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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmem of N'awral Resources 1 31 3 Sherman St., Room ? I s Denver, Courado aUZ03 DIVISION O F phone: x3031 866 355: MINERAL S FAX 1303183'-5106 $c GEOLOGY P.EC LAMATION MIN ING•SAFETY PERFORMANCE WARRANTY Construction Material Operation eal o„ens Gneemnr Greg E. Walther Opera[Or: Sierra Minerals COrpOr a[IOn E.ecuu,re Dueuw .Michael B. Long Drruion Director Operation: Yule Quarry Permit NO: M-99-058 KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S., 34-32.5-101 et sue. (the "Ac[") as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Sierra Minerals Corporation (the "Permittee"), has applied for a permit to conduct a mining operation known as Yule Quarry (the "Operation") on certain lands in Gunnison County, Colorado. These lands are described in the permit application, as amended and supplemented, and are referred to herein as the "Affected Lands". WHEREAS, in its application for the permit, the Permittee has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Board, as amended from time to time. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation with regard to those affected lands in Gunnison County which aze now or may become subject to the permit are those amounts for the stated periods of time as set forth in the fmancial warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Permittee hereby gives the Board a performance warranty pursuant to Section 34-32.5-117 of the Act, and herein promises the Board that i[ will comply with all applicable requirements of the Act, and the Rules and Regulations as may be amended, with regard to those Affected Lands. NOW, THEREFORE, the Permittee hereby promises [he Board that it will comply wi[h all applicable requirements of the Act and rules and regulations of the Board with respect to the Affected Lands. FURTHER, the Permittee hereby promises the Board that i[ will comply with all of the terms of the applicarion for a permit, as amended and supplemented, as well as any conditions attached to the permit by the Board. FURTHER, the Permittee promises the Board, pursuant to 34-32.5-112(1)(d) of the Act, that i[ has the lawful authority to enter upon the Affected Lands to conduct mining operations, including, bu[ not limited to, reclamation. The Permittee furtYter recognizes dte right of the Board to enter to reclaim (ands affected by the