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August 22, 2012 C- 1980 - 005 /Seneca II Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />R - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1. 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10, Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Established ditches #1, #2, 43, 44, 45, SIIPM -8, SIIPM -13 and SIIPM -13A were stable with no evidence of major <br />damage or problems noted, with the exception of the following: <br />- SIIPM -8 was damaged due to substantial storm events in August 2011. Repair work has been completed and no <br />problems were observed in the aerial inspection of the site. <br />OTHER (SPECIFY): <br />This was an aerial inspection flown by Harry Ranney of the Colorado Division of Reclamation, Mining and Safety <br />(Division). Oblique aerial photographs were taken on August 22, 2012 and reviewed in the Denver office by <br />Jason Musick of the Division on August 28, 2012. The weather was clear with no active mining activities being <br />conducted at the time of the inspection. <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 />The South Road, Road C and South Road B appeared stable at the time of the inspection. No damage or <br />identifiable problems were noted. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The Seneca II site appears stable with no identifiable erosion or movement throughout the mine site. The site <br />displays what appears to be good vegetation cover throughout, with only smaller areas of sparse vegetation at the <br />north end of the site. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 4 <br />