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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1999-064 <br />INSPECTION DATE 11/09/06 INSPECTOR'S INITIALS ESC <br />OB98RYATSON9 <br />This was an inspection of the Lion King quarry conducted by Srica Crosby of the Colorado <br />Division of Reclamation, Mining and Safety. Abe Vasquez and Vic Norris of Blue Mountain <br />Stone were present during the inspection. <br />The 110c Mining and Reclamation Permit was issued August 23, 1999 for a permit area of 9.4 <br />acres. The Division holds a financial warranty in the amount of $2,500.00. <br />The site is located 5 miles north of Lyons in Larimer County, Colorado. Amine <br />identification sign was posted at the entrance to the site. The permit area was <br />delineated with boundary markers. <br />Mining is actively taking place in two distinct areas. The operator is considering <br />reclaiming the south portion of the site due to the quality of sandstone in that area. <br />The operator is interested in an acreage swap on the south east corner of the site. This <br />area has not been disturbed by mining. The operator would like to apply this acreage on <br />the northern side of the property where the depcsit is a better quality. Attached is the <br />Division's Policy memo regarding additions and deletions of acreage where no disturbance <br />has occurred. <br />I & 8 Coatact Address <br />^ CE <br />NAME Abe Vasquez ^ BL <br />OPERATOR Luis M. Vasquez ^ FS <br />STREET PO Box 122 ^ HW <br />CITY/STATE/ZIP Lyons, Colorado 80540 ^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />Cc: Carl Mount; DRMS <br />