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LJ DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719-240-9424 FAX: 719-583-0583 <br />DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />PHONE: 303-866-3567 <br />DATE: November 10, 2010 <br />RE: ANNUAL REPORT PERMIT NUMBER M-1979-158 MOUNTAIN SHADOWS PIT <br />PERMITTEE NAME: COLORADO CITY METROPOLITAN DISTRICT <br />ADDRESS: 4497 BENT BROTHERS BLVD. <br />P.O. BOX 19390 <br />COLORADO CITY, CO 81019 <br />PERMIT NO.: M-1979-158 <br />OPERATION NAME: MOUNTAIN SHADOWS PIT <br />ANNIVERSARY DATE: DECEMBER 20, 2010 <br />ANNUAL FEE DUE: $ 791.00 <br />COUNTY: PUEBLO <br />Gentlemen: <br />This pit has been worked last year. The pit is open for use every business day of the year. The Pit <br />is actively mined and material processed usually once per year to provide materials for <br />deployment in the surrounding area. Materials are stockpiled and used as needed. No new surface <br />disturbance (excavation/mining) took place last year. Next, year's operations will disturb <br />approximately 0.25 to 0.75 acre of surface area to the west if active mining is needed to replenish <br />the product stockpiles. Activity during this report period was limited to loading trucks from the <br />existing stockpiles and delivery to projects. Mining, crushing and screening may resume in the <br />succeeding review periods depending upon demand. <br />The annual fee check for $ 791.00 has been enclosed with this report along with an updated <br />annual report map. This is a long-term pit and it will be in production for the life of the mine. <br />Sincer?l?Q? <br />oe Gagliano <br />Consultant <br />Encl. Annual Fee and Report Request, Annual $ 791.00 Fee Check & Annual Report Map <br />Cc: ccmd, ljdinc