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A <br />1.0 INTRODUCTION <br />Battle Mountain Resources Inc. (BMRI) extracted and beneficiated precious metal at the San Luis <br />Mine Project from January 1991 to November 1996 under permit M -88 -112 from the Colorado <br />Division of Minerals and Geology (DMG). Mining and beneficiation activities took place <br />approximately four miles northeast of the town of San Luis in Costilla County, Colorado. Since <br />the termination of mining and beneficiation activities at the San Luis site in 1991 BMRI has been <br />conducting surface land reclamation and closure - related ground water remediation, surface and <br />ground water monitoring. All lands utilized by the project are privately owned. <br />Ore extracted from the surface mine facilities were beneficiated through a carbon -in -leach (CIL) <br />circuit to recover the precious metal concentrations. The tailing material generated from the <br />mill/CIL circuit was deposited in a composite -lined tailing disposal facility (TDF). The mill /CIL <br />circuit was designed and operated to provide containment and collection of any spills within the <br />facility operations. The TDF was designed and is managed as a zero - discharge facility with the <br />capability of containing water from the CIL, circuit, and stormwater flows from the Probable <br />Maximum Precipitation (PMP) storm event. <br />Since the termination of operations at these facilities in 1997, all chemical reagents and <br />beneficiation solutions associated with the mill have been either removed from the site or were <br />chemically neutralized and placed in the TDF for final management in accordance with <br />reclamation and closure plans authorized and approved in the DMG permit. <br />In July 1998, closure- related ground water monitoring identified an exceedance of permit <br />condition values at a West Pit monitoring well (M -I1R) which resulted in the development of <br />Technical Revision (TR) 26 in accordance and compliance with the DMG permit. Subsequent to <br />the development of TR -26 and further investigation and remediation actions associated with the <br />ground water exceedance, BMRI constructed and currently operates an active water treatment <br />facility to treat ground water in the vicinity of the West Pit at the San Luis Project. <br />ERP and SPCC Plans AES, Inc. <br />Battle Mountain Resources — San Luis, CO 1 April 2015 (Update) <br />