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This was a routine monitoring inspection for the Climax molybdenum mine, a 112d -3 hard rock mine operated <br />by the Climax Molybdenum Company — a division of Freeport McMoRan. This site is located at the summit of <br />Freemont Pass on Highway 91. DRMS representative for this inspection, Eric Scott, arrived on -site at <br />approximately 1000. DRMS was accompanied by George McDonald of State of Maine Dept of Environmental <br />Protection. Mr. McDonald had requested a tour of the facility for educational purposes, and Climax agreed to <br />accommodate his request. DRMS was guided/accompanied on the inspection by Climax representatives Ray <br />Lazuk and Aaron Hilshorst. <br />The inspection started with a MSHA safety briefing followed by a general discussion of the site and some items <br />of interest pertaining to TR22 which is currently in DRMS review. Approval of TR22 by DRMS is required to <br />satisfy a stipulation of the approval of AMO6 before the existing overburden storage facilities (OSFs) can be <br />enlarged. In the meantime, DRMS has allowed some limited overburden placement between the existing "E" <br />and "F" OSF areas while the TR is in review. Weather during the inspection was clear and warm. The mill was <br />not in operation at the time of the inspection due to issues with the main crusher. <br />There is still a significant amount of construction activity on -site associated with the restart of full -scale mining <br />operations. DRMS observed the locations of additional monitoring wells that will be installed during the 2012 <br />field season. The Division hopes that these wells will be installed soon, so groundwater quality data can begin <br />to be collected.. DRMS personnel again attempted to get a good overview of current and proposed site <br />operations during this inspection. To this end, this inspection included overviews of: the "camp" area including <br />the new mill and supporting facilities, the ongoing open pit cleanup work, the top and bottom of the McNulty <br />waste rock and OSF expansion area, the on -site "landfill" area, the active construction sites for the recently <br />approved new water treatment plant and emergency bypass tunnel, the TSF areas, Robinson Pond, Eagle Park <br />reservoir, and Robinson Lake. <br />Only one minor issue was noted during the inspection that should be corrected - all totes of mill chemicals <br />should be stored on approprate spill containment pallets for immediate use, or in designated contained chemical <br />storage areas. <br />Inspection Contact Address <br />Ray Lazuk <br />Climax Molybdenum Company, Climax Mine <br />Highway 91, Fremont Pass <br />Climax, CO 80429 <br />OBSERVATIONS <br />PERMIT #: M- 1977 -493 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: July 26, 2012 <br />Page 2 of 2 <br />