DRC-2012-001631 - 0901a068802e84f4

State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
June 27, 2012
David Frydenlund
Vice President Regulatory Affairs and Counsel
Denison Mines (USA) Corp
1050 17'^ Street, Suite 950
Denver, Colorado 80265
RE Acquisition by Energy Fuels Inc of Denison Mines Corp's U S Operations and Name
Change State of Utah Radioactive Matenals License No UT1900479 and State of Utah
Ground Water Discharge Permit No UGW370004
Dear Mr Frydenlund
In your letter dated May 25, 2012, as counsel for the licensee, you notified the Division of
Radiation Control, (DRC), of the mtended acquisition by Energy Fuels Inc ("Energy Fuels") of
all of Denison Mines Corp 's ("Demson's") United States operations In the above referenced
letter you specifically requested that I approve an indirect transfer of control of Utah Radioactive
Matenals License Number UT 1900479 for the White Mesa uranium mill (the "Mill") from
Denison to Energy Fuels Dennison is presently the ultimate parent company of Denison Mines
(USA) Corp , the operating company and licensee of the Mill located m San Juan County, Utah
In a telephone conversation on June 27, 2012, with John Hultquist and Gwyn Galloway of my
staff, you clanfied the proposed transaction and clanfied that the Energy Fuels shares provided to
Dennison would be distributed to Denison's shareholders on a pro rata basis By distnbuting the
shares, Dennison would no longer hold Energy Fuels shares and Energy Fuels would own 100%
of Denison's United States operations including the Mill located in San Juan County, Utah As
descnbed, DRC staff concurs that the proposed transaction will require an indirect transfer of
control of the Mill License Additionally, in the telephone conversation referenced above, Mr
Hultquist and Ms Galloway requested additional information to address the indirect transfer of
control The requested information was provided in Energy Fuels' letter dated June 27, 2012
The Utah Administrative Code, Subsection R313-19-34(2), states that licenses or nghts granted
by a license cannot be transferred, assigned, or m any manner disposed of, either voluntanly or
involuntanly, directly or indirectly, through transfer of control of a license to a person unless the
195 North 1950 West • Salt Uke City, UT
Mailmg Address P O Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] 'TDD (801) 536^414
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Director* shall give wntten consent Please know that the information you submitted has met our
needs Therefore, in accordance with R313-19-34(2), the requested indirect transfer of control is
approved Additionally, approval is granted for the indirect transfer of control regarding the Mill's
Ground Water Discharge Permit No UGW370004
Please note that a name change to the Mill license should be submitted within 30 days of this
approval if a name change is to be made Once the name has been changed on the Mill license, a
modification to the Mill's financial surety mechanism will be required Please note that dunng the
modification to the surety mechanism, in addition to the name and ownership changes, references
to the Executive Secretary should be changed to the Director of the Division of Radiation Control
If you have additional questions regarding this matter, please contact John Hultquist or Gwyn
Galloway at [phone]
UTAH DIVISON OF RADIATION CONTROL
Rusty Lundberg/Director v)
Please note that due to Senate Bill 21 of the 2012 Utah Legislative Session, references to Executive Secretary of
the Utah Radiation Control Board in the Utah Radiation Control Act and Administrative have been modified to
be the Director of Radiation Control