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August 16, 2012 C- 1981 - 018 /Deserado Mine ZTT <br />compacted in a way that directs all surface runoff to perimeter ditches before finally reaching one of three ponds <br />related with the refuse piles. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />Refuse Pile 1 remains stable and well vegetated. No signs of erosion along the slopes are present. <br />SIGNS AND MARKERS — Rule 4.02: <br />Mine identification signs are found along the intersections of Count Road 65 and Deserado Mine permit boundary, <br />County Road 65 and County Road 75, and County Road 65 and Highway 64. All mine ID signs have all the <br />required compliance information. <br />Topsoil and subsoil piles are clearly marked with signs delineating each pile as such. <br />TOPSOIL — Rule 4.06 <br />Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; Redistribution 4.06.4: <br />Topsoil and Subsoil Piles south of the refuse piles were well vegetated and stable. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 4 of 4 <br />