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1110812010 12:00 7197833039 CSM PAGE 02106 <br />KAGAN & SON, LLC. <br />555 Ernest Avenue <br />Westeliffe, CO 81252 <br />(719) 783-9636 FAX (719) 783-3039 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMA.N 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 /> <br />Gentlemen: <br />KAGAN & SON, LLC <br />M-1979-1.92 <br />SPOTTED BURRO PIT <br />14-Oct-10 <br />$791.00 <br />FREMONT <br />Attached is a check in the amount of $791.00 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 a.pproximate)y 112 acre therefore <br />the disturbed area is now approximately 10.57 acres and the mining will, go to deeper 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 />L.1 Development, Inc.