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_H E, <br />A � <br />ANNUAL EXPLORATION & RECLAIMATION REPORT <br />June 10, 20 3 — June 10, 2014 <br />Prospect NOI No.: P- 2011 -010 <br />Prospect Site Name: Equity Exploration <br />Project <br />Operator/Prospector: Randy McClure <br />Rio Grande Silver, <br />Inc. <br />625 USFS Road <br />504.1A <br />P.O. Box 610 <br />Creede, Colorado <br />81130 <br />Tel. (719) 658-'080 <br />EXPLORATION <br />Please see attached figures showing the locatiO of the permitted area, surface infrastructure <br />(proposed and existing) and past completed d 'lling. <br />Between June 10, 2013 and June 10, 2014, n� drilling was completed on the Equity Exploration <br />Project NOI. <br />Currently, data analysis and review of the un <br />undertaken by RGS staff. As a result, field ac <br />suspended and the mine has been put on care <br />found drilling results at the Equity is being <br />ties at the Equity Mine have been temporarily <br />I maintenance. <br />In October 2012, RGS applied for a modifica ion to the original NOI permit that would expand <br />the affected area boundary of the NOI to accommodate development rock storage on the surface. <br />Additionally, this modification requested that two small development rock piles be placed on <br />surface. With this request, RGS agreed to perform Acid -Base Accounting (ABA) as well as <br />Synthetic Precipitation leaching Procedure (S LP) testing initially and then again every 3,000 <br />cubic yards of removed material put on surface. Part of this modification also requires RGS, on a <br />quarterly basis, to provide DRMS with a repo rt outlining any testing results as well as pH results <br />from West Willow Creek field testing near the site. To date, no waste rock has been brought to <br />surface. RGS will suspend Synthetic precipit tion leaching procedure (SPLP) and Acid -Base <br />Accounting (ABA) sampling and reporting f the Equity Exploration Project until field efforts <br />on the project resume. <br />625 USFS Road 504.1A F.O. Box 610 Creede, CO 81130 <br />719 - 658 -10801 Fax 719- 658 -1082 <br />