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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Departnnent of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: {303} 866-3567 <br />FAX: (303) 832-8106 <br />r: ?NI <br />FEB 0 9 ?009 <br />COLORADO <br />D f V Is I ON OF <br />PUCLAMATION <br />MINING <br />SA.FETY <br />Mining and EiF'??y <br />FINAI CIAL WARRANTY <br />LETTER OF CREDIT <br />Operator: Rimrock Exploration and Development Inc. <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executivo Director <br />Ror}ald W. Cartany <br />Division Director <br />iraturaf Resource Trustee <br />Operation: J Birds <br />PermitNo.: M-2005-050 <br />Bank: The Citizens State Bank of Ouray <br />Street. 111 HWY 97 <br />City: __Nat- uri t o <br />State: Co. Zip Code: 81422 <br />Area Code: 9 7 0 Telephone: 8 6 5- 2 2 5 5 <br />This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117, C.R.S., <br />of the Mined Land Reclamation Act and 34-32.5-117, C.R.S., of the Colorado Land Reclamation Actfor the <br />Extraction of Construction Materials. Any alteration or modification of this form, without approval by the <br />Board shall result in the financial warranty being invalid and result in the voiding of any permit issued in <br />conjunction with such invalid financial warranty and subject the operator to cease and desist orders and civil <br />penalties for operating without a permit pursuant to sections 34-32-123, C.R.S., of the Mined Land <br />Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials. <br />KNOW ALL ME NT BY THESE PRESENTS, THAT: <br />'WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 1973, 34-32-101, et Lrq. (the "Act"), as <br />amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the <br />"Board") receives a Financial Warranty (or Warranties) as described in the Act. <br />WHEREAS, Rimrock Exploration and Development Inc. (the "Operator"), a <br />Colorado corporation, has applied for a permit to conduct a mining <br />operation known as J Birds (the "Operation"), on certain lands in <br />Montrose County, Colorado. These lands are described in the permit application, as amended <br />and supplemented., and are referred to herein as the "Affected Lands". <br />Office of office of <br />;dined Land Reclamation Denver • Grand Junction . Durango Active and Inactive Mines