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OBSERVATIONS <br />PERMIT #: M -1977 -311 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: September 14, 2011 <br />This inspection is part of the normal inspection schedule for Designated Mining Operations by the Colorado Division of <br />Reclamation, Mining, and Safety (Division). The SR -13A is a 110d permit, just north of Slick Rock,,Colorado. Glen <br />Williams, Cotter's representative, accompanied the inspector on site. <br />The SR -13A is a fully reclaimed mine site. The mine identification sign and affected area boundary markers OPeatiOtuse <br />are not considered an issue. <br />The access road into the site is reclaimed across non - permitted, historic mining areas into the permitted area. No <br />erosion or sedimentation issues are noted. Revegetation is primarily four winged salt bush, rabbit brush, and some <br />native grasses. <br />The waste piles were sloped at 2:1 or better. The entire site has been pocked which has resulted in micro - environments <br />for vegetation and is very good for sedimentation and erosion control. The slopes are noted as being very stable with <br />only minor riling in a few spots. Revegetation of the slopes is equal to or better than the surrounding area. Density and <br />diversity of vegetation is very good. Four winged and rabbit brushes are doing very well with native grasses and minor <br />shrubs filling in. <br />Most of the access portals have been backfilled and are not identifiable. The lone exposed portal has a secured steel <br />gate that meets Division specifications. <br />Overall the site is releasable. The Division is recommending to Cotter that it seek release of the permit based on several <br />factors. First the site meets the reclamation standards presently in place. Pending Environmental Protect Plans (EPP) <br />for all permitted uranium sites might create unnecessary additional permitting requirements and costs. Secondly, the <br />permit is out of date and would require an entire permit update not just an EPP. A new permit later if reopening was <br />feasible would be up to date and meet current standards. Finally, the Division is reviewing the intermittent status issue <br />for all mining permits. It is probable that a shift in the status of this permit could create conditions where Cotter will <br />have to either reactivate the mine or seek release anyway. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970 - 241 -1117. <br />Inspection Contact Address <br />Glen Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />Page 2 of 2 <br />