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July 10, 2012 C -1982- 056 /Foidel Creek Mine JDM <br />Northern edge of the RDA Expansion underdrain <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and Maintenance4.03.1(5) and <br />(6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />Roads throughout the mine site were dry and stable at the time of the inspection. During the March 2012 <br />inspection, maintenance items were noted due to the heavy truck activity and snowmelt along the 16LT borehole <br />road. The drainage issues have been addressed with all berms repaired and the road adequately graded and stable <br />at the time of the inspection. Minor Revision No. 260 has been approved and will increase the disturbance <br />corridor of the road from 40 feet to 75 feet to allow truck turnouts and additional drainage control. Due to heavy <br />rainfall reported on Friday July 6, 2012 the following mainteance items along the 16LT borehole road were noted. <br />- Roadside ditches along the west side of the road will need to be reestablished to clear sediment build -up along <br />the length of the access road. <br />- Erosion control waddles along the east side of the road will need to be re- installed at the ends due to animal <br />activities. <br />All roads were stable and roadside ditches and culverts inspected were in good condition with the exception of the <br />following: <br />- The culverts along the reclaimed 18RT shaft access road will need to be addressed and cleared of material at the <br />inlets. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The reclaimed Fish Creek Tipple area, 18RT vent shaft area, and the bleeder shaft are stable with no problems <br />noted. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 5 of 8 <br />