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Battle Mountain Resources, Inc <br />San Luis Project <br />P.O. Box 310 <br />San Luis, Colorado 81152 -0310 <br />(719) 379 -0798 <br />September 5, 2013 <br />Mr. Wally Erickson <br />Colorado Department of Reclamation, Mining, & Safety <br />1313 Sherman, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources, Inc. <br />San Luis Project — Permit No.M -88 -112 <br />Monitoring Well M -14 TDS Sample Results <br />Dear Mr. Erickson: <br />RECEIVED <br />SEP 10 2013 <br />DMSION OF RECLAMATION <br />MINING AND SAFETY <br />Battle Mountain Resources, Inc. (BMRI) received the final analytical report from SVL Laboratories on <br />August 30, 2013 for the third quarter sampling at monitoring well M -14 collected on July 18, 2013. The <br />TDS reported concentration of 639 milligrams per liter (mg/1) exceeded the 500 mg/1 TDS Permit <br />Condition Value assigned to this well. <br />BMRI submitted a response plan dated August 28, 2013 to Colorado Department of Reclamation, Mining, <br />& Safety ( CDRMS) which includes specific actions to be conducted by BMRI to identify possible sources <br />for the variability of TDS found in previous verification sampling at monitoring well M -14. Because the <br />response plan for M -14 has already been submitted for review and approval to CDRMS, this letter shall <br />serve as the notice of exceedance as required under TR -32. No additional verification sampling will be <br />performed until CDRMS has had a chance to review and comment on the response plan at M -14. <br />Should the Division have any questions or require any clarifications regarding this correspondence, please <br />notify me at (719) 379 -0538. <br />ni cerely, <br />ulio Madrid <br />Authorized Agent <br />Battle Mountain Resources, Inc. <br />Cc: BMRI File <br />Lawrence Fiske, Newmont USA Limited <br />Tim Runnells, AESI <br />