GENERAL41756

• Permit No: M1993030
• IBM Index Class Name: General Documents
• Doc Date: 7/1/2004
• Doc Name: Mining Agreement
• From: John O. Buckner
• To: DMG
• Media Type: D
• Archive: No

operation dedicated to production. Additional hours of on-site work, clearing trees, mineral
recovery by hand, and mechanized equipment used for reclamation are not included in this 30
hours. The POSP will notify the POFP when these days are scheduled. The POSP will set dates
for mining to allow for adverse conditions and to allow for ample opportunities to complete
production. However, if after setting work dates, circumstances such as changes in Federal, State,
County or local government laws, rules and regulations cause the right to mine to be terminated or
suspended, or if acts of God such as floods, fires, severe weather or other uncontrollable events
cause the termination or suspension of mining operations, the spirit of this Agreement will have
been considered to be met for the current year. Generally, mechanized mineral recovery dates will
be set for June as to permit time for follow-up or additional work and to allow time for mineral
preparation and cleaning.
6. Royalty Payment. The POSP shall pay a production royalty of 25% of the gross sales price of
the crystallized minerals and miners[ specimens mined and sold from the Properties. All
production royalties are payable twice annually on the 1st day of November and on the 1st day of
May, or when a minimum of $2,500 in gross sales has been reached. Such payments shall be
accompanied with sales records and documentation showing the basis of determination of
production royalty.
7. Pocket Classification. All pockets of crystallized minerals and mineral specimens found on the
Properties will be designated as one of three major groups. Group 1 pockets will contain a
majority of premium pieces which will expect to sell for $500.00 each or more in retail value.
Group 2 pockets will contain a majority of pieces which will expect to sell for between $100.00
and $500.00 each. Group 3 pockets will contain pieces of some commercial value but which the
majority of pieces are expected to sell below $ 100.00 for any one piece.
8. POFP Right to Access and Produce. The I?OFP retains the right for self access and reasonable
self production from said Properties for as long as he shall live and is able to recover minerals.
Self access and self production exclude others from assisting the POFP unless through mutual
agreement of the POSP. This Agreement does not permit assignurg this right to any other
individual or parties. This Agreement does allow use of mechanized equipment, but not to exceed
one quarter of one acre of disturbance at any one time allowed under the current mining permit.
Recovery may be in conjunction with the POSP or it may be separate. All mineral recovery must
be within the mining permit requirements and appropriate Sate and Federal regulations. Ali
reclamation restilting from the POFP's operations are separate of and are the responsibility of the
POFP. No restrictions are placed on disposition of minerals recovered. The POFP may elect to
enter into agreement with the POSP for disposal or may dispose and sell of his production in a
manner he sees fit. The spirit of this provision is to allow the POFF to produce and market
specimens as he is fit to do so for as long as he shall live.
9. Agreement to Preserve Histor~+ The POSP agrees to use the present names of these mining
claims and to credit mineral recovery to the appropriate claim in order to keep historically intact
and accurate mining production from these claims and to credit John O. Buckner for their
discovery and development.
10. Agreement to Preserve Interest. The POFP hereby warrants and represents that he holds
proper claim to the Properties, under the 1872 Mining Law, and has fizll power and authority to
enter into this Agreement. The POFP agrees to defend the Properties against all persons or entities
who would make any other claims to, on, or for the Properties.