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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 24, 2011 <br />John V. Browning <br />Penn Mountain Mining Inc <br />6182 South 2855 E <br />Ogden, UT 84403 <br />Re: Bullger Basin Placer, Permit No. M- 1985 -022, Succession of Operators Approval, Revision No. SO -1 <br />Dear Mr. Browning: <br />On August 24, 2011, the Division of Reclamation, Mining and Safety approved the succession of operators from Penn <br />Mountain Mining Inc to Buffalo Peaks Mining Co., LLC for this operation. Buffalo Peaks Mining Co., LLC is now the <br />permitted operator of the Bullger Basin Placer, and as such, is responsible for all provisions in M- 1985 -022, as well as <br />those specified in the Rules and Regulations. <br />Enclosed is the following bond and the Performance Warranty you originally provided. <br />STATE OF COLORADO <br />Bond Type <br /> $128,641.00 <br />These have been released as of August 24, 2011 Division approval for the succession of operators. You should advise <br />your bank or insurance company of this release by copy of this letter. <br />If you have any questions, please contact me. <br />Sincerely, <br />-4 6 <br />Barbara Coria <br />Financial Assurance Specialist <br />Enclosures <br />CERTIFIED MAIL NO.7009 2820 0003 5701 0325 Return Receipt Requested <br />cc: David Bird, DRMS <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. Pineda <br />Director <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango <br />Active and Inactive Mines <br />