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MINE ID # / PROSPECTING ID #: M-1985-212 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: July 16, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). David Towns of Arkins Stone Corp. was also present for the inspection. The Arkins Park Quarries are <br />located 2.25 miles south of Masonville, Colorado in Larimer County. The site is permitted for 177 acres and the <br />post-mining land use is rangeland. <br />On December 16, 2010, the Division conducted an inspection of Arkins Park Quarries and determined the <br />financial warranty amount of $50,000.00 was not adequate to complete reclamation. The Division's calculations <br />estimated the cost to reclaim the site to be $156,245.00, an increase of $106,245.0000 over the $050,000.00 currently <br />held by the Division. The increase financial warranty was to be submitted to the Division on or before April 4, <br />2010. The Permittee requested an extension for submitting the financial warranty on April 8, 2010. The Division <br />approved the request and extended the financial warranty submittal date to June 11, 2010. The Operator notified <br />the Division reclamation had been performed at the site, thereby reducing the cost to perform reclamation. The <br />purpose of this inspection was to assess the reclamation and determine the cost to perform any remaining <br />reclamation activities. <br />Reclamation activities were performed in two separate areas: the south quarry and the middle quarry. In both the <br />south and middle quarry areas, the Operator has cleared piles of small broken stone, which will be sold for <br />landscaping, from the slopes. The stone has been placed into distinct piles in the staging area, located at the <br />bottom of the slopes. In addition, topsoil has been placed on the slopes where the stone has been cleared. The <br />Division will recalculate the cost to complete reclamation based on the most recent observations. Notice of the <br />revised financial warranty amount will be sent under separate cover. <br />This concluded the inspection. <br />Page 12