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1 <br /> at least the next twelve (12) months for continued work on the Leased Premises by the Lessee and any <br /> other information required under Paragraph 23 of this Lease. All additional reports completed by the <br /> Lessee on the Leased Premises shall be submitted to the Lessor within ten (10) days of filing with the <br /> applicable regulatory authorities. <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 16) must be <br /> submitted to the Lessor for review and approval prior to commencement of mining activities. Such <br /> Mining and Operations Plan, and subsequent supplements of such Mining and Operations Plan, when <br /> approved, will authorize the mining activities described for the period of time described in such Mining <br /> and Operations Plan or supplement. <br /> 9. 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 sworn, verified, written production reports to <br /> Lessor, in accordance with Paragraph 6. Lessee agrees to keep and to have in possession complete and <br /> accurate books and records showing the production and disposition of any and all substances produced <br /> on the Leased Premises along with purchaser's support documentation and to permit Lessor, at all <br /> reasonable hours, to examine such books and records or to furnish copies of such books and records to <br /> Lessor within sixty (60) days following written request. All such books and records shall be retained by <br /> Lessee and made available in Colorado to Lessor for a period of not less than ten (10) years. If any such <br /> examination shall reveal, or if either Party shall discover any error or inaccuracy in its own or the other <br /> Party's statement, payment, calculation, or determination, then proper adjustment or correction <br /> thereof shall be made as promptly as practicable thereafter, except that no adjustment or correction <br /> shall be made if more than ten (10) years have elapsed between the time the error or inaccuracy <br /> occurred and the discovery by either Party of such error or inaccuracy. <br /> Further, Lessee shall furnish annually within ninety (90) days of the end of the preceding year a <br /> complete operations report to Lessor disclosing the amount and the assay thereof of all ores and <br /> Minerals mined from the Leased Premises during the preceding year. Lessee shall also furnish in such <br /> report geologic interpretations and recoverable reserve calculations, and maps and cross sections <br /> showing location of any mineral-bearing outcrops, drill holes, trenches, ore bodies and other <br /> prospecting and exploration activities, along with assays showing the amount of mineral contained in <br /> the ore. The records required to be maintained by Lessee and provided to Lessor upon request include <br /> logs of alt strata penetrated and all geologic and hydrologic conditions encountered, and copies of <br /> in-hole surveys, with this information to be collected and prepared under the supervision of a Qualified <br /> Person, as defined below. A Qualified Person may collect and prepare this data, if agreed to in writing <br /> between Lessee and Lessor. Any request to keep certain information confidential should be in writing <br /> to Lessor at the time such information is submitted to Lessor, and such data may be kept confidential <br /> as consistent with State law. Lessee shall submit, if requested by Lessor, such additional reports, <br /> records or documents regarding Lessee's operation on the Leased Premises as necessary for the <br /> compliance with the provisions of this Lease. A "Qualified Person" is defined as an individual who: (i) is <br /> an engineer or geoscientist with a university degree, or equivalent accreditation, in an area of <br /> geoscience, or engineering, relating to mineral exploration or mining; (ii) has at least five (5) years of <br /> experience in mineral exploration, mine development or operation or mineral project assessment, or <br /> any combination of these, that is relevant to his or her professional degree or area of practice; (iii) has <br /> experience relevant to the subject matter of the mineral project and the technical report; and (d) is in <br /> good standing with a recognized professional association in the United States. <br /> Page 5 of 18 <br />