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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 />May 22, 2013 <br />Bryant Harris <br />Catalix International, LLC <br />1333 Lockhill Selma <br />STATE OF COLORADO <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />San Antonio, TX 78213 <br />Loretta <br />Dire torE. Pineda <br />RE: Precious Mine, NOI DRMS File No. P- 2013 -008 <br />Financial Warranty Acceptance <br />Approval to Commence Prospecting Operations <br />Dear Mr. Harris: <br />The Division approved your Notice of Intent to Conduct Prospecting on May 14, 2013. On May 5, 2013, <br />the Division received and approved your cash bond in the amount of $3,800.00 ( . <br />Final approval for your Notice of Intent to Conduct Prospecting at the Precious Mine is hereby granted <br />and you may commence operations at this site. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 must be submitted on <br />your notice approval anniversary date for each year following the filing of an NOI until reclamation <br />responsibility release is granted. In addition, Rule 5.3.4 requires the prospector to notify the Division of <br />completion of prospecting operations and Rule 5.7 requires the submittal of a final report for drill holes <br />within 60 days of completion of the abandonment for artesian flow holes and within one year of <br />completion of the abandonment for any other drill holes. The Abandonment Final Report Form is <br />enclosed and also available on the DRMS website at www.mining.state.co.us. <br />If you need additional information please contact me at the Division of Reclamation, Mining and Safety, <br />1313 Sherman St., Room 215 Denver, CO 80203, by telephone at 303 - 866 -3567 extension 8131, or by <br />email at tyler.odonnell@state.co.us. <br />Sincerely, <br />Go t <br />•C <br />Tyler O'Donnell <br />Environmental Protection Specialist <br />Cc: Tom Kaldenbach, DRMS <br />Ben Langenfeld, Greg Lewicki & Associates, PLLC (via email) <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines <br />