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July 07, 2011 <br />Jf . <br />Dear Mr. Sorensen: <br />BATTLE MOUNTAIN RESOURCES, INC. <br />Mr. Allen Sorensen <br />State of Colorado <br />Division of Reclamation, Mining and Safety V <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. M -88 -112 <br />June 2011 Monthly Report ✓ <br />RECEIVED <br />JUL i 1 2011 ✓- <br />Mallon ag Reclamation, <br />-jsaf <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of June 2011. <br />Surface and ground water monitoring and analysis were completed for all required sites during the month <br />per the terms and conditions of the TR 32 Quality Assurance and Quality Control (QA/QC) plan. <br />Vacuum on the tailing lysimeters was verified on June 30 no water was present for sampling and <br />subsequent analysis. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells on June 30 June tailings impoundment piezometer measurements identified these <br />installations were either dry or contained less than 12 inches of water as illustrated in Table 2. Tables 1 <br />and 2 below identify the depth to water measurements collected for each of the site monitoring wells, <br />piezometers and lysimeters as required by the terms and conditions of the TR -32 QA/QC plan. <br />The leak detection system was measured on June 30 A total of 850 gallons of water was excavated from <br />the leak detection system yielding a monthly average of 28.33 gpad. The tailings pond under -drain <br />measured 30 gpm. <br />During June the West Pit water treatment plant operated efficiently discharging a total of 1,342,292 <br />gallons (4.12 acre -feet) of water to Rito Seco Creek and a total of 7,629,600 gallons (23.42 acre -feet) of <br />water was transferred from the West Pit backfill to the tailings impoundment. Seepage along Rito Seco <br />Creek remained dry during the month. <br />P.O. Box 310 • San Luis, Colorado 81152 -0310 • (719) 379 -0798 • Fax (719) 379 -0713 <br />