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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 29, 2011 <br />Mr. James Williams <br />Silver Star Resources LLC <br />1675 Larimer St., Suite 820 <br />Denver, CO 80202 <br />STATE OF COLORADO <br />RECEVaD <br />DEC X11 2011 <br />ui r<eciarnatioR, <br />Mining and Safety <br />SCANNE) <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Piheda <br />Director <br />Re: Notice of Intent to Conduct Prospecting Operations for Revenue Mine Exploration, No. P- <br />2011 -030, Financial Warranty Acceptance and Approval from DRMS to Commence <br />Prospecting <br />Dear Mr. Williams, <br />The Division has received the technical responses that were required for your Notice of Intent, and on <br />November 18, 2011, the financial warranty was found acceptable. One -Site Prospecting Check for <br />Deposit in State Treasury, Bond No. 1001 in the amount of $3,427.00, and Cash Bond Check for Deposit <br />in State Treasury, Bond No. 196 in the amount of $8,796.00 have been posted toward the estimated total <br />reclamation liability of $12,223.00 for this project. <br />Therefore, effective today, final approval from the Division for your Notice of Intent to Conduct <br />Prospecting at the Revenue Mine Exploration Project site is hereby granted and you may <br />commence operations for the project. <br />Note: The upland drilling part of your NOI may commence. However, please be reminded that due to the <br />existing portal discharge and potential to affect water quality during the underground prospecting <br />activities approved under this NOI, no underground prospecting activity may commence until the initial <br />five quarters of water samples have been received and reviewed by the Division. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 per NOI 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 questions, or for submitting water analyses, I can be reached at the Division's Durango Field <br />Office: 691 CR 233, Room A -2, Durango, CO 81301; telephone 970 - 247 -5193. <br />Cont. <br />Office of <br />Mined Land Reclamation <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />