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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 />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 21.5 <br />DENVER, COLORADO 80203 <br />PHONE: 303-866-3567 <br />DATE: September 7, 2010 <br />RE: ANNUAL REPORT <br />PERMITTEE NAME: <br />PERMIT NO.: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />TAMROCK GRAVEL COMPANY <br />M-2001-068 <br />BOTTOMLESS PIT <br />September 17, 2010 <br />$ 791.00 <br />LAS ANIMAS <br />Gentlemen: <br />The check in the amount of $791.00 for the annual fee is enclosed with this map and <br />report. Mining has been active for the past year. Reclamation work has taken place Phase <br />1 and Phase 2 reducing the surface disturbance by 13.9 acres. Phase 3 and Phase 4 are <br />now in production, which is 14.8 acres. The net affected new land is zero. Next year the <br />will mininb continue deeper not increasing the surface area. This operation is not <br />expected to expand its affected land area next year. If market demand increases next year <br />the operator will expand to Phase 5 if necessary. This pit is a long-term resource that will <br />be in production for many years. This is an active pit. Please see map for details. <br />Sincer <br />v Joe &glino <br />Consultant <br />Xc: TAMROCK GRAVEL <br />file