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OURAY SILVER MINES <br /> On September 8, 2016,flow was transferred from the Outfall-001A to the newly constructed bioreactive <br /> treatment system with groundwater infiltration approved by under Technical Revision number 8 to <br /> permit#M2012-032.The effect the groundwater infiltration is evaluated at wells GW-3A and GW-36. <br /> Water quality at these wells remains below permit limits and within the historic constituent <br /> concentration ranges for all analytes. OSMI has requested a termination of Outfall-001A which no longer <br /> sees flow and a new technical revision requests to move the parshall flume monitoring station to above <br /> the Mine Water pond to monitor flow and water quality. <br /> Underground water quality was monitored at stations UG-4 and UG-5 in March 2016. Results are within <br /> historic concentration ranges for all parameters. Flow at UG-4 was 15 gallons per minute(GPM). Flow at <br /> UG-5 cannot be determined because of inadequate data. However,flow at Outfall-001A,which should <br /> be similar, was recorded based on staff gauge readings to be 155 GPM. Because of the water pump back <br /> system into the Yellow Rose pool, UG-1 had no water to sample. No new underground sources were <br /> observed 2016. <br /> Please do not hesitate to call me with concerns or questions at 970-325-9830. <br /> Sincerely, <br /> 9A, <br /> Clint Fletcher <br /> President, Ouray Silver Mines Inc. <br /> PO Box 564, 1900 Main Street,Unit 1, Ouray, Colorado,USA 81427 <br /> Tel. 970-325-9830—Fax. 970-325-9824 <br />