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Ouray Silver Mines Inc. <br /> Technical Revision 11 March 26, 2020 <br /> 1 INTRODUCTION <br /> 1.1 Summary of Proposed Revision <br /> This Technical Revision 11 (TR-11)proposes minor modifications to the Revenue-Virginius <br /> Mine Division of Reclamation, Mining, and Safety (DRMS)Permit No. M-2012-032 (Permit). <br /> Specifically, TR-11 requests the following. <br /> 1) Update water monitoring program including updating stations, sampling schedule, <br /> and analyte list <br /> 2) Allow placement of Pilot Passive Water Treatment Materials within the monitored <br /> permit boundary <br /> 3) Incorporate a Waste Storage Pad and Enclosure into the list of structures within the <br /> facility and include this structure in the updated Reclamation Plan <br /> 4) Update the Reclamation Plan (Exhibit E) and Reclamation Plan Map (MAP F-1)to <br /> address minor modifications to topsoil placement and vegetation plans and to <br /> incorporate the Waste Storage Pad and Enclosure. <br /> Supporting information is presented under the following sections, project description (Section 2), <br /> and reclamation (Section 3) and reclamation cost updates (Section 4). <br /> 1.2 Background Information <br /> The Mine, owned and operated by Ouray Silver Mines Inc. (OSMI), is an active underground <br /> silver mine located approximately 5 miles southwest of Ouray, Colorado along County Road 26. <br /> The Sneffels District has a rich mining history that began with the staking of the Virginius claim <br /> in 1876 in Governor Basin. The Revenue Tunnel was built as a lower access point to the <br /> Virginius in 1893. The bulk of mining activity occurred from 1878 through 1912, with <br /> intermittent mining since. The Mine is currently permitted to operate under Amendment 1 to <br /> DRMS Section 112d Designated Mining Operation(DMO)permit M-2012-032. Currently, the <br /> Mine is in a state of care and maintenance, with reduced activities on site as it works towards <br /> implementing the recent feasibility study findings and exploration activities. <br /> Several TRs to Amendment 1 of M-2012-032 have been filed over recent years. These revisions <br /> have focused on improved mill functioning, waste reduction, and improved environmental <br /> protocols. Recent TRs are summarized below. <br /> TRIO—Permitted the construction of the five-stage passive treatment system with discharge to <br /> surface water as permitted through OSMI's Colorado Discharge Permit System(CDPS) Permit <br /> No. CO-0000003,Modification 5. <br /> TRO9—Updated groundwater standards, allowed the sale of mixed tailings and waste rock as <br /> road base, allowed for the relocation of buildings and construction of additional buildings and <br /> structures for a restart. Including but not limited to the expansion of the dry, railyard structure <br /> and reagent building. <br /> Page 3 of 8 <br />