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eFEENERG YFUELS <br />October 30, 2013 <br />Division of Reclamation Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />To Whom it May Concern: <br />Energy Fuels Resources (USA) Inc. <br />225 Union Blvd. Suite 600 <br />�1 Lakewood, CO, US, 80228 <br />or j" 303 974 2140 <br />�( www.energyfuels.com <br />RRC` /Ve© <br />OCT 31 2013 <br />Division of Reclamation <br />Mining & Safety , <br />Re: Submission of Enerey Fuels Resources (USA) Inc.'s Annual Report for the Carnation Mine <br />Permit Number M/1977 /416 <br />EFRI is providing the annual report for the Carnation Mine (the "Mine "). Attached please find the annual report <br />along with the annual fee. <br />The Mine was placed into temporary cessation status on November 30, 2009. On September 10, 2012, EFRI <br />received approval from the Colorado Division of Reclamation, Mining, and Safety (the "Division ") to place the <br />Mine back into active status. EFRI requested the Mine be placed back in active status in order to implement the <br />Environmental Protection Plan, and perform further groundwater characterization at the site by installing five <br />deep monitoring wells and one shallow monitoring well at the Sunday Mines Complex. The Mine is one of five <br />mines that make up the Sunday Mines Complex. <br />EFRI has completed installation of three of the five deep monitoring wells (MW Sun -1, MW Sun -2, and MW <br />Sun -3) and one shallow well (MW- TPZ1). The locations of these monitoring wells, as well as, the proposed, <br />future well locations are shown on the map provided with this report. No additional surface disturbance will be <br />caused by this installation at the Mine, because the surface disturbance, installation, and reclamation of the <br />monitoring wells is attributed to the Topaz Mine Surety Bond and Estimate, which was updated in April of <br />2012 prior to the initial well construction. The Topaz Mine is one the five mines that make up the Sunday <br />Mines Complex. EFRI will update the Division and the Bureau of Land Management (the "BLM ") periodically <br />as the project progresses. A map showing the existing and proposed monitoring well locations is provided with <br />this annual report. <br />Weed control was conducted in 2013 in accordance with the currently approved Pesticide Use Proposal, <br />approved on May 21, 2013 by the BLM. A map showing the noxious weed treatment areas at the Sunday Mines <br />Complex, and a map showing the Mine surface facilities have been provided with this annual report. <br />If you have any questions or comments, please do not hesitate to contact me at 303 - 389 -4167. <br />Yours very truly, <br />ENERGY FUELS RESOURCES (USA) INC. <br />Jaime Mass <br />Regulatory Compliance Specialist <br />cc: <br />Harold R. Roberts, Frank Filas, Dick White, David Turk, Kathy Weinel (EFRI) <br />James Blair (Dolores BLM) <br />