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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1985-023 <br />INSPECTION DATE 712512007 <br />INSPECTOR'S INITIALS SSS <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land <br />Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMSIPOSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION <br />DATE <br />1 adequate financial warranty has not been Submitted ac, mquirrcl by CRS 34-32.5-117(4)_ <br />09 / 12 / 2007 <br />PB or PV: __ffi <br />CORRECTIVE ACTION: TOPIC(S): FN <br />Documents for the increased warranty amount must be corrected to DRMS satisfaction by <br />-- <br />Sentember 12. 2007. Additionally, evidence of re-instatement of Holfenbeck Inc. with the <br />Secretary of State or a correctly executed Succession of Operator form for this permit must also <br />be submitted to DRMS by September 12, 2007 to ensure the financial warranty is acceptable. <br />2. . See nravinus rppart rppardi affected area ma_rki-nz <br />PB or PV: _ <br />CORRECTIVE ACTION: TOPIC(S): <br />3. <br />PB or PV: - <br />CORRECTIVE ACTION: TOPIC(S): <br />), Steve Shuey, hereby certify that on August 20, 2007, 1 deposited a true and complete copy of this foregoing inspection report <br />in the United States Mail, first class postage paid, to the operator of record for this site at the address indicated, and to those <br />others within the body of this report who have been designated to receive copies (DRMS) personnel excepted). <br />1 5 ?0-j <br />'Signature