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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Nat ,ral Resources <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE/PROSPECTING ID#: <br />MINERAL: <br />COUNTY: <br />Henderson Mine <br />M-1977-342 <br />Molybdenum <br />Clear Creek, Grand <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Stephanie J. Mitchell <br />July 27, 2017 <br />09:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Climax Molybdenum Company <br />Miguel Hamarat <br />112d-3 - Designated Mining Operation <br />REASON FOR INSPECTION: <br />Normal I&E Program <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />$37,993,785.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INSPECTOR'S SIGNATURE: <br />SIGNATURE DATE: <br />Clear <br />August 1, 2017 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic -forming, as identified in the permit. <br />RECORDS---------------------------- Y (FN) FINANCIAL WARRANTY-------- N (RD) ROADS--------------- N <br />HYDROLOGIC BALANCE------------ Y (BG) BACKFILL & GRADING-------- N (EX) EXPLOSIVES------- N <br />PROCESSING WASTE/TAILING---- N (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL------------- N <br />GENL MINE PLAN COMPLIANCE- N (FW) FISH & WILDLIFE---------------- N (RV) REVEGETATION---- N <br />SIGNS AND MARKERS-------------- N (SP) STORM WATER MGT PLAN--- N (CI) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- N (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- N <br />T) ACID OR TOXIC MATERIALS------- N (OD) OFF-SITE DAMAGE ------ --- --- —N (ST) STIPULATIONS----- N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation <br />Page I of 6 <br />