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eFENERGYFUELS <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 />the next couple of weeks. A ground survey will also be completed at MW -SUN3 and MW -TPZI in the near <br />future; the mapped locations and surface elevations provided here are approximate. <br />GROUNDWATER SAMPLING RESULTS <br />Groundwater samples were collected at MW -SUN I and MW -SUN2 when they were developed. Attachment B <br />contains the laboratory results from these samples. The Sample IDs referred to as Sunday 65 and Sunday #2 65 <br />are duplicates used to verify the laboratory results for Sunday 1 and Sunday #2 respectively. We have not yet <br />had a chance to review the results but hope to get to that soon. We will provide with you with more information <br />when we have had a chance to look at them further. <br />PROPOSED QUARTERLY GROUNDWATER SAMPLING SOLUTION <br />When we drilled the pilot hole, located at MW -SUN3 and later drilled MW -SUN 1 and MW -SUN2, we made <br />you aware of the unusual flow and water level conditions in those holes in a memo dated October 18, 2012 and <br />titled Interim Summary Report, Sunday Mine Area Monitor Well Project. Just for reference, that memo is <br />included as Attachment C. <br />Table 1 contains an overview of the water level information in these wells. As a result of the depth of these <br />wells, the large volume of water standing in them, and the very low inflow rate, we are evaluating low -flow <br />sampling methods for use in MW-SUN I, MW -SUN2 and possibly MW -SUN3. MW -TPZI is a shallow hole <br />and contained no water when it was drilled. As a result, if it contains water during quarterly sampling events, it <br />will be sampled in standard fashion using a hand - bailer. <br />While low -flow sampling is not widely used, it is applied in similar such circumstances in Colorado. <br />Specifically, Edgar Ethington at CDPHE approved the use of low -flow sampling equipment and methods at <br />Energy Fuels' Pinon Ridge Mill site in 2007. He can be contacted at 303 - 692 -3438, <br />edganethington@state.co.us. <br />Assorted low -flow sampling equipment is available and we have worked with our groundwater consultant, <br />Bruce Smith at Western Water & Land, and internal environmental field staff to narrow down the options to a <br />preferred line of sampling equipment. We propose to use the Blatypus Pump system produced by BEEST Inc. <br />Attachment D contains a brochure for this equipment and Table 1 includes configuration for its use in these <br />wells. We propose to install permanent pumps in the wells at about 100 feet below the static water level with <br />drop tubes that will extend to the middle of the wells' screen interval. A single, high - pressure regulator and <br />control unit will be used by field staff to operate all of the wells. This combination of permanent, down -hole <br />and mobile surface equipment will reduce the amount of decontamination need prior to sampling and keep <br />overall equipment costs down. Situating the drop tube at the center of the screen interval will allow us to draw <br />water directly from the Salt Wash formation shortly after pumping begins, without having to purge 3 complete <br />well volumes (over 500 gallons in the case of MW- SUN1). We will collect groundwater samples once we have <br />sufficiently purged stagnant water from the inside of the casing and sand pack and measured consistent <br />parameters. <br />Sunday Mine Complex 2 Revision I <br />VI WColoradolSmday Comple Saseline SndieslGro dwaerXellSampling PI= DrillingUpdateMemolSunday _ProposedlawFio Sampling_Rl.docx June 2013 <br />