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I. The application for this permit complies with the requirements of the Colorado Mined Land <br />Reclamation Act, C.R.S. 34-32-101 et seq., as amended, and with all applicable local, state and <br />federal laws; <br />2. The operation will not adversely affect the stability of any significant, valuable, and permanent <br />man-made structure located within two hundred feet of the Affected Land, except where there is <br />an agreement between the Operator and the persons having an interest in the structure that <br />damage to the structure is to be compensated for by the Permittee or if such an agreement cannot <br />be reached, an engineering analysis establishes no damage will occur to the structure to the <br />satisfaction of the Division and; <br />3. The proposed mining and reclamation operations can be carried out in conformance with the <br />requirements of the Act, and the Hard Rock/Metal Mining Rules and Regulations. <br />E. The Permittee has made a showing satisfactory to the Board that: <br />1. It will employ, during and after its underground mining and/or surface operations, procedures <br />designed to minimize environmental disturbance from such operation; <br />2. It will provide for reclamation of the Affected Lands appropriate to the subsequent beneficial use <br />of such lands; and <br />3. In the event of the failure of its proposed reclamation plan, it will take whatever measures may <br />be necessary to assure the success of reclamation of the lands affected by such operations in <br />accordance with the Act. <br />F. A copy of the Permittee's application, as amended and supplemented, has been approved by the <br />Board and is, by this reference, incorporated herein. <br />G. The issuance of this permit does not relieve the Permittee from having to comply with all applicable <br />Federal, State and County statutes, including State water law. <br />GRANTS. CONDITIONS AND AGREEMENTS <br />The Board, in reliance upon the representations and promises made in the permit application, as amended <br />and supplemented, and the performance warranty, hereby issues a life of the mine permit to the <br />Permittee, to engage in the operations described in the application on certain lands lying in the County of <br />Mesa, State of Colorado. These lands are described in the permit application, as amended and <br />supplemented, and are referred to herein as the "Affected Lands". <br />This permit is issued subject to the following conditions and agreements: <br />1) The Permittee will be bound by all applicable requirements of the Act, and all applicable rules and <br />regulations of the Board, as amended from time to time, the terms of the permit application, the terms <br />of the performance warranty, and the terms of the financial warranty filed with the Division. <br />2) The Permittee will file with the Division its annual report and fees on each anniversary date of this <br />permit. <br />Page 2 of 3 <br />