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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 />September 4, 1,012 <br />KJ <br />V v 0/kaj <br />Robert G desen <br />Colorado Mining and Exploration, LLC <br />502 South Wisconsin Ave. <br />Gunnison, CO 81230 <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. PiMeda <br />Director <br />Re: Crystal Hill _Prpject, N-0I ND- P- 2012 -010, Einancial Warranty Ageept?nre and Approval to_ <br />Commence Prospecting. <br />Dear Mr. Gydesen, <br />On June 29, 2012 the Division found that all technical issues were adequate with your Notice of Intent to <br />Conduct Prospecting on June 29, 2012. The single remaining deficiency was the lack of an adequate <br />bond. As we have informed you previously, the $4,000 bond originally provided with the NOI was not <br />sufficient to perform the reclamation. The Division estimated total reclamation costs to be $14,367, so an <br />additional $10,367 needed to be provided. <br />Last week our Denver office received a One Site Prospecting financial warranty from you in the amount <br />of $14,367, which was then approved. The $4,000 bond originally provided will be returned to you. <br />Therefore, as of the date of this letter, final approval from the Division for your Notice of Intent to <br />Conduct Prospecting at the Crystal Hill Project is hereby granted and you may commence <br />operations at the site. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86 must be submitted each <br />year on the anniversary date of the approval of your notice, until reclamation responsibility release is <br />granted. In addition, Rule 5.3.4 requires the prospector to notify the Division of completion of <br />prospecting operations. <br />If you have any questions, please contact me at the Division's Durango Field Office: 691 CR 233, Room <br />A -2, Durango, CO 81301; telephone 970 - 247 -5193. <br />Sincerely, <br />Bob Oswal <br />Environmental Protection Specialist <br />Ec: Barbara Coria, DRMS Denver <br />Russ Means, DRMS Grand Junction <br />(612 -09 docs \Crystal Hill NOI fw- appr /rco) <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />