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in cash. On each of the first (1"), second (2"d), third (3`d) and fourth (4t) anniversaries of this <br /> Agreement, Energy Fuels will pay to Lessor additional advance royalty in the amount ofW <br /> ( . The total advance royalty, including the payment <br /> made upon the execution of this Agreement shall be INOMM1001imb (M I 1b). <br /> Lessor shall have the option of receiving up to one-half (1/2) of each anniversary advance <br /> royalty payment by the delivery of capital stock of Energy Fuels Inc.valued at the average of the <br /> market closing price for the five(5)trading days prior to the date of each payment.The option to <br /> receive capital stock shall be made by Lessor at least thirty(30) days prior to the date payment is <br /> due. All advance royalties paid will be credited against and recouped fiom the production <br /> royalties to be paid pursuant to Paragraph 9 hereof. The issuance of all capital stock of Energy <br /> Fuels Inc. set forth above shall be subject to the approval of the Toronto Stock Exchange. If for <br /> any reasons such approval is not granted,the stock portion of the advance royalty will be made <br /> in cash. <br /> 9. Production Royalties. A production royalty will be paid on the total value of all <br /> minerals recovered and sold from the Subject Properties based on the schedule as follows. The <br /> uranium and vanadium values will be based on the U308 and V205 market values at the time the <br /> ore is fed to process in the mill or,alternatively, a processing facility other than a mill,or an ore- <br /> buying station with a sampling plant. <br /> The market value for U308 shall be based on the average of the UX and Trade Tech spot <br /> prices at the end of the month the ore is fed to process. The V205 value will be based upon the <br /> spot price published by a known and accepted reporting service. <br /> PRODUCTION ROYALTY SCHEDULE <br /> Royalty % U308 pricellb V205 price/lb <br /> * Less than or equal$61 Less than or equal$10 <br /> I Less than or equal$70 Less than or equal$12 <br /> aw Less than or equal$75 Lass than or equal$14 <br /> Less than or equal$80 Less than or equal$16 <br /> Less than or equal$85 Less than or equal$18 <br /> Less than or equal$90 Less than or equal$20 <br /> 2W Less than or equal$95 Less than or equal$22 <br /> go Greater than$95 Greater than$22 <br /> 5 <br />