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HYDROLOGY <br />May 16, 2013 <br />The Corley Company has had several concerns that it has reported previously to Energy Fuels and the <br />Division of Reclamation, Mining, and Safety. These concerns are related to hydrology issues including <br />monitoring wells, open exploration drill holes, and Newlin Creek subsidence and flows. Because of <br />conflicting statements made by Energy and by us, we would like to approach these problems from an <br />objective basis that relies upon written records and not from memories or recollections of past <br />observations. <br />NEWLIN CREEK SUBSIDENCE <br />According to the Southfield Annual Hydrology Report prepared by Weaver Engineering Services, <br />dated April 18, 2013, although not signed, there is mention in the Southfield permit of predicted <br />subsidence of the surface lands as a result of the underground mining. It is not clear if the report <br />believes that Newlin Creek has subsided. There have been many subsidence surveys performed in the <br />area of Newlin Creek with one monitoring point named INC which is near the creek although this point is <br />not in the streambed of the creek. Also point INC is located over a solid pillar and is too far east of the <br />Southfield pillared areas to be able to document subsidence or not of Newlin Creek. There are other <br />subsidence monitoring points located above the pillared areas such as CV, G, H, and I that have shown <br />subsidence according to survey records that have been reported to DRMS. In particular point CV is <br />located above the 1' /z North Panel, and it has subsided about 3 ft. The subsidence of these points would <br />tend to indicate Newlin Creek itself subsided, but it is not conclusive. Therefore, we have measured <br />many points along Newlin Creek to establish a profile of the flow line. <br />6270 <br />� 6265 <br />Road Profile <br />p 6260 ° $ <br />a <br />> s255 a <br />w a <br />s26o <br />6245 <br />624 <br />N <br />w 6240 <br />C <br />O 6235 <br />6230 <br />W <br />6225 <br />6220 <br />Horizontal Delta, feet <br />A profile of County Road 15 is included to show the subsidence of the road over the same 1' /z North <br />Panel as the area of Newlin Creek in question. The road is essentially parallel at a distance of <br />approximately 200 feet from the creek. The road was a straight grade and subsided after it was <br />undermined according to reports. The two profiles are indexed upon the easterly edge of the pillaring <br />