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a <br />ENERGY FUELS RESOURCES <br />CORPORATION <br />October 14, 2010 <br />Division of Reclamation Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street; Room 215 <br />Denver, Colorado 80203 <br />Re: Sego Mine Permit M-1977-417; 2010 Annual Report. <br />DRMS: <br />Energy Fuels Resources Corporation (EFR) has recently entered into an agreement with <br />Sutherland Drilling for a mining lease of a group of claims which includes the Sego <br />Mine. EFR has agreed to pay the permit fee for the Sego Mine as part of the lease <br />agreement. <br />Annual Report: <br />Sutherland Drilling did not perform any physical work at the mine site during the past <br />year; therefore, there are no changes to report and the previously submitted maps are still <br />valid. <br />The operator inspected the inactive site in late July, 2010. The berms on the waste rock <br />dump and drainage around the dump were found to be in good condition. <br />At present, due to continuing weak market prices, no new disturbances are expected <br />during the coming year. <br />Contact information remains the same, i.e <br />Energy Fuels Resources Corporation <br />www.eiiergyfLiels.com <br />Sutherland Drilling <br />Bob Sutherland <br />P.O. Box 889 <br />Nucla, Co 81424 <br />970-865-7662 <br />44 Union Blvd., `quite 600 <br />Lakewood, Colorado 80228 <br />Phone: 303-974-2140 <br />Fax: 303-974-2141