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i ENERGY FUELS RESOURCES <br />CORPORATION <br />September 4, 2008 <br />Attn: Ms. Kelly Morgan <br />Colorado Department of Health <br />Water Quality Control Division <br />4300 Cherry Creek Drive South <br />Denver, CO 80246-1530 <br />RE: Preliminary Toxicity Investigation 60-day Status Report <br />Dear Ms. Morgan: <br />Energy Fuels Resources Corporation (Energy Fuels) would like to provide this 60-day status <br />report to the Preliminary Toxicity Investigation (PTI) currently taking place at the Whirlwind <br />Mine Treatment Plant. The PTI was prompted by a failure of the Whole Effluent Toxicity <br />(WET) test collected during a routine quarterly discharge sampling event collected on June <br />24-26, 2008. Notification of this test result and our intentions to conduct the PTI were sent to <br />your office in a letter dated July 22, 2008 and a 30-day status report was sent on August 4, <br />2008. Discharge from this treatment plant is permitted under CDPS Discharge Permit #CO- <br />0047562. <br />The PTI is designed to proceed in a four-step process as follows: <br />1) Determine cause of low DO and high COD levels by bench scale and chemical testing <br />2) Make necessary adjustments to treatment process <br />3) Determine effectiveness of adjustments with chemical testing <br />4) Confirm resolution of cause with WET test <br />Testing <br />Energy Fuels has conducted several bench scale tests involving raw mine water, treated mine <br />water, and treatment chemicals currently being used in the treatment process and suspected to <br />cause low dissolved oxygen (DO) levels. Dissolved oxygen levels were measured <br />periodically to monitor the effects of the treatment chemicals in these tests. <br />The bench scale chemical tests were run on each individual treatment chemical at the <br />concentration they were added during the treatment process. These chemical tests are listed <br />below with a brief summary of the results: <br />Energy Fuels, Inc. 44 Union Blvd., `suite 600 <br />?s?nGV. rr rgyiiaels.ec>?'n Lakewood, Colorado 80228 <br />Phone: 30;-9'74-2140 <br />Fax: 303-474-2141