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Charles R. Ponchak <br />Consulting Geologist <br />15292 6050 Rd <br />Montrose, CO. 81403 <br />Hm 970 - 249 -2081 Wk 970 - 249 -4434 <br />February 15, 2012 <br />State of Colorado <br />Div of Rec Mining & Safety <br />1313 Sherman Street, Rm 215 <br />Denver, CO. 80203 <br />Attn: Russell Means <br />RE: Ruby Trust Mine, Permit No. M1979181 <br />Dear Mr. Means: <br />RECEIVED <br />FEB 21 2C <br />Division of Reclamation, <br />Mining & Safety <br />This letter will serve as a follow up to our telephone <br />conversation of this same date. The Ruby Trust Mine was <br />operated as a producing mine in 2008 and 2009, by Mount <br />Sneffels Mining, LLC. Mount Sneffels was foreclosed upon <br />in 2010 -2011 by David Walker who is the original owner of <br />the mine. David Walker placed the mine and associated <br />properties under Walker Ruby Mining Company. The mine <br />and underground mill had been misused and abused by Mount <br />Sneffels and was left in terrible shape. Mr. Walker hired <br />Harry Castle and myself to clean up the mine and mill and <br />then placed the mine and properties up for sale in the early <br />part of 2011. All existing permits were reviewed and <br />placed in the inactive or standby mode and or intermittent <br />status when the ownership changed. <br />During normal shut down years the mine is available for <br />showing from mid April through mid December (approximately <br />250 days). Winter shut down varies from year to year but <br />is normally from mid December to mid April (approximately <br />120 days). As we discussed today the current Intermittent <br />Status (IS) does seem to be the best category to fit the <br />mine, mill, and property into at this time. <br />Hopefully, by this time next year a new mine owner and <br />operator will begin year round mining and milling operations <br />at the Ruby Trust. Walker Ruby Mining Company will keep <br />the Division od Reclamation, Mining, and Safety current on <br />any ownership or activity changes which may occur. It <br />should be noted that during this time potential buyers will <br />be allowed to do sampling, geology, engineering, mill <br />design and mining feasibility studies. Under certain <br />circumstances limited exploration in the form of diamond <br />drilling (underground) will be allowed by prospective <br />buyers. <br />