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<br />LJ DEVELOPMENT, INC. <br />256N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0768 <br />Date: June 22, 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-1997-0011 <br />PERMITTE NAME: BACULI I'E MESA, LLC <br />OPERATION NAME: BACLJLITE MESA PIT <br />ANNIVERSARY DATE: JULY 9, 2010 <br />ANNUAL, FEE: $ 791.00 <br />COUNTY: PUEBLO <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 <br />southwest since last year and the miming will proceed to the southwest, while reducing <br />the highwall. This is an active pit and mining and reclamation are ongoing concurrently. <br />The new disturbance this year is about 0.25 acres. Next year will disturb approx. 0.25 to <br />0.50 acres. <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 />Sincer- <br />' `A c <br />f V <br />Joe Gagliano <br />Consultant <br />Cc: NACULITE MESA , L.LC