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STATE OF <br />DIVISION OF RKLAMA710N, MINING AND SAFETY <br />Department of Natural Resources <br />7373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832106 <br />August 23, 2006 l/ <br />Mr. Eldon Reynolds <br />Eldon & Cornelia Reynolds <br />691 Veinte Drive <br />Delta, CO 81416 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />bc- <br />SAF ETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cottony <br />Division Direcor <br />Natural Resource Trustee <br />Re: File No. M-2006-028, Reynolds Pit,112c Decision Letter -Financial and Performance Warranty Request - <br />ConstruMion Material Operation <br />Deaz Mr. Reynolds: <br />On August 1, 2006, the Division of Minerals and Geology approved your 112c mining permit application. <br />The amount of financial warranty set by the Division for this operation is $40,200.00. You must submit a financial <br />warranty in this amount and a performance warranty in order for us to issue a permit. In the event you have requested a <br />financial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty from <br />Rule 4.3. Then contact us so that we can provide you with the appropriate warranty Form. We have enclosed a <br />performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me at (970) 243-6368. <br />Sincerely, <br />'Ste . Shuey <br />En ronntental Protection Specialist <br />Enclosure <br />cc: Michael Ripp, MVR Resources,Inc. <br />Elizabeth Shelton, DRMS <br />Carl Mount, DRMS <br />Office of Office of <br />Mined Land Reclamation AQive and Inactive Mines <br />