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• - COLORADO <br />AV-Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Co 80203 <br />July 21, 2017 <br />Craig Liukko <br />Red Arrow Gold Corporation <br />P.O. Box 531 <br />Mancos, CO 81328 <br />RE: Cash Bond, #4701 <br />Red Arrow Gold Corporation, DRMS File #P-2012-007, Red Arrow Mine Drill 2 <br />Notice of Formal Board Hearing for Forfeiture of Financial Warranty <br />Dear Mr. Liukko: <br />Your company holds the above -referenced Cash Bond. On June 26, 2017, the Colorado Mined Land <br />Reclamation Board (Board) found this Financial Warranty is subject to forfeiture and ordered you to <br />gain compliance by July 6, 2016. As of the date of this letter, we have not received your 2015 Annual <br />Fee, 2015 Annual Report, 2015 Annual Map, 2016 Annual Fee, 2016 Annual Report, and 2016 <br />Annual Map. Therefore, pursuant to C.R.S. 34-32.5-124, you have failed to comply with a Board <br />Order. Also, pursuant to C.R.S. 34-32-118(2), the Board is required to notify all Financial Warrantors <br />when the Financial Warranty is subject to forfeiture. The pertinent information for the Certificate of <br />Deposit is: <br />Applicant: Red Arrow Gold Corporation in Receivership <br />Cash Bond number: 4701 <br />Treasure Receipt number: 21829 <br />Amount: $2,000.00 <br />Date of Issuance: April 27, 2012 <br />A Formal Public Hearing will be held for this matter during the August 23-24, 2017 Board meeting. <br />During the Hearing, the Board will consider confirming its determination that the Financial Warranty <br />should be forfeited. Upon finding that the Financial Warrantor should be forfeited, the Board will issue <br />an order directing affected financial warrantors to immediately deliver to the Board all amounts <br />warranted by applicable financial warranties. The Hearing will be held in Room 318 of 1313 Sherman <br />Street, Denver, Colorado, beginning and 9:00 a.m. on August 23, 2016 or as soon thereafter as the <br />matter can be considered. You are welcome to attend the Hearing. <br />1313 Shennan Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://miningi.state.co.us <br />John W. Hickentooper, Governor I Robert W. Randatt, Executive Director I Virginia Brannon, Director <br />