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September 26,2013 C-1981-018/Deserado Mine ZTT <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> N -Air Resource Protection Y -Roads <br /> R -Availability of Records R -Reclamation Success <br /> R -Backfill& Grading N -Revegetation <br /> N -Excess Spoil and Dev.Waste N - Subsidence <br /> N -Explosives N - Slides and Other Damage <br /> N -Fish&Wildlife N - Support Facilities On-site <br /> R -Hydrologic Balance R - Signs and Markers <br /> N - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br /> R - Other N - Special Categories Of Mining <br /> R -Processing Waste Y -Topsoil <br /> COMMENTS <br /> This was a complete inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, <br /> Mining and Safety(DRMS)conducted on September 26,2013. Scott Wanstedt of Blue Mountain Engergy, Inc. <br /> (BME)accompainied the inspection. The weather was clear with the ground dry.No recent precipitation event had <br /> occured prior to the inspection. Temperatures for the day were around seventy degrees fahrenheit. The annual <br /> AVS review inspection was conducted during this inspection. <br /> BACKFILL and GRADING—Rule 4.14 <br /> Contemporaneous Reclamation 4.14.1;Approximate Original Contour 4.14.2;Highwall Elimination 4.14.1(2)(f); <br /> Steep Slopes 4.14.2,4.27;Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br /> Multiple exploration boreholes were drilled prior to the inspection and were inspected which includes but not <br /> limited to, 310119-18, 310119-19,X2 -X7,X10 and NI 1-58.Most boreholes were sealed and pads regraded and <br /> cross ripped for reseeding.No signs of erosion were noted at any of the sites. <br /> Borehole N11-58 was constructed with a raised pad for a possible future nitrogen sampling station.No sediment <br /> control methods were in place at the time of the inspection and are needed. <br /> Number of Partial Inspection this Fiscal Year: 2 <br /> Number of Complete Inspections this Fiscal Year: I <br /> Page 2 of 8 <br />