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4. COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />h MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE/PROSPECTING ID #: <br />MINERAL: <br />COUNTY: <br />October Ore Pile Reclamation <br />M- 2008 -050 <br />Vanadium and urani <br />Mesa <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Travis H. Marshall <br />August 13, 2013 <br />10:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Nuvemco, LLC <br />N/A <br />I 110d - Designated Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />None <br />$13,220.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />I R'S U <br />SIGNATURE DATE: <br />Cloud <br />August 27, 2013 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and /or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS------------------- - - ---- Y (FN) FINANCIAL WARRANTY-- - - ---- Y (RD)ROADS ------ — — ---- Y <br />HYDROLOGIC BALANCE--- --- - -- Y (BG) BACKFILL & GRADING- ---- -- N (EX)EXPLOSIVES — ------- NA <br />PROCESSING WASTE/TAILING -- NA (SF) PROCESSING FACILITIES--- -- NA (TS)TOPSOIL — ------ — - --- N <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE------ - - - - -- Y (RV) REVEGETATION - - -- N <br />SIGNS AND MARKERS----- - - - - -- Y (SP) STORM WATER MGT PLAN ---- NA (SB) COMPLETE INSP - -- N <br />OVERBURDEN/DEV. WASTE--- --- - -- Y (SC) EROSION /SEDIMENTATION- -- Y (RS) RECL PLAN /COMP -- N <br />T) ACID OR TOXIC MATERIALS----- Y (OD) OFF -SITE DAMAGE------- --- - -Y (ST) STIPULATIONS - - - - -- NA <br />= Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page I of 2 <br />