2016-02-01_REVISION - C1981014 (3)

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January 2016 Energy Fuels Coal, Inc. SL -04 Application for Partial Bond Release - Revised 1129116 6. LIABILTY RELEASE FOR SEALED BOREHOLES Release of liability is requested for sealing boreholes SR -6, SR -9, SR -45, SR -47, SR -48, SR -49, and SR -52. No cost for sealing these boreholes in included in the Bond Estimate. All of these boreholes were sealed in November 2015, and abandonment reports were submitted to the DRMS by letter dated November 30, 2015. Locations of the boreholes are shown on the accompanying Bond Release Map. 7. BOND RELEASE FOR REPLACED WATER WELL EFCI is requesting a full bond release for costs associated with replacing the Corley domestic well allegedly damaged by Southfield's mining operations. A replacement domestic water well was drilled in December 2014, and paid for entirely by EFCI. The well construction included installation of a submersible pump along with solar panels with wiring to power the pump. Costs to drill the replacement well are included in task 75 of the Cost Estimate. Information about the location and depth of the replacement well was submitted to the DRMS as part of revision materials included in Technical Revision No. 43, specifically shown on Table 11 as well permit No. 296198, in section 2.04 of the approved permit application. 8. LIABILITY RELEASE FOR SUBSIDENCE MITIGATION AREA Release of liability is requested for the area involved in repairing subsidence pits near Newlin Creek in 2012. This work included backfilling 6 (six) subsidence pits utilizing fill material from an adjacent historic mine spoil pile, topsoil placement using imported topsoil, and seeding and mulching all related disturbance. Details of the work are fully described in EFCI's 2014 Annual Reclamation Report. A review of subsequent DRMS inspection reports indicates that the repaired sites are stable, with no evidence of additional subsidence, and vegetation is successfully establishing. During the process of performing the mitigation, the DRMS directed EFCI to submit a revision (Minor Revision No. 58) documenting the location and methods of the repair work. This revision included a determination of the total area of disturbance based on adding the approximate area for each of the six separate repair sites and the borrow site. The cumulative area was documented as 0.5 acres, which was added to Southfield's total disturbance area. EFCI hereby requests that this repair work be considered normal site maintenance rather than additional disturbance subject to long-term reclamation liability. As such, release of liability is requested for this area. No costs for additional reclamation work at this location are included in the Bond Estimate. The subject area is shown as "Subsidence Mitigation Area" on the accompanying Bond Release Map. 9. BOND RELEASE FOR SITE MAINTENANCE AND MOB/DEMOB TASKS EFCI is requesting full bond release for costs associated with site maintenance, and mob/demob costs for remaining reclamation and site maintenance. Costs for all of these items are included in tasks 70, 73, and 74 of the Cost Estimate. Approval of release of these costs is substantially depen- dent on final approval of SL -03. This approval will, by definition, eliminate additional reclamation Page 7