators — S&H Mine — <br />Permit No. M-2000-158 <br />Dear Mr. Hays and Ms. Coria, <br />Scout Investments, LLC (Scout) submitted an Application for Transfer of Permit and Succession <br />of Operators for the S&H Mine (Permit No. M-2000-158) that was received by the Division of <br />Reclamation Mining and Safety (DRMS) on December 21, 2015. On December 24, 2015, Scout <br />Investments received a letter from the DRMS stating that we had failed to include our structure <br />agreements with the operators on the property and were given a deadline of February 19, 2016 to <br />complete the application. Since that time, Scout has diligently worked toward entering into <br />agreements with all of the operators and easement owners on the property. <br />On February 17, 2016, Mr. Hays approved a request to extend the deadline for the application <br />completion through April 19, 2016. Mr. Hayes approved subsequent requests to extend through <br />May 19, 2016 and June 19, 2016. <br />Scout continues to await signature from Noble Energy for the last letter, but respectfully requests <br />an additional 30 -day extension through July 19, 2016. <br />Sincerely, <br />Jason <br />t Manager <br />Investments, LLC <br />