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awoF co`O COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />ye MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE/PROSPECTING ID#: <br />MINERAL: <br />COUNTY: <br />Schwartzwalder Mine <br />M-1977-300 <br />Uranium <br />Jefferson <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Michael A. Cunningham <br />June 3, 2015 <br />10:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Cotter Corporation <br />Ken Mushinski <br />112d-2 - Designated Mining Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />None <br />$4,339,003.39 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INS T R'S GN TURE: <br />SIGNATURE DATE: <br />Clear <br />June 10, 2015 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic -forming, as identified in the permit. <br />RECORDS--------------------------------- NA (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING ---------- N (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL ---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE--------------- Y (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS---------------- Y (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- N (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- Y <br />T) ACID OR TOXIC MATERIALS------- NA (OD) OFF-SITE DAMAGE ---------------Y (ST) STIPULATIONS------- NA <br />Y = Inmerted And found in romnlinnre / N = Not incnerted / NA = Nat nnnlienhla to Chic annratinn / PR = Prnhlam rand / PV = P..Ahln v:nlatinn ritnd <br />Pagel of 5 <br />