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dENISON~II <br />MINES <br />NOTE RETURN RECEIPT REQUESTED. <br />April 13, 2007 <br />Mr. Mike Rozycki, Planning <br />San Miguel County Board of County Commissioners <br />333 W. Colorado Avenue, 3rd Floor <br />Telluride, Colorado 81435 <br />(970) 728.3083 <br />Mike Rozycki: <br />Re: <br />County. Colorado. <br />Denison Mlnes (USA) Corp. <br />105017th Street, Suite 950 <br />Denver, CO 80265 <br />USA <br />Tel :303 628.7796 <br />Fax :303 3844125 <br />www.den isonmines.eom <br />Enclosed is the submittal of a conversion of the existing Hard Rock/Metal Mining Regular (110) Operation <br />Reclamation Permit to the Colorado Department of Reclamation, Mining, and Safety (DAMS) For the Topaz <br />Mine located in San Miguel County, Colorado (legal description above) to a Hard Rock/Metal Mining (112) <br />Operation Reclamation Permit. Denison Mines (USA) Corp. submitted this amendment application to the <br />DAMS for the Topaz Mine on May 18, 2007. <br />The existing Sunday Mine Reclamation (112) Permit, submitted to the DAMS on September 30, 1977 includes <br />20 acres of surface disturbance. An amendment to the application, submitted and approved by DAMS 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 DAMS 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 />