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ATTACHMENT TO ANNUAL REPORT <br />CARNATION MINE <br />PERMIT NO. M-1977-416 <br />November 1, 2010 <br />In July 2007, the mine site was occupied, and site maintenance and clean-up were performed. <br />The Carnation portal was opened for mine ventilation. Presently, the Carnation site is on <br />Temporary Cessation (formally accepted by the Division in 2010), and no ore stockpiles are on <br />site and no mine development rock is being added to existing storage sites. <br />In March of 2008, the Division provided notification to Denison Mines that the Carnation Mine <br />is a Designated Mining Operation. In July of 2009, Denison submitted an Environmental <br />Protection Plan (EPP) for the Carnation Mine as part of the Sunday Mine Complex. In <br />September of 2009, Denison received comments on the EPP from the Division, and Denison <br />addressed these comments and resubmitted the EPP in December of 2009. Additional minor <br />comments were received in February of 2010 and addressed by Denison in March of 2010. <br />Conditional acceptance of the EPP was received from the Division in June of 2010, and a <br />response was submitted accepting the conditions with one minor change requested in August of <br />2010. Denison is waiting on a response from the Division to finalize this DMO/EPP Process. <br />Noxious weed control was completed using a pesticide pre-emergence for halogeten and <br />knapweed. This was observed to have mixed results, and we will continue in the spring of 2011 <br />using the original method of spraying after weeds are visible. Treatments were made along the <br />roads and at the mine sites. <br />All work at the Carnation Mine has been completed in conformance with approved Division <br />Mine Permits and Plans of Operation with the BLM. <br />No changes occurred in the Permit M-1977-416 area during the past year. Routine maintenance <br />was completed on the erosion control structures in September of this year and additional <br />maintenance will occur in November. This routine maintenance will be documented and