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HomeMy WebLinkAboutDRC-2011-007692 - 0901a068802953414 State of Utah GARY R. HERBERT Govemor GREG BELL Lieutenant Governor Department of Environmental Quality Amanda Smith Executive Director DIVISION OF RADIATION CONTROL Rusty Lundberg Director Deceinber 7, 2011 CERTIFIED MAIL (Return Receipt Requested) Ms. Jo Ann Tischler Director, Compliance and Permitting Denison Mines (USA) Corp. (DUSA) 1050 17"^Street, Ste. 950 Denver, CO 80225 Dear Ms. Tischler: SUBJECT: December 2, 2011 DUSA Letter, 2011 Surety Update; Revised Surety Estimate Approval: Radioactive Materials License UT 1900479 The Division ofRadiation Control (DRC) received the December 2, 2011 DUSA letter which provides a revised suiety estimate. This revised surety estimate provides for larger quantities of conventional ore and altemate feed material to be stored on site through March 2012, with a corresponding cost increase. The ^ DRC has reviewed this information, and hereby approves this Revised Surety Estimate update in the amount of $19,420,335 as submitted by the DUSA December 2, 2011 letter. This updated estimate is a $92,077 increase from the recently approved DUSA estirnate of $19,328,258 dated November 1, 2011. This updated estimate is designated by DUSA as White Mesa Uranium Mill Reclamation Cost Estimate, December 2011, Revision 4.7. Information supplied in the December 2, 2011 estimate show a projected storage inventory of 100,000 toils of conventional ore and 18,146 tons of alternate feedstock for a total of 118,146 tons. This represents an net decrease of 71,795 tons, from the 2010 projected inventory estimate of 189,941 tons. The License for the facility limits the total conventional ore and altemate feedstock inventory in storage to the estimated amounts covered by the approved surety (Condition 10.I.D). The attached sheets summarize the cost and ore inventory changes. Our previous surety estimate approval letter of November 15, 2011 requested a surety instrument based on the previously approved figure. However, that estimate amount is superseded by this updated surety estimate approval. Therefore, we request you do not submit a surety instrument based on the previously approved figure. However, in accordance with VAC R313-24-4 (10 CFR 40, Appendix A, Criteria 9 as incorporated by refeience). you must submit a replacement surety instrument consistent with this latest approved surety estimate amount of $19,420,335. Condition 9.5 of the License requires you to submit corresponding written evidence of an adequate surety within 30-days of receipt of this letter. 195 North 195Q West • Salt Uke City. UT Mailing Address: P.O. Box 144850-Salt LakeCity. I IT 84114-4850 Telephone (801) 536-4250 • Fax (801) 533-4097 • T.b.D. (801) 536-4414 ~ www.deq.iilnh.nov ) Printed on lOO'i'f recycled paper Page 2 If you have any questions, please contact Mr. Rupp at (801) 536-4250. UTAH RADIATION CONTROL BOARD Rusty Lundberg, Executive Secretary RL/dar Enclosures: Revised 2011 Conv. Ore and Alt. Feedstock Inventory Estimate 2011 to 2012 Revised Reclamation Cost Estimate Comparison Summary Cc: Harold R. Roberts, Exec. V.P., DUSA F:\drupp\wp\ DUSA\ Sureiy\20l INEstimate Approval 12-2011 doc Revised 2011 Conv. Ore and Alternate Feedstock Inventory Estimate per DUSA Supplied Volumes Figures taken from DUSA Surety Estimate December 2. 2011 Conventional Ore Material CY Year Source Volume Tonnaqe* 2009 Various Conventional Ores 148,148 200,000 projected for 2009 2010 Various Conventional Ores 120,000 162,000 projected for 2010 2011 Various Conventional Ores 22,963 31,000 projected for 2011 2011 Revised Conventional Ores 74,074 100,000 revised Dec 2011 Projected Change 51,111 69,000 Change for 2011 *Tonnage estimate based on 100 pcf 1.35 estimated tons/cy 100 Estimated pcf Bulk (CY) Alternate Feed Material in Storage CY Year Source Companv Volume Tonnaqe* 2009 Linde, Cabot & Fansteel (FMRI) 12,119 16,361 as of 1/31/09 2010 Cabot & Fansteel (FMRI) 12,646 17,072 2011 Cabot & Fansteel (FMRI) 13,201 17,821 2011 Revised estimate 7,636 10,309 revised Dec 2011 Projected Change -5,565 -7,513 ^Tonnage estimate based on 100 lbs/cubic foot Cameco & Honeywell Barrels Year Source Companv 2009 Cameco & Honeywell Barrels 2010 Cameco & Honeywell Barrels 2011 Cameco & Honeywell Barrels 2011 Revised estimate Projected Change Number Barrels 19,049 29,563 30,638 42,735 12.097 Tonnaqe* . 7,003 10,869 11.264 7,837 -3,427 **Tonnage estimate based on 100 lbs/cubic foot & 55 gal/barrel 1 Equivalent to 7.35 cf/barrel, 735 lbs. or 0.368 tons each revised Dec 2011 from ppb table Anticipated Alternate Feed Total Tonnage 18,146 Conventional Ore Anticipated Tonnage 100.000 TOTAL 118.146 tons Combined Totals for Conventional Ore and Alternate Feed Materials Year 2009 2010 2011 2011 Source Companv Tonnage noted above, expected 2009 Tonnage noted above, expected 2010 Tonnage from above, expected 2011 Revised Tonnage, expected thru 3-2012 Revised Estimated Change from 2010 projection Change ih expected inventory on site Tonnaqe 223,364 tons 189.941 60,085 118,146 -71,795 Increase -71,795 . tons TOTAL Tonnage Increase of total inventory expected. 2011 to 2012 Revised Reclamation Cost Estimate Comparison Review Summary WHITE MESA MILL RECLAMATION COST SUMMARY November 1, 2011 Version Compared to the Approved Current Version transmitted December 2, 2011 AS SUBMITTED BY DUSA Nov. 1, Item 2011 Dec. 2, 2011 Change Proposed Comments & Explanations MILL DECOMMISSIONING 2,058,398 1 Decrease from lower feedstock quantities. MILL DECOMMISSIONING 1,988,110 2,058,398 70,288 1 Decrease from lower feedstock quantities. 2,058,398 Decreases in costs for equipment maintenance. CELL 1 1,671,808 1,671,808 0 Decreases in costs for equipment maintenance. Increases in equipment and labor costs. CELL 2 1,704,415 1,704,415 0 Increases in equipment and labor costs. Increases in equipment and labor costs. CELLS 2,106,627 2,106,627 0 Increases in equipment and labor costs. Increases in equipment and labor costs. CELL 4A 1,360,123 1,360,123 0 Increases in equipment and labor costs. CELL 4B MISCELLANEOUS increases in equipment and labor costs. CELL 4B MISCELLANEOUS 1,387,762 1,387,762 0 increases in equipment and labor costs. CELL 4B MISCELLANEOUS CELL 4B MISCELLANEOUS 3,637,667 3,637,667 0 Increases to additional of slimes drain evap pond liner, equipment mob/demob. duration of enviro monitoring, and labor costS; SUBTOTAL 13,856,513 13,926,801 70,288 Subtotals and difference. Corresponding increase due to subtotal increase. PROFIT ALLOWANCE @ 10% 1,385,651 1,392,680 7,029 Corresponding increase due to subtotal increase. CONTINGENCY @ 15% 2,078,477 2,089,020 10,543 Corresponding increase due to subtotal increase. LICENSING & BONDING @ 2% 277,130 278,536 1,406 Corresponding increase due to subtotal increase. UDEQ Contract Administration @ 4% 554,261 557,072 2,811 Corresponding increase due to subtotal increase. Contractors Equipment Floater 1% Based on 1% of equipment value Contractors Equipment Floater 1% 82,250 82,250 0 Based on 1% of equipment value Automobile and General Liability Ins. Increase primarily due to the cost of contractor General Liability Insurance Automobile and General Liability Ins. 284,600 284,600 0 Increase primarily due to the cost of contractor General Liability Insurance LONG TERM CARE FUND Adjusted to Dec 2010 CPI-U. Ratio based on CPI-U current/ CPI-U December 1978, LONG TERM CARE FUND 809,376 809,376 0 Adjusted to Dec 2010 CPI-U. Ratio based on CPI-U current/ CPI-U December 1978, TOTAL RECLAMATION TOTAL RECLAMATION 19,328,258 19.420.335 92,077 Total Surety and Change from November 2010. • • HI [T • US. Postal Service i l|ERJIBIEa^ 'fPo/nesf/c Afa/V On/y; A/p Insurance Coverage Provided) For delivery informatloh visit our website,at vmw.usps.cprrijt ' ^ i C i A I sir"*' r** Postage $ Certified Fee Postmark Postmark RE: 12.2.11. revised surety estimate approval / DR Jo Ann Tischler Denison Mines (USA) Corp 1050 Seventeenth ST, STE 950 Denver, Co 80265 ;PS.F,orm; 3800/ August 2006 See Reverse for Instructions State of Utah GARY R. HERBERT Govemor GREG BELL Lieutenant Govemor November 15, 2011 CERTIFIED MAIL (Retum Receipt Requested) Ms. Jo Ann Tischler Director, Compliance and Permitting Denison Mines (USA) Corp. (DUSA) 1050 n''^ Street, Ste. 950 Denver, CO 80225 Dear Ms. Tischler: Department of Environmental Quality Amanda Smith E.xecutive Director DIVISION OF RADIATION CONTROL- Rusty Lundberg Director WJ^Postal Service™ i, «riF(ED, MAiL„ BBCEIPT Provided): (Endr Postage Certified Fee Return Ropaint Cor, Po.<5tmflrl< RE: estimate approval / DAR Jo Ann Tischler \s^' Denison Mines (USA) Corp 'Stree 1050 Seventeenth ST, STE 950 [-°^^ Denver, Co 80265 PS'Form 3800, August 2006 See Reverse for Instruction^ SUBJECT: November 1, 2011 DUSA Letter, Response to September 14, 2011 DRC Letter, Request for Information; March 4, 2011 DUSA Letter Submitting a 2011 Surety Update- Estimate Approval: Radioactive Materials License UT 1900479 The Division of Radiation Control (DRC) received the subject November 1, 2011 DUSA letter which provided a revised surety estimate. The DRC has reviewed this information, and has no further inquiries. Therefore, the DRC approves the Surety Estimate update in the amount of $19,328,258 as submitted in the subject DUSA November 1, 2011 letter. This updated estimate constitutes a $550,870 increase from the previous approved surety amount of $18,777,388. The increase was mainly due to the adjustment in costs for the slimes drain evaporation pond liner, machinery mobilization and operating costs, technician labor hours, and corresponding increases due to costs tied to percentage multipliers. The latest approved surety estimate is included in the subject DUSA November 1, 2011 letter. This estimate is designated as a total revision to Attachment C to Revision 3.2-Final of the approved White Mesa Mill Reclamation Plan, and should replace Attachment C in its entirety. The estimate summary is also designated by DUSA as Revision 4.5, October 2011. We have enclosed two summarizing spreadsheets, our 2009-2010 Reclamation Cost Estimate Comparison Review Summary as well as our 2011 Conventional Ore and Altemate Feedstock Inventory Estimate, per DUSA Supplied Volumes. The License for the facility limits the total conventional ore and altemate feedstock inventory in storage to the estimated amounts covered by the approved surety (Condition lO.l.D). Information supplied in the March 4, 2011 and November 1, 2011 estimates show a projected storage inventory of 31,000 tons of conventional ore and 29,085 tons of altemate feedstock for a total of 60,085 tons. This represents a decrease of 129,856 tons, from the 2010 projected inventory estimate of 189,941 tons. 105 Nortti 1050 West • Salt Lake City. UT Mailing Address; P.O. Box 144850 • Salt Lake City. UT 84114-4850 Telephone (801)536-4250 • Fa,x (801) 53.3-4097 • T,D,D, (801) 536-4414 \\"\\w.di'q.utoh.f:ov Printed oil 100':-( recycled paper Page 2 As you are aware, a performance assessment study on the tailings pond cover system titled the Denison Mines (USA) Corp. Infiltration and Contamination Transport Modeling Report, White Mesa Mill Site, Blanding, Utah is under review by the Division. Additionally, a license renewal application was received by the DRC in February 2007, and is cunently under agency review and out for public comment. The review of the reclamation plan is an important part of this process. Based on the final outcome of the study, the license renewal process, and review of the reclamation plan, the surety may need to be adjusted separately from the normal annual renewal sequence. In accordance with UAC R313-24-4 (10 CFR 40, Appendix A, Criteria 9 as incorporated by reference), you must submit a replacement surety instrument consistent with this surety estimate approval. Condition 9.5 of the License requires you to submit corresponding written evidence of an adequate surety within 30-days of receipt of this letter. If you have any questions, please contact Mr. Rupp at (801) 536-4250. UTAH RADIATION CONTROL BOARD Rusty Lundberg, Executive Secretary RL/dar Enclosures Cc: Harold R. Roberts, Exec. V.P., DUSA F;\drupp\wp\ DUSA\ Surety\201 IXEstimate Approval 11 -2011 ,doc 2011 Conventional Ore and Alternate Feedstock Inventory Estimate per DUSA Supplied Volumes Figures taken from DUSA Surety Estimate November 1, 2011 Conventional Ore Material CY Year Source Volume Tonnaqe* 2009 Various Conventional Ores 148,148 200,000 projected for 2009 2010 Various Conventional Ores 120,000 162,000 projected for 2010 2011 Various Conventional Ores 22,963 31,000 projected for 2011 Annual Projected Change -97,037 -131,000 Change for 2011 *Tonnage estimate based on 100 pcf 1.35 estimated tons/cy 100 Estimated pcf Bulk (CY) Alternate Feed Material in Storage Year Source Companv 2009 Linde, Gabot & Fansteel (FMRI) 2010 Cabot & Fansteel (FMRI) 2011 Cabot & Fansteel (FMRI) Annual Change *Tonnage estimate based on 100 lbs/cubic foot CY Volume 12,119 12,646 13,201 555 Tonnage^ 16,361 17,072 17,821 749 as of 1/31/09 Cameco & Honeywell Barrels Year Source Companv 2009 Cameco & Honeywell Barrels 2010 Cameco & Honeywell Barrels 2011 Cameco & Honeywell Barrels Annual Projected Change Number Barrels 19,049 29,563 30,638 ' 1,075 Tonnage* 7,003 10,869 11,264 395 Anticipated Alternate Feed Total Tonnage Conventional Ore Anticipated Tonnage TOTAL ' 29,085 31.000 60.085 tons **Tonnage estimate based on 100 lbs/cubic foot & 55 gal/barrel Equivalent to 7.35 cf/barrel, 735 lbs. or 0.368 tons each Combined Totals for Conventional Ore and Alternate Feed Materials Year Source Companv ,2009 Tonnage noted above, expected 2009 2010 Tonnage noted above, expected 2010 2011 Tonnage from above, expected 2011 Annual Change Tonnage 223,364 189,941 60,085 -129,856 tons ITOTAL Decrease of total inventory from previous year expected. Change in expected inventory on site Decrease -129,856 tons 2011 to 2012 Reclamation Cost Estimate Comparison Review Summary WHITE MESA MILL RECLAMATION COST SUMMARY November 2010 Version Compared to the Approved Current Version transmitted November 1, 2011 AS SUBMITTED BY DUSA Item November November Change 2010 MILL DECOMMISSIONING 1 Decrease from lower feedstock quantities. MILL DECOMMISSIONING 2,106,401 1,988,110 -118,291 1 Decrease from lower feedstock quantities. Decreases in costs for equipment maintenance. CELL 1 1,711,993 1,671,808 -40,185 Decreases in costs for equipment maintenance. Increases in equipment and labor costs. CELL 2 1,589,352 1,704,415 115,063 Increases in equipment and labor costs. Increases in equipment and labor costs. CELL 3 2,056,143 2,106,627 50,484 Increases in equipment and labor costs. Increases in equipment and labor costs. CELL 4A 1,348,393 1,360,123 11,730 Increases in equipment and labor costs. CELL 4B MISCELLANEOUS Increases in equipment and labor costs. CELL 4B MISCELLANEOUS 1,337,266 1,387,762 50,496 Increases in equipment and labor costs. CELL 4B MISCELLANEOUS CELL 4B MISCELLANEOUS 3,295,557 3,637,667 342,110 Increases to additional of slimes drain evap pond liner, equipment mob/demob, SUBTOTAL duration of enviro monitoring, and labor costs. SUBTOTAL 13,445,107 13,856,513 411,406 Subtotals and difference. PROFIT ALLOWANCE @ 10% Corresponding increase due to subtotal increase. PROFIT ALLOWANCE @ 10% 1,344,511 1,385,651 41,140 Corresponding increase due to subtotal increase. CONTINGENCY @ 15% CONTINGENCY @ 15% 2,016,766 2,078,477 61,711 Corresponding increase due to subtotal increase. / LICENSING & BONDING @ 2% LICENSING & BONDING @ 2% 268,902 277,130 8,228 Corresponding increase due to subtotal increase. UDEQ Contract Administration @ 4% UDEQ Contract Administration @ 4% 537,804 554,261 16,457 Corresponding increase due to subtotal increase. Contractors Equipment Floater 1% Based on 1 % 6f equipment value Contractors Equipment Floater 1% 82,250 82,250 0 Based on 1 % 6f equipment value Automobile and General Liability Ins. Increase primarily due to the cost of contractor General Liability Insurance Automobile and General Liability Ins. 284,600 284,600 0 Increase primarily due to the cost of contractor General Liability Insurance LONG TERM CARE FUND Adjusted to Dec 2010 CPI-U. Ratio based on CPI-U current/ CPI-U December 1978. LONG TERM CARE FUND 797,448 809,376 11,928 Adjusted to Dec 2010 CPI-U. Ratio based on CPI-U current/ CPI-U December 1978. TOTAL RECLAMATION Total Surety and Change from November 2010. TOTAL RECLAMATION 18,777,388 19,328,258 550,870 Total Surety and Change from November 2010. State of Utah GARY R, HERBERT Govemor GREG BELL Lieutenant Governor Department of Environmental Quality Amanda Smith Executive Director DIVISION OF RADIATION CONTROL Rusty Lundberg Director September 14, 2011 CERTIFIED MAIL (Retum Receipt Requested) Ms. Jo Ann Tischler Director, Compliance and Permitting Denison Mines (USA) Corp. (DUSA) 1050 17* Street, Ste. 950 Denver, CO 80225 Dear Ms. Tischler: SUBJECT: References: a. b. March 4, 2011 DUSA Letter Submitting 2011 Surety Update; Retraction of NOED, Apology, Comments and Request for Information The subject DUSA letter of March 4, 2011, submitting the DUSA 2011 Surety Estimate Update. June 28, 2011 DRC Letter regarding non-submittal of surety estimate, containing a Notice of Enforcement Discretion (NOED). T July 1, 2011 DUSA Letter regarding non-submittal of surety estimate. DEQ received the subject DUSA letter, reference (a), dated March 4, 2011. This letter was not received by DRC staff. Therefore DRC issued reference (b) in this regard. However, this letter was somehow misplaced by DEQ in its mail routing system. When DUSA became aware of this error, reference (c) was sent to DRC, to replace the missing original submittal. Therefore, DRC hereby retracts reference (b), as the routing documents show that reference (a) was actually delivered to the Department of Environmental Quality, but was somehow misplaced. We also apologize for this error. We have reviewed the subject letter, and have the following comments: 1. General Comment: Haul routes and times are sometimes referred to in various sections of the estimate. Please provide a detailed table and maps,- which describe the haul routes, the haul route numbers, distances, materials, and the total round trip haul times, which include the loading and unloading times, for the various routes and materials to be transported. Adjust any affected costs resulting from the new table values. 2. Mill Decommissioning Section. The "Conventional Ore Disposal" table in this section estimates the stockpiled weight of the ore on site at 100 lbs. /cubic foot. This seems to be a low weight for 195 North 1950 West • Salt Lake City, UT Mailing Address: P,0. Box 144850 • Salt Lake City, UT 84114-4850 Telephone (801) 536-4250 • Fax (801) 533-4097 •T.D.D. (801) 536-4414 www.deq.utoh.gov Printed on 100';''( recycled paper Page 2 the conventional ore we have observed stockpiled on site. Please document the current average stockpiled weight of the conventional ore on site, and apply this value in the "Conventional Ore Disposal" portion of the estimate. 3. Cell 1 Section. In the table of the title "Place Lower Random Fill" in this section, scraper, compactor, D8 dozer, and D7 dozer operator labor costs have been omitted in the portion of the table provided. Please provide completed missing information for review. 4. Cell 2 Section. a. The table of the title "Upper Random Fill" in this section, the table does not provide operator labor costs for most of the power equipment operators. Please include the missing information in the table. b. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the extended labor operation costs for the D7 dozer, waterwagon and motorgrader operators. Please include these missing labor costs in this table. 5. Cell 3 Section. a. The table of the title "Clay Layer" in this section does not have the operator labor costs shown for most of the power equipment operators. Please include the missing information in the table. b. The table of the title "Upper Random Fill" in this section, as submitted, did not provide operator labor costs for most of the power equipment operators. Please include the missing information in the table. c. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the extended labor costs for the dozer, waterwagon and motorgrader operators. Please include these missing labor costs in this table. 6. Miscellaneous Section. a. In the Slimes Drain Evaporation Pond table, a 960,000 square foot pond is contemplated. However, there is no budget for equipment or labor to install the liner, per se. That is the equipment and labor to roll out, cut, seam, trim, patch, weld, and test the Hner. Please include this cost in the estimate. b. Equipment Mobilization Table and the "Equipment Costs" Spread Sheet: (i) . The "Equipment Costs" spread sheet, under the primary Mob/Demob column, do not list the corresponding current freight charges, as shown in "Attachment A" of the Feb. 16, 2011 letter from NCRL Leasing. This appears to total $348,850. (ii) . The "Equipment Costs" spread sheet. The "Mobilization" cost for maintenance support personnel is $35,600 each way for a total of $71,200, per the Feb. 16, 2011 letter from NCRL Leasing. This cost, and the amount from the above item, total $420,050. This sum should appear on the first line of the Equipment Mobilization Table, in the miscellaneous section of the estimate. c. In the Management Support table, there are two line items, one for a part-time Environmental Technician and one for Environmental Monitoring Lab Costs. In addition to these budgeted amounts for environmental monitoring, the total should include any separate unique monitoring costs required by the Annual Technical Evaluation Report (ATER), the tailings cell dewatering elevations, surface water elevations and freeboard monitoring as required by the DMT and BAT O&M plans, and other unique monitoring outlined section 2.3 of approved Reclamation Plan 3.2. A single part-time technician will Page 3 be unable to perform all of these tasks without assistance. Please breakdown these costs to demonstrate that all these monitoring costs (including all necessary technician labor hours) are covered in the surety estimate. Please review the above comments, and submit the requested information, including a final summary of the adjusted costs. Per your email on September 13, 2011, you committed that DUSA would fully .respond to the above within 45 calendar-days of receipt of this letter. If you have any questions on the above, please Mr. David Rupp of my staff. UTAH RADIATION CONTROL BOARD (JLW Rusty Lundberg, Executive Secretary RL/dar Cc: Harold R. Roberts, Exec. V.P., DUSA F:\drupp\wp\ fUCX Surety\2011\RFI1 09-2011 ,doc m cr r=l HI IT r- • U.S. Postal Service™ CERTIFIED MAIL RECEIPT (Domesiic Mail Only; No Insurance Coverage Provided) For dellvelry Information visit bur website at wrww.usps.comoii Postage Certified Fee Return Reneiot Fee . $ Postmark Postage Certified Fee Return Reneiot Fee . Postmark Postage Certified Fee Return Reneiot Fee . Postmark a HI o a r^ RE: 8/14/11: retraction of NOED / DR Jo Ann Tischler Denison Mines (USA) Corp 1050 Seventeenth ST, STE 950 Denver, Co 80265 PS Form 3800, August 2006 See Reverse for Instructions DENISO MINES November 23, 2010 Receivod NOV 2010 Division of Radiation Control 2«0-DOTS 181 Dtni«on MjnoTCUSA) Corp. 10S017th Street. Suits 950 Denver, CO 80265 USA Tel: Fax 303 628-7798 303 389-4125 www.deni8onmlnes.com VIA E-MAIL AND OVERNIGHT DELIVERY Rusty Lundberg Director Division of Radiation Control Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144810 Salt Lake City, UT 84114-4820 Re: October 15, 2010 DUSA Response Letter to September 23, 2010 DRC Request for Information; March 3, 2010 DUSA Letter.r2;010 Surety Update; Request for Information Dear Mr. Lundberg: We are responding to the November 16, 2010 Request for Information from Dave Rupp asking for additional clarification on the October 2010 update, Revision 4.3, of the White Mesa Mill reclamation cost estimates. Mr. Rupp's comments are restated below, in italics, followed by our response. Where necessary, replacement pages are provided for inclusion in the March, August and October 2010 estimates. These revisions are labeled Revision 4.4, and also include the estimated cost for reclamation of tailings Cell 4B, that was submitted as Revision 3.2 in June 2010. A. Equipment Maintenance Hourly Rate. The fixed monthly equipment maintenance cost of $65,430 provided by North Central Rental and Leasing (NCRL) is exclusively for the machinery rentedfrom NCRL. The subject DUSA letter of March 3, 2010, has an Equipment Costs tab. An Equipment Costs spread sheet is provided under that tab. The first table in that spread sheet shows a list of NCRL equipment hours totaling 2,992 hours per month Thus, the hourly rate for maintenance of the NCRL equipment would be $65,430/2,992 hours or $21.87per hour: However, DUSA used a figure of $20.57 per hour for the maintenance in the subject submittal of October 15. 2010, The figure of $65, 430for NCRL equipment plus $759/monthfor corresponding foel monthly was divided by 3,218 hours. The 3,218 hours are an additional 226 hours greater than the 2,992 hours mentioned in the paragraph above. Please explain the use of 3,218 hours for the NCRI. equipment rather than the 2,992 hours. The 2,992 hours were increased by approximately 7.5% to take into account the likely excess hours operated during each month of the project. This would result in additional hours covered by the maintenance agreement. Letter to Mr. Rusty Lundberg November 23, 2010 Page 2 In discussions with Dave Rupp it became apparent that this approach would possibly cause confusion in understanding the overall hourly operating cost. Therefore the total hours used to calculate the hourly maintenance charge has been reduced to 2,992. Copies of the estimate summaries affected by this change have been attached to this letter as revision 4.4. Future estimates will be modified to include the likelihood of construction equipment operating overtime, or a second shift, each month. B. Please assure the following items are included in the current surety estimate: (1) . The truck shop/barrel painting building south of the main entry road. Costs have been included for demolition of the truck shop / barrel painting building under the Mill Decommissioning section. Copies of the estimate summaries affected by this change have been attached to this letter as revision 4.4. (2) . The electrical/maintenance storage building just north of the ore sample storage building. Costs have already been included for the Sample Plant Building. The additional building in question is actually a temporary structure used for material storage. Costs have been included for demolition of the temporary storage building under the Mill Decommissioning section. Copies of the estimate summaries affected by this change have been attached to this letter as revision 4.4. J Please contact the undersigned if you have any questions or require any further information. Yours very truly, DENISON MINES (USA) CORP. Jo Ann Tischler Director, Compliance and Permitting Attachment cc: Ron F. Hochstein David C. Frydenlund Harold R. Roberts David E. Turk Rich Bartlett Steve Snyder Central files DENISO MINES •|ii||nii|l 4 J Denison Mines (USA) Corp. 4- ;5] 105017th street, Suite 950 m.mmm. mmMm M MM ^1 Denver, CO 80265 DENISON MINES Tel: 303 628-7798 Fax: 303 389-4125 www.denisonmines.com Attachment C White Mesa Mill Reclamation Plan Revision 4.4 Revised Cost Estimates for of the White Mesa Mill and Tailings Management System November 2010 state of Utahlle.(2) Byproduct Material License # UT1900479 . Copy 1 State of Utah . Denison Mines (USA) Corp. I 105017th street, suite SSO I Tel: 303 628-7798 www.denisonmines.com | Denver, CO, USA 80265 j Fax:303 389-4125 Cost Summary State of Utah GARY R. HERBERT Govemor GREG BELL LifHtenaHt Govemor Department of Environmental Quality Amanda Smith Execuuve Director DIVISION OF RADIATION CONTROL Dane L. Finerfrock Director June 16, 2010 CERTIFIED MAIL (Retum Receipt Requested) Ms. Jo Ann Tischler Director, Compliance and Permitting Denison Mines (USA) Corp. (DUSA) 1050 17'*^ Street, Ste. 950 Denver, CO 80225 Dear Ms. Tischler: SUBJECT: March 3, 2010 DUSA Letter, 2010 Surety Update; Request for Information We received the subject letter from DUSA which conveyed the 2010 surety update titled Revised Cost Estimates for Reclamation of the White Mesa Mill and Tailings Management System, dated March 2010. We have reviewed this information and have the following comments: 1. Equipment Maintenance. The Equipment Costs spread sheet with the subtitle White Mesa Mill Reclamation Costs, shows that the hourly rate for equipment maintenance dropped from $21.15 per hour in the 2009 estimate to $20.53 per hour in the 2010 estimate. The calculation method to derive the hourly maintenance rate for 2010 is unclear. a. Please explain and justify the derivation of the hourly equipment maintenance rate for 2010, or b. Correct the hourly maintenance cost for this estimate. 2. Tankage and Spare Parts Removal. On page 4 of the Mill Decommissioning portion of the estimate. Misc. Tankage and Spare Parts Removal costs are shown in a table titled the same. Per DUSA's previous surety letter of October 5, 2009, this table includes only the reclamation of the newly constructed uranium and vanadium SX feed tanks and the SX raffinate tank. However, the reclamation of all the other existing tank systems at the mill appears to be omitted from the March 3, 2010 estimate. Please demonstrate that the reclamation of all the existing tank systems at the mill are included in the current estimate with appropriate hours budgeted for each system. If 168 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144850 • Salt Lake City. UT 84114-4850 Telephone (801) 536-4250 • Fax (801) 533-4097 • T.D.D. (801) 536^14 www.deq.uiah.gov Printed on 100% recycled paper Ms. Jo Ann Tischler June 16,2010 Page 2 not, please add this work to the estimate. 3. Insurance. Last year we requested several insurance items be included in the estimate. The Contractor Equipment Floater, Workman's Compensation, and Employer's Liability estimates are acceptable as included in the current estimate. An exception is the estimate for contractor's General Liability submitted in the March 3, 2010 surety update, which we feel needs adjustment. We also desire to have insurance for motor vehicles that will be involved in the work, included in the estimate. For these two insurance types, we are requesting that DUSA (and the other Utah U- mills) apply the limits of liability used by the Utah Dept. of Transportation (UDOT), and other adjustments described in paragraphs a and b below: a. General Liability Insurance. Last year we estimated this amount to be between 0.25 and 0.64% of the total project cost. An average amount of 0.45% was added to the estimate. We have discovered this cost range was actually an estimate for Builder's Risk insurance. We are not currently interested in Builder's Risk insurance for the project. However, we are interested in budgeting for the general liability insurance we originally intended. The extent of liability and requirements for this insurance must have the following minimum limits of liability': (1) . $1,000,000 Bodily Injury and Property Damage - Each Accident (2) . $2,000,000 General Aggregate (3) . $2,000,000 Products and Complete Operations Annual Aggregate b. Automobile Liability Insurance. Provide Automobile Liability Insurance for claims arising from the ownership, maintenance, or use of motor vehicles involved in project work with the following minimum limits': (1). $1,000,000 Combined single Limit Bodily Injury and Property Damage per Occurrence The costs for these insurance must be documented, based on quotes or reputable cost book figures. 4. Reclamation costs for decommissioning, demolishing and disposal of the New Reagent Storage Building needs to in the estimate. 5. Costs of pumping, monitoring and disposal after mill closure: a. Slimes drain pumpage for Cells 2, 3, and 4A will be 6.5 years or more. (1) . This adds extra time for pumping facilities and monitoring beyond the 5- . years for environmental monitoring already budgeted, which needs to be added to the estimate. (2) . It seems that if reclamation were to begin now, that the tailings ponds would be closed to acceptance of tailings and wastewater. If the White Insurance Requirements of the UDOT Standards for Road and Bridge Construction, 2008 edition. n Ms. Jo Ann Tischler June 16,2010 Page 3 Mesa Mill Tailings Cells are closed to further influent, the costs for a separate pond for storage of pumpage, or other wastewater treatment method will need to be included in the estimate, b. Costs for treatment of the chloroform and nitrogen plumes at the White Mesa Mill site need to be included in the estimate. Facilities and time for aquifer pumping and related wastewater treatment or disposal pond system must be estimated and justified. A separate wastewater treatment or disposal pond system from the slimes drainage may be needed. It may not be feasible to co- mingle wastewater from the chlorofonn and nitrogen plumes with slimes drain wastewater pumpage discussed above. 6. Potential Closure of monitoring well WW2. DUSA is required to submit a plugging and closure plan in Part I.H.3 of the imminent Ground Water Discharge Permit to address the possibility of hydraulic interconnection of the chloroform plume and the deep aquifer (tribal drinking water supply). Please include the costs for this plan and implementation in the estimate. As a reminder, surety costs must still be provided for the upcoming Cell 4B facilities, and be approved before any operation of the cell. Please review the above comments, and submit the requested information. In your email to us received on June 16, 2010, you committed that DUSA would submit the subject information within 60-days of receipt. If you have any questions on the above, please contact me. Sincerely, Ar David A. Rupp, P.E. Geotechnical Services Section DAR:LBM:dr F:\drupp\wp\ IUaSurety\2010\RFn 06-20lO,doc File: Documentum WHITE MESA MILL RECLAMATION COST ESTIMATE November 2010 Revision 4.4 Mill Decommissioning $2,106,401 Cell 1 $1,711,993 Cell 2 $1,589,352 Cells $2,056,143 Cell4A $1,348,393 Cell4B $1,337,266 Miscellaneous $3,295,557 Subtotal Direct Costs $13,445,107 Profit Allowance 10.00% $1,344,511 Contingency 15.00% $2,016,766 Licensing & Bonding 2.00% $268,902 UDEQ Contract Administration 4.00% $537,804 Contractors Equipment Floater $82,250 Automobile and General Liability Insurance $284,600 Long Term Care Fund $797,448 Total Reclamation $18,777,388 Revised Bond Amount $18,777,388 11/11/2010 - 8:23 AM - WMM Rec Plan Est October 2010 Rev 4:4 Denison Mines (USA) Corp. White Mesa Mill Mill Decommissioning MILL DECOMMISSIONING MILL DECOMMISSIONiNG Mill Building Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 720 $13,636 hrs $16.53 i $10,577 hrs $12.51 1320 1 $4,002 hrs $1.35 WI r $1,296 hns $93.53 640 $59,860 hrs $16.67 640 $10,671 hrs $133.14 16Q $21,302 hrs $128.07 160' $20,491 hrs $151.36 160 \- $24,218 hrs $78.10 160 k $12,497 hrs $51.46 80-$4,117 hrs $22.12 1.360 $30,086 sf $3.30 37,500 ^$123,750 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 60 Ton Crane 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total Mill Building Demolition Ore Feed Demolition Resource Description Units Cost/Unit Task Units $336,502 Task Cost Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 30 Ton Crane Equipment Maintenance (Butler) Total Ore Feed Demolition SX Building Demolition Resource Descnption hrs $18,94 48 $909 hrs $16.53 64 $1,058 hrs $12:51 32 $400 hrs $1.35 96 $130 hrs $93.53 64 $5,986 hrs $16.67 64 $1,067 hrs . $133.14 16 $2,130 hrs $128.07 16 $2,049 hrs $151.36 16 $2,422 hrs $51.46 0 $0 hrs $22.12 112 $2,478 Units Cost/Unit Task Units $18,628 Task Cost hrs $18.94 240 $4,545 hrs $16.53 320 $5,288 hrs $12.51 160 $2,001 hrs , $1.35 480 $648 hrs $93.53 320 $29,930 hrs $15.67 320 $5,336 hrs SI 33.14 80 $10,651 hrs $128.07 80 $10,246 hrs $151.36 80 : $12,109 hrs $78.10 0 $0 hrs .$51.46 0 $0 hrs $22,12 560 $12,388 sf $3.30 55.970 $184,701 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 60 Ton Crane 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total SX Building Demolition $277,843 11/11/2010 - 6:23 AM-WMM Rec Plan Esl October 2010 Rev 4 4 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING CCD Circuit Removal Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 60 Ton Crane 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total CCD Circuit Removal Sample Plant Removal Resource Description hrs $18.94 135 $2,557 hrs $16.53 120 $1,983 hrs - $12.51 60 $750 hrs $1,35 180 $243 hrs $93.53 120 $11,224 hrs $16,67 120 $2,001 hrs $133.14 30 $3,994 hrs $128.07 30 $3,842 hrs $151.36 30 $4,541 hrs $78,10 30 $2,343 hrs $51.46 15 $772 hrs $22.12 255 $5,641 sf. $3:30 15,000 $49,500 Units Cost/Unit Task Units $89,391 Task Cost Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metat Shears 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total Sample Plant Removal Temporary Storage Building Removal . Resource Description hrs $18,94 24 $455 hrs $16,53 32 $529 hrs $12,51 16 $200 hrs $1.35 48 $65 hrs $93 53 32 $2,993 hrs $16.67 32 $534 hrs $133,14 8 $1,065 hrs $128.07 8 $1,025 hrs ,$151.36 8 $1,211 hrs $51.46 0 $0 hrs $22,12 56 $1,239 sf $3.30 4,200 $13,860 Units Cost/Unit Task Units $23,174 Task Cost Equipment Operators Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Equipment Maintenance (Butler) Concrete Removal Total Temporary Storage Building Removal Truck Shop Removal Resource Descnption hrs $18.94 2 $38 hrs $12.51 8 $100 hrs $1.35 8 $11 hrs $93.53 2 $187 hrs $16.67 2 $33 hrs $133,14 2 $266 hrs $22,12 4 $88 sf $3.30 600 $1,980 Units CosVUnit Task Units $2,704 Task Cost Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total Truck Shop Removal 11/11/2010 - 8:23 AM-WMM Rec Plan Est October 2010 Rev 4.4 hrs $18.94 24 $455 hrs $16.53 32 $529 hrs $12.51 16 $200 hrs $1.35 48 $65 hrs $93.53 24 $2,245 hrs $15,67 24 $400 hrs. $133,14 8 $1,065 hrs $128.07 8 $1,025 hrs $151,36 8 $1,211 hrs $51.46 0 $0 hrs $22,12 48 $1,062 sf $3,30 4.200 $13,860 $22,116 Der^ison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Vanadium Oxidation Circuit Removal . Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 48 $909 hrs $16.53 64 $1,058 hrs $12.51 32 $400 hrs $135 96 $130 hrs $93.53 64 $5,986 hrs $16.67 64 $1,067 hrs $133.14 16 $2,130 hrs $128.07 16 $2,049 hrs $151.36 16 $2,422 hrs $78.10 0 SO hrs $51.46 0 :$0 hrs $22.12 112 $2,478 sf $3.30 1,200 $3,960 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 60 Ton Crane 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total Vanadium Oxidation Circuit Removal $22,588 IMain Shop/Warehouse Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 96 $1,818 hrs $16.53 128 $2,115 hrs $12,51 64 $800 hrs $1,35 192 $259 hrs $93,53 128 $11,972 hrs $16.67 128 $2,134 hrs $133.14 32 $4,260 hrs $128.07 32 $4,098 hrs $151.36 32 $4,844 hrs $22.12 224 $4,955 sf $3.30 19.300 $63,690 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Concrete Removal Total Main Shop/Warehouse Demoiition $100,947 Decon Pads (2) Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 48 $909 hrs $16.53 64 $1,058 hrs $12.51 32 . $400 hrs $1.35 96 $130 hrs $93.53 64 $5,986 hrs $16,67 64 $1,067 hrs $133.14 16 $2,130 hrs $128,07 16 $2,049 hrs $151.36 16 . $2,422 hrs $22.12 112 $2,478 sf $3.30 1,350 $4,455 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Gat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Concrete Removal Total Decon Pads (2) Demolition $23,083 11/11/2010 - 8:23 AM-WMM Rec Plan Est October 2010 Rev 44 Denison Mffies (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Boiler Demolition Resource Description Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears 60 Ton Crane 30 Ton Crane Equipment Maintenance (Butler) Concrete Removal Total Boiler Demolition Units Cost/Unit Task Units Task Cost hrs $18.94 120 $2,273 hrs $16.53 160 $2,644 hrs $12.51 80 $1,000 hrs $1.36 240 $324 hrs $93.53 160 $14,965 hrs $16.67 160 $2,668 hrs $133.14 40 $5,326 hrs $128.07 40 $5,123 hrs $151.36 40 $6,054 hrs $78.10 0 $0 hrs $51.46 0 $0 hrs $22.12 280 $6,194 sf $3.30 2,900 $9,570 $56,141 11/11/2010 - 8:23 AM-WMM Hec Plan Est October 2010 Rev 4 4 Denison Mines (USA) Corp. White Mesa Milt MILL DECOMMISSIONING Office Building Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 72 $1,364 hrs SI 6.53 96 $1,587 hrs $12.51 48 $600 hrs $1.35 144 $194 hrs $93.53 96 $8,979 hrs $16.67 96 $1,601 hrs $133.14 24 $3,195 hrs $128.07 24 $3,074 hrs $151,36 24 $3,633 hrs $22,12 168 $3,716 sf $1,25 12.100 $15,125 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Concrete Removal Total Office Building Demolition $43,068 Septic Tanks and Drain Fields Respurcie Desaiption Units Cost/Unit Task Units Task Cost hrs $18.94 16 $303 hrs $16.53 0 $0 hrs $12.51 16 $200 hrs $1.35 32 $43 hrs $93.53 16 $1,496 hrs $16.67 16 $267 hrs $133.14 8 $1,065 hrs $128.07 8 $1,025 hrs $151.36 0 $0 hrs : $22.12 32 $708 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Total Septic Tanks and Drain Fields $5,107 Misc. Tankage & Spare Parts Removal Resource Description Units CosfUnit Task Units Task Cost hrs $18.94 36 $682 hrs $16.53 48 S793 hrs $12.51 24 $300 hrs $1.35 72 $97 hrs $93.53 48 $4,489 hrs $16.67 48 $800 hrs $133.14 12 $1,598 hrs $128,07 12 $1,537 hrs $151.36 12 . $1,816 hrs $22,12 84 $1,858 Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Total Misc. Tankage & Spare Parts Removal $13,971 11/11/2010 - 8:23 AM-WMM Rec Plan Est October 2010 Rev 4 4 Denison Mines (USA) Corp, While Mesa Mill MILL DECOMMISSIONING Alternate Feed Circuit and Reagent Storage Building Resource Description Equipment Operators Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 365 Excavator PC 300 w/metal Shears Equipment Maintenance (Butler) Concrete Removal Units Cost/Unit Task Units Task Cost hrs $18,94 120 $2,273 hrs $16.53 50 $626 hrs $12.51 50 $625 hrs $1.35 96 $130 hrs $93.53 50 $4,677 hrs $16.67 50 $834 hrs $133.14 34 $4,527 hrs $128.07 34 $4,354 hrs $151.36 52 $7,871 hrs $22.12 170 $3,761 sf $3.30 3,500 $11,650 Total Alternate Feed Circuit and Reagent Storage Building $41,427 Mill Yard Decontamination Resource Description Equipment Operators Cat 637 Scraper Cat 988 Loader Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Mill Yard Decontamination hrs $18,94 582 $11,022 hrs $205.10 257 $52,712 hrs $133.14 . 65 $8,654 hrs $94.96 65 $6,173 hrs $80.38 66 $5,225 hrs $107:49 66 $6,987 hrs $70.59 65 $4,588 hrs $22.12 582 $12,875 $108,236 Ore Storage Pad Decontamination Resource Description Equipment Operators Cat 637 Scraper Cat 988 Loader Cat DSN Dozer With Ripper Cat 07 Dozer Cat 651 WatenA-agon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Ore Storage Pad Decontamination hrs $18.94 429 $8,125 hrs $205.10 189 $38,765 hrs $133,14 48 $6,391 hrs $94.96 48 $4,558 hrs $80.38 48 $3,858 hrs $107,49 48 $5,159 hrs $70.59 48 $3,388 hrs $22.12 429 $9,490 $79,735 Equipment Storage Area Cleanup Resource Description Equipment Operators Cat 637 Scraper Cat 988 Loader Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Watenvagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Equipment Storage Area Cleanup hrs $18.94 153 $2,898 hrs $205.10 68 $13,947 hrs S133.14 17 $2,263 hrs $94.96 17 $1,614 hrs $80.38 17 $1,366 hrs $107.49 17 $1,827 hrs $70.59 17 $1,200 hrs $22.12 153 $3,385 $28,501 11/11/2010 - 8:23 AM-WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Revegetate Mill Yard & Ore Pad Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 231 $4,375 hrs $206.10 132 $27,074 hrs $133.14 0 $0 hrs $94.96 . 33 $3,134 hrs $80.38 33 $2,653 hrs $107.49 0 $0 hrs $70.59 33 -.. $2,329 Acre $322.50 50 $16,125 hrs $22.12 231 $5,110 Equipment Operators Gat 637 Scraper Cat 988 Loader Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Watenwagon Cat 14G Motorgrader Seed Mix Equipment Maintenance (Butler) Total Revegetate Mill Yard & Ore Pad Total Demolition and Decontamination $60,800 I $1,353,961[ CLEANUP OF WINDBLOWN CONTAMINATION Scoping Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50,00 100 $5,000 Survey Crew hrs $15.91 752 $11,961 Sample Crew hrs $15.91 1.312 $20,868 Total Scoping Survey $37,829 Characterization Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 472 $23,600 Sample Crew hrs $15.91 1.136 $18,069 Total Characterization Survey $41,669 Final Status Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 300 $15,000 Sample Crew hrs $15.91 3.552 $56,497 Total Final Status Survey $71,497 11/11/2010 - 8:23 AM-WMM Rec Plan Est October 2010 Rev 4.4 Oeriison Mines (USA) Corp, White Mei;a Mill MILL DECOMMISSIONING Windblown Cleanup Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat D8N Dozer With Ripper Cat D7 Dozer Cat 14H Motorgrader Soil Samples Survey Crew Sample Crew Equipment Maintenance (Butler) Total Windblown Cleanup Quality Control Resource Description hrs $18:94 1,190 $22,537 hrs $205:10 680 $139,471 hrs $94.96 170 $16,144 hrs $80.38 170 $13,665 hrs $70.59 170 $12,000 each $50,00 500 $25,000 hrs $15.91 163 $2,593 hrs $15.91 83 $1,320 hrs $22.12 1.190 $26,325 Units Cost/Unit Task Units $259,055 Task Cost Quality Control Contractor Total Quality Control Total Cleanup Windblown Contamination hrs $62.00 2,080 $128,960 $128,960 I $539,010] Conventional Ore Disposal Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 1,070 $20,272 Cat 770 Haul Truck (3) hrs $93.53 612 $57,264 Cat 988 Loader hrs $133.14 204 $27,171 Cat 651 WatenA/agon hrs $107.49 204 $21,936 Cat 14G Motorgrader hrs $70.59 50 $3,529 Equipment Maintenance (Butler) hrs $22.12 1,070 $23,679 Total Conventional Ore Disposal Total Quantity $153,852 120,000 Cubic Yards* 196 Cubic Yards per Truck per hour 612 Truck Hours * 162,000 tons maximum projected for December 2010 Alternate Feed Disposal Cabot and FMRI Material Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18:94 158 $2,984 Cat 770 Haul Truck (3) hrs $93.53 65 $6,035 Cat 988 Loader hrs $133.14 22 $2,863 Cat 651 Waterwagon hrs $107.49 22 $2,312 Cat 14G Motorgrader hrs $70.59 50 $3,529 Equipment Maintenance (Butler) hrs $22.12 158 $3,485 Total Cabot & FMRI Material Total Quantity 12,646 Cubic Yards* (as of 01/31/2010) 196 Cubic Yards per Truck per hour 65 Truck Hours $21,207 11/11/2010 - B:23 AM-WMM Rec Plan Est October 2010 Rev 4 4 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING * Includes Linde, Cabot and FMRI Cameco Barrels and Honeywell Barrels Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $16.67 296 $4,929 Flat Bed Trailer and Tractor* hrs $55:00 296 $16,260 Fork Lift (2) hrs $18.00 591 $10,643 Equipment Maintenance (Butler) hrs $22.12 296 $6,540 Total Cameco and Honeywell Barrels • includes operator 29,563 Barrels (as of 01/31/2010) 40 Barrels per toad 0.4 Hours per load 296 Truck Hours $38,372 Tons lbs, per barrel No. Drums CaF2 1,083 727 2,978 Calcined 2,547 320 15,919 Regen 329 406 1.621 KF 1,305 309 8,447 UF4 164 547 599 5,428 29,563 Sub-Total Alternate Feed Disposal I $59,579] TOTAL MILL DECOMMISSIONING I $2,106,40Tj 11/11/2010 • 8:23 AM-V\^M Rec Plan Est October 2010 Rev 4 4 Denison Mines (USA) Corp. ^ White Mesa Mill Celll RECLAMATION OF CELL 1 RECLAMATION OF CELL 1 Dewatering of Cell 1 Resource Description Units Cost/Unit Task Units Task, Cost Dewatering of Cell 1 hrs $0.48 62,400 $30,000 Total Dewatering of Cell 1 $30,000 Crystal Removal Resource Description Units Cost/unit Task Units Task Cost Equipment Operators hrs $18.94 2,695 $51,040 Cat 770 Truck hrs $93.53 2,157 $201,745 Truck Drivers hrs $16.67 2,157 $35,966 Cat 988 Loader hrs $133.14 539 $71,762 Cat DSN Dozer With Ripper hrs $94.96 539 $51,186 Cat 365 Excavator hrs $128.07 539 $69,029 Cat 651 Waterwagon hrs $107.49 539 $57,935 Cat 146 Motorgrader hrs $70.59 ) 539 $38,047 Equipment Maintenance (Butler), hrs $22.12 4,852 $107,335 Total Crystal Removal $684,045 Contaminated Materials Removal Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 616 $11,666 Cat 637 Scraper hrs $205.10 308 $63,172 Cat DSN Dozer With Ripper hrs $94.96 77 $7,312 Cat 825C Compactor hrs $93.85 77 $7,227 Cat 651 Waterwagon hrs $107.49 77 $8,276 Cat 14G Motorgrader hrs $70.59 77 $5,435 Equipment Maintenance (Butler) hrs $22.12 616 $13,627 Total Contaminated Materials Removal $116,716 Topsoil Application Resource Description Units Cost/Unit Task Units Task Cost Equipment Operatof^ hrs $18.94 202 $3,826 Cat 637 Scraper hrs $205.10 82 $16,819 Cat DSN Dozer With Ripper hrs $94.96 40 $3,799 Cat 651 Waterwagon hrs $107.49 40 $4,299 Cat 14G Motorgrader hrs $70.59 40 $2,824 Equipment Maintenance (Butler) hrs $22.12 202 $4,469 Total Topsoil Application $36,034 11/11/2010 - 8:24 AM - WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 1 Construct Channel Resource pescription Units Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat 770 Truck Truck Drivers Gat 988 Loader Drilling & Blasting Contractor Cat 14G Motorgrader Gat DSN Dozer With Ripper Equipment Maintenance (Butler) Total Construct Channel hrs $18,94 758 $14,356 hrs $205.10 348 $71,376 hrs $93.53 404 $37,786 hrs $16.67 404 $6,736 hrs $133.14 170 $22,634 BOY $2.25 67.000 $151,050 hrs $70.59 120 $8,471 hrs $94.96 120 $11,396 hrs $22.12 1.162 $25,706 $349,510 Place Clay Liner Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 355 $6,723 hrs $205.10 0 $0 hrs $93.85 60 $5,631 hrs $94.96 60 $5,698 hrs $80.38 0 $0 hrs $107.49 60 $6,449 hrs $92.10 60 $5,526 hrs $62.33 30 $1,870 hrs $68.33 435 $29,722 hrs $16.67 435 $7,253 hrs $70.59 85 $6,000 hrs $22.12 1.225 $27,099 Equipment Operators Cat 637 Scraper Gat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Watenft/agon Cat 980 Loader 5000 Gallon Water Truck Highway Trucks Truck Drivers Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Clay Liner $101,971 Place Lower Random Fill Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 602 $11,401 hrs $205.10 172 $35,278 hrs $93.85 86 $8,071 hrs $94.96 86 $8,167 hrs $80.38 86 $6,913 hrs $107.49 86 $9,244 hrs $70.59 86 $6,071 hrs $22.12 602 $13,317 Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Lower Random Fill $98,462 11/11/2010 - 8:24 AM - WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp, White Mesa Mill RECLAMATION OF CELL 1 Clay Cap Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 305, $5,776 hrs $205.10 0 $0 hrs $93.85 55 $5,162 hrs $94.96 55 $5,223 hrs $80.38 0 .$0 hrs $107.49 55 $5,912 hrs $70.59 55 $3,882 hrs $92.10 55 $5,065 hrs $62.33 30 $1,870 hrs $68.33 440 $30,063 hrs $1667 440 $7,337 hrs $22,12 305 $6,747 Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Gat 980 Loader 5000 Gallon Water Truck Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Cap $77,038 Upper Random Fill . Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader 5000 Gallon Water Truck Equipment Maintenance (Butler) hrs $18.94 688 $13,030 hrs $205,10 172 $35,278 hrs $93.85 86 $8,071 hrs $94.96 86 $8,167 hrs $80.38 86 $6,913 hrs $107.49 86 $9,244 hrs $70,59 86 $6,071 hrs $62.33 86 $5,360 hrs $22.12 688 $15,220 Total Place Upper Random Fill $107,354 11/11/2010 - 8:24 AM - WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp. White Mesa Miil RECLAMATION OF CELL 1 Rock Armor and Rip Rap Filter Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) hrs $18.94 90 $1,704 Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) hrs $80.38 30 $2,411 Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) hrs $107.49 30 $3,225 Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) hrs $70.59 30 $2,118 Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) CY $5.79 8.607 $49,813 Equipment Operators Cat D7 Dozer Cat 651 WatenA/agon Cat 14G Motorgrader Rock Cost Delivered Equipment Maintenance (Butler) hrs $22.12 90 $1,991 Total Place Rock Armor and Rip Rap Filter $61,262 Quality Control Resource Description Units , Cost/Unit Task Units Task Cost Quality Control Contractor hrs $62.00 800 $49,600 Total Quality Control $49,600 TOTAL RECLAMATION OF CELL 1 || $1,711,993| 11/11/2010 - 8:24 AM - WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp. White Mesa Mill Cell 2 RECLAMATION OF CELL 2 Obtain Permits for Clay Borrow Site - Section 16 . Resource Description Units Cost/Unit Task Units Permits & Licenses ea $10,000.00 Task Cost $50,000 Total Obtain Permits for Clay Borrow Site - Section 16 Place Remainder of Bridging (Platform) Lift Resource Description Units Cost/Unit Task Units $50,000 Task Cost Equipment Operators Cat 627F Scraper Cat815C Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Equipment Maintenance (Butler) hrs $18.94 0 $0 hrs $205.10 0 $0 hrs $93.85 0 $0 hrs $94.96 0 $0 hrs $80.38 0 $0 hrs $107.49 0 $0 hrs $70:59 0 $0 hrs $22.12 0 $0 Total Place Remainder of Bridging (Platform) Lift Place Lower Random Fill (12") Resource Description Units $0 Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 WatepA/agon Gat 14G Motorgrader Equipment Maintenance (Butler) Total Place Lower Random Fill (12") Clay Layer Resource Description Equipment Operators Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Watenwagon Cat 14G Motorgrader Gat 980 Loader 5000 Gallon Water Truck Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Layer Cost/Unit Task Units Task Cost hrs $18.94 902 $17,083 hrs $205.10 402 $82,452 hrs $93.85 100 $9,385 hrs $94,96 100 $9,496 hrs $80.38 100 $8,038 hrs $107.49 100 $10,749 hrs $70.59 100 $7,059 hrs $22.12 902 $19,954 Units Cost/Unit Task Units $164,216 Task Cost hrs $18.94 1,720 $32,575 hrs $93,85 325 $30,502 hrs $94,96 300 $28,489 hrs $80.38 0 $0 hrs $107.49 300 $32,246 hrs $70.59 320 $22,588 hrs $92.10 300 $27,629 hrs $62.33 175 $10,908 hrs $68.33 2,400 $163,982 hrs $16.67 2.400 $40,018 hrs $22.12 1,720 $38,050 $426,987 11/11/2010-6:23 AM-WMM Rec Plan Est October 2010 Rev4,4 Denison Mines (USA) Corp, White Mesa Mill RECLAMATION OF CELL 2 Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 1.990 $37,688 Cat 637 Scraper hrs $205.10 796 $163,263 Cat 825 Compactor hrs $93.85 199 $18,677 Cat DSN Dozer With Ripper hrs $94.96 199 $18,898 Cat D7 Dozer hrs $80.38 199 $16,996 Cat 651 Waterwagon hrs $107.49 199 $21,390 Cat 14G Motorgrader hrs $70.69 199 $14,047 5000 Gallon Water Truck hrs $62.33 199 $12,404 Equipment Maintenance (Butler) hrs $22.12 1,990 $44,022 Total Place Upper Random Fill $346,385 Rock Armor and Rip Rap Filter Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 900 $17,045 Cat D7 Dozer hrs $80.38 300 $24,115 Cat 651 Waterwagon hrs $107.49 300 $32,246 Cat 14G Motorgrader hrs $70.59 300 $21,176 Rock Cost Delivered CY $5.79 72,945 $422,172 Equipment Maintenance (Butler) hrs $22.12 900 $19,910 Total Place Rock Armor and Rip Rap Filter $536,663 Quality Control Resource Description Units Cost/Unit Task Units Task Cost Quality Control Contractor hrs $62.00 1,050 $65,100 Total Quality Control TOTAL RECLAMATION OF CELL 2 $65,100 I $1,S89,352| 11/11/2010 - 8:23 AM - WMM Rec Plan Est October 2010 Rev 4,4 Denison Mines (USA) Corp White Mesa Mill Ceil 3 RECLAMATION OF CELL 3 RECLAMATION OF CELL 3 Dewatering of Cell 3 Resource Description Units Cost/Unit Task Units Task Cost Dewatering of Cell 3 Total Dewatering of Cell 3 Place Remainder of Bridging (Platform) Lift Resource Description hrs $0.48 62,400 $30,000 Units Cost/Unit Task Units $30,000 Task Cost hrs $18.94 1,856 $35,155 hrs $206.10 825 $169,211 hrs $93.85 206 $19,357 hrs $94.96 206 $19,586 hrs $80.38 206 $16,579 hrs $107.49 206 $22,169 hrs $70.59 206 $14;559 hrs $22.12 1.856 $41,064 Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Remainder of Bridging (Platform) Lift Place Lower Random Fill (12") Resource Description Units Cost/Unit Task Units $337,680 Task Cost Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Watenwagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Lower Random Fill (12") Clay Layer Resource Description hrs $18.94 1.422 $26,931 hrs $205.10 452 $92,707 hrs $93.85 194 $18,207 hrs $94.96 194 $18,423 hrs $80.38 194 $15,594 hrs $107.49 194 $20,852 hrs $70.59 194 $13,694 hrs $22.12 1.422 $31,467 Units Cost/Unit Task Units $237,867 Task Cost hrs $18.94 1.835 $34,753 hrs $205.10 0 $0 hrs $93.85j 350 $32,849 hrs $94.96 320 $30,389 hrs $80,38 0 $0 hrs $10749 320 $34,396 hrs $70.59 350 $24,706 hrs $92.10 320 $29,471 hrs $62.33 175 $10,908 hrs $68.33 2,560 $174,915 hrs $16.67 2,560 $42,685 hrs $22.12 1.835 $40,594 Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Cat 980 Loader Cat 651 Waterwagon Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Layer $455,664 11/11,'2010 - 8:23 AM - WMM Rec Plan Est October 2010 Rev 4.4 Denison Mines (USA) Corp. White Mesa Mil! RECLAMATION OF CELL 3 Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 2,364 $44,762 Cat 637 Scraper hrs $205.10 868 $178,031 Cat 825 Compactor hrs $93.85 249 $23,393 Cat DSN Dozer With Ripper hrs $94.96 249 $23,670 Cat D7 Dozer hrs $80,38 249 $20,035 Cat 651 WatenA/agon hrs $107.49 249 $26,791 Cat 14G Motorgrader hrs $70.69 249 $17,594 5000 Gallon Water Truck hrs $62.33 249 $15,536 Equipment Maintenance (Butler) hrs $22.12 2,364 $52,285 Total Place Upper Random Fill $402,097 Rock Armor and Rip Rap Filter Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 870 $16,477 Cat D7 Dozer hrs $80.38 290 $23,311 Cat 651 Waterwagon hrs $107.49 290 $31,171 Cat 14G Motorgrader hrs $70.59 290 $20,470 Rock Cost Delivered CY $5.79 70,455 $407,761 Equipment Maintenance (Butler) hrs $22.12 870 $19,246 Total Place Rock Armor and Rip Rap Filter $518,436 Quality Control Resource Description Units Cost/Unit Task Units Task Cost Quality Controi Contractor hrs $62.00 1,200 $74,400 Total Quality Control TOTAL RECLAMATION OF CELL 3 $74,400 I $2,0S6,lS 11/11/2010 - 8:23 AM - WMM Rec Plan Est October 2010 Rev 4,4 Denison Mines (USA) Corp. White Mesa MHI Cell 4A RECLAMATION OF CELL 4A Dewatering of Cell 4A Resource Description Units Cost/Unit Task Units Task Cost Dewatering of Cell 4A Total Dewatering of Cell 4A Place Bridging (Platform) Lift Resource Description hrs $0.48 62,400 $30,000 Units $30,000 Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Bridging (Platform) Lift Place Lower Random Fill Resource Description , hrs $205.10 671 $137,545 hrs $17.72 671 $11,881 hrs $93.85 168 $15,735 hrs $13.09 168 $2,194 hrs $94.96 168 $15,921 hrs $13.09 168 $2,194 hrs $80.38 168 $13,476 hrs $13.09 168 $2,194 hrs $107.49 168 $18,020 hrs $16.67 168 $2,795 hrs • $70.59 168 $11,834 hrs $18.91 168 $3,170 hrs $22.12 2.850 $63,049 Units $300,010 Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Lower Random Fill Clay Layer Resource Description hrs $18.94 882 $16,698 hrs $205.10 ' 392 $80,370 hrs $93.85 98 $9,194 hrs $94.96 98 $9,303 hrs $80.38 98 $7,874 hrs $107.49 98 $10,530 hrs $70.59 98 $6,915 hrs $22.12 882 $19,504 Units $160,387 Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat D8N Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 140 Motorgrader Cat 980 Loader 5000 Gallon Water Truck Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Layer hrs $18,94 1.060 $20,075 hrs $205.10 0 $0 hrs $93.85 200 $18,771 hrs $94.96 180 $17,094 hrs $80.38 0 $0 hrs $107.49 180 $19,347 hrs $70.59 200 $14,118 hrs $92.10 150 $13,815 hrs $62:33 150 $9,350 hrs $38.33 1,440 $55,189 hrs $16.67 1.440 $24,011 hrs $22.12 1,060 $23,449 $215,218 WMM Rec Plan Est October 2010 Rev 4 4 upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 1,175 $22,258 Cat 637 Scraper hrs $205,10 470 $96,421 Cat 825 Compactor hrs $93,85 118 $11,030 Cat DSN Dozer With Ripper hrs $94.96 118 $11,161. Cat D7 Dozer hrs $80.38j 118 $9,447 Cat 651 Waterwagon hrs $107.49 118 $12,633 Cat 14G Motorgrader hrs $70.59 118 $8,296 5000 Gallon Water Truck hrs . $62.33 118 $7,326 Equipment Maintenance (Butler) hrs $22.12 1,175 $25,999 Total Place Upper Random Fill . $204,571 Rock Armor and Filter Layer Resource Description Units Cost/Unit Task Units Task Cost Equtprnent Operators hrs $18.94 720 $13,636 Cat D7 Dozer hrs $80.38 240 $19,292 Cat 651 Waterwagon hrs $107.49 240 $25,797 Cat 14G Motorgrader hrs $70.59 240 $16,941 Rock Cost Delivered CY $5.79 48,695 $281,824 Equipment Maintenance (Butler) hrs $22.12 720 $15,928 Total Place Rock Armor and Filter Layer $373,417 Quality Control Resource Description Units Cost/Unit Task Units Task Cost OuaJity Control Contractor hrs $62,00 1,045 $64,790 Total Quality Controi TOTAL RECLAMATION OF CELL 4A $64,790 I $1,348,393| WMM Rec Plan Est Octot)er 2010 Rev 4.4 Cell 4B RECLAMATION OF CELL 4B Dewatering of Cell 4B Resource Description Units Cost/Unit Task Units Task Cost Dewatering of Cell 4B Total Dewatering of Cell 4B hrs $0.48 62,400 $30,000 $30,000 Place Bridging (Platform) Lift Resource Description Units Cost/Unit Task Units Task Cost hrs $205.10 671 $137,546 hrs $17.72 671 $11,881 hrs $93.85 168 $15,735 hrs $13.09 168 $2,194 hrs $94.96 168 $15,921 hrs $13.09 168 $2,194 hrs $80.38 168 $13,476 hrs $13.09 168 $2,194 hrs $107.49 168 $18,020 hrs $16.67 168 $2,795 hrs $70.59 168 $11,834 hrs $18.91 168 $3,170 hrs $22.12 2,850 $63,049 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Bridging (Platform) Lift Place Lower Random Fill Resource Description $300,010 Units Cost/Unit Task Units Task Cost Equipment Operators Cat 637 Scraper Cat 825 Compactor Cat DSN Dozer With Ripper Cat D7 Dozer Cat 651 Waterwagon Cat 14G Motorgrader Equipment Maintenance (Butler) Total Place Lower Random Fill hrs $18.94 882 $16,698 hrs $205.10 392 $80,370 hrs $93.85 . 98 $9,194 hrs $9496 98 $9,303 hrs $80.38 98 $7,874 hrs $107.49 98 $10,530 hrs $70.59 98 $6,915 hrs $22.12 882 $19,504 $160,387 WMM Rec Plan Est October 2010 Rev 4.4 Clay Layer Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18,94 1,060 $20,075 Cat 637 Scraper hrs $205.10 0 $0 Cat 825 Compactor hrs $93.85 200 $18,771 Cat D8N Dozer With Ripper hrs $94.96 180 $17,094 Cat D7 Dozer hrs $80.38 0 $0 Cat 651 WatenA/agon hrs $107.49 180 $19,347 Cat 14G Motorgrader hrs $70.59 200 $14,118 Gat 980 Loader hrs $92.10 150 $13,815 5000 Gallon Water Truck hrs $62.33 150 $9,350 Highway Trucks hrs $38.33 1.440 $55,189 Truck Drivers hrs $16.67 1.440 $24,011 Equipment Maintenance (Butler) hrs $22.12 1.060 $23,449 Total Place Clay Layer $215,218 Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Equiphient Operators hrs $18.94 1.199 $22,709 Cat 637 Scraper hrs $205.10 480 $98,372 Cat 825 Compactor hrs $93.85 120 $11,253 Cat DSN Dozer With Ripper hrs $94,96 120 $11,387 Cat D7 Dozer hrs $80,38 120 $9,638 Cat 651 Waterwagon hrs $107.49 120 $12,888 Cat 14G Motorgrader hrs $70.59 120 $8,464 5000 Gallon Water Truck hrs $62.33 120 $7,474 Equipment Maintenance (Butler) hrs $22.12 1,199 $26,525 Total Place Upper Random Fill $208,710 Rock Armor and Filter Layer Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $18.94 600 $11,363 Cat D7 Dozer hrs $80.38 200 $16,076 Cat 651 WatenA/agon hrs $107.49 200 $21,497 Cat 14G Motorgrader hrs $70.59 200 $14,118 Rock Cost Delivered CY $5.79 48,695 $281,824 Equipment Maintenance (Butler) hrs $22.12 600 $13,273 Total Place Rock Armor and Filter Layer $368,152 Quality Controi Resource Description Units Cost/Unit Task Units Task Cost Quality Control Contractor hrs $62.00 1,045 $64,790 Total Quality Control $64,790 TOTAL RECLAMATION OF CELL 4B 1 $1,337,2661 WMM Rec Plan Est October 2010 Rev 4.4 Miscellaneous MISCELLANEOUS ITEMS MISCELLANEOUS ITEMS Equipment Mobilization Resource Deseription Units Cost/Unit Task Units Task Cost Butler Machmeiy Mobilization LS $351,322 1 $351,322 Other Equipment IVlobilization LS $4,550 1 $4,550 Cranes LS $2,700 2 $5,400 Total Equipment Mobilization $381,272 Office Facilities Resource Description Units Cost/Unit Task Units Task Cost Install New Powerline LS $16,000 1 $15,000 Utilities for Offices months $1,000 36 $36,000 Temporary Office Trailer months $1,500 3 $4,500 Temporary Office Trailer, mob, demob & setup LS $3,000 1 $3,000 Total Office Facilities ,-$58,500 Decontamination Pad Resource Descrtptton Units Cost/Unit Task Units Task Cost Latxjrers hrs $13 8,320 $104,046 Construct Wheei Wash Facility LS $180,000 1 . $180,000 Total Decontamination Facilities Faciiities constructed in 2000 & 2008 ($180,000) $104,046 Plug and Abandon WW2 Resource Description Units Cost/Unit Task Units Task Cost Laborers hrs $0 6,320 $0 Contract Sen^ices LS $20,000 1 $20,000 Total Plug and Abandon WW2 $20,000 Slimes Drain Evaporation Pond Resource Description Units Cost/Unit Task Units Task Cost Equiprnanf Operators hrs $18.94 200 $3,786 60 mil HDPE Liner sq ft. $0.35 960.000 $336,000 Cat 637 Scraper hrs 8205,10 100 $20,510 Cat 825 Compactor hrs $93.85 25 52,346 Cat D7 Dozer hrs $80.38 25 $2,010 Cat 651 Waterwagon hrs $107.49 25 $2,687 Cat 14G Motorgrader hrs $70.59 25 SI,765 Equipment IVIaintenance (Butler) hrs S22;12 200 $4,424 Total Slimes Drain Evaporation Pond $373,530 MANAGEMENT/SUPPORT Resource Descfiplioft Units Cost/Unit Task Units Task Cost Panager/Engineer hrs $58.19 6.240 $363,114 Radiation Safety Officer hrs $45.47 6,240 $283,713 Secretary hrs $18.39 6,240 $114,744 Clerk hrs $15.13 4,866 $73,621 Environmental Technician ( Part time. 4.5 years) hrs $25.60 4,886 $124,590 Maintenance Foreman hrs $33; 36 6,240 S208.185 Chemist hrs $26.77 2,080 $55,678 Security hrs $9 85 18,720 $184,462 Safety Engineer hrs $25.60 4,160 $106,513 Misc. Materials & Supplies hrs $36.45 6,240 $227,448 Health Physics Costs hrs $64,81 2,080 $134,800 Environmental Monitoring Costs. Laboratory years $71,620,00 7.0 $501,340 Total Management/Support TOTAL MISCELLANEOUS ITEMS $2,378,209 \ $3,295.5571 11/11/2010 - 9:0/ AM-WMM Roc Plan Esl October 2010 Rev 4 4 Denison Mines (USA) Corp White Mesa Mill Rock Productloh ROCK PRODUCTION COST Assumptions: Rock is obtained from gravel source north of Blanding, Utah. BLM Public Pit Rip Rap Rock is processed by screening only, no crushing is required, 1.25 CY of feed for 1 CY of product Filter material is produced from Rip Rap reject Rock is produced and stockpiled at the site Site is 7 road miles from the mill; 6 miles of which is paved public highway Rock will be hauled in 22 CY bellydump trucks, contract haulers {$85.00/hr) Rock will be dumped in windrows on Tailings Ceils by trucks, spread by grader, and spread by D7 Dozer Trucks can average 30 MPH (1.75 rounds/hr) Plant Product Material Feed Throughput Required (CY) Reject Factor to Plant (CY) (CY/hr) Rip Rap matrial fed to plant 189,000 25.0% 236,250 122 Filter material fed to plant 25,500 10.0% 28,050 122 214,500 Plant Operating Hours 1,900 200 2,100 PRODUCTION OF RIPRAP Resource Description Units Cost/Unit Task Units Task Cost hrs $18.94 2.475 $46,874 hrs $12.51 2.100 $26,262 hrs $94.96 375 $35,612 hrs $92.10 2,100 $193,404 hrs $64.13 2,100 $134,670 CY $0.60 214.500 $128,700 hrs $85.00 5.571 $473,571 hrs $22.12 2.475 $54,752 Equipment Operators Laborer Cat DSN Dozer With Ripper Cat 980 Loader Screening Plant w/conveyors* BLM Usage Fee Contract Highway Trucks - Bellydumps* Equipment Maintenance (Butler) Total Production of RipRap RIPRAP COST PER CUBIC YARD DELIVERED $1,093,845 * Cost Quoted from Power Motive Corporation, Denver, Colorado updated February 22, 2010 $7,000 plus $3,700 for conveyors, 176 hours per month for one month, plus screen set up at $2,000. Mob and Demob - $ 5,000.00 Cost quoted from Dennis Cosby, Cosby Trucking, Inc., Blanding. Utah, Updated March 01, 2010 (includes ownership expense, fuel, maintanence and operator) 11/11/2010 - 9:07 AM - WMM Rec Plan Est October 2010 Rev 4.4 Inlernatbnal Uranium (USA) Corp White Mesa Mill Equipment Costs WHITE MESA MILL RECLJ\MATION COST HOURLY EQUIPMENT COSTS 2010 DOLLJiiRS EQUIPMENT COSTS Actual equipment rates quoted from North Cenlrai Rental & Leasing, LLC, 12 month rental period March 2, 2010 1 RATE MTce FUEL FUEL® Tires and GET TOTAL Mob/Demob j Mob/Demob Operating Hrs Replacement Cost Umlsj MONTHLY 1 HOURLY EXPENOABLES USAGE J1.80S COST per machine j Totals per Month 637E Scraper 4 26,200 148 86 8.80 23.5 4244 5,00 S205;10 S23,30O $93,200 704 3 1,940,000 D8R Dozer 1 13,000 73.86 4;75 8.5 15.35 1.00 $94,96 $15,500 $15,500 176 $ 650.000 D7R Dozer 1 11,000 62.50 4.24 7.0 12,64 1 00 $80.38 $13,700 $13,700 176 $ 550,000 e25H Compactor 1 11,550 65.63 • 4.25 13.0 23.48 0.50 $93:85 $14,300 $14,300 176 $ 250.000 980 H Loader 1 11,650 66.19 4.65 9:0 16.25 5,00 $92.10 $14,100 $14,100 176 $ 300.000 988 H Loader 1 18,000 102.27 6.00 11.0 19.87 5.00 $133.14 $17,000 $17,000 176 $ 345,000 770 Haul Truck 4 11,850 67.33 6;85 8.5 15.35 4.00 $93,53 $14,600 $58,400 704 $ 2,000.000 365BL Excavator 1 17,000 96.59 7^00 13.0 23.48 1.00 $128,07 $26,400 $26,400 176 $ 425.000 651 Water Wagon 1 12,150 69.03 575 17.0 30.70 2.00 $107:49 $15,750 $15,750 176 $ 250,000 5000 gal Water Truck 1 6.850 38 92 3,35 10.0 18,06 2.00 $62-33 $7,100 $7,100 176 $ 175,000 14H/Ripper Motor Grader 1 9,100 5170 3.95 5.5 9;93 5.00 , $70.59 $11,150 $11,150 176 $ 265,000 1 $286,600 2,992 Equipment Rental Rate Quoted by WoridWide Rental Services (02/19/2010) for PC 300 Excavator with Shear PC 300 w/ Shear Small tools allocation - Demolition - $1.35/mechanic labor hour for pxygen/ace^lene. expendables 19,-500.00 110.80 17.99 12.5 $151.36 Mob/Dertiob S4;550 $ 450.000 Butler Equipment Maintenance Cost Butler Maintained Planned Equipment Operating Total Maintenance Monthly Planned hours/month Operating Fuel Cost per Cost per Maintenance Operating (other hours per Fuel Usage month, 21 Operating Flat Rate Hours/month equipment month per day, gal, days Hour Mob/Demob $65,430 2,992 570 3,562 20 $ 758.52 1 $22 12 S . .. 64,722 RATE MTCE FUEL FUELe TOTAL Crane Rental Rates MONTHLY 1 HOURLY i EXPEMDABLES USAGE. , S1.806 COST 60 ton Hydraulic Crane 8.600 48;86 2-15 15.0 27.09 $78.10 30 ton Hydraulic Crane 5,500 31.25 2.15 10.0 18.06 $51.46 2,000 700 $ 250,000 $ 175,000 Rental Rates updated from Honnen Equipment, 02/22/2010 Power Motive - Screen deck and conveyors $ 200,000 $ 8,225,000 $ 82,250 n.'l'/jmn - AfJI - WMM Rec PI State of Utah JONM. HUNTSMAN. JR. Govemor GARY HERBERT Lieutenant Governor Department of Environmental Quality William J. Sinclair Acting Executive Director DIVISION OF RADIATION CONTROL Dane L. Finerfrock Director MEMORANDUM TO: FROM: DATE: SUBJECT: File IUC03.05 Surety Dave Rupp, P-E.^^^^^ ^ May 20, 2009 Surety Review in 2009 and 2010 May 21, 2009 DRC letter to DUSA This MEMO is written to supplement the May 21, 2009 DRC letter to DUSA (F:\ . . . \Surety\2009\Cmtl 05-21-09.doc) on the 2009 surety estimate. However, this memo also will have application to the 2010 estimate. The content of the letter itself is self explanatory. However, some additional study was done regarding power equipment time management and costing, especially regarding the maintenance and repair costs for the equipment. Maintenance and repair costs are a significant item in the project costs. This aspect is not easily broken down. A good review would involve a parallel time bar and critical path analysis to determine if both the amount of equipment and the maintenance are adequate. A thorough review on this was not done due to time constraints. Evidence, that these items are inadequate, has not been discovered. Evidence is needed to justify a request to DUSA to demonstrate the adequacy of the equipment fleet and related maintenance. The passage of real time is an important aspect of such a review. As mentioned, a parallel time bar and critical path analysis would be needed, to determine if both the amount of equipment and the maintenance time is adequate. Budgeting in the surety, to do project scheduling could be requested, and probably should be. However, at that point, if a shortfall is discovered, it would be too late to budget in more equipment and maintenance costs. Additional thoughts on the power equipment and maintenance budget are preserved below: At the bottom of page one of the February 2, 2009 letter from North Central Rental and Leasing (NCRL), two separate maintenance rates for the power equipment are discussed. One is an hourly maintenance rate for some materials which covers, "material part items only such as air, oil, and fuel filters," etc. This hourly maintenance rate is included in the equipment rental cost and would be billed monthly by NCRL for the hours on the machines. Separately, a monthly maintenance service rate is discussed below. This monthly rate appears to be a constant stand alone monthly fee, which includes, "labor, specialized lube trucks, support vehicles and equipment, specialized tooling,. . . parts trailers and inventories," etc. 168 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850 Telephone (801) 5-36-4250 • Fax (801-5-33-4097 • T.D.D. (801)536-4414 www.deq.Utah.)i<)\' Printed on 100% recycled paper ^ Page 2 of 2 do the reclamation. That said, is It mora/protectlve of the public to have a surety assume that we are going to use a private gravel source, and pay a fair market price? Is it fair to assume that DRC will always be able to get a free use permit in the future? Jj/l /MufJ-/Jj2jJ d^a^^^ , ^ /T-tA^ r/- ^^^^^ife^^-AjC^ 6. We can assign an agent or contractor to remove gravel under our free use permit (3604.24). Discussion: good, the State's 3rd party contractor can do the mining under a DRC held free use permit. 7. BLM may require a free uise piBr^nit holder to post a reclamation bond to ensure the gravel pit is reclaimed. (3604.25) Discussion: again, I don't see how even under a free use permit, we would avoid any / all costs for gravel. Let me know what you think. If we need further clarification or other questions answered, please start be calling Terry Snyder at the State BLM office at 801-539-4026. In our surety reviews we need to examine the issue of gravel costs. For EnergySolutions, I want to tackle that in the next surety report, due in 12/09. For the U-mills, it has already come up this year with DUSA. Let's not drop the ball on this issue. Loren >>> Dave Rupp 6/8/09 3:25 PM >>> FYI: Attached Is the subject website explaining this rule. http://law.justia.eom/u5/cfr/title43/43-2.l.l.3.67.2.html It discusses competitive and non-competing bid-less sales. 1 file://C:\Documents and Settings\Drupp\Local Settings\Temp\XPgrpwise\4A2E302AEQDOMAlNEQRA... 6/9/2009 Corrrected 2009 Conventional Ore and Alternate Feedstock Inventory Estimate per DUSA Supplied Volumes Below from Submitted Notes in Surety Report: Conventional Ore Material CY Year Source Volume Tonnaqe* 2007 Various Conventional Ores 37,037 50,000 1 2008 Various Conventional Ores 88,889 120,000 2009 Various Conventional Ores 148,148 200,000 Annual Projected Change 59,259 80,000 *Tonnage estimate based on 100 pcf 1.35 100 Bulk (CY) Alternate Feed Material in Storage CY Year Source Comoanv Volume Tonnaqe* 2006 Linde,Cabot,Molycorp,Heritage& Fansteel 43,743 59,053 ^|D07 Linde,Cabot,MoIycorp,Heritage& Fansteel 41,638 56,211 W008 Cabot & Fansteel (FMRI) 8,631 11,652 2009 Linde, Cabot & Fansteel (FMRI) 12,119 16,361 Annual Change 3,488 4,709 *Tonnage estimate based on 100 lbs/cubic foot Cameco Barrels Number Year Source Comoanv Barrels Tonnaqe** 2006 Cameco Barrels 29,972 11,019 2007 Cameco Barrels 9,288 3,415 2008 Cameco & Honeywell Barrels 11,336 4,168 2009 Cameco & Honeywell Barrels 19,049 7,003 Annual Projected Change 7,713 2,836 projected for 2007 projected for 2008 projected for 2009 estimated tons/cy Estimated pcf Changed from original Feb 2009 estimate of 88,000 tons as of 2/29/08 as of 1/31/09 2009* Unknown Units 5,184 Cabot 0.3-0.6% U308 11,177 FMRI (fansteel). No Linde shown. 16,361 Total Tons Match *Per Spread Sheet Submitted: W.M.M. Inventory Accounting Summary Anticipated Alternate Feed Total Tonnage Conventional Ore Anticipated Tonnage TOTAL Cameco Barrels: Calcined, KF, UF4 and Regen at 1,247, 1,007, 202 and 185 respectively.* **Tonnage estimate based on 100 lbs/cubic foot & 55 gal/barrel Equivalent to 7.35 cf/barrel, 735 lbs. or 0.368 tons each 23,364 200.000 223.364 tons Combined Totals for Conventional Ore and Alternate Feed Materials Year 2007 2008 2009 Source Companv Tonnage noted above, expected 2007 Tonnage noted above, expected 2008 Tonnage noted above, expected 2009 Annual Change Number N/A N/A Tonnaqe 109,626 135,820 223-Sit^^ 87,544 tons tons TOTAL Increase of total inventory from previous year expected. Change in expected inventory on site Increase 87,544 tons DENISO MINES December 2, 2011 VIA E-MAIL AND OVERNIGHT DELIVERY Mr. Rusty Lundberg Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850 Denison Mines (USA) Corp. 105017th Street, Suite 950 Denver, CO 80265 USA Tel: 303 628-7798 Fax:303 389-4125 www.denisonniines.com Re: Updated Surety Estimate, White Mesa Mill Dear Mr. Lundberg: Due to a change in the conventional ore processing schedule at the White Mesa Mill, Denison Mines (USA) Corp. ("Denison") is submitting a revised surety estinnate, Revision 4.7, to reflect the additional cost for disposal in the tailings area of a larger quantity of conventional ore than contemplated by the surety estimate dated November 1, 2011 of $19,328,258 (the "November 1 Surety Amount"), which was approved by the Division of Radiation Control on November 15, 2011. The disposal cost for conventional ore is estimated through March of 2012, when the next annual surety update is due. We have also updated the quantities of alternate feed material stored on site to reflect recent processing and projected deliveries to March 2012. Attached for your review is Revision 4.7 of the Mill Decommissioning section of the surety estimate and a revised Summary page detailing the new total cost of $19,420,335 (the "Updated Surety Amount"). This revision adds approximately $92,000 to the currently approved surety amount. Under License Condition 9.5, Denison is required to submit written evidence of the November 1 Surety Amount within 30 days of receipt of your November 15, 2011 letter. However, in light of the foregoing, please advise Denison if you would prefer that we: 1. submit the revised surety documents for the November 1 Surety Amount within 30 days of our receipt of your November 15, 2011 approval, without reference to the Updated Surety Amount. The surety would then be replaced with the Updated Surety Amount, within 30 days after approval of the Updated Surety Amount; or 2. not submit the revised surety documents for the November 1 Surety Amount, but, instead, wait until the Updated Surety Amount is approved, in which case a revised surety that reflects the Updated Surety Amount would be submitted within 30 days after approval of the Updated Surety Amount. If you advise us to follow option 2 above, we will consider that to be your waiver of the requirement to submit the revised surety documents for the November 1 Surety Amount within 30 days of receipt of your November 15 letter. Letter to Mr. Rusty Lundberg Revised Surety Estimate December, 2011 Page 2 Please contact me if you have any questions or require any further information. Yours very truly, DENISON MINES (USA) CORP. Jo Ann Tischler Director, Compliance and Permitting cc: David C. Frydenlund Harold R. Roberts David E. Turk K. Weinel DENISO MINES WHITE MESA MILL RECLAMATION COST ESTIMATE December 2011 Revision 4.7 Mill Decommissioning $2,058,398 Cell 1 $1,671,808 Cell 2 $1,704,415 Cells $2,106,627 Cell 4A $1,360,123 Cell 4B $1,387,762 Miscellaneous $3,637,667 Subtotal Direct Costs $13,926,801 Profit Allowance 10.00% $1,392,680 Contingency 15.00% $2,089,020 Licensing & Bonding 2.00% $278,536 UDEQ Contract Administration 4.00% $557,072 Contractors Equipment Floater $82,250 Automobile and General Liability Insurance $284,600 Long Term Care Fund $809,376 Total Reclamation $19,420,335 Revised Bond Amount $19,420,335 12/2/2011 - 11:08 AM - WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING MILL DECOMMISSIONING Mill Building Demolition Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Mill Building Demolition Ore Feed Demolition Resource Description hrs $16.77 640 $10,736 hrs $12.51 320 $4,002 hrs $1.35 960 $1,296 hrs $95.11 640 $60,872 hrs $16.67 640 $10,671 hrs $134.11 160 $21,458 hrs $17.21 160 $2,754 hrs $130.25 160 $20,840 hrs $20.65 160 $3,304 hrs $147.18 160 $23,548 hrs $20.65 160 $3,304 hrs $103.61 160 $16,577 hrs $15.76 160 $2,522 hrs $65.24 80 $5,219 hrs $15.76 80 $1,261 hrs $18.46 1,360 $25,102 sf $3.30 37,500 $123,750 Units Cost/Unit Task Units $337,218 Task Cost hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 112 $2,067 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Total Ore Feed Demolition SX Building Demolition Resource Description Units Cost/Unit Task Units $18,346 Task Cost hrs $16.77 320 $5,368 hrs $12.51 160 $2,001 hrs $1.35 480 $648 hrs $95.11 320 $30,436 hrs $16.67 320 $5,336 hrs $134.11 80 $10,729 hrs $17.21 80 $1,377 hrs $130.25 80 $10,420 hrs $20.65 80 $1,652 hrs $147.18 80 $11,774 hrs $20.65 80 $1,652 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 560 $10,336 sf $3.30 55,970 $184,701 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total SX Building Demolition $276,430 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev4.7.xls Denison Mines (USA) Corp. Wliite Mesa Mill MILL DECOMMISSIONING CCD Circuit Removal Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total CCD Circuit Removal Sample Plant Removal Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Sample Plant Removal Temporary Storage Building Removal Resource Description Units Cost/Unit Task Units Task Cost hrs $16.77 120 $2,013 hrs $12.51 60 $750 hrs $1.35 180 $243 hrs $95.11 120 $11,414 hrs $16.67 120 $2,001 hrs $134.11 30 $4,023 hrs $17.21 30 $516 hrs $130.25 30 $3,908 hrs $20.65 30 $620 hrs $147.18 30 $4,415 hrs $20.65 30 $620 hrs $103.61 30 $3,108 hrs $15.76 30 $473 hrs $65.24 15 $979 hrs $15.76 15 $236 hrs $18.46 255 $4,707 sf $3.30 15,000 $49,500 Units Cost/Unit Task Units $89,525 Task Cost hrs $16.77 32 $537 hrs $12.51 16 $200 hrs $1.35 48 $65 hrs $95.11 32 $3,044 hrs $16.67 32 $534 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1,042 hrs $20.65 8 $165 hrs $147.18 8 $1,177 hrs $20.65 8 $165 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 56 $1,034 sf $3.30 4,200 $13,860 Units Cost/Unit Task Units $23,033 Task Cost Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Equipment Maintenance (Butler) Concrete Removal Total Temporary Storage Building Removal Truck Shop Removal Resource Description hrs $12.51 8 $100 hrs $1.35 8 $11 hrs $95.11 2 $190 hrs $16.67 2 $33 hrs $134.11 2 $268 hrs $17.21 2 $34 hrs $18.46 4 $74 sf $3.30 600 $1,980 Units Cost/Unit Task Units $2,691 Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator 12/1/2011 -1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls hrs $16.77 32 $537 hrs $12.51 16 $200 hrs $1.35 48 $65 hrs $95.11 24 $2,283 hrs $16.67 24 $400 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1,042 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Truck Shop Removal hrs $20.65 8 $165 hrs $147.18 8 $1,177 hrs $20.65 8 $165 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 48 $886 sf $3.30 4,200 $13,860 $21,991 Boiler Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Boiler Demolition Units Cost/Unit Task Units Task Cost hrs $16.77 160 $2,684 hrs $12.51 80 $1,000 hrs $1.35 240 $324 hrs $95.11 160 $15,218 hrs $16.67 160 $2,668 hrs $134.11 40 $5,364 hrs $17.21 40 $689 hrs $130.25 40 $5,210 hrs $20.65 40 $826 hrs $147.18 40 $5,887 hrs $20.65 40 $826 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 280 $5,168 sf $3.30 2,900 $9,570 $55,435 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Vanadium Oxidation Circuit Removal Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Vanadium Oxidation Circuit Removal hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 112 $2,067 sf $3.30 1,200 $3,960 $22,306 Main Shop/Warehouse Demolition Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Main Shop/Warehouse Demolition hrs $16.77 128 $2,147 hrs $12.51 64 $800 hrs $1.35 192 $259 hrs $95.11 128 $12,174 hrs $16.67 128 $2,134 hrs $134.11 32 $4,292 hrs $17.21 32 $551 hrs $130.25 32 $4,168 hrs $20.65 32 $661 hrs $147.18 32 $4,710 hrs $20.65 32 $661 hrs $18.46 224 $4,134 sf $3.30 19,300 $63,690 $100,382 Decon Pads (2) Demolition Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Decon Pads (2) Demolition hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $18.46 112 $2,067 sf $3.30 1,350 $4,455 $22,801 12/1/2011 -1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Office Building Demolition Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Office Building Demolition hrs $16.77 96 $1,610 hrs $12.51 48 $600 hrs $1.35 144 $194 hrs $95.11 96 $9,131 hrs $16.67 96 $1,601 hrs $134.11 24 $3,219 hrs $17.21 24 $413 hrs $130.25 24 $3,126 hrs $20.65 24 $496 hrs $147.18 24 $3,532 hrs $20.65 24 $496 hrs $18.46 168 $3,101 sf $1.25 12,100 $15,125 $42,644 Septic Tanks and Drain Fields Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Septic Tanks and Drain Fields hrs $16.77 0 $0 hrs $12.51 16 $200 hrs $1.35 32 $43 hrs $95.11 16 $1,522 hrs $16.67 16 $267 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1,042 hrs $20.65 8 $165 hrs $147.18 0 $0 hrs $20.65 0 $0 hrs $18.46 32 $591 $5,040 Misc. Tankage & Spare Parts Removal Resource Description Units Cost/Unit Task Units Task Cost hrs $16.77 48 $805 hrs $12.51 24 $300 hrs $1.35 72 $97 hrs $95.11 48 $4,565 hrs $16.67 48 $800 hrs $134.11 12 $1,609 hrs $17.21 12 $207 hrs $130.25 12 $1,563 hrs $20.65 12 $248 hrs $147.18 12 $1,766 hrs $20.65 12 $248 hrs $18.46 84 $1,550 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Misc. Tankage & Spare Parts Removal $13,759 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Alternate Feed Circuit and Reagent Storage Building Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal hrs $16.77 50 $839 hrs $12.51 50 $625 hrs $1.35 96 $130 hrs $95.11 50 $4,756 hrs $16.67 50 $834 hrs $134.11 34 $4,560 hrs $17.21 34 $585 hrs $130.25 34 $4,429 hrs $20.65 34 $702 hrs $147.18 52 $7,653 hrs $20.65 52 $1,074 hrs $18.46 170 $3,138 sf $3.30 3,500 $11,550 Total Alternate Feed Circuit and Reagent Storage Building $40,874 Mill Yard Decontamination Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 257 $54,060 Cat 637 Scraper Operator hrs $19.31 257 $4,962 Cat 988 Loader hrs $134.11 65 $8,717 Cat 988 Loader Operator hrs $17.21 65 $1,119 Cat D8N Dozer With Ripper hrs $95.82 65 $6,228 Cat D8N Dozer Operator hrs $20.65 65 $1,342 Cat D7 Dozer hrs $81.27 65 $5,283 Cat D7 Dozer Operator hrs $20.65 65 $1,342 Cat 651 Watenwagon hrs $113.30 65 $7,364 Cat 651 Watenwagon Operator hrs $18.16 65 $1,180 Cat 14G Motorgrader hrs $71.34 65 $4,637 Cat 14G Motorgrader Operator hrs $20.62 65 $1,340 Equipment Maintenance (Butler) hrs $18.46 582 $10,742 Total Mill Yard Decontamination $108,319 Ore Storage Pad Decontamination Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 189 $39,757 Cat 637 Scraper Operator hrs $19.31 189 $3,649 Cat 988 Loader hrs $134.11 48 $6,437 Cat 988 Loader Operator hrs $17.21 48 $826 Cat D8N Dozer With Ripper hrs $95.82 48 $4,599 Cat D8N Dozer Operator hrs $20.65 48 $991 Cat D7 Dozer hrs $81.27 48 $3,901 Cat D7 Dozer Operator hrs $20.65 48 $991 Cat 651 Watenwagon hrs $113.30 48 $5,438 Cat 651 Watenwagon Operator hrs $18.16 48 $872 Cat 140 Motorgrader hrs $71.34 48 $3,424 Cat 14G Motorgrader Operator hrs $20.62 48 $990 Equipment Maintenance (Butler) hrs $18.46 429 $7,918 Total Ore Storage Pad Decontamination $79,794 Equipment Storage Area Cleanup Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 68 $14,304 Cat 637 Scraper Operator hrs $19.31 68 $1,313 Cat 988 Loader hrs $134.11 17 $2,280 Cat 988 Loader Operator hrs $17.21 17 $293 Cat D8N Dozer With Ripper hrs $95.82 17 $1,629 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) hrs $20.65 17 $351 hrs $81.27 17 $1,382 hrs $20.65 17 $351 hrs $113.30 17 $1,926 hrs $18.16 17 $309 hrs $71.34 17 $1,213 hrs $20.62 17 $351 hrs $18.46 153 $2,824 Total Equipment Storage Area Cleanup $28,524 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Revegetate Mill Yard & Ore Pad Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 174 $36,601 hrs $19.31 174 $3,360 hrs $134.11 0 $0 hrs $17.21 0 $0 hrs $95.82 33 $3,162 hrs $20.65 33 $682 hrs $81.27 33 $2,682 hrs $20.65 33 $682 hrs $113.30 0 $0 hrs $18.16 0 $0 hrs $71.34 33 $2,354 hrs $20.62 33 $681 Acre $322.50 50 $16,125 hrs $18.46 273 $5,039 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenvagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Seed Mix Equipment Maintenance (Butler) Total Revegetate Mill Yard & Ore Pad $71,366 Total Demolition and Decontamination \ $1,360,477| CLEANUP OF WINDBLOWN CONTAMINATION Scoping Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 100 $5,000 Survey Crew hrs $16.14 752 $12,140 Sample Crew hrs $16.14 1,312 $21,181 Total Scoping Survey $38,322 Characterization Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 472 $23,600 Sample Crew hrs $16.14 1,136 $18,340 Total Characterization Survey $41,940 Final Status Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 300 $15,000 Sample Crew hrs $16.14 3,552 $57,344 Total Final Status Survey $72,344 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Windblown Cleanup Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 680 $143,039 hrs $19.31 680 $13,129 hrs $95.82 170 $16,289 hrs $20.65 170 $3,511 hrs $81.27 170 $13,817 hrs $20.65 170 $3,511 hrs $71.34 170 $12,127 hrs $20.62 170 $3,506 each $50.00 500 $25,000 hrs $16.14 163 $2,632 hrs $16.14 83 $1,340 hrs $18.46 1,190 $21,964 Cat 637 Scraper Cat 637 Scraper Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 14H Motorgrader Cat 14G Motorgrader Operator Soil Samples Survey Crew Sample Crew Equipment Maintenance (Butler) Total Windblown Cleanup Quality Control Resource Description Units Cost/Unit Task Units $259,864 Task Cost Quality Control Contractor Total Quality Control Total Cleanup Windblown Contamination hrs $62.00 2,080 $128,960 $128,960 $541,430 Conventional Ore Disposal Resource Description Units Cost/Unit Task Units Task Cost hrs $95.11 378 $35,946 hrs $16.67 378 $6,302 hrs $134.11 126 $16,895 hrs $17.21 126 $2,169 hrs $113.30 126 $14,273 hrs $18.16 126 $2,288 hrs $71.34 25 $1,783 hrs $20.62 25 $516 hrs $18.46 655 $12,087 Cat 770 Haul Truck (3) Truck Drivers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Conventional Ore Disposal I $92,258] Total Quantity 74,074 Cubic Yards* 196 Cubic Yards per Truck per hour 378 Truck Hours * 100,000 tons maximum projected for March 2012 Loose (In-truck) material unit weight assumed as 100 lb/cubic foot Alternate Feed Disposal Cabot and FMRI Material Resource Description Units Cost/Unit Task Units Task Cost hrs $95.11 39 $3,705 hrs $16.67 39 $650 hrs $134.11 13 $1,742 hrs $17.21 13 $224 hrs $113.30 13 $1,471 hrs $18.16 13 $236 hrs $71.34 10 $713 hrs $20.62 10 $206 Cat 770 Haul Truck (3) Truck Drivers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 WatenA/agon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 12/1/2011 -1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Equipment Maintenance (Butler) hrs $18.46 75 $1,383 Total Cabot & FMRI Material $10,330 Total Quantity 7,636 Cubic Yards* (projected to 03/01/2012) 196 Cubic Yards per Truck per hour 39 Truck Hours * Includes Cabot and FMRI Cameco Barrels and Honeywell Barrels Resource Description Units Cost/Unit Task Units Task Cost Equipment Operators hrs $16.67 427 $7,126 Flat Bed Trailer and Tractor* hrs $55.00 427 $23,505 Fork Lift (2) hrs $18.00 855 $15,385 Equipment Maintenance (Butler) hrs $18.46 427 $7,888 Total Cameco and Honeywell Barrels $53,903 * includes operator 42,735 Barrels (projected to 03/01/2012) 40 Barrels per load 0.4 Hours per load 427 Truck Hours Tons lbs. per barrel No. Drums CaF2 Calcined Regen KF UF4 1,686 3,842 551 1,756 2 727 320 406 309 547 4,636 24,013 2,714 11,366 7 7,837 42,735 Sub-Total Alternate Feed Disposal I $64,232] TOTAL MILL DECOMMISSIONING I $2,058,398| 12/1/2011 -1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING WMM ALTERNATE FEED Ending Inventory, tons & barrels Projection to March 2012 Cabot Fansteel/FMRI Prior Year Ending Balance 6,157 11,177 17,334 2011 YTD Received 488 Prelected deliveries less Processed processing to 2011 March 2012 6,645 1,369 500 488 Ending Material Balance tons 500 9,808 10,308 CaF2- Honeywell Calcined Product- Cameco KF Product- Cameco Regen Product- Cameco UF4 Material- Cameco tons 1,083 2,349 1,455 324 2 tons 2,315 1,493 216 162 tons tons 1,712 85 65 tons 1,686 3,842 1,756 551 2 5,213 4,186 1,712 7,837 12/1/2011 - 1:49 PM-WMM Rec Plan Est December 2011 Rev 4.7.xls Denison Mines (USA) Corp. White Mesa Mill November 1, 2011 Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver, CO 80265 USA Tel: 303 628-7798 Fax: 303 389-4125 www.denisonmines.com VIA E-MAIL AND OVERNIGHT DELIVERY Mr. Rusty Lundberg Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850 Re: Updated Surety Estimate and Response to Utah Division of Radiation Control ("DRC") September 14, 2011 Request for Information ("RFI") Dear Mr. Lundberg: This letter transmits Denison Mines (USA) Corp's ("Denison's") Updated Surety Estimate and response to DRC's September 14, 2011 Request for Information ("RFI"). This transmittal includes two hard copies of Surety Estimate Revision 4.6. A pdf version has been transmitted via email. For ease of review, the comments from DRC's September 14, 2011 RFI are provided verbatim below in /fa//cs. Denson's responses follow each comment 1. General Comment: Haul routes and times are sometimes referred to in various sections of the estimate. Please provide a detailed table and maps, which describe the haul routes, the haul route numbers, distances, materials, and the total round trip haul times, which include the loading and unloading times, for the various routes and materials to be transported. Adjust any affected costs resulting from the new table values. Denison Response: The requested information has been provided in the enclosed map of Haul Routes A through F, and the Haul Route Summary Table and its supporting tables. Affected costs have been adjusted accordingly. 2. Mill Decommissioning Section. The "Conventional Ore Disposal" table in this section estimates the stockpiled weight of the ore on site at 100 lbs. /cubic foot. This seems to be a low weight for the conventional ore we have observed stockpiled on site. Please document the current average stockpiled weight of the conventional ore on site, and apply this value in the "Conventional Ore Disposal" portion of the estimate. Denison Response: Denison feels the 100 lbs/cubic foot is a conservative value and has left it unchanged. 3. Cell 1 Section. In the table of the title "Place Lower Random Fill" in this section, scraper, compactor, D8 dozer, and D7 dozer operator tabor costs have been omitted in the portion of the table provided. Please provide completed missing information for review. N:\Surety Estimate\Rec Plan response to DRC Ltr 09.14.11 and Updated cost estimateM 1.03.11 Surety update and responsetoDRC09.14.11ltr.doc Letter to Mr. Rusty Lundberg Revised Surety Estimate and Response to RFI November 1, 2011 Page 2 Denison Response: The scraper, compactor, D8 dozer and D7 dozer operator labor costs have been added to the table as requested. 4. Cell 2 Section. a. The table of the title "Upper Random Fill" in this section, the table does not provide operator labor costs for most of the power equipment operators. Please include the missing information in the table. Denison Response: The labor costs for power equipment operators have been added as requested, b. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the extended labor operation costs for the D7 dozer, waterwagon and motorgrader operators. Please include these missing labor costs in this table. Denison Response: The labor costs for the D7 dozer, waterwagon, and motorgrader operators have been added as requested. 5. Cell 3 Section. a. The table of the title "Clay Layer" in this section does not have the operator labor costs shown for most of the power equipment operators. Please include the missing information in the table. Denison Response: The labor costs for power equipment operators have been added as requested. b. The table of the title "Upper Random Fill" in this section, as submitted, did not provide operator labor costs for most of the power equipment operators. Please include the missing information in the table. Denison Response: The labor costs for power equipment operators have been added as requested. c. A table of the title, "Rock Armor and Rip Rap Filter in this section, did not provide the extended labor costs for the dozer, waterwagon and motorgrader operators. Please include these missing labor costs in this table. Denison Response: The labor costs for the D7 dozer, waterwagon, and motorgrader operators have been added as requested. 6. Miscellaneous Section. a. In the Slimes Drain Evaporation Pond table, a 960,000 square foot pond is contemplated. However, there is no budget for equipment or labor to install the liner, perse: I.e. labor and equipment to roll out, cut, seam, trim, patch, weld and test the liner Please include this cost in the estimate. Denison Response: The costs for installation of the liner have been added as requested. b. Equipment Mobilization Table and the "Equipment Costs" Spread Sheet: DENISOl Letter to Mr. Rusty Lundberg Revised Surety Estimate and Response to RFI November 1, 2011 Page 3 (i) . The "Equipment Costs" spread sheet, under the primary Mob/Demob column, do not list the corresponding current freight charges, as shown in "Attachment A" of the Feb. 16, 2011 letter from NCRL Leasing. This appears to total $$348,850. Denison Response: The freight charges have been amended as requested. (ii) . The "Equipment Costs" spread sheet. The "Mobilization" cost for maintenance support personnel is $35,600 each way for a total of $71,200, per the Feb. 16, 2011 letter from NCRL Leasing. This cost, and the amount from the above item, total $420,050. This sum should appear on the first line of the Equipment Mobilization Table, in the miscellaneous section of the estimate. Denison Response: The sum has been added to the Equipment Mobilization Table as requested. c. In the Management Support table, there are two line items, one for a part-time Environmental Technician and one for Environmental Monitoring Lab Costs. In addition to these budgeted amounts for environmental monitoring, the total should include any separate unique monitoring costs required by the Annual Technical Evaluation Report (ATER), the tailings cell dewatering elevations, surface water elevations and freeboard monitoring as required by the DMT and BAT O&M plans, and other unique monitoring outlined section 2.3 of approved Reclamation Plan 3.2. A single part-time technician will be unable to perform all of these tasks without assistance. Please breakdown these costs to demonstrate that alt these monitoring costs (including all necessary technician labor hours) are covered in the surety estimate. Denison Response: The cost breakdown has been added as requested. Please contact me if you have any questions or require any further information. Yours very truly, DENISON MINES (USA) CORP. Jo Ann Tischler Director, Compliance and Permitting cc: David C. Frydenlund Harold R. Roberts David E. Turk K. Weinel Central files DENISO MINES Cost Summary WHITE MESA MILL RECLAMATION COST ESTIMATE October 2011 Revision 4.5 Mill Decommissioning $1,988,110 Cell 1 $1,671,808 Cell 2 $1,704,415 Cells $2,106,627 Cell 4A $1,360,123 Cell 4B $1,387,762 Miscellaneous $3,637,667 Subtotal Direct Costs $13,856,513 Profit Allowance 10.00% $1,385,651 Contingency 15.00% $2,078,477 Licensing & Bonding 2.00% $277,130 UDEQ Contract Administration 4.00% $554,261 Contractors Equipment Floater $82,250 Automobile and General Liability Insurance $284,600 Long Term Care Fund $809,376 Total Reclamation $19,328,258 Revised Bond Amount $19,328,258 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Mill Decommissioning MILL DECOMMISSIONING MILL DECOMMISSIONING Mill Building Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Mill Building Demolition Units Cost/Unit Task Units Task Cost hrs $16.77 640 $10,736 hrs $12.51 320 $4,002 hrs $1.35 960 $1,296 hrs $95.11 640 $60,872 hrs $16.67 640 $10,671 hrs $134.11 160 $21,458 hrs $17.21 160 $2,754 hrs $130.25 160 $20,840 hrs $20.65 160 $3,304 hrs $147.18 160 $23,548 hrs $20.65 160 $3,304 hrs $103.61 160 $16,577 hrs $15.76 160 $2,522 hrs $65.24 80 $5,219 hrs $15.76 80 $1,261 hrs $18.46 1,360 $25,102 sf $3.30 37,500 $123,750 $337,218 Ore Feed Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Total Ore Feed Demolition SX Building Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 112 $2,067 Units Cost/Unit Task Units $18,346 Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal hrs $16.77 320 $5,368 hrs $12.51 160 $2,001 hrs $1.35 480 $648 hrs $95.11 320 $30,436 hrs $16.67 320 $5,336 hrs $134.11 80 $10,729 hrs $17.21 80 $1,377 hrs $130.25 80 $10,420 hrs $20.65 80 $1,652 hrs $147.18 80 $11,774 hrs $20.65 80 $1,652 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 560 $10,336 sf $3.30 55,970 $184,701 Total SX Building Demolition $276,430 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. Wtiite Mesa Mill MILL DECOMMISSIONING CCD Circuit Removal Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Units Cost/Unit Task Units Task Cost hrs $16.77 120 $2,013 hrs $12.51 60 $750 hrs $1.35 180 $243 hrs $95.11 120 $11,414 hrs $16.67 120 $2,001 hrs $134.11 30 $4,023 hrs $17.21 30 $516 hrs $130.25 30 $3,908 hrs $20.65 30 $620 hrs $147.18 30 $4,415 hrs $20.65 30 $620 hrs $103.61 30 $3,108 hrs $15.76 30 $473 hrs $65.24 15 $979 hrs $15.76 15 $236 hrs $18.46 255 $4,707 sf $3.30 15,000 $49,500 Total CCD Circuit Removal $89,525 Sample Plant Renfioval Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Sample Plant Removal Units Cost/Unit Task Units Task Cost hrs $16.77 32 $537 hrs $12.51 16 $200 hrs $1.35 48 $65 hrs $95.11 32 $3,044 hrs $16.67 32 $534 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1,042 hrs $20.65 8 $165 hrs $147.18 8 $1,177 hrs $20.65 8 $165 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 56 $1,034 sf $3.30 4,200 $13,860 $23,033 Temporary Storage Building Removal Resource Description Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Equipment Maintenance (Butler) Concrete Removal Total Temporary Storage Building Removal Units Cost/Unit Task Units Task Cost hrs $12.51 8 $100 hrs $1.35 8 $11 hrs $95.11 2 $190 hrs $16.67 2 $33 hrs $134.11 2 $268 hrs $17.21 2 $34 hrs $18.46 4 $74 sf $3.30 600 $1,980 $2,691 Truck Shop Removal Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Units Cost/Unit Task Units Task Cost hrs $16.77 32 $537 hrs $12.51 16 $200 hrs $1.35 48 $65 hrs $95.11 24 $2,283 hrs $16.67 24 $400 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1i042 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal hrs $20.65 8 $165 hrs $147.18 8 $1,177 hrs $20.65 8 $165 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 48 $886 sf $3.30 4,200 $13,860 Total Truck Shop Removal $21,991 Boiler Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Units Cost/Unit Task Units Task Cost hrs $16.77 160 $2,684 hrs $12.51 80 $1,000 hrs $1.35 240 $324 hrs $95.11 160 $15,218 hrs $16.67 160 $2,668 hrs $134.11 40 $5,364 hrs $17.21 40 $689 hrs $130.25 40 $5,210 hrs $20.65 40 $826 hrs $147.18 40 $5,887 hrs $20.65 40 $826 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 280 $5,168 sf $3.30 2,900 $9,570 Total Boiler Demolition $55,435 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA)" Corp. White Mesa Mill MILL DECOMMISSIONING Vanadium Oxidation Circuit Removal Resource Pescription Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator 60 Ton Crane 60 Ton Crane Operator 30 Ton Crane 30 Ton Crane Operator Equipment Maintenance (Butler) Concrete Removal Total Vanadium Oxidation Circuit Removal hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $103.61 0 $0 hrs $15.76 0 $0 hrs $65.24 0 $0 hrs $15.76 0 $0 hrs $18.46 112 $2,067 sf $3.30 1,200 $3,960 $22,306 Main Shop/Warehouse Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Main Shop/Warehouse Demolition hrs $16.77 128 $2,147 hrs $12.51 64 $800 hrs $1.35 192 $259 hrs $95.11 128 $12,174 hrs $16.67 128 $2,134 hrs $134.11 32 $4,292 hrs $17.21 32 $551 hrs $130.25 32 $4,168 hrs $20.65 32 $661 hrs $147.18 32 $4,710 hrs $20.65 32 $661 hrs $18.46 224 $4,134 sf $3.30 19,300 $63,690 $100,382 Decon Pads (2) Demolition Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Decon Pads (2) Demolition hrs $16.77 64 $1,074 hrs $12.51 32 $400 hrs $1.35 96 $130 hrs $95.11 64 $6,087 hrs $16.67 64 $1,067 hrs $134.11 16 $2,146 hrs $17.21 16 $275 hrs $130.25 16 $2,084 hrs $20.65 16 $330 hrs $147.18 16 $2,355 hrs $20.65 16 $330 hrs $18.46 112 $2,067 sf $3.30 1,350 $4,455 $22,801 11/1/2011 -1 -.40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Office Building Demolition Resource Description Units Cost/Unit Task Units Task Cost hrs $16.77 96 $1,610 hrs $12.51 48 $600 hrs $1.35 144 $194 hrs $95.11 96 $9,131 hrs $16.67 96 $1,601 hrs $134.11 24 $3,219 hrs $17.21 24 $413 hrs $130.25 24 $3,126 hrs $20.65 24 $496 hrs $147.18 24 $3,532 hrs $20.65 24 $496 hrs $18.46 168 $3,101 sf $1.25 12,100 $15,125 Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Total Office Building Demolition $42,644 Septic Tanks and Drain Fields Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Septic Tanks and Drain Fields Units Cost/Unit Task Units Task Cost hrs $16.77 0 $0 hrs $12.51 16 $200 hrs $1.35 32 $43 hrs $95.11 16 $1,522 hrs $16.67 16 $267 hrs $134.11 8 $1,073 hrs $17.21 8 $138 hrs $130.25 8 $1,042 hrs $20.65 8 $165 hrs $147.18 0 $0 hrs $20.65 0 $0 hrs $18.46 32 $591 $5,040 Misc. Tankage & Spare Parts Removal Resource Description Units Cost/Unit Task Units Task Cost Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Total Misc. Tankage & Spare Parts Removal hrs $16.77 48 $805 hrs $12.51 24 $300 hrs $1.35 72 $97 hrs $95.11 48 $4,565 hrs $16.67 48 $800 hrs $134.11 12 $1,609 hrs $17.21 12 $207 hrs $130.25 12 $1,563 hrs $20.65 12 $248 hrs $147.18 12 $1,766 hrs $20.65 12 $248 hrs $18.46 84 $1,550 $13,759 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Alternate Feed Circuit and Reagent Storage Building Resource Description Mechanics Laborers Small Tools Cat 770 Haul Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat 365 Excavator Cat 365 Excavator Operator PC 300 w/metal Shears PC 300 Operator Equipment Maintenance (Butler) Concrete Removal Units Cost/Unit Task Units Task Cost hrs $16.77 50 $839 hrs $12.51 50 $625 hrs $1.35 96 $130 hrs $95.11 50 $4,756 hrs $16.67 50 $834 hrs $134.11 34 $4,560 hrs $17.21 34 $585 hrs $130.25 34 $4,429 hrs $20.65 34 $702 hrs $147.18 52 $7,653 hrs $20.65 52 $1,074 hrs $18.46 170 $3,138 sf $3.30 3,500 $11,550 Total Alternate Feed Circuit and Reagent Storage Building $40,874 Mill Yard Decontamination Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 257 $54,060 Cat 637 Scraper Operator hrs $19.31 257 $4,962 Cat 988 Loader hrs $134.11 65 $8,717 Cat 988 Loader Operator hrs $17.21 65 $1,119 Cat D8N Dozer With Ripper hrs $95.82 65 $6,228 Cat D8N Dozer Operator hrs $20.65 65 $1,342 Cat D7 Dozer hrs $81.27 65 $5,283 Cat D7 Dozer Operator hrs $20.65 65 $1,342 Cat 651 Waterwagon hrs $113.30 65 $7,364 Cat 651 Waterwagon Operator hrs $18.16 65 $1,180 Cat 14G Motorgrader hrs $71.34 65 $4,637 Cat 14G Motorgrader Operator hrs $20.62 65 $1,340 Equipment Maintenance (Butler) hrs $18.46 582 $10,742 Total Mill Yard Decontamination $108,319 Ore Storage Pad Decontamination Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 189 $39,757 Cat 637 Scraper Operator hrs $19.31 189 $3,649 Cat 988 Loader hrs $134.11 48 $6,437 Cat 988 Loader Operator hrs $17.21 48 $826 Cat D8N Dozer With Ripper hrs $95.82 48 $4,599 Cat D8N Dozer Operator hrs $20.65 48 $991 Cat D7 Dozer hrs $81.27 48 $3,901 Cat D7 Dozer Operator hrs $20.65 48 $991 Cat 651 Waterwagon hrs $113.30 48 $5,438 Cat 651 Watenwagon Operator hrs $18.16 48 $872 Cat 14G Motorgrader hrs $71.34 48 $3,424 Cat 14G Motorgrader Operator hrs $20.62 48 $990 Equipment Maintenance (Butler) hrs $18.46 429 $7,918 Total Ore Storage Pad Decontamination $79,794 Equipment Storage Area Cleanup Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper hrs $210.35 68 $14,304 Cat 637 Scraper Operator hrs $19.31 68 $1,313 Cat 988 Loader hrs $134.11 17 $2,280 Cat 988 Loader Operator hrs $17.21 17 $293 Cat DSN Dozer With Ripper hrs $95.82 17 $1,629 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenvagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) hrs $20.65 17 $351 hrs $81.27 17 $1,382 hrs $20.65 17 $351 hrs $113.30 17 $1,926 hrs $18.16 17 $309 hrs $71.34 17 $1,213 hrs $20.62 17 $351 hrs $18.46 153 $2,824 Total Equipment Storage Area Cleanup $28,524 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Reviewed 02/11/11 Mill Decommissioning 1) Removal of contaminated material from Mill Yard Assume: - 18 inches (1.5 feet) will have to be removed - Area (from CAD takeoff) = 1,643,453 sq. feet 37.7 acres Therefore: Volume moved = [ 1,643,453 x 1.5]/27 = 91,303 cubic yards (use 91,300) 91,300 / 355 cubic yards per hour = 257 machine hours Haul route H 2) Removal of contaminated material from Ore Pad Assume: - 18 inches (1.5 feet) will have to be removed ~ Area (from CAD takeoff) = 976,780 sq. feet 22.4 acres Therefore: Volume moved = [ 976,780 x 1.5 ] / 27 = 54,266 cubic yards (use 54,300) 54,300 / 287 cubic yards per hour = 189 machine hours Haul route H 3) Demolition Equipment Kamatsu PL400 (or Cat equivalent) with LaBounty Sheers (hydraulic) Cat 365 Trackhoe with Grapples Cat 769 Rock Trucks (4 each) Cat 988 Loader (1 each) 4) Demolition Crew - Heavy Equipment Operators - PC400, Cat 365, Cat 988 - Dust Control - 2 Laborers " Mechanics - Cut debris to reduce/avoid oversize and voids - 4 each - Truck Drivers - 4 each Mill Decommissioning Volumes Rev 4.6 October 2011 IVIill Decommissioning (con't) page 2 5) Tool and Expendable Allowance, covering the following items: " Safety gear and supplies ~ Hand tools ~ Bottled Gases and Torches ~ Allow $1.30 per man-hour for all but Heavy Equipment Operators and Truck Drivers 6) Demolition Time Estimates ~ Mill Building 20 Days ~ Ore Bin 2 Days - SX Building 10 Days - CCD, Pre-Leach, Claricone 5 Days - Sample Plant 1 Day - Boiler House 5 Days " Vanadium EMF/Ox 2 Days " Shop/Warehouse 4 Days - Office/Lab Building 3 Days - Misc. & Bone Yard 4 Days - Decon Pads (2) 2 Days 7) Foundation Demolition Assume area of structure times $3.30 per square foot Areas by building as follows: Area, sq ft $ Cost Mill Building 37,500 $123,750 SX Building 55,970 $184,701 CCD, Pre-Leach, Claricone 15,000 $ 49,500 Shop/Warehouse 19,300 $ 63,690 Office* 12,100 $ 15,125 Sample Plant 4,200 $ 13,860 Vanadium EMF/Ox 1,200 $ 3,960 Boiler house 2,900 $ 9,570 Decon Pads 1,350 $ 4,455 Labor at $2.75, Equipment at $0.55 * Labor at $0.70, Equipment at $0.55 Mill Decommissioning Volumes Rev 4.6 October 2011 IVIill Decommissioning (con't) page 3 8) Revegetation Assume: Mill Yard Area Ore Pad Area 1,643,453 sq. feet 976,780 sq. feet Place 6 inches of Topsoil Cat 637 Scrapper, Haul Route I [ 1,643,453 976,780 ] sq.feet x 0.5 feet] / [27 cubic feet / cubic Yard] Use 48,600 Cubic Yards 48,600 / 279 cu yds per hour = 174 Scraper hours 48,523 cu yds Mill Decommissioning Volumes Rev 4.6 October 2011 MILL DECOMMISSIONING Revegetate Mill Yard & Ore Pad Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 174 $36,601 hrs $19.31 174 $3,360 hrs $134.11 0 $0 hrs $17.21 0 $0 hrs $95.82 33 $3,162 hrs $20.65 33 $682 hrs $81.27 33 $2,682 hrs $20.65 33 $682 hrs $113.30 0 $0 hrs $18.16 0 $0 hrs $71.34 33 $2,354 hrs $20.62 33 $681 Acre $322.50 50 $16,125 hrs $18.46 273 $5,039 Cat 637 Scraper Cat 637 Scraper Operator Cat 988 Loader Cat 988 Loader Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Seed Mix Equipment Maintenance (Butler) Total Revegetate Mill Yard & Ore Pad Total Demolition and Decontamination $71,366 $1,360 4771 CLEANUP OF WINDBLOWN CONTAMINATION Scoping Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 100 $5,000 Survey Crew hrs $16.14 752 $12,140 Sample Crew hrs $16.14 1,312 $21,181 Total Scoping Survey $38,322 Characterization Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 472 $23,600 Sample Crew hrs $16.14 1,136 $18,340 Total Characterization Survey $41,940 Final Status Survey Resource Description Units Cost/Unit Task Units Task Cost Soil Samples each $50.00 300 $15,000 Sample Crew hrs $16.14 3,552 $57,344 Total Final Status Survey $72,344 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA). Corp. White Mesa Mill MILL DECOMMISSIONING Windblown Cleanup Resource Description Cat 637 Scraper Cat 637 Scraper Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 14H Motorgrader Cat 14G Motorgrader Operator Soil Samples Survey Crew Sample Crew Equipment Maintenance (Butler) Total Windblown Cleanup Quality Control Resource Description Quality Control Contractor Total Quality Control Total Cleanup Windblown Contamination Units Cost/Unit Task Units Task Cost hrs $210.35 680 $143,039 hrs $19.31 680 $13,129 hrs $95.82 170 $16,289 hrs $20.65 170 $3,511 hrs $81.27 170 $13,817 hrs $20.65 170 $3,511 hrs $71.34 170 $12,127 hrs $20.62 170 $3,506 each $50.00 500 $25,000 hrs $16.14 163 $2,632 hrs $16.14 83 $1,340 hrs $18.46 1,190 $21,964 Units Cost/Unit Task Units $259,864 Task Cost hrs $62.00 2,080 $128,960 $128,960 Conventional Ore Disposal Resource Description Cat 770 Haul Truck (3) Truck Drivers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Conventional Ore Disposal Units Cost/Unit Task Units Task Cost hrs $95.11 117 $11,143 hrs $16.67 117 $1,953 hrs $134.11 39 $5,237 hrs $17.21 39 $672 hrs $113.30 39 $4,425 hrs $18.16 39 $709 hrs $71.34 25 $1,783 hrs $20.62 25 $516 hrs $18.46 220 $4,065 Total Quantity \ $30,505| 22,963 Cubic Yards* 196 Cubic Yards per Truck per hour 117 Truck Hours * 31,000 tons maximum projected for December 2011 Loose (in-truck) material unit weight assumed as 100 lb/cubic foot Alternate Feed Disposal Cabot and FMRI Material Resource Description Cat 770 Haul Truck (3) Truck Drivers (3) Cat 988 Loader Cat 988 Loader Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Units Cost/Unit Task Units Task Cost hrs $95.11 67 $6,406 hrs $16.67 67 $1,123 hrs $134.11 22 $3,011 hrs $17.21 22 $386 hrs $113.30 22 $2,544 hrs $18.16 22 $408 hrs $71.34 10 $713 hrs $20.62 10 $206 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill MILL DECOMMISSIONING Equipment Maintenance (Butler) Total Cabot & FMRI Material Total Quantity Cameco Barrels and Honeywell Barrels Resource Description hrs $18.46 122 $2,257 $17,054 13,201 Cubic Yards* (as Of 01/31/2011) 196 Cubic Yards per Truck per hour 67 Truck Hours * Includes Linde, Cabot and FMRI Units Cost/Unit Task Units Task Cost hrs $16.67 306 $5,109 hrs $55.00 306 $16,851 hrs $18.00 613 $11,030 hrs $18.46 306 $5,655 $38,644 30,638 Barrels (as of 01/31/2011) 40 Barrels per load 0.4 Hours per load 306 Truck Hours Tons lbs. per barrel No. Drums CaF2 1,083 727 2,978 Calcined 2,622 320 16,388 Regen 337 406 1,660 KF 1,484 309 9,605 UF4 2 547 7 5,528 30,638 Equipment Operators Flat Bed Trailer and Tractor* Fork Lift (2) Equipment Maintenance (Butler) Total Cameco and honeywell Barrels * includes operator Sub-Total Alternate Feed Disposal TOTAL MILL DECOMMISSIONING I $55,698| I $1.988,TTo| 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Cell 1 RECLAMATION OF CELL 1 RECLAIVaATiON OF CELL 1 Dewatering of Cell 1 Resource Description Dewatering of Cell 1 Total Dewatering of Cell 1 Crystal Removal Resource Description Cat 770 Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Cat DSN Dozer With Ripper Cat D8N Dozer Operator Cat 365 Excavator Cat 365 Excavator Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Crystal Removal Contaminated Materials Removal Resource Description Cat 637 Scraper Cat 637 Scraper Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat 825C Compactor Cat 825C Compactor Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Units Cost/Unit Task Unlfs Task Cost hrs $0.48 62,400 $30,000 Units Cost/Unit Task Units $30,000 Task Cost hrs $95.11 2,157 $205,159 hrs $16.67 2,157 $35,966 hrs $134.11 539 $72,286 hrs $17.21 539 $9,278 hrs $95.82 539 $51,646 hrs $20.65 539 $11,132 hrs $130.25 539 $70,206 hrs $20.65 539 $11,132 hrs $113.30 539 $61,068 hrs $18.16 539 $9,789 hrs $71.34 539 $38,450 hrs $20.62 539 $11,115 hrs $18.46 4,852 $89,554 Units Cost/Unit Task Units $676,779 Task Cost hrs $210.35 308 $64,788 hrs $19.31 308 $5,947 hrs $95.82 77 $7,378 hrs $20.65 77 $1,590 hrs $97.64 77 $7,519 hrs $14.22 77 $1,095 hrs $113.30 77 $8,724 hrs $18.16 77 $1,398 hrs $71.34 77 $5,493 hrs $20.62 77 $1,588 hrs $18.46 616 $11,370 Total Contaminated Materials Removal $116,889 11/1/2011 - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 1 Topsoil Application Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 61 $12,831 hrs $19.31 61 $1,178 hrs $95.82 40 $3,833 hrs $20.65 40 $826 hrs $113.30 40 $4,532 hrs $18.16 40 $726 hrs $71.34 40 $2,853 hrs $20.62 40 $825 hrs $18.46 181 $3,341 Cat 637 Scraper Cat 637 Scraper Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Topsoil Application Construct Channel Resource Description Cat 637 Scraper Cat 637 Scraper Operator Cat 770 Truck Truck Drivers Cat 988 Loader Cat 988 Loader Operator Drilling & Blasting Contractor Cat 14G Motorgrader Cat 14G Motorgrader Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Equipment Maintenance (Butler) Total Construct Channel Units Cost/Unit Task Units $30,945 Task Cost hrs $210.35 348 $73,202 hrs $19.31 348 $6,719 hrs $95.11 404 $38,426 hrs $16.67 404 $6,736 hrs $134.11 170 $22,799 hrs $17.21 170 $2,926 BCY $2.25 67,000 $151,050 hrs $71.34 120 $8,560 hrs $20.62 120 $2,475 hrs $95.82 120 $11,498 hrs $20.65 120 $2,478 hrs $18.46 1,162 $21,447 $348,317 Place Clay Liner Resource Pescription Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 980 Loader Cat 980 Loader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Highway Trucks Truck Drivers Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Clay Liner Units Cost/Unit Task Units Task Cost hrs $210.35 0 $0 hrs $19.31 0 $0 hrs $97.64 60 $5,859 hrs $14.22 60 $853 hrs $95.82 60 $5,749 hrs $20.65 60 $1,239 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 60 $6,798 hrs $18.16 60 $1,090 hrs $93.97 60 $5,638 hrs $17.21 60 $1,033 hrs $65.95 30 $1,978 hrs $18.16 30 $545 hrs $83:33 435 $36,247 hrs $16.67 435 $7,253 hrs $71.34 85 $6,063 hrs $20.62 85 $1,753 hrs $18.46 355 $6,552 $88,650 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 1 Place Lower Random Fill Resource Description Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Lower Random Fill Clay Cap Resource Description Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 WatenA/agon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Cat 980 Loader Cat 980 Loader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Cap Units Cost/Unit Task Units Task Cost hrs $210.35 131 $27,556 hrs $19.31 131 $2,529 hrs $97.64 86 $8,397 hrs $14.22 86 $1,223 hrs $81.27 86 $6,990 hrs $20.65 86 $1,776 hrs $71.34 86 $6,135 hrs $20.65 86 $1,776 hrs $113.30 86 $9,744 hrs $18.16 86 $1,562 hrs $71.34 86 $6,135 hrs $20.62 86 $1,774 hrs $18.46 561 $10,354 Units Cost/Unit Task Units $85,950 Task Cost hrs $210.35 0 $0 hrs $19.31 0 $0 hrs $97.64 55 $5,370 hrs $14.22 55 $782 hrs $95.82 55 $5,270 hrs $20.65 55 $1,136 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 55 $6,231 hrs $18.16 55 $999 hrs $71.34 55 $3,923 hrs $20.62 55 $1,134 hrs $93.97 55 $5,168 hrs $17.21 55 $947 hrs $65.95 30 $1,978 hrs $18.16 30 $545 hrs $83.33 440 $36,663 hrs $16.67 440 $7,337 hrs $18.46 305 $5,629 $83,114 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill # RECLAMATION OF CELL 1 Upper Random Fill ^ Resource Description Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Equipment Maintenance (Butler) Total Place Upper Random Fill Rock Armor and Rip Rap Filter Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 131 $27,556 hrs $19.31 131 $2,529 hrs $97.64 86 $8,397 hrs $14.22 86 $1,223 hrs $95.82 86 $8,240 hrs $20.65 86 $1,776 hrs $81.27 86 $6,990 hrs $20.65 86 $1,776 hrs $113.30 86 $9,744 hrs $18.16 86 $1,562 hrs $71.34 86 $6,135 hrs $20.62 86 $1,774 hrs $65.95 86 $5,671 hrs $18.16 86 $1,562 hrs $18.46 647 $11,942 Units Cost/Unit Task Units $96,877 Task Cost Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Rock Cost Delivered Equipment Maintenance (Butler) Total Place Rock Armor and Rip Rap Filter Quality Controi Resource Description Quality Control Contractor Total Quality Control hrs $81.27 30 $2,438 hrs $20.65 30 $620 hrs $113.30 30 $3,399 hrs $18.16 30 $545 hrs $71.34 30 $2,140 hrs $20.62 30 $619 CY $6.19 8,607 $53,264 hrs $18.46 90 $1,661 hrs Units Cost/Unit Task Units $64,685 Task Cost $62.00 800 $49,600 $49,600 TOTAL RECLAMATION OF CELL 1 I $1,671,8081 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Cell 2 RECLAMATION OF CELL 2 Obtain Permits for Clay Borrow Site - Section 16 Resource Description Units Cost/Unit Task Units Task Cost Permits & Licenses ea $10,000.00 $50,000 Total Obtain Permits for Clay Borrow Site - Section 16 Place Remainder of Bridging (Platform) Lift Resource Description Units Cost/Unit Task Units $50,000 Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) hrs $210.35 0 $0 hrs $19.31 0 $0 hrs $97.64 0 $0 hrs $14.22 0 $0 hrs $95.82 0 $0 hrs $20.65 0 $0 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 0 $0 hrs $18.16 0 $0 hrs $71.34 0 $0 hrs $20.62 0 $0 hrs $18.46 0 $0 Total Place Remainder of Bridging (Platform) Lift Place Lower Random Fill (12") Resource Description Units $0 Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Watenrt/agon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Lower Random Fill (12") Clay Layer Resource Description hrs $210.35 480 $100,969 hrs $19.31 480 $9,268 hrs $97.64 100 $9,764 hrs $14.22 100 $1,422 hrs $81.27 100 $8,127 hrs $20.65 100 $2,065 hrs $71.34 100 $7,134 hrs $20.65 100 $2,065 hrs $113.30 100 $11,330 hrs $18.16 100 $1,816 hrs $71.34 100 $7,134 hrs $20.62 100 $2,062 hrs $18.46 980 $18,088 Units Cost/Unit Task Units $181,244 Task Cost Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon hrs $97.64 325 $31,734 hrs $14.22 325 $4,621 hrs $95.82 300 $28,745 hrs $20.65 300 $6,196 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 300 $33,990 11/1/20l i - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 2 Cat 651 Watenrt/agon Operator Cat 140 Motorgrader Cat 14G Motorgrader Operator Cat 980 Loader Cat 980 Loader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Highway Trucks Truck Drivers Equipment Maintenance (Butler) hrs $18.16 300 $5,448 hrs $71.34 300 $21,401 hrs $20.62 300 $6,187 hrs $93.97 300 $28,191 hrs $17.21 300 $5,164 hrs $65.95 175 $11,541 hrs $18.16 175 $3,178 hrs $83.33 2,400 $199,982 hrs $16.67 2,400 $40,018 hrs $18.46 1,700 $31,377 Total Place Clay Layer $457,772 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 2 Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 950 $199,834 hrs $19.31 950 $18,342 hrs $97.64 199 $19,431 hrs $14.22 199 $2,829 hrs $95.82 199 $19,068 hrs $20.65 199 $4,110 hrs $81.27 199 $16,174 hrs $20.65 199 $4,110 hrs $113.30 199 $22,546 hrs $18.16 199 $3,614 hrs $71.34 199 $14,196 hrs $20.62 199 $4,104 hrs $65.95 199 $13,124 hrs $18.16 199 $3,614 hrs $18.46 2,144 $39,572 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenfl/agon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Equipment Maintenance (Butler) Total Place Upper Random Fill $384,668 Rock Armor and Rip Rap Filter Resource Description Units Cost/Unit Task Units Task Cost hrs $81.27 300 $24,382 hrs $20.65 300 $6,196 hrs $113.30 300 $33,990 hrs $18.16 300 $5,448 hrs $71.34 300 $21,401 hrs $20.62 300 $6,187 CY $6.19 72,945 $451,417 hrs $18.46 900 $16,611 Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Rock Cost Delivered Equipment Maintenance (Butler) Total Place Rock Armor and Rip Rap Filter $565,631 Quality Control Resource Description Units Cost/Unit Task Units Task Cost Quality Control Contractor Total Quality Control hrs $62.00 1,050 $65,100 $65,100 TOTAL RECLAMATION OF CELL 2 I $1,704,415i 11/1/2011 - 1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Volume Calculation - Cell 2 1) Area of Cell 2 2,986,660 sqft = 68.56 acres 2) Area of Cell 2 still open as of February 21, 2008 (see Figure A) Area totally covered Use sqft 0.0 acres Reviewed 02/11/11 3) Assumptions - Bridging layer is placed using random fill from piles west of Cell 2 - Cell will be graded to Design elevation utilizing finer materials in random fill stockpiles and from "clay" stockpiles. - Clay will be mined, blended, and hauled from borrow site location in Section 16 - four miles south of the mill area, using belly dump trucks, clay layer on top of Cell only, except on south slope common to Cell 3. - The upper 1 foot of random fill will be placed utilizing the fine random fill and clay stockpiles - Rock for side armor, top armor and toe aprons will come from an off-site gravel source one (1) mile north of Blanding. Rock will be produced through screening, stockpiled and trucked to the site at the time of use. Belly dump trucks will dump gravel in windrows on the top and sides of the Cell. 4) Bridging Layer ( Platform Fill) Remaining to be placed sqft X 3 ft. / 27 cubic feet per cubic yard Use[ cubic yards cubic yards | 5) Bring Platform Fill up to Design elevation (Lower Random) Assume full area of Cell X one (1) foot thick 2,986,660 sqft X 1 ft. / 27 cubic feet per cubic yard = 6) Placement of Clay Layer ( One (1) foot thick on top of Cell only ) Assume full area of Cell X one (1) foot thick 2,986,660 sq ft X 1 ft. / 27 cubic feet per cubic yard = 110,617 cubic yards Use I 110,700 cubic yards 110,617 cubic yards Use I 110,700 cubic yards | Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 2 7) Upper Random Fill Volume - Top of Cell area Assume full area of Cell X one (2) foot thick 2,986,660 sq ft X 2 ft. / 27 cubic feet per cubic yard = 221,234 cubic yards Use I 221,300 cubic yards| 8) Armor Protection - Top of Cell Assume full area of Cell X one-half (0.5) foot thick 2,986,660 sq ft X 0.5 ft. / 27 cubic feet per cubic yard = 55,309 cubic yards Use I 55,400 cubic yards | 9) Cell 2 North Slope ( Slope #1 ) common with Cell 1-1 Average height Length 12 feet 2600 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [12 X 12 X 5)/2 - (12 X 12 X 3)/2] X 2600 374,400 cubic feet/27 Remaining Random Fill [15X15X5)/2 - (12X12X5)/2] X 2600 526,500 cubic feet/27 Total Random Fill North Slope 13,867 cubic yards Use I 13,900 cubic yards | 19,500 cubic yards Use I 19,500 cubic yards j I 33,400 cubic yards | b) Rock Armor 8" thick - 0.67 feet [15.67 X 15.67 X5)/2 - (15X15X5)/2] X 2600 = 133,568 cubic feet/27 = 4,947 cubic yards Use I 5,000 cubic yards [ c) Rip Rap Filter 6" thick - 0.5 feet [15.5 X 15.5 X5)/2 - (15X15X5)/2] X2600 = 99,125 cubic feet/27 = Use 3,671 cubic yards 3,700 cubic yards Volume Calculation Cell 2 Rev 4.6 October 2011 d) Toe Apron Volume Calculation - Cell 2 (con't) page 3 2X7X2600/27 = 1,348 cubic yards Use I 1,400 cubic yards | Total Rock Armor Cell 2 north Slope 6,400 cubic yards T 10) North Slope common with Mill yard ( Slope #2 ) Average height 1 feet Length 900 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [1 X 1 X 5)/2 - (1 X 1 X 3)/2] X 900 900 cubic feet/27 Remaining Random Fill [4 X 4 X 5)/2 - (1 X 1 X 5)/2] X 900 33,750 cubic feet/27 33 cubic yards Use I 100 cubic yards j 1,250 cubic yards Use I 1,300 cubic yards | Total Random Fill North Slope 1,400 cubic yards ^ b) Rock Armor 8" thick - 0.67 feet [4.67 X 4.67 X 5)/2 - (4 X 4 X 5)/2] X 900 13,070 cubic feet/27 484 cubic yards Use i 500 cubic yards | c) Rip Rap Filter 6' thick - 0.5 feet [4.5X4.5X5)/2 - (4X4X5)/2] X 900 9,563 cubic feet/27 354 cubic yards Use I 350 cubic yards" d) No Toe Apron on fill common with Mill Yard Total Rock Armor on slope commmon to Mill Yard 500 cubic yards \ Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 4 11) Cell 2 West Dike ( Slope #3 Average height Length 2 feet 500 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [2X2X5)/2 - (2X2X3)/2] X500 2,000 cubic feet/27 = 74 cubic yards Use I 100 cubic yards_j Remaining Random Fill [2X2X5)/2 - (2X2X3)/2] X 500 2,000 cubic feet/27 = 74 cubic yards Use I 100 cubic yards | Total Random Fill North Slope I 200 cubic yards \ b) Rock Armor 8" thick - 0.67 feet [5.67 X 5.67 X 5)/2 - (5 X 5 X 5)/2] X 500 = 8,936 cubic feet/27 = 331 cubic yards Use I 400 cubic yards | c) Rip Rap Filter 6" thick - 0.5 feet [5.5 X 5.5 X 5)/2 - (5 X 5 X 5)/2] X 500 = 6,563 cubic feet/27 = 243 cubic yards Use I 250 cubic yards | d) Toe Apron Not required for slope 10 feet long - Drainage from Cell goes south to Cell 3 and then off of south slope of Cell 3 Total Rock Armor Cell 2 north Slope I 400 cubic yards | 12) Cell 2 East Dike ( Slope #4 ) Average height Length 1 feet 1250 feet a) Random Fill Wedge from #tO 1 cubic foot per linear foot X 1250 46 cubic yards Use I 100 cubic yards | Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 5 b) Remaining Random Fill from #10 37.5 cubic foot per linear foot X 1250 / 27 1,736 cubic yards Use i 1,800 cubic yards~1 Total Random Slope #4 | 1,900 cubic yardsH c) Rock Armor 8" thick - 0.67 feet from #10 14.52 cubic feet per linear foot of dike 14.52 cubic foot per linear foot X 1250/27 18,150 cubic feet/27 = 672 cubic yards Use I 675 cubic yards | d) Rip Rap Filter 6" thick - 0.5 feet 9.075 cubic foot per linear foot X 1250 / 27 = 420 cubic feet/ 27 = 420 cubic yards Use \ 420 cubic yards | e) Toe Apron Not required Total Rock Armor Cell 2 north Slope | 675 cubic yards 1 13) South Slope Cell 2 commom with Cell 3 ( Slope #5 ) Average height 3 feet Length 3500 feet a) Random fill to reduce slope from 3:1 to 5:1 Random Fill [3 X 3 X 5)/2 - (3 X 3 X 3)/2] X 3500 31,500 cubic feet/27 = 1,167 cubic yards Use I 1,200 cubic yards | Random Fill Upper [6X6X5)/2 - (4X4X5)/2] X 3500 175,000 cubic feet/27 = 6,481 cubic yards Use t 6,500 cubic yards | Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 6 b) Clay Layer [4X4X5)/2 - (3X3X5)/2] X 3500 61,250 cubic feet/27 = 2,269 cubic yards Use I 2,300 cubic yard&n c) Rock Armor 8" thick - 0.67 feet [6.67 X 6.67 X 5)/2 - (6 X 6 X 5)/2] X 3500 74,278 cubic feet/27 = 2,751 cubic yards Use I 2,800 cubic yards~l c) Rip Rap Filter 6" thick - 0.5 feet [6.5 X 6.5 X 5)/2 - (6 X 6 X 5)/2] X 3500 54,688 cubic feet/ 27 = 2,025 cubic yards Use I 2,050 cubic yards~| No Toe Apron Total Rock Armor on slope Cell 2 Slope commmon to Cell 3 | 2,800 cubic yards Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 7 Volume Summary - Cell 2 Bridging Layer Lower Random Clay Upper Random Rock Armor Rip Rap Filter Top of Cell -110,700 110,700 221,300 55,400 0 North ( Slope #1 ) 13,900 19,500 6,400 3,700 North ( Slope #2 ) 100 1,300 500 350 West ( Slope #3 ) 100 100 400 250 East (Slope #4) 100 1,800 675 420 South (Slope #5) 1,200 2,300 6,500 2,800 2,050 Totals 126,100 113,000 250,500 66,175 6,770 Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 8 Cell 2 Reclamation Cat 637 Resource Requirements Volume Route Yds/hr % Equip. Hr. Cell 2 Bridging Lift Tailings Surface -E 263 100% 0.0 Cell 2 Lower Random Fill Tailings Surface 110,700 E 263 67% 281.8 Tailings Surface 110,700 E 263 33% 138.8 Slope 1 13,900 E 263 100% 52.8 Slope 2 100 E 263 100% 0.4 Slope 3 too E 263 100% 0.4 Slope 4 100 E 263 100% 0.4 Slope 5 1,200 E 263 100% 4.6 Total 479.1 Cell 2 Upper Random Fill Tailings Surface 221,300 E 263 67% 563.3 Tailings Surface 221,300 E 263 33% 277.5 Slope 1 19,500 E 263 100% 74.1 Slope 2 1,300 E 263 100% 4.9 Slope 3 100 E 263 100% 0.4 Slope 4 1,800 E 263 100% 6.8 Slope 5 6,500 E 263 100% 24.7 Total 951.7 Cell 2 Rock Armor and Rip Rap Filter ~ use Highway Trucks Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 9 Clay Production Cell 2 ( use same assumptions as Cell 3 ) Clay Volume = 113,000 Bank Cubic Yards (BCY) 0.8 Swell Factor 141,250 Loose Cubic Yards (LGY) Trucking 475 LCY/hr 8 trucks plus one (1) Loader 150,000 LCY / 475 LCY/hr = use 297 hours 300 hours I 300 X 8 Trucks = 2400 hours 980 Loader DSN w/ ripper Cat 651 WW Cat 825 Comp. 14G Patrol 5000 gal WW Hours 300 300 300 325 325 175 Volume Calculation Cell 2 Rev 4.6 October 2011 Volume Calculation - Cell 2 (con't) page 10 Rock Armor and Rip Rap Filter Production Cell 2 72,945 cubic yards (cy) 38 cy per hour times 8 trucks 304 cy per hour delivered Assume 25% extra time for spreading, loading and screen wait 304 /1.25 243.2 cy per hour 300 Hours Volume Calculation Cell 2 Rev 4.6 October 2011 Cells RECLAMATION OF CELC 9 RECLAMATION OF CELL 3 Dewatering of Cell 3 Resource Description Units Cost/Unit Task Units Task Cost Dewatering of Cell 3 Total Dewatering of Cell 3 Place Remainder of Bridging (Platform) Lift Resource Description hrs $0.48 62,400 $30,000 Units Cost/Unit Task Units $30,000 Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) hrs $210.35 830 $174,592 hrs $19.31 830 $16,025 hrs $97.64 208 $20,261 hrs $14.22 206 $2,929 hrs $95.82 208 $19,882 hrs $20.65 206 $4,254 hrs $81.27 208 $16,864 hrs $20.65 206 $4,254 hrs $65.95 208 $13,684 hrs $18.16 206 $3,741 hrs $71.34 208 $14,802 hrs $20.62 206 $4,248 hrs $18.46 1,868 $34,469 Total Place Remainder of Bridging (Platform) Lift Place Lower Random Fill (12") Resource Description Units Cost/Unit Task Units $330,007 Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Lower Random Fill (12") hrs $210.35 485 $102,021 hrs $19.31 485 $9,364 hrs $97.64 194 $18,943 hrs $14.22 194 $2,758 hrs $81.27 194 $15,767 hrs $20.65 194 $4,007 hrs $71.34 194 $13,839 hrs $20.65 194 $4,007 hrs $65.95 194 $12,794 hrs $18.16 194 $3,523 hrs $71.34 194 $13,839 hrs $20.62 194 $4,001 hrs $18.46 1,455 $26,855 Clay Layer Resource Description Units Cost/Unit Task Units $231,717 Task Cost hrs $97.64 350 $34,175 hrs $14.22 350 $4,976 hrs $95.82 320 $30,662 hrs $20.65 320 $6,609 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 320 $36,256 hrs $18.16 320 $5,812 hrs $71.34 350 $24,967 Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader 11/1/2011 -1:40 PM -.WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELU Cat 14G Motorgrader Operator Cat 980 Loader Cat 980 Loader Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Highway Trucks Truck Drivers Equipment Maintenance (Butler) hrs $20.62 350 $7,218 hrs $93.97 320 $30,070 hrs $17.21 320 $5,508 hrs $113.30 175 $19,827 hrs $18.16 175 $3,178 hrs $83.33 2,560 $213,315 hrs $16.67 2,560 $42,685 hrs $18.46 1,835 $33,869 Total Place Clay Layer $499,127 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Equipment Maintenance (Butler) Total Place Upper Random Fill Rock Armor and Rip Rap Filter Resource Description hrs $210.35 840 $176,696 hrs $19.31 840 $16,218 hrs $97.64 249 $24,338 hrs $14.22 249 $3,540 hrs $95.82 249 $23,883 hrs $20.65 249 $5,143 hrs $81.27 249 $20,258 hrs $20.65 249 $5,143 hrs $113.30 249 $28,240 hrs $18.16 249 $4,522 hrs $71.34 249 $17,780 hrs $20.62 249 $5,135 hrs $65.95 249 $16,437 hrs $18.16 249 $4,522 hrs $18.46 2,336 $43,106 Units Cost/Unit Task Units $394,960 Task Cost Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Rock Cost Delivered Equipment Maintenance (Butler) Total Place Rock Armor and Rip Rap Filter Quality Control . Resource Description hrs $81.27 290 $23,569 hrs $20.65 290 $5,989 hrs $113.30 290 $32,857 hrs $18.16 290 $5,267 hrs $71.34 290 $20,687 hrs $20.62 290 $5,980 CY $6.19 70,455 $436,008 hrs $18.46 870 $16,058 Units Cost/Unit Task Units $546,415 Task Cost Quality Control Contractor Total Quality Control TOTAL RECLAMATION OF CELL 3 hrs $62.00 1,200 $74,400 $74,400 I $2,106,6271 1.1/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Volume Calculation - Cell 3 1) Area of Cell 3 - 3,234,252 sqft = 74.25 acres 2) Area of Cell 3 still open as of February 24, 2011 (see Figure A) 48.7 acres from ground survey Use 2,121,372 sq ft Updated 02/24/11 //-(?/-// 3) Assumptions - Bridging layer is placed using random fill from piles east and west of Cell 3 - Cell will be graded to Design elevation utilizing finer materials in random fill stockpiles and from "clay" stockpiles. - Clay will be mined, blended, and hauled from borrow site location in Section 16 - four miles south of the mill area, using belly dump trucks, clay layer on top of Cell only. - The upper 1 foot of random fill will be placed utilizing the fine random fill and clay stockpiles - Rock for side armor, top armor and toe aprons will come from an off-site gravel source one (1) mile north of Blanding. Rock will be produced through screening, stockpiled and trucked to the site at the time of use. Belly dump trucks will dump gravel in windrows on the top and sides of the Cell. 4) Bridging Layer ( Platform Fill) Remaining to be placed 2,121,372 sq ft X 3 ft. / 27 cubic feet per cubic yard = 235,708 cubic yards Use I 236,000 cubic yards" 5) Bring Platform Fill up to Design elevation (Lower Random) Assume full area of Cell X one (1) foot thick 3,234,252 sq ft X 1 ft. / 27 cubic feet per cubic yard = 119,787 cubic yards Use I 120,000 cubic yards 6) Placement of Clay Layer (One (1) foot thick on top of Cell only) Assume full area of Cell X one (1) foot thick 3,234,252 sq ft X 1 ft. / 27 cubic feet per cubic yard = 119,787 cubic yards Use I 120,000 cubic yards j Volume Calculation Cell 3 Rev 4.6 October 2011 Volume Calculation - Cell 3 (con't) page 2 7) Upper Random Fill Volume - Top of Cell area Assume full area of Cell X one (2) foot thick 3,234,252 sq ft X 2 ft. / 27 cubic feet per cubic yard = 239,574 cubic yards Use I 240,000 cubic yard" 8) Armor Protection - Top of Cell Assume full area of Cell X one-half (0.5) foot thick 3,234,252 sq ft X 0.5 ft. / 27 cubic feet per cubic yard = 59,894 cubic yards Use I 60,000 cubic yards | 9) Cell 3 North Slope (Slope #6) common with Cell 2 Average height Length No clay on slopes. Toe apron only at base of long slope or where drainage is directed. 2 feet 1100 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [2 X 2 X 5)/2] X 1100 11,000 cubic feet/27 = Remaining Random Fill [5X5X5)/2 - (2X2X5)/2] X1100 57,750 cubic feet/27 = Total Random Fill North Slope Use 407 cubic yards 410 cubic yards 2,139 cubic yards Use I 2,200 cubic yards"! I 2,610 cubic yards | b) Rock Armor 8" thick - 0.67 feet [5.67 X 5.67 X 5)/2 - (5 X 5 X 5)/2] X1100 19,659 cubic feet/27 = 728 cubic yards Use I 730 cubic yards j c) Rip Rap Filter 6" thick - 0.5 feet [5.5 X 5.5 X 5)/2 - (5 X 5 X 5)/2] X 1100 14,438 cubic feet/27 = Use 535 cubic yards 550 cubic yards d) Toe Apron No rock required Total Rock Armor Cell 3 north Slope 730 cubic yards | Volume Calculation Cell 3 Rev 4.6 October 2011 Volume Calculation - Cell 3 (con't) page 3 10) Cell 3 South Dike, west end (Slope #7; Average height Length 16 feet 1750 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [16 X 16 X 5)/2 - (16 X 16 X 3)/2] X 1750 448,000 cubic feet/ 27 = Remaining Random Fill [19X19X5)/2 - (16X16X5)/2] X1750 459,375 cubic feet/27 = Total Random Fill North Slope 16,593 cubic yards Use I 16,600 cubic yards j 17,014 cubic yards Use I 17,100 cubic yards | I 33,700 cubic yards~| b) Rock Armor 8" thick - 0.67 feet [19.67 X 19.67 X5)/2 - (19X19X5)/2] X 1750 113,351 cubic feet/27 = 4,198 cubic yards Use I 4,200 cubic yards" c) Rip Rap Filter 6" thick - 0.5 feet [19.5 X 19.5 X5)/2 - (519 X 19 X 5)/2] X1750 84,219 cubic feet/27 = Use 3,119 cubic yards 3,200 cubic yards d) Rock Apron at toe of slope Total Rock Armor Slope #7 [2ft X 7ft wide X 1750 long] / 27 = 907 Use I 1,000 cubic yards j 5,200 cubic yards j 11) Cell 3 South Dike ( Slope #8 ) VOLUME DELETED. AREA FILLED WITH CELL 4A TAILINGS Average height Length 0 feet 0 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge cubic yards Use cubic yards Volume Calculation Cell 3 Rev 4.6 October 2011 Remaining Random Fill Volume Calculation - Cell 3 (con't) page 4 cubic yards Use I - cubic yards Total Random Fill North Slope cubic yards | b) Rock Armor 8" thick - 0.67 feet Use cubic yards cubic yards j c) Rock Apron at toe of slope Use cubic yards j Total Rock Armor Cell 3 South Dike cubic yards [ 12) Cell 3 East Slope (Slope #9) Average height Length a) Random Fill No existing Dike 4 feet 800 feet [(4X4X5)/2]X800/27 = 1185 cubic yards Use I 1,200 cubic yards | Total Random Slope #4 I 1,200 cubic yards | b) Rock Armor 8" thick - 0.67 feet 14.52 cubic feet per linear foot of dike 14.52 cubic foot per linear foot X 800 / 27 430 cubic feet/27 = 430 cubic yards Use I 450 cubic yards c) Rip Rap Filter 6" thick - 0.5 feet 10.84 cubic foot per linear foot X 800/27 321 cubic feet/27 = Use d) Toe Apron Not required Total Rock Armor Cell 3 East Slope 321 cubic yards 325 cubic yards Volume Calculation Cell 3 Rev 4.6 October 2011 Volume Calculation - Cell 3 (con't) page 5 Volume Summary - Cells Bridging Layer Lower Random Clay Upper Random Rock Armor Rip Rap Filter Top of Cell 236,000 120,000 120,000 240,000 60,000 0 West (Slope #6) 410 2,200 730 550 South ( Slope #7) 16,600 17,100 5,200 3,200 South (Slope #8) --- East (Slope#9) 1,200 450 325 Totals 236,000 137,010 120,000 260,500 66,380 4,075 Volume Calculation Cell 3 Rev 4.6 October 2011 Volume Calculation - Cell 3 (con't) page 6 Cell 3 Reclamation Cat 637 Resource Requirements Volume Route Yds/hr % Equip. Hr. Cell 3 Bridging Lift Tailings Surface 236,000 C 285 100% 829.0 Cell 3 Lower Random Fill Tailings Surface 120,000 C 285 100% 421.5 Slope 6 410 C 285 100% 1.4 Slope 7 16,600 C 285 100% 58.3 Slope 8 -C 285 100% 0.0 Slope 9 -C 285 100% 0.0 Total 481.3 Cell 3 Upper Random Fill Tailings Surface 154,990 C 285 100% 544.4 Tailings Surface 85,010 D 358 100% 237.7 Slope 6 2,200 D 358 100% 6.2 Slope 7 17,100 D 358 100% 47.8 Slope 8 -D 358 100% 0.0 SlopeQ 1,200 D 358 100% 3.4 Total 839.4 Cell 3 Rock Armor - use Highway Trucks Volume Calculation Cell 3 Rev 4.6 October 2011 Volume Calculation - Cell 3 (con't) page 7 Clay Production Cell 3 ( use same assumptions as Cell 2 ) Clay Volume = 120,000 Bank Cubic Yards (BCY) 0.8 Swell Factor 150,000 Loose Cubic Yards (LCY) Trucking 475 LCY/hr 8 trucks plus one (1) Loader 150,000 LCY / 475 LCY/hr = I "se 316 hours 980 Loader DSN w/ ripper Cat 651 WW Cat 825 Comp. 14G Patrol 5000 gal WW 320 hours 320 X 8 Trucks = 2560 hours Hours 320 320 320 350 350 175 Rock Armor and Rip Rap Filter Production Cell 3 70,455 cubic yards (cy) 38 cy per hour times 8 trucks 304 cy per hour delivered Assume 25% extra time for spreading, loading and screen wait 304 /1.25 243.2 cy per hour 290 Hours Volume Calculation Cell 3 Rev 4.6 October 2011 Cell 4A RECLAMATION OF CELL 4A RECLAMATION OF CELL 4A Dewatering of Cell 4A Resource Description Units Cost/Unit Task Units Task Cost Dewatering of Cell 4A Total Dewatering cf Cell 4A Place Bridging (Platform) Lift Resource Description Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Bridging (Platform) Lift Place Lower Random Fill Resource Description hrs $0.48 62,400 $30,000 Units $30,000 Cost/Unit Task Units Task Cost hrs $210.35 554 $116,634 hrs $19.31 554 $10,706 hrs $97.64 139 $13,535 hrs $14.22 139 $1,971 hrs $95.82 139 $13,282 hrs $20.65 139 $2,863 hrs $81.27 139 $11,266 hrs $20.65 139 $2,863 hrs $113.30 139 $15,705 hrs $18.16 139 $2,517 hrs $71.34 139 $9,888 hrs $20.62 139 $2,859 hrs $18.46 1,248 $23,026 Units $227,115 Cost/Unit Task Units Task Cost hrs $210.35 461 $97,068 hrs $19.31 461 $8,910 hrs $97.64 115 $11,265 hrs $14.22 115 $1,640 hrs $81.27 115 $9,376 hrs $20.65 115 $2,383 hrs $71.34 115 $8,230 hrs $20.65 115 $2,383 hrs $113.30 115 $13,071 hrs $18.16 115 $2,095 hrs $71.34 115 $8,230 hrs $20.62 115 $2,379 hrs $18.46 1,038 $19,164 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butier) Total Place Lower Random Fill $186,192 Clay Layer Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 0 $0 hrs $19.31 0 $0 hrs $97.64 200 $19,529 hrs $14.22 200 $2,844 hrs $95.82 180 $17,247 hrs $20.65 180 $3,717 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 180 $20,394 hrs $18.16 98 $1,780 hrs $71.34 200 $14,267 hrs $20.62 200 $4,124 hrs $93.97 150 $14,095 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Cat 980 Loader 11/1/2011 - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill RECLAMATION OF CELL 4A Cat 980 Loader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Layer hrs $17.21 150 $2,582 hrs $65.95 150 $9,892 hrs $18.16 150 $2,724 hrs $38.33 1,440 $55,189 hrs $16.67 1,440 $24,011 hrs $18.46 1,060 $19,564 $211,960 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. Wtiite Mesa Mill RECLAMATION OF CELL 4A Upper Random Fill Resource Description Units Cost/Unit Task Units Task Cost Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Equipment Maintenance (Butier) Total Place Upper Random Fill Rock Armor and Filter Layer Resource Description hrs $210.35 569 $119,755 hrs $19.31 569 $10,992 hrs $97.64 142 $13,897 hrs $14.22 142 $2,024 hrs $95.82 142 $13,637 hrs $20.65 142 $2,939 hrs $81.27 142 $11,567 hrs $20.65 142 $2,939 hrs $113.30 142 $16,125 hrs $18.16 118 $2,143 hrs $71.34 142 $10,153 hrs $20.62 142 $2,935 hrs $65.95 142 $9,386 hrs $18.16 142 $2,585 hrs $18.46 1,423 $26,269 Units $247,348 Cost/Unit Task Units Task Cost Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Rock Cost Delivered Equipment Maintenance (Butler) hrs $81.27 240 $19,506 hrs $20.65 240 $4,957 hrs $113.30 240 $27,192 hrs $18.16 240 $4,359 hrs $71.34 240 $17,120 hrs $20.62 240 $4,949 CY $6.19 48,695 $301,347 hrs $18.46 720 $13,289 Total Place Rock Armor and Filter Layer Quality Control Resource Description Units Quality Control Contractor Total Quality Control TOTAL RECLAMATION OF CELL 4A hrs $392,718 Cost/Unit Task Units Task Cost $62.00 1,045 $64,790 $64,790 I $1,360,1231 11/1/2011 - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. Wtiite Mesa Mill RECLAMATION OF CELL 4A Volume Route Yds/ Hr % Equip Hours Cell 4 Bridging Lift Tailings Surface 198,500 1 358 100% 554.5 Cell 4A Lower Random Fill Tailings Surface 37,500 2 303 100% 123.8 Tailings Surface 28,500 1 358 100% 79.6 South Slope 77,000 2 303 100% 254.1 East Slope 1,200 2 303 100% 4.0 461.5 Cell 4A Upper Random Fill Tailings Surface 132,000 2 303 100% 435.6 South Slope 34,000 2 303 100% 112.2 East Slope 6,500 2 303 100% 21.5 569.3 Rock Armor Rip Rap Filter 100% 100% 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Volume Calculation - Cell 4A 1) Area of Cell 4A - 1,785,960 sqft = 41.00 acres Updated 02/24/11 //-O/-// 2) Assumptions - Bridging layer is placed using random fill from piles east of Cell 4A - Cell will be graded to Design elevation utilizing finer materials in random fill stockpiles and from "clay" stockpiles. - Clay will be mined, blended, and hauled from borrow site location in Section 16 - four miles south of the mill area, using belly dump trucks, clay layer on top of Cell only. - The upper 1 foot of random fill will be placed utilizing the fine random fill and clay stockpiles - Rock for side armor, top armor and toe aprons will come from an off-site gravel source one (1) mile north of Blanding. Rock will be produced through screening, stockpiled and trucked to the site at the time of use. Belly dump trucks will dump gravel in windrows on the top and sides of the Cell. 3) Bridging Layer ( Platform Fill) Remaining to be placed 1,785,960 sqft X 3 ft. / 27 cubic feet per cubic yard = 198,440 cubic yards Use I 198.500 cubic yardT 4) Bring Platform Fill up to Design elevation (Lower Random) Assume full area of Cell X one (1) foot thick 1,785,960 sqft X 1ft. / 27 cubic feet per cubic yard = 66,147 cubic yards Use I 66,000 cubic yards | 5) Placement of Clay Layer ( One (1) foot thick on top of Cell only ) Assume full area of Cell X one (1) foot thick 1,785,960 sq ft X 1 ft. / 27 cubic feet per cubic yard = 66,147 cubic yards Use I 66,000 cubic yards | Volume Calculation Cell 4A Rev 4.6 October 2011 Volume Calculation - Cell 4A (con't) page 2 6) Upper Random Fill Volume - Top of Cell area Assume full area of Cell X one (2) foot thick 1,785,960 sqft X 2 ft. / 27 cubic feet per cubic yard = 132,293 cubic yards Use I 132,500 cubic yards | 7) Armor Protection - Top of Cell Assume full area of Cell X one-half (0.5) foot thick 1,785,960 sqft X 0.5 ft. / 27 cubic feet per cubic yard = 33,073 cubic yards Use I 33,000 cubic yardsH 8) Cell 4A South Dike, ( Slope #1 ) Average height 36 feet Length 1600 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [36 X 36 X 5)/2 - (36 X 36 X 3)/2] X 1600 = 2,073,600 cubic feet/27 = 76,800 cubic yards Use I 77.000 cubic yards | Remaining Random Fill [39X39X5)/2 - (36 X 36 X 5)/2] X1600 900.000 cubic feet/27 = 33,333 cubic yards Use I 34.000 cubic yards | Total Random Fill South Slope | 111,000 cubic yards~| b) Rock Armor 8" thick - 0.67 feet [39.67 X 39.67 X 5)/2 - (39X39 X5)/2] XI600 210,836 cubic feet/27 = 7,809 cubic yards Use I 7,800 cubic yards | Volume Calculation Cell 4A Rev 4.6 October 2011 Volume Calculation - Cell 4A (con't) page 3 c) Rip Rap Filter 6" thick - 0.5 feet [39.5 X 39.5 X 5)/2 - (39 X 39 X 5)/2] X 1600 157,000 cubic feet/27 = Use 5,815 cubic yards 6,000 cubic yards d) Rock Apron at toe of slope [2ft X 7ft wide X 1600 long] / 27 = 830 , Use I 850 cubic yards | Total Rock Armor South Slope I 8,650 cubic yards 9) Cell 4A East Slope (Slope #2) Average height Length 8 feet 1200 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [8X8 X 5)/2 - (8 X 8 X 3)/2] X 1200 76,800 cubic feet/27 = 1185 cubic yards Use I 1.200 cubic yards^ Remaining Random Fill [11 X 11 X 5)/2 - (8 X 8 X 5)/2] X 1200 171,000 cubic feet/27 Total Random Slope #3 6,333 cubic yards Use I 6,500 cubic yards~| I 7,700 cubic yards | b) Rock Armor 8" thick - 0.67 feet 14.52 cubic feet per linear foot of dike 14.52 cubic foot per linear foot X 12007 27 = 645 cubic feet/ 27 = 24 cubic yards Use I 25 cubic yards | c) Rip Rap Filter 6" thick - 0.5 feet 10.84 cubic foot per linear foot X 1200 / 27 Volume Calculation Cell 4A Rev 4.6 October 2011 Volume Calculation - Cell 4A (con't) page 4 482 cubic feet/27 = Use c) Toe Apron Not required Total Rock Armor Cell 4A East Slope 18 cubic yards 20 cubic yards I 25 cubic yards_J Volume Summary - Cell 4A Bridging Layer Lower Random Clay Upper Random Rock Armor Rip Rap Filter Top of Cell 198,500 66,000 66,000 132,500 33,000 0 South ( Slope #1 ) 77.000 34,000 8,650 6,000 East (Slope #2) 1,200 6,500 25 20 Totals 198,500 144,200 66,000 173,000 41,675 6,020 Volume Calculation Cell 4A Rev 4.6 October 2011 Volume Calculation - Cell 4A (con't) page 5 Cell 4A Reclamation Cat 637 Resource Requirements Volume Route Yds/hr % Equip. Hr. Cell 4A Bridging Lift Tailings Surface 198,500 A 358 100% 554.9 Cell 4A Lower Random Fill Tailings Surface 37,500 B 303 100% 123.7 Tailings Surface 28,500 A 358 100% 79.7 Slope 1 77,000 B 303 100% 253.9 Slope 2 1,200 B 303 100% 4.0 Total 461.2 Cell 4A Upper Random Fill Tailings Surface 132.500 B 303 100% 436.9 Slope 1 34,000 B 303 100% 112.1 Slope 2 6,500 B 303 100% 21.4 Total 570.5 Cell 4A Rock Armor - use Highway Trucks Volume Calculation Cell 4A Rev 4.6 October 2011 Volume Calculation - Cell 4A (con't) page 6 Clay Volume = Clay Production Cell 4A ( use same assumptions as Cell 2 ) 66,000 Bank Cubic Yards (BCY) 0.8 Swell Factor 82,500 Loose Cubic Yards (LCY) Trucking 475 LCY/hr 8 trucks plus one (1) Loader 85,000 LCY / 475 LCY/hr = use 174 hours 180 hours I 180 X 8 Trucks = 1,440 hours Machine Hours 980 Loader 180 DSN w/ ripper 180 Cat 651 WW 180 Cat 825 Comp. 200 14G Patrol 200 5000 gal WW 150 Rock Armor and Filter Layer Production Cell 4A 47,695 cubic yards (cy) 38 cy per hour times 8 trucks 304 cy per hour delivered Assume 25% extra time for spreading, loading and screen wait 304 /1.25 243.2 cy per hour 196 Hours Volume Calculation Cell 4A Rev 4.6 October 2011 Cell 4B RECLAMATION OF CELL RECLAMATION OF CELL 4B Dewatering of Cell 4B Resource Descnption Units Cost/Unit Task Units Task Cost Dewatering of Cell 4B Total Dewatering of Cell 4B hrs $0.48 62,400 $30,000 $30,000 Place Bridging (Platform) Lift Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 655 $137,781 hrs $19.31 655 $12,647 hrs $97.64 164 $15,989 hrs $14.22 164 $2,328 hrs $95.82 164 $15,690 hrs $20.65 164 $3,382 hrs $81.27 164 $13,309 hrs $20.65 164 $3,382 hrs $113.30 164 $18,553 hrs $18.16 164 $2,974 hrs $71.34 164 $11,681 hrs $20.62 164 $3,377 hrs $18.46 1,474 $27,201 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Bridging (Platform) Lift Place Lower Random Fill . Resource Description $268,293 Units Cost/Unit Task Units Task Cost hrs $210.35 480 $100,969 hrs $19.31 480 $9,268 hrs $97.64 120 $11,717 hrs $14.22 120 $1,706 hrs $81.27 120 $9,753 hrs $20.65 120 $2,478 hrs $71.34 120 $8,560 hrs $20.65 120 $2,478 hrs $113.30 98 $11,103 hrs $18.16 98 $1,780 hrs $71.34 98 $6,991 hrs $20.62 98 $2,021 hrs $18.46 1,036 $19,122 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat D8N Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Equipment Maintenance (Butler) Total Place Lower Random Fill $187,946 11/1/2011 - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. Whiite Mesa Mill RECLAMATION OF CELlflb Clay Layer Resource Description Units Cost/Unit Task Units Task Cost hrs $210.35 0 $0 hrs $19.31 0 $0 hrs $97.64 200 $19,529 hrs $14.22 200 $2,844 hrs $95.82 180 $17,247 hrs $20.65 180 $3,717 hrs $81.27 0 $0 hrs $20.65 0 $0 hrs $113.30 180 $20,394 hrs $18.16 98 $1,780 hrs $71.34 200 $14,267 hrs $20.62 200 $4,124 hrs $93.97 150 $14,095 hrs $17.21 150 $2,582 hrs $65.95 150 $9,892 hrs $18.16 150 $2,724 hrs $38.33 1,440 $55,189 hrs $16.67 1,440 $24,011 hrs $18.46 1,060 $19,564 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat D8N Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Cat 980 Loader Cat 980 Loader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Highway Trucks Truck Drivers Equipment Maintenance (Butler) Total Place Clay Layer Upper Random Fill Resource Description $211,960 Units Cost/Unit Task Units Task Cost hrs $210.35 570 $119,901 hrs $19.31 570 $11,005 hrs $97.64 143 $13,914 hrs $14.22 143 $2,026 hrs $95.82 143 $13,654 hrs $20.65 143 $2,943 hrs $81.27 143 $11,582 hrs $20.65 143 $2,943 hrs $113.30 143 $16,145 hrs $18.16 98 $1,780 hrs $71.34 143 $10,165 hrs $20.62 143 $2,939 hrs $65.95 143 $9,397 hrs $18.16 143 $2,588 hrs $18.46 1,425 $26,301 Cat 637 Scraper Cat 637 Scraper Operators Cat 825 Compactor Cat 825 Compactor Operator Cat DSN Dozer With Ripper Cat DSN Dozer Operator Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Watenwagon Cat 651 Watenwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator 5000 Gallon Water Truck 5000 Gallon Water Truck Operator Equipment Maintenance (Butler) Total Place Upper Random Fill $247,283 Rock Armor and Filter Layer Resource Description Units CosVUnit Task Units Task Cost hrs $81.27 200 $16,255 hrs $20.65 200 $4,131 hrs $113.30 200 $22,660 hrs $18.16 200 $3,632 hrs $71.34 200 $14,267 hrs $20.62 200 $4,124 CY $6.19 48.695 $301,347 hrs $18.46 600 $11,074 Cat D7 Dozer Cat D7 Dozer Operator Cat 651 Waterwagon Cat 651 Waterwagon Operator Cat 14G Motorgrader Cat 14G Motorgrader Operator Rock Cost Delivered Equipment Maintenance (Butler) 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp, White Mesa Mill RECLAMATION OF CELL 4^ Total Place Rock Armor and Filter Layer Quality Control Resource Description $377,490 Units Cost/Unit Task Units Task Cost Quality Control Contractor Total Quality Control TOTAL RECLAMATION OF CELL 4B hrs $62.00 1,045 $64,790 $64,790 I $1,387,7621 11/1/2011 -1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp.. - White Mesa Mill RECLAMATION OF CELC Volume Route Yds/Hr % Cell 4B Bridging Lift Tailings Surface 198,500 303 Equip Hours 100% 655.1 Cell 4B Lower Random Fill Tailings Surface South Slope West Slope Cell 4B Upper Random Fill Tailings Surface South Slope West Slope 66,000 77,000 1,200 132,000 34,000 6,500 303 303 303 303 303 303 100% 100% 100% 217.8 254.1 4.0 100% 100% 100% 475.9 435.6 112.2 21.5 569.3 Rock Armor Rip Rap Filter 100% 100% 11/1/2011 - 1:40 PM - WMM Rec Plan Est October 2011 Rev 4.6 Denison Mines (USA) Corp. White Mesa Mill Volume Calculation - Cell 4B 1) Area of Cell 4B - 1,785,960 sqft = 41 acres Updated 02/24/11 //-0/-/I 2) Assumptions - Bridging layer is placed using random fill from piles west of Cell 4B - Cell will be graded to Design elevation utilizing finer materials in random fill stockpiles and from "clay" stockpiles. - Clay will be mined, blended, and hauled from borrow site location in Section 16 - four miles south of the mill area, using belly dump trucks, clay layer on top of Cell only. - The upper 1 foot of random fill will be placed utilizing the tine random till and clay stockpiles - Rock for side armor, top armor and toe aprons will come from an off-site gravel source one (1) mile north of Blanding. Rock will be produced through screening, stockpiled and trucked to the site at the time of use. Belly dump trucks will dump gravel in windrows on the top and sides of the Cell. 3) Bridging Layer ( Platform Fill) Remaining to be placed 1,785,960 sq ft X 3 ft. / 27 cubic feet per cubic yard 198,440 cubic yards Use I 198,500 cubic yardsHI 4) Bring Platform Fill up to Design elevation (Lower Random) Assume full area of Cell X one (1) foot thick 1,785,960 sq ft X 1 ft. / 27 cubic feet per cubic yard = 66,147 cubic yards Use I 66,000 cubic yards | 5) Placement of Clay Layer ( One (1) foot thick on top of Cell only) Assume full area of Cell X one (1) foot thick 1,785,960 sq ft X 1 ft. / 27 cubic feet per cubic yard = 66,147 cubic yards Use I 66,000 cubic yards | Volume Calculation Cell 4B Rev 4.6 October 2011 Volume Calculation - Cell 4B (con't) page 2 6) Upper Random Fill Volume - Top of Cell area Assume full area of Cell X one (2) foot thick 1,785,960 sq ft X 2 ft / 27 cubic feet per cubic yard = 132,293 cubic yards Use I 132.000 cubic yards | 7) Armor Protection - Top of Cell Assume full area of Cell X one-half (0.5) foot thick 1,785,960 sq ft X 0.5 ft. / 27 cubic feet per cubic yard = 33,073 cubic yards Use I 33,000 cubic yard^n 8) Cell 4A South Dike, ( Slope #1 ) Average height Length 36 feet 1600 feet a) Random fill to reduce slope from 3:1 to 5:1 First Wedge [36 X 36 X 5)/2 - (36 X 36 X 3)/2] X 1600 = 2,073,600 cubic feet/27 Remaining Random Fill [39 X 39 X 5)/2 - (36 X 36 X 5)/2] X 1600 900,000 cubic feet/27 Total Random Fill South Slope 76,800 cubic yards Use I 77,000 cubic yardrH 33,333 cubic yards Use I 34.000 cubic yards | I 111,000 cubic yards | b) Rock Armor 8" thick - 0.67 feet [39.67 X 39.67 X 5)/2 - (39X39X5)/2] X1600 210,836 cubic feet/27 = 7,809 cubic yards Use [ 7,800 cubic yards | Volume Calculation Cell 4B Rev 4.6 October 2011 Volume Calculation - Cell 4B (con't) page 3 c) Rip Rap Filter 6" thick - 0.5 feet [39.5 X 39.5 X 5)/2 - (39X39X5)/2] X1600 = 157,000 cubic feet/27 = 5,815 cubic yards Use 6,000 cubic yards d) Rock Apron at toe of slope [2ft X 7ft wide X 1600 long] / 27 = 830 Use I 850 cubic yards | Total Rock Armor South Slope \ 8,650 cubic yards | 9) Cell 4B West Slope (Slope #2) Average height 8 feet Length 1200 feet a) Random till to reduce slope from 3:1 to 5:1 First Wedge [8X8X5)/2 - (8X8X3)/2] X1200 76,800 cubic feet/27 = 1185 cubic yards Use I 1,200 cubic yards | Remaining Random Fill [11 X 11 X 5)/2 - (8 X 8 X 5)/2] X 1200 171,000 cubic feet/27 = 6,333 cubic yards Use I 6,500 cubic yards | Total Random Slope #3 | 7,700 cubic yards | b) Rock Armor 8" thick - 0.67 feet 14.52 cubic feet per linear foot of dike 14.52 cubic foot per linear foot X 1200/27 = 645 cubic feet/ 27 = 24 cubic yards Use I 25 cubic yards | c) Rip Rap Filter 6" thick - 0.5 feet 10.84 cubic foot per linear foot X 1200 / 27 Volume Calculation Cell 4B Rev 4.6 October 2011 Volume Calculation - Cell 4B (con't) page 4 482 cubic feet/27 = Use c) Toe Apron Not required Total Rock Armor Cell 4B West Slope 18 cubic yards 20 cubic yards 25 cubic yards | Volume Summary - Cell 4B Bridging Layer Lower Random Clay Upper Random Rock Armor Rip[ Rap Filter Top of Cell 198,500 66,000 66,000 132,000 33.000 0 South ( Slope #1 ) 77,000 34,000 8,650 6,000 West (Slope #3) 1,200 6,500 25 20 Totals 198,500 144,200 66,000 172,500 41,675 6,020 Volume Calculation Cell 4B Rev 4.6 October 2011 Volume Calculation - Cell 4B (con't) page 5 Cell 48 Reclamation Cat 637 Resource Requirements Volume Route Yds/hr % Equip. Hr. Cell 4B Bridging Lift Tailings Surface 198,500 B 303 100% 654.6 Cell 4B Lower Random Fill Tailings Surface 66,000 B 303 100% 217.6 Slope 1 77,000 B 303 100% 253.9 Slope 2 1,200 B 303 100% 4.0 Total 475.5 Cell 4B Upper Random Fill Tailings Surface 132,000 B 303 100% 435.3 Slope 1 34.000 B 303 100% 112.1 Slope 2 6,500 B 303 100% 21.4 Total 568.8 Cell 4B Rock Armor ~ use Highway Trucks Volume Calculation Cell 4B Rev 4.6 October 2011 Volume Calculation - Cell 4B (con't) page 6 Clay Volume = Clay Production Cell 4B ( use same assumptions as Cell 2 ) 66.000 Bank Cubic Yards (BCY) 0.8 Swell Factor 82,500 Loose Cubic Yards (LCY) Trucking 475 LCY/hr 8 trucks plus one (1) Loader 85,000 LCY / 475 LCY/hr = 174 hours use 180 hours 180 X 8 Trucks = 1,440 hours Machine Hours 980 Loader 180 D8N w/ ripper 180 Cat 651 WW 180 Cat 825 Comp. 200 14G Patrol 200 5000 gal WW 150 Rock Armor and Filter Layer Production Cell 4B 47,695 cubic yards (cy) 38 cy per hour times 8 trucks 304 cy per hour delivered Assume 25% extra time for spreading, loading and screen wait 304/1.25 243.2 cy per hour 196 Hours Volume Calculation Cell 4B Rev 4.6 October 2011 Miscellaneous MISCELLANEOUS ITEMS MISCELLANEOUS ITEMS Equipment Mobilization Resource Description Units Cost/Unit Task Units Task Cost Butler Machinery Mobilization LS $386,600 1 $386,600 Other Equipment Mobilization LS $4,550 1 $4,550 Cranes LS $2,700 2 $5,400 Total Equipment Mobilization $396,550 Office Facilities Resource Description Units Cost/Unit Task Units Task Cost Install New Powerline LS $15,000 1 $15,000 Utilities for Offices months $1,000 36 $36,000 Temporary Office Trailer months $1,500 3 $4,500 Temporary Office Trailer, mob, demob & setup LS $3,000 1 $3,000 Total Office Facilities $58,500 Decontamination Pad Resource Description Units Cost/Unit Task Units Task Cost Laborers hrs $13 8,320 $104,046 Construct Wheel Wash Facility LS $180,000 1 $180,000 Total Decontamination Facilities Facilities constructed in 2000 & 2008 ($130,000) $104,046 Plug and Abandon WW2 Resource Description Units Cost/Unit Task Units Task Cost Laborers hrs $0 8,320 $0 Contract Services LS $20,000 1 $20,000 Total Plug and Abandon WW2 $20,000 Slimes Drain Evaporation Pond Resource Description Units Cost/Unit Task Units Task Cost 60 mil HDPE Liner, installed sq. ft. $0.58 960,000 $556,800 Cat 637 Scraper hrs $210.35 100 $21,035 Cat 637 Scraper Operator hrs $19.31 100 $1,931 Cat 825 Compactor hrs $97.64 25 $2,441 Cat 825 Compactor Operator hrs $14.22 25 $355 Cat D7 Dozer hrs $81.27 25 $2,032 Cat D7 Dozer Operator hrs $20.65 25 $516 Cat 651 Waterwagon hrs $113.30 25 $2,832 Cat 651 Watenwagon Operator hrs $18.16 25 $454 Cat 14G Motorgrader hrs $71.34 25 $1,783 Cat 14G Motorgrader Operator hrs $20.62 25 $516 Equipment Maintenance (Butler) hrs $18.46 200 $3,691 Total Slimes Drain Evaporation Pond $594,388 MANAGEMENT/SUPPORT Resource Description Units Cost/Unit Task Units Task Cost Manager/Engineer hrs $59.06 6,240 $368,561 Radiation Safety Officer hrs $46.15 6,240 $287,969 Secretary hrs $18.66 6,240 $116,465 Clerk hrs $15.36 4,866 $74,726 Environmental Technician (3/4 time, 4.5 years) hrs $25.99 7,300 $189,714 Maintenance Foreman hrs $33.86 6,240 $211,308 Chemist hrs $27.17 2,080 $56,513 Security hrs $10.00 18,720 $187,229 Safety Engineer hrs $25.99 4,160 $108,111 Misc. Materials & Supplies hrs $36.45 6,240 $227,448 Health Physics Costs hrs $64.81 2,080 $134,800 Environmental Monitoring Costs, Laboratory years $71,620.00 7.0 $501,340 Total Management/Support $2,464,184 TOTAL MISCELLANEOUS ITEMS 1 $3,637,667| 11/1/2011 -1:40 PM-WMM Rec Plan Est October 2011 Rev4.6 Denison Mines (USA) Corp. White Mesa Mill Rock Production ROCK PRODUCTION COST Assumptions: Rock is obtained from gravel source north of Blanding, Utah. BLM Public Pit Rip Rap Rock is processed by screening only, no crushing is required, 1.25 CY of feed for 1 CY of product Filter material is produced from Rip Rap reject Rock is produced and stockpiled at the site Site is 7 road miles from the mill; 6 miles of which Is paved public highway Rock will be hauled in 22 CY bellydump trucks, contract haulers ($100.00/hr) Rock will be dumped in windrows on Tailings Cells by trucks, spread by grader, and spread by D7 Dozer Trucks can average 30 MPH (1.75 rounds/hr) Plant Product Material Feed Throughput Required (CY) Reject Factor to Plant (CY) (CY/hr) Rip Rap matrial fed to plant 189,000 25.0% 236,250 122 Filter material fed to plant 25,500 10.0% 28,050 122 214,500 Plant Operating Hours 1,900 200 2,100 PRODUCTION OF RIPRAP Resource Description Units Cost/Unit Task Units Task Cost Laborer Cat DSN Dozer With Ripper Cat D8N Dozer Operator Cat 980 Loader Cat 980 Loader Operator Screening Plant w/conveyors* BLM Usage Fee Contract Highway Trucks - Bellydumps' Equipment Maintenance (Butler) hrs $12.51 2,100 $26,262 hrs $95.82 375 $35,932 hrs $20.65 375 $7,745 hrs $93.97 2,100 $197,337 hrs $17.21 2,100 $36,149 hrs $64.13 2,100 $134,670 CY $0.60 214,500 $128,700 hrs $100.00 5,571 $557,143 hrs $18.46 2,475 $45,681 Total Production of RipRap RIPRAP COST PER CUBIC YARD DELIVERED $1,169,618 I $6.19| Cost Quoted from Power Motive Corporation, Denver, Colorado updated February 21, 2011 $7,000 plus $3,700 for conveyors, 176 hours per month for one month, plus screen set up at $2,000. Mob and Demob - $ 5,000.00 Cost quoted from Dennis Cosby, Cosby Trucking, Inc., Blanding, Utah, Updated February 25, 2011 (includes ownership expense, fuel, maintanence and operator) 11/1/2011 -1 ;40 PM - WMM Rec Plan Est October 2011 Rev 4.6 International Uranium (USA) Corp. 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(/} m o o a Haul Roads HAUL ROUTE SUMMARY f Haul Route Travel Time (min) Fixed Time (min) Total Cycle Time (min) 1 rips per worK Hour ^ Bank Cubic Yards per Hour A 2.7 1.2 3.9 12.8 358 B 3.4 1.2 4.6 10.9 303 C 3.7 1.2 4.9 10.2 285 D 2.7 1.2 3.9 12.8 358 E 4.1 1.2 5.3 9.4 263 F 2.4 1.2 3.6 13.9 388 G 2.2 1.2 3.4 14.7 410 H 2.4 1.2 3.6 13.9 388 1 3.8 1.2 5 10.0 279 J 4.4 1.2 5.6 8.9 249 50 minute work hour (83.3% efficiency) HAUL ROUTE DESCRIPTION S Haul Route Material Source Material Type Material Destination In-Stockpile Quantity (cy) Notes A E8 random fill Tailings Surface and Outslopes of Cells 4A and 4B 227,000 227,000 cy (all) from E8 B W8 random fill Tailings Surface of Cells 4A and 4B 803,900 803,900 cy (89%) from W8 C E2, E3, E4, E5, E6, E7, random fill Cell 3 Tailings Surface and Outslopes 420,000 All of stockpiles E2-E7 D W5 random fill Cell 3 Tailings Surface and Outslopes 213,600 213,600 (22%) from W5 E W5 random fill Cell 2 Tailings Surface and Outslopes 376,600 376,600 cy (39%) from W5 F W2 random fill Cell 1 101,593 101,600 cy (18%) from W2 G W4 topsoil Cell 1 25,000 25,000 cy (29%) of W4 H Mill Site (Contaminated Soils) Cell 1 N/A 1 W3 topsoil Mill Site 48,600 48,600 cy (57%) of Stockpile W3 J Cell 1 Contaminated Material Cell 4B N/A IN-PU VCE VOLUM ES Erosion Rip Rap Random Fill Protection Compacted Bedding Rip Rap Subtotal Cell Bridging Layer Lower Random Clay Upper Random Layer Topsoil Rock Mu\ch Outslope Fill Layer Anmor (cy) 1 0 50,556 25,615 51,037 25,000 101,593 2 0 126,100 113,000 250,500 0 0 0 0 6,770 66,175 376,600 3 236,000 137,010 120,000 260,500 0 0 0 0 4,075 66,380 633,510 4a 198,500 144,200 66,000 173,000 0 0 0 0 6,020 41,675 515,700 4b 198,500 144,200 66,000 172,500 0 0 0 0 6,020 41,675 515,200 Mill 0 0 0 0 0 48,600 0 0 0 0 0 Subtotal: 633,000 602,066 390,615 907,537 0 73,600 0 0 22,885 215,905 2,142,603 TOTAL: 2,142,603 IN-STOC KPILE VOLUMES Erosion Rip Rap Random Fill Protection Compacted Bedding Rip Rap Subtotal Cell Bridging Layer Lower Random Clay Upper Random Layer Topsoil Rock Mulch Outslope Fill Layer Armor (cy) 1 0 50,556 28,629 51,037 0 25,000 N/A 0 N/A N/A 101,593 2 0 126,100 126,294 250,500 0 0 N/A 0 N/A N/A 376,600 3 236,000 137,010 134,118 260,500 0 0 N/A 0 N/A N/A 633,510 4a 198,500 144,200 73,765 173,000 0 0 N/A 0 N/A N/A 515,700 4b 198,500 144,200 73,765 172,500 0 0 N/A 0 N/A N/A 515,200 Mill 0 0 0 0 48,600 N/A N/A 0 Subtotal: 633,000 602,066 436,570 907,537 0 73,600 0 0 0 0 2,142,603 TOTAL: 2,143,000 Relative Compaction in Stockpiles: 85% TRAVEL TIMES LOADED Segment 1 Segnient2 Travel Travel Haul Length Time Length Time Route (ft) GR TR (%) (min) (ft) GR TR(%) (min) A 420 -7% -2% 0.3 1,590 0% 5% 1.1 B 760 -1% 4% 0.6 1,810 0% 5% 1.2 C 810 0% 5% 0.8 1,870 0% 5% 1.3 D 2,470 0% 5% 1.7 E 800 1% 6% 0.9 2,320 0% 5% 1.5 F 570 0% 5% 0.5 1,340 -1% 4% 0.8 G 1,440 0% 5% 1 H 2,030 -1% 4% 1.1 1 1,695 -2% 3% 0.9 1,695 2% 7% 1.4 J 1,980 0% 5% 1.3 1,620 -1% 4% 1 EMPTY Segment 2 Segment 1 TOTAL Total Maneuver Total Travel Travel Travel Load and Cycle Haul Length Time Length Time Tirrie Time Spread Time Route (ft) GR TR (%) (min) (ft) GR TR (%) (min) (min) (min) ^ Time (min) (min) A 1,590 0% 5% 0.9 420 7% 12% 0.4 2.7 0.6 0.6 3.9 B 1,810 0% 5% 1.1 760 1% 6% 0.5 3.4 0.6 0.6 4.6 C 1,870 0% 5% 1.1 810 0% 5% 0.5 3.7 0.6 0.6 4.9 D 2,470 0% 5% 1 2.7 0.6 0.6 3.9 E 2,320 0% 5% 1.2 800 -1% 4% 0.5 4.1 0.6 0.6 5.3 F 1,340 1% 6% 0.8 570 0% 5% 0.3 2.4 0.6 0.6 3.6 G 1,440 0% 5% 1.2 2.2 0.6 0.6 3.4 H 2,030 1% 6% 1.3 2.4 0.6 0.6 3.6 1 1,695 -2% 3% 0.6 1,695 2% 7% 0.9 3.8 0.6 0.6 5.0 J 1,620 1% 6% 1 1,980 0% 5% 1.1 4.4 0.6 0.6 5.6 Loaded using 1 08 HAUL ROUTE DISTANCES > AND GRADES (LOADED) Haul Segment 1 Segment 2 Route Length (ft) Initial El. Final El. Grade (%) Length (ft) Initial El. Final El. Grade (%) A 420 5,610 5,581 -6.9% 1,590 5,581 5,581 0.0% B 760 5,624 5,617 -0.9% 1,810 5,617 5,613 -0.2% c 810 5,620 5,619 -0.1% 1,870 5,619 5,620 0.1% D 2,470 5,612 5,620 0.3% E 800 5,612 5,620 1.0% 2,320 5,620 5,625 0.2% F 570 5,625 5,627 0.4% 1,340 5,627 5,620 -0.5% G 1,440 5,624 5,620 -0.3% H 2,030 5,637 5,622 -0.7% 1 1,695 5,640 5,610 -1.8% 1,695 5,610 5,637 1.6% J 1,980 5,610 5,616 0.3% 1,620 5,616 5,605 -0.7% HAUL ROUTE DISTANCES AND GRADES (EMPTY) Haul Segment 2 Segment 1 Route Length (ft) Initial El. Final El. Grade (%) Length (ft) Initial El. Final El. Grade (%) A 1,590 5,581 5,581 0.0% 420 5,581 5,610 6.9% B 1,810 5,613 5,617 0.2% 760 5,617 5,624 0.9% c 1,870 5,620 5,619 -0.1% 810 5,619 5,620 0.1% D 2,470 5,620 5,612 -0.3% E 2,320 5,625 5,620 -0.2% 800 5,620 5,612 -1.0% F 1,340 5,620 5,627 0.5% 570 5,627 5,625 -0.4% G 1,440 5,620 5,624 0.3% H 2,030 5,622 5,637 0.7% 1 1,695 5,637 5,610 -1.6% 1,695 5,610 5,640 1.8% J 1,620 5,605 5,616 0.7% 1,980 5,616 5,610 -0.3% Estimated Load Load (LCY) Factor Payload (BCY) Cat637G 31 0.9 27.9 Assume 1 BCY = 3,200 Ib Machine Weight (Empty) = 114,744 Ib Payload = 89,280 Ib Machine Weight (Loaded) = 204,024 Ib Calculate Usable Pull (Traction Limitation) Percentage of Weight on Driving Wheels (Loaded) = 49% Percentage of Weight on Driving Wheels (Empty)= 59% Usable Pull = Traction Factor * Weight on Driving Wheels Traction Factor (med. firm earth) = 0.5 page 27-2 Usable Pull (Loaded) = 49,986 Ib Usable Pull (Empty) = 33,849 Ib Altitude Deration Factor @ 5,600 ft amsl = 1 page 27-8 Rolling Resistance (rutted/flexing dirt roadway w/ little maintenance and no water) = 5% page 27-1 Evaporation Pond Liner Phone Call Summary From: Steve McManus (MWH Americas, Inc.) To: Kit Hawkins (Northwest Linings and Geotextile Products, Inc.) Phone #: (800) 729-6954 Date: September 26, 2011 12:35pm (MDT) Conversation: Steve inquired about a unit rate estimate for an evaporation pond liner (installed). 900,000- 1,000,000 square feet of liner, 4:1 side slopes, 60-mil smooth HDPE, public wages. Kit Hawkins estimated $0.55 - 0.58 per square foot of liner (installed).