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LJ DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0768 <br />Date: June 8, 2010 <br />Annual Report Department <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: ANNUAL FEE AND REPORT <br />PERMIT NUMBER: M-2001-033 <br />PERMITTE NAME: ROUGH CUT, LLC <br />OPERATION NAME: ROUGH CUT PIT <br />ANNIVERSARY DATE: JULY 17, 2010 <br />ANNUAL FEE: $ 791.00 <br />COUNTY:OTERO <br />To Whom It May Concern: <br />To complete the requirements for the Annual report we are submitting a map, which is <br />attached with this annual report letter. The active mining face of the pit has moved north <br />approximately 150 feet since last year and the mining will proceed to the south to <br />intercept the existing mining face. This is an active pit and mining and reclamation are <br />ongoing concurrently. The new disturbance this year is about 3.20 acres. Next year will <br />continue at the about the same pace. <br />A check in the amount of seven hundred ninety one dollars ($791.00) is enclosed with <br />this letter for the year of 2010 Annual Fee. <br />If you have any questions please call me at 719-240-9424 or fax me at 719-583-0768. <br />SinlGaggli , <br />Joe o <br />Consultant <br />Cc: ROUGH CUT LLC