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BATTLE MOUNTAIN RESOURCES, INC. <br />August 1, 2013 <br />Mr. Wally Erickson d <br />Colorado Department of Reclamation, Mining, & Safety <br />1313 Sherman, Room 215 <br />Denver, CO 80203 <br />Re: Battle Mountain Resources, Inc. <br />San Luis Project — Permit No.M -88 -112 <br />Xonitoring Well M -14 TDS Sample Results <br />Dear Mr. Erickson: <br />RECEIVED <br />WIlly -, 01� ?013 <br />DIVISION OF RECLAMATION <br />MININGAND SAFETY <br />Per our telephone conversation this morning, Battle Mountain Resources, Inc. (BMW) received the <br />analytical report from SVL Laboratories for the Total Dissolved Solids (TDS) verification sample <br />collected on May 23, 2013, at monitoring well M -14. In the verification sample, the TDS reported <br />concentration of 587 milligrams per liter (mg/1) exceeded the 500 mg/l TDS Permit Condition Value <br />assigned to this well. This result was lower than the initial sample collected on April 23, 2013, which had <br />a reported concentration of 633 mg/l. A second verification sample was collected on July 1, 2013 from <br />M -14. BMRI has not received the final hard copy laboratory result and will inform you of these results <br />when they are received. <br />The laboratory results for iron, manganese, sulfate and WAD cyanide in the M -14 sample collected on <br />April 23, 2013, were all below the Permit Condition Value for this well. Other monitoring parameters <br />analyzed in this sample, were consistent with recent previous results for this well. Additionally, <br />monitoring wells M -12, M -13R, and the downgradient monitoring well M -9, did not show any <br />concentrations above the Permit Condition Values and concentrations of other monitoring compounds in <br />these wells were consistent with historical results including the concentrations for TDS. <br />Should the Division have any questions or require any clarifications regarding this correspondence, please <br />notify me at (719) 379 -0538. <br />cccrlely, <br />ulio Madrid <br />Authorized Agent <br />Battle Mountain Resources, Inc. <br />Cc: BMRI File <br />Lawrence Fiske, Newmont USA Limited <br />Tim Runnells, AESI <br />P.O. Box 310 • San Luis, Colorado 81152 -0310 • (719) 379 -0798 • Fax (719) 379 -0713 <br />