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F C?O COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />mow== - ? <br />o MINERALS PROGRAM INSPECTION REPORT <br />1876 4L PHONE: (303) 866-3567 <br />* <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <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 />Cross Gold Mine M-1977-410 Gold,co er & silve Boulder <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Michael A. Cunningham November 18, 2010 09:30 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Calais Resources Colorado, Inc. Tom Hendricks 110(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program Complete Bond $15,400.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA None None <br />WEATHER: IN CT 'S S NATURE: SIGNATURE DATE: <br />Clear r December 2, 2010 <br /> <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic-forming, as identified in the permit. <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS------------------ N <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- Y (EX) EXPLOSIVES--------- N <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- N <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- Y (RV) REVEGETATION---- N <br />SIGNS AND MARKERS----------------- Y (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- Y <br />S) OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- N <br />T) ACID OR TOXIC MATERIALS------- NA (OD) OFF-SITE DAMAGE ---------------- Y (ST) STIPULATIONS------- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Pagel of 3