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Webster Sand & Gravel <br />145 S. Toledo <br />Leadville, CO 80461 <br />(719) 486-0427 (phone & fax) <br />Division Of Reclamation Mining and Safety <br />1313 Sherman St., Room215 <br />Denver, Colorado 80203 <br />April 17, 2011 <br />Re: Annual Report and Filing Fee <br />Dear Ladies and/or Gentlemen, <br />I am enclosing the 2010 yearly report and filing fee. I've also enclosed a map showing current <br />mining activity. This past year we have been affected by the slowdown in the economy and have <br />reduced our manpower and the amount of sand and gravel we normally mine. We are continuing <br />to mine southward from our previous position. Approximately eighty percent of our total <br />product sold each year is masonry sand. We process the top four to six feet of gravel for road <br />base and aggregate and underneath that is our main product of sand. We did not sale any fill dirt <br />or top soil in 2010 as we are saving this for future reclamation. No reclamation has occurred as <br />there are many years of product to be mined. <br />We are continuing to clean up our pit as there had accumulated lots of scrap items since my <br />grandfather started mining here in 1947. In 2009 we removed a total of 125 tons of scrap. <br />In 2010 we took several more loads of scrap to Denver. <br />In last year's report I stated that we had a water augmentation plan, case no. 89 CW 21. We have <br />stock in the Twin Lakes Reservoir & Canal Company (certificate no. 8076). <br />Our mining activity is seasonal due to the weather at over 10,000 feet elevation. We usually start <br />mining by the latter part of May and cease activity around the first part of November. We haul <br />out of our stockpiles during the winter. <br />We are operating as Webster Sand & Gravel, LLC and our FEIN is 26-3001947. We have three <br />trusts which are the owning members of the LLC. This last year, we completed changing the <br />name on the financial warranty CD from the third party of the Charles J. Webster Estate to <br />Webster Sand & Gravel, LLC. American National Bank of Eagle issued the CD. <br />If you have any questions, please call. Also, the name of our operations manager in Leadville is <br />Chris Roeder. He will be the contact for inspections. His cell number is (719) 486-4584. Thank <br />you for all of your help. <br />Sincerely, <br />?Daryl R. Webster <br />General Manager <br />P.O. Box 1834 <br />Colleyville, TX 76034 <br />(817) 571-1300 (Leadville number forwarded to this number)