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11 <br />April 22, 2011 <br />Division Reclamation Mining and Safety <br />Attn: Mr. Berhan Keffelew <br />1313 Sherman St, Room 215 <br />Denver, Colorado 80203 <br />BLACK RANGE <br />MINERALS <br />Re: P-2009-025 Variation of Hole Abandonment <br />Installation of Vibrating Wire Piezometers <br />Dear Berhan, <br />As per our discussion on the telephone yesterday Black Range Minerals Colorado (BRMC) is <br />planning on conducting some hydrologic testing at the Hansen Deposit within P-2009-025. <br />We have engaged the services of Whetstone Associates to assist in designing and <br />implementing the hydrogeological program. I would like to request a variance in the hole <br />abandonment procedure for not more than ten (10) holes within P-2009-025 and these will <br />be logged in detail and reported as required in the abandonment report. BRMC has <br />developed a plan whereby it will grout into place a series of vibrating wire piezometers <br />(VWP's) within various drill holes. The grouting procedure is described in full in the attached <br />memo, but in short the VWPs are lowered into the hole and the entire hole is backfilled with a <br />cement-bentonite mix permanently encapsulating the VWPs in the hole. BRMC believes the <br />procedure described for the installation of these VWP's within grout fully satisfies 5.4.2 of the <br />Hard Rock, Metal and Designated Mining Rules of September 2010 for "Permanent <br />Abandonment of Prospecting Drill Holes". BRMC has been in consultation with the Division <br />of Water Resources (DWR) and has been advised by Rick Nielsen that the DWR does not <br />consider the installation of the VWP's to be monitoring wells. The DWR does not require <br />them to be permitted and will defer the regulation of abandonment to the DRMS. BRMC <br />believes that this is an acceptable variation in the hole abandonment procedure and remains <br />in compliance with all the required DRMS regulations. <br />Yours sincerely, <br />VAk-, <br />Ben Vallerine <br />Exploration Manager- USA <br />Cc: Tony Waldron <br />110 N. Rubey Drive Suite 201, Golden Colorado, 80403 <br />PO Box 18041, Golden Colorado, 80402 <br />Ph: (303) 279 4946 Fax: (303) 279 4934 <br />www.blackrangeminerals.com