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March 12, 2003 <br />Certified Letter: No. 7002 2410 0003 2429 0822 <br />Mr. Allen Sorenson <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street; Room 215 <br />Denver, Colorado 80203 <br />Re: Climax Mine Financial Warranty /SR -03:7 Shaft Information. Permit M -77 -493 <br />Dear Mr. Sorenson: <br />Climax submitted SR -03, a Surety Reduction Request, in November 1999. A component of this <br />request was release of $30,750 for sealing of 7 shaft within the Storke complex area. The <br />September 26, 2000 DMG inspection report and subsequent partial approval letter in April 2002 <br />stated that DMG would not accept closure of the 7 shaft until additional data and information <br />were submitted by Climax. <br />These additional data are attached in a report prepared for Climax by Ellis Environmental <br />Engineering, Inc. dated February 2003. This report, prepared and stamped by a professional <br />engineer, addresses the issues outlined in the referenced inspection report. With this report, <br />Climax requests release of the referenced amount from its total Financial Warranty. <br />Please contact me at 719 - 486 -2150, ext. 723 if you have any questions. <br />CLIMA)Q MOLYBDENUM COMPANY <br />Bryce Romig <br />Environmental Manager <br />A Subsidiary of Phelps Dodge Mining Company <br />RE E1 t/ED <br />A R 2 4 2003 <br />)Li Division of Minerals and Geology <br />Climax Mine <br />Hwy. 91 <br />Climax, Colorado 80429 <br />(719) 486 -2150 <br />Fax (719) 486 -2251 <br />