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ORE TRANSPORTATION PLAN <br /> PINON RIDGE MINING LLC <br /> 1.0 Introduction <br /> Pinon Ridge Mining LLC's (PRM's) procedures and methods for shipping uranium ore from a <br /> mine site to an offsite mill are described in this plan. The plan may also be used for shipping to <br /> an off-site ore buying station, should one become available. The plan is based on compliance <br /> with federal, state and local regulations. The primary regulatory authority for ore haulage is the <br /> U.S. Department of Transportation (USDOT). To allow for efficient interstate commerce, the <br /> Colorado Department of Transportation (CDOT), the Utah Department of Transportation <br /> (UDOT) and other adjacent state highway departments have adopted USDOT regulations in their <br /> entirety. USDOT's regulations for transport of radioactive materials are codified in Title 49 of <br /> the Code of Federal Regulations (CFR). The procedures in this plan are designed to meet the <br /> requirements of Title 49 and are to be incorporated into contractual arrangements with the <br /> trucking and milling companies prior to the start of offsite ore shipments. <br /> References to specific sections of CFR title 49 are referenced in this plan by part number only, <br /> e.g., CFR Title 49 Part 173.436 is referenced as (173.436) <br /> 2.0 Ore Characteristics and Shipping Classification <br /> The majority of the ore that will be shipped will average 0.15 to 0.25 percent U30R based on <br /> gamma readings (typically expressed as eU30g). This is equivalent to a uranium activity level of <br /> approximately 1.4 x 10 Curies/gram (Ci/g). Although this represents a relatively low <br /> radioactivity level, it is above USDOT's exemption level for uranium of 2.7 x 10" Ci/g for <br /> natural uranium (173.436). Accordingly, uranium ore is regulated as a Class 7 radioactive <br /> material under the hazardous material regulations (173.403). Uranium ores and concentrates of <br /> uranium ore are classified as Low Specific Activity (LSA), Group - 1 material. Because of their <br /> low specific activity, ore shipments are generally exempt from most of the packaging, marking, <br /> labeling, and placarding requirements of other Class 7 radioactive materials. <br /> In addition to uranium ore, LSA-1 material may also include other low-toxicity alpha emitters <br /> that may be shipped from the mine to the mill such as: <br /> 1) Precipitated residues from a water treatment plant <br /> 2) Soils and rubble contaminated by uranium <br /> 3) Loaded ion exchange resins from water treatment facilities(not proposed at this time) <br /> Materials 1 and 2 can be loaded and shipped in the same manner as uranium ore. Some <br /> additional restrictions apply to ion exchange resins that should be incorporated into the plan if <br /> resin columns are installed at a mine site for water treatment purposes. <br /> 13 <br />