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Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M-88-112 <br />May 2011 Monthly Report <br />Page 3 <br />Table 2 -May 2011 Tailing Disposal Area Piezometer Depth to Water <br />Measurements (continued) <br />Piezometer Date Depth to Water <br />(feet) Total Depth (ft) Volume of <br />Water (ft) <br />P12 5/31/11 41.69 41.71 0.02 <br />P13 5/31/11 41.26 41.34 0.08 <br />P14 5/31/11 D 41.24 0.00 <br />P15 5/31/11 41.09 41.10 0.01 <br />Table 3 below provides the calendar year 2011 sludge management for the San Luis site. <br />Table 3 - Water Treatment Plant Sludge Management Year to Date. <br />Date Quantity Sludge Management <br />October 2010 90 tons Transferred sludge from Pond #3 to drying <br /> pad. <br />May 2011 90 tons Transferred sludge from drying pad to <br /> Tailings impoundment. <br />Should you have any questions or comments, please do not hesitate to contact either myself (719) <br />379-0798 or Mr. Bill Lyle (303) 324-2630. <br />F. <br />Coordinator III <br />Cc: Bill Lyle <br />File