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MINING LEASE
<br /> his Mining Lease is made effective as of the 1Stn day of March, 2020 between
<br /> whose address is. >V y �' /-;'d Z7tt +t am `tC '1/cr r }n, LtRlhe `Lessor")and
<br /> GREGG MORRILL, whose address is 12207 Road 29.4, Dolores,Colorado 81323 (the "Lessee").
<br /> WITNESSETH:
<br /> In consideration of the sum of in hand paid to Lessor by lessee,
<br /> the receipt and sufficiency of which is hereby acknowledged. and of the covenants and promises
<br /> hereinafter expressed, Lessor and Lessee agree as follows:
<br /> 1. DEFINITIONS The following terms shall have the following meanings:
<br /> Thp Corm "Prooertv" shall mean the Bancroft Placer Min ng Claim M.S. 2243, the Index Placer
<br /> Mining Claim M.S. 2246 and the Little Louise Placer alining Clair) M.S 2247 in Montrose County, State
<br /> of Colorado.
<br /> 1.2_The term "Leased Substances" shall mean ai, Euld, silver, platinum, aailadium and other
<br /> precious minerals in, upon or under the Property.
<br /> 1.3-The terms "Primary Term," "Extended Term' and 'Production Royalty" shall have the respective
<br /> meanings set forth below
<br /> 2. GRANT Lessor herby grants, demises, leases and lets exclusively unto Lessee, his successors and
<br /> assigns, the Property, together with the right to explore for ano mine Leased Substances by any method.
<br /> and to process or treat by any means, sell or otherwise dispose of Leased Substances, subject to the
<br /> Production Royalty obligations set out in Section 4, below
<br /> 3. TERM This Lease is granted for a "Primary Term" of two (2) years from the effective date hereof,
<br /> and for a 'Extended Term" lasting for so long thereafter as Lessee is conducting continuous exploration.
<br /> development, mining, processing, concentrating or beneficiating operations on a deposit of Leased
<br /> Substances During the Extended Terrn, operations shall be deemed conducted on a continuous basis
<br /> unless and until a rerind of three hundred (300) consecutive days elapses during which no exploration,
<br /> development, mining, processing, concentrating or beneficiating operations are conducted on a deposit
<br /> of minerals, which includes Leased Substances and which lips at least in part within the Property, but
<br /> excluding anv period of Force Majeure as hereinafter provided.
<br /> 4. PRODUCTION ROYALTY Lessee shall pay to lessor,or.a semi-annual basis, a "Production Royalty" of
<br /> of the gross value of the Leased Substances mined, produced, derived and sold or
<br /> taken by Lessee from any portion of the Property- Said semi-annual periods shall be the months of
<br /> January through June and the months of July through December of each year during the Primary Term
<br /> or any Extended Term hereof. Payment of Production Royalty to Lessor will be made, by Lessee's check,
<br /> within thirty (30) days after the end of each six month period. The gross value of Leased Substances will
<br /> be determined by multiplying the weight, in ounces, of eacl, salable mineral constituent of Leased
<br /> Substances produced during earn six month period times the average spot market price for that mineral
<br /> constituent, as reported by a recognized exchange, for the same time period, with no deductions taken.
<br /> Each such payment will be accompanied by an explanation, of the calculation of the Production Royalty
<br /> due, together with any available supporting documentation.
<br /> 4.1. Books and Records. lessee shall maintain and keep books and records and accounts to reflect
<br /> the mining, storage and shipment of all Leased Substances and of all calculations relative to Production,
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