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4$ ENERGY FUELS RESOURCES <br />CORPORATION <br />September 3, 2008 <br />Colorado Department of Health <br />Water Quality Control Division <br />WQCD-P-B2 <br />4300 Cherry Creek Drive South <br />Denver, CO 80246-1530 <br />RE: Submittal of July 2008 and August 2008 Discharge Monitoring Reports and <br />Notification of Non-Compliance <br />To Whom It May Concern: <br />Energy Fuels Resources Corporation (Energy Fuels) is providing the attached Discharge <br />Monitoring Report (DMR) for the month of July 2008. This DMR is late due to a delay <br />in receiving analytical results from the contract laboratory, Energy Labs. Energy Labs <br />ran behind schedule due to an unusually high number of samples received in August. <br />Energy Fuels notified Ms. Kelly Morgan at the Water Quality Control Division, on <br />August 26, 2008 explaining the situation. Ms. Morgan informed Energy Fuels that we <br />could submit the DMR late for the above reason. In addition to the July 2008 DMR, the <br />August 2008 DMR has been included with this submittal as there was "no discharge" in <br />August. <br />The Whirlwind Mine water treatment plant located at 30100 5/10 Road, Gateway, <br />Colorado 81522. Discharge of treated water from the Whirlwind Mine is allowed in <br />accordance with Colorado Discharge Permit System (CDPS) permit number CO- <br />0047562. In addition, this letter serves as a written notification of non-compliance as <br />required in Part II.A.4 of the permit. <br />The Whirlwind Mine workings were dewatered as of January 28, 2008. Currently, mine <br />water is collecting in the mine at a slow rate (approximately 2 to 3 gpm) and is being <br />pumped into the untreated water tank daily and treated in batch runs, as necessary. One <br />batch run occurred from July 28 to 31, 2008. A monthly discharge sample was collected <br />on July 29, 2008 in accordance with the aforementioned permit. Analytical sample <br />results indicate that one exceedance of the effluent limitations occurred during the Jul y <br />2008 batch run discharge as follows: <br />F,ner?y Duels, Inc. 44 Union Blvd, Suite 600 <br />www.energyfuels.com Lakewood. € olorado 80228 <br />Phone: :303-97 -2140 <br />Fay: 303-174-2141