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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1981-185 <br />INSPECTION DATE 4/8/10 <br />INSPECTOR'S INITIALS WHE <br />with the exception of relocating 5,000 cubic yards of ore materials from an underground stope to the portal pad <br />at the Level 1 area. A subsequent Cease and Desist Order, associated with Violation MV-2010-001, was issued on <br />March 5, 2010. The Cease and Desist Order for Violation MV-2010-001 did not include any such exception and as <br />of March 5, 2010, all mine related activities at the May Day Mine are prohibited. <br />The evidence of recent activities at the Level 1 portal, observed during the inspection and recorded in this report, <br />may have occurred prior to March 5. Therefore, at this time the Division finds no evidence to support the <br />allegations that the Operator is in violation of any of the Cease and Desist Orders issued to the May Day Mine or <br />the Idaho Mill. <br />The Operator has submitted an application to amend the May Day Mine permit to update the permit in <br />accordance with the Board's orders. On April 6, 2010, the Office found the application complete for the purposes <br />of filing and commenced the review period of Amendment No. 01 (AM-01). According to the revised newspaper <br />publication, appearing in the Durango Herald on April 16, 2010, the public comment period will close on April 26, <br />2010. The decision date for AM-01 is May 6, 2010. <br />The Division holds $148,329 financial warranty, which is sufficient to complete reclamation. <br />Response to this inspection report should be directed to Wally Erickson at the Division's office in Durango at 691 <br />County Road 233, Suite A-2, Durango, Colorado 81301, phone (970) 247-5469. <br />I & E Contact Address <br />NAME Mike Clements <br />OPERATOR Wildcat Mining Corporation <br />STREET 108 Linda Court <br />CITY/STATE/ZIP Durango, CO 81301 <br />cc; Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />X Complainant, Phil Vigil