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RPM, Inc. <br />All drill and auger holes will be plugged with non - combustible material and sealed with grout or <br />neat cement according to DRMS approved methods. <br />At our meeting of December 16, 2011 with the DRMS we discussed the need to provide adit and <br />shaft plug designs and bonding as part of the amendment application currently under review by <br />the DRMS. We provided what ground water data we currently have, discussed the surface water <br />standards we need to meet according to our CDPES discharge permit, and discussed the level of <br />risk to the State and the environment if the design and bond for plugs were delayed to the next <br />permit revision. If Calais were to cease to exist, the current site conditions would continue under <br />the current permit approval. <br />As we stated, Calais Resources Colorado is not adverse to plugs based on further evaluation by <br />the Division. We also stated the present permit amendment under review by the DRMS, once it <br />is approved and bond posted will provide for IMP standard adit and vent closures, not currently <br />bonded for or designs provided for in the existing permit. At the December 16 meeting, it was <br />agreed to allow Calais to provide plug design and bonding under the next permit revision which <br />will include, among other things, underground crushing, milling and paste backfill of the tails. <br />No waste rock or tails will be placed into workings with the approval of the current amendment. <br />6.3.5 Exhibit E — Map <br />18. The Reclamation Plan Map contains labels which show that both of the shafts, the Idaho <br />Tunnel Portal, and the Cross Mine Portal will be "CLOSED ". However, the new Cross Mine <br />Decline Portal does not contain this label. In order to maintain consistency between the <br />Reclamation Plan and the Reclamation Plan Map, Please revise the Reclamation Plan Map to <br />show the Cross Mine Decline Portal will be reclaimed and permanently closed. <br />We have revised the Reclamation Plan Map as requested. However, please note the proposed <br />closures are typical of the Inactive Mines Program closures and are not intended to be <br />"Permanently" closure type structures as a hydraulic plug would typically be. A closure may <br />result from a drop in commodity prices and the mine could close for a period of time. As long as <br />a resource remains, the operation could return if commodity prices allow. <br />6.3.6 Exhibit F — List of Other Permits and Licenses Required: <br />19. Please state whether a permit from Boulder County will be required to install the septic <br />systems and commit to providing the Division with copies of the approval(s). <br />Yes, approvals are required from Boulder County. Calais commits to providing the DRMS with <br />copies of the approvals. <br />RPM. Inc., 9050 Old Tom Morris Cir., Highlands Ranch, CO 80129 Phone: (303) 854 -7499 FAX:(303) 660 -3852 Email: hlhumphries2(aicomcast.net <br />