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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 />KAGAN & SON, LLC. <br />555 Ernest Avenue <br />Westcliffe, CO 81252 <br />(719) 783-9636 <br />KAGAN & SON, LLC <br />M -1 979 -192 <br />SPOTTED BURRO PIT <br />14- Oct -12 <br />$791.00 <br />FREMONT <br />TG� <br />'rrrr tii 2OC2' <br />Division of Reciamation, <br />Mining & Safety <br />Attached is a check in the amount of $791.00 for the annual fee for the preceding year. <br />Mining has been occurring this year and will continue for the foreseeable future. The <br />disturbance area increased the surface disturbance by approximately 1/2 acre therefore <br />the disturbed area is now approximately 11.57 acres and the mining will go to deeper next year. <br />This pit is a long -term resource that will be in production for many years. This is an <br />active pit. Please see map for details. <br />Sincerely, <br />Andrew Kagan <br />Managing Member <br />cc: Fremont County <br />LJ Development, Inc. <br />