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OXBOW MINING LLC <br />FOURTH QUARTER 2008 POND INSPECTION REPORT <br />Pond Inspection Date: December 30, 2008 <br />OPERATOR: Oxbow Mining, LLC. <br />MINE: Elk Creek Mine and Surface Facilities <br />POND IDENTIFICATION: Pond Al Pond B Pond C East Yard <br />CDPS NUMBER 009 012 014 010 <br />TYPE OF POND: Sediment Sediment Sediment Sediment <br />APPROXIMATE WATER LEVEL: 1.0'(6037') 2.0' (6062') 1.0' 1.0' <br />Snow snow/ice snow snow <br />SEDIMENT (% total storage): <5% <5% <5% <5% <br />OUTFLOW: None None None None <br />FEATURES PROBLEM PROBLEM PROBLEM PROBLEM <br />EROSIONAL <br />Rills & Gullies No No No No <br />Inadequate Vegetation No No No No <br />Outlet Channel Erosion No No No No <br />Burrows No No No No <br />Other No No No No <br />STRUCTURAL <br />Differential Settling No No No No <br />Cracks or Slides No No No No <br />Seepage No No No No <br />Other No No No No <br />APPURTENANT STRUCTURES <br />Defective Spillways No No No No <br />Dewatering Devices Clogged No No No No <br />Faulty Gates, Etc. No No No No <br />Other No No No No <br />MAINTENANCE REQUIRED No No No Yes <br />REFERENCE DRAWINGS: 2.05-M5A 2.05-M5B 2.05-M5C 2.05-M5E <br />Inspected By: <br />James A. Kiger <br />3737 Hwy 133 • P.O. Box 535 • Somerset, Colorado 81434 USA <br />TEL (970) 929-5122 •2 FAX (970) 929-51 77