2007-12-19_REVISION - M1988112 (12)

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EXHIBIT G - WATER INFORMATION G.1 Summary of West Pit/Farm Water Management Key elements of this revised water management program for the BMRI San Luis Project include: • Continued pumping of West Pit wells to maintain the ground water elevation between 8578.5 and 8579.5 feet amsl, as measured in the West Pit ground water well BF-5R, to minimize ground water level fluctuations and prevent ground water outflow to the Rito Seco alluvial aquifer. • Continued operation of the Rito Seco alluvial ground water capture wells M-32 and M-33 as described in TR-26. • Water produced by the West Pit ground water wells and the down gradient capture wells will be conveyed by a modified underground pipeline, located in an existing pipeline corridor, to the adjacent ranch where the water will be used for crop irrigation on historically irrigated lands. • Cessation of the water treatment plant operation. • Storage of water as part of West Pit water management during the non- irrigation season (November through March), in lined, off-stream irrigation ponds located in the West Pit footprint. • Maintain the ability to transfer water to the TDA via the existing tailings water pipeline (as authorized by TR-30) as a contingency during startup and shakedown of the new water management system or as a future contingency measure. BMRI has been operating the TR-26 West Pit water management program since 2000, and has collected detailed data on the response of the ground water system to the pumping. Based on the seven years experience, and the fact that the system has performed as designed over the entire period, BMRI has every confidence that the revised water management program as described herein is feasible and viable for the foreseeable future. Battle Mountain Resources, Inc. 22 P:Wojmts\212-Now t(SonLtis)\Sa uis\Pcrmit Ameodmem- West Pit Mamg-t\VS Report&PDFs\Te9\PcnnMmedment_v5c.doc December 2007