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OF CCOLORADO DIVISION OF RECLAMATION, MINING, AND SAFETY <br />h MINERALS PROGRAM INSPECTION REPORT FOCOAM <br />' PHONE: (303) 866-3567 <br />**1876** AUG 022010 <br />Division . of R.- d SeWFAWIT7 <br />atY <br />The Division of Reclamation, Mining, and Safety has conducted an inspection of the min?°?%peratlon <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />SM-18 Mine M-1978-116 Uranium and vanadi Montrose <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring G. Russell Means July 28, 2010 09:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Cotter Corporation I I2d-1 -Designated Mining Operation <br />REASON FOR INSPECTION: <br />Normal I&E Program BOND CALCULATION TYPE: <br />Complete Bond BOND AMOUNT: <br />$100.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br /> None None <br />WEATHER: INSPECTO IS SI TURE: SIGNATURE DATE: <br />Clear u y 29, 2010 <br />. %__-s <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No <br />problems or possible violations were noted during the inspection. The mine operation was found to be in full compliance with <br />Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials <br />and/or for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify <br />the office of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such <br />condition or of any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or <br />property or to the environment; or any environmental protection facility designed to contain or control chemicals or waste <br />which are acid or toxic-forming, as identified in the permit. <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- N (EX) EXPLOSIVES--------- N <br />PROCESSING WASTE/TAILING--- N (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- N (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS----------------- Y (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- N (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- Y <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE ---------------- Y (ST) STIPULATIONS------- N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 9