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April 22, 2013 <br />Colorado Division of Reclamation, Mining and Safety <br />Mr. Michael A. Cunningham <br />Environmental Protection Specialist <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 8020 <br />Gold Hill Mill, Permit No. M- 1994 -117 <br />Re: Notice of Temporary Cessation <br />Dear Mr. Cunningham, <br />With this letter, Gold Hill Mines, Inc. is giving the Division of Reclamation, Mining and <br />Safety a Notice of the Temporary Cessation of processing and milling operations at the <br />Gold Hill Mill, Permit No. M- 1994 -117, as of April 1, 2013. The reason for the temporary <br />cessation of processing and milling operations at the Gold Hill Mill is the need to locate <br />new partners to fund the processing and milling operations contemplated in our permit <br />and milling plan. Once that funding is in place, Gold Hill Mines will resume operations by <br />processing the stockpiled dump material from the Cash and Freiburg veins. Later, the <br />mill will begin processing ore mined from the Cash and Freiburg veins. Before that work <br />resumes, the company will meet with the Division staff to review all of the requirements <br />for the proper operation of the Gold Hill Mill under this permit. During the period when the <br />mill is in temporary cessation, Gold Hill Mines will continue to take the quarterly water <br />samples required under the permit and maintain the property to prevent storm water <br />runoff from causing excessive erosion. The mill tailings pond will be monitored to insure <br />that adequate freeboard exists at all times during this period of temporary cessation. The <br />mill building will be maintained as necessary to allow for the resumption of milling <br />operations. The Financial Warranty for this permit was adjusted and increased when <br />Gold Hill Mines became the permitted operator last year, so the amount in place should <br />be adequate to cover the reclamation liability for this permit. <br />Very Truly Yours, <br />Mark A. Steen <br />For: Gold Hill Mines, Inc. <br />Gold Hill Mines, Inc. <br />P.O. Box 1523 <br />Longmont, Colorado 80502 <br />(303) 651 -2985 <br />7`C 0 Z <br />RECEIVED <br />APR 2 5 2013 <br />Division of Reclamation, <br />Mining & Safety <br />