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August 07, 2012 <br />BATTLE MOUNTAIN RESOURCES, INC. <br />r. 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. M -88 -112 <br />4uly 2012 Monthly Report <br />Dear Mr. Erickson: <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of July 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 July 31S 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 July 31'. July tailing 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 July 26 A total of 820 gallons of water was excavated from <br />the leak detection system yielding a monthly average of 30.37 gpad. The tailings pond under -drain <br />measured 36 gpm. <br />During the month of July the West Pit water treatment plant operated efficiently discharging a total of <br />4,522,216 gallons (13.88 acre -feet) of water to Rito Seco Creek and a total of 4,276,300 gallons (13.12 <br />acre -feet) of water was transferred from the West Pit backfill to the tailings impoundment. Seepage along <br />Rito Seco Creek remained dry during the month. <br />P.O. Box 310 • San Luis, Colorado 81152 -0310 • (719) 379 -0798 • Fax (719) 379 -0713 <br />