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necessary to explore, develop or mine such adjoining properties. This provision for ingress and <br /> egress to and from such adjoining properties shall survive the expiration or termination of this <br /> Agreement. After said expiration or-termination, Energy Fuels shall not have any rights with <br /> regard to the Subject Properties except for the rights of-ingress and egress to and from adjoining <br /> properties. <br /> 7. Manner of Work. Energy Fuels agrees to conduct all of its operations hereunder <br /> in a careful and miner-like manner and in compliance with all applicable laws and regulations of <br /> the United States and the States of Colorado and Utah. <br /> 8. Advance Royalties.Upon the execution of this Agreement, Energy Fuels will pay <br /> to Lessor,as advance royalty, the sutra ofd for each mining claim <br /> set forth on Exhibit A attached hereto. All advance royalties will be credited against and <br /> recouped from the production royalties to be paid pursuant to Paragraph 9 hereof. <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 price/lb V205 price/lb <br /> Less than or equal$61 Less than or equal$10 <br /> �Q Less than or equal$70 Less Ilion or equal$12 <br /> Less than or equal$75, Less than or equal$14 <br /> Ab Less than or equal$80 Less than or equal$l6 <br /> OF Less than or equal$85 Less than or equal$18 <br /> go Less than or equal$90 Less than or equal$20 <br /> Greater than$90 Greater than$20 <br /> If minerals other than uranium or vanadium are produced from the Subject <br /> Properties, the production royalty paid hereunder will be of net smelter (or <br /> other processing plant)returns. <br /> 4 <br />