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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-1997-014 <br />INSPECTION DATE: 03 March 2010 <br />INSPECTOR'S INITIALS: DR2 <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation <br />Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION <br />DATE <br />1. Problem: The sign required by Rule 3.1.12 (1) is missing. 5 /21 /10 <br />PB or PV: _P3 <br />TOPIC(S): --S[YL <br />Corrective action: Operator should replace the missing. sign and provide to DRMS photo <br />documentation showing the sign in place within 60 days of the date of this report. The sign must be <br />posted at the entrance to the mine and be clearly visible from the access road. The sign must include <br />the following: 1) The name of the Operator. 2) a statement that a reclamation permit for the operation <br />has been issued by the Colorado Mined Land Reclamation Board. and 3) the permit number. <br />2. Problem: The Financial Warranty is not at a level which reflects the actual cost to reclaim the 5 /21 /10 <br />site as required by Rule 4.2.1 (1) <br />PB or PV: PB <br />TOPIC(S): ALL <br />Corrective Action: Submit additional Financial Warranty in the amount of $81.900 with 60 days of <br />the date of this report. which will be 21 May 2010. The new Financial Warranty for the site will be <br />$334,400.