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REASON FOR INSPECTION: <br />Normal I &E Program <br />BOND CALCULATION YPE: <br />None 1 <br />BOND AMOUNT: <br />$78,246,088.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Clear <br />IN Cf O R' SI A URE: <br />/j:c <br />SIGNATURE DATE: <br />July 27, 2011 <br />MINE NAME: <br />Climax Mine <br />MINE/PROSPECTING Ir: <br />M -1977 -493 <br />MINERAL: <br />Molybdenum <br />COUNTY: <br />Summit <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Eric C. Scott <br />INSP. DATE: <br />July 22, 2011 <br />INSP. TIME: <br />10:00 <br />OPERATOR: <br />Climax Molybdenum Company <br />OPERATOR REPRESS TATIVE: <br />Ray Lazuk, Brian McGill <br />TYPE OF OPERATION: <br />112d -3 - Designated Mining Operation <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INS1IECTION REPORT <br />PHONE: (303) 866-3567 <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 />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 pot ntial for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to co tain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS Y (FN) FINANCIAL WARRANTY <br />(HB) HYDROLOGIC BALANCE Y (BG) BACKFILL & GRADING <br />(PW) PROCESSING WASTE/TAILING - - -- Y (SF) PROCESSING FACILITIES <br />(MP) GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE <br />(SM) SIGNS AND MARKERS Y (SP) STORM WAT <br />R MGT PLAN - - -- Y <br />(ES) OVERBURDEN/DEV. WASTE Y (SC) EROSION /SEDIMENTATION - -- Y <br />(AT) ACID OR TOXIC MATERIALS Y (OD) OFF -SITE DAMAGE <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem <br />Y (RD) ROADS <br />Y (EX) EXPLOSIVES <br />Y (TS) TOPSOIL <br />Y (RV) REVEGETATION - - -- Y <br />(SB) COMPLETE INSP - - -- Y <br />(RS) RECL PLAN /COMP -- Y <br />Y (ST) STIPULATIONS <br />cited / PV = Possible violation cited <br />Y <br />NA <br />Y <br />Y <br />Page 1 of 2 <br />