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<br />GOLD MOUNTAIN METALS, INC <br />PO Box 5257 Buena Vista, CO 81211 <br />330-703-8565 <br />July 8, 2007 <br />Colorado Division of Reclamation, Mining & Safety <br />1313 Sherman St <br />Room 215 <br />Denver, CO 80203 <br />Subject: 2007 Annual Report & Fee Payment for Gold Basin Mine, Permit M-1992-045 <br />Dear Colorado Division-of~Reciamation-Mining-&-Safet <br />This letter is to serve as the 2007 Annual Report of Activities for Gold Basin Mine, Permit <br />M-1992-045. Also included in this mailing is a check for $225.00 for payment of the 2007 <br />annual permit fee. <br />As a reminder, the mine location is at 12,200 feet elevation and the mining season is only 90- <br />120 days and weather dependent. <br />Approximately 1300 yards of previously disturbed bank run material was processed during <br />the 2006 season. This material was removed from the 3.06 acre pernutted area in the same <br />azeas as indicated on the Map submitted with the 2006 Annual Report. The boulders were <br />placed in the reclamation azea shown in the 2006 Map at the northwest comer of the 3.06 <br />acre section to help minimize erosion from the hillside in that azea. The washed #3 stone was <br />used to improve roadways in the 3.06 acre section, fill in eroded azeas and also placed in the <br />reclamation azea shown in the middle of the 3.06 acre section of the 2006 Map. The tailing <br />sands were used to improve roadways within the 3.06 acre section, fill in eroded azeas and <br />also placed in the reclamation area shown at the east end of the 3.06 acre section of the 2006 <br />Map. No topsoil was removed during 2006. <br />The mining and reclamation activities for 2007 aze anticipated to be similar to the 2006 <br />activities at the Gold_Basin Mine site. The disturbed and reclamation areas are anticipated to <br />occur in approximately the same locations within the 3.06 acre section as for the 2006 work <br />and as shown on the 2006 Map, therefore the map submitted with the 2006 Annual Report <br />will not change and no new map is being submitted with the 2007 Annual Report. <br />Sincerely, <br /><~~2~ ~ ~~~ ~- <br />Steven M. Ryba <br />Secretary & Treasurer, <br />Gold Mountain Metals, Inc <br />