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B _BA <br />water consultants <br />BISHOP- BROGDEN ASSOCIATES, INC. <br />May 30, 2014 <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 />Christopher J. Sanchez <br />Jeffrey A. Clark <br />Michael A. Sayler <br />Daniel O. Niemela <br />Charles E. Stanzione <br />Jonathan D. George <br />We are writing to provide additional discussion regarding the functionality of the MW -NW <br />monitoring well as a monitoring structure for the Southfield mine owned by Energy Fuels Coal, Inc. <br />(EFCI). <br />Background <br />As you are aware, the MW -NW well (previously known as the North Entry Well) was completed in <br />the Southfield mine workings (in the I" North Sub -Mines area of the mine) and was originally used <br />as a dewatering well. In 2003, the well was converted to a monitoring well to monitor water levels <br />in the mine. As you are also aware, the well is partially obstructed at a depth of 353 feet below the <br />top of casing. On April 17, 2012, a test was performed during which 1,500 gallons of water was <br />poured into the MW -NW well. Conclusions from this test indicate that the MW -NW well was <br />connected to the mine workings at that time. <br />It was our opinion, based on the 2012 testing, that the well structure was in connection with the mine <br />workings and provided a structure for water level measurements and water quality sampling. Based <br />on our review of more recent test data it is still our opinion that the MW -NW well provides a <br />structure to measure water levels in the mine workings and provide an access point for water quality <br />sample collection, as discussed below. <br />MW -NW Observation Well Testing <br />It is our understanding based on information you provided, that on April 30, 2014, a second test was <br />performed during which another 1,500 gallons of water was poured into the MW -NW well structure. <br />We note that the calculated well casing volume above the partial well obstruction is approximately <br />538 gallons. Accordingly, both the 2012 and 2014 test introduced close to three times the volume of <br />the well into the well structure. <br />