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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2006-003 <br />INSPECTION DATE 04/04/08 INSPECTOR'S INITIALS PSH <br />OBSERVATIONS <br />The purpose of this inspection was to verify the field Cease and Desist order issued by <br />the Division of Reclamation, Mining and Safety on March 4, 2008 for the Hall-Irwin Parker- <br />Dersham Resource. The inspection was conducted by Peter Hays and Jared Ebert of the <br />Division of Reclamation, Mining and Safety. Mr. Jim McFarland and Mr. Eric Vieyra with <br />Hall-Irwin Corporation were present during the inspection. <br />The Parker-Dersham mine site is located approximately 0.75 miles west of Highway 85 on <br />Baseline Road just north of the City of Brighton in Weld County, Colorado. The site is <br />northwest and southwest of the Hall-Irwin Baseline Resources Site, permit no. M-1997-058. <br />The site is a 52.3 acre area on two separate parcels owned by Valerie & Robert Parker and <br />Lot Holding Investments, LLC (formerly Dersham). The proposed post mining land use is <br />pasture land and developed water resources. <br />The Division's inspection on February 27, 2007 revealed mining activities were occurring <br />on the Parker section of the Parker-Dersham Resource prior to a reclamation permit being <br />issued by the Division. The Division issued a field Cease and Desist order on March 4, <br />2008 based on the February inspection and data collected by GPS survey. <br />A berm had been constructed preventing access to the Parker site from the Baseline <br />Resource site since the last inspection. No mining activities or equipment were observed <br />on the Parker site during the inspection. The northern section of the previously <br />disturbed area appeared unchanged since the February inspection. The southern section of <br />the previously disturbed area appeared to be approximately ten feet deeper than previously <br />observed, but consistent with 7 days of mining between the inspection and Cease and Desist <br />Order being issuance. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Mr. Jim McFarland <br />Hall-Irwin Corp. <br />301 Centennial Drive <br />Milliken, CO 80543 <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD ( CH ) <br />Cc: Carl Mount; DRMS <br />