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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2000-089 <br />INSPECTION DATE 02/24/06 <br />INSPECTOR'S INITIALS ESC <br />This was an aerial inspection of the Perdue quarry conducted by Erica Crosby of the Colorado <br />Division of Minerals and, Geology. No operator was present during the inspection. <br />The purpose of the aerial inspection was to recalculate the bond in order to complete the <br />Transfer of Permit and Succession of Operation Application (SO-O1) submitted to the <br />Division on December 15,'2005. The SO-O1 requests that the permit be transferred from <br />Randy Perdue to Ignacio Sr/Mary Vasquez. Option A of the form was chosen which waives the <br />right to a 30-day processing time to allow for the DMG to recalculate the financial <br />warranty. <br />An 110c Mining and Reclamation Permit was issued to Randy Perdue on October 4, 2000, for a <br />total permit area of 9.7 acres. The site is located 3 miles north west of Lyons in <br />Boulder County, Colorado. <br />The aerial photographs depict the Perdue Quarry and the road leading to the site. Patches <br />of snow cover was present throughout the site. Small pallets and piles can be depicted <br />throughout the quarry. it appears that only the surface was disturbed, which includes the <br />clearing of tress and topsoil in order to expose the sandstone. Sandstone has been <br />removed, but does not appear significant. <br />Based on the inspection, the bond calculated during the original permitting of the site in <br />the amount of $12,500.00 is adequate to reclaim the site. <br />I & 8 Contact Address <br />j' CE <br />NAMfi Randy Perdue j' BL <br />OPERATOR ~ j' FS <br />STREET P.O. Box 811 j' HW <br />CITY/STATE/ZIP Lyona,'Colorado 80540 j' HMWMD (CH) <br />j' SE <br />j' WQCD (CH) <br />Cc: Carl Mount; DMG <br />Ignacio Vasquez <br />