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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-378 <br />INSPECTION DATE 2/21/03 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring of permitted operations and to <br />discuss permitting issues for future revision to portions of the permit area. The Sunnyside Mine is <br />approved for 236.21 acres affected area. DMG holds 51,250,000 financial warranty. Operator <br />has commenced final reclamation. <br />Approximately 1.5 foot of snow cover existed throughout the American Tunnel portion of the <br />permit area. Water treatment plant was active, treating discharge from the Gold King Mine. Mine <br />discharge from the Gold King Mine is routed to the water treatment plant under the WOCD <br />discharge permit. <br />No other areas of the permit were inspected. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247- <br />5469. <br />I & E Contact Address <br />NAME Larrv Perino <br />OPERATOR Sunnvside Gold Corporation <br />STREET P.O. Box 777 <br />CITY/STATE/ZIP Silverton, CO 81433 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CHV <br />^ OTHER <br />