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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 />October 4, 2011 <br />Greg Schifrin <br />Minex Exploration <br />1256 W. Elmira Rd. <br />P.O. Box 2183 <br />Sandpoint, Idaho 83864 <br />RE: Powderhorn Project Exploration Drilling Program, Notice of Intent, No. P- 2011 -024, <br />Completeness and Approval. <br />Dear Mr. Schifrin, <br />The Colorado Division of Reclamation, Mining, and Safety (Division) received your Notice of Intent (NOI) <br />to conduct prospecting operations on July 26, 2011. A review of the Notice application noted <br />deficiencies that were addressed by Minex. On September 19, 2011 the Division calculated a <br />reclamation liability estimate for the project of $8,225.00. The estimate was forwarded to the Bureau of <br />Land Management (BLM) for their review and concurrence. On September 26, 2011 BLM notified the <br />Division of its concurrence. Minex was notified that the last deficiency of the notice was the posting of <br />the financial warranty of $8,225.00. <br />On October 4, 2011 Minex submitted the proper financial warranty to the Denver Division Office. <br />Therefore staff is pleased to inform Minex that the NOI is considered complete and approved. Minex <br />may proceed with the project provided all other approvals have been issued. Please remember that the <br />estimate is based on each hole and pad being reclaimed prior to the drilling of the next and special <br />requirements if groundwater is encountered. <br />If you need additional information please contact me at the Division of Reclamation, Mining and Safety, <br />Grand Junction Field Office, 1015. 3rd St., Suite 301, Grand Junction, Colorado 81501, or by telephone <br />no. 970.241.1117. <br />Sincerely, <br />G. Russell Means <br />Environmental Protection Specialist II <br />Cc: David Lazorchak, BLM Gunnison Field Office <br />Ec: Barbara Coria, Minerals Financial Warranty Specialist, Denver <br />Office of <br />Minced 1 and Rarlamatinn <br />STATE OF COLORADO <br />RECEIVED <br />OCT 1 12011 <br />Division of Reciamation, <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. Pineda <br />Director <br />Office of <br />Denver • Grand (unction • Durango Active and Inactive Mines <br />