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2017 Annual Dant Safety Inspection Julio Madrid <br /> San Luis TSF Battle Mountain Resources,Inc. <br /> INSTRUMENTATION <br /> Piezometers: Piezometer readings from June, 2016 through May, 2017 are presented graphically <br /> on Figure 3. The piezometers all indicate dry conditions or minor amounts of water present at the <br /> bottom caps of the casings due to moisture condensation. This behavior is consistent with historic <br /> observations. These observations indicate that the sub-drains are functioning,and that low phreatic <br /> conditions are maintained within the dam embankment. No abnormalities are indicated in the <br /> measurements. <br /> Underdrain: Discharge rates from the underdrain system to the seepage collection pond from <br /> June, 2016 through May, 2017 are presented in Table 1. The recorded rates for the previous year <br /> are consistent with historical measurements, and show no abnormalities. <br /> Table 1 San Luis TSF Underdrain Flow Measurements: June 2016 -June 2017 <br /> Date Flow (gpm) <br /> 6/30/2016 38.5 <br /> 7/25/2016 40.0 <br /> 8/30/2016 39.0 <br /> 9/29/2016 39.5 <br /> 10/31/2016 38.0 <br /> 11/30/2016 37.5 <br /> 12/29/2016 37.5 <br /> 1/31/2017 38.0 <br /> 2/28/2017 38.5 <br /> 3/30/2017 39.0 <br /> 4/27/2017 35.3 <br /> 5/31/2017 40.0 <br /> 6/29/2017 40.0 <br /> 2017 INSPECTION FINDINGS <br /> The overall surficial conditions of the tailings dam at the time of the inspection were generally <br /> satisfactory, except for minor issues discussed in more detail below. <br /> Right Downstream Groin (Photos 22 — 25): Vegetation was just beginning to emerge for the <br /> spring season at the time of the inspection, making the vegetation appear thin and sparse in the <br /> photos. The process of erosional rilling at the right downstream groin area is ongoing, but the <br /> condition is presently judged to be minor and appears to be less severe than what was described in <br /> previous reports. This area should be monitored closely to make sure erosion does not progress to <br /> detrimental levels. <br /> The cross-berms and rock-lined down-drains have experienced minor erosion, in places exposing <br /> the geotextile fabric beneath the rock (Photo 24). Additionally, a shallow gully has formed at the <br /> base of the groin in this area (Photo 25). These areas should be repaired in 2017 to prepare the <br /> area for spring 2018 snowmelt. <br /> San Luis TSF Q2&Annual Dant 2 Engineering Analytics, Inc. <br /> Safety Inspection Report.docx <br />