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REASON FOR INSPECTION: <br />Normal I &e Program <br />BOND CALCULATION TYPE: <br />Complete Bond <br />BOND AMOUNT: <br />$92,132.58 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Clear <br />INSPECTOR'S SIGNATURE: <br />SIGNATURE DATE: <br />December 2, 2011 <br />MINE NAME: <br />Hansen Uranium Project <br />MINE /PROSPECTING ID #: <br />P- 2009 -025 <br />MINERAL: <br />Uranium <br />COUNTY: <br />Fremont <br />INSPECTION TYPE: <br />Mineral Prospect Inspection <br />INSP F�C."COR(S): <br />BerhanYAffelew,Tim Cazier & Tom kaled <br />INSP. DATE: <br />October 20, 2011 <br />INSP. TIME: <br />10:00 <br />OPERATOR: <br />Black Range Minerals <br />OPERATOR REPRESENTATIVE: <br />Ben Vallerine <br />TYPE OF OPERATION: <br />MP - Mineral Prospecting <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION 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 />AgN1 CQOM1U EL !i Lr A , <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 potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain 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 - - -- NA (SF) PROCESSING FACILITIES <br />(MP) GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE <br />Y (RD) ROADS NA <br />Y (EX) EXPLOSIVES NA <br />NA (TS) TOPSOIL Y <br />Y (RV) REVEGETATION NA <br />(SM) SIGNS AND MARKERS NA (SP) STORM WATER MGT PLAN - - -- NA (SB) COMPLETE INSP - - -- NA <br />(ES) OVERBURDEN/DEV. WASTE NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />(AT) ACID OR TOXIC MATERIALS <br />NA (OD) OFF -SITE DAMAGE <br />NA (ST) STIPULATIONS <br />Y <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4 <br />