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February 08, 2013 <br />Dear Mr. Erickson: <br />BATTLE MOUNTAIN RESOURCES, INC. <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 -8 -112 <br />uary 2013 Monthly Report <br />RECEIVED <br />rg 1 1 2013 <br />ISION OF RECLAMATION <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 January, 2013. <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 31', 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 January 31 ". January tailing 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 31 ". A total of 720 gallons of water was excavated <br />from the leak detection system yielding a monthly average of 24 gpad. The tailings pond under -drain <br />measured 35gpm. <br />During the month of January the West Pit water treatment plant operated efficiently discharging a total of <br />6,200,800 gallons (19.03 acre -feet) of water to Rito Seco Creek and a total of 492,200 gallons (1.51 acre - <br />feet) of water was transferred from the West Pit 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 />