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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1997-089 <br />INSPECTION DATE 4/13/10 <br />INSPECTOR'S INITIALS WHE <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. The Division has reviewed h current o of reclamation totaling $50,91 <br />Therefore, the existing $17.232 financial warranty appears insufficient 8 /2 / 10 <br />PB or PV: PB <br />CORRECTIVE ACTION: TOPIC(S): FN <br />Pursuant to Rule 4.2.1(2) the Operator has 60 days from the signature date of this <br />notice, by August 2.2010 to post $33,681 additional financial warranty to ensure a <br />total financial warranty not less than $50,913. <br />Certificate of Service <br />I, Wallace H. Erickson, hereby certify that on this 1St day of June, 2010, 1 deposited a true copy of the <br />foregoing inspection report, signed June 1, 2010 and generated from the April 13, 2010 inspection of the <br />Stone Gravel Pit, Permit No. M-1997-089, and CIRCES reclamation cost estimation totaling $50,913, in <br />the United States Mail, postage paid, addressed to the following: <br />Kathy Stone <br />Stone Sand & Gravel <br />P.O. Box 1568 <br />Cortez, CO 81321 <br />Signature