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Battle Mountain Resources,Inc. <br /> San Luis Project <br /> P.O. Box 310 <br /> San Luis, Colorado 81152-0310 <br /> (719) 379-0798 <br /> March 14, 2017 <br /> Mr. Wally Erickson <br /> State of Colorado <br /> Division of Reclamation, Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver, CO 80203 <br /> Re: Battle Mountain Resources, Inc. <br /> San Luis Project -San Luis, Colorado <br /> Annual Report and Fee 2016 <br /> CMLRB Permit No. M-1988-112 <br /> Dear Mr. Erickson: <br /> Please find the enclosed Battle Mountain Resources, Inc. (BMRI) "San Luis Project" (Permit <br /> No. M-1988-112) Annual Report form, a site map, and a check for the annual fee of <br /> $1,150.00 as requested in the February 1, 2017 letter from the Colorado Division of <br /> Reclamation, Mining, and Safety (CDRMS) to Lawrence Fiske (BMRI). Additionally, the <br /> following summarizes the operation, reclamation, permitted area, dam inspections, and site <br /> monitoring activities performed, as well as, any technical revisions and permit amendments <br /> made for the San Luis Project during 2016. <br /> General Reclamation Activities <br /> Reclamation activities from 2016 included: <br /> • Continued stormwater management on and adjacent to reclaimed and un- <br /> reclaimed mine land. Stormwater inspections were performed on June 7, 2016 and <br /> October 3, 2016, and any issues noted were corrected ; <br /> • Water treatment of water from the West Pit and Rito Seco alluvial groundwater <br /> systems; <br /> • Tailing facility storage pond, underdrain and leak detection system management; <br /> • Surface and ground water management; and <br /> • Maintenance of the tailing facility South Diversion Ditch. <br /> Reclamation Areas <br /> BMRI did not perform any additional reclamation in 2016. Therefore, there are 82.5 acres of <br /> reclamation remaining, as summarized in Table 1. <br />