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WWL <br /> Western Water Lana, Inc. <br /> 1W <br /> November 12,2008 <br /> Mr.Frank Filas <br /> Environmental Manager <br /> Energy Fuels Resources Corporation <br /> 44 Union Blvd,Suite 600 <br /> Lakewood,CO 80228 <br /> RE: Whirlwind Mine: Installation of Monitoring Well MW-W1 <br /> Dear Frank: <br /> Western Water&Land,Inc.(WWL),as consultant to Energy Fuels Resources Corporation(EFR),has <br /> prepared this letter report regarding the installation of monitoring well MW-W 1 at the Whirlwind mine, <br /> located in Mesa County Colorado,in accordance with the scope of work dated April 23,2008. This <br /> report summarizes the installation activities of the monitoring well and a brief interpretation of local <br /> hydrogeology. <br /> In accordance with mine permit documents,EFR proposed to install a single monitoring well in a <br /> location downgradient of a planned waste rock repository associated with the development of the <br /> Whirlwind Mine. The intent of the well is to monitor groundwater levels and quality in the Brushy <br /> Basin Member of the Morrison Formation,which forms bedrock in the area. WWL submitted a <br /> completed monitoring/observation water well permit application with the S 100 application fee to the <br /> Colorado Division of Water Resources(DWR)on September 26,2008. In order to expedite <br /> construction of the well,WWL then submitted a Notice of Intent(NOI)to construct a monitoring hole <br /> to DWR on October 6"',2008. The DWR returned the approved NOI by way of facsimile on October <br /> 7t'. <br /> The monitoring well's location was staked and the surface grubbed by EFR in late September,2008. <br /> Gordon Smith Drilling Company was selected by WWL to provide well construction services. Gordon <br /> Smith Drilling Company was selected because its cost was within the original cost estimate and his <br /> availability best accommodated the preferred schedule of WWL and EFR. <br /> Attachment A to this report consists of a field log summary,Attachment B consists of the geologic log <br /> of drill cuttings,and Attachment C consists of site photos. <br /> Well Construction <br /> Gordon Smith mobilized a rotary Speed Star drilling rig on October 7th,2008. Well construction <br /> occurred from October 9—12,2008. This section of the report summarizes the well construction <br /> activities.For more detailed information,refer to Attachment A. <br /> The monitoring well,referred to as MW-W 1,is located approximately 30 ft north of County Road 5110 <br /> and 350 ft south of the Whirlwind Mine portal. The measured GPS UTM coordinates of the well site <br /> Applications m Earth Science 743 Horizon Court Suite 330,Grand Junction,CO 81506 <br /> Phone:(970)242-0170 Fax:(970)242-0270 <br />