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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />O <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />08 November 2010 <br />Mr. Daren Palizzi <br />Jones Fine Sand Co <br />5400 Forest Street <br />Commerce City, CO 80022 <br />I/ <br />COLORADO <br />D I V1 S I ON OF <br />RECLAMATION <br />MINING <br />- SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Sand Creek Mine, Permit No: M-1992-038, Financial Warranty Increase, Revision SI-1 _ <br />Dear Mr. Palizzi: <br />As a result of the inspection conducted on 22 October 2010 and a recalculation of the Financial Warranty, the <br />Division of Reclamation, Mining & Safety (Division) has increased the Financial Warranty for the Sand Creek <br />Mine to $7,210 in accordance with Rule 4.2.1 of the Mineral Rules and Regulations of the Colorado Mined <br />Land Reclamation Board for the Extraction of Construction Materials. This is an increase of $2,710 over the <br />existing Financial Warranty of $4,500. <br />The amendment of the current Financial Warranty, or submittal of a new Financial Warranty reflecting the <br />increase, must be submitted to the Division within 60 days from the date of this letter, which will be 07 January <br />2011. If you wish to submit a different type of Financial Warranty, please contact either Alysha Hernandez at <br />303-866-3567 x8125 or Mary Rodriguez at 303-866-3567 x8138 to obtain the applicable form. <br />If you have any questions, you may call me at (303) 866-3567 x8108. Questions pertaining to the financial <br />warranty should be directed to either Ms. Hernandez or Ms. Rodriguez. <br />Sincerely, <br />a?0,4/ <br />David Bird <br />Reclamation Specialist <br />cc: Tony Waldron - DRMS <br />Alysha Hernandez - DRMS <br />Certified Mail Receipt: 7008 3230 0002 7253 3948 <br />Office of <br />Minard I and Rarlamatinn <br />Denver • Grand lunction • Duraneo <br />Office of <br />Active and Inactive Mines