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DENISON MINES (USA) CORP <br />2010 ANNUAL REPORT <br />Topaz Mine Permit M-1980-055 HR <br />Operations are currently on Temporary Cessation at the Topaz Mine. <br /> <br />An Amendment to a Plan of Operations (POO) was submitted to the San Juan Field Office of the <br />Bureau of Land Management (BLM) on April 6`h, 2007 to incorporate operations at the Topaz <br />Mine with the existing POOs for the Sunday, St. Jude, Carnation (covered under the Sunday <br />POO), and West Sunday POO. The Environmental Assessment has been through public <br />comment, and the BLM approved the Plan and issued a Finding of No Significant Impact <br />(FONSI) in January 20, 2009 (FONSI) and January 30, 2009 (Decision Record). A request for <br />BLM State Director Review and a Request for a Stay was submitted by the Sheep Mountain <br />Alliance, Colorado Environmental Coalition, Information Network for Responsible Mining and <br />the Center for Biological Diversity on March 2, 2009. The BLM State Director remanded this <br />decision back to the Dolores Public Lands Office and granted the stay on September 17, 2009. <br />Denison was officially notified on October 1, 2009 by the State BLM Office and notified <br />formally by the Dolores Public Lands Office on November 9, 2009. Denison had several <br />meetings and conference calls with the BLM in 2010 to discuss the remand and is currently <br />preparing a proposed plan to meet the State Director's remand requests. <br />Updated site maps were provided with the Denison application to convert the Topaz Permit from <br />a 110 to a 112, and again in the DMO application submitted to the Division of Reclamation, <br />Mining and Safety (DRMS) in June 2009. No additional permit map updates are provided at this <br />time. Denison temporarily suspended operations at the Topaz Mine on July 31, 2009. <br />In 2010, no ore was produced from the Topaz Mine. No concurrent reclamation activities have <br />taken place at the Topaz Mine in 2010 and no stormwater improvements were required based on <br />stormwater inspections at the site. <br />A Weed Management Plan consistent with the requirements of San Miguel County and the BLM <br />was prepared for the Sunday Mines. Noxious weed control was conducted using pesticide for <br />halogeten and knapweed. Figures provided in the 2008 Annual Report show areas where <br />`h `h <br />pesticides are applied at the Sunday Mines. Pesticides were applied in 2010 on May 16, 17, <br />