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April 11, 2017 C-1981-018/Deserado Mine JDM <br />D -Seam Dewatering System 41 Finishing Pond PP-2Pond <br />DP -1 Pond <br />GENERAL MINE PLAN COMPLIANCE: <br />Construction has begun as permitted under TR70 and MR170 for the D -Seam dewatering system #2. The <br />construction was in the initial stages of the Phase I portion of the system with ponds 3, 4, and 5 being constructed. <br />No impoundments were constructed at the time of the inspection. Only grading, vegetation removal, and top soil <br />salvaging has begun. A polygon of the area was collected utilizing GPS and it was determined that the disturbed <br />area falls within the area permitted to be disturbed. No compliance issues were noted at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 6 <br />