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OCT-16-08 THU 01:42 PM <br />FAX NO. <br />P. 02 <br />The Union Milling Company <br />6200 S. Vivian Street <br />Littleton, , Colorado 80127 <br />+1.303.947.3499 <br />October 16, 2008 <br />MAR 112010 <br />pin of Reclamation, <br />M'ming and Safety Sent by FAX (970-241-1516) <br />RECEIVED <br />OCT 16 2008 <br />Mr. Steve Shuey GRAND JUNCTKJ,', r 11LLU QfFICE ECEIVED <br />Permit Specialist DIVI.? ON OF <br />RECLAMATION MINING & SAFEW <br />Colorado Department of Natural Resources <br />OCT 16 Division of Reclamation Mining and Safety ti,".' GRAND JUNCI 0.4 r LLD OFFICE <br />101 South Std, suite 301 DIViSiON OF <br />RECLAMATION MINING E, SAFETY <br />(.hand Junction, CO 81501 <br />Re: Permit 90-057 L ae dville Mining and Milling <br />Re, a0-S <br />i-17 •? r <br />frtJ wit 1"p, <br />Dear Mr. Shuey, <br />Constructive Investments, LLC (Cl) is pursuing purchasing the Leadville Mine and . This land purche is <br />ed to Milling Company mill site land, Permit <br />The active permit with this mill site land and mill is <br />close on or about October 27, <br />an integral part of the value of the property. It is imperative that our representatives meet <br />with you to discuss in detail the transfer and continuation of the active permit status of <br />the mill. <br />This is not a usual permit transfer. The current permit encompasses both the Hopemore <br />Shaft and the Leadville Mill. The Hopemore Shaft is currently owned Robert Calder of <br />Leadville CO. CI currently owns the mill and building and is pursuing purchasing the <br />mill site land. The shaft and the mill are NOT adjacent facilities, separated by <br />approximately 8 miles. Union Milling Company, LLC (UMC) is Cl's operating entity <br />for the mill. Robert Calder and UMC/Cl are not related in any manner. <br />As part of the purchase due diligence, prior to the closing of the property, we wish to <br />discuss with you the following: <br />• The separation of the properties from each other through two Technical Revisions <br />(TR) to the existing permit, one for the mine and one for the mill, filed concurrent <br />with separate Succession of Operator (SOO) forms for the mine and mill and <br />separate performance warranties for the mine and mill. <br />• UMC will operate the mill solely for Calais Resources Colorado, Inc. (Calais). <br />Calais currently holds active mine Permit #97-410 for the Cross Mine in Boulder <br />County CO. Calais is leasing the mill site, mill equipment, and contracting with <br />