2013-05-14_PERMIT FILE - M2013028

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Kazel Mtn. Mines Corp. P.O. Box 1469 Idaho Springs, CO 80452 Reclamation bid for the Combination Placer claim on Pennsylvania Mountain near Fairplay, Park County, CO We understand that the permitted site is about 10 acres of which the water pond covers 3 acres and the mine pit area will be approximately 3 acres. The existing roads are not included in this bid. This bid is for the summer of 2013, costs after that date would have to be evaluated due to inflation, fuel and labor costs and changed regulations. The project would include using original mine reject material to backfill the pit area, then to cut any remaining banks down to a 3 to 1 slope. Mine saved topsoil or site generated organic loam would then be spread over the area and erosion control ditches constructed. The appropriate seed mix would then be hand - spread over the site at a rate of 401bs per acre. We have been told that the disturbed area would not exceed 6 areas and that mine reject material would be used for pit backfill or stacked near the pit so that it could be easily pushed in. The following costs do not include crew per diem and equipment mobilization and site closure. These costs cannot be determined until a site inspection determines the size of the project and necessary equipment. Until a site inspection is made, which of the following charges will be necessary cannot be determined. If the project goes as had been explained to me, my estimate for the reclamation would be in the $13,000 range. Respectfully submitted this 18th day of April, 2013 by William G. Kazel, President, KMM Corp. Unit cost Engineering $100/hour Excavation $130 /yd Blading/dozer $125/hour Dump truck $100/hour Silt fence $2 /foot Seed mix $412.50/50 lb sack Hand seeding $850 /acre Mulch blanket $2,900 /acre Backfilling $5 /yd Low boy semi $150/hour Respectfully submitted this 18th day of April, 2013 by William G. Kazel, President, KMM Corp.