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2016 Reclamation Cost Estimate Update — Climax Mine <br />300,000 cy of sediment and sludge to expose a native footprint around the margins of the lake to <br />encourage development of hydric vegetation communities. These areas will also be seeded with the <br />hydric seed mixture. <br />The AM -06 cost for this project area included some general work items such as mobilization and <br />demobilization, and sediment and erosion control. This update includes these general costs grouped for <br />all areas (see Sections 2.20 and 2.27). <br />2.17 5 Dam <br />5 Dam has been reclaimed in its current configuration. However, an increase in the height of 5 Dam <br />during the course of the current production operations will create up to 59 acres of tailing which will <br />require reclamation at the completion of dam construction. A nominal 12 inches of growth medium (6 <br />inches of biosolids or topsoil over 6 inches of subsoil) will be applied to these 59 acres of the dam face for <br />a total of approximately 95,000 cy. The upland standard seed mixture will be applied to the cover <br />material. <br />The AM -06 cost for this project area included an incorrect cost basis for the cover thickness which was <br />not consistent with the reclamation plan described in Exhibit E. This update reflects the corrected cost <br />basis and calculation. <br />2.18 Revegetation <br />Revegetation activities which follow the proven guidelines provided in AM -06 will be followed. Overall <br />acreages of impacted footprints have increased slightly. However, several successful reseeding projects <br />have been conducted by Climax since the submittal of AM -06 for which more cost effective techniques <br />have been successfully utilized. These have resulted in lower unit rates which are reflected in the updated <br />reclamation cost estimate for the seeding of all regraded slopes. This cost will include seeding, mulching, <br />and crimping site wide, an area of approximately 2,500 acres or almost 4 square miles. <br />2.19 Seal Underground Mine Openings <br />No. 3 Gallery is currently blocked off to prevent access. Upon cessation of mining operations, it would <br />require further work to prevent long-term access. A 2 -feet thick concrete bulkhead is proposed for the No. <br />3 Gallery closure. Storke Portal currently has ventilation access to the 600 level of the underground <br />workings. Similarly, upon cessation of mining operations, it would require further work to prevent long- <br />term access. A 2 -feet thick concrete bulkhead is proposed for the Storke Portal closure. Unit rates for the <br />concrete bulkheads have been updated using RS Means 2016 references. <br />The Phillipson Portal will be closed at cessation of mining but since it will be sealed easily with minor use <br />of a bulldozer its cost is considered insignificant. <br />2.20 Mobilize and Demobilize <br />Prior reclamation cost estimates included a minimal total cost for total project equipment mobilization and <br />demobilization. For this cost estimate update, we have assumed annual mobilization and demobilization <br />lump sum costs based on historic Climax reclamation projects for a period of four years. <br />2.21 Buffer Zone <br />The Buffer Zone reclamation is a DRMS-required reclamation cost and remains fixed from the AM -06 <br />value. <br />2.22 Hydrologic Protection <br />Water management and site -wide water treatment will continue at Climax long after the cessation of <br />production operations. The AM -06 reclamation cost estimate for hydrologic protection has been updated <br />using current values for 2013-2016, which are now reflective of a successfully operating downstream <br />water treatment facility, the PDWTP. All previous unit rates have been updated using current data from <br />the 2013-2016 YTD operating period (8/31/16) with lime costs perhaps increasing the most over the AM - <br />06 estimate. An additional line item has been added for Outside Services and the number of Water <br />5 November 2016 (revised August 2018) <br />