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• Construction of the temporary clay storage pad will commence next week (week of 7 <br />November), weather permitting. Once completed, the existing tailings material will be moved <br />onto the pad for temporary storage, and; <br />• Personnel will be on -site throughout the winter performing activities inside the mill building in <br />preparation for mill start -up. <br />UMC plans to commence the construction of the TSF as soon as possible. We anticipate an early (April <br />2012) start -up given a mild winter, or later as weather and ground conditions warrant. UMC will contact <br />the Division in March to present and discuss our start -up plans. A detailed construction schedule will be <br />provided to the Division once we determine when, in fact, weather and ground conditions permit our <br />contractor to mobilize. <br />Permitting Activities <br />UMC is also commencing work to support the DMO permit application. We request a meeting with you <br />and your staff to discuss permit requirements and to develop a path forward to submitting the required <br />documentation. Per our telephone conversation yesterday, it was suggested that we could meet during the <br />- - week - of - 14 t November. UMC is available entire week, and suggests we meet on Wednesday 16 <br />November at the Division Office. We can be available on the 16` at a time convenient for you and your <br />team. <br />In the meantime, any questions you may have will receive immediate attention. Please do not hesitate to <br />contact me at 303 - 947 -3499 or email nmichael @unionmilling.com or Mike Elder at 303 - 638 -2573, <br />melder @unionmilling.com. if we can be of assistance. <br />Nick Michael <br />Manager <br />Union Milling Company, LLC <br />M1990 -057 November 4, 2011 <br />