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PIONEER RECEIVED <br /> SAND COMPANY INC. <br /> MAY 0 9 2001 <br /> May 7, 2001 9ivislon of Marais 00 6661 lr <br /> State of Colorado <br /> Division of Minerals& Geology <br /> 1313 Sherman St, Rm 215 <br /> Denver, CO 80203 <br /> Re: Phillips Ranch Property Gravel Pit <br /> Annual Report M-1997-097 <br /> I. Mining in 2000 continued into phase 2 &phase 3. <br /> 2. Mining in 2001 will finish phases 3 & 4. <br /> 3. No reclamation will occur until phases 3 &4 are completed. <br /> 4. Financial Warranty—Financial warranty is in the form of a bond. Conditions remain <br /> the same and the financial warranty is sufficient. <br /> Pioneer Sand Company, Inc Date <br /> P.O. Box 7650 9 Colorado Springs, Colorado 80933-7650 • (719) 599-8100 <br />