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Mareh 3, 2006 RECEIVED Mr. Bruce Humphries MAR 0 6 2006 Colorado Department of Natural Resources Division ~f Minerals and Geology Division of Minerals and Geology 1313 Sherman Street, Room 215 C~~ Denver, CO 80203 ~ ~ C ~ g® ~ Re: War Eagle Patented Mining Claim, M.S. #7962, Teller County, Colorado Dear Mr. Humphries: On behalf of AngloGold Ashanti (Colorado) Corp., as Manager of Cripple Creek & Victor Gold Mining Company ("CC&V"), I provide this letter. This letter responds to the handwritten letter dated February 27, 2006, from Mr. Randal Andrews to Berhan Keffelew, which was in tum forwarded to CC&V. GC&V is the owner of an undivided 7/8 interest in the War Eagle Patented Mining Claim, M.S. #7962 ("War Eagle Claim"), as Mr. Andrews states in his letter. We understand that Mr. Andrews owns an undivided 1/8 interest in the War Eagle Claim. The War Eagle Claim is part of CC&V's Cresson Mine in Teller County. Otherwise, none of the assertions made in Mr. Andrews' letter are correct. As a co-owner of the War Eagle Claim with Mr. Andrews, CC&V has the right under Colorado law (C.R.S. §§ 34-44-101 through 34-44-110) to mine the claim. That statute requires that upon the commencement of mining, the tenant-in-common who is conducting the mining must provide written notice to the oilier tenants-in-common (C.R.S. § 34-44-108). CC&V provided the required notice to Mr. Andrews (and to his attorney) by delivery of a letter by certified mail dated February 20, 1995. Although the May 2, 2000 "Consent" Mr. Andrews attached to his letter to Mr. Keffelew was indeed sent during the time period when the agencies were processing Amendment No. 8, his assertion that it somehow relates to CC&V's "State and County permit expansion" is mis-guided. Instead, it was related to a request for rezoning which CC&V had been discussing with Teller County. That request for consent to the rezoning had nothing to do with any permit expansion. Any issues Mr. Andrews may have with CC&V concerning the mining activities CC&V has conducted on the War Eagle Claim are issues that are properly resolved between Mr. Andrews and CC&V, and do notinvolve the Division of Minerals & Geology. CC&V clearly had and continues to have the right to conduct those mining activities.