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January 28, 2013 <br />Colorado Division of Reclamation, Mining and Safety <br />Mr. Michael A. Cunningham <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Minerals Program Inspection Report for the Gold Hill Mill Permit M -1994 -117 <br />Dear Mr. Cunningham, <br />Gold Hill Mines, Inc. <br />P.O. Box 1523 <br />Longmont, Colorado 80502 <br />This letter is Gold Hill Mines, Inc.'s response to your Inspection Report for the Gold Hill <br />Mill dated December 4, 2012. Attached to this letter are copies of the Annual Water Monitoring <br />Reports for the Gold Hill Mill. These are for the two quarters since Gold Hill Mines, Inc. became <br />the permitted operator of the Gold Hill Mill site. <br />Also, I am enclosing a request for a Technical Revision for the two mine workings that <br />were used to improperly dispose of mill tailings by Mount Royale Ventures, LLC. <br />Gold Hill Mines, Inc. will reseed both of these areas with the approved seed mix as soon <br />as the weather permits this activity. <br />The current level of water in the mill tailings pond is well below the freeboard required <br />by the permit during periods of inactivity. <br />Thank you for your assistance in addressing the problems associated with this permit. <br />Very Truly Yours, <br />Mark A. Steen <br />For: Gold Hill Mines, Inc. <br />RECEIVED <br />JAN 2 R 2013 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />