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-JA PIONEER <br />SAND COMPANY INC. <br />April 18, 2011 <br />State of Colorado <br />Division of Minerals & Geology <br />Department of Natural Resources <br />1313 Sherman St., Room #215 <br />Denver, CO 80203 <br />RE: Leyden Pit <br />Annual Report M-1983-139 <br />1. Mining and Reclamation Activity - 2010-2011 <br />Mining - Approximately 8.4 acres mined and graded for reclaimation <br />2. Financial Warranty - Financial warranty is in the form of a bond. <br />Reclamation bond was increased and the new bond was accepted by The <br />Division on 3/8/2011. <br />3. Mining Activity- Forecast for 2010 approximately 10 acres <br />4. Mining Plan Map - A new mining plan map is being submitted showing the <br />mining and grading activity during 2010. <br />Sand Coy,- <br />Inc <br />y //j /I//,- <br />Date <br />P.O. Box 7650 • Colorado Springs, Colorado 80933-7650 • (719) 599-8100