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COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />h� $ MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />/876 <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 />Henderson Mine <br />M -1977 -342 <br />Molybdenum <br />Clear Creek <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Peter S. Hays <br />June 20, 2013 <br />09:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Climax Molybdenum Company <br />112 - Hard Rock Regular Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />None <br />$10,354,051.00 <br />DATE OF COMPLAINT: <br />POST INSP <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INSPM S ATURE: <br />SIGNATURE DATE: <br />Clear <br />July 29, 2013 <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 />RECORDS Y (FN) FINANCIAL WARRANTY ---- N (RD) ROADS ----- N <br />HYDROLOGIC BALANCE- - - -- N (BG) BACKFILL & GRADING N (EX) EXPLOSIVES — N <br />PROCESSING WASTE/TAILING— N (SF) PROCESSING FACILITIES - - -- Y (TS) TOPSOIL— - Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE- - ----- N (RV) REVEGETATION— N <br />SIGNS AND MARKERS Y (SP) STORM WATER MGT PLAN -- N (SB) COMPLETE INSP— N <br />OVERBURDEN/DEV. WASTE- N (SC) EROSION /SEDIMENTATION— N (RS) RECL PLAN /COMP— N <br />T) ACID OR TOXIC MATERIALS N <br />= Inspected and found in compliance / N = <br />(OD) OFF -SITE DAMAGE------ ---- -N (ST) STIPULATIONS--- ---- N <br />/ NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 5 <br />