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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 />June 21, 2012 NON CONFIDENTIAL <br />Mr. Miguel Hamarat <br />Chief Environmental Engineer <br />Climax Molybdenum <br />1746 County Road 202 <br />P.O. Box 68 <br />Empire, Colorado 80438 <br />RE: Climax Molybdenum; Red Mountain Exploration Drilling; File No. P- 2011 -014 <br />Modification (MD -01), Notice of Intent to Conduct Prospecting Approval Letter <br />The Division of Reclamation Mining and Safety received your Notice of Intent to Conduct <br />Prospecting Operations (N01) modification (MD -01) application on April 25, 2012. Your notice <br />was reviewed by our office and approved on June 8, 2012. The financial warranty for this site <br />was determined to be $37,000.00. The financial warranty was submitted on the appropriate <br />financial warranty form and accepted by the Division on June 20, 2012. <br />Final approval for this Notice of Intent to Conduct Prospecting modification is hereby granted <br />and you may commence operations. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 must be <br />submitted on your notice approval anniversary date for each year following the filing of an NOI <br />until reclamation responsibility release is granted. In addition, Rule 5.3.4 requires the <br />prospector to notify the Division of completion of prospecting operations and Rule 5.7 requires <br />the submittal of a final report for drill holes within 60 days of completion of the abandonment <br />for artesian flow holes and within one year of completion of the abandonment for any other <br />drill holes. (The form is available on DRMS website at http: / /mining.state.co.us /) <br />If you have any questions, please contact me at 303 - 866 -3567 Ext. 8124. <br />Peter S. Hays <br />Environmental Protection Specialist <br />Cc: Tom Kaldenbach; DRMS <br />Office of Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />