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<br />J. M. BECK & ASSOCIATES <br />6130 W. Vassar Way <br />Lakewood, Colorado 80227 Mining & Environmental Engineering <br />August 19, 2010 y <br />Telephone (303) 985-1521 <br />Fax (303) 985-1532 <br />E-mail: jmbeckpe@comcast.net <br />Mr. Allen C. Sorenson / ?C <br />NJ Colorado Department of Natural Resources r/ <br />Division of Reclamation, Mining, and Safety <br />1313 Sherman Street - Room 215 <br />Denver, CO 80203 <br />RE: Supplemental Information Submittal <br />Notice of Intent to Conduct Prospecting Operations (Submitted August 2, 2010) <br />AGC Resources LLC - Front Range Gold Project <br />Boulder County, Colorado <br />Dear Allen: <br />On behalf of AGC Resources, LLC ("AGC'), J. M. Beck & Associates is submitting the attached <br />"Supplemental Information" in response to our telephone conversation of this date. Please note that AGC <br />stipulates to the following: <br />• AGC concurs with the DRMS requirement for full-depth abandonment with a bentonitic gel seal and <br />herein commits to a maximum of four (4) borings and/or a not-to-exceed limit of 2,000 linear feet of <br />total drilling at any one time (prior to commencing drilling activity at any other boring and/or pad <br />location), and herein requests that bonding requirements specific to this component be calculated <br />accordingly. Thus, the bond would "move" with advancement to a subsequent set of 4 borings. <br />• AGC concurs with and will honor the DRMS requirement for site-specific restoration and reclamation <br />calculations in lieu of the Rule-specified amount of $2,000 per acre, and herein requests that bonding <br />requirements specific to this component be calculated accordingly. <br />• AGC does not object to public release of information as pertaining to the maximum number of holes <br />to be drilled. AGC respectfully retains the right to confidentiality with respect to hole depth, <br />orientation, and location/coordinates. <br />In order to expedite final approval of our Notice of Intent, this communication is being provided by email, <br />with hardcopy to follow. If DRMS can timely advise AGC as to the incremental (in excess of the $2,000 <br />already submitted) financial warranty required, AGC will immediately submit a check for that amount and <br />ensure that appropriate revisions to the financial warranty form are made. We appreciate any and all <br />efforts by DRMS to facilitate a timely conclusion to this process. If you have any questions, please <br />contact me at (303) 985-1521, <br />Sincerely, <br />J. M. BECK & ASSOCIATES (On behalf of AGC Resources, LLC) <br />Ja vt w M. Beck <br />James M. Beck, P.E. <br />Principal/Mine Engineer <br />attachment