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4 ENERGY FUELS RESOURCES <br /> CORPORATION <br /> November 24, 2008 <br /> G. Russell Means <br /> Colorado Division of Reclamation,Mining and Safety <br /> 101 South 3`d, Suite 301 <br /> Grand Junction, CO 81501 <br /> Re: Temporary Cessation,File No. M-2007-044 <br /> Whirlwind Mine,Mesa County,Colorado <br /> Dear Russ: <br /> Energy Fuels Resources Corporation temporarily ceased production at the Whirlwind <br /> Mine on November 20, 2008 and is providing notice to the Division of Reclamation, <br /> Mining, and Safety(DRMS)per Section 1.13.5 of the Colorado Hard Rock/Metal Mining <br /> Rules and Regulations. This cessation occurred because we have not been able to secure <br /> a favorable long-term sales contract with the White Mesa Mill operated by Denison <br /> Mines. This was largely due to the current depressed spot market price for uranium. We <br /> anticipate that the mine will be on standby for 180 days or more. <br /> The mine will be maintained in its current condition so that production may resume on <br /> short notice when market conditions improve. Mine personnel will be on site periodically <br /> to conduct mine safety inspections, environmental monitoring,mine dewatering, and <br /> maintenance. Property gates,buildings, and portal doors will be locked to discourage <br /> unauthorized access when mine personnel are not present. Most of the mine equipment <br /> will be temporarily removed from the site for storage at our Nucla office. Our current <br /> plans are to continue to pump mine water to the surface where it will be treated and <br /> discharged on an intermittent basis. The mine will be ventilated only when personnel <br /> need to go underground. <br /> Environmental inspections and monitoring required by our 112d Permit and other permits <br /> will continue during the standby period. This includes sampling and analyses of the <br /> recently installed groundwater monitoring well. As you are aware,we do not have an ore <br /> stockpile at the mine at this time; accordingly, all surface drainage from the Whirlwind <br /> portal area will be routed to the sedimentation pond. Erosion control measures will be <br /> implemented as needed to maintain the surface area in a stable condition.As discussed <br /> during the recent site inspection by DRMS and the Bureau of Land Management,we will <br /> also seed and mulch the subsoil stockpile. <br />