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~S <br />Mount Royale Ventures, LLC <br />9145 Sunshine Canyon Dr. <br />Boulder, CO 80302 <br />Telephone: 720 565-3448 <br />Fax: 720 565-3497 <br />October 30, 2006 <br />Michelle Ramirez <br />.~"D Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />~nS~Z <br />/p~ol~ ~~ <br />~~~lia ~q ~~+ <br />~~Ir:~ <br />~ PJOV 0 ~ 20Q~ <br />1/DiViston m Re~+3G1ai100, <br />~"'~'+~a end Safety <br />RE: Cash and Who Do Mines, 2005 Annual Report -Permit M-1983-141 <br />Dear Ms. Ramirez, <br />Mount Royale Ventures, LLC (MRV), operator of the Cash and Who Do Mines <br />(DBMS -Permit M-1983-141), is pleased to submit the following annual report for <br />activities performed at out operation during the period from September 7, 2005 to <br />September 7, 2006. <br />2005/6 Activities <br />MRV has rehabilitated the majority of workings within the Cash Mine 3`d level. The <br />raises from the 3`d level to the surface have been completely rehabilitated to provide for <br />secondary escape, ventilation and utility access. Exploration and development work have <br />provided promising results, with small batches of material sent to MRV's mill (DBMS - <br />Permit M-1994-117). Surface and underground surveying has been ongoing. Access to <br />the underground workings has been via an adit driven in conjunction with prospecting <br />operations (DBMS -Permit P-2004-007). <br />MRV has maintained the roads within the permit azea at a level of safety required by <br />federal regulations (CFR30). Stormwater drainage and sediment traps have been <br />maintained. Uphill water diversions have been maintained above the active areas. <br />Reclamation was not performed significantly beyond the hand distribution of seed on <br />minor areas adjacent to roadways. Please refer to the lazge scale cleanup information <br />provided in the previous yeaz's annual report. General site cleanup has continued, with <br />additional scrap steel recycling and some pine beetle mitigation. <br />Planned 2006/7Activities <br />The Division on October 10, 2006 approved amendment No. 2 (AM2) to this permit. <br />This amendment redefines the permit boundaries and includes the Cash Mine 3rd level <br />