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• PERMIT #: M-1977-546 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 4, 2010 <br />OBSERVATIONS <br />According to annual reports there has been no mining activity within the last ten years. Pursuant to Rule 3.1.3 all <br />reclamation shall be completed within five years from the date that mining ceases and reclamation begins. The pit has <br />been backfilled and reclamation of the site is nearly completed, except for some minor grading of the stockpile area and <br />removal of several small stockpiles. <br />An adequate financial warranty amount has been calculated for the remaining reclamation of the site. The bond <br />calculation worksheets are included at the end of this report. The financial warranty amount currently held by DRMS <br />exceeds the estimated amount needed to complete reclamtion of the site. If the Operator wishes to reduce the warranty <br />amount held by DRMS, he must submit a request for reduction pursuant to Rule 4.14. <br />No problems or violations were noted during this inspection. <br />Inspection Contact Address <br />Brice F Lee & Phyllis J Lee <br />940 CR 119 <br />Hesperus, CO 81326 <br />Cc: Gayle Lyman, Elam Const <br />Page 2 of 2