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Ouray Silver Mines, Inc. <br />1900 Main St. Unit 1 <br />PO Box 564 <br />Ouray, CO 81427 <br />To; Travis Marshall <br />Colorado Division of Reclamation, Mining, and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />From: Brian K. Briggs, CEO <br />Date: November 6, 2017 <br />Subject: Exceedance in GW -3A and Replacement of GW -3A <br />QURAY SILVER <br />RECEIVED <br />NOV 0 8 2017 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />Ouray Silver Mines Inc. (OSMI) owns and operates the Revenue-Virginius approximately 6 miles south <br />west of Ouray Colorado under the Colorado Division of Reclamation, Mining, and Safety (DRMS) permit <br />number M2012-032 (Permit). OSMI performs quarterly sampling at monitoring wells and in surface <br />water according to Technical Revision number 9 of the Permit. Recently, OSMI notified DRMS of the <br />need to replace well GW -3A because of a damaged well casing or failed annulus. During Q3 sampling, <br />GW -3A water quality exceeded the Pb groundwater standard (0.044 mg/L) with a detection of 0.0442 <br />mg/L. All other constituents and locations were within permit requirements. Because of the known <br />problems with the well, the fact that the exceedance is within rounding/reporting error, and the planned <br />replacement, OSMI has not resampled the well as required by the permit. If DRMS would like OSMI to <br />resample the well for Pb, please contact us. <br />The replacement well, GW -3R, is expected to be installed in November. Well installation was delayed by <br />approximately two weeks because of mistake in pipe slot sizing. OSMI anticipates sampling GW -3R <br />during Q4 2017. <br />Please do not hesitate to call me with concerns or questions at 970-325-9830. <br />Sincere, <br />Z / <br />r an K. BriPE <br />CEO, Ouray Silver Mines Inc. <br />Phone: (970) 325-9830 ♦ Fax: (970) 325-9824 <br />