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RIO 6RANDE <br /> SILVER, INC. <br /> October 16, 2014 RECEIVED <br /> Colorado Division of Reclamation, Mining, and Safety 172014 <br /> Attention: Minerals Program DWXOF <br /> 1313 Sherman St., Room 21 UNNAMMMY <br /> Denver, CO 80203-2273 <br /> RE: 2014 Annual Report for Bulldog Mine Operation, Permit No. M-1977-215 <br /> Dear Minerals Program, <br /> Enclosed are two copies of the 2014 annual report for the Bulldog Mine Operation, <br /> Permit No. M-1977-215 and check #1385 from Rio Grande Silver, Inc. (RGS) for <br /> $633.00 as payment for the annual fee. <br /> Changes to Permit <br /> There were two changes in 2014: 1) Rio Grande Silver (RGS) requested and was <br /> granted approval for Temporary Cessation (TC-02) of the Bulldog Project. 2) RGS <br /> submitted an amendment application (AM-2) to the Division on May 27, 2014. <br /> Temporary Cessation TC-02 <br /> Due to a significant reduction in activities at the Bulldog Project in the Q4 of 2013, RGS <br /> decided to place the Bulldog Mine (permit M-1977-215) on Temporary Cessation. The <br /> Division approved the Temporary Cessation on March 26, 2014. All underground work <br /> was completed by December 31, 2013, including completion of the 9400 Level decline <br /> accessing the existing 9360 Level. No further underground work was conducted in <br /> 2014. RGS currently has a 3 person staff working on site at the Administration building. <br /> All monitoring and reporting requirements associated with the USFS Bulldog Plan of <br /> Operations, 112 Permit (including DMO), Stormwater Management Plan and Spill <br /> Containment, Control and Countermeasure Plan will continue. <br /> Amendment AM-2 to Permit No. M1977-215 <br /> On May 24, 2013 the Division issued a decision notice designating the Bulldog Mine a <br /> Designated Mining Operation (DMO). RGS accepted the designation, requested and <br /> was granted up to one year to produce an Environmental Protection Plan (EPP) for the <br /> project. Due to the current status of the Bulldog Project, it was agreed upon in a joint <br /> meeting between RGS and the Division on May 14, 2013, that four components would <br /> be addressed in the EPP: <br /> • Waste rock placement on the surface <br /> • Stormwater controls <br /> • Surface Water and Groundwater monitoring plans <br /> • Emergency Response Plan <br /> 625 USFS Road 504.1A P.O. Box 610 Creede, CO 81130 <br /> 719-658-1080 Fax 719-658-1082 <br />