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.Tla y ,X esources. Inc. <br />dba Pay Sand & Cranel <br />1412 County,7t.oad 311 <br />)Vew Castle. CO 81647 <br />970.876.2397 <br />fax 970-876-5232 <br />fred and Janet fret <br />November 24, 2008 <br />Mr. Steve Shuey <br />Grand Junction Field Office <br />Division of Minerals and Geology <br />1313 Sherman Street, Suite 215 <br />Denver, Colorado 80203-2273 <br />Dear Mr. Shuey: <br />Re: Flag Resources, Inc <br />Please find attached copies of the annual reports for Flag <br />Resources, Ines: <br />Goldman Pit - Anniversary Date 11/22/2008 <br />MLRB Permit No. M-78-279, <br />and <br />Silt Pit - Anniversary Date 11/27/2008 <br />MLRB Permit No. M-81-202 <br />The effective date of all information contained on the <br />attached Annual Reports is November 19, 2008. Attached are <br />checks for the annual fees of $323.00 for Goldman and $791.00 for <br />the Silt Pit. If you have any questions please call me. <br />Respectfully S mitted, <br />Fred Frei <br />President <br />enclosure <br />cc File <br />Environment, Inc.