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The Union Milling Company <br />6200 S. Vivian Street <br />Littleton, Colorado 80127 <br />+1.303.947.3499 <br /> <br />March 18, 2009 <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />Attn. Elizabeth Taliaferro E C F <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 MAR 2b 2009 <br />Division of kz ciamation, <br />Re: Permit Succession of Operator - M1990-057 Mining and Safety <br />Dear Ms. Taliaferro, <br />Enclosed are the signed Transfer of Permit and Succession of Operator (SOO) application form, <br />Performance Warranty form, and financial warranty per SOO Option B instructions. Two 3`d-party <br />Letters of Credit are included. Bank balance sheets are also included. <br />If you have any questions or need additional information, please contact me at 303-638-2573 or <br />melder@unionmilling.com. Thank you for your help in this matter. <br />Sincerely, <br />J. Michael Elder, PE <br />Environmental Compliance <br />Cc: Mr. Nick Michael - UMC - email <br />Mr. Dave Young - Calais Resources - email <br />Mr. Thomas. S. Hendricks - Calais Resources - email <br />Mr. John Brownlie - Capital Gold Corp. - email <br />Mr. Scott Hazlitt - Capital Gold Corp. - email <br />Mr. Robert Calder - Hopemore Shaft - email <br />Express Mail <br />EU327417147US