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LJ DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0768 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />PHONE: 303-866-3567 <br />DATE: August 24, 2009 <br />RE: ANNUAL REPORT PERMIT NUMBER M-2003-002 GHOST RIVER GRAVEL PIT <br />PERMITTEE NAME: <br />ADDRESS: <br />PERMIT NO.: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />Gentlemen: <br />Stone Cliff Investments, LLC <br />324 W. Division Road <br />Valparaiso, IN 46385 <br />M-2003-002 <br />GHOST RIVER GRAVEL PIT <br />August 11, 2009 <br />$ 323.00 <br />HUERFANO <br />This pit has been worked little last year. The pit is open for business all year long. The Pit is <br />actively mined and material processed usually once per or once per two years. This pit provides <br />materials for consumption in the surrounding area. Materials are stockpiled and used as needed. <br />New disturbance was limited to less than 1/4 acre last year. Next years operations will be typical <br />of last year's activity mining and stockpiling and delivery to projects. <br />The annual fee check for $ 323.00 has been enclosed with this report along with an updated <br />annual report map. This is a long-term pit and it will be in production for the life of the mine. <br />incerely, <br />Joe Gagliano <br />Consultant <br />Encl. Check & Map <br />Cc: Stone Cliff Investments, LLC <br />CERTIFIED MAIL 7D0" CL'G- 7S5/ 2,j