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PERMIT #: M -1983 -141 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: December 4, 2012 <br />As noted above, the Operator is not required to submit past Annual Water Monitoring Reports. The Operator <br />has recommenced the water sampling program and the first round of samples have been sent to the <br />laboratory for analysis; the results of the analysis have not yet been submitted to the Division. <br />The final corrective action to be completed is the submittal of a discharge permit or written proof that the <br />application process for the discharge permit has commenced. The Operator informed the Division that the <br />process has commenced; the Operator will need to provide evidence of this on or before January 29, 2013. <br />The third level adit was visited during the inspection. The adit was discharging water at a rate of 5 -10 gpm. The <br />water was reporting to the infiltration pond on top of the waste rock dump; the Division did not observe any <br />water discharging from the base of the waste rock dump. <br />The Operator should be aware that the site is considered to be inactive pursuant to Rule 1.13.2. Currently <br />there is no mine development, there is no sale or processing or movement of stockpiled material, and <br />personnel are only engaged in maintenance activities. If the operation remains inactive for 180 consecutive <br />days or more, the site will need to be placed into temporary cessation pursuant to Rule 1.13.5. The Division <br />considers the initial date of cessation to be on October 2, 2012, the date the Reclamation Permit was <br />transferred to Gold Hill Mines, Inc. Therefore, if the operation remains inactive through April 1, 2013, then the <br />Operator must file a Notice of Temporary Cessation with the Division. <br />This concluded the inspection. <br />Page 3 of 4 <br />