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0 0 <br />® ®®seeee <br />• •®®®e®® ®® o• <br />C alals ®_ ®::~ eRes ources <br />® ®®®® Gold & Silver Exploration <br />November 02, 2007 p~ <br />Division of Reclamation, Mining and Safety ' T C~~~/ <br />Department of Natural Resources o. ~~V ~ ~Q <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Reference: M-1977-410 Annual Fee and Report <br />/y~s~ah ,1~ <br />M~hih9 ah~esaf 1~ h <br />Dear Division of Reclamation, Mining and Safety: <br />Please £md enclosed our check number 4210 in the amount of S 259.00 for our <br />annual fee. <br />The Cross Mine operation remained closed during the operation period <br />November 04, 2006 through November 03, 2007. We were being held captive by a <br />fmancial partner from Aspen who bad us in a Catch 22 situation. This prevented us <br />from completing our environmental permitting and engineering work for our new <br />small mine at the Cross operation. The good news is that we are now free from this <br />partner and we are moving full speed ahead with our environmental planning and <br />engineering work in preparation for our meetings with the Division very soon. <br />During the last operating year, the Cross Mine was kept under full care and <br />maintenance seven days a week. The main mine office was open every day and the <br />roads to the mine were fully maintained during the winter months. The <br />requirements under our NPDES permit with the CDH were kept current on a daily <br />basis, 24/7 and all required sampling and reporting was completed on time. No <br />disturbance took place at the Cross Mine, all buildings, facilities and mine dump <br />remained unchanged. We did have Restoration Roofing Company from Longmont, <br />Colorado install a new roof on the main mine shop building at the Cross Mine. <br />Educational tours for school groups continued at the mine as time allowed. <br />We did purchase one additional mining claim during this period. It is the Idaho <br />Extension Lode # 171 with 5.16 acres. The closing was on 12/13/06. This claim <br />should be added to our previous claim list which you have oa file. <br />We expect with the change in our fmancial partners and the current prices for <br />gold and silver to be ready to meet with you very soon to cover in detail our plans <br />for our new small mine at the Cross operation with a start date planned for May of <br />2008. <br />contact me if you have any questions or require any additional <br />o at this time. <br />Tom He~dricks <br />Vice Pr ident Operations /Attachments CC: Mr. Dave Young, Pres. Mr. John R <br />Henderson PC <br />P.0. Box 653 -Caribou • Nederland, CO 80460.0653 • Phone 303.258.3806 • Fax 303.258.0402 <br />Finail•thomassh@earthlink.net • WebsRe•www.calaisresources.com <br />