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CTLITHOMPSON <br />July 19, 2005 <br />Houchin, Inc. <br />P.O. Box 162 <br />Green Mountain Falls, Colorado 80819 <br />Attention: Mr. Curt Houchin <br />Subject: Pit Slope Reclamation <br />Houchin Gravel Pit <br />Mining Permit No. M-80-249 <br />8730 West Highway 24 <br />Chipita Park, Colorado <br />Project No. CS-15463-145 <br />Dear Mr. Houchin: <br />This report presents results of our pit slope reclamation evaluation for the Houchin <br />Pit, Mining Permit No. M-80-249, in the Chipita Park area of EI Paso County, Colorado. The <br />purpose of our evaluation of the surface conditions was to provide opinions and <br />recommendations on pit slope reclamation. The scope was described in our proposal (No. <br />CS-05-0263) dated July 11, 2005. <br />This report was prepared from data developed during field observations, engineering <br />analysis and experience with similar conditions. It includes our opinions and <br />recommendations for pit reclamation slope construction. The report was prepared for use by <br />Houchin, Inc. in the excavation and reclamation of the Houchin Gravel Pit. <br />Proposed Revision to Plan <br />Curt Houchin requested CTLIThompson Inc. assist Houchin Inc. in revising the mine <br />reclamation plan for Mining Permit No. M-80-249 on file with the Colorado Division of <br />Minerals and Geology. We understand it is desired to submit a revision to the reclamation <br />plan for the pit as suggested in the inspection report by the Colorado Division of Minerals <br />and Geology for the last inspection of the mine on December 13,1996. The inspection report <br />suggested a modification of the mine reclamation plan from the current 3:1 (horizontal to <br />vertical) final slope to a benched high wall to blend with the adjacent reclaimed pit to the <br />northwest. <br />Field Investigation <br />Mr. Terry of our office visited the Houchin Gravel Pit on July 5, 2005 to observe the <br />conditions exposed and also to observe the adjacent reclaimed pit to the northwest. The <br />northeast high wall of the northwest reclaimed pit consists of an approximate 2:1 (horizontal <br />to vertical) slope at the top, above a series of stepped 10 foot wide benches sloping towards <br />the southwest. The high walls between the benches are sloped between 70 and 90 degrees <br />from horizontal and face to the southwest. The bottom of the pit slopes at a few percent <br />down to the southwest towards Highway 24 and varies between 240 and 400 feet in width. <br />The slope of the adjacent pit merges into the 3:1 slope of the Houchin Gravel Pit along the <br />property line. The 2:1 sloped portion of the reclaimed pit consist of decomposed granitic <br />5240 Mark Dabling Blvd I Colorado Springs, Colorado 80918 I Telephone: 719-528-8300 Fax: 719-528-5362 <br />