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STATE OF COLORADO <br />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 />March 5, 2008 i? <br /> <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />J. Scott Hazlett • Executive Director <br />Capital Gold Corporation v Ronald W. Cattany <br />Division Director <br />76 Beaver Street Natural Resource Trustee <br />14th Floor <br />New York, NY 10005 <br />Re: Hopemore Shaft, Permit No. M-1990-057, Succession of Operators Approval, Revision No. SO-1 <br />Dear Mr. Hazlitt: <br />On March 4, 2008, the Division of Reclamation, Mining and Safety approved the succession of operators from Leadville <br />Mining & Milling Corp to Capital Gold Corporation for this operation. Capital Gold Corporation is now the permitted <br />operator of the Hopemore Shaft, and as such, is responsible for all provisions in M-1990-057, as well as those specified <br />in the Rules and Regulations. Leadville Mining & Milling Corp is relieved of all responsibilities concerning this <br />operation. <br />Please Note: <br />1. All of the application materials, as amended and supplemented, are in integral part of your permit. They have <br />been incorporated into the permit by reference. We presume that you have a copy of all of these materials, therefore, <br />none have been enclosed with this mailing. We suggest that you keep a copy of the permit and the permit application at <br />the mining operation as a reference for operation personnel, to help ensure compliance with the terms of the permit. <br />2. Changes in the mining and reclamation operations that differ from those described in the permit may require a <br />modification to the permit. We suggest consulting the Rules and Regulations and/or contacting us to determine if a <br />modification to the permit is necessary. Rule 1.10 pertains to Amendments, Rule 1.9 to Technical Revisions, and Rule <br />1.11 to Conversions. <br />3. On your permit anniversary date each year, you must submit an annual fee and annual report to us. Please <br />consult the Rules, Act, and your permit for specific requirements. <br />The transfer of this permit does not result in the transfer of any other permits or licenses, with this Division, the State, <br />or Federal Agency, which might be associated with this operation. <br />If you have any questions, contact me. <br />Sincerely, <br />t aim <br />Erica S. Crosby <br />Environmental Protection Specialist <br />Office of <br />Office of Active and Inactive Mines <br />Mined Land Reclamation Denver Grand Junction Durango