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ECEIVED <br />APR 1 5 2002 <br />4Pine River <br />Y BIAN]?CsiOrl at Minerals and Geology <br />301 N. COMMERCE DR. • BAYFIELD, COLORADO 81122 <br />970-884-9583 • FAX 970-884-0214 <br />1-877-550-9583 <br />JAMES W. SOWER • President <br />IRREVOCABLE LETTER OF CREDIT <br />The PILAF R IVFR VAT T .FY Bank of <br />Street: <br />City: BAYF IELD <br />State: COLORADO <br />Area Code: 970 Telephone: 884-9583 <br />Beneficiary: <br />STATE OF COLORADO <br />MINED LAND RECLAMATION BOARD <br />215 CENTENNIAL BUILDING <br />LETTER OF CREDIT NUMBER: 095 <br />Amount U.S. $ 115,646.00 <br />Date of Issuance: April 8, 2002 <br />1313 SHERMAN STREET <br />DENVER, COLORADO 80203 <br />Applicant: SHE DON GOSNEY <br />Street: PO BOX 1186 <br />City: BAYFIELD <br />State: COLORADO Ziy Code: 81122 <br />Area Code: 970 Telephone: 563-4684 <br />Permit No: M-1977-446 County of Operation: LA PLATA <br />Gentlemen: <br />We hereby issue and establish our Irrevocable Letter of Credit, the amount of which is <br />available by beneficiary's draft or drafts drawn upon us, which shall be paid at sight, <br />when accompanied by the following document: <br />A written statement of the Director ("the Director") of the Division of Minerals <br />and Geology of the State of Colorado ("the Division") certifying that he is a duly <br />authorized official acting on behalf of the State of Colorado and that the amount <br />of the accompanying sight draft is due and payable to the State of Colorado <br />pursuant to applicable provisions of Colorado statutes governing mined land <br />reclamation and that SHELDON GOSNEY or its successor has neglected, failed, <br />or refused to pay such amount although requested to do so by the Director. <br />MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION