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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 />July 21, 2011 <br />Mark Cape <br />Colorado Mining Enterprises, LLC <br />5967 Harrison Dr., Unit 7 <br />Las Vegas, NV 89120 <br />Dear Mr. Cape, <br />STATE OF COLORADO <br />JUL 2 5 2011 <br />Division of Reclamation <br />Mining and Safety <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Notice of Intent to Conduct Prospecting Operations for CME Project, No. P- 2011 -002, Financial <br />Warranty Acceptance and Approval from DRMS to Commence Prospecting <br />The Division approved your Notice of Intent to Conduct Prospecting on May 5, 2011. Our letter indicated that your <br />notice was approved with the exception of an adequate financial warranty. On July 20, 2011 the Division accepted <br />the One -site Prospecting Check for Deposit in State Treasury, Bond No. 1429, in the amount of $6,377.00, for File <br />No. P- 2011 -002. The reclamation liability amount for this site is $6,377.00. <br />Therefore, final approval from the Division for your Notice of Intent to Conduct Prospecting at the CME <br />Project site is hereby granted and you may commence operations at this site. However, if your operation is <br />located on Federal surface or is accessing Federal minerals, you will also need to obtain a permit from the <br />Federal government prior to commencement of operations. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 per site must be submitted on your <br />notice approval anniversary date for each year following the filing of an NOI until reclamation responsibility release <br />is granted. In addition, Rule 5.3.4 requires the prospector to notify the Division of completion of prospecting <br />operations and Rule 5.7 requires the submittal of a final report for drill holes within 60 days of completion of the <br />abandonment for artesian flow holes and within one years of completion of the abandonment for any other drill holes. <br />(Form enclosed andnalso available on the DRMS website at http : / /www.mining.state.co.us /.) <br />If you have any questions, please contact me at the Durango Field Office: 970 - 247 -5193. <br />Sincerely, <br />Vb <br />Bob Oswald <br />Environmental Protection Specialist <br />Office of <br />Mined Land Reclamation <br />Page 1 <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />