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T 72- ~ ~~// 3 r~ ~L~~ MEMORANDUM OF UNDERSTANDING BETWEEN THE la-~l "~ ~' COLORADO DIVISION OF MINERALS AND GEOLOGY AND BATTLE MOUNTAIN RESOURCES, INC. This MEMORANDUM OF UNDERSTANDING, hereinafter referred to as the MOU, is entered into between the Colorado Division of Minerals and GeologX, hereinafter referred to as "DMG;' and Battle Mountain Resources, Inc., hereinafter referred to as "BMRI" ("the Parties"). PURPOSE The purpose of this MOU is to establish and maintain coordination and concurrence between DMG and BMRI of their respective individual responsibilities pertaining to the administration of "Agreement for Environmental Sampling Services" entered bemveen BMRI and RCG f Hagler Bailly, Inc. (hereinafter referred to as "third party sampling contractor") to conduct independent sampling and analysis of certain monitoring points associated with the tailings facility at the San Luis mine, a gold mine BMRI operates in Costlilla County, Colorado pursuant to Colorado Mined Land Reclamation Board (hereinafter referred to as ' "Board") Permit No. M-88-112. Such sampling and analysis is required by a Notice of Violation and Order issued by the Board on May 28, 1992. The purpose of the independent sampling and analysis is to verify BMRI monitoring data derived from the tailings facility. II. COMPLIANCE WITH MOU Both DMG and BMRI affirm that they shall comply with the provisions of this MOU and that they shall continue to meet the conditions and requirements specified in this document. III. OBLIGATIONS OF BMRI Under the terms of this MOU, BMRI shalt: Contract, by way of the Agreement for Environmental Sampling Setvices ("the Contract"), with a third party contractor to conduct independent satpling and analysis of certain monitoring points associated with the tailings facility at the San Luis mine located at its facility in Costilla County, Colorado in accordance with the requirements of this MOU. The Contract shall include