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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 />August 31, 2012 <br />Mike Bergman <br />Red Rock Exploration, LLC <br />11086 Golf View Dr. <br />Galena, IL 61036 <br />RE: Sara Rose; DRMS File No. P- 2012 -016; Financial Warranty Acceptance and <br />Approval to Commence Prospecting <br />Dear Mr. Bergmann, <br />On August 7, 2012, the Division of Reclamation, Mining and Safety (Division) applied funds from the <br />One Site Prospecting Financial Warranty Check for Deposit in State Treasury, Bond No. 5155, in the <br />amount of $2,000.00, and on August 31, 2012 applied cash funds in the amount $289.00 for File No. P- <br />2012 -006. The reclamation liability amount for this site is $4,500.00. <br />Therefore, final approval from the Division for your Notice of Intent to Conduct Prospecting (NOI) <br />at the Sara Rose site is hereby granted and you may commence operations at this site pending the <br />appeal period described below. However, if your operation is located on Federal surface or is <br />accessing Federal minerals, you will also need to obtain a permit from the Federal government <br />prior to commencement of operations. Pursuant to Rule 5.1.3(d)(iv), the Division's determination <br />will not take effect until the expiration of the five business days allowed for an appeal, or, in the <br />case of an appeal, until the Mined Land Reclamation Board issues its decision. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 per site must be <br />submitted on your notice approval anniversary date for each year following the filing of an NOI until <br />reclamation responsibility release is granted. In addition, Rule 5.3.4 requires the prospector to notify the <br />Division of completion of prospecting operations and Rule 5.7 requires the submittal of a final report for <br />drill holes within 60 days of completion of the abandonment for artesian flow holes and within one year <br />of completion of the abandonment for any other drill holes. <br />If you have any questions, you may contact me at (303) 866 -3567 x8116. <br />Sincerely, <br />Michael A. Cunnin am <br />Environmental Protection Specialist <br />Cc: Tom Kaldenbach, DRMS <br />Barbara Coria, DRMS <br />Marcia Rose - Ritchie, USFS <br />Rob Bergmann, Big Rock Exploration <br />STATE OF COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <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 />