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Battle Mountain Resources Inc. San Luis Project CMLRB Permit No. M-88-112 September 2002 Monthly Report Page 2 tailing impoundment during the month, and seepage along Rito Seco Creek remained dry throughout the month. As communicated last month, calendaz year 2002 reclamation activities were initiated on August 29`". Earthmoving activities continued throughout September along (1) the main haulage roadway between Rito Seco road and the BMR parking ditch, (2) the parking ditch, (3) the South Waste Rock Facility and (4) the tank farm. Reclamation activities included: (a) hydrocazbon testing of soils within the tank farm area, excavation of soils above the tank farm geomembrane liner surface, and transport of these soils to the tailing disposal area for remediation, geomembrane liner removal and partial topography leveling of the site; (b) ripping, contouring and topsoiling of the main haulage roadway area; (c) ripping, contouring and topsoiling of the pazking ditch azea; (d} contouring and topsoiling of the South Waste Rock Facility east slope area; and (e) roadway reclamation of the ancillary roadway surface north of the South Waste Rock Facility between the main haulage roadway and the air quality monitoring station. These earthmoving activities should be completed prior to the end of October and seeding of topsoiled areas will be completed shortly thereafter. All reclamation activities completed during the 2002 calendar year will be presented in the 2002 annual report. Finalization of the property transfer associated with Rocky Mountain Farms production well 8324 and the adjoining irrigation circle was completed with Mr. David Faucette during the month of September. The property purchase and transfer to BMR ownership secures BMR a continuously available source of augmentation water to replace water losses associated with the water treatment plant, the tailing facility and other water impoundments. Table 1- September 2002 Depth to Water Measurements Monitorin Site Date De th to Water feet M-1 9/26/02 74.32 M-10 9/26/02 25.87 M-11 9/26/02 38.22 M-11R 9/26/02 45.47 M-16 9/26/02 22.81 M-17 9/26/02 33.04 M-18 9/26/02 27.24