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{ <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 1,2006 <br />Valco, Inc. <br />P.O. BOX 591 <br />Lamar, CO 81052 <br />OLORADO <br />(VISION OF <br />IINSRALS <br />EOLOGY <br />C LAMATION•MIN ING <br />SAfETY~SOENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />Under the terms of your Reclamation Permit and Colorado Statutes, you must submit Annual Fees and Annual <br />Reports. You must pay the Annual Fee and submit an Annual Report each year until reclamation responsibility <br />release is granted. The Annual Fee is not a renewal fee. The fee and the report are for LAST YF'ARS mining and <br />reclamation season, and MAST be received even if your operation was in an inactive state. The fee and report are <br />due ON OR RFFORF. your permit anniversary date shown below. <br />If you have requested reclamation responsibility release from the Division of Minerals and Geology (the <br />"Division") but your permit is not released by your anniversary date listed below, the annual fee MTTST be paid. If <br />the permit is released before the anniversary date, then by Statute, you do not pay an annual fee or submit an <br />annual report for that year. <br />Pi.F,ASF. NOTF,: IF THE ANNUAL FEE, ANNUAL REPORT, AND A MAP ARE NOT RECEIVED ON OR <br />RFFORF YOUR ANNIVERSARY DATE, A FORMAT NOTTCF OF VTOT ATTON AND A ROARD ORDER TO <br />PAY ('(VII. PF.NAT.TIFS IN THE AMOUNT EQUAL TO THE ANNUAL FEE $ 688.00 WILL BE <br />AT iTOMATTCAT T Y ASSESSED, NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED <br />TO ANY OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34- <br />32.5-120 OR C.R.S. 34-32-120) UNTIL THE VIOLATION IS ABATED. <br />Division records indicate $ 688.00 fee is due <br />Permit No.: M-1977-572 <br />Operation Name: Lamar East Pit <br />Anniversary Date: March 2Z, 2006 <br />Total Fee Due: $688.00 (Due on or before your Anniversary Date) <br />If your records indicate different facts than those stated above please notify the Division. <br />Please return the enclosed annual report FORM, a MAP, and a CHF.(K or MONRY ORDER made payable to the <br />Division of Minerals and Geology, 1313 Sherman St., Room 215, Denver, Colorado 80203. <br />Thank you for your cooperation in this matter. If you have any questions, please feel free to contact Jim Dupler at <br />(303)866-6277. <br />Office of <br />Mined Land Reclamation <br />Office of Colorado <br />Active and Inactive Mines Geological Survey <br />