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REASON FOR INSPECTION: <br />Priority <br />BOND CALCUL , TION TYPE: <br />None <br />BOND AMOUNT: <br />$10,354,051.00 <br />DATE OF COMPLAINT: <br />NA <br />POST IN J _ TS. <br />None Ar <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Snowing <br />INS' . i 11'IS TURE: <br />/ <br />SIGNATURE DATE: <br />March 6, 2013 <br />MINE NAME: <br />Henderson Mine <br />MINE /PROSPECTING ID #: <br />M- 1977 -342 <br />MINERAL: <br />Molybdenum <br />COUNTY: <br />Clear Creek <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Peter S. Hays <br />INSP. DATE: <br />February 26, 2013 <br />INSP. TIME: <br />09:30 <br />OPERATOR: <br />Climax Molybdenum Company <br />OPERATOR REPRESENTATIVE: <br />Tim Haynes <br />TYPE OF OPERATION: <br />112 - Hard Rock Regular Operation <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and /or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS <br />(HB) HYDROLOGIC BALANCE <br />N (FN) FINANCIAL WARRANTY <br />N (BG) BACKFILL & GRADING- <br />(PW) PROCESSING WASTE/TAILING---- Y (SF) PROCESSING FACILITIES <br />(MP) GENL MINE PLAN COMPLIANCE- N (FW) FISH & WILDLIFE <br />(SM) SIGNS AND MARKERS <br />(ES) OVERBURDEN/DEV. WASTE <br />(AT) ACID OR TOXIC MATERIALS <br />N (RD) ROADS N <br />N (EX) EXPLOSIVES N <br />N (TS) TOPSOIL N <br />N (RV) REVEGETATION N <br />N (SP) STORM WATER MGT PLAN - - -- N (SB) COMPLETE INSP - - -- N <br />N (SC) EROSION /SEDIMENTATION - -- N (RS) RECL PLAN /COMP -- N <br />N (OD) OFF -SITE DAMAGE - - - -Y (ST) STIPULATIONS <br />N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 3 <br />