Facsimile

To:	Rick Nutbrown

Of:	Echo Bay Mines Ltd.

Fax:	403-890-8814

Phone:	403-481-3283

Pages:	1, including this cover sheet.

Date:	July 8, 1997

Dear Rick:

The NWB is in the final stages of drafting a water licence for the Ulu project but would appreciate clarification on a few items before proceeding:

i.	What arrangements are to be made for the stockpiling and processing of the ore at the Lupin site? Will a storage pad be constructed at Lupin? If so, what mitigative measures are incorporated into the design for monitoring leachate? Is any long term monitoring planned?

ii.	In order to set an appropriate security deposit for the Ulu project the NWB requires an indication from Echo Bay on the estimated liability costs of the project, estimated costs of reclamation and or the capital cost of the project. What method does the mine use to estimate liability costs? Are you familiar with the RECLAIM model? Has a security deposit been imposed in the Land Use permit? If so, how much?

iii.	The NWB will be setting parameters for the discharge of sewage effluent and requires additional information with regards to the volume of East Lake ( m3 ) and the annual outflow from East Lake ( m3 /y) in order to determine the residence time in East Lake.

The NWB would appreciate clarification as soon as possible in order to finalize the licence. If you wish to discuss this further do not hesitate to contact me at 403-360-6338.

Sincerely