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dENISON~~I <br />MINES <br />NOTE CERTIFIED RETURN RECEIP`T` REQUESTED. <br />May 7, 2007 <br />Mr. Jim Boyd <br />San Miguel Basin Conservation District <br />40835 Colorado State Hwy 145 <br />Norwood, CO 81423 <br />Jim Boyd: <br />Denison Mines (USA) Corp. <br />105017th Street, Suite 950 <br />Denver, CO 80265 <br />USA <br />Tel :303 628-7798 <br />Fax :303 389-4125 <br />www.denisonmi nes.com <br />Re: Notice of Permit Amendment for the Sunday Mine, located in Sections 19, 23, and 24, Township 44 <br />North, Rance 18 West, New Mexico Principal Meridian, San Miguel County. Colorado. <br />This letter serves as notice that Denison Mines (USA) Corp. will submit an amendment for the existing Hard <br />Rock/Metal Mining Regular (I 12) Operation Reclamation Permit to the Colorado Department of Reclamation, <br />Mining, and Safety (DRMS) for the Sunday Mine located in San Miguel County, Colorado (legal description <br />above). <br />The existing Sunday Mine Reclamation (I 12) Permit, submitted to the DRMS on September 30, 1977 includes <br />20 acres of surface disturbance. An amendment to the application, submitted and approved by DRMS on May <br />23, 1983, includes an additional 20 acres of surface disturbance. This total of 40 acres encompasses the entire <br />existing surface disturbance at the Sunday Mine. A notice of intent to resume operations at the Sunday Mine <br />was submitted to the DRMS on July 13, 2006. This new activity requires the addition of five vent holes, for <br />which approximately 3.90 acres of new disturbance will be created. Based on the existing disturbance at the <br />Sunday Mine Complex (40 acres) and the permitted disturbed area (40 acres), the additional surface disturbance <br />for the new vent holes will require a permit amendment. <br />New vent holes (in addition to the five currently proposed) will be required throughout operations at the mine <br />site; therefore, an additional 16.1 acres is requested for disturbed area at this time. This will raise the total <br />permitted disturbed area to 60.0 acres. The permit amendment application with changes for the five proposed <br />vent holes is enclosed (without attachments). <br />