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February 07, 2012 <br />4 . Wally Erickson <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources Inc. <br />San Luis Project <br />CMLRB Permit No. -112 <br />Jdiivary 2012 Monthly Report <br />Dear Mr. Erickson: <br />BATTLE MOUNTAIN RESOURCES, INC. <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of January 2012. <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 January 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 January 31 January tailings impoundment piezometer measurements identified <br />these installations were either dry or contained less than 12 inches of water as illustrated in Table 2. <br />Tables 1 and 2 below identify the depth to water measurements collected for each of the site monitoring <br />wells, 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 January 30. A total of 790 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 24.68 gpad. The tailings pond under -drain <br />measured 28 gpm. <br />During January the West Pit water treatment plant operated efficiently discharging a total of 7,191,424 <br />gallons (22.07 acre -feet) of water to Rito Seco Creek and a total of 1,127,000 gallons (3.46 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 />