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~~L DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 6, 2008 <br />Mr. Harold Roberts <br />Executive Vice President (U.S. Operations) <br />~~ Denison Mines (USA) Corporation <br />X1050 Seventeenth Street, Suite 950 <br />Denver, CO 80265 <br />STATE OF COLORADO ~~ <br />~~~ ~dw <br />~~C~O~~ <br />FEB 0 0 2008 <br />Division of Reclamation, <br />Mining and Safety <br /> <br />RE: Notice of Determination of Designation Mining Operation (DMO); <br />DRMS File No. M-1981-021, West Sunday Mine. <br />~ ~ <br />Dear Mr. Roberts, <br />~ ~~m~ <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />SAl ETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Based on a review of operational conditions at the West Sunday Mine, the Colorado <br />Division of Reclamation, Mining & Safety (the Division) has determined, under the <br />criteria specified in Rule 1.1(14) of the MINERAL RULES AND REGULATIONS OF <br />THE COLORADO MINED LAND RECLAMATION BOARD FOR HARD ROCK, <br />METAL AND DESIGNATED MINING OPERATIONS (Regulations), that the West <br />Sunday Mine meets the definition of a Designated Mining Operation (DMO). Under the <br />authority of Rule 7.2.2 of the Regulations, the Division hereby notifies Denison Mines <br />(USA) Corporation (Denison) that the determination has been made, effective on the <br />date of this notice, that the West Sunday Mine is a Designated Mining Operation. <br />The Division's determination is based on the following: <br />The site has the potential to release toxic materials as a result of mining operations. <br />Under Rule 1.1(14) of the Regulations, a site will be assigned DMO status if "toxic or <br />acid-forming materials will be exposed or disturbed as a result of mining operations." <br />The Division is of the opinion that the ore and waste rock that are generated by mining at <br />the West Sunday Mine are toxic materials. <br />The obligations and requirements of a site assigned DMO status are described in Rules <br />6.4, 7, and 8 of the Regulations, a copy of which may be downloaded from the Division's <br />website at: http://minin~.state.co.us/. <br />If Denison agrees with this determination, you are required to notify the Division by mail <br />of your concurrence within 30 days of the date of this notice and proceed to comply with <br />the requirements of Subsections (2) and (3) of Rule 7.2.3 of the Regulations. If Denison <br />disagrees with the Division's determination, you may appeal this notice in writing to thi <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />