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SALEM MINERALS INC. <br /> 717 12th Street, Suite H 7 <br /> Golden, Colorado 80401 <br /> Plione/fax(303) 715-064 1 <br /> July 18, 1996 <br /> Sunnyside Gold Corp. Received <br /> P.O. Box 177 <br /> Silverton, CO 81433 <br /> DEC 0 11997 <br /> Attn: Mr. Larry Perino <br /> Durango Field Office <br /> Division of Minerals&Geology <br /> Dear Mr. Perino: <br /> Per our discussion with yourselves regarding the Big America,Holy Cross,and Black Cat <br /> patented lode mining claims in Gladstone owned by Salem Minerals Inc., Salem is desirous of using these <br /> lands for purposes other than mining. We ultimately hope to place several cabins on this group of claims, <br /> with roads,water system and electric service,and have started working towards this end. <br /> The area that Sunnyside Gold used as a borrow pit is part of these plans. The steep bank at the <br /> bottom of this area actually leaves a nice level area for us to park vehicles off Stale Highway 110,and we <br /> hope to use this area as the base for a roadway behind the round-roof cabin to the other existing cabin on <br /> the property. We expressly do not want this level area filled in. We also hope at some point to put back <br /> in place the road to the top of the mill foundation, that the borrow pit obliterated a section of, this road <br /> would connect the existing road segments on the upper sides of the borrow pit. <br /> We understand that Sunnyside Gold has included this area in your mine permit and are <br /> responsible for reclamation. Due to the future planned grading work, we feel that the borrow pit area is <br /> suitably reclaimed and request that you work to have the claims removed from your mine permit area. <br /> Truly Yours, <br /> for Salem Minerals Inc. <br /> Todd C. Henms, Pres. <br />