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N <br />* 1876 <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />NAUN CUPPI©IM nAL.. <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 />Stanley Mine P-2011-001 Gold Clear Creek <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Pre-operation Inspection Jared L. Ebert; David Bird February 17, 2011 10:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Empress Gold Mining and Milling, Inc. Robert Fabrizio MP - Mineral Prospecting <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None NA <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA None None <br />WEATHER: I PIE 0 ' IG RE: SIGNATURE DATE: <br />Clear March 8, 2011 <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----------------------------------- NA (FN) FINANCIAL WARRANTY-------- NA (RD) ROADS------------------ NA <br />HYDROLOGIC BALANCE------------- NA (BG) BACKFILL & GRADING---------- NA (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- NA (TS) TOPSOIL---------------- NA <br />GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE----------------- NA (RV) REVEGETATION---- NA <br />SIGNS AND MARKERS----------------- NA (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- NA <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- NA (RS) RECL PLAN/COMP-- NA <br />,AT) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE----------------NA (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 />?Ie,AZ, ?,,? Page 1 of 5