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Pernut Date: October 17, 2005 Permit No.: M-2004A78 The following additional stipulations and conditions form an integral part of the foregoing permit: Stipulation No. Description Prior to exposure of groundwater or any pit de-watering, or installation of the underground recharge wells, the applicant will obtain approval from the Division of Minerals and Geology of a water quality monitoring and mitigation plan in the form of a revision to the permit. A copy of the revision shall be forwarded to the objecting party (Georgia Landrus) when submitted to the Division of Minerals and Geology. The water quality monitoring plan must include a plan for collection of baseline or ambient water quality samples, specify the water quality parameters to be monitored, specify a point of compliance, specify the frequency of monitoring and reporting to the Division, and specify a mitigation plan in the event of an exceedence of a water quality parameter. Prior to discharge of mine water into existing ditches, the applicant will obtain approval from the Division of Minerals and Geology for a ditch stabilization and erosion control plan in the form of a revision to the permit. In order to maintain phased bonding for the clay liner, the following permit conditions must be followed; • The applicant shall not mine Pond 2 below the groundwater table until Pond 1 is reclaimed to two feet above the groundwater level. The applicant must begin construction of the slope liner no later than after two phases have been completely mined to bedrock. . The maximum linear feet of slope that maybe disturbed and not reclaimed at any given time shall be no greater than 6,000 lineal feet. Prior to construction of the compacted clay liner, the applicant shall submit a revision to the permit with detailed information on construction of the compacted clay liner and submit a quality control and assurance plan for the Division's review and approval. A copy of the revision shall be forwarded to the Colorado Department of Transportation (CDOT) when submitted to the Division of Minerals and Geology. . The applicant shall submit and obtain approval from the Division of construction reports on clay-lined slopes that have been completed in order to initiate the next 6,000 lineal feet of mining. • Final release of the clay liner must be obtained from the Office of the State Engineer in order for the Division to release any remaining reclamation bond. 4 The applicant will construct perimeter berms, as shown on the mining and reclamation plans, at the beginning of each respective mining phase. The berms shall be seeded with the specified seed mix in the fall or the spring. The applicant shall install imgation, trees