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Reclamation <br />Reclamation of the 35' x 50' BD -MW drill pad was conducted in August. <br />Reclamation consisted of re- contouring the pad to preconstruction road <br />conditions. See Photograph — Page 3. There is no scheduled reclamation for the <br />remainder of 2011 or 2012 for Technical Revisions 16, 17 and 18. <br />Reclamation activities during the past year continued in the form of surface water <br />monitoring in Windy Gulch, maintenance of vegetation (spraying to eliminate <br />noxious weeds), and regular inspection of the site. These activities will continue <br />during the upcoming year. <br />Thank you for your time and attention to this matter. If you have any questions, <br />please contact me at (719) 658 -1080. Enclosed, please find check no. 1196 in the <br />amount of $633.00 for the annual fee. <br />Sincerely yours, <br />Brian W. Morris <br />Vice President <br />Rio Grande Silver, Inc. <br />P.O. Box 610 <br />112 E. 12 Street <br />Creede, CO 81130 <br />Tel: (719) 658 -1080 <br />Fax: (719) 658 -1082 <br />Email: bmorris @hecla - mining.com <br />cc: Brian Egolf, Emerald Mining & Leasing, LLC <br />12 <br />