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No discharge from the water treatment plant occurred in August 2008. <br />Preliminary Toxicity Investigation <br />A preliminary toxicity investigation (PTI) was initiated by Energy Fuels per the <br />conditions of the CDPS permit due to a WET test exceedance during the June 2008 <br />discharge event. Please see the attached PTI 60-day status report, dated September 4. <br />The bench scale testing and monitoring during the June 2008 discharge event indicated <br />that the high chemical oxygen demand and low dissolved oxygen levels in the June <br />discharge that led to the WET test failure was an isolated event. A confirmation WET <br />test was conducted during the September 2 to 5, 2008 discharge event. Preliminary <br />indications are that the confirmation WET test passed. <br />Please feel free to contact me at (303) 974-2151 or at (303) 916-8541 if you need any <br />additional information. <br />Sincerely, <br />Zach Rogers <br />Cc: Jeff Osborn, Frank Filas, Marry Olson (Energy Fuels) <br />Attachment: September 3, 2008 Non-Compliance Letter including the July 2008 and <br />August 2008 DMR's <br />Discharge Sampling Analytical Data (1 sample) <br />Third Party Analytical Data (1 sample) <br />September 4, 2008 60-day PTI Status Report Letter <br />Frierly Vu; ls, Inc. 44 Union Blvd, Suite 600 <br />wvaw.energyfluels.com Lakewood, Colorado 80228 <br />Phone: 303-974-2 1 ,40 <br />Fax: 303-974-2141