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L J DEVELOPMENT, INC. <br />JULY 7, 2005 <br />159 TIFFANY CT. PUEBLO, CO 81005 <br />Division of Minerals and Geology <br />1313 Sherman Street, RM 215 <br />Denver, CO 80203 <br />RE: ANNUAL REPORT <br />PERMIT NO.: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />TOTAL FEES: <br />Gentlemen: <br />M-2001-033 <br />ROUGH CUT PIT <br />JULY 17, 2004 <br />$ 688.00 <br />Attached is a check in the amount of $ 688.00 for the Annual Report Fees, as well as the updated <br />map showing the activity this past yeaz. This mine has been mined the past year and processing <br />is ongoing. The Haul Road is well maintained. About 8 acres aze active at this time, the operator <br />is excavating deeper and not disturbing any more surface area at this time.Next yea~• the <br />excavation will continue to go deeper. The disturbed area will be reclaimed followin;; the mining. <br />Mining will continue to the west along the active mining face. <br />This is a long term pit and it will be in production and reclamation for the life of the mine. This <br />is an active pit. Please see map for other details. <br />Sincere <br />(' <br />ce Gagliano <br />Consultant <br />PHONE (719) 240-9424 FAX (719) 583-0768 <br />