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of cCOLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />yMINERALS PROGRAM INSPECTION REPORT?I <br />PHONE: (303) 866-3567 JUN ?011 <br />1876JUN 1 5 <br />jamation, <br />©ivislRn of Rd SafztY <br />The Division of Reclamation, Mining and Safety has conducted an inspection of to Wflfi hg operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />CME Mineral Prospecting Project P-2011-002 Silver, old, lead an Mineral <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Mineral Prospect Inspection Bob Oswald May 19, 2011 17:30 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Colorado Mining Enterprises, LLC None MP - Mineral Prospecting <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Preo eration Inspection None BT.Bond amount <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA U.S.Forest Service None <br />WEATHER: INSPECTO 'S SIG TURE: SIGNATURE DATE: <br />Clear <br />12 i 4/14t <br /> <br />June 10, 2011 <br />L,1oVV? <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic-forming, as identified in the permit. <br />(AR) RECORDS------------------------------ Y (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS--------------- Y <br />HYDROLOGIC BALANCE------------- NA (BG) BACKFILL & GRADING---------- NA (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- NA (TS) TOPSOIL-------------- NA <br />GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE-------------- NA (RV) REVEGETATION---- NA <br />SIGNS AND MARKERS--------------- NA (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- NA <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- NA (RS) RECL PLAN/COMP-- NA <br />T) ACID OR TOXIC MATERIALS------- NA (OD) OFF-SITE DAMAGE--------------NA (ST) STIPULATIONS------- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation <br />Page 1 of 5