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May Day Idaho Mine Complex <br />April 12, 2011 <br />David and Erin Linden <br />4348 CR 124 <br />Hesperus, Colorado 81326 <br />Re: Permanent Man-made Structures, Damage Compensation Agreement <br />Between David and Erin Linden; and <br />Wildcat Mining Corporation (May Day Idaho Mine Complex) <br />Dear David and Erin Linden, <br />Wildcat Mining Corporation (WMC) has enclosed a Damage Compensation Agreement for your <br />consideration in the event the May Day Idaho Mine Complex operated by WMC damages your <br />property during the life of the project. The Damage Compensation Agreement is being offered <br />pursuant the Colorado Division of Reclamation Mining and Safety (CDRMS) rule 6.4.20. <br />Pursuant to Rule 6.4.20, the Applicant shall provide information sufficient to demonstrate that <br />the stability of any structures located within 200 feet of the permit boundary will not be <br />adversely affected. If the Office determines that such information is inadequate to demonstrate <br />that the operation will not adversely affect the stability of any significant, valuable and <br />permanent man-made structure, the Applicant shall either: <br />(a) Provide a notarized agreement between the Applicant and the person(s) having an <br />interest in the structure, that the Applicant is to provide compensation for any <br />damage to the structure; or <br />(b) Where such an agreement cannot be reached, the Applicant shall provide an <br />appropriate engineering evaluation that demonstrates that such structure shall not <br />be damaged by activities occurring at the mining operation; or <br />(c) When such structure is a utility, the Applicant may supply a notarized letter, on <br />utility letterhead, from the owner(s) of the utility that the mining and reclamation <br />activities, as proposed, will have "no negative effect" on their utility. <br />Based on recorded information, the permanent man-made structures within 200 feet of WMC <br />operation which could be affected include a boundary fence, a domestic well and a domestic well <br />protective cover. <br />"La Plata County Industry -Making a difference for a "Green" Future" <br />5555 DTC Parkway, Suite A-4000 <br />Greenwood Village, Colorado 80111 <br />Phone: 303-832-7664 Fax: 303-832-7469