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of co<o COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />ye' $ MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />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 />Dawson Gold Project <br />P- 2013 -002 <br />Gold <br />Fremont <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Surety Release Inspection <br />T C. Wait <br />August 7, 2013 <br />09:30 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Zephyr Gold USA Ltd <br />Angela Bellantoni <br />MP - Mineral Prospecting <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Surety Release Requested <br />Partial Bond <br />$29,060.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None z <br />U.S.BLM <br />WEATHER: <br />'S SIG URE: <br />SIGNATURE DATE: <br />Cloudy <br />I <br />I August 8, 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---------------------- - - - - -- N (FN) FINANCIAL WARRANTY- - - - - -- Y (RD) ROADS--------- - - - - -- Y <br />HYDROLOGIC BALANCE------- - - - - -- Y (BG) BACKFILL & GRADING-- - - - - -- Y (EX) EXPLOSIVES-- - - - - -- NA <br />PROCESSING WASTE/TAILING - - -- NA (SF) PROCESSING FACILITIES - - - - -- NA (TS) TOPSOIL--------- - - - - -- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----- - - - - -- N (RV) REVEGETATION - - -- Y <br />SIGNS AND MARKERS--------- - - - - -- NA (SP) STORM WATER MGT PLAN - -- NA (SB) COMPLETE INSP - - -- NA <br />OVERBURDEN/DEV. WASTE--- - - - - -- NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />T) ACID OR TOXIC MATERIALS- - - - - -- NA (OD) OFF -SITE DAMAGE------ - - - -NA (ST) STIPULATIONS- - - - - -- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to <br />/ PV = Possible violation cited <br />Page 1 of 8 <br />