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Before or at the end of the 25 year lease period Gold King expects to construct new <br />settling ponds on land that it owns in the area. The new ponds will be sized based on the then <br />current requirements for settling ponds which are expected to be significantly smaller due to the <br />greatly reduced flows (approximately 200 gpm vs 3600 gpm) being treated. Alternatively, Gold <br />King is exploring the feasibility of a thickening and pressure filtration facility as a replacement to <br />the use of settling ponds. This type of application appears to offer a significant operational cost <br />reduction and is the technology utilized in several other Colorado facilities. <br />We trust that the above comments adequately explains Gold King's position on this <br />matter. If you have further questions, please let me know. <br />ct y, <br />~Qitti <br />en C. Fe ,President <br />