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<br />EXPLORATION AGREEMENT
<br />THIS EXPLORATION AGREEMENT ("Agreement") is made and entered into as of the
<br />8 &day of N ne 2005 (the "Effective Date' /, by and between Vivian Mock
<br />and Dale ock, in Licensor"), and Kiewit Mining Group hrc., a Delaware
<br />corporation ("Licensee ").
<br />PRELWNARY STATEMENT. Licensor is the owner of certain real property rights
<br />located in Elbert County, Colorado as more specifically described on Exhibit A• attached hereto
<br />(the "premises "). Licensee holds certain mineral and coal rights underlying said premises.
<br />Licensee desires to prospect, explore and evaluate the Premises for possible future development,
<br />mining and sale of any mineral and all coal and/or lignite which may be found in, underlying
<br />located in, on, or under the Premises. Licensor is willing to grant to Licensee the exclusive right
<br />to conduct exploration activities in and upon the Premises
<br />NOW, THEREFORE, in consideration of the premises and the mutual covenants and
<br />agreements contained herein, and such other good and valuable consideration, the receipt and
<br />sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound,
<br />agree as follows:
<br />1. Grant of Exploration Rights Licensor hereby grants to Licensee and its
<br />employees, agents and contractors ( "Agents") access to and the right to enter upon, over, and
<br />. across the Premises, together with the exclusive license and right, pursuant to the terms of this
<br />Agreement, to conduct exploration activities for coal and/or lignite and their constituent products
<br />within and upon the Premises, including without limitation, the right to excavate test pits, gather
<br />samples for testing, analyze mineral deposits, conduct a drilling program, perform surface or
<br />serial mapping conduct environmental data collection and conduct other related exploratory
<br />activities as Licensee, in its discretion, may deem necessary to evaluate the Premises for possible
<br />future development, mining and sale of such coal or minerals. The rights granted hereunder shall
<br />include the right of Licensee and its Agents to use existing access roads owned by Licensor and
<br />the use of such rights of way for access that Licensor may hold over other surface lands not
<br />included in the Premises. Licensee shall have the right to purchase water and power as available
<br />from Licensor under such term as may be negotiated between Licensor and Licensor. All
<br />exploration undertaken by Licensee shall be at its sole cost, risk, and expense. Licensee will
<br />provide reasonable notice to Licensor before commencing drilling or excavation activities and
<br />Licensor will cooperate with licensee and its Agents to the extant reasonably necessary for
<br />Licensee to complete its exploration program. Licensor will make available to Licensee and its
<br />Agents all relevant materials and documents, except for materials or documents subject to
<br />confidentiality restrictions, which reasonably relate to the Premises, including, without
<br />limitation, title reports, surveys, engineering and geological studies, and previous drilling logs, if
<br />any.
<br />2. Title, Licensor represents and warrants that: (a) it is the true and lawful owner of
<br />the Premises; (b) it has good right and lawful authority to grant to Licensee the rights granted
<br />herein; and (c) neither the execution and delivery of this Agreement, nor the fulfillment of or
<br />compliance with the terms and conditions hereof, conflicts with or results in a breach of any of
<br />the terms, conditions or provisions of any other restriction, agreement or instrument to which the
<br />Licensor is a party or by which it is bound.
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