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Christopher J. Sanchez <br />BBA Jeffrey A. Clark <br />Michael A. Sayler <br />--�� water consultants Daniel 0. Nieraela <br />Charles E. Stanzione <br />B ISHOP-B ROGDEN ASSOCIATES, INC. Jonathan D. George <br />July 19, 2013 <br />George Patterson <br />Energy Fuels Coal, Inc. <br />PO Box 459 <br />Florence, CO 81226 <br />RE: Energy Fuels Coal, Inc. Southfield Mine: Observation Well MW -NW <br />Dear George: <br />We are writing to provide our opinions regarding the use of the MW -NW monitoring well by Energy <br />Fuels Coal, Inc. (EFCI) as part of the monitoring program for the Southfield Mine. We understand <br />that EFCI is considering submitting a Technical Revision to the Colorado Division of Reclamation, <br />Mining and Safety (DRMS) proposing the termination of monitoring of one of the monitoring wells <br />(MW -NW) currently included in the ground water monitoring program for the Southfield Mine. <br />EFCI believes, and we agree, that the continued monitoring of two other monitoring wells, MW -23 <br />and MW -65 provides adequate data to allow the determination of whether there has been any change <br />in water quality or quantity in the local ground water system related to the operation and reclamation <br />of the Southfield Mine. <br />Background <br />The Southfield Mine is located 8 miles south of Florence, Colorado and was operated by EFCI <br />through early 2001. The layout of the underground mine workings is presented in the attached <br />Southfield Mine Permanent Closure Map dated August 2001. In 2001, mining ceased and final <br />reclamation activities were initiated. During operation, the Southfield Mine produced coal from the <br />Dirty Jack o' Lantern and Red Arrow coal seams of the Vermejo Formation. The Vermejo <br />Formation at this location straddles the Chandler Syncline, dipping to the north / northwest, and <br />consists of mudstones, siltstones, sandstones and coal seams. The interbedded mudstone and <br />siltstones of the formation act as aquacludes restricting vertical ground water movement and the low <br />permeability and lenticular nature of the formation restricts horizontal ground water movement. <br />While mining, the Southfield Mine was dewatered using underground pumps and the North Entry <br />Well which is in connection with the 1St North Sub -Mains of the mine workings and was converted <br />to the MW -NW well in 2003. <br />