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of corn COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />y i MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />x 1876 <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 />MINE NAME: <br />MINE /PROSPECTING ID #: <br />MINERAL: <br />COUNTY: <br />Scott Blue II <br />M- 2007 -031 <br />Gold and unknown c <br />Teller <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Timothy A. Cazier <br />September 26, 2012 <br />12:50 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Turquoise Connection, Inc. <br />Foster Scott <br />1 110(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Other Agency Request <br />None <br />$6,352.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />U.S.BLM <br />U.S.BLM <br />WEATHER: <br />INSP 'S $IIGNATURE: <br />SIGNATURE DATE: <br />Cloudy <br />May 30, 2013 <br />The following inspection topics were identified as havinE Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Backfilling & Grading <br />PROBLEM /POSSIBLE VIOLATION: Problem: The access road highwall to the active pit area is nearly vertical and <br />showing signs of erosion (also a previously cited problem). <br />CORRECTIVE ACTIONS: Flatten the access road highwalls to 11-1:1V or flatter by 7/30/2013 and provide <br />photographic documentation that this has been accomplished by the 7/30/13. <br />CORRECTIVE ACTION DUE DATE: 7/30/13 <br />Page 1 of 5 <br />