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January 28, 2013 <br />Colorado Division of Reclamation, Mining and Safety <br />Mr. Michael A. Cunningham <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Notice of Intent No. P- 2010 -018 AGC Resources Front Range Gold Project <br />Dear Mr. Cunningham, <br />Gold Hill Mines, Inc. <br />P.O. Box 1523 <br />Longmont, Colorado 80502 <br />This letter is Gold Hill Mines, Inc.'s response to your Inspection Report for the NOI held <br />by AGC Resources to conduct exploration drilling at three sites on two patented mining claims <br />that are part of the Cash Mine Project. Accompanying this letter are the annual fees for 2011 and <br />2012 and a completed Annual Report Form for 2012 for this NOI. <br />According to the Mineral Prospecting Drill Hole Permanent Abandonment Final Reports <br />filed by AGC Resources, a total of 10 holes were drilled on the Freiburg and Procunier patented <br />lode claims. Two holes were drilled on the Procunier Lode at the end of a historic access road <br />(site one); five holes were drilled on the Freiburg Lode in the middle of another historic access <br />road (site two); and three holes were drilled at the eastern end of the Freiburg Lode where a drill <br />pad was constructed (site three). The drilling at site one and site two did not result in any serious <br />surface disturbances, because they were located in previously constructed historic roadways. <br />Both of the drilling mud pits associated with these seven drill holes were backfilled and covered <br />with decomposed granite by AGC Resources before they moved off of these two sites. There is <br />practically no evidence that any drilling took place at these two sites. <br />All of the drilling was performed by the Murray Watts Drilling Company, and he has <br />provided me with a summary of the cementation record for all of the holes that were drilled <br />under this NOI. His summary shows that all of the drill holes were cemented from the contact of <br />the overburden with the bedrock for a depth of between 13 and 20 feet. In addition, Murray <br />Watts provided a letter dated September 28, 2012 to clarify how he plugged each of the ten holes <br />that his company drilled for AGC Resources. His summary and letter conforms to the Permanent <br />Abandonment Final Reports submitted by AGC Resources before they permanently abandoned <br />the project. I am submitting all of this information to the Division of Reclamation, Mining and <br />Safety along with the Final Report for this NOI. <br />As you observed on December 4, 2012 during your inspection of the AGC Resources <br />drill site three located at the northeastern end of the Freiburg Lode, the following reclamation <br />RECEIVED <br />work has been completed by Gold Hill Mines, Inc.: <br />JAN 2 8 2013 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />