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ENERGY FUELS CORPORATION <br />335 Inverness Drive South, Suite 200 2145 Resort Drive, <br />Englc~~•ood, Colorado 80112 P.O. Box 773457 <br />Steamboat Springs, <br />Telephone (303) 925-0781 <br />Facsimile (303} 904-4989 <br />Rich ~. Munson <br />11 June 2002 <br />Linda Satuiders <br />3431 ~ Forest Park <br />Elizabeth. Colorado 80107 <br />Re: Southfield Mine <br />Dear Linda: <br />Suite 204 <br />Colorado 80477 <br />Telephone (970) 879-7310 <br />Facsimile (970) 879-1307 <br />Executive Vice President <br />This letter follows my brief telephone conversation with Bob concerning the "lab <br />building" at the Southfield Mine property. My call was prompted by your voice mail inquiring <br />about use of that building. <br />Per our prior communications. Energy Fuels agreed to apply to the State of Colorado for <br />permission to leave in place (i) the road from the refuse pile to the mine site/county road and (ii) <br />the lab building. We have had our consulting engineering firm file the necessary documents with <br />the State of Colorado and «'e expect to receive the required approvals. Energy Fuels had offered <br />to pa;~ the costs associated with that change to our reclamation plan and we have done so. <br />accordingly; neither the road nor the building will be removed by us. <br />We are continuing to use the lab building for storage of equipment and other supplies that <br />~~~e are using? for ongoing work and monitoring at the site. Additionally, the lab building serves as <br />otcr "mine site office" during reclamation. We expect to use the lab building for the next three to <br />ti~~e years since, as you kno~~~, we are required to continue monitoring the reclamation we have <br />done. <br />At the point in time that eve have satisfied the requirements of our reclamation plan and <br />no fonder have to continue routine monitoring, etc., it is our intention that the lab building will be <br />~~acated b~~ us and turned over to the property owners, which we understand to be K2T; LLC <br />