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Azurite, Inc. <br />10001 CR 12 P.O. Box 338 <br />Cotopaxi, Colorado 81223 <br />719-942-4178 <br />June 1, 2011 <br />Lynn and Vicki Holstead <br />POBox 133 <br />Silver Cliff, CO 81252 <br />Dear Holsteads, <br />Seifert Enterprises, LLC, has applied to the State of Colorado for a permit to mine <br />rhyolite rock on a 40 acre site in Section 17, T22N, R72W, north of your residence. <br />Mining regulations require that mine operators contact residents in close proximity to <br />inform them of permit application. If you have questions regarding the proposed mine <br />operation, please contact me by phone at the number above or my cell 719.207.3973. <br />Kent Beach is also available anytime at 719.371.1265. In addition, a copy of the <br />application is on file at the Custer County Clerk and Recorder's office as well as the <br />Town of Silver Cliff offices. <br />Mining regulation also requires mine operator to offer to pay for a resident's pre-blast <br />survey, which would be performed by a third part engineering contractor who would <br />document and archive pre-blast conditions of footers, foundations, and masonry. If you <br />are interested in this type of survey being performed on your residence, please contact me <br />as soon as possible so that we can schedule a survey date. I will follow this letter up with <br />a call or Kent will contact you soon. Thank you for your consideration. <br />Sincerely, <br />Kenneth S. Klco <br />Consulting Geologist <br />Azurite, Inc.