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gin Via FedEx July 29, 2015 Michael Cunningham Division of Reclamation, Mining & Safety Department of Natural Resources 1313 Sherman Street, Room 215 Denver, CO 80203 RE: Project Report; Technical Revision No. T-22 Dear Mr. Cunningham: JUL 3 U 2015 DIVISION OF RECLAMATION MINING AND SAFETY On April 20, 2015 the Division of Reclamation, Mining and Safety ("DRMS") approved TR - 22 for the installation of a grout curtain at the Sump 10 area at the Schwartzwalder Mine. The objective of the project was to reduce the leakage of mine pool water to the Sump 10 area in order to simplify operation of the Water Treatment Plant Ion Exchange System. This work has been completed and the Project Report (attached Technical Memorandum) is submitted to DRMS for review. Summary of work accomplished under a contract from Cotter Corporation (N.S.L.) ("Cotter") to Hayward Baker: • Work commenced June 2, 2015; • Work performed on a 10 hour/day, six day/week schedule except for interruptions due to inclement weather; • Work included drilling, pressure testing and pressure grouting; • Hayward Baker provided technical data for the Project Report; and • Site work was completed on June 30, 2015. Whetstone Associates provided project operations oversight under contract from Cotter including: • Assisted Cotter in finalizing the location of the drill holes. Initial drill holes were juxtaposed with the holes that were drilled in the suspended 2012 grouting project; • Provided a full time on site Geologist to monitor and report on Hayward Baker operations; • Provided technical advice to Cotter and Hayward Baker as work progressed; • Assisted Cotter in determining the location for additional drill holes based on the data from the initial grouting results; and • Gathered data and authored the Technical Memorandum/ Project Report. Cotter Corporation (N.S.L.) Telephone (720) 554-6200 7800 E. Dorado Place, Ste. 210 Fax (720) 554-6201 Greenwood Village, CO 80111