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9/22/2008 <br />Review of Reclamation Bond Adequacy: <br />Pursuant to Colorado Mineral Rules and Regulations Rule 1, Section 1.15(1) (a), the <br />level of financial warranty for the Schwartzwalder Mine was accepted by the Division of <br />Reclamation, Mining and Safety on June 16, 2003 in the amount of $104,082.52. The <br />bond amount is determined to be sufficient at this time to cover all DRMS related <br />reclamation cost. <br />A check in the amount $633.00 is attached to this report as payment for the Reclamation <br />Permit Mo. M-1977-300 annual fee. <br />If you have any questions or comments, please do not hesitate to contact Craig Harlin at <br />918.681.4982, or Jim Cain at 719.275.7413. <br />Sincerely, <br />Gus Gaviotis <br />VP of Accounting and Finance <br />XC: Jim Cain <br />Craig Harlin <br />David Bird