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CLEAR -rte <br />AW CREEK <br />ASSOCIATES <br />January 5, 2018 Transmitted by E-mail <br />Mrs. Amber Parmet <br />Climax Molybdenum Company — Henderson Mine and Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Subject: Ute Park Extraction Wellfield - Phase III - Technical Revision 28 (TR -28) <br />Certification, Henderson Mill, Permit No. M-1977-342 <br />Dear Mrs. Parmet, <br />AJAX Mountain Enterprises LLC (dba AJAX Ltd) and Clear Creek Associates LLC (Clear Creek; are <br />submitting this letter certifying the installation of Phase III extraction and monitor wells, in accordance <br />with the requirements of TR -28, dated June 8, 2017. Per TR -28, an extraction wellfield is being <br />expanded east of the Henderson Mill Tailing Storage Facility (TSF) 1 -Dam. The existing extraction <br />wellfield permitted under TR -10 is being replaced by this new wellfield, as it has been built -out over <br />the past few years. <br />The construction of the wellfield has been conducted in three phases, as shown on Figure 1. This has <br />allowed for its effectiveness to be evaluated as the project progresses. The 2014 and 2015 installations <br />of the Phase land II extraction wells (ML.EX-1, MLEX-2, and MLEX-3) and monitor wells (MLGXV- <br />21, MLGW-22, MLGW-23, and MLGW-24) provided additional characterization of the Quaternary <br />sediments aquifer, and this information was utilized to design the Phase III wells. <br />The Phase III extraction wells, MLEX-4 and MLEX-5, were installed and tested in July and August <br />2017 and the wells were commissioned in November 2017 following completion of the associated <br />piping, electrical, and instrumentation activities. MLEX-4 penetrated the base of the Quaternary <br />sediments aquifer system at a depth of 88 feet and was screened from 27 to 87 feet. MLEX-5 <br />penetrated the base of the Quaternary sediments aquifer at a depth of 70 feet. This well was <br />screened from 22 to 72 feet. The extraction wells were completed with 8 -inch stainless steel casing <br />and well screens consisted of 0.075 -inch stainless steel wire -wrap casing. As -Built drawings for <br />MLLEX-4 and MLEX-5 are included as Figures 2 and 3. <br />The extraction wells were developed by swabbing, bailing, airlifting, and pumping. Following well <br />development, eight-hour step -tests and 48-hour constant rate pump tests were performed on both <br />wells. Testing indicated that ML EX -4 was generally efficient at pumping rates of up to 100 gallon_ <br />per minute (gpm) while MLEX-5 was efficient at rates up to 50 gpm. <br />Monitor well, MLG%V-26, was drilled to a depth of 101 feet with the base of the Quaternary <br />sediments aquifer penetrated at 76 feet. The monitor well was constructed with Schedule -80 PVC <br />and 0.04 -inch slotted PVC screen. The monitor well was screened from 65 to 75 feet bgs. An As-