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May 1, 2007 MINREC, Inc. C/o Jim Stover & Associates P.O. Box 60340 Grand Junction, CO 81506 North Thompson Creek Mine, DBMS Permit C-81-025 Phase III Bond Release Inspection April 17, 2007 Participants: Tom Kaldenbach, Colorado Division of Reclamation, Mining, and Safety (DBMS) Byron Walker, DBMS Jim Stover & Stan Muhr, representing the permittee Rose Ann Sullivan & Warren Rider, Pitkin County Chad 12udow, Roaring Fork Conservancy Henry Austin, Office of Surface Mining (OSM) DBMS conducted the bond release inspection required at Colorado Rule 3.03.2 (2) on April 17, 2007. Inspection participants are shown above, with Mr. Kaldenbach leading the inspection. The Bureau of Land Management (BLM), and the United States Forest Service (USFS), were notified of the inspection and elected not to participate. The USFS (Olivia Garcia) attended a partial DBMS inspection here on April 12, 2007. I notified the BLM (Bruce Fowler) of the inspection findings via phone call on April 18, 2007; and I forwarded the DBMS inspection report for this inspection to Mr. Fowler on April 30, 2007. Prior to the inspection, I reviewed the N. Thompson Creek mine records at the Garfield County Courthouse in Glenwood Springs, CO, that included the 10/25/2006 Phase III bond release application and the 2005 Annual Hydrology Report. When I arrived at the mine, we met at the developed water resource area and I identified myself to the participants. We began the inspection with Mr. Kaldenbach orienting the inspection participants in the requirements of a phase III bond release inspection, and describing the azeas of the mine subject to inspection, both verbally and on the approved permit maps. This included the surface lands overlying azeas of coal extraction, and USFS lands are included in this category. Mr. Kaldenbach indicated we would not inspect the overlying areas during this inspection, and that he would schedule another date to inspect those areas. That inspection will most likely occur in June after a DBMS fly over of the area to obtain aerial photos to assist with the inspection. Mr. Kaldenbach invited the inspection participants to attend the June inspection also. Other areas subject to this inspection included the developed water resource area where we met, two reclaimed flumes in N, Thompson Creek, two reclaimed flumes in Middle Thompson Creek, and the Mine No. 3 water discharge system including the manhole access, discharge pipes from Mine No. 3 down to the long pond, and discharge pipe under the roadway that discharges downslope into North Thompson Creek.