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(Page 4) MINE ID # OR PROSPECTING ID # M-1981-276 INSPECTION DATE 07/13/2006 INSPECTOR'S INITIALS DEG The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMSIPOSSIBLE VIOLATIONS AND CORRECTION DATE 1. Improper storage and containment of fuels and oils was found on site. ~~~ PB or PV: PB CORRECTIVE ACTION: TOPIC(S): AT All storage tanks. petroleum and hazardous materials on site for any period of time shall have secondary containment. Please supply photo documentation that the fuel tank and 5-gallon containers are stored in a proper secondary containment structure on or before September 1. 2006. This secondary containment structure shall include a berm that contains all contents of the tank and various containers (when full) plus 10%. and an impermeable liner. Or provide photo documentation that the containers have been removed from the site on or before September 1.2006. 2. '/The Oneratnr has posted $34.000 of the current hond amount of $34 500 PB or PV: PB CORRECTIVE ACTION: TOPIC(S): FN The Operator must post the remaining $500 of the bond within 60 days of the receig_t of this inspection _ report. 3. ~ A range of debris on the mine site -tires, rusted metal, and an old port-o-let must be removed per C.R.S. 34-32.5-116(4)(e) which states that "all refuse shall be disposed of in a manner that 1II ~/ Anna controls unsightliness or the deleterious effects of such refuse." PB or PV: PB CORRECTIVE ACTION: TOPIC(S): RS This material must be removed and2hotogranhic evidence of compliance must be received b~he Division on or before October 2. 2006.