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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-2007-044 <br />INSPECTION DATE: 5-20-08 <br />INSPECTOR'S INITIALS GRM <br />Underground Inspection: <br />The underground work is still focused on rehabbing the main access drift. Steel sets run the first 3000 feet or so and <br />then are bald head from there. At the end of the steel sets is the approximate proposed location of the bulk head <br />approved for final reclamation. Current observations note very competent rock with no visible seams or fractures. <br />The primary source of water in the mine is located just below this area. Observations and discussion support about <br />2.5 gallons per minute. <br />Work crews were working on shotcreteing the main sump area for the mine. Standing water in the low point of the <br />decline was approximately 12 to 16 inches and around 15 feet in length. Other than some minor weeping of water <br />from a few spots no other water was noted. Visual inspections into areas not yet part of the rehab work note no <br />standing water or other issues. Current underground conditions observed appear to support permit application data <br />that groundwater will be minimally impacted. <br />Overall the site appears to be in compliance with the conditions approved under the NOI and Reclamation Permit. <br />No issues or problems were noted. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: Dick White <br />OPERATOR: Energy Fuels <br />STREET: P.O. Box 888 <br />CITY/STATE/ZIP: Nucla, CO 81424 <br />cc: <br />? CE <br />X BLM - Grand Junction <br />? FS <br />? HW <br />? HMWMD (CH) <br />? WQCD (CH) <br />? OTHER