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Michael Cunningham <br /> October 16, 2014 <br /> Page 3 <br /> 4. Ponds 3 and 4 are currently undergoing cleanout of excessive silt and clay build up via a portable dredge. <br /> Please see photo shown below in Figure 6. <br /> 'f <br /> R P y <br /> fy< <br /> Figure 6 <br /> 5. In addition, all High Mountain Mining and subcontractor employees have been re-instructed on the correct <br /> operation of the fresh water intake pipe, as well as the routine inspection of the process water settling pond <br /> system to insure that there are no future occurrences of this unfortunate mistake. New employees will also <br /> be instructed on this matter as part of their new miner training. <br /> We hope the prompt actions taken by High Mountain Mining, LLC have alleviated concerns DRMS have with <br /> regard to this incident and we appreciate the prompt and professional attention in dealing with this issue. <br /> Should you have any other concerns, or require any additional information,please do not hesitate to contact me. <br /> Sincerely, <br /> James R. Murray <br /> Managing Partner, HMMC, LLC. <br />