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ATTACHMENT TO ANNUAL REPORT <br />CARNATION MINE <br />PERMTI' NO. M-1977-416 <br />NOVEMBER 1, 2007 <br />In December of 2006, International Uranium (USA) Corporation (the "Operator") formally <br />changed it's name to Denison Mines (USA) Corp. ("Denison") and succession of operators <br />forms where submitted to the Division of Reclamation, Mining and Safety (the "Division"), on <br />May 21, 2007. In July, the mine site was occupied, and site maintenance and clean-up was <br />performed. Preliminary mine preparation work is underway to re-establish utilities to the mine <br />site and to reopen the portal for mine ventilation. As of the date of this report, the portal has <br />been opened but is only being used For ventilation purposes. No ore has been produced out of <br />the Carnation Mine this year and while a small amount of ore production is possible in the <br />upcoming year, it is unlikely to occur. <br />In September 2007, Denison began concurrent reclamation at the Carnation Mine. Grading has <br />been initiated to blend the west end of the Carnation waste rock area into the Sunday waste rock <br />area. In addition, the metal building at the northern end of the Carnation permit area will be <br />salvaged in late October or early November 2007. At this time the concurrent reclamation is <br />underway and no visible changes to the site can be provided on a map; therefore, an updated map <br />is not included with this annual report. <br />A Weed Management Plan consistent with the requirements of San Miguel County and the <br />Department of the Interior Bureau of Land Management (BLM) was prepared for the Sunday <br />Mines. Noxious weed control was completed using pesticide for halogen and knapweed. Figure <br />1 shows a map of the weeds encountered and the pesticide application areas. <br />In August of 2007, the Division performed a routine inspection and found no deficiencies at the <br />Carnation Mine. No changes occurred in the Permit M-1977-416 area during the past year. <br />Routine site maintenance within the permit area was performed to maintain storm water controls. <br />No new disturbances within the permit area are presently anticipated during the coming year. <br />