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Date: June 28, 2011 <br />To Whom It May Concern: <br />Joe Gagliano <br />Consultant <br />Cc: BACULITE MESA , �..l.c <br />LJ DEVELOPMENT, INC. <br />256 N. MERRILL DRIVE <br />PUEBLO WEST, CO 81007 <br />PHONE: 719- 240 -9424 FAX: 719 -583 -0768 <br />Annual Report Department. <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: ANNUAL FEE AND REPORT <br />PERMIT NUMBER: M- 1997 -0011 <br />PERM ITTE NAME: BACULITE MESA, LLC <br />OPERATION NAME: BACULITE MESA PIT <br />ANNIVERSARY DATE: JULY 9, 2011 <br />ANNUAL FEE: $ 791.00 <br />COUNTY: PUEBLO <br />To complete the requirements for the Annual report we are submitting a map, which is <br />attached with this annual report letter. The active mining face of the pit has moved <br />southwest since last year and the mining will proceed to the southwest, while reducing <br />the highwall. This is an active pit and mining and reclamation are ongoing concurrently. <br />The new disturbance this year is about 2.40 acres. Next year will disturb approx 0.5 to 1.0 <br />acres. <br />A check in the amount of seven hundred ninety one dollars ($791.00) is enclosed with <br />this letter for the year of 2011 Annual Fee. <br />If you have any questions please call me at 719- 240 -9424 or fax me at 719- 583 -0768. <br />Sincere) <br />