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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />December 1, 2010 Bill Ritter, Jr. <br /> Governor <br />Flag Resources Inc Mike King <br />1412 CR 311 Executive Director <br />New Castle, CO 81641 Loretta E. Pineda <br /> Director <br />FINAL NOTICE <br />Please be advised that according to records of the Division of Reclamation, Mining and Safety (the "Division") the <br />annual fee and report listed below is past due. <br />The Division must receive all fees due accompanied by an adequate report no later than 5 p.m. on December <br />31, 2010, or a Notice of Violation, Cease and Desist Order from ALL mining related activities, Civil Penalties <br />equal to the amount of the annual fee due, and a Notice of Formal Public Hearing before the Mined Land <br />Reclamation Board for consideration of POSSIBLE PERMIT REVOCATION AND FINANCIAL WARRANTY <br />FORFEITURE will be issued for this account. <br />Please be aware that no permits for new mining operations shall be granted to any operator who is <br />currently found to be in violation in this state (C.R.S. 34-32-120 or C.R.S. 34-32.5-120). The Annual Report <br />and Fee requirement is not met until we have received the following components: fee, report, and associated mad <br />If no new disturbances or reclamation have occurred durina the Drevious vear and no new chances to the previous <br />vear's man are necessarv, then no new man is reauired, Drovided that the Operator shall state this in the Annual <br />Report. <br />Division records indicate $791.00 is due. <br />Permit No.: M-1981-202-SG <br />Operation Name: Silt Pit <br />Anniversary Date: November 27, 2010 <br />Total: $791.00 (Due on or before) <br />If your records indicate different facts than those stated above please inform the Division no later than December <br />31, 2010. If you receive this notice and you have mailed your payment and report to the Division, please disregard <br />this notice. The Division appreciates your prompt attention in this matter. <br />Any questions concerning your annual report or fees, may be directed to Mary Rodriguez at (3 03) 866-3567 ext. <br />8138. <br />Make checks payable to the Division of Reclamation, Mining and Safety. <br />M:\Q fiQRI5finfee\Letter2 Nov-2010-M\N4-1981-202-SG_F8.doc Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines