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The Union Milling Company <br />7500 W. Mississippi Ave., A-170 <br />Lakewood, CO 80226-4577 <br />+1.303.947.3499 <br />August 24, 2009 <br />J Mr. Peter Hays <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, CO 80203-2273 <br />Re: Permit M-1990-057, June 18, 2009 Inspection <br />Dear Mr. Hays, <br />Union Milling Company is providing the following responses on behalf of Calais Resources for <br />Items 5 and 6 of the June 18, 2009 inspection of the Leadville Mill and Hopemore Shaft <br />properties, Permit M-1990-057. Your inspection report of June 26, 2009 specified the Item 5 <br />and 6 problems as listed below. <br />• Item 5 - The presence of sulfitic ore in the temporary ore stockpiles could cause this <br />operation to be classified as a Designated Mining Operation as defined in Rule <br />1.1(14). <br />• Item 6 - Canada thistle was observed in several areas within the mill site. <br />Mr. Michael Elder has prepared the response to the above noted problem. The response is <br />attached to this letter as a separate document. Please contact Mr. Elder directly for additional <br />information or clarification to the response. He can be reached at 303-638-2573, <br />meldergunionmilling com, or PO Box 36099, Denver, CO 80236-0099. <br />Sinc , <br />Nick Michael <br />Chief Operating Officer <br />Union Milling Company, LLC <br />Cc: Robert Calder - Hopemore Shaft <br />Tom Hendricks - Calais Resources Colorado, Inc. <br />RECE D <br />AUG 2 5 2009 <br />Division of Reclamation, <br />mining and tY