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Additionally the operators' consultant modified the Cardinal Land Surveying, Inc. MINING AREA <br />SURVEY to show the PROPOSED MINING AREAS and the NON-MINING AREAS. The modified <br />map is enclosed and marked as the "TECHNICAL REVISION MAP". The PROPOSED MINING <br />AREAS will be mined at a future time they contain 34.60 acres combined. The NON-MINING <br />AREAS will not be mined in the future and contain 22.70 acres combined. <br />The methodology used to calculate the financial warranty is as follows: <br />In order to comply with the Division of Reclamation, Mining and Safety request the operator <br />determined that the area that has been affected added together with the future proposed areas <br />totaled 91.31 acres and that the area that needs revegetation only is 30.78 acres. The operator is <br />submitting a new EXHIBIT "L" using the above numbers. Please see the task breakdowns on the <br />enclosed EXHIBIT "L". The total cost estimate prepared by the operator is $ 108,376.00. <br />In summary, the operator does agree with the Division of Reclamation, Mining and Safety that <br />the permit should be a non-phased operation and an increase in the financial warranty is prudent <br />and necessary. <br />If you need additional information, please call me at 719-240-9424 or e-mail at <br />jpana,incasys.com. Thanks for you concern in this matter. <br />Sincere <br />Joe Gagliano <br />Consultant <br />Cc: file <br />TONY J. BELTRAMO & SONS, INC. <br />Tony Waldron DRMS Supervisor <br />Enclosure: MINING SURVEY MAP <br />TECHNICAL REVISION MAP <br />EXHIBIT"L" <br />CERTIFIED MAIL: 7007 2680 0002 7551 4857