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RIO GRANDE <br />SILViER, INC. <br />June 20, 2013 <br />Mr. Tony Waldron. Minerals Program Supervisor <br />Division of Reclamation, Mining and Safety <br />Colorado Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />d � <br />RE: Acceptance Letter as DMO Designation - Bulldog Mine Permit No. M- 1977 -215 <br />Mr. Waldron, <br />Rio Grande Silver, Inc. (RGS) is in receipt of the Division of Reclamation, Mining and <br />Safety's (Division) letter dated May 24, 2013 in which the Division issued a Notice of <br />Final Determination Regarding Designation as DMO, and pursuant to Rule 7.2.3(1), <br />RGS accepts the Division's determination that the Bulldog Mine is a DMO. As such, <br />RGS agrees to conform to Rule 7.2.3(2) as described below. <br />Pursuant to Rule 7.2.3(2)(a), RGS will develop an Environmental Protection Plan (EPP) <br />for components currently in place. In the joint meeting held on May 14, 2013, the <br />Division and RGS agreed the Bulldog EPP will address the following: <br />• Waste rock placement on surface <br />• Storm water controls <br />• Surface water and ground water monitoring plans <br />• Emergency response plan <br />Potential future components that at this time have not been designed, constructed or <br />implemented will not be addressed in the EPP. RGS is currently determining through <br />pre - feasibility and feasibility studies the economics of the Bulldog project. Until such <br />studies determine project viability, construction and operation of a water treatment plant, <br />the need for additional waste rock storage, mining /milling operations, and tailings <br />disposal are not currently envisioned. If the decision is made to construct any of these <br />components, the EPP will be amended. <br />RGS also requests, pursuant to 7.2.3(2)(c), a period longer than one hundred eighty <br />(180) days, not to exceed one (1) year to submit the Environmental Protection Plan. <br />1 <br />