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GOLD MOUNTAIN METALS, INC <br />PO Box 29 Sharon Center, OIL 44274 <br />330-703-8565 <br />July 10, 2008 <br />Colorado Division of Reclamation, Mining & Safety <br />1313 Sherman St <br />Room 215 <br />Denver, CO 80203 <br />Subject: 2008 Annual Report & Fee Payment for Gold Basin Mine, Permit M-1992-045 <br />Dear Colorado Division of Reclamation, Mining & Safety, r F <br />This letter is to serve as the 2008 Annual Report of Activities for Gold Basin Mine, Permit <br />M-1992-045. Also included in this mailing is a check for $259.00 for payment of the 2008 <br />annual permit fee. <br />As a reminder, the mine location is at 12,200 feet elevation and the mining season is only 90- <br />120 days and weather dependent. <br />Approximately 1500 yards of previously disturbed bank run material was processed during <br />the 2007 season. This material was removed from the 3.06 acre permitted area as indicated <br />on the attached diagram. The boulders were placed in the reclamation area shown in the <br />diagram at the northwest corner of the 3.06 acre section to help minimize erosion from the <br />hillside in that area. The washed #3 stone was used to improve roadways in the 3.06 acre <br />section, fill in eroded areas and also placed in the reclamation area shown in the middle of <br />the 3.06 acre section of the attached diagram. The tailing sands were used to improve <br />roadways within the 3.06 acre section, fill in eroded areas and also placed in the reclamation <br />area shown at the east end of the 3.06 acre section of the attached diagram. No top soil was <br />removed during 2007. <br />The mining and reclamation activities for 2008 are unknown at this time as Gold Mountain <br />Metals, Inc will no longer be operating the site. It is anticipated that a Succession of <br />Operators form will be filed with your office shortly to transfer the Permit to the new <br />operators. <br />Sincerely, <br />Steven M. Ryba <br />Secretary & Treasurer, <br />Attachment