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Groundwater in the wells recharges very slowly, which is a result of the relatively low permeability of the Salt <br />Wash Member of the Morrison Formation. Therefore, it was not possible to fully develop the wells during the <br />week of December 15. The wells are currently planned to be developed in early January 2009; however, higher <br />than anticipated radon levels in the vicinity of the wells has prevented access to the wells at this time. Denison <br />is working on providing additional ventilation to this area so that well sampling will be accomplished. <br />Other Discussion Items: <br />The BLM received public comments on the Environmental Assessment for the Topaz Mine expansion and is <br />working on addressing these comments now. We expect that we will have approval to conduct exploration <br />drilling by February 2009. As discussed in the meeting, we will need to modify our previously submitted <br />Notice of Intent for Exploration to change the drill hole locations. A better understanding of the depth of <br />groundwater beneath the development rock areas is needed for the DMO assessment and this understanding will <br />be augmented by records review and this exploration drilling. Without BLM approval we cannot complete this <br />drilling and weather for drilling must be appropriate. I point this out here only as a potential snag to our timing <br />on the Environmental Protection Plan. <br />Request for Clarification: <br />Based on the fact that our initial DMO notification was received by Denison on February 8, 2008 and Denison's <br />responded on March 7 requesting one year for EPP submittal, it is unclear to Denison when the EPP will be due <br />to the Division and if an extension to the plan submittal based on available and appropriate data would be <br />allowed. Denison would like to request clarification from the Division on this due date for the Environmental <br />Protection Plan. <br />This letter serves as a summary of work completed and in progress to address the DMO designation and <br />explanations of delays that have been experienced in collecting and analyzing data. A schedule is included that <br />outlines our progress and estimated completion date. In the event that our estimated completion date is not <br />consistent with the date requested above for the EPP submittal, a formal request for an extension will be <br />submitted. <br />Thank you and please feel free to contact me directly with questions or concerns 303.389.4136. <br />Yours very truly, <br />DENISON MINES (USA) CORP. <br />e-4 t5 " --.o/ <br />Christy Woodward, PE <br />Environmental Coordinator <br />Cc: Terry Wetz, Denison Mines (USA) Corp. <br />Phil Buck, Denison Mines (USA) Corp. <br />Enclosure. <br />A A <br />0ENISOND J -' <br />MINES <br />4