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BLACK RANGE <br />MINERAL S <br />December 16, 2014 <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />Attn: Mr. Tim Cazier <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Hansen Uranium Project; DRMS NOI File No. P- 2009 -025; <br />Modification 3 (MD03) <br />Dear Mr. Cazier, <br />RECEIVED <br />DIMSION OF RECLAMATION <br />MINING AND SAFETY <br />Attached is a modification to Black Range Minerals (BLR) existing DRMS NOI File No. P -2009- <br />025. The modification is to collect a one -time prospective bulk sample of up to 200 tons from the <br />Hansen Uranium Deposit via hydraulically jet- cutting a cavern of rock from within a drill hole. <br />Modifications to the subject permit form are as follows: <br />- III. Project Description parts 2, 4, 5, and 6 <br />- IV. Operation and Reclamation Measures parts 4 and 5 <br />Prospecting types and methods are modified to include a shaft (the vertical drill hole access) and a <br />cut (the hydraulically jet -cut cavern) within the Hansen Uranium Deposit for the collection of a one- <br />time bulk sample. Surface disturbance associated with the bulk sample will be slightly larger than <br />the current average disturbance. The bulk sample operation will require more area primarily for <br />storage tanks and additional mobile infrastructure (see Attachment 4). Surface disturbance for this <br />operation will be within our currently approved and bonded amount. <br />Prior to the bulk sample, a groundwater monitoring well will be installed directly down gradient from <br />and within the same formation and hydro - geologic horizon as the bulk sample zone. A drill rig will <br />complete a drill hole shaft and then lower a hydraulic jet cutting tool through the drill hole to the <br />sample zone. The jet tool will cut sample material from the wall of the drill hole via pressurized <br />water stream and the material will be lifted through the drill pipe to the surface via air lift suction. At <br />the surface, material will be directed onto a gravel shaker where the sample stream will be split. <br />The coarser material from the shaker will be directed into a mobile storage bin and the finer <br />material and water will be directed into mobile upright tanks. Decanted water from the upright tanks <br />will be circulated as needed for cutting additional sample and a vacuum truck will remove the <br />settled solids. Cutting and extraction of sample material for the one -time prospective bulk sample <br />duration will be limited to no more than 200 tons of dry material equivalent. <br />110 N. Rubey Drive Suite 201, Golden Colorado, 80403 <br />PO Box 18041, Golden Colorado, 80402 <br />ph (303) 279 4946 fax (303) 279 4934 <br />www.blackrangeminerals.com or infousa (ablackrangeminerals.com <br />