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DIVISION OF RECLAMATION, MINING and SAFETY <br />1313 SHERMAN STREET, ROOM 215 <br />DENVER, COLORADO 80203 <br />DATE: September 18, 2012 <br />RE: ANNUAL REPORT <br />PERMITEE NAME: <br />PERMIT NO: <br />OPERATION NAME: <br />ANNIVERSARY DATE: <br />ANNUAL FEE DUE: <br />COUNTY: <br />Gentlemen: <br />Attached is a check in the amount of $323.00 for the annual fee for the preceding year. <br />Mining has not been occurring this year but will continue for the foreseeable future. The <br />disturbance area has stayed at approximately 3.75 acres and the mining will go to the south <br />next year and will increase approximately 1/2 acres. This pit is a long -term resource that <br />will be in production for many years. This is an active pit. <br />Sincerely, <br />Andrew Kagan <br />Managing Member <br />cc: LJ Development, Inc. <br />KAGAN & SON, LLC. <br />555 Ernest Avenue <br />Westcliffe, CO 81252 <br />(719) 783 -9636 <br />Ic <br />KAGAN & SON, LLC <br />M -1994 -114 <br />KAGAN & SON SOUTH PIT <br />5- Oct -12 <br />$323.00 <br />CUSTER <br />RECeIVen <br />ory 0 1 t it1% <br />Division of Reclamation, <br />Mining & Safety <br />