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correction shall be made if more than 10 years have elapsed between the time the error or inaccuracy
<br /> occurred and the discovery by either party of said error or inaccuracy.
<br /> Further, Lessee shall furnish annually a complete operations report to Lessor disclosing the
<br /> number of tons and the assay thereof of all ores, minerals and other materials mined from the premises
<br /> during the preceding year. Lessee shall also furnish in said report geologic interpretations and
<br /> recoverable reserve calculations, and maps and cross sections showing location of any mineral-bearing
<br /> outcrops, drill holes, trenches, ore bodies and other prospecting and exploration activities, along with
<br /> assays showing the amount of mineral contained in the ore. The records required to be maintained by
<br /> Lessee and provided to Lessor upon request include logs of alt strata penetrated and all geologic and
<br /> hydrologic conditions encountered, and copies of in-hole surveys; this information to be collected and
<br /> prepared under the supervision of a qualified geologist, geological engineer or mining engineer. Other
<br /> qualified persons may collect and prepare this data, if agreed to in writing between Lessee and Lessor.
<br /> Any request to keep certain information confidential should be in writing to Lessor at the time such
<br /> information is submitted to Lessor, and such data may be kept confidential as consistent with State law.
<br /> Lessee shall submit, if requested by Lessor, such additional reports, records or documents regarding
<br /> Lessee's operation on the Leased Premises as necessary for the compliance with tease provisions.
<br /> 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment hereof
<br /> shall not be burdened with overriding royalties the aggregate of which exceeds two percent (2%) of the
<br /> gross value of the minerals or ore at the first point of sale. Lessor must be notified of all overriding
<br /> royalties accruing to this Lease.
<br /> 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by utilizing methods of
<br /> exploration commonly used in the industry, such as mapping, sampling, drilling, trenching, geophysical
<br /> exploration, and laboratory analysis. Indirectly related exploration and development work such as work
<br /> done on adjacent properties, or design or construction of a mill will not be considered as diligent
<br /> development of the Leased Premises unless approved by Lessor.
<br /> 9. PENALTIES -- A penalty may be imposed for, but not limited to, late payments, improper payments,
<br /> errors on production reports, violation of any covenant of this Lease, or false statements made to
<br /> Lessor. Penalties, taking into account the nature of the claimed deficiency, shall be determined by
<br /> Lessor and may be in the form of, but not limited to, interest, fees, fines, and/or Lease cancellation.
<br /> Interest shall accrue on any delinquent annual rental, royalty, and other fees due under this Lease
<br /> from the date the payment becomes due. Interest shall be calculated at the rate of one and one-half
<br /> percent(1.5%)per month, or any fraction thereof, compounded monthly, until full payment is received
<br /> by Lessor. In addition, the Lessor may charge penalties as provided in the Lessor's published fee
<br /> schedules, as they may be amended from time to time.
<br /> 10. ASSIGNMENT -- Lessee, only with written consent of Lessor, may assign this tease as to the leasehold
<br /> interest of such Lessee in all or part of the lands covered hereby; not less, however, than tracts of
<br /> approximately forty (40) acres or governmental lots corresponding to a quarter-quarter section for any
<br /> partial assignment.
<br /> No assignment of undivided interests or retention or reservation of overriding royalties will be
<br /> recognized or approved by Lessor, and the effect, if any, of any such assignments or reservations will be
<br /> strictly and only as between the parties thereto and outside the terms of this lease. No dispute between
<br /> parties to any assignment or reservation shall operate to relieve Lessee from performance of any terms
<br /> or conditions hereof or to postpone the time therefor. Lessor will at all times be entitled to took solely
<br /> to Lessee or his assignee shown on Lessor's books as being sole owner hereof, and for the sending of all
<br /> notices required by this Lease, for the performance of all terms and conditions hereof.
<br /> If an assignment of a part of this Lease is approved, a new lease designated as an assignment
<br /> lease will be issued to the assignee covering the lands assigned for the balance of the term of the base
<br /> lease on the mining lease form in use at the time of assignment and limited as to term as said lease is
<br /> GL 112927 Revised DOL 11/2018
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