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<br /> <br />Messrs. Johnson and Munn <br />January 21, 1992 <br />Page 2 <br />2. It was moved to the mill area to be processed through the <br />mill's circuit. Unfortunately, the mill was shutdown on <br />June 30, and never resumed processing of dump material. <br />3. The processing, movement and milling of this ore is directly <br />permitted under the terms of the Mined Land Reclamation <br />permit which COM, Inc. holds jointly with the Venture. <br />4. The Venture holds a contract with COM, Inc. which would <br />permit the milling of this ore at the Venture's initiative. <br />5. This ore is only partially on COM, Inc. property, and COM, <br />Inc. has not requested that it be moved due to any <br />interference with mill operations. <br />6. This ore was not processed with Fraser funds, as the Frasers <br />were only paying the salaries of mill employees during this <br />period in 1988. The Frasers' truck was used to haul the <br />ore, which is irrelevant to title. <br />7. The Venture negotiated with COM, Inc. as recently as last <br />Fall for the possible sale of this ore to COM, Inc. to feed <br />its mill circuit. <br />Factually, this case is far beyond the reach of any case <br />regarding the "abandonment" of personalty with which this lawyer <br />is familiar. <br />Venture assays show that the average grade of this material <br />is .18 oz. of gold and 1.35 oz. silver per ton, based on 13 <br />representative assays. The Venture intends to hold you fully <br />accountable in the event you do not cease processing it as <br />previously requested. <br />Gold Hill Ventures and the Steen family are concerned that <br />COM, Inc. may determine that other stockpiles of ore, or dumps <br />owned by the Venture, Mi Vida Enterprises or the Steen family, <br />have been "abandoned." They have not been abandoned. <br />Steen\j 8~mdt <br />