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PROPOSED LETTER TO ADJACENT LAND OWNERS <br />CERTIFIED MAIL <br />January 31, 2007 <br />RE: INTENT TO SEEK BOND RELEASE <br />Dear Sir/Madam: <br />Western Fuels-Colorado, A Limited Liability Company is applying to Colorado Division <br />of Reclamation, Mining and Safety for Phase 1, 2 and 3 bond liability release for three (3) <br />additional groundwater monitoring wells and twenty seven exploration holes drilled and <br />reclaimed during the 2005 exploration program. You are hereby notified of WFC's <br />intention to seek bond liability release as required by Section 3.03.2 of Regulation of <br />Colorado Division of Mined Reclamation Board. A map showing the locations of these <br />wells is enclosed for your reference. WFC has aself--bond in place for the reclamation of <br />the New Horizon Mine in the amount of $2,500,000. This request pertains to a reduction <br />in the bond liability only and there would be no release of any money. <br />If you have any questions, please contact me (303-254-3071) or Colorado Division of <br />Reclamation, Mining and Safety, 1313 Sherman St., Room 215, Denver, CO 80203 (Tel <br />303-866-3567). <br />Sincerely, <br />Murari P. Shrestha, P.E. <br />Director of Engineering and Contracts <br />MS:jag <br />Cc: Lance Wade <br />Mike Boulay <br />