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Pinon Ridge Mining LLC <br />31161 Highway 90, PO Box 825 <br />Nucla, CO 81424 <br />970 -864 -2125 <br />August 18, 2014 <br />Mr. Bob Oswald <br />Environmental Protection Specialist <br />Colorado Department of Natural Resources <br />Division of Reclamation, Mining and Safety <br />691 County Road 233, Unit 2A <br />Durango, Colorado 81301 <br />Dear Mr. Oswald: <br />SD 6 <br />RECEIVED <br />AUG 202014 <br />Division of Reclamation, <br />Mining & Safety <br />Re: Carnation Mine M/1977 /416: Notice of Change of Operator from Energy Fuels Resources (USA) <br />Inc. to Pinon Ridge Mining LLC <br />On August 18, 2014, Pinon Ridge Mining LLC acquired the Sunday Mines Complex assets and operations from <br />Energy Fuels Resources (USA) Inc. The Carnation Mine is one of five mines that make up the Sunday Mines <br />Complex. Therefore, the name of the permit entity for the Carnation Mine needs to be changed from Energy <br />Fuels Resources (USA) Inc. to Pinon Ridge Mining LLC. <br />Enclosed are the following: <br />Application Form for Transfer of Mineral Permit and Succession of Operators <br />Due Diligence Certification <br />Applicant's Agreement to Request Transfer of Mineral Permit and Succession of Operators <br />Performance Warranty <br />Carnation Mine — Certificate of Deposit in the amount of $33,409 <br />I Demonstration of Le ag 1 Right to Enter <br />As of August 18, 2014, Pinon Ridge Mining LLC is the owner and operator of the Sunday Mines Complex, <br />which includes the Carnation Mine, and controls the 221 unpatented mining claims (see Attachment A) for the <br />minerals under the surface of the subject permitted property. The surface is owned by the Bureau of Land <br />Management, and the BLM has approved the Carnation Mine's Plan of Operations No. COC- 53227. <br />Structure Agreements <br />There are no structures within 1 mile of the Carnation Mine with the potential to be impacted by blasting; <br />therefore, no structure agreements are provided with this permit name change. <br />Pinon Ridge Mining LLC's address and contact information is as follows. <br />George E. Glasier, President & CEO <br />Pinon Ridge Mining LLC <br />31161 Highway 90, PO Box 825 <br />Nucla, CO 81424 <br />970 - 864 -2125 <br />