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aFENE,eGYFUELS <br />May 24, 2013 <br />Mr. Jamie Blair <br />Bureau of Land Management <br />Tres Rios Public Lands Office <br />29211 Hwy. 184 <br />Dolores, CO, 81323 <br />Mr. Bob Oswald <br />Colorado Department of Natural Resources <br />691 County Road 233, Unit A2 <br />Durango, Colorado 81301 <br />Energy Fuels Resources (USA) Inc. <br />225 Union Blvd. Suite 600 <br />Lakewood, CO, US, 80228 <br />303 - 974 -2140 <br />www.energyfuels.com <br />Re: Sunday Mine Complex Proposed Low Flow Groundwater Sampling <br />Dear Jamie and Bob, <br />0 <br />MAY 7 8 201 <br />DURANGO FIELD OFFICE <br />DIVISION OF RECLAMATION, <br />MINING AND SAFETY <br />We would like to update you on the progress of our recent groundwater monitoring efforts at the Sunday Mine <br />Complex. We completed drilling operations for the MW -SUN3 and MW -TPZ1 monitoring wells. We are <br />compiling initial groundwater sampling data from the MW -SUN 1 and MW -SUN2 monitoring wells that were <br />drilled in the Fall of 2012. Lastly, we are working to determine the most effective ways to sample the <br />monitoring wells in the future. We are proposing to use low -flow sampling methods and equipment for some of <br />these monitoring wells, as discussed on page 2, and we are eager to begin the quarterly monitoring of these <br />wells. Please review the sampling proposal at your earliest convenience and let us know if you have any <br />comments or questions. <br />DRILLING UPDATE <br />Of the 5 groundwater monitoring wells that we planned to drill at the Sunday Complex, the following are <br />complete: <br />• MW -SUN1, a compliance well, was drilled 11/1/2012 <br />• MW -SUN2, an intermediate monitoring well, was drilled 9/25/2012 <br />• MW -SUN3, an ambient monitoring well, was drilled 5/10/2013 <br />• MW -TPZ1, a DRA monitoring well, was drilled 5/14/2013 <br />Table 1 contains an overview of construction and completion information for these wells. Figure 1 shows their <br />locations within the project area and the completed logs for MW -SUNI and MW -SUN2 are included as <br />Attachment A. When logs are complete for MW -SUN3 and MW -TPZI we will send them to you. <br />Sunday Mine Complex I Revision 0 <br />V: "UM iColorado'Sunday Complex Baseline Studtes�Grtmndwaterl Well Sampling PlansiSunday ProposedLa PlowSampling d— May 2013 <br />