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Exploration Plan is inadequate to determine the feasibility of mineral extraction from the Leased <br /> Premises. <br /> Exploration Report: A full report detailing the results of the exploration activities must be submitted <br /> to the Lessor within two (2) years of the effective date of this Lease. The report shall include all data <br /> collected during exploration and include adequate exploration and documentation of the mineral <br /> reserves on the Leased Premises, as well as the commercial feasibility of extracting such reserves. <br /> If the Lessee pursues diligent exploration and determines that development of the minerals is <br /> economically feasible, a Mining and Operations Plan (per the requirements of Paragraph 17) must be <br /> submitted to the Lessor for review and approval within two (2) years of the effective date of this Lease <br /> and prior to commencement of mining activities. Such plan, and subsequent supplements of such plan, <br /> when approved, will authorize the mining activities described for the period of time described in such <br /> plan or supplement. The failure to submit a Mining and Operations Plan within two (2) years of the <br /> effective date may subject this agreement to termination by the Lessor. <br /> Exploration Deposit: An Exploration Deposit of $25,000 must be provided to the Lessor upon the <br /> execution of this Lease. If the Lessee determines that development of the minerals is not economically <br /> feasible, the Lessee may request a refund of the Exploration Deposit. The Lessor shalt have sole <br /> discretion to determine whether the requirements for diligent exploration have been met and a refund <br /> of the Exploration Deposit is appropriate. The determination wilt be based on whether the Lessee <br /> compiled sufficient information to delineate the mineral resources included in the Leased Premises. <br /> If the Lessee pursues diligent exploration and determines that development of the minerals is <br /> economically feasible on the Leased Premises, Lessee may request that the Exploration Deposit <br /> become an AMR that shall be credited upon the first royalties due as herein provided for minerals <br /> actually produced from the Leased Premises. <br /> 9. ANCILLARY USE -- Lessee may remove ores, minerals, and other mined materials, and place on the <br /> Leased Premises stock piles of material mined from this Lease and such equipment as is necessary for <br /> this removal pursuant to Paragraph 2. All ancillary uses such as materials storage and or processing <br /> from offsite operations, and any other uses not specifically mentioned herein will be subject to the <br /> approval of Lessor and wilt require a yearly rental payment of no less than five hundred and no/100 <br /> Dollars ($ 500.00 ) per acre. Haut roads and/or access roads not on this Lease but on other Lessor <br /> owned lands will be subject to a separate permit and require approval of Lessor. <br /> 10. REPORTS AND RECORDS -- After operations begin, it is agreed that on or before the last day of each <br /> month during the term of this Lease, Lessee shall submit a sworn, verified, written report to Lessor, in <br /> which report shall be entered and set down the exact amount in weight of all products and the assay <br /> thereof mined and removed from said Leased Premises during the preceding calendar month. Lessee <br /> agrees to keep and to have in possession complete and accurate books and records showing the <br /> production and disposition of any and all substances produced on the Leased Premises along with <br /> purchaser's support documentation and to permit Lessor, at all reasonable hours, to examine the same <br /> or to furnish copies of same to Lessor within 60 days following written request. All said books and <br /> Page 5 of 18 <br />