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OUR-AV SILVER HNES <br /> RECEIVED <br /> March 14, 2017 <br /> MAR 16 2017 <br /> DIVISION OF RECLAMATION <br /> VIA U.S. Mail and Email MINING&SAFETY <br /> Colorado Division of Reclamation, Mining, & Safety <br /> 1313 Sherman Street, Rm. 215 <br /> Denver, CO 80203 <br /> Dear Mr. Marshall, <br /> Ouray Silver Mines Inc. (OSMI) received the second adequacy review(2AR) for Technical <br /> Revision number 9 to Permit M2012-032 for the Revenue-Virginius Mine (Mine) on March 9, <br /> 2017. An extension request was sent via email and U.S. Certified Mail on March 9, 2017 <br /> requesting an extension to March 16, 2016 to address the 2AR. The 2AR raised three points, <br /> each of which is addressed below under headings that repeat the DRMS point of clarification in <br /> italics. <br /> 1)Please commit to disclosing the SPLP results to the DBMS a minimum of 30 days prior to <br /> selling the material. <br /> OSMI agrees to disclosing SPLP results a minimum of 30 days prior to sale. <br /> 2) The DRMS will require submittal of a separate Technical Revision once a proven final <br /> treatment has been designed. <br /> OSMI withdraws the mill discharge and treatment portion of this Technical Revision and <br /> will submit a separate Technical Revision once final designs are complete. <br /> 3)Please provide a reclamation cost estimate for the demolition and disposal of all mine related <br /> structures, existing and proposed. Please see enclosed Table L-1 submitted and approved in <br /> Amendment I (AM-01). The user provided data states that the cost to demolish all components <br /> of the thickeners is $23,000.00. If this is inaccurate please provide a minimum of three quotes <br /> from contractors that include the cost to disassembly, demolition, hauling and disposal of the <br /> thickener and all associated foundations and piping. <br /> OSMI acknowledges and accepts the original cost estimate of$23,000 for thickener <br /> demolition. <br /> PO Box 564, 1900 Main Street, Unit 1, Ouray, Colorado,USA 81427 <br /> Tel. 970-325-9830 — Fax. 970-325-9824 <br />