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January 4,2013 C-1981-008/New Horizon Mine MLT Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable N -Air Resource Protection R - Roads N -Availability of Records N - Reclamation Success R -Backfill& Grading N - Revegetation NA - Excess Spoil and Dev. Waste NA - Subsidence N - Explosives NA - Slides and Other Damage N - Fish & Wildlife N - Support Facilities On-site R -Hydrologic Balance N - Signs and Markers R - Gen. Compliance With Mine Plan NA - Support Facilities Not On-site N - Other R - Special Categories Of Mining NA - Processing Waste R - Topsoil COMMENTS The Divsion conducted an aerial inspection of the New Horizon Mine on Friday, January 4, 2013. Photos were taken by Harry Ranney, of the Division, and were subsequently analyzed by Marcia Talvitie, also of the Division. Based on the shadows, skies were likely clear at the time the photos were taken. Photographs show mainly those portions of the permit area located to the west of 2700 Road, which are owned by Morgan, WFC, and Benson. Active mining and reclamation operations are presently confined to these areas. Lands surrounding the permit aea were covered with snow. Within the mine, snow covered all areas except those where mine equipment has been recently active. BACKFILL and GRADING—Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.141(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: • A stockpile of Bench 1 Overburden has been developed on the WFC property, east of the active pit. An additional stockpile of the material ("OB 1") still remains on the Morgan property, for use in reclamation there. • On the Morgan property, backfilling and grading operations have been completed everywhere except for a small area of pit that is still open, immediately south of Pond 011. Due to the snow cover, I was unable to distinguish between those areas that had been backfilled solely with Bench 2 material and those areas where Bench 1 Surface Spoil had been distributed. The graded surface is extremely smooth, and the various stockpiles appear as islands on a frozen lake. • Bench 2 Overburden excavated from the WFC pit was being hauled to the Morgan pit and dumped for use as backfill. Number of Partial Inspection this Fiscal Year: 7 Number of Complete Inspections this Fiscal Year: 2 Page 2 of 6