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OBSERVATIONS <br />PERMIT #: M- 1977 -342 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 17, 2012 <br />The Henderson Mine, File No. M- 1977 -342 was inspected by Peter Hays with the Division of Reclamation, <br />Mining and Safety (Division) in response to the submittal of Technical Revision No. 17 (TR -17) — Additional <br />Topsoil Stockpile Area. Mr. Tim Haynes with Climax Molybdenum (Climax) was present during the inspection. <br />Climax Molybdenum Company — Henderson Mine (Henderson) submitted the technical revision for the <br />additional topsoil stockpile area on June 28, 2012. The purpose of the technical revision is to locate and <br />construct an additional topsoil stockpile storage location at the Henderson Mine and Mill. The new area is <br />located northeast of the current north topsoil storage area. The new area is needed due to Henderson <br />running out of room to store topsoil in the existing north storage area. <br />The new storage area was observed during the inspection. An access road and slope cut were completed to <br />provide access to the area. Topsoil salvaging was observed during the inspection and storage in the new area <br />is expected to commence soon after the technical revision approval. The area will be included into the <br />stormwater management plan for the site and the stockpiled topsoil will be seeded yearly to prevent erosion. <br />The total expected area is 78.5 acres and will contain 3.5 million cubic yards of topsoil. The technical revision <br />was approved by the Division on July 24, 2012. <br />Photographs taken during the inspection are attached. No problems were noted during the inspection. <br />Inspection Contact Address <br />Mr. Tim Haynes <br />Climax Molybdenum Company <br />19302 County Rd. #3 <br />Parshall, CO 80468 <br />Cc: Tom Kaldenbach, DRMS <br />Page 2 of 3 <br />