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Webster Sand & Gravel, LLC <br />145 S. Toledo <br />Leadville, CO 80461 <br />(719) 486 -0427 (phone & fax) <br />Division Of Reclamation Mining and Safety <br />1313 Sherman St., Room215 <br />Denver, Colorado 80203 <br />April 20, 2013 <br />Re: Annual Report and Filing Fee <br />Dear Ladies and/or Gentlemen, <br />I am enclosing the 2012 yearly report and filing fee. I've also enclosed a map showing current <br />mining activity. This past year we continued to have been affected by the slowdown in the <br />economy and maintain our reduced manpower and the amount of sand and gravel we normally <br />mine. We are continuing to mine southward from our previous position. Approximately eighty <br />percent of our total product sold each year is masonry sand. We process the top four to six feet <br />of gravel for road base and aggregate and underneath that is our main product of sand. In 2012, <br />as in 2011, we have only opened up a half acre or less for new mining; mainly in an area with <br />many beetle kill trees. We are continuing to save the required amount of topsoil for future <br />reclamation. No reclamation has occurred as there are many years of product to be mined. <br />We are continuing to clean up our pit as there had accumulated lots of scrap items since my <br />grandfather started mining here in 1947. In 2009 we removed a total of 125 tons of scrap. <br />In 2010 and 2011 we took several more loads of scrap to Denver. Last year, I believe we took a <br />load of scrap iron to Denver; however, we are almost out of scrap to clean up. <br />As stated in past year's reports, we have a water augmentation plan, case no. 89 CW 21. We <br />have stock in the Twin Lakes Reservoir & Canal Company (certificate no. 8076). <br />Our mining activity is seasonal due to the weather at over 10,000 feet elevation. We usually start <br />mining by the latter part of May and cease activity around the later part of October. We haul out <br />of our stockpiles during the winter. We do not qualify as IS or TC status by definition of active <br />mining as we still maintain transportation operations as well as stockpile removal year round. <br />We are operating as Webster Sand & Gravel, LLC and our FEIN is 26- 3001947. We have three <br />trusts which are the owning members of the LLC. We continue to maintain our financial <br />warranty CD with American National Bank of Eagle. <br />Also, the name of our operations manager in Leadville is Chris Roeder. He will be the contact <br />for inspections. His cell number is (719) 486 -4584. Thank you for all of your help. <br />Sincerely, <br />aryl R. Webster <br />General Manager <br />P.O. Box 1834 <br />Colleyville, TX 76034 <br />(817) 571 -1300 (Leadville number forwarded to this number) <br />