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<br />LJ DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0768 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />PHONE: 303-866-3567 <br />DATE: September 5, 2008 <br />RE: ANNUAL REPORT <br />PERMITTEE NAME: <br />PERMIT NO.: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />TAMROCK GRAVEL COMPANY <br />M-2001-068 <br />BOTTOMLESS PIT <br />September 17, 2008 <br />$ 791.00 <br />LAS ANIMAS <br />Gentlemen: <br />The check in the amount of $791.00 for the annual fee for the preceding year was sent <br />pervious to this map and report. Mining has active for the past year. Mining deeper and <br />increasing the affected area by approximately 20.10 acres. The pit was expanded to phase <br />3 and phase 4 last year. Market demand may increase this next year and more <br />disturbances will take place as demand increases. This pit is a long-term resource that <br />will be in production for many years. This is an active pit. Please see map for details. <br />Sincer <br />Joe Gagliano <br />Consultant <br />Xc: TAMROCK GRAVEL <br />file