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January 2016 Energy Fuels Coal, Inc. SL -04 Application for Partial Bond Release - Revised 04103/16 INTRODUCTION 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. This application pertains to the Mine only, which encompasses all or portions of the following areas: MINE PERMIT AREA: Township 20S, Range 69W, 6th Principal Meridian - Sections 19,30,31 Township 20S, Range 70W, 6th Principal Meridian - Sections 23,24,25,26 This area is shown on the Rockvale, Colorado, 7.5 minute USGS Quadrangle Map. The Mine permit boundary encompasses approximately 2,713.3 acres. The Mine operated from 1978 through 2000 under an approved permit from the DRMS. The current mine permit application was originally approved and issued in August 1984 and has subsequently been renewed for multiple five-year incremental terms. The current renewal extends through July 30, 2019. The Southfield Mine ceased active underground mining operations in December 2000, and EFCI subsequently completed the vast majority of backfilling, grading, topsoil placement, and permanent seeding during 2001 through 2003. Reclamation work in subsequent years included maintenance of drainage control structures, subsidence repair, and sealing remaining drill holes and monitoring wells. 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. This SL -04 bond and liability release application requests release of bond for reclamation or perma- nent retention of specific items within the permit boundary that were not included in SL -03. In addi- tion, release of liability is requested for specific items and areas in the permit area. Detailed infor- mation pertaining to this request is described below. Three previous bond release applications were submitted by EFCI, two of which were approved by the Division, and one pending approval. Surety Release Nos. 1 and 2 (SL -01 and SL -02) applica- tions were for Phase I bond release. Surety Release No. 3 (SL -03) application was for a Phase I, II, and III bond release. SL -01 was approved on November 4, 1997 and documented by the written findings titled "Proposed Decision and Findings of Compliance for the Southfield Mine, Permit No. Page 4