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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-1984-094 <br />INSPECTION DATE: 22 September 2010 INSPECTOR'S INITIALS: DB2 <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land <br />Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />DATE <br />CORRECTION <br />A. Problem: The sign at the mine entrance, as required by Rule 3.2.1(1) is illegible. 04/04 / 11 <br />PB or PV: PB <br />TOPIC(S): SM <br />Corrective Action: Within 90 days from the date of mailing of this inspection report, refurbish the <br />sign so that it is legible and submit proof to the Division of the completion of this Corrective Action <br />in the form of a photograph. <br />11 <br />2. Problem: Refuse at the site has not been disposed of in accordance with the approved Mining 10/04/11 <br />Plan and in a manner that controls unsightliness in accordance with $34-32.5-116(4)(e) C.R.S. <br />PB or PV: _PB_ <br />TOPIC(S): MP <br />Corrective Action: Within nine months of the date of this report, remove from the permit area any RS _ <br />equipment, structures, refuse, and other debris that is not directly related to the extraction of <br />construction materials or minerals. Alternatively, submit an Amendment to the permit with a <br />proposal to change the post-mining land use to Industrial Commercial, including revised mining <br />and reclamation plans that are consistent with the proposed current usage and post-mining land <br />use. If the Amendment option is chose, it will be due to the Division by 4 October 2011. <br />""3. Problem: The financial warranty is not at a level that reflects the actual cost to reclaim the site. /1BEY <br />PB or PV: <br />TOPIC(S): _FW <br />Corrective Action: To bring the operation into compliance with §34-32-117(4)(b)(I) C.R.S. and <br />Rule 4.2.1(1), the operator must provide additional financial warranty sufficient to bring the total up <br />to $209,000. Official notification of the increase will be sent under separate cover, and the <br />operator will have 120 days from the date of that letter to provide the additional amount. <br />Alternatively, the operator may change the post-mining land use through an Amendment as <br />discussed in item 2 above.