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August 29, 2011 <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />NA - Air Resource Protection <br />Y - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />C- 1980- 006/Marr Mine <br />COMMENTS <br />V= Violation Issued NA =Not Applicable <br />R - Roads <br />R - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y - Topsoil <br />RDZ <br />Rob Zuber of DRMS performed this inspection with Elizabeth Shaeffer of OSM. The weather was cloudy and <br />windy at the Loadout and rainy during the inspection of the mine site. The ground was dry at the Loadout and <br />muddy at the mine site. <br />HYDROLOGIC BALANCE - Rule 4.05: <br />The culverts under the road at the mine site were in good condition. Minor erosion was observed at the <br />downstream side of the north set of culverts. Some sediment has accumulated at the downstream end of the south <br />set of culverts. <br />At the loadout, the pond contained water, but no discharge was observed exiting the primary spillway pipe. No <br />compliance issues were identified with the pond. The following areas were inspected: the embankment, both <br />spillways, and the channels below the spillways. <br />The ditch that receives discharge through the primary spillway contained several inches of water. It is believed <br />that this water is from groundwater discharge to the channel as well as local runoff into the ditch, as no discharge <br />from the pond into the ditch was observed. <br />GENERAL MINE PLAN COMPLANCE: <br />The mine was found to be in general compliance with the permit. <br />ROADS — Rule 4.03: <br />No ruts were observed on the access road at the mine site. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 6 <br />