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OBSERVATIONS <br />This inspection is not confidential. The Notice was approved after Mav 2008 <br />PERMIT #: P- 2008 -059 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: October 12, 2011 <br />This inspection was conducted as part of the normal program established by the Colorado Division of <br />Reclamation, Mining, and Safety (Division) for Notices of Intent (NOI). Energy Fuels Resources is requesting a <br />modification of the Tenderfoot Drilling Project prospecting MD -02. Jess Fulbright Energy Fuels representative <br />accompanied Division inspector Russ Means and BLM Geologist Scott Gerwe on site. <br />The proposed modification to the Notice is to add 15 additional drill holes in the same area of past drilling. All <br />holes with the exception of "H" were well marked. "H" is noted in the modification request as probably not <br />being drilled. <br />The inspector notes that access to all holes is along existing drill roads with exception of N and O. These holes <br />are located at the end of an old drill road that will require some possible earthwork and tree trimming. All <br />trees in the pathway are beetle kill pinions that can be utilized for reclamation when the hole is completed. <br />Holes A, B, appear to possibly need some minor road repairs and C will definitely. <br />The inspector notes that past drill pads and holes have been reclaimed. The vegetation is doing very well. No <br />subsidence of hole closures were noted although not all sites were inspected. There are drill cutting piles at <br />various pads that will need to be hand raked out to blend in with the surrounding terrain prior to any release. <br />It may be in Energy Fuels best interest to address the piles while reclamation is being conducted on the <br />proposed holes. <br />No other issues were noted or observed at this time <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone no. 970 - 241 -1117. <br />Inspection Contact Address <br />Jess Fulbright <br />Energy Fuels Resources <br />PO Box 236 <br />Naturita, CO 81422 <br />cc: Scott Gerwe <br />Bureau of Land Management <br />Grand Junction Office <br />2815 H Road <br />Grand Junction, Colorado 81506 <br />Page 2 of 2 <br />