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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1 3 1 3 Sherman St., Room 215 C O L O R A D O <br />Denver, Colorado 80203 D I V I S I ON OF <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 f MINING <br />E <br /> SAF <br />TY <br /> OCT 14 <br />ZpO? <br />September 30, 2007 <br />Division of Re <br />i Bill Ritter, Jr. <br />Governor <br /> c <br />amation, <br />IV; <br />Mr. Carl F. Dismant and Safety Harris D. Sherman <br />Bachelor Silver Mines Company Executive Director <br /> <br />P.O. Box 965 Ronald W. Cattany <br /> Division Director <br />Ouray, CO 81427 Natural Resource Trustee <br />Re: Bachelor Mines, Permit No. M-1980-170, Financial Warranty Increase, Revision No. SI-2 <br />Dear Mr. Dismant: <br />On July 12, 2006 the Division of Reclamation, Mining and Safety increased the current Financial Warranty for this <br />permit to $7,283.00, in accordance with Rule 4.2.1 of the Rules and Regulations. This is an increase of $1,027.00. <br />The Division ordered amendment of the current Financial Warranty, or submittal of a new Financial Warranty reflecting <br />the increase, within 60 days from the date of the original letter. The Division is willing to extend that deadline to within <br />60 days of receipt of this letter. Please submit the required Financial Warranty within the deadline period. Failure to do <br />so will result in a possible violation and eventual revocation of the permit and forfeiture of the current bond. If you wish <br />to submit a different type of Financial Warranty, please contact me such that I may send you the applicable form. <br />Sincerely, <br />Kat A. Pickford <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines