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TRAPPER MINEI July 23, 2012 Dear Jared: Trapper's response: P.O. Box 187 TRAPPER MINING inc. Mr. Jared Ebert Colorado Division of Reclamation, Mining and Safety 1313 Sherman St., Room 215 Denver, CO 80203 Subject: Trapper Mine (Permit No. C-81 -010) Technical Revision TR-109 2011 Annual Report, Appendix W In response to comments initiated on the May 3rd adequacy review. Craig, Colorado 81626 (970) 824 -4401 RECEIVED JUL 3 0 ?012 Division of Reclamation, Mining and Safety The Colorado Division of Reclamation, Mining and Safety requested additional information concerning a discrepancy in the acreages reported in the annual reclamation report cover form. The division request is as follows: "There is a discrepancy in the acreages reported in the Annual Reclamation Report for the number of acres released from Phase I, II and III bond liability. The Division's records indicate as of 2011 that 3,870 acres have been granted Phase I bond release, 3,573.9 acres Phase II and 2,925.5 acres Phase III. Based on our conversation, the discrepancy appears to be a result of lands that have been re- disturbed that have been granted bond release by the Division. Given this, all the acreages reported should be less than what the Division records currently indicate. This does not appear to be the case for the acreage of the Phase II bond release area. The discrepancy with all of the phased bond release acreages needs to be clarified and the re- disturbed parcels need to be documented and accounted for within the annual report. Please submit documentation indicating which parcels have been re- disturbed to date and the acreage associated with the re- disturbance. For each of these parcels please indicate what phase of bond release these parcels had been previously granted and the nature of the re- disturbance. The Division requests this information be updated and included in the first section of the annual reclamation report every year." A thorough accounting of all parcels and bond release acreages was conducted by Trapper Mine. Several items were found that need to be addressed concerning the total acreages of bond releases through the years.