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KAGAN & SON, LLC. <br />555 Ernest Avenue <br />Westcliffe, CO 81252 <br />(719) 783-9636 FAX (719) 783-3039 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />DATE: September 28, 2010 <br />RE: ANNUAL REPORT <br />PERMITEE NAME: <br />PERMIT NO: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />Gentlemen: <br />KAGAN & SON, LLC <br />M-1994-114 <br />KAGAN & SON SOUTH PIT <br />5-Oct-10 <br />$323.00 <br />CUSTER <br />M C ?I rD <br />MA 0 1 2010 <br />l ing znd1 :B2f*ty <br />Attached is a cheek in the amount of $323.00 for the annual fee for the preceding year. <br />Mining has been occurring this year and will continue for the foreseeable future. The <br />disturbance area increased the surface disturbance by approximately 1 acre therefore <br />the is now approximately 3.25 acres and the mining will go to the south next year. <br />This pit is a long-term resource that will be in production for many years. This is an <br />active pit. Please see map for details. <br />Sincerely, <br />Andrew Kagan <br />Managing Member <br />cc: Fremont County <br />LJ Development, Inc.