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August 7, 2012 C- 1980- 007/West Elk Mine JRS <br />- Drill Pads 15- 01 /15 -01a, 15 -02, 15 -03, 15 -03.5 and their associated light -use roads were all accessed via the <br />Long Draw road. All of these pads were well vegetated and stable and no erosional problems were noted at the <br />time of the inspection. There were no weeds or bare spots noted on any of these pads. These pads all appeared to <br />meet the Phase II criteria on the ground. <br />- The roads from 16 -04 to 17 -02 and 17 -03 were also accessed from the Long Draw Road. These roads were well <br />vegetated and stable and no erosional problems were noted at the time of the inspection. There were no weeds or <br />bare spots noted on either of these roads. These roads all appeared to meet the Phase 1I criteria on the ground. <br />- Drill pad 15 -09 was viewed from the Old Road. The pad was well vegetated and stable and no erosional <br />problems were noted. The road appears to meet the Phase II Bond Release criteria on the ground. <br />DOCUMENTS RECEIVED: None <br />This concludes the 7 August 2012 SL- 03 /SL -04 follow -up inspection report for the West Elk Mine. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 4 of 15 <br />