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Pinon Ridge Mining LLC <br /> 31161 Highway 90, PO Box 825 <br /> Nuda, CO 81424 <br /> May 24, 2017 <br /> Colorado Division of Reclamation,Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver,CO 80203 <br /> Attn: Mr. Dustin Czapla—Environmental Protection Specialist <br /> Grand Junction Field Office <br /> RE:Van 4 Shaft, Permit M1997032,Hearing Request for Second Five(5)Year Temporary Cessation of <br /> Production Period <br /> Mr.Czapla: <br /> Pinon Ridge Mining, LLC,a wholly owned subsidiary of Western Uranium Corporation (The Company), <br /> hereby requests a hearing for an extension of the period of temporary cessation of production with the <br /> Colorado Mined Land Reclamation Board (MLRB)on June 28,2017,for The Van 4 Shaft(The Project), <br /> Permit M1997032 (The Permit). <br /> Pursuant to CRS 34-32-103(6)(a)(III), "...the operator [must file] a report requesting an extension of the <br /> period of temporary cessation of production with the board stating the reasons for the continuation of <br /> nonproduction and those factors necessary to, and his plans for, resumption of production." <br /> Please accept this letter and enclosed Temporary Cessation Notice form with required fee as the report. <br /> Pursuant to Rule 1.13.5(3)(a-c) of the Mineral Rules and Regulations of the Colorado Mined Land <br /> Reclamation Board for Hard Rock, Metal,and Designated Mining Operations(Colorado Rules), "[A] <br /> notice for the second period [of temporary cessation]shall include the following: <br /> (a) "[D]emonstration that the existing Financial Warranty is adequate to cover the reclamation <br /> liability; <br /> (b) "Explanation as to why the Operator has not recommenced operations or begun reclamation; <br /> (c) "Demonstration of continued commitment to conduct mining operations at the site by the end <br /> of the second five year period" <br /> A. Adequacy of Existing Financial Warranty: <br /> The Division of Reclamation, Mining and Safety(DRMS)approved an Application for Transfer of Mineral <br /> Permit and Succession of Operators from Energy Fuels Resources Inc(EFR)to the Company on October <br /> 21,2014 for the Permit.The financial warranty amount of$75,057.00 was referenced in both the <br /> application and approval letter for succession of operators and was set on May 10, 2012 by the DRMS <br /> Pinon Ridge Mining, LLC <br /> P.O. Box 825 <br /> Nucla,CO 81424 <br />