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PERMIT #: P-2008-015 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: May 19, 2011 <br />OBSERVATIONS <br />This inspection is confidential The Notice was approved prior to May 2008• no revisions or changes were filed which <br />would lifted the confidentiality clause. <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining, and Safety for monitoring of Notices of Intent (NOI). Midasco Uranium is requesting the release of <br />the Blue Bird prospecting notice. Mike Thompson, Midasco's representative accompanied BLM representative Scott <br />Gerwe and Division inspector Russ Means on site. <br />A review of the file notes seven holes were drilled under the Notice. Midasco has provided the drill hole permanent <br />abandonment reports for the seven holes as required by Rule 5.7 (1). The annual fees are current as required for a final <br />release request. <br />The inspector, BLM, and operator inspected all seven drill pad areas. Weather was wet and rainy which required access <br />be done by foot as roads were too muddy and slick. <br />Photo documentation attached to this report notes that all seven holes were reclaimed in a typical manor. All pits were <br />backfilled, cutting were either replaced back in the hole or buried in the pit, holes sealed, and the entire area re- <br />vegetated. Due to the large area covered by the project vegetation was evaluated by assessing natural cover <br />immediately adjacent to the drill pad. In all cases cheat grass was substantially established off site so it was not <br />considered as a factor in the evaluations. Vegetative cover noted included blue grama and wheat grasses, rabbit brush, <br />and globe mallow. Other native vegetation was also observed in varying diversity and density throughout the project <br />disturbances. All seven pads had vegetation equal to or better than the immediate surrounding areas. <br />No road erosion, sedimentation, or stormwater issues were observed. No exploration related debris or trash is noted. <br />Overall, the sites are reclaimed to meet the requirements and standards as approved. <br />Inspection Contact Address <br />Mike Thompson <br />Midasco Uranium LLC <br />18050 Road G <br />Cortez, CO 81321 <br />CC: Scott Gerwe, BLM Grand Junction Resource Office <br />Page 2 of 2