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<br />Greg Lewicki And Associates <br />11541 Warrington Court <br />Parker, CO USA 80138 <br />May 24, 2008 <br />Phone: (303) 346-5196 Fax (303)-346-6934 <br />E-Mail: greg@lewicki.biz <br />Michelle Ramirez <br />Colorado Division of Minerals and Geology <br />Minerals Section <br />1313 Sherman Street 2nd Floor <br />Denver, CO 80203-2273 <br />ECEiVE® <br />MAY 2 8 2008 <br />Division of R d S fa ety n, <br />M:ning <br />Re : Annual Report B&B Excavating, Inc. Montgomery Pit, <br />MLR No. M-86- 104 /Tax I.D.# 84-0601382 <br />Dear Michelle: <br />Enclosed is the Annual Report for the past year for Montgomery Pit, including map and <br />report form. Past records show that the annual date for the pit is May 24 of each year. <br />The financial warranty for the permit is $83,830 and the total permit area is 46.08 <br />acres. The mining and reclamation plan has three phases. <br />The following information is provided to comply with Rule 2.4.1: <br />(1) 2.37 new acres of disturbance occurred in the past year in the permit area. A small <br />amount of new mining occurred on 0.16 acres near the western edge of the permit area. <br />This acreage was previously disturbed. See attached Annual Report Map for these areas. <br />Mining has permanently ceased and the site is assuming its permanent end use as a <br />commercial site. The new shop and office area were constructed in the past year west <br />of Skillman Gulch. The site will become the central processing area for B&B in Eagle <br />County, since activities at the Calhoun Eaton Pit at Edwards are winding down. The <br />material will be imported from other B&B locations once the mined material on site <br />stockpiles is sold. The site will now be used only as an industrial site for the <br />processing of imported washed gravel into concrete and asphalt. A well is also being