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MINING LEASE
<br /> This Mining Lease is made effective as of the 15th day of March, 2020, between DELLA C. LONG,
<br /> whose address is 9280 Yarrow Street, #4204, Westminster, Colorado 80021-8679 (the "Lessor")and
<br /> GREGG MORRILL, whose address is 12207 Road 29.4, Dolores, Colorado 81323 (the "lessee").
<br /> WITNESSETH
<br /> In consideration 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 /> 1 ?. Tha tPrm "Prnpprty" shall mean the Bancroft Placer Mining Claim M.S. 2243, the Index Placer
<br /> Mir.:ng Claim M.S. 2246 and the little Louise Placer Mining Claim M.S 2247 in Montrose County, State
<br /> of Colorado.
<br /> 1.2.The term "Leased Substances' shall mean all gold, silver, platinum, palladium 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. GRt_VT Lessor herby grants, demises, leases and lets exclusively unto Lessee, his successors and
<br /> assigns, the Property, together with the right to explore for and 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 frorn 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 Term, operations shall be deemed conducted on a continuous basis
<br /> unless and until a period 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 lies at least in part within the Property, but
<br /> excludine anv period of Force Majeure as hereinafter provided.
<br /> 4. PRODUCT iON ROYALTY Lessee shall pay to Lessor, on 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 serni 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 each salable mineral constituent of Leased
<br /> Substances produced during each 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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