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BATTLE MOUNTAIN RESOURCES, INC. <br />March 21, 2007 <br />Mr. Allen Sorensen <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources, Inc. <br />San Luis Mine Project <br />CMLRB Permit No. M-88-112 <br />2006 Annual Report <br />Dear Mr. Sorensen: <br /> <br />MAR 2 3 2047 <br />Division o. ~~:ciamation, <br />Uiining and Saieiy <br />The following summarizes calendar year 2006 Battle Mountain Resources, Ina (BMRn operation <br />and reclamation activities at the San Luis mine. <br />Operation/Reclamation <br />Calendar Year 2006 reclamation activities included: <br />• Stormwater management on and adjacent to reclaimed and un-reclaimed mine land <br />disturbance areas. Bi-annual stormwater inspections and maintenance was conducted at <br />the site during 2006. <br />• Water treatment management of the West Pit and Rito Seco alluvial groundwater <br />systems. <br />• Tailing facility supernatant pond, under drain and leak detection system water <br />management; and <br />• Surface and ground water monitoring. <br />Field surveys of the BMRI mine land disturbance and reclamation activities was completed by <br />Telesto Solutions, Inc. in 2002 and subsequently computer accounting (CAD drawing) updated in <br />2005 for the 2005 report. Subsequently, the 2005 review identified 422.7 acres of the 509 acres <br />of project disturbance has been reclaimed in accordance with the approved CMLRB reclamation <br />plan and permit. No field reclamation has been completed since the final demolition and <br />reclamation of the crusher and mill site area completed in 2005. Therefore, the 2005 amended <br />status map submitted in 2005 depicts the current site reclamation status and remaining mine <br />disturbances requiring to be reclaimed. As depicted on the 2005 map and Table 1 below, the <br />remaining reclamation obligation is associated with the ongoing West Pit water treatment plant <br />operation; the tailing disposal area water management and reclamation; access roadway <br />reclamation West Pit reclamation, and remaining topsoil stockpile storage azea reclamation. <br />P.O. Box 310 San Luis, Colorado S 1152-0310 (719) 379-0798 Fax (719) 379-0713 <br />