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of o_? COLORADO DIVISION OF RECLAMATION, MINING AND SAFE <br />New fig, MINERALS PROGRAM INSPECTION REPORIPV05 ` <br />* PHONE: (303) 866-3567 vjg <br /> <br />87 <br />vi fol. ?0;Qgtit'd1. <br />?aflty <br />The Division of Reclamation, Mining and Safety has conducted an inspection of t e 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 />Carnation Mine M-1977-416 Uranium and vanadi San Miguel <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Bob Oswald Aril 20, 2011 10:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Denison Mines (USA) Corp. Christy Woodward 110d - Designated Limited Impact <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None $33,409.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA U.S.BLM None <br />WEATHER: (0 S SIGNA <br />INS SIGNATURE DATE: <br />Clear L May 25, 2011 <br />K v <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------- NA (TS) TOPSOIL-------------- NA <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE--------------- NA (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS--------------- Y (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- NA <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 = lnanected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4