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March 13, 2013 <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 Mine Project <br />CMLRB Permit No. M- 1988 -112 <br />2012 Annual Report and Fee <br />Dear Mr. Erickson: <br />Battle Mountain Resources, Inc. <br />P.O. Box 310 <br />San Luis, CO 81152 -0310 <br />RECEIVED <br />MAR 21 2013 <br />Division of Reclamation, <br />Mining & Safety <br />This report summarizes the calendar year 2012 operation and reclamation activities for Battle <br />Mountain Resources, Inc. (BMRI), San Luis Mine. This information and annual fee is submitted <br />as required annually by Colorado Mined Land Reclamation Board (CMLRB) Permit No. M- <br />1988 -112. <br />This summary report addresses the general reclamation activities, permitted areas, site <br />monitoring, and technical revisions / permit amendments that were performed for the San Luis <br />Mine project during 2012. Attached to this summary report are the Annual Fee and Report <br />Request, the completed Annual Report form, and the annual fee in the amount of $1,150. <br />General Reclamation Activities <br />Reclamation activities from 2012 included: <br />• Continued stormwater management on and adjacent to reclaimed and un- reclaimed mine <br />land disturbance areas. Stormwater inspections were performed three times in 2012; April <br />26, June 27, and October 24. Stormwater maintenance activities were performed as <br />identified during the stormwater inspections; <br />• Water treatment of water from the West Pit and Rito Seco alluvial groundwater systems; <br />• West Pit water management at the Tailing Storage Facility; <br />• Tailing facility storage pond, under drain and leak detection system management; and <br />• Surface and ground water management. <br />