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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 />September 7, 2011 <br />Michael G. Leidich <br />Lynx -Royal JV LLC <br />813 14 Street, Suite A <br />Golden, CO 80401 <br />Re: Notice of Intent to Conduct Prospecting Operations for Wray Mesa Project, No. P -2011- <br />025, Financial Warranty Acceptance and Approval from DRMS to Commence Prospecting <br />Dear Mr. Leidich, <br />The Division approved your Notice of Intent to Conduct Prospecting on September 7, 2011. Our letter <br />indicated that your notice was approved with the exception of an adequate financial warranty. The <br />Division has accepted the One -site Prospecting Check for Deposit in State Treasury, Bond in <br />the amount of $8,163.00, for File No. P- 2011 -025. The reclamation liability amount for this site is <br />$8,163.00. <br />Therefore, final approval from the Division for your Notice of Intent to Conduct Prospecting at the <br />Wray Mesa Project site is hereby granted and you may commence operations at this site. However, <br />if your operation is located on Federal surface or is accessing Federal minerals, you will also need <br />to obtain a permit from the Federal government prior to commencement of operations. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 per site must be <br />submitted on your notice approval anniversary date for each year following the filing of an NOI until <br />reclamation responsibility release is granted. In addition, Rule 5.3.4 requires the prospector to notify the <br />Division of completion of prospecting operations and Rule 5.7 requires the submittal of a final report for <br />drill holes within 60 days of completion of the abandonment for artesian flow holes and within one years <br />of completion of the abandonment for any other drill holes. (Form enclosed and also available on the <br />DRMS website at http : / /www.mining.state.co.us /.) <br />If you have any questions, please contact me at the Durango Field Office: 970 - 247 -5193. <br />Sincerely, <br />Bob Oswald <br />Environmental Protection Specialist <br />Office of <br />Mined Land Reclamation <br />Page 1 <br />STATE OF COLORADO <br />RECEIVED <br />SEP 12 2011 <br />Pi1'iSi©rI elf. I aelatT►ation, <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pirleda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />