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Climax Molybdenum <br />A Phelps Dodge Company <br />July 22, 2005 <br />Via Certified Mail <br />Mr. Allen Sorenson <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />COLORADO OPERATIONS <br />Henderson Mine <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569 -3221 <br />Fax (303) 569 -2830 <br />JUL 2 <br />Division of I V ,,, ,,, <br />RE: Condition No. 1 Demonstration, MLRB Board Order of June 13, 2005, Henderson Mine and <br />Mill, Permit No. M -1977 -342 <br />Dear Mr. Sorenson: <br />Attached are three Financial Warranty and Conditional Promissory Notes and proof of recording of deeds -of -trust <br />with the Grand County Clerk and Recorder. These documents are provided pursuant to Condition No. 1 of the <br />Mine Land Reclamation Board Order of June 13, 2005 concerning the use of water rights deeds -of -trust for partial <br />fulfillment of the Henderson Mine and Mill financial assurance. Condition No. 2 of the Order was satisfied with a <br />Certificate of Insurance for the Williams Fork Pump Station and Pipeline that was submitted to your office on July <br />13, 2004. <br />Please contact me at (303) 569 -3221 ext. 1204 if you have any questions. <br />Si rely, -- <br />Bryce Romig <br />Environmental Manager <br />,Climax Molybdenum Company <br />