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of Coto <br />h <br />11 <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAF T,.9E1V <br />MINERALS PROGRAM INSPECTION REPORT ;,.- <br />PHONE: (303) 866-3567 <br />MAY 31 2011 <br />'x,876 <br />Givfson ct f;eoiamaYion, <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 />Sunda Mine M-1977-285 Uranium and vanadi San Miguel <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Bob Oswald April 20, 2011 09:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Denison Mines (USA) Corp. Christy Woodward 112d-2 - Designated Mining Operation <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None $194,161.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA U.S. LM None <br />WEATHER: IN S SIG URE: SIGNATURE DATE: <br />Cloud May 24, 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 ---------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL-------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE--------------- NA (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS---------------- N (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- NA <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE-------------NA (ST) STIPULATIONS------- NA <br />V = insneeted and found in emmnliance / N = Not insnected / NA = Not annlicable to this oneration / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 5