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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 />May 21, 2012 <br />Mark Steen <br />Gold Hill Mines, Inc. <br />957 Reynolds Farm Lane <br />Longmont, CO 80503 <br />Re: Gold Hill Mill, Permit No. M- 1994 -117, Transfer of Permit and Succession of Operator <br />Approval and Request for Financial and Performance Warranties, SO -5 <br />Dear Mr. Steen <br />On May 21, 2012, the Division of Reclamation, Mining and Safety completed the review of your application <br />for a Transfer of Permit and Succession of Operator application submitted to the Division on March 30, <br />2012. On your application form you initialed Option A, which specifies that the Division would recalculate <br />the required bond prior to approval of the transfer. The estimated liability of the reclamation bond has been <br />calculated to be $56,200. This is an increase of $8,957 over the $47,243 amount currently held by the <br />Division. Please submit a financial warranty in the amount of $8,957 within 60 days. The transfer of <br />Permit No. M- 1994 -117 will not be final until the bond is approved by the Division. You will be <br />contacted once the warranties have been review and approved. <br />If you have any questions, please contact me at (303)866 -3567 x8116 or Barbara Coria, Minerals Financial <br />Assurance Specialist, at (303)866 -3567 x8148. <br />Sincerely, <br />Michael A. Cunning am <br />Environmental Protection Specialist <br />Enclosure: Bond Calculation <br />CC: Tom Kaldenbach, DRMS <br />Barbara Coria, DRMS <br />Stephanie Carter, BLM <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />