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(Page 3) <br />MINE ID # OR PROSPECTING ID #: ~~-ieRS_m~ <br />INSPECTION DATE: Zl~em~ <br />INSPECTOR'S INITIALS: KAP <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified <br />during this inspection. The problems should be corrected by the dates given, or they will become possible <br />violations. The possible violations should be corrected by the dates given to reduce their severity when considered <br />by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all <br />corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />1. <br />During this inspection, it was discovered that the current bond amount is inadequate for <br />reclamation of the site. This is a problem related to Section C.R.S. 34-32-1 1 7 1411b1(11 for <br />failure to maintain sufficient financial warranty to assure the completion of reclamation of <br />the affected land. <br />CORRECTION <br />DATE <br />11 / 30/07 <br />PB or PV: 36_ <br />TOPIC(S): DEL <br />C'nrrP. C'tIVP. AC'tinrl' VJfthlrl SIXt~! (7inl days at rP. C'Plpt (1t thlt P.ttP. r. P.Ith P.r nnSt tha. arl P. (''IIatP. <br />hrLCt,~ hnva~~pprnv~.rl ravi5inn with tha flivi5~n ~hnnging the ~-yarmit to raflart raril i~ar~l <br />costs related to reclamation; submit a commitment to perform specific reclamation <br />measures during the next field season that will reduce reclamation responsibility; or a <br />combination of above measures that results in full financial coverage of the reclamation at <br />the site. <br />2. <br />During the record review related to this inspection, it was discovered that Penn Mountain <br />Mining, Inc., the Operator of the site, is not a registered entity with the Colorado Secretary <br />of State's Office. This is a problem related to C.R.S 34-32-118 (l j (dj which states that a <br />financial warranty shall be subject to forfeiture whenever the Board determines the <br />financial warrantor no longer has the financial ability t carry out his obligations under the <br />article. <br />10/30 /07 <br />PB or PV: ~B_ <br />TOPIC(S): ~~ <br />