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dENISON~II <br />MINES <br />NOTE RETURN RECEIPT REQUESTED. <br />May 7, 2007 <br />Mr. Mike Rozycki, Planning Director <br />San Miguel County Board of County Commissioners <br />333 W. Colorado Avenue, 3`d Floor <br />Telluride, Colorado 81435 <br />(970) 728.3083 <br />Mike Rozycki: <br />Denison Mines (USA) Corp. <br />106017th Street, Suite 960 <br />Denver, CO 60266 <br />USA <br />Tel :303 628.7796 <br />Fax :303 389-4126 <br />www.den isonm ines.eom <br />Re: Notice of Permit Amendment for the Sunday Mine, located in Sections 19, 23, and 24, Townshia 44 <br />North, Ranee 18 West, New Mexico Principal Meridian, San Miguel County, Colorado. <br />This letter serves as notice [hat Denison Mines (USA) Corp. will submit an amendment for [he existing Hard <br />Rock/Metal Mining Regular (112) 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 (112) 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 a[ [he <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 area to 60.0 acres. Notices of future disturbances will be provided to San Miguel County prior to any <br />