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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1988-081 <br />INSPECTION DATE 7/19/06 INSPECTOR'S INITIALS ESC <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective <br />actions) were identified during this inspection. The problems should be corrected by the <br />dates given, or they will become possible violations. The possible violations should be <br />corrected by the dates given to reduce their severity when considered by the Mined Land <br />Reclamation Board. The inspector noted on the previous page should be notified of all <br />corrective actions taken. <br />PROHL8M3/POSSIHLS VIOLATIONS <br />AND <br />CORRECTIVS ACTIONS <br />DATE <br />'~ PROBLEM; <br />It does not appear that the current operator has legal right of PB or PV:PH <br />entry to conduct mining and reclamation on site as required by TOPIC (S):AR <br />Rule 6.3.7 of the Hard Rock Rules and Regulations. 9-1-2006 <br />CORRECTIVE ACTIONS: <br />The operator will need to provide documentation of Comatock's <br />legal right to enter the permitted area, including any agreement <br />reached with the landowners by September 1, 2006. <br />PROBLEM: <br />it does not appear that the current operator has the legal right pg or PV:PH <br />to do business in the State of Colorado. This is a possible TOPIC (S):AR <br />violation of C.R.S. 34-32-118(1)(d) and Rule 4.19(1)(d) for 9-1-2006 <br />failure to carry out their obligation under the article. <br />CORRECTIVE ACTIONS: <br />The operator will need to provide documentation that they are <br />registered to do business in the State of Colorado by September <br />1, 2006. <br />