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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmeni of Natural Resources I J 1 1 Shaman 51.. Room ? l i Denver. Colorodo 80203 Vhone: l}U31 866-3557 FA%: UO}I 8}?-8106 Operator: Siloam Stone Operation: Pinon Mine Petmit No: M-97-094 PERFORMANCE WARRANTY Construction Material Operation KNOW ALL MEN BY THESE PRESENTS, THAT: ~I~ DENARTMENT OF NATURAL RESOURCES Rnv Romer Cmernur la,ne>5 Lur hhrad E\eunne Dne, m, nfrha~~l tl. Lnnt Divn,un Dvecmr WHEREAS, the Colorado Mined Land Reclamation Act. C.R.S., 34-32.5-101 s sec . (the "Act"), 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, Siloam Stone (the "Permittee"), has applied for a permit to conduct a mining operation known as Pinon Mine (the "Operation") on certain lands in Pueblo 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 Pueblo County which are now or may become subject to the permit are those amounts for the stated periods of time as set forth in the financial 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 it 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 the Board that it will comply wilt 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 [ha[ it will comply with all of the terms of the application for a permit, as amended and supplemented, as well as any conditions attached to the permit by the Board.