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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 />November 2, 2011 <br />Michael Quinlan <br />Gault Group, LLC <br />36 West Main Street <br />Cortez, Colorado 81321 <br />STATE OF COLORADO <br />RECEMM <br />NOV U4ZU11 <br />Division of Reclamation, <br />ming and Safety <br />Re: Tomichi Creek Exploration Project, Notice of Intent No. P- 2011 -018, Complete Notice and <br />Approval. <br />Dear Mr. Quinlan, <br />The Division of Reclamation, Mining, and Safety has completed the review of the above referenced <br />Notice of Intent (N01). The chronology of review is as follows: <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 />• The Division began the review process of the above referenced Notice of Intent (NOI) and sent <br />notice of deficiencies on July 20, 2011 with a decision date of September 19, 2011. <br />• On September 15, 2011 Tomichi Creek requested a 60 day extension of the review period from <br />September 20, 2011 to November 21, 2011. <br />• On September 30, 2011 the Division received Tomichi Resources adequacy responses to the <br />outstand deficiencies previously noted. <br />• On October 4, 2011 the Division calculated the reclamation liability at $41,000.00. The estimate <br />was forwarded to the US Forest Service for concurrence per a Memo of Understanding. <br />• On October 27, 2011 the Division received concurrence documentation from the US Forest <br />Service. <br />• On November 1, 2011 the Division received additional bonding of $16,259.43. This amount, <br />with the previously submitted $24,740.57, equals the $41,000.00 estimate agreed upon by the <br />Division and US Forest Service. <br />The Division notes that the Notice now meets the requirements of the Act and Rules. All deficiencies <br />have been clarified or corrected. Therefore, the Division is pleased to inform Tomichi Resources that the <br />Notice is considered complete and approved. As a reminder Tomichi Resources has committed to <br />complete reclamation of one drill pad and holes prior to moving to the next. Failure to abide by that <br />commitment may result in additional bonding requirements for the entire project. Please note that <br />Tomichi Resources must have all other applicable local, state, and federal authorizations in place prior to <br />any disturbances. <br />Office of Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />