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oF' oco COLORADO DIVISION OF RECLAMAI IUM, IDIIMIN(3 AIVD SAFETY <br />ye: S MINERALS PRUt3RAM IMPEL I IU19 KEPvRT <br />* <br />X876 PRUNE: (3U3) 866-3567 <br />* f <br />I he Divisiun ut Reciamativn, Mining and 5atety has conducted an inspection uf the mining opetatiun noted <br />below. This report duLuuncrits ubscrvatiuns wnccrning cumpliance with the terms of the permit and <br />appiicable rules and regulations of the Mined Land Recla,natiun Buard. <br />MINE NAME: <br />MINE/PROSPECTING ID#: <br />MINERAL: <br />COUNTY: <br />San Luis Project <br />M-1988-112 <br />Au, Ag <br />Costilla <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Multi Person Inspection <br />Wallace H. Erickson, Tyler V. O'Donnell <br />OPERATOR REPRESENTATIVE: <br />Nov 12, 2015 <br />13:30 <br />OPERATOR: <br />TYPE OF OPERATION: <br />Battle Mountain Resources, Inc. <br />Julio Madrid, Steve Carino <br />112d-3 - Designated Mining Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Acreage Reduction Request (AR -03) <br />None <br />$7,400,000.00 <br />DATE OF COMPLAIN I: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INSP OR'S IG RE: <br />SIGNATURE DATE: <br />Cloudy <br />f� <br />January 11, 2016 <br />t3EMERAL INSPECI IUM IUPICS <br />i him list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No <br />problems or possible violations were noted during the inspection. The mine operation was found to be in full <br />compliance with Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of <br />Construction Materials and/or for Hard Rock, Metal and Designated Mining Operations. Any pet a -on engaged in any <br />mining operation snail notify the office of any tailure or imminent failure, as soon as reasonably practicable atter such <br />person has knowleage of sucR condition or of any impoundment, embankment, or slope that pope., a reasonable <br />potential for danger to any persons or property or to the environment; or any environmental protection facility <br />deigned to contain or control chemicals or waste which are acid or toxic -forming, as identified ;n the permit. <br />(AR) RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- Y (RD)ROADS ------------------ Y <br />(HB) HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- Y (EX) EXPLOSIVES--------- N <br />(PW) PROCESSING WASTE/TAILING---- Y (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- Y <br />(MP) GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- Y (RV) REVEGETATION---- Y <br />(SM) SIGNS AND MARKERS----------------- Y (SW) STORM WATER MGT PLAN---- N (CI) COMPLETE INSP---- Y <br />(ES) OVERBURDEN/DEV. WASTE--------- Y (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- Y <br />(AT) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE---------------- Y (ST) STIPULATIONS------- N <br />Y = Inspected and found in compliance / N = Not inspetTed / NA = Not applicable to this operation / PB = Problem zitu-a i PV = ft—lb1i inlation eitrd <br />rage I of 3 <br />