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State of Colorado <br />Division of Reclamation, Mining and Safety <br />Shipps Farm LLC <br />Pit # M -1978 -102 <br />Annual Mining Permit Report for Shipps Farm LLC <br />Pit # M- 1978 -102 <br />This past year we have removed approximately 10000 cu yards of Pit <br />run from this location and continued to expand on the existing area. The <br />depth is consistent with previous years so no ground water has been <br />exposed. The stockpiles and processing equipment are on the pit floor. <br />This operation is part time as needed. <br />Dates of operation are March through November. <br />Please find map and check for fee inclosed. <br />Sincerely, <br />Jim Cozad — Operator <br />P.O. Box 243 <br />Ault, CO 80610 <br />970 -371 -0490 <br />June 10, 2010 <br />