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September 6, 2011 <br />Bob Oswald ✓� <br />-- to Colorado Division of Reclamation Mining and Safety <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />Subject: Abandonment Reports for the Projects in the Egnar Area <br />Dear Bob, <br />Enclosed are eight abandonment reports for eight groupings of holes covering the Egnar region <br />of the Slick Rock District. The holes within the groups were similar geologically and all were <br />reclaimed in a similar manner, thus, we kept them together for the area reports. The holes were <br />drilled between May 2010 and July 2011. The eight abandonment reports cover the drill sites in <br />the table below. <br />Sincerely, <br />Michael G. Leidich P.E. <br />mikeleidich @comcast.net <br />-Lynx -Royal JV LLC <br />813 14 Street Ste. A <br />Golden, CO 80401 <br />(303) 955 -5820 <br />Area <br />Slick Rock LH -2 <br />Fire House East <br />Egnar F1 <br />Egnar HD1 <br />Egnar P1 <br />Egnar K1 <br />Egnar HD2 <br />Egnar PR1 <br />DRMS NOI File No. <br />P- 2009 -031 <br />P- 2009 -032 <br />P- 2009 -036 <br />o h- 2009 -037 <br />P- 2009 -039 <br />P- 2010 -013 <br />P -2010 -012 <br />P- 2010 -022 <br />If you have any questions or concerns please contact me at 303 - 955 - 5820. <br />Bond Amount ($) <br />4,349 <br />4,928 <br />3,556 <br />4,220 <br />3,762 <br />5,028 <br />5,100 <br />7,525 <br />SEP12 <br />Division of Reclamatim <br />119ining & Safety <br />On July 13, 2011 we visited all the 2010 drill sites with Jamie Blair, BLM. Only two hole sites <br />(at the Fire House and HD 1 areas) needed minimal new work to bring them up to his <br />expectations after one year. With the exception of K1, Jamie has requested that all sites be held <br />for an additional year to better establish the vegetation covering the drill sites. K1 is being <br />considered for release due to good vegetation growth and because of a possible scrub oak <br />mowing program over the drill sites. Slick Rock LH -2 and PR1 were drilled in June -July of 2011 <br />and Jamie Blair will be visiting those sites in early September. PR1 is reclaimed and LH -2 is <br />nearly completed. <br />