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• '_ DUFFORD & BROWN, P. C. <br />ATTORNEYS AT LAW <br />April 25, 2006 <br />AA ~~ ,aO~~0~0~ <br />OTC` <25 <br />~JSroO~~~~~ <br />Q~y`o~ <br /> <br />~ Nancy Agro, E <br />McDaniel aty, Miller, Agro, <br />& R ins, L.L.C.- . , . _ - ..- . _ . -- -- <br />10 ain Avenue <br />ango, CO 81301 <br /> <br />~ ~'~! <br />1700 BROADWAY <br />smrE 2100 <br />DENVER, COLORADO 60290-2101 <br />303.861.8013 PHONE <br />303.832.3804 FA% <br />www. duf(ord6rown. ca m <br />emeevesv(a~.du ffordbrowacom <br />st,nnystcfz Mt~~ <br />~IQ~~ '~o ~,n~7~e~- !f <br />Re: Sunnyside Gold Corporation Reclamation Activities on San Juan Corp. Property <br />Dear Ms. Agro: <br />W e represent Sunnyside Gold Corporation and are in receipt of your letter sent directly to our client dated <br />April 6, 2006. While you acknowledge in your letter the importance of our client's reclamation activities <br />with respect to Colorado Division of Minerals and Geology Permit # M-77-378 (the `"Permit"), you claim <br />that our client has no recorded right to enter the property to perform such activities. It is our <br />understanding from your letter that your client wants to use this perceived lack of access as a way to <br />negotiate a new access agreement, wherein my client would agree not to remove certain buildings (since <br />your letter we understand that Mr. Hennis agreed to have the collapsed office building removed) the <br />property. Finally, you ask my client to cease its reclamaton activifies on the property until such new <br />access agreement can be negotiated. <br />Attached for your review is a copy of a Quit Claim Deed from our client to Gold King Mines <br />Corporation, your client's predecessor in interest to the property, recorded December 26, 2002 at <br />Reception No. 142299 in the real property records of San Juan County. Please note at the bottom of the <br />deed where-my clienrreselves a right of access to the property to perform any and all responsibilities that <br />may exist in the Pezmit until such responsibilities are released by the Mined Land Reclamation Board. <br />You will note that your client's foreclosure upon, and subsequent ownership of the property is subject to <br />this reservation. My client therefore does have the recorded right of access to the property, and has no <br />intention of ceasing any of its reclamation activities in violation of its obligations under the Permit. <br />We have discussed the issue regarding the buildings with our client. It is our understanding that our client <br />is perfectly willing to leave the referenced buildings in their current condition, provided that doing so <br />does not violate any of its obligations under the Permit or the Permit is modified for the limited purpose <br />of allowing the buildings to retrain without increasing the reclamation costs. Our client merely wants to <br />complete in 2006 ifs reclamation activities in compliance with its obligations pursuant to the Permit, as it <br />may be modified, to the satisfaction of the Mined Land Reclamation Board, so please advise your client <br />accordingly. <br />(D0322585.1} <br />