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<br />555 17°i Street, Suite 1200 <br />Denver, Colorado 80202 <br />tel: 303-383-2300 <br />fax: 303-308-3003 <br />May 22, 2008 <br />Ms. Christy Woodward, PE <br />Environmental Coordinator <br />Denison Mines (USA) Corp. <br />105017th Street, Suite 950 <br />Denver, CO 80265 <br />Subject: Final Drainage Report for Denison Mines Sunday Mines Group <br />San Miguel County, Colorado <br />Dear Ms. Woodward: <br />CDM Inc. (CDM) is pleased to provide Denison Mines (USA) Corp. (Denison) with this <br />drainage report for the Denison Sunday Mines Group, which includes the Sunday, St. Jude, <br />West Sunday, Carnation and Topaz mines (five mine areas). CDM has prepared this report <br />based on information discussed during our March 17, April 25, and May 15, 2008 project <br />• meetings, and May 13, 2008 site visit, and on general information contained in the Drainage <br />Report for Topaz Mine (Attachment D of the Plan of Operations) dated April 2007. In <br />addition, CDM has developed the report to address the comments (specifically Comment No. <br />16) provided by the U.S. Bureau of Land Management (BLM) on Denison's previous permit <br />submittal for the Sunday Mines complex expansion. <br />If you have any questions or comments regarding this draft report, please feel free to call me <br />at 720-264-1113. We appreciate the opportunity to provide these environmental consulting <br />services and look forward to our continued relationship. <br />Yours very truly, <br />Todd Bragdon, PE <br />Project Manager <br />Attachments <br />cc: M. Eom, CDM Project Engineer <br />J. Accashian, CDM Client Officer <br />[7 <br />641-