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~ <br />_ <br />VRANESH ANO RAISCH, LLC <br /> ATTORNEYS AT LAW <br />JEwwY W. pA15 (:H I1~0 14~ STgE ET, SUITE 300 GEORGE vwANESH Iw ETIwE 01 <br />JOHN A. HEH DI!R$OM -~ <br />NIC HAEL O. SHIMNIN p. O. 80X 8]1 THOMA$ MORRIS <br />EU GENE J. RIO ROAN BOULDER, COl0 RA00 A0306-0871 MARGA RET J. WOODS <br />PAUL J. 21 LI5 <br /> TELEPHONE ]O]N+]-6151 <br /> TELECO PIER ]O]/44 ]-9589 <br />May 2, 1996 <br />Mr. Rocky Connor <br />999 Pinion Hills Dr. <br />Carson City, NV 89701 <br />Re: Phil Sheridan Mine <br />Dear Stocky: <br />Mr. Covey received your letter of April 24 on April 26, <br />and brought it to me today. As you know, the 1995 Agreement <br />terminated without exercise of the purchase option. We will <br />withhold Mr. Covey's letter following up the termination until the <br />resolution of your request. <br />Prior to executing a new agreement, Mr. Covey and I would <br />like to meet with you and/or Mr. Oh here in Boulder for the <br />following purposes: <br />1. A full physical inspection of the mine site and <br />mine workings; <br />2. An accounting for 1995-1996 activities; and <br />3. Negotiation of a new agreement. <br />Though the concept of a new agreement structured ir. <br />simi]_ar manner to the old is generally acceptable, we would retjuire <br />additional modifications as follows: - - -- _ - <br />4. More specific provisions regarding the manner and <br />timing of accounting for ore mined and shipped; <br />5. A full review of the insurance provisions; <br />6. Provision for sampling by the Owner and the <br />specific release by Owner of sample lots of ore; <br />and <br />cacllenRrogBtconnar,lv <br />