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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />July 6, 2010 <br />Mr. Richard Blubaugh <br />Powertech (USA) Inc. <br />5575 DTC Parkway, Suite 140 <br />Greenwood Village, CO 80111 <br />RE: Authorization to Commence Prospecting, Centennial Uranium Project, <br />Modification MD-04, File No. P-2008-043 <br />Dear Mr. Blubaugh: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has reviewed Modification MD-04 <br />to Notice of Intent to Conduct Prospecting (NOI) P-2008-043, and has determined it is complete. DRMS <br />has further determined that the $122,400.00 Financial Warranty held by DRMS for this NOI is sufficient <br />to cover reclamation costs for the activities described in MD-04, as well as the remaining reclamation <br />required under the terms of the NOI. Adjustment to the amount of required Financial Warranty for this <br />NOI is pending, and will be processed under Surety Reduction Revision SR-02 submitted by Powertech <br />to DRMS March 24, 2010. Powertech may proceed with the activities described in MD-04 and related <br />submittals in conformance with the Colorado Mined Land Reclamation Act and the Mineral Rules and <br />Regulations of the Colorado Mined Land Reclamation Board. Powertech is specifically directed to the <br />requirements of Rule 5.3.6., <br />This authorization to proceed does not allow ground water storage, underground injection, or mobilization <br />of substantial infrastructure to the pump test site, other than what is described in MD-04. As a condition <br />to this authorization to proceed, Powertech is required to notify DRMS at least five working days prior to <br />commencement of the aquifer pump test so that inspection of the activities can be scheduled. If you have <br />any questions, please contact me at 303-866-3567 ext. 8143. <br />Sin erely, <br />V Allen C. Sorenson <br />Reclamation Specialist <br />cc: Michael Beshore, Powertech, via email <br />c:\acs files\My Documents 4-19-06 thru\centennial authorization to proceed P2008043 MD-04.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango ArtivP and Inartivv Minac