2010-11-02_REVISION - M1985029 (7)

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American N ati o n a l Bank Member Sturm Financial Group IRREVOCABLE LETTER OF CREDIT American National Bank 1912 Capitol Avenue Cheyenne, Wyoming 82001 307-778-5303 RECEIVED JAN 017 2004 Division of Minerals & Geology Beneficiary: STATE OF COLORADO MINED LAND RECLAMATION BOARD 215 CENTENNIAL BUILDING 1313 SHERMAN STREET DENVER, COLORADO 80203 Applicant: Willits Company Inc. Letter of Credit Amount U.S.: $50,936.00 Date of Issuance: 11/7/03 Initial Expiration Date: 11/7/04 Street: PO Box 825 City: Cheyenne State: Wyoming Zip: 82003 Area Code 307 Telephone: 634-2300 Warrant For: Ducommun Business Trust Permit No.: M-1985-029 County of Operation: Park County Gentlemen: We hereby issue and establish our irrevocable letter of credit, the amount of which is available by beneficiary's draft or drafts drawn upon us, which shall be paid at sight, when accompanied by the following document: A written statement of the Director ("the Director") of the Division of Minerals and Geology of the State of Colorado ("the Division") certifying that he is a duly authorized official acting on behalf of the State of Colorado and that the amount of the accompanying sight draft is due and payable to the State of Colorado pursuant to applicable provisions of Colorado statutes governing mined land reclamation and that Ducommun Business Trust or its successor has neglected, failed or refused to pay such amount although requested to do so by the Director. Each sight draft so drawn and presented shall be honored by us if presented prior to the close of business on the expiration date of this letter of credit. This credit refers to Ducommun Business Trust application for a permit to engage in mining and reclamation activities within the State of Colorado. It is an express condition of this letter of credit that it shall be automatically extended for successive additional periods of one year each, form the initial and each future expiration date unless American National Bank ("the Bank") shall notify the Di st 90 days prior to an expiration date in writing by registered mail, the above address, that the Bank elects not to extend the credit for such additional period. In such event, in addition to his power to draw hereon under the preceding paragraphs the Director may draw the full or any lesser amount hereof at any time prior to such expiration date by sight