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ENERGY FUELS RESOURCES <br />CORPORATION <br />Interim Summary Report <br />Sunday Mine Area Monitor Well Project <br />October 18, 2012 <br />Introduction <br />40 Td P A- <br />nnt��, <br />Yr- 0io -oss H <br />The following is a brief description of the first three wells drilled at the Sunday Mine Monitor <br />Well Project. Energy Fuels Resources (EFR) is presenting this information to agency personnel in <br />advanced of a planned telephone conference scheduled to be at 2:00pm October 19, 2012. The <br />wells drilled so far have failed to encounter the expected amount of groundwater in the <br />sandstone horizon that hosts the uranium deposits and mine workings. The purpose of the <br />conference call is to begin discussions concerning a possible modification to the original plan in <br />light of the small amount of groundwater discovered by the holes drilled to date. <br />Enclosed with the summary is a topographic map showing the well locations, a geologic map <br />with the well locations, and a cross section drawn through the three drill holes. <br />The first two holes drilled (West Ambient and West Intermediate) have not yet been completed <br />as wells since they were essentially dry. The third hole, even though also appearing to produce <br />very little, if any, groundwater from the target strata is currently being reamed -out so that <br />casing can be set and the well can be completed. <br />MW West Ambient <br />The pilot hole of the ambient monitor well located updip of the West Sunday underground mine <br />workings was completed on September 20th, 2012. The hole was completed through the 3`d rim <br />sandstone of the Salt Wash Member of the Morrison Formation, which is the mining horizon of <br />the Sunday Complex. The sandstone unit is approximately 80 feet thick (490 to 570 feet from <br />surface) and includes a few small mudstone and siltstone lenses. The hole deviated 40 feet to <br />the northeast and is approximately 150 feet from the mine workings at depth. The bedding in <br />the area is dipping 9 degrees south - southwest toward Disappointment Valley. <br />A small amount of water was intercepted in the Brushy Basin Member of Morrison Formation at <br />170 feet from surface and produced approximately % gallon per minute. The 3`d rim sandstone <br />of the Salt Wash appeared to be dry or nearly dry in the area. The amount of returned water <br />yto <br />Z KK <br />