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ATTACHMENT TO ANNUAL REPORT <br />ST JUDE MINE <br />PERMIT NO. M-1978-039HR <br />OCTOBER 29, 2008 <br />In July 2007, the mine site was occupied, and site maintenance and clean-up was performed. <br />Preliminary mine preparation work has been completed to re-establish utilities to the mine site <br />and to reopen the portal. As of the date of this report, approximately 13,000 tons of ore were <br />produced from the St. Jude Mine and shipped to benison's White Mesa Mill, located near <br />Blanding, Utah. It is anticipated that approximately 24,000 tons of ore will be produced from the <br />St. Jude Mine in the upcoming year. <br />In March of this year, the Division provided notification to Denison Mines that the Carnation <br />Mine is a Designated Mining Operation. Denison has initiated characterization of the waste rock <br />and ore. Potential impacts to groundwater and surface water from exposure of the waste rock is <br />ongoing. In July and September, work plans for waste rock and groundwater analysis were <br />provided and approved by the Division. In August of this year, Denison conducted ore and <br />waste rock characterization sampling at the St Jude. Final analytical results from this evaluation <br />have not been received as of the date of this report. <br />An Environmental Protection Plan will be prepared for the Sunday Mines (inclusive of the St <br />Jude) and provided to the Division in March 2008. This plan will include the results of the <br />material characterization, drainage report, surface water, and partial ground water evaluations. <br />The Designated Mining Operation process requires five quarters of groundwater sampling. <br />Denison anticipates that groundwater samples will be obtained in the fourth quarter of 2008; <br />however, five quarters will not be obtained by the March reporting date. Therefore, groundwater <br />sampling will be ongoing following the reporting process. <br />A Weed Management Plan consistent with the requirements of San Miguel County and the <br />Department of the Interior Bureau of Land Management (BLM) was prepared for the Sunday <br />Mines. Noxious weed control was completed using pesticide for halogen and knapweed. A <br />Pesticide Use Proposal was prepared for the Sunday Mines and has been submitted to the BLM; <br />