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PERMIT #: M-1977-307 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: July 28, 2010 <br />OBSERVATIONS <br />This inspection was conducted as part of the Colorado Division of Reclamation, Mining, and Safety normal monitoring <br />program. The CM-25 Mine is a 110d permitted uranium located west of the Uravan Mill Site on Colorado Highway 141 <br />in Montrose County. Glen Williams, mine supervisor for Cotter Corporation, the permitee accompanied the inspector on <br />site. <br />The CM-25 Mine is a fully reclaimed mine site under the Department of Energy's Lease Tract Program. The mine was <br />reclaimed due to economic reasons and not ore reserve depletion. Should favorable market conditions evolve Cotter <br />could reactivate the mine once an approved Environmental Protection Plan amendment is approved. <br />The mine identification sign and affected area boundary markers are not in place. Because the site is fully reclaimed it is <br />more desirable not to have them in place. <br />The old CM-25 portal is totally reclaimed with the portal sealed and backfilled and waste piles re-vegetated. No evidence <br />of portal closure subsidence or reopening is noted. Vegetation diversity and density are very good. Saltbush, rabbit <br />brush, Indian ricegrass, slender wheatgrass, and many volunteer species are noted. <br />No erosion, sedimentation, or stormwater issues were observed. <br />No noxious or problematic weeds were observed. No debris or trash is noted around the site. <br />This site currently meets all DRMS reclamation requirements. <br />The bond was recalculated on this site in 2003. DOE currently holds a $4,000.00 bond and DRMS a cursory $100.00 <br />bond. Based on total reclamation success the amounts held cover the reclamation liability. <br />No issues or problems are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />Inspection Contact Address <br />Glen Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, Colorado 81424 <br />Page 2 of 4