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(Page 3) MINE ID # OR PROSPECTING ID # M-1987-028 INSPECTION DATE 05/19/06 INSPECTOR'S INITIALS ESC Mine Site The low spot of the pit was inspected, and additional permeability information may be needed if stormwater runoff is to be stored in the pit. Boundary and claim markers have been installed to depict the ownership within the disturbed area and the land to be incorporated into the permit under CN-O1. The areas on USFS land that have been mined to date include very small tracks of land less than 2 acres in size. The remaining 22 acres in CN-O1 have not been disturbed to date. Legal right of entry has yet to be granted by the USFS for the areas currently mined and the areas that will be incorporated into CN-O1. The operator intends to mine into the new area to recover the white rtarble using conventional surface mining techniques. In order to further develop the mining area, highwall benching and stabilization must be established. The operator proposes benches 30'wide and 40'high using blasting procedures. The operator will need to commit to salvaging all available topsoil on site. The operator will reclaim a small road that was created, but is located outside of the proposed CN-O1 boundary. The road was cut into a small hill, and near vertical wall exists on both sides of the road for a height of approximately 12-15 feet. The operator intends to backfill the road with overburden material to achieve the approximate original topography. The Division requires that the material be placed and compacted in 1 foot lifts, and is further described in the Division's geotechnical analysis. I & $ Contact Address ^ CE NAME Mr. Bill Addison ^ BL OPERATOR Colorado Marble, L.L.C. STREET 229 Industrial Park Rd NE ^ HW CITY/STATEf ZIP Cartersville, GA 30121 ^ HMWMD (CH) ^ SE ^ WQCD (CH) cc: Carl Mount; DMG Allen Sorenson; DMG Ken Klco; Azurite Inc. Bob Holloway; Monarch Mountain Marble Co. Chris Welker; USFS