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Battle Mountain Resources, Inc. <br />San Luis Project <br />P O. Box 310 <br />San Luis, Colorado 81152 -0310 <br />(719) 379 -0798 <br />August 5, 2013 <br />Wally Erickson <br />Colorado Department of Reclamation, Mining, & Safety <br />1313 Sherman, Room 215 RECEIVED <br />Denver, CO 80203 <br />Re: Battle Mountain Resources, Inc. �/ `� ' I( (� ?013 <br />San Luis Prciect — Permit No.M -88 -112 <br />/Monitoring Well M -14 TDS Sample Results DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />Dear Mr. Erickson: <br />Battle Mountain Resources, Inc. (BMRf) received the final analytical report from SVL Laboratories on <br />August 2, 2013 for the second verification sample collected July 1, 2013 for Total Dissolved Solids <br />(TDS) at monitoring well M -14. In the second verification sample, the TDS reported concentration of <br />595 milligrams per liter (mg/1) exceeded the 500 mg/1 TDS Permit Condition Value assigned to this Nell. <br />This result was lower than the initial sample collected on April 23, 2013, which had a reported <br />concentration of 633 mg/l. The first verification sample collected on May 23, 2013, had a reported TDS <br />concentration of 587 mg/1. <br />The M -14 sample collected on July 1, 2013 was only analyzed for the verification of TDS and no other <br />parameters. The laboratory results for iron, manganese, sulfate and WAD cyanide in the M -14 sample <br />collected on April 23, 2013, were all below the Permit Condition Value for this well. Other monitoring <br />parameters analyzed in this sample were consistent with recent previous results for this well. <br />Additionally, monitoring wells M -12, M -13R, and the downgradient monitoring well M -9, did not show <br />any concentrations above the Permit Condition Values and concentrations of other monitoring <br />compounds in these wells were consistent with historical results including the concentrations for TDS. <br />Technical Revision (TR) TR -32 requires specific actions to be conducted in the event an analytical result <br />exceeds a Permit Condition Value as presented in Section 1.2 Reporting. As required under this section <br />where both verification samples fall outside the specified concentration range, BMRI will submit a <br />specific response plan to Colorado Department of Reclamation, Mining, & Safety within thirty (30) days <br />of receipt of the results for the second verification sample. <br />