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J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br /> <br />February 25, 2008 <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />FEB 2 8 <br />2008 <br />Division off.., <br />Mining and Saint <br />y <br />J. J. Dudash <br />- - -Division-of-Reclamation, Mining &--Safety---- <br />1313 <br />Sherman St., Room 215 <br />Denver, CO 80203 <br />Re: Bowie Resources, LLC, Bowie No. 1 Mine <br />Permit Renewal <br />Permit C-1981-038 <br />Dear Mr. Dudash: <br />The DRMS' letter dated February 1, 2008 transmitted a summary of the reclamation <br />bond estimate. On behalf of Bowie Resources, LLC, the DRMS' calculated total liability <br />of $4,123,457.14 is acceptable. Bowie Resources, LLC understands the total bond <br />held by the DRMS will be $4,624,936 because of the 60% limitation for bond release. <br />Please call with any questions. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer <br />