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COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />�e $ 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: COUNTY: <br />Climax Mine <br />M-1977-493 <br />Molybdenum Summit <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: INSP. TIME: <br />Monitoring <br />Eric C. Scott <br />October 14, 2015 09:30 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Climax Molybdenum Company <br />Ray Lazuk <br />112d-3 - Designated Mining Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />IT.Bondcalculationtype.CD.Desc <br />$78,246,088.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />IN CTOR' G TURE: <br />SIGNATURE DATE: <br />Clear <br />October 15, 2015 <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-------- Y (RD) ROADS------------------ NA <br />HYDROLOGIC BALANCE ------------- Y (BG) BACKFILL & GRADING ---------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- Y (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- NA (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS----------------- Y (SW) STORM WATER MGT PLAN---- NA (CI) COMPLETE INSP---- Y <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- NA (RS) RECL PLAN/COMP-- Y <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE ---------------- Y (ST) STIPULATIONS------- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 2 <br />