2025-11-25_REVISION - M1999004 - Laserfiche WebLink

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ancillary use is less than one year. Haul roads and/or access roads which do not directly benefit the Leased Premises will be subject to a separate permit and approval of Lessor. 6. REPORTS AND RECORDS •- After operations begin, it is agreed that on or before the last day of each month during the term of this lease Lessee shall submit a sworn, verified, written report to Lessor, in which report shall be entered and set down the exact amount in weight of all products and the assay thereof mined and removed from said Leased Premises during the preceding calendar month. Lessee agrees to keep and to have in possession complete and accurate books and records showing the production and disposition of any and all substances produced on the Leased Premises and to permit Lessor at all reasonable hours, to examine the same or to furnish copies of same to Lessor within 60 days following written request along with purchaser's support documentation. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than 10 years. If any such examination shall reveal, or if either party shall discover any error or inaccuracy in its own or the other party's statement, payment, calculation, or determination, then proper adjustment or correction thereof shall be made as promptly as practicable thereafter, except that no adjustment or correction shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. Further, Lessee shall furnish annually a complete operations report to Lessor disclosing the number of tons and the assay thereof of all ores, minerals and other materials mined from the premises during the preceding year. Lessee shall also furnish in said report geologic interpretations and recoverable reserve calculations, and maps and cross sections showing location of any mineral-bearing outcrops, drill holes, trenches, ore bodies and other prospecting and exploration activities, along with assays showing the amount of mineral contained in the ore. The records required to be maintained by Lessee and provided to Lessor upon request include logs of all strata penetrated and all geologic and hydrologic conditions encountered, and copies of in-hole surveys; this information to be collected and prepared under the supervision of a qualified geologist, geological engineer or mining engineer. Other qualified persons may collect and prepare this data, if agreed to in writing between Lessee and Lessor. Any request to keep certain information confidential should be in writing to Lessor at the time such information is submitted to Lessor, and such data may be kept confidential as consistent with State law. Lessee shall submit, if requested by Lessor, such additional reports, records or documents regarding Lessee's operation on the Leased Premises as necessary for the compliance with lease provisions. 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment hereof shall not be burdened with overriding royalties the aggregate of which exceeds two percent (2%) of the gross value of the minerals or ore at the first point of sale. Lessor must be notified of all overriding royalties accruing to this Lease. 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by utilizing methods of exploration commonly used in the industry, such as mapping, sampling, drilling, trenching, geophysical exploration, and laboratory analysis and will expend as a minimum annually the amounts set forth below: LEASE YEAR MIN EXPEND LEASE YEAR MIN EXPEND No minimum development required during the primary term SM 102453 Page 4 of 15