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A.!TC0M AECOM 303-694 2770 tel <br /> 6200 S Quebec St 303 694 3946 fax <br /> Greenwood Village,CO 80111 <br /> www.aecom.com <br /> February 20, 2017 <br /> Mr. Raymond Lazuk <br /> Environmental Manager <br /> Climax Molybdenum Company-Climax Mine <br /> Highway 91 —Fremont Pass <br /> Climax, CO 80429 <br /> Subject: DRMS Annual (Year 2016) Tailing Storage Facility Evaluation, Tenmile and <br /> Mayflower Tailings Storage Facilities, Climax Mine, Permit No. M-1977-493 <br /> Dear Mr. Lazuk: <br /> URS Corporation, a legacy company of AECOM, serves as the Engineer of Record (EOR) for the <br /> Tenmile and Mayflower Tailings Storage Facilitates (TSF)at the Climax Mine, near Fremont pass <br /> Colorado. AECOM has prepared this summary of our Annual (2016) TSF Evaluation as required by <br /> Section 6 of the Mayflower TSF Operations and Maintenance Manual (OMM) and as stated in the <br /> response letter dated June 23, 2014 from Climax Molydenum Company to the Division of <br /> Reclamation, Mining, and Safety (DRMS): <br /> DRMS initially requested that the annual TSF inspection/evaluation/certification report be <br /> submitted to DRMS within 30 working days of the inspection. Climax has requested that the <br /> report be included with the standard annual report for the site. DRMS will allow the submittal <br /> of the TSF certification report with the other annual report if Climax will commit to notifying <br /> DRMS within 30 days of the inspection(or sooner if possible) of any issues identified in the <br /> inspection report that require corrective actions or modification to the existing approved TSF <br /> plans. <br /> It is our understanding you will include this annual letter to DRMS in compliance with your other <br /> annual reporting. Presented below is a summary of key observations made during 2016. <br /> Active deposition in 2016 occurred at the Tenmile TSF with leadoffs in January, February, March, <br /> November and December and with spigots September and October. Tailing deposition at Mayflower <br /> TSF in 2016 occurred through the leadoffs or cutouts in March, April, May, July, and September, and <br /> with spigots June, July, August and September. <br /> AECOM completed monthly site inspections of the active TSF(s)from June to October 2016. The <br /> review included meeting with operations personnel and reviewing production and operational <br /> logistics, operational plans, tailing management challenges, and future plans for operating the dams. <br /> Our site visits included reviewing tailing dam instrumentation, specifically reviewing piezometric <br /> elevations. We also completed a monthly walking tour of the dam observing the active and inactive <br /> tailing beach, dam crest, abutments, downstream slope, and toe area. We also conducted a review <br /> of the horizontal and foundation drain outfalls, as accessible and applicable. <br /> M:\DCS\TEMPORARY\MELISSA\2016 TSF ANNUAL REVIEW.DOCX <br />