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October 08, 2012 <br />Mr. 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 />y September 2012 Monthly Report <br />Dear Mr. Erickson: <br />BATTLE MOUNTAIN RESOURCES, INC. --e+ <br />or,T 11 2ulZ <br />DIVISION OP RECLAMATION i <br />MINING AND SAFETY <br />The following summarizes monitoring and site activities at the Battle Mountain Resources Inc. (BMRI), <br />San Luis Project for the month of September 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 September 28 no water was present for sampling and <br />subsequent analysis. Lysimeter LD -2 was damaged during inspection and is the process of being repaired. <br />Depths to water were collected for the tailing impoundment main embankment piezometers and the West <br />Pit monitoring wells on September 27". September tailing impoundment piezometer measurements <br />identified these installations were either dry or contained less than 12 inches of water as illustrated in <br />Table 2. Tables 1 and 2 below identify the depth to water measurements collected for each of the site <br />monitoring wells, piezometers and lysimeters as required by the terms and conditions of the TR -32 <br />QA/QC plan. <br />The leak detection system was measured on September 28` A total of 820 gallons of water was <br />excavated from the leak detection system yielding a monthly average of 28 gpad. The tailings pond <br />under -drain measured 35gpm. <br />During the month of September the West Pit water treatment plant operated efficiently discharging a total <br />of 3,475,378 gallons (10.67 acre -feet) of water to Rito Seco Creek and a total of 3,549,600 gallons (10.89 <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 />