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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />August 10, 2011 <br />C. Stephen Guyer <br />Chief Financial Officer <br />Colorado Goldfields, Inc. <br />7986 South Datura Circle West <br />Littleton, CO 80120 <br />RE: Modification No. 01 (MD -01) Approved, <br />Kittimac Tailings Repository, NOI No. P- 2011 -015. <br />Dear Mr. Guyer: <br />On August 9, 2011, the Division completed its review of MD -01 to the Kittimac Tailings <br />Repository, P- 2011 -015, and approved MD -01. Under MD -01, the Division approved an <br />expansion of the drilling operation to include four additional drill holes, totaling 14 holes. <br />Pursuant to permit conditions, each hole must be fully closed prior to commencement of <br />drilling the next hole. No change to the financial warranty occurred as a result of the plans <br />approved through MD -01. <br />Please contact me at the Division's office in Durango at 691 County Road 233, Suite A -2, <br />Durango, CO 81301, phone (970) 247 -5469, if you have any questions. <br />Mined Land Reclamation <br />Wallace H. Erickson <br />Environmental Protection Specialist <br />ec: John Ferguson, Colorado Goldfields <br />Steve Fearn, Colorado Goldfields <br />Steve Shuey, DRMS GJFO <br />STATE OF COLORADO <br />AUG 16 2011 <br />Division of Reclamation, <br />Mining and Safety <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pifieda <br />Director <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />