2015-10-13_REVISION - C1981014 (4)

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Energy Fuels Coal Inc. Introduction Application for Bond Release — October 2015 Please find enclosed an application for bond release for the Southfield Mine (C-1981-014), permitted and operated by Energy Fuels Coal Inc (EFCI). This application is submitted to the Division of Reclamation, Mining and Safety (DRMS) in accordance with the requirements of Rule 3.03 of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining (revised 9/14/2005). General Description The Southfield Mine is comprised of two separate areas, the Mine and Loadout permit boundaries which encompass all or portions of the following areas: MINE AREA: Township 20S, Range 69W, 6th Principal Meridian - Sections 19,30,31 Township 20S, Range 70W, 6th Principal Meridian - Sections 23,24,25,26 LOADOUT AREA: Township 19S, Range 69W, 6th Principal Meridian - Section 18 Township 19S, Range 69W, 6th Principal Meridian - Section 17 A more detailed legal description, taken from Section 2.03 of the approved Southfield permit application, is included in Appendix J of this application. These areas are shown on the Rockvale and Canon City, Colorado, 7.5 minute USGS Quadrangle Maps. The Southfield Mine operated from 1978 through 2000 under an approved permit from the DRMS. The current mine permit was originally approved and issued in August 1984 and has subsequently been renewed for multiple five-year incremental terms. The current renewal, that includes both the Mine and Loadout, extends through July 30, 2019. The Southfield Mine ceased active underground mining operations in December 2000, and EFCI subsequently completed backfilling, grading, topsoil placement, and permanent seeding during 2001 through 2003. During 2004, EFCI planted shrub clumps in the reclaimed facilities and refuse disposal areas at the Mine Site in accordance with permit requirements. Reclamation work in subsequent years included maintenance of drainage control structures, limited interseeding, and sealing specific drill holes. The completed work has resulted in reclamation of disturbed areas to provide for long-term stability, effective drainage control, and vegetative establishment consistent with the proposed postmining use of rangeland and wildlife habitat. Mining operations at the Mine resulted in disturbance of approximately 88.3 acres. Of this, approximately 18 acres are not reclaimed that are associated with the approved permanent facilities. Energy Fuels conducted coal stockpiling and train loading operations at the Loadout during the period from 1981 through 1996 under permit C-1981-014 issued in February 1981 by the DRMS. Reclamation of the site, including removal of surface structures and remaining coal stockpiles, backfilling and regrading, drainage control, topsoil replacement, and seeding was completed in October 1996. Permanent seeding was done in 1997. Poor initial vegetative establishment resulted in the decision to reseed the entire Loadout Area in 1999. Reclamation work in subsequent years included maintenance of drainage control structures, limited interseeding, and efforts to restrict frequent trespassers. EFCI completed backfilling and seeding sediment ponds L 1 and L2 in November 2014. The completed work has resulted in reclamation of disturbed areas to provide for long-term stability, effective drainage control, and vegetative establishment consistent with the proposed postmining use of rangeland. Surety Release No. 3 (SL -03) Southfield Mine