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r- <br />i <br />Q DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0768 <br />Date: JUNE 19, 2008 <br />Annual Report Department <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: ANNUAL FEE AND REPORT <br />PERMIT NUMBER: M-2001-033 <br />PERMITTE NAME: ROUGH CUT, LLC <br />OPERATION NAME: ROUGH CUT PIT <br />ANNIVERSARY DATE- JULY 17, 2008 <br />ANNUAL FEE: $ 791.00 <br />COUNTY: OTERO <br />To Whom It May Concern: <br />To complete the requirements for the Annual report we are submitting a map, which is <br />attached with this annual report letter. The active mining face of the pit has moved west <br />approximately 400 feet since last year and some crusher fines have been stockpiled to the <br />south central portion of the phase 1 in the pit. This is an active pit and mining and <br />reclamation are ongoing concurrently. The new disturbance this year is about 2.80 acres. <br />Next year will continue at the about the same pace. <br />A check in the amount of seven hundred ninety one dollars ($791.00) is enclosed with <br />this letter for the year of 2008 Annual Fee. <br />If you have any questions please call me at 719-240-9424 or fax me at 719-583-0768. <br />Sincer , <br />Joe Gagli o <br />Consultant <br />Cc: ROUGH CUT LLC