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<br /> <br /> <br /> <br /> <br /> <br />August 22, 2025 <br /> <br /> <br />Eric Frei <br />Flag Resources Inc <br />1412 CR 311 <br />New Castle, CO 81647 <br /> <br /> <br />Re: Silt Pit - File No. M-1981-202-SG <br /> Flag Resources Inc <br /> Acreage Release Request (AR-1) <br /> Request for Acreage Reduction <br /> <br />Dear Eric Frei: <br /> <br />On August 22, 2025 the Division of Reclamation, Mining and Safety concluded its review of the <br />Acreage Release Request application submitted to the Division on July 7, 2025, addressing the <br />following: <br /> <br />Request for 46.4 reclaimed acres to be release from the permit area. <br /> <br />The decision reached by the Division is: Approve. The 46.4 acres requested for release have been <br />reclaimed and are suitable for the designated post mine land use of recreation. In accordance with <br />Rule 4.17.2(5), the Division is required to wait thirty (30) days from this notice to allow for appeal of <br />the Division’s decision. Once this period closes, if no appeal is submitted, the Division’s decision <br />will be final. <br /> <br />The permit area was reduced to 124.30 acres, through the release of -46.40 acres in this permit action. <br />Because the permit is not totally released, you are still liable for filing annual reports and fees. Please <br />submit a Technical Revision and update the mining and reclamation plan maps to depict the reduced <br />permit area. <br /> <br /> <br />Bond Held: $337,611.00 <br />Prior Liability: $337,611.00 <br />Change in Liability: $0.00 <br />Revised Liability: $337,611.00 <br />Prior Permit Acreage: 170.70 <br />Change in Permit Acreage: -46.40 <br />Revised Permit Acreage: 124.30