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Energy Fuels Resources (USA) Inc. <br />225 Union Blvd. Suite 600 <br />WENEMOYFUELS <br />Lakewood, CO, US, 80228 <br />303-974-2140 <br />www.energyfuels.com <br />regulatory obligations and maintain the Mine site in good working condition so that operations <br />can resume on short notice when market conditions improve. <br />Evidence of Energy Fuels' continued commitment to resume mining operations is cited in <br />the company's August 31 Notice (at p. 2, para. (c)). Among the list was the company's effort to <br />renew its Colorado (Water) Discharge Permit System Permit through the Colorado Department <br />of Public Health and Environment in 2015. Under the renewed permit, Energy Fuels is <br />undertaking projects requiring the engineering, design and testing of water treatment <br />technologies to meet new (reduced) discharge limits. Since 2015 and continuing through 2018, <br />the company has and will continue to submit documents including a Facility Evaluation Plan, <br />Progress Reports and Study Results to demonstrate attainment with the new discharge limits. <br />Another cited example of Energy Fuels' commitment to resume operations is the <br />voluntary commencement of a one-year baseline hydrological monitoring program to expand the <br />number and Iocation of monitoring points at the request of an interested stakeholder. This <br />program, which commenced in 2017, is being completed by a third -party contractor and funded <br />solely by Energy Fuels. The water sampling program includes two (2) monitoring wells and one <br />(1) spring location which are not required by the Division or the Bureau of Land Management <br />(BLM ) under the routine hydrological monitoring program. <br />Other activities not directly referenced in the Notice but still relevant to a commitment to <br />operate the Mine include, for example: <br />• Maintaining the operating status of the White Mesa Mill (the only fully -licensed and <br />operating conventional uranium mill in the United States) based on the expectation that <br />production from Energy Fuels' properties (and others) in the region, including the <br />Whirlwind Mine, will resume when market conditions improve. <br />• Refurbishment of Mine surface facilities (e.g., roof and siding on dry house, trim on shop <br />building). <br />• Maintenance of roads (Packrat Portal) and storm water controls (ditches, ponds) that <br />require mobilization of mining equipment (skidsteer, etc.) to the Mine site. <br />• A new "Optimization of Operations" initiative to reduce capital and operating costs at all <br />uranium production locations. Examples of areas being reviewed relative to the Mine <br />include ore sorting, improved operating practices and mechanized mining. Additional <br />information is available through Energy Fuels web site at <br />htt ://www.ener fuels.conVnews- r/ener -fuels- rovides-o erational-u date -uranium - <br />production -guidance -20171, <br />