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plants, accessory equipment, offsite aggregate materials and any other uses not specifically <br /> mentioned herein will be subject to the approval of Lessor and require a $500.00 per acre yearly <br /> payment or yearly rental payment of no less than $5,000.00, whichever is greater. Haut roads <br /> and/or access roads which do not directly benefit the Leased Premises will be subject to a separate <br /> road access permit and approval of Lessor. <br /> 6. 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, <br /> in which report shall be entered and set down the exact amount in weight of all products and the <br /> assay thereof mined and removed from said Leased Premises during the preceding calendar month. <br /> Lessee agrees to keep and to have in possession complete and accurate books and records showing <br /> the production and disposition of any and all substances produced on the Leased Premises and to <br /> permit Lessor at at[ reasonable hours, to examine the same or to furnish copies of same to Lessor <br /> within 60 days following written request along with purchaser's support documentation. All said <br /> books and records shalt be retained by Lessee and made available in Colorado to Lessor for a period <br /> of not less than 10 years. If any such examination shalt reveal, or if either party shall discover any <br /> error or inaccuracy in its own or the other party's statement, payment, calculation, or <br /> determination, then proper adjustment or correction thereof shalt be made as promptly as <br /> practicable thereafter, except that no adjustment or correction shalt be made if more than 10 years <br /> have elapsed between the time the error or inaccuracy occurred and the discovery by either party <br /> of said error or inaccuracy. <br /> Further, Lessee shalt furnish annually a complete operations report to Lessor disclosing the <br /> number of tons and the assay thereof of at( ores, minerals and other materials mined from the <br /> premises during the preceding year. Lessee shalt also furnish in said report geologic interpretations <br /> and recoverable reserve calculations, and maps and cross sections showing location of any <br /> mineral-bearing outcrops, drill holes, trenches, ore bodies and other prospecting and exploration <br /> activities, along with assays showing the amount of mineral contained in the ore. The records <br /> required to be maintained by Lessee and provided to Lessor upon request include tags of at[ strata <br /> penetrated and all geologic and hydrologic conditions encountered, and copies of in-hole surveys; <br /> this information to be collected and prepared under the supervision of a qualified geologist, <br /> geological engineer or mining engineer. Other qualified persons may collect and prepare this data, <br /> if agreed to in writing between Lessee and Lessor. Any request to keep certain information <br /> confidential should be in writing to Lessor at the time such information is submitted to Lessor, and <br /> such data may be kept confidential as consistent with State taw. Lessee shalt submit, if requested by <br /> Lessor, such additional reports, records or documents regarding Lessee's operation on the Leased <br /> Premises as necessary for the compliance with tease provisions. <br /> 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment <br /> hereof shalt not be burdened with overriding royalties the aggregate of which exceeds two percent <br /> (2%) of the gross value of the minerals or ore at the first point of sale. Lessor must be notified of all <br /> overriding royalties accruing to this Lease. <br /> 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by utilizing <br /> methods of exploration commonly used in the industry, such as mapping, sampling, dritting, <br /> trenching, geophysical exploration, and laboratory analysis. Indirectly related exploration and <br /> development work such as work done on adjacent properties, or design or construction of a mill will <br /> not be considered as diligent development of the Leased Premises unless approved by Lessor. <br /> GL 112629 Revised DOL 11/2018 <br /> Page 4 of 17 <br />