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Battle Mountain Resources Inc. San Luis Project Permit No. CO-0045675 Compliance Schedule Report July 25, 2002 Page 3 Table 1 - RS-2 Surface Water Quality Results Constituent Analytical Results 6/17/02 Sample Collection Analytical Results 7/10/02 Sample Collection Dissolved Lead <0.005 Total Manganese 0.12 Dissolved Manganese 0.098 0.75 Total Mercury <0.0002 Dissolved Mercury <0.0002 Total Nickel <0.01 Dissolved Nickel <0.01 Total Selenium 0.01 Dissolved Selenium <0.01 Total Silica 13.4 Dissolved Silica 12.5 Total Silver <0.0001 Dissolved Silver <0.0001 Tota! Zinc <0.005 Dissolved Zinc <0.005 Compliance Schedule a) The permitttee shall conduct verification sampling at RS-2 within 3 days of the permittee's receipt of any sample for a constituent identified as exceeding the applicable water quality standard specified in Part III.A.2 of the Rationale. Results of the first verification sampling shall be transmitted verbally to the WQCD by the end of the first calendar day following the permittee's receipt of the analytical results. Tf the results of the first verification sample indicate that the water quality standards in the Rito Seco are being met, the normal monthly sampling schedule at RS-2 will resume as set forth in Paragraph 7. Upon receipt of the initial water quality analytical results received on July 9, 2002 verbal notification of the elevated Dissolved Iron and Manganese concentrations was made to the WQCD via voice mail communication with Ms. Carla Lenkey. The voice mail identified the elevated analytical results determined with the June 17, 2002 RS-2 sample collection and identified plans associated with collecting and submitting the first verification sampling. These communications were followed up with a personal communication with Ms. Lenkey on July 11, 2002. Collection of the first verification sampling was completed on July 10, 2002 and hnmediately submitted to the commercial analytical laboratory that day with chain-of-