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PERMIT #: M- 2013 -043 <br />INSPECTOR'S INITIALS: TCW <br />INSPECTION DATE: July 10, 2013 <br />OBSERVATIONS <br />This inspection occurred to evaluate unpermitted activity at the Richard Cowman and Overlook Claims in <br />Teller County. Present with me during the inspection were Ms. Marcia Rose - Ritchie (USFS) and Mr. Tom <br />Kaldenbach (DRMS). I spoke with Ms. Cowman by phone prior to the inspection and she requested that Mr. <br />Rich Fretterd be present representing the operator during the inspection. The claims are located within the <br />Hayman Burn area on moderate to steep slopes in two areas in the northeast corner of Section 11. The <br />Richard Cowman claim overlaps with Mr. Fretterd's Ace in the Hole claim to some extent. The soil is largely <br />weathered bedrock (grus) with thin topsoil. <br />The largest disturbance on the Richard Cowman claim was a open hole approximately 4x6 feet in area. Several <br />smaller disturbed areas were located along the same trend. A few holes had been filled in an effort to reclaim <br />the area. No current activity has occurred on the Overlook claim. No active erosion was observed in either <br />claim. In general, the claims are in good condition. <br />This inspection was only for the two claims in Teller County. It is our understanding that Ms. Cowman has <br />additional claims in other counties. These claims would need similar permitting if they are being actively <br />prospected or mined as defined by 34 -32- 103(8) and 34 -32- 103(12). <br />Gen. Compliance With Mine Plan: <br />Based on the observations during the inspection, a Notice of Intent to conduct prospecting, or a reclamation <br />permit is required for these claims. If Ms. Cowman wishes to continue to work the sites strictly as prospects <br />(ie, no intention for extracting mineral resources for purposes other than investigating the mineral deposit), <br />then a Notice of Intent (NOI) would be required. If the claims will be developed or minerals will be extracted, <br />then a reclamation permit is required. If no further significant prospecting work will be conducted on these <br />claims, then an NOI is not required. <br />If the appropriate application is filed with the State by August 15, 2013, no further action by the state is <br />warranted. <br />Page 2 of 5 <br />