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REASON FOR INSPECTION: <br />Normal I &E Program <br />BOND CALCULATION TYPE: <br />Partial Bond <br />BOND AMOUNT: <br />$60,534.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Cloudy rr• t pa J r IA <br />IJ'TSPECJO.I'S IGNATURE: <br />tL ie& :44, ,, - <br />SIGNATURE DATE: <br />January 19, 2012 <br />MINE NAME: <br />Sunnyside Gold Mine <br />MINE/PROSPECTING ID #: <br />M- 1977 -378 <br />MINERAL: <br />Pb, Zn, Cu, Au, Ag <br />COUNTY: <br />San Juan <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Wallace H. Erickson <br />INSP. DATE: <br />July 22, 2011 <br />INSP. TIME: <br />10:00 <br />OPERATOR: <br />Sunnyside Gold Corp <br />OPERATOR REPRESENTATIVE: <br />Larry Perino <br />TYPE OF OPERATION: <br />112 - Hard Rock Regular Operation <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 />JAN L <br />2 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 violki itiVvVf i ing the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulatibiii arado 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 NA (FN) FINANCIAL WARRANTY------ Y (RD) ROADS------------- Y <br />(HB) HYDROLOGIC BALANCE <br />(PW) PROCESSING WASTE/TAILING— NA <br />(MP) GENL MINE PLAN COMPLIANCE- Y <br />Y (BG) BACKFILL & GRADING - - - -- Y (EX) EXPLOSIVES- ---- -- NA <br />(SF) PROCESSING FACILITIES - - - -- NA (TS) TOPSOIL <br />Y <br />(FW) FISH & WILDLIFE------ - - - - -- NA (RV) REVEGETATION -- Y <br />(SM) SIGNS AND MARKERS------------- N (SP) STORM WATER MGT PLAN - -- NA (SB) COMPLETE INSP - -- Y <br />(ES) OVERBURDEN/DEV. WASTE <br />(AT) ACID OR TOXIC MATERIALS <br />N (SC) EROSION /SEDIMENTATION -- Y (RS) RECL PLAN /COMP -- Y <br />Y (OD) OFF -SITE DAMAGE ----- -- - - -Y (ST) STIPULATIONS <br />N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />L 5 _ <br />Page 1 of 4 <br />