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oF..coto? COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />yea o MINERALS PROGRAM INSPECTION REPORT <br />* PHONE: (303) 866-3567 <br />K 1876 + <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 />Henderson Mine M-1977-342 Molybdenum Clear Creek <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Peter S. Hays March 24, 2011 08:30 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Climax Molybdenum Company Bryce Romig 112 - Hard Rock Regular Operation <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None $10,354,051.00 1 <br />DATE OF COMPLAINT: 1N. CONT TS: <br />POST JOINT INSP. AGENCY: <br />NA 7 <br />None None <br />WEATHER: INS T R' SIGNATURE: SIGNATURE DATE: <br />Clear March 28, 2011 <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------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- NA (EX) EXPLOSIVES--------- Y <br />PROCESSING WASTE/TAILING---- Y (SF) PROCESSING FACILITIES------- Y (TS) T.OPSOIL---------------- N <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- NA (RV) REVEGETATION---- NA <br />SIGNS AND MARKERS----------------- Y (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- Y (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- NA <br />AT) ACID OR TOXIC MATERIALS------- NA (OD) OFF-SITE DAMAGE ---------------- Y (ST) STIPULATIONS------- NA <br />V = Tnenrrted and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 2