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BATTLE MOUNTAIN RESOURCES, INC. <br />September 05, 2014 <br />Mr. Wally Erickson <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No.M -88 -112 <br />August 2014 Monthly Report <br />Dear Mr. Erickson: <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of August, 2014. <br />Surface and ground water monitoring and analysis were completed for all required sites during the month <br />per the terms and conditions of the TR -32 Quality Assurance and Quality Control (QA/QC) plan. <br />Vacuum on the tailing lysimeters was verified on August 28h, no water was present for sampling and <br />subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells in August 28". August tailing impoundment piezometer measurements identified <br />these installations were either dry or contained less than 12 inches of water as illustrated in Table 2. <br />Tables 1 and 2 below identify the depth to water measurements collected for each of the site monitoring <br />wells, piezometers and lysimeters as required by the terms and conditions of the TR -32 QA/QC plan. <br />The leak detection system was measured on August 28`h. A total of 770 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 26.5 gpad. The tailings pond under -drain <br />measured 39.5 gpm. <br />During the month of July, the West Pit water treatment plant operated efficiently discharging a total of <br />5,966,300 gallons (18.31 acre -feet) of water to Rito Seco Creek and a total of 2,341,000 gallons (7.18 <br />acre-feet) of water was transferred from the West Pit to the tailings impoundment. Seepage along Rito <br />Seco Creek remained dry during the month. <br />REciety <br />"0 <br />vM SEP 09 7014 <br />S /p/V OF <br />M IIyINGAND S ATIOIV <br />P.O. Box 310 - San Luis, Colorado 81152 -0310 - (719) 379 -0798 - Fax (719) 379 -0713 <br />