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OBSERVATIONS <br />PERMIT #: P- 2011 -015 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: June 1, 2011 <br />This inspection occurred as part of the review process of the NOI application. The Operator was represented <br />by John Ferguson and Steve Fearn. The Division was represented by Peter Hays, Tim Cazier and Wally <br />Erickson. <br />The site appeared consistent with the descriptions provided in the NOI application. Historic mill tailings occur <br />throughout the proposed site. The drill holes will provide geotechnical information which will be utilized to <br />design a new tailings storage site for the Pride of the West Mill, M- 1984 -049. If the geotechnical information <br />proves favorable the Operator intends to incorporate the Kittimac site into the permit area for the Pride of the <br />West Mill through the Amendment process. <br />On June 20, 2011, the Division approved the NOI for the Kittimac Tailings Repository. <br />Inspection Contact Address <br />Stephen Guyer <br />Colorado Goldfields Inc. <br />7986 S. Datura Circle West <br />Littleton, CO 80120 <br />Page 2 of 2 <br />