2017-04-10_REVISION - M2016081 - Laserfiche WebLink

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approximately forty (40) acres or governmental lots corresponding to a quarter-quarter section for any partial assignment. No assignment of undivided interests or retention or reservation of overriding royalties will be recognized or approved by Lessor, and the effect, if any, of any such assignments or reservations wilt be strictly and only as between the parties thereto and outside the terms of this lease. No dispute between parties to any assignment or reservation shall operate to relieve Lessee from performance of any terms or conditions hereof or to postpone the time therefor. Lessor will at all times be entitled to look solely to Lessee or his assignee shown on Lessor's books as being sole owner hereof, and for the sending of all notices required by this Lease, for the performance of at[ terms and conditions hereof. If an assignment of a part of this Lease is approved, a new lease designated as an assignment lease will be issued to the assignee covering the lands assigned for the balance of the term of the base lease on the mining lease form in use at the time of assignment and limited as to term as said lease is limited. The assignor wilt be released and discharged from all further obligations for such lands assigned, as if the same had never been a part of this Lease. 11. ASSIGNMENT CONSIDERATION -- The consideration for approval of assignment by Lessor shalt be 10%of the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence of the value of these considerations shalt be mandatory, in affidavit form, which form shall be presented to Lessor along with the other assignment instruments in order to obtain Lessor's approval for the assignment. An assignment does not constitute a new lease but is a continuation of the base lease. Any attempt to withhold this information shall be construed as an attempt to defraud the State of Colorado and shalt render this lease null, void and nonexistent, and all moneys paid to Lessor shall be forfeited to Lessor. In addition, the current statutory fees will be paid at the time the assignment record form is submitted. 12. WEIGHTS -- It is agreed that all ores and Minerals mined and taken from the Leased Premises shalt be weighed and assayed and the weight and assay thereof shalt be entered in due form in weight and assay records kept for such purposes by Lessee. Ton means 2000 pounds. Ton shall be determined by Colorado State certified scales or other methods approved by Lessor. One troy ounce is equivalent to 31.1034768 grams. 13. STEWARDSHIP TRUST STIPULATION-- Lessor shall specify certain stipulations with respect to use of the surface if said surface is included in the Stewardship Trust prior to the issuance of this Lease. 14. MINING METHODS -- Only mining methods that will insure the extraction of the greatest possible amount of Minerals consistent within the laws and with prevailing good mining practice shall be used. 15. OPERATION PLAN -- All plans for exploration and mining shall be submitted to Lessor for approval by Lessor before such operations begin. These plans will include, but not be limited to, location of additional roads, location of access points to the Leased Premises, and location of any cattle guards or gates. These plans shall include provisions for control of noxious weeds on all lands disturbed by the Lessee, and along all transportation corridors used by the Lessee within the Leased Premises. 16. ENVIRONMENTAL ANALYSIS -- Lessee shall comply with all applicable federal, state, and local laws, rules, regulations, permits, codes and ordinances, including the rules, regulations and requirements of the Colorado Division of Reclamation, Mining and Safety to identify and reduce adverse impacts to - the environment, and the public health, safety and welfare. Prior to any surface occupancy on the 110324 Revised 5/2016 Page 5 of 14