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January 20, 2016 <br /> Colorado Division of Reclamation, Mining and Safety <br /> Attn: Mr. Lucas West <br /> 1313 Sherman Street, Room #215 <br /> Denver, Colorado 80203 <br /> Re: M-1977-416 Carnation Mine; M-1978-039-HR St Jude Mine; M-1977-285 Sunday Mine; <br /> M-1980-055-HR Topaz Mine; and M-1981-021 West Sunday — Temporary Cessation <br /> Notices <br /> Mr. West, <br /> The Colorado Division of Reclamation, Mining and Safety (the Division) completed an inspection <br /> of the subject permitted properties on November 23, 2015. In the inspection reports that <br /> followed, the Division stated that the operator must file a notice of Temporary Cessation in <br /> writing to the office. <br /> On behalf of Pinon Ridge Mining, LLC (PRM), please accept this letter, additionally enclosed <br /> Temporary Cessation Notice forms, and required fee checks as notice that mining activities <br /> have ceased for more than a one-year period at the subject mines. <br /> On October 21, 2014, the Division approved the succession of operators from Energy Fuels <br /> Resources Inc. to PRM for each of the subject operations. At the time of the approval, each <br /> mine status was listed as active. 'In the following 180 day period from the succession of <br /> operators approval there was no mining activity at the subject locations. Therefore, PRM <br /> requests that the date which the initial five-year period of temporary cessation begins be set as <br /> April 19, 2015 (180 days from October 21, 2014). <br /> Mining activities have ceased to continue at the subject properties primarily due to current <br /> market conditions of uranium and vanadium. PRM plans to notify the Division prior to resuming <br /> any mining operations and intends to do so only after all required conditions (market, permitting, <br /> bonding, etc.) are met. Upon succession of operators approval, the Division reviewed the <br /> financial warranty for each of the subject mining permits and deemed them adequate. PRM <br /> believes the current bond amounts are still sufficient. <br /> Activities which will continue to be ongoing at the subject areas include weed control, storm <br /> water and erosion control, safety measures, and any corrective action compliance as the result <br /> of future Division inspections. <br /> Please do not hesitate to contact us if you have any questions or require further information. <br /> Regards, <br /> Patrick Siglin <br /> Geologist <br /> w/ enclosures <br /> Pinon Ridge Mining, LLC <br /> P O Box 825 <br /> Nucla, CO 81424 <br />