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MINING LEASE <br /> This Mining Lease is made effective as of the 15th day of March, 2020,,between-_ <br /> , c „ <br /> whose address is � env Y �,, -;k �4 Z�.-� �z,c�,,;L�,ctU,C�i" the "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 Fourteen Hundred Dollars ($1,400.00) 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 /> .=. The term "Property"shall mean the Bancroft Placer Mining Claim M.S. 2243,the Index Placer <br /> Mining Claim M.S. 2246 and the Little Louise Placer Mining Claim M.S 2247 in Montrose County,State <br /> of Coiorado. <br /> 1.2.The term "Leased Substances" shall mean ali 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. 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 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 fora "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 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 /> excluding anv period of Force Majeure as hereinafter provided. <br /> 4. PRODUCTION ROYALTY Lessee shall pay to Lessor, on a semi-annual basis, a "Production Royalty" of <br /> Ten percent (10.0%) 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 anv 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 vague 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 cf all calculations relative to Production <br />