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9. HARDROCK RULE 3: RECLAMATION PERFORMANCE STANDARDS. In <br />accordance with Rule 3.1.5(5), please indicate how waste rock extracted from the mine <br />will be handled and disposed of to protect the drainage system from pollution. <br />Waste rock will be placed in a stockpile north of the adit on the existing historical dumps. <br />The toe of the waste stockpiled will be a minimum of 50 feet from Mosquito Creek, and a <br />roughly one foot deep trench will be excavated surrounding the waste pile area to capture <br />any surface water runoff. <br />10. FINANCIAL WARRANTY. Hardrock Rule 4.2.1(6) specifics that the Prospector must <br />provide Financial Warranty in the amount of $2,000 per acre of the land to be disturbed, <br />or such other amount as determined by the Office. For this project, the Office has <br />determined that the Financial Warranty shall be $2,000 per acre, for a total of $1 0,000. <br />This amount must be provided and approved before authorization to commence <br />prospecting will be granted. <br />A check for the financial warranty is attached. <br />CC: Ben Miller, Alma Placer Company <br />Clayton Brown, Alma Placer Company <br />Craig Camozzi, Alma Placer Company <br />Sincerely, <br />Ben Langenfeld, Project Engineer <br />