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Effluent Limitation Exceedances <br />July 2008 <br />Parameter Limit Type Effluent <br />Limitation Analytical <br />Result <br />Selenium 30-day average 20 24 /L <br />A total of 90,000 gallons of water were treated and discharged in July 2008. This is well <br />below the permitted discharge volume of 930,000 gallons (based on the 0.03 mgd permit <br />limit over 31 days). No mine water discharge occurred in August 2008. <br />One exceedance occurred for selenium of the 30-day average effluent limitation. It <br />should be noted that a duplicate sample collected and analyzed by third parties indicated <br />selenium at 20.4 gg/L, at the effluent limitation. Additional chemical analyses of the raw <br />mine water indicate that the selenium levels in the raw water have recently increased. In <br />addition, this selenium is in the selenate (selenium VI) form which is more difficult to <br />treat. Energy Fuels has been using sodium metabisulfite to reduce the selenate to selenite <br />(selenium IV). Chemical analyses for speciated selenium in both the raw and treated <br />mine water indicate that the sodium metabisulfite treatment has been ineffective. Energy <br />Fuels has been consulting with a mine water treatment specialist (Mark Reinsel, Ph.D., <br />P.E.) to explore additional possible treatment solutions to the selenium levels being <br />observed in the mine water. Currently, bench scale testing with increased dosages of <br />sodium bisulfite is being conducted. <br />Dissolved iron, sulfate, and nitrate levels are being monitored in the discharge samples at <br />the request of WQCD. Dissolved iron in the discharge sample was detected at 0.68 <br />mg/L, sulfate was detected at 109 mg/L, and nitrate was detected at 3.8 mg/L. <br />Please contact me at (303) 974-2151 if you need any additional information. <br />Sincerely, <br />Zach Rogers <br />Cc: Jeff Osborn, Frank Filas, Marty Olson (Energy Fuels) <br />Attachment: July 2008 DMR <br />August 2008 DMR <br />I In ' ' I-eels, Inc. 44 Union Blvd, Srulle 600 <br />?vww.encrgyluels.com Lakewood, Colorado 90229 <br />Phone: 303-974-2140 <br />Fax: 303-974-2141