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a <br />00 <br />BLACK RANGE <br />MINERALS <br />April 22, 2011 <br />Division Water Resources <br />Attn: Mr. Rick Nielsen <br />Rick. N ielsenna.state. co. us <br />1313 Sherman St, Room 818 <br />Denver, Colorado 80203 <br />Re: Installation of Vibrating Wire Piezometers <br />and Permanent Hole Abandonment <br />Dear Rick, <br />On April 15, 2011, Susan Wyman of Whetstone Associates spoke with you on the phone to <br />discuss Black Range Minerals Colorado's (BRMC) upcoming drilling and hydrologic testing <br />program. BRMC is planning an exploratory core drilling program in Fremont County, <br />Colorado and has obtained all the required Federal, State and County permits for the <br />"Prospecting Operation". BRMC is planning to conduct a hydrogeological investigation as <br />part of the prospecting. As part of our hydrogeological investigation, we intend grouting into <br />place a series of vibrating wire piezometers (VWPs). I have attached a detailed description <br />of the method of installation for your review but in short the VWPs are lowered into the hole <br />and the entire hole is backfilled with a cement-bentonite mix permanently encapsulating the <br />VWPs in the hole. The entire hole is grouted and permanently abandoned in compliance <br />with 5.4.2 of the Hard Rock, Metal and Designated Mining Rules of September 2010 for <br />"Permanent Abandonment of Prospecting Drill Holes". <br />After discussions with staff at the Division of Water Resources (DWR) and Division of Mining, <br />Reclamation and Safety (DRMS), it was agreed that BRMC would not be required to obtain <br />well permits for the exploration test holes through DWR and that DRMS would be <br />responsible for the regulation of the prospecting holes containing the VWPs. BRMC would <br />like to advise the DWR that it will not be filing any additional further information on the <br />construction of the VWP nests or hole abandonment as BRMC will be working with the <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