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Sincerely, <br />Harold E. Luzar Jr. <br />12 -16 -11 <br />Harold E. Luzar Jr. <br />3 319 E 4th AV. <br />Durango, Co. 81301 <br />Ref. Mine Dev. Inc. permit # M -81 -165 (year 201 1) <br />DEC2 °LJ11 <br />2011 <br />A-0) km", a (2-T <br />Let this letter stand as our work report for the above mentioned year. During this <br />year there was no surface disturbance nor mining or milling activity on the permitted <br />property. The mine has been idle for aprox. 3 years. We hope to resume operation <br />next year (2012). <br />If you have any questions please call me at 970 - 799 -4041 or E -Mail me at <br />shiyashti @yahoo.com. Thank you. <br />