2017-04-10_REVISION - M2016081 - Laserfiche WebLink

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days following written request along with purchaser's support documentation. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than 10 years. If any such examination shalt reveal, or if either party shall discover any error or inaccuracy in its own or the other party's statement, payment, calculation, or determination, then( proper adjustment or correction thereof shall be made as promptly as practicable thereafter, except that no adjustment or correction shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. Further, Lessee shall furnish annually a complete operations report to Lessor disclosing the number of tons and the assay thereof of all ores and Minerals mined from the premises during the preceding year. Lessee shall also furnish in said report geologic interpretations and recoverable reserve calculations, and maps and cross sections showing location of any mineral-bearing outcrops, drill holes, trenches, ore bodies and other prospecting and exploration activities, along with assays showing the amount of mineral contained in the ore. The records required to be maintained by Lessee and provided to Lessor upon request include logs of all strata penetrated and all geologic and hydrologic conditions encountered, and copies of in-hole surveys; this information to be collected and prepared under the supervision of a qualified geologist, geological engineer or mining engineer. Other qualified persons may collect and prepare this data, if agreed to in writing between Lessee and Lessor. Any request to keep certain information confidential should be in writing to Lessor at the time such information is submitted to Lessor, and such data may be kept confidential as consistent with State law. Lessee shall submit, if requested by Lessor, such additional reports, records or documents regarding Lessee's operation on the Leased Premises as necessary for the compliance with lease provisions. 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment hereof shall not be burdened with overriding royalties the aggregate of which exceeds two percent (2%) of the gross value of the Minerals or ore at the first point of sale. Lessor must be notified of all overriding royalties accruing to this Lease. 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by utilizing methods of exploration commonly used in the industry, such as mapping, sampling, drilling, trenching, geophysical exploration, and laboratory analysis and will expend as a minimum annually the amounts set forth below: LEASE YEAR MIN EXPEND LEASE YEAR MIN EXPEND NA NA NA NA Indirectly related exploration and development work such as work done on adjacent properties, or design or construction of a mill will not be considered as diligent development of the Leased Premises unless approved by Lessor. 9. PENALTIES -- A penalty shall be imposed for, but not limited to, late payments, improper payments, operational deficiencies of any kind whatsoever, violations of any covenants of this Lease, or any false statements made to Lessor. Penalties shalt be determined by Lessor unless otherwise provided for by law and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. Such penalties shall be taken from the Lessor's published fee schedules, as they may be amended by the Board from time to time. 10. ASSIGNMENT -- Lessee, only with written consent of Lessor, may assign this lease as to the leasehold interest of such Lessee in all or part of the lands covered hereby; not less, however, than tracts of 110324 Revised 5/2016 Page 4 of 14