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Received <br />GOLD KING MINES CORPORATION/ <br />P.O. Box 299 <br />Silverton, Colorado 81433 <br />Telephone (970)387-5813 <br />Colorado Division of Minerals and Geology <br />701 Camino Del Rio <br />Room 125 <br />Durango, Colorado 8130] <br />Attention: Mr. Wallace Erickson <br />Fax (970)387-5760 <br />~IU1 ~ 2 ?003 <br />a-'iab~a ~0 ~eaal py~ <br />~+kra~ ~ Geology, <br />OAF/CF <br />July 18, 2003 <br />Sony sic~e uline~ <br />M-197'7-37$,~ <br />Mne iQe,>~J~gt~~.. P~o~ects / <br />Re: Initiation of Koehler Mine Tunnel Bulkhead Work <br />Dear Mr. Erickson: <br />This letter is fo advise you that Gold King Mines Corporation has initiated work on installation <br />of the proposed bulkhead in the main level of the Koehler Mine. This work is being carried out as part of <br />a contractual agreement between Sunnyside Gold Corporation, Gold King Mines Corporation and Frank <br />Baumgartner/Sial Exploration/Osiris Gold, Inc. and is a key element of the final settlement of the <br />Consent Decree between Sunnyside Gold and the State of Colorado. <br />Work was commenced to re-open the Koehler mine portal on July 7, 2003. The initial proposed <br />site for the bulkhead will be inspected by John Abel, the bulkhead design engineer, to determine the <br />structural feasibi-ity of the proposed location and, if acceptable, to gather data for design of the bulkhead. <br />Prior to opening the portal, a sedimentation pond was modified below the mine portal to contain <br />sediments generated during the cleaning of the tunnel. <br />If you have any questions, please contact me at the above telephone/fax numbers or by e-mail at <br />fearneng@rmi.net. <br />We look forward to working with the Division on this project. RE~E~y~~ <br />Respectfully JUL 3 f 2093 <br />~~ .,; <br />~Ca-1~Minernla e1~ ~ y <br />Ste e . Fearn, esident _ <br />ec. Larry Perino, Sunnyside Gold Corporation <br />Frank Baumgartner <br />