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(Page 3) MINE ID # OR PROSPECTING ID # M-1978-091 UG INSPECTION DATE 6/8/07 INSPECTOR'S INITIALS RCO.AJW The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during fhis 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. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS CORRECTION DATE There is acidic water flowing from an unknown source, out of the mine dump, and down 8/31/07 the gulch. The source is not known, and there is no plan for controlling or treating this PB or PV: PB water. TOPIC(S): AT HB,_, CORRECTIVE ACTION: The operator must propose a plan for determining the source and quality of the water, and if appropriate, to include practices for controlling or treating the water, or to avoid contamination through contact with onsite mineralization. This proposal must include a tentative commitment to undertake the proper activities in the context of a technical revision to the permit. This document must be received at this office by the date shown at right. 2. None. PB or PV: CORRECTIVE ACTION: NA TOPIC(S): 3. None. PB or PV: CORRECTIVE ACTION: NA TOPIC(S): 4. None. PB or PV: CORRECTIVE ACTION: NA TOPIC(S): 5. None. PB or PV: CORRECTIVE ACTION: NA TOPIC(S): CERTIFICATE OF SERVICE I, Bob Oswald, certify that I mailed a true and complete copy of the forgoing document (inspection report) tp the persons designated herein to receive copies, by mailing it with the US Postal Service, on the signature date shown below. I (signature) ~ ~~ (date)