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I ! �D , <br />",,, 11N <br />:O Cam <br />Sa njuAn S%I,Ver Miw%n Venture <br />September 14, 2011 <br />RE: Notice of Intent to Conduct Prospecting <br />Dear Mineral County Commissioners, <br />Rio Grande Silver (RGS) is submitting a Modification to the Equity Exploration <br />Project NOI to Colorado Department of Reclamation, Mining and Safety that was <br />approved on June 9, 2011. <br />The Equity Mine was opened in late June under the approved Equity Exploration <br />Project (EEP) NOI No. 2011 -010. The mine is currently being rehabilitated and it <br />is the intension of RGS to conduct underground exploration core drilling <br />beginning in November. <br />The EEP Modification is for constructing the necessary surface infrastructure to <br />support year around mine rehabilitation and core drilling. The infrastructure <br />will include a 30' x 40' semi - permanent shop (arched fabric) that will be <br />constructed on the existing concrete slab left in place by Homestake Mining <br />Company. A temporary 8' x 20' or 40' office, up to 4 - 8' x 20' or 40' cargo <br />storage containers, diesel fuel storage (up to 6000 gal), one propane tank, two <br />diesel generators (up to 500kw) and one air compressor. <br />The underground core drilling will be done with two electric core drills. There <br />are up to 64 drill holes proposed from 12 drill stations totaling up to 80,000 feet <br />of core. The underground drilling is scheduled to begin in November 2011. <br />A copy of the EEP Modification is available at the RGS office or online at <br />Colorado DRMS for your review. <br />Best Regards, <br />AtcafAAJ, <br />Randy McClure <br />Project Manager <br />Rio Grande Silver, Inc. <br />112 East 12` Street P.O. Box 610 Creede, CO 81130 <br />719 - 658 -1080 Fax 719 - 658 -1082 <br />