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<br />Mr. Rich A. Munson <br />Energy Fuels Corporation <br />385 Inverness Drive South, Suite 200 <br />Englewood, CO 80112 <br />Dear Rich: <br />Re: Southfield Mine Visit <br />C-IQ~~--O~'~ <br />g L ~. <br />January 2, 2000 <br />On December 27, 2000, I visited the Southfield mine for the purpose of ascertaining the condition <br />of the entries and the final working faces in their shutdown mode. The last day of production from <br />Southfield was December 14, and the mine is to be placed on anon-producing status at least for the <br />neaz term. <br />I toured underground in company with Dave Krebs, consultant to one of the lessors of a property <br />known commonly as the Vento tract, and we were taken to the Pine Gulch #4 headings by George <br />Patterson, Al Weaver, and Gary Carroll. <br />My observation was that the entries from the portal to the Pine Gulch #4 faces were in reasonable <br />condition. We traveled in diesel-driven personnel vehicles along a portion of the Main entries, then <br />along the #1 South Mains to reach the Pine Gulch Submain. To this point the workings are all <br />located on Vento property (leased premises) and all were serviceable. We then continued along the <br />submains and went to the final faces at the Pine Gulch #4 panel. Figure 1 shows the location of Pine <br />Gulch #4 and the termination of mining. <br />These panel faces were stopped at a point where the coal seam started to exhibit a downward roll, <br />approximately two crosscuts north of the northernmost submain return entry. Roof bolting had been <br />performed to the face in all entries, with all openings fully rock dusted. The ground appeazed to be <br />in excellent condition with no evidence that the coal pillars were subjected to undue stress. All <br />mining equipment had been moved two crosscuts back from the face and pazked for the duration. <br />We observed the bolter, continuous miner, a shuttle caz, and power center at this point. Good <br />housekeeping was in evidence as there was no sign of miscellaneous supplies, tools, or other non- <br />essential items lying around the ribs. The working azea is completely dry and appears to be an <br />excellent site for temporary equipment storage. <br />Following the trip underground, Al Weaver took Dave Krebs and me to the coal refuse pile situated <br />principally on Vento surface. Approximately 1.3 acres has been utilized for waste disposal since the <br />settlement agreement with the Vento family members eazlier this yeaz. Even though mining has <br />handy A. Stinnett <br />FGM Consulting Group, Inc. <br />Golden, CO 80402 <br />303 986-6950 <br />9~E~EiVED <br />JAN 2 ~ Z003 <br />Giurw~~ of ~r~inera~s and Geology <br />-1- <br />