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Pitch Reclamation Project Colorado Mined Land Reclamation Board — 2012 Annual Reclamation Report EXECUTIVE SUMMARY Homestake Mining Company of California (Homestake) operated the Pitch Uranium mine in Saguache County, Colorado from 1979 until 1984. The mine extracted uranium ore and trucked it to their mill in Grants, New Mexico. In 1984, operation was suspended and the mine was placed in a care and maintenance status. Incremental reclamation and revegetation of mine site disturbances were performed throughout the period of 1985 to 1993. In 1993, Homestake initiated the process of permanently closing the mine. Since 1993, closure and reclamation activities have included pit wall grade -down and partial backfilling of the North Pit to reduce pit wall movement, the contouring and revegetation of the approximately 230 acres of disturbed area, construction of a plug in the Pinnacle adit to reduce seepage and improve water quality, monitoring of slope stability in the North and South pits; monitoring of the phreatic surface in the Indian and Tie Camp waste rock dumps, construction of surface water controls, and the dismantling and removal of the Radium Treatment Plant (RTP) as well as associated foundation materials and soils that were placed in the Tie Camp Creek Disposal Cell. During 2012, Homestake maintained the remaining mine facilities and fulfilled permit and license related compliance programs which included the following activities: • Monitored water quality discharged at the point of compliance (POC), SW -33, and submitted monthly discharge monitoring reports to the Water Quality Control Division of the Colorado Department of Public Health and Environment (CDPHE) per the requirements of the Colorado Discharge Permit System (CDPS) permit #CO- 0022756 renewal effective January 1, 2010; • Continued activities under the conditions of the Radioactive Materials License (RML) issued by the Colorado Department of Health and Environment — Hazardous Materials & Waste Management Division (Permit #150 -01, Amendment 14); • Continued improvements in the drainage, stabilization, and reclamation in the constructed wetlands area (near location of the former Radium Treatment Plant); • Erosion and drainage repairs on the northwest side of the Indian Creek rock dump above the clay and low -grade ore stockpiles; • Monitoring the continued effectiveness of 2011 grading of tension cracks on the east wall of the South Pit and in the slump area of the South Pit to eliminate pooling of water; • Grading on the top three benches and slope face of the Tie Camp Creek rock dump to reduce sedimentation on the benches and movement of storm water and snow melt off the benches, and reduce erosion on the dump slope; • Monitoring the 2010 ad 2011 repair work on the Tie Camp Creek Disposal Cell for erosion and drainage control; • Constructed drainage channel between the 10,800 and 10,600 benches on the east wall of the North Pit; • Geotechnical monitoring of pit wall slopes on the south and east walls of the North Pit, the east wall of the South Pit and the Indian Creek and Tie Camp Creek waste rock dumps; • Monitoring of tension cracks above the east wall of the North Pit; Pitch 2012 Reclamation Report 04- 16- 13.Doc ES -1