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of corn COL ISION OF RECLAMATION, MINING, AND SAFETY <br />mow= ' - - <br />??? 0 INERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />* 1876 Division of Reclamation, Gj W' <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 />Blue Bird Exploration Project P-2008-015 Uranium Montrose <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Surety Release Inspection G. Russell Means May 19, 2011 10:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Midasco Uranium LLC Mike Thompson MP - Mineral Prospecting <br />REASON FOR INSPECTION: <br />Surety Release Requested BOND CALCULATION TYPE: <br />IT.Bondcalculationtype.CD.Desc BOND AMOUNT: <br />$3,095.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA None U.S.BLM <br />WEATHER: INSPECT IS S NATURE: SIGNATURE DATE: <br />Raining May 31, 2011 <br /> <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No <br />problems or possible violations were noted during the inspection. The mine operation was found to be in full compliance with <br />Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials <br />and/or for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify <br />the office of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such <br />condition or of any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or <br />property or to the environment; or any environmental protection facility designed to contain or control chemicals or waste <br />which are acid or toxic-forming, as identified in the permit. <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- N (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- Y (EX) EXPLOSIVES--------- N <br />PROCESSING WASTE/TAILING--- N (SF) PROCESSING FACILITIES------- N (TS) TOPSOIL---------------- Y <br />GENL MINE PLAN COMPLIANCE- N (FW) FISH & WILDLIFE----------------- N (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS----------------- N (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- N (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- Y <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE ---------------- N (ST) STIPULATIONS------- N <br />Y =Inspected and found in compliance/ N= Not inspected/ NA= Not applicable to this operation/ iris = rromem cneu i rv = ross?oie viotauon cueu <br />Page 1 of 2