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BLACK RANGE <br />M I N E R A L S <br />July 8 2015 RECEIVED <br />State of Colorado JUL 10 2015 <br />Division of Reclamation Mining and Safety <br />Attn Mr Tim Cazier DIVISION OF RECLAMATION <br />1313 Sherman Street Room 215 M N C uXDSAF 27 Y <br />Denver Colorado 80203 <br />Re Hansen Uranium Project DRMS NOI File No P 2009 025 <br />Response to Second Notice of Deficiencies NOI Modification 3 MID 3 <br />Dear Mr Cazier <br />On May 12 2015 Black Range Minerals BLR received the second notice of deficiencies from the <br />Division of Reclamation Mining and Safety DRMS The notice indicated that 4 of the initial 13 <br />deficiency response items by BLR were only partially adequate Below is further clarification to <br />those four items <br />1 Page 4 Item 12 Form 2 Item 6 on Form 1 <br />a The response addresses how the ore zone water pressure is isolated from the <br />ore zone but additional clarification is needed to address how effective the <br />annular seal will be at protecting the water bearing zones above the high <br />pressure cutting jet A drawing or schematic representation of the borehole form <br />surface to cutting jet might be useful in demonstrating the proposed protective <br />measures Please also include drawings specifications and analyses to <br />demonstrate the water lines have a sufficient factor of safety against rupture for <br />the high pressures involved <br />Enclosed is a figure illustrating the ore zone and mine unit in cross section depicting a cement <br />seal through the above lying water bearing zones Additionally enclosed is an information sheet <br />from Kinley Exploration LLC regarding their miner technology capacities and ratings <br />2 Page 4 Item G Form 2 Item E on Form 1 <br />a Please address the ultimate disposition of the container pit from which decanted <br />jet water would be stored on site and allowed to evaporate <br />The container s will be cleaned and returned to their owner The pits will be covered and sampled <br />in accordance with Stipulation No 1 NOI Modification No 2 MD 02 <br />b Please clarify whether any of the mining and processing studies are to be <br />performed onsite or if it will all be performed offsite <br />The mining and processing studies will be performed offsite <br />c Please clarify whether any of the mining and processing studies are to be <br />performed onsite or if it will all be performed offsite <br />PO Box 18041 Golden Colorado 80402 <br />ph 720 258 6329 <br />www blackranggminerals com or infousaablackrangeminerals com