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September 11, 2012 C- 2010- 089/New Horizon North Mine JLE <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Applicable <br />R - Air Resource Protection N - Roads <br />N - Availability of Records N - Reclamation Success <br />NA - Backfill & Grading N - Revegetation <br />NA - Excess Spoil and Dev. Waste N - Subsidence <br />N -Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />N - Hydrologic Balance Y - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />NA - Processing Waste R - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon North Mine; DRMS File No. C- 2010 -089 operated by Western <br />Fuels Colorado, LLC. I, Jared Ebert of the Colorado Division of Reclamation, Mining and Safety conducted the <br />inspection. Mr. Ross Gubka of Western Fules accompatmied me on the inspection. The weather was partly <br />cloudy and warm. <br />TOPSOIL — Rule 4.06, Removal 4.06.2, Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; <br />Redistribution 4.06.4: <br />During the inspection, three scrapers and a dozer were stripping topsoil at the southwest corner of the site where <br />Pond 1 will be located. The topsoil was actively being removed at the time of the inspection and transported to the <br />storage area on the southeast portion of the site. <br />GENERAL MINE PLAN COMPLANCE: <br />The Operator is following the initial sequence of the operation by constructing Pond 1 prior to other site activities. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />A water tank and truck were on site conducting dust mitigation during the topsoil stripping efforts for the Pond 1 <br />area. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 3 <br />