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S.I EVE R , INC., <br />October 28, 2013 <br />Christine Brookshire <br />Colorado Division of Reclamation, Mining, and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />RECEIVED <br />OCT 202013 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />RE: 2013 Annual Report for Bulldog Mine Operation, Permit No. M- 1977 -215 <br />Dear Ms. Brookshire, <br />Enclosed is the annual report for the Bulldog Mine Operation, Permit No. M- 1977 -215. <br />Also Enclosed please find a Check #1347 from Rio Grande Silver, Inc. for $633.00 as <br />payment of the annual fee for the above -noted permit <br />New Disturbance <br />In 2013, Rio Grande Silver (RGS) was granted approval for two Technical Revisions to <br />the Colorado Department of Reclamation, Mining and Safety (DRMS) for the Bulldog <br />Mine Operation, Permit No. M- 1977 -215: <br />TR -21, Add a Warming Shed for the Batch Mixer and Parking area for staff <br />(approved January 11, 2013) <br />TR -22, Re -open 9700 portal, Road improvements below 9700 portal, Vent Raise <br />in Area "E ", Transformer Slab at 9400 Portal, City Water line Connection, and <br />Expansion of Waste Rock Storage facility at 9400 portal (approved June 7, <br />2013) <br />TR -21 <br />Warming Shed for Shot Crete batch mixer <br />In late January 2013, Rio Grande Silver (RGS) is constructed a new warming shed for <br />the Shot Crete mixer on patented mining property adjacent to the existing Batch Plant <br />Building. The project consists of a series of steel sets on 4' centers covered with Sheet <br />metal. The structure rests on an existing foundation and be insulated with concrete <br />blankets The purpose of the building is to pre -warm the mixer to help ensure consistent <br />Shot Crete temperatures. (Refer to figure 1 attached) <br />Parking Area for Employees <br />Also in late January, 2013, RGS completed the addition of a small parking area on <br />Forest Service property adjacent to the mine site that is less than .5 acres in size. A <br />fence was placed around the perimeter of the parking area to ensure that access to the <br />PPE area of the Mine remains consistent with current controls ( Refer to Figure 2 <br />attached) <br />112 East 12t" Street P.O. Box 610 Creede. CO 81130 <br />719 -658 -1080 Fax 719 -658 -1082 <br />