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August 23, 2011 C- 1981 - 018 /Deserado Mine ZTT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V =Violation Issued NA Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste N - Topsoil <br />COMMENTS <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18 <br />Pond DP -1 held water but didn't appear to be discharging at the time of the inspection. Embankment appears to be <br />stable with no visible signs of instability. <br />Ponds PP -1 and PP -2 are process water ponds for the wash plant. Both ponds held water with no discharge. <br />Pond RR -1 was dry while Pond RRS -I held minimal water with no discharge. Both pond embankments appear <br />stable. <br />Pond RP -5 held water. Embankments were well vegetated with no signs of instability. <br />Pond RP -1, RP -4 and RP -2/3 were all dry at the time of the inspection. <br />Water Storage Tank, Radio Tower, Rock Dust Tanks and B -Vent Shaft SAE's are constructed with gravel pads for <br />sediment control measures. Each SAE appears well graded with gravel and no major signs of erosion were visible. <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 4 <br />