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Golder Associates Inc. <br />44 Union Boulevard, Suite 300 <br />Lakewood. CO USA 80228 <br />Telephone (303) 980-0540 <br />Fax (303) 985-2080 <br />• <br /> <br />January 11, 2008 <br />Energy Fuels Resources Corp. <br />44 Union Blvd., Suite 600 <br />Lakewood, Colorado 80228 <br />Attention: Mr. Frank Filas P.E. Environmental Manager <br />Goldex <br />?ciaWs <br />Our Ref.: 073-81745 <br />RE: ENGINEERED LINER DESIGN FOR THE ORE STOCKPILE PAD, WHIRLWIND <br />MINE, COLORADO <br />Dear Frank: <br />Golder Associates Inc. (Golder) has prepared this letter report in support of permitting efforts for the <br />Whirlwind Mine located in Mesa County, Colorado, on behalf of Energy Fuels Resources <br />Corporation (EFRC). This report presents engineered liner design recommendations for the 0.5-acre <br />ore stockpile pad at the project. <br />BACKGROUND <br />The State of Colorado Division of Reclamation, Mining, & Safety (DRMS) is requiring that EFRC <br />provide an engineered liner system design for the on-site uranium ore stockpile pad at the Whirlwind <br />Mine. The ore stockpile pad was originally designed to be constructed of compacted run-of-mine <br />(ROM) waste rock that would be excavated and placed back in the mine at the time of mine closure. <br />With the addition of an engineered liner, the DRMS has agreed to allow ore stockpiling on site for <br />more than six months. The Whirlwind Mine and other EFRC mine properties are relatively small and <br />remote sites; therefore, Golder is proposing a simple, straightforward design that can be constructed <br />using common construction and mine equipment. The design is intended to be generic so that it may <br />be used at other similar sites with only minor site-specific modifications. <br />The Whirlwind Project is proposed to include a 0.5-acre ore stockpile pad. The ore materials <br />anticipated for storage at the Whirlwind Project are non-acid generating, with ore derived from the <br />Salt Wash Unit of the Morrison Formation. The ore stockpile will be constructed near the mine portal <br />and will be accessed via loaders and trucks on a consistent basis. One or more stockpiles will be <br />placed on the pad to a maximum height of 30 feet. The proposed location of the ore stockpile pad is <br />illustrated in Figure 1. The ore stockpile pad will be surrounded by berms on all sides to provide <br />drainage isolation, with the base of the pad sloped to the northwest toward a concrete sump which <br />overflows into a water treatment tank. <br />OFFICES ACROSS AFRICA, ASIA, AUSTRALIA, EUROPE, NORTH AMERICA AND SOUTH AMERICA