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AGREEMENT TO OPERATE AND MINE
<br />This Agreement, made effective as of the 1 ~ ~ day of !c 2004, is by and
<br />between John O. Buckner, of 2516 Waldean Street, Colorado Springs, C lorado 80909, telephone
<br />(719) 634-4042, owner, hereinafter called the party of the first part (POFP) and Joseph L. Dorris,
<br />of 2920 Cedar Heights Drive, Colorado Springs, Colorado 80904, telephone (719) 685-4479,
<br />hereinafter called the party of the second part (POSP).
<br />1. Property Representation. The POFP represents and warrants that, subject to those rights granted
<br />to anyone legally claiming mineral rights on United States Federal lands as may be granted and
<br />authorized under the United States 1872 Mining Law regulating unpatented lode mining claims on
<br />the Federal lands of the United States, hereinafter referred to as the 1872 Mining Law, he is the
<br />owner of the unpatented mining claims known as the "QUI-BUC No. 1," "QUI-BUC No. 4,"
<br />"QUI-BUC No. 5," "QUI-BUC NO. 6," "QUI-BUC NO. 7," "TWO POINT," "UTE," "C.& J. No.
<br />1," "C. & J. No. 2," and the "FREEHAWK," Lode Mining Claims located an Teller County,
<br />Colorado, as more specifically described in Exhibit A, attached hereto and made a part hereof by
<br />reference. Said mining claims hereinafter are referred to as the "Properties."
<br />2. Exclusive Right to Operate. Tn consideration of the covenants and agreements herein
<br />contained, POFP grants unto POSP the exclusive right, pursuant to the terms and conditions of this
<br />Agreement, to enter in and upon and take immediate and exclusive possession and control of the
<br />Properties, in accordance with the 1872 Mining Law, and to remain on said Properties and to
<br />investigate, explore, measure, sample, examine, test, develop, work, operate, use, control the
<br />same, and to mine and remove from said Properties mineral crystals, ores, and mineral specimens
<br />therefrom, and to perform whatever operations the POSP in his sole discretion shall choose; and to
<br />erect, construct, maintain, use and operate thereon and therein buildings, structures, machinery,
<br />and equipment.
<br />3. Conveyance of Responsibility. The POSP shall assume and exercise all responsibilities for
<br />mining operations on said Properties from the POFP except for responsibilities excluded for
<br />personal mineral production b-y the POFP as outlined in paragraph 8. These responsibilities
<br />include but are not limited to: all responsibilities for operations under the current State of
<br />Colorado Division of Minerals and Geologry mining and reclamation permit No. M-1993-030;
<br />complying with all current permits; maintaining currency of all permits; completing annual
<br />assessment work on the Properties; filing and recording a.7nual assessment affidavits with Teller
<br />County, Colorado and the USBLM; filing all annual reports as required under the applicable
<br />permits, to include the Stormwater Annual Report and Annual Mineral Recovery and Production
<br />Report:, resetting (as applicable} all claim markers, to include mineral location notices; reclaiming
<br />all currently mined areas; and paying all applicable fees; .
<br />4. Term. This Agreement to operate and produce minerals shall remain in effect for the 3ife of the
<br />POFP or the life of the POSP from the effective date hereof, unless sooner terminated, or
<br />conditions of this agreement are not met by either Party, or upon termination by mutual agreement
<br />of hoth Parties.
<br />5. Mechanized Production Agreement. The POSP will conduct a minimum of five (5) days of
<br />mechanized mineral recovery per year, commencing the summer of 2004, but not limited to five
<br />days. Each day will consist of dedicated work with mechanized equipment for a standard work
<br />day of approximately six (6) hours of equipment work for a total of 30 hours of equipment
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