North American Emerald Mine Renewal Ltr 092711

NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, PG, PE
Director and State Geologist
Certified Mail
Return Receipt Requested
7008 1300 0000 1125 3940
Land Quality Section
Beverly Eaves Perdue, Governor
September 27, 2011 Dee Freeman, Secretary
Mr. James K. Hill, Jr.
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636-9233
RE: North American Emerald Mine
Permit No. 02-06
Alexander County
Yadkin River Basin
Dear Mr. Hill:
The review has been completed on the renewal request your company submitted for the
referenced mine site. However, the following is needed to continue processing your
application:
The reclamation bond was calculated for this site using the information submitted on the
revised mine map. The reclamation bond for this site has been calculated to be $83,800.00.
The calculation worksheet is enclosed for your review and the bond or balance ($13,608.92)
will be required prior to approval of this modification renewal.
For your convenience, I have enclosed a bond form, an assignment of a savings
account form and irrevocable standby letter of credit form for your use in securing the required
bond. The name on the security must be the same as the name appearing on the application
for a mining permit, i.e., North American Emerald Mines, Inc. In addition to one of these
alternatives, you may, upon request, substitute a cash deposit.
Please be advised that the renewal request cannot be completed until the new bond
amount has been received.
As required by G.S. 74-51 (h), you are hereby advised that you have 60 days from the
date of your receipt of this letter to submit the reclamation bond. If you are unable to meet this
deadline and wish to request additional time, you must submit information, in writing, to the
Director clearly indicating why the deadline cannot be met and request that an extension of
time be granted.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • Telephone [phone] / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina, 27604 • Internet:http://www.dlr.enr.state.nc.us/pages/landqualitysection.html
An Equal Opportunity / Affirmative Action Employer —50% Recycled / 10% Post Consumer Paper

CERTIFIED MAIL
Mr. Hill
Page Two
In order to complete the processing of your renewal request, please forward the bond to
my attention at the following address:
Land Quality Section
Division of Land Resources
Department of Environment and Natural Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
Please contact me at [phone] if you have any questions.
Sincerely,
udith A. Wehner
Assistant State Mining Specialist
Land Quality Section
Enclosures: Bond Forms
Bond Calculation Worksheet
cc: Mr. Zahid Khan
Mr. Tom Freeman — via e-mail