By:Frank Filas, P.E.Environmental ManagerEnergy Fuels Resources Corporation44 Union Blvd., Suite 600Lakewood, Colorado

80228

Uranium Development in Colorado and Potential

Water Impacts

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Uravan Mineral BeltMorrison Formation Uranium

and Vanadium Deposits

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In-Place Uranium/Vanadium Resource

Salt Wash Sandstone – Morrison Formation

MiningDry Mine: 7 gallons per ton of ore mined

(200 tpd mine consumes 350,000 gallons per year)

Wet Mine: Discharge of 10 to 100 gpm of treated mine water(Pump, treat and discharge 5 to 50 million gallons per year)

MillingPiñon Ridge Mill: 415 gallons per ton of ore milled

(500 tpd mill consumes 73 million gallons of water per year)

Impacts from Water Consumption

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MiningSite run-off and mine water discharge may contain

elevated concentrations of metals and radionuclides; especially uranium, radium-226, arsenic and selenium

Mining may result in groundwater impacts; however, groundwater is typically of poor quality prior to mining

MillingMill process and waste solutions have low pH levels

and very elevated concentrations of radionuclides and metals. A release of these solutions could impact surface and groundwater systems.

Potential Water Quality Impacts

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Mine Operation Surface facilities are sited to avoid drainages, streams, wetlands

and other water features Mine water treated prior to discharge to meet State standards Off-site water diverted around the mine site On-site precipitation and run-off is collected in a sedimentation

basin Ore pad is typically lined and designed as a zero-discharge

facilityMine Closure

All mines in Colorado are fully bonded for reclamation Surface facilities are demolished, regraded, topsoiled and seeded Underground workings are sealed in accordance with best

management practices to prevent intermingling of aquiferso Dry mine practiceso Wet mine practices

Water Quality Protection Measures at Mines

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Whirlwind MineNear Gateway, Colorado

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Mill Operation Current mill siting standards require a remote location away from rivers,

streams and shallow aquifers Mills are designed as zero-discharge facilities Processing tanks, equipment and piping are designed with secondary

containment and leak detection Wastewater impoundments have multiple liner systems and leak

collection and recovery systems All precipitation and run-off on mill sites is contained and used on-site or

treated and dischargedMill Closure

All mills are fully bonded for site closure and reclamation All contaminated materials are placed in a tailings cell and covered with

a soil cover designed to resist erosion Funding for long-term care and maintenance is provided to the DOE by

the mill operator

Water Quality Protection Measures at Mills

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Typical Liner System

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Piñon Ridge Mill

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Reclaimed Uravan Mill

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Uranium mining will have limited impact on water consumption and use

Uranium milling will have a larger impact on water consumption and use but also will provide substantial quantities of uranium and vanadium for power generation and industrial use

Mining impacts to surface and groundwater are minimized through modern mine and reclamation design practices

Milling impacts to surface and groundwater are minimized through proper siting, secondary containment measures, and comprehensive closure and reclamation

Summary