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energy fuels coal, inc <br />115 east main street #10 . florence, colorado . 81226 <br />June 29, 2016 <br />Mr. Rob Zuber, P.E., Environmental Reclamation Specialist <br />Division of Reclamation, Mining, and Safety <br />1313 Sherman ST, Room. 215 <br />Denver, CO 80203 <br />Re: Response to Bond Release Application No. 4 (SL -04) — Second Adequacy letter <br />Southfield Mine (Permit No. C-1981-014) <br />Dear Rob Zuber: <br />With this letter Energy Fuels Coal Inc. (EFCI) is providing responses to the outstanding issues <br />contained in your adequacy review letter dated April 29, 2016, regarding EFCI's application for <br />Bond Release Request No. 04 (SL -04). Each of the three relevant DRMS adequacy questions are <br />repeated for reference (by number), shown in bold, and followed by EFCI's responses. <br />1) Regarding the seep and associated structure in the Magpie Diversion, we appreciate <br />your status update on the plan to remove this structure. It is our position that EFCI needs <br />to reclaim the structure before SL -04 is approved. <br />Response: EFCI removed the spring structure (vertical culvert) and reclaimed the site on June <br />25, 2016. Kessler Reclamation performed the dirt work and removal of the scrap culvert. The <br />landowner (Corley) requested, and EFCI agreed, to remove the associated delivery pipe. Kessler <br />excavated and removed all that could be recovered of the delivery pipe while reclaiming the <br />spring. All of the scrap delivery pipe, excepting a 30' piece, has been removed from the site at <br />this time. Kessler is scheduled to remove the remaining pipe on or before July 3, 2016. <br />4) Please notify the Division when this pipe (a piece of steel pipe that is north of the Magpie <br />Diversion) has been removed from the site. <br />Response: EFCI removed the piece of pipe from the site on June 27, 2016. <br />5) Please notify the Division when this reclamation (reclamation of a metal structure that <br />could be a large manhole at the north end of the spur off of the road to MW -NW) has been <br />performed. <br />Response: EFCI reclaimed the manhole structure on May 4, 2016. The backfilled manhole <br />location and the disturbance on the adjacent small dirt pile was subsequently seeded. <br />If you have questions or require additional information, please contact me. <br />Sincerely, <br />AUzo, S. W ea.ve r <br />Allen S. Weaver <br />Energy Fuels Coal, Inc. <br />