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Mount Royale Ventures, LLC <br />9145 Sunshine Canyon Dr. <br />Boulder, CO 80302 <br />Telephone: 720 565-3448 <br />Fax: 720 565-3497 <br />July 20, 2006 <br />Mr. Jim Dupler <br />Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />RECE~~E® <br />JUL 212006 <br />Oiuision of Minerals and GaoloOY <br />.RE: Gold Hill Mill, 2005 Annual Report -Permit M-1994-117 - - <br />Deaz Jim, <br />Mount Royale Ventures, LLC (MRV) submits the following annual report <br />for Permit M-1994-117. <br />During the last year, the work at the Gold Hill Mill consisted of internal <br />mill safety and operational improvements. Additional guarding of mill equipment <br />(per Code of Federal Regulations 30) was installed. Mill circuits were tested <br />following the letter MRV submitted to the Division, June 10, 2005. Test milling <br />of 150 tons of Cash Mine material occurred in the fall of 2005. Mill recovery is <br />satisfactory and indicates promise for near-future testing and milling of the Cash <br />Mine material. <br />Clean-up of the property continued, with additional recycling of scrap <br />steel and disposal of garbage and debris. MRV has flattened the existing <br />stockpiles of material within their current footprint. Topographical surveys have <br />been performed on the stockpile area to begin the final reclamation plan. Weed <br />control has been initiated as several small stands of noxious weeds have appeared <br />within the permit boundary. _ - - - - <br />It is anticipated that the reclamation of the low-grade stockpiles will begin <br />this upcoming year. A technical revision to the permit will be requested to address <br />the final reclamation of these stockpiles. MRV is in process of completing of an <br />appropriate engineering plan for reclamation of this area of the pernut. Test <br />milling of the Cash Mine material will continue in anticipation of future <br />production. <br />MRV continues to operate the Gold Hill Mill as azero-discharge facility. <br />We appreciate the assistance that the Division has given and look forward to <br />continuing our operation as permitted. <br />