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PWRIO GRANDE <br />F-_ ■SILVEfZ, INC. <br />ANNUAL EXPLORATION & RECLAIMATION REPORT <br />July 15, 2012 — July 15, 2013 <br />Prospect NOI No.: <br />Prospect Site Name: <br />Operator /Prospector: <br />EXPLORATION <br />P- 2008 -037 <br />San Juan Silver Project <br />Randy McClure <br />Rio Grande Silver, Inc. <br />625 USFS Road 504.1A <br />P.O. Box 610 <br />Creede, Colorado 81130 <br />Tel. (719) 658 -1080 <br />No exploration work was conducted on the San Juan Silver Project NOI between July 15, 2012 <br />and July 15, 2013. <br />Rio Grande Silver (RGS) submitted a request for modification to this NOI on April 24, 2013 <br />requesting a drill pad be re- constructed at the previously reclaimed drill pad BD -4. This <br />modification received preliminary approval from DRMS on May 23, 2013. Since that time, <br />RGS's scope of work has changed and we no longer foresee the need to utilize BD -4. RGS <br />submitted a request for withdrawal of this modification on July 3, 2013. This request for <br />withdrawal is pending approval by DRMS. <br />RECLAMATION <br />Between July 15, 2012 and July 15, 2013, no reclamation work was completed on the San Juan <br />Silver Project NOI. <br />625 USFS Road 504.1A P.O. Box 610 Creede, CO 81130 <br />719 - 658 -1080 Fax 719- 658 -1082 <br />