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reg Lewicki And Associates <br />11541 Warrington Court Phone: (303)346-5196 Faa(303)-346-6934 <br />Parker, CO USA 80138 E-Mail: lewicki7@attbi.com <br />May 30, 2005 <br />REDEIVED <br />Barbara Chiappone <br />Colorado Division of Minerals and Geology JUG ~ 1 ~QS <br />Minerals Section <br />1313 Sherman Street 2nd Floor DivisionotMineralsandGaology <br />Denver, CO 80203-2273 <br />Re :Annual Report B&B Excavating, Inc. Montgomery Pit, <br />MLR No. M-86- 104 Tax I.D.# <br />Dear Barbara: <br />Enclosed is the Annual Report for the past year for Montgomery Pit, including map and <br />report form. Past records show that the annual date for the pit is May 24 of each year. <br />The financial warranty for the permit is $20,500 and the total permit area is 46.08 <br />acres. The mining and reclamation plan has three phases. <br />The following information is provided to comply with Rule 2.4.1: <br />(1) No acres of new disturbance occurred in the past year and no new mining occurred <br />in the disturbed area located in the south central and southwest parts of the permit area <br />as shown on the annual report map. The portable wash plant has returned to the site <br />and is currently on site. It is expected to remain on site for 1-2 months. The material <br />being washed has been imported from other B&B locations. No mining has occurred <br />within the last year and it is possible that some mining may occur in the next 12 <br />months on the east side of the property as shown on the map. A new amendment was <br />submitted in June of 2003 to address changes in the future mining sequencing and <br />reclaimed land use. This amendment has been approved. <br />