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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />O L O <br />D O <br />Denver, Colorado 80203 C D <br />I O N <br />Phone: (303) 866-3567 O V E® RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> MAR 16 2010 A <br />Y <br /> S <br />FET <br />March 12, 2010 DiviWen of Reclamabon <br /> , <br />A mmq and Saf* <br />Bill Ritter, Jr. <br />First National Bank of Durango Governor <br />Attn.: Ms. Kelsey Partridge Harris D. Sherman <br />Executive Director <br />P.O. Box 2910 Ronald W. Cattany <br />Durango, CO 81302 Division Director <br /> Natural Resource Trustee <br />RE: Notice of Possible <br />Forfeiture of Financial Warranty, <br />. <br />Certificate of Deposit Numbers 24457 and 2639% <br />? <br />Wildcat Mining Corporation, May Day Mine;;t <br />ermit No. M-1981-185. <br />Dear Sir or Madam: <br />During the April 14-15, 2010 meeting of the Colorado Mined Land Reclamation Board, the Board will <br />consider a possible violation of the Corrective Actions previously issued to Wildcat Mining Corporation <br />through Violation No. MV-2009-035. If the Board finds a violation, pursuant to C.R.S. 34-32-118(1), the <br />Board could order the forfeiture of the above referenced financial warranties in the amounts of $27,328 <br />for CD No. 26393, and $5,421 for CD No. 24457. Both of these certificates of deposit are held by First <br />National Bank of Durango and assigned to the Mined Land Reclamation Board, Division of Reclamation, <br />Mining and Safety, or State of Colorado DRMS. Please find enclosed copy of the notice to Wildcat Mining <br />Corporation, dated March 11, 2010; copy of the financial warranty for the May Day Mine associated with <br />CD No. 26393, approved December 2, 2009; and copy of the financial warranty for the May Day Mine <br />associated with CD No. 24457, approved March 5, 2007. <br />Pursuant to C.R.S. 34-32-118(2), whenever the Board has reason to believe that a financial warranty is <br />subject to forfeiture, the Board shall so notify the Operator and all Financial Warrantors. The Board shall <br />afford the Operator and all Financial Warrantors the right to appear before the Board at a hearing to be <br />held not less than thirty (30) days after the parties' receipt of said notice. <br />A Formal Board Hearing will be held during the April 14-15, 2010 Board meeting for consideration of a <br />possible violation. The hearing will be held at 1313 Sherman Street, Room 318, Denver, Colorado, <br />beginning at 9:00 a.m. or as soon thereafter as the matter can be considered. At the hearing you will <br />have the opportunity to be represented and heard. <br />Following the hearing, all parties have an opportunity to review and comment on a draft of the Board's <br />order before it becomes final. If you wish to do so, you must provide the Board a written request to <br />review the draft order prior to or at the time of the hearing, or you must inform the Board orally during <br />the hearing that you request to review the draft order. You must include your mailing address and, if <br />possible, a fax or email address. You will be provided a copy of the draft order by e-mail for your review <br />as soon as it is available, unless a hard copy by mail is requested. The Board's attorney must receive your <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines