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~ ~~~3 2 ins STATE OF COLORADO • STATE BOARD OF LAND COMMISSL Department of Natural Resources Denver, Colorado GENERAL MINING LEASE NO. GM 3314 THIS MINING LEASE, Made in duplicate and entered into this 23rd day of October 1996 , by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafrer referred to as Lessor, and The Fort Lvon Canal Company P O Box 231 Las Animas CO 81054 hereinafrer referred to as Lessee: WITNESSETH: Lessor, for and in consideration of the sum of six hundred sixty and no/100 - Dollazs ($ 660.00 ), receipt of which is hereby acknowledged as payment of the filing fee in the amount of $ 20.00 ,first yeaz's rent in the amount of $ 640.00 , and a bonus in the amount of $ -0- ,and in further consideration of Lessee's agreement to pay two and no/100 - Dollaz(s) ($ 2.00 )per acre annually as rental in advance of the anniversary date of this tease so long as said lease shall remain in effect; and in further consideration of the terms, conditions and agreements herein and of the payments of annual rentals and royalties reserved herein, to be kept and performed by Lessee, its successors and assigns, does hereby lease to Lessee the right and privilege of exploring and prospecting for, developing, and mining of and taking of auarrv minerals from the lands herein described, siruated in the County of Bent ,State of Colorado, to wit: ACRES SUBDMSION SEC.TWP.RGE. PATENTS 320.00 S/2 3-22S-48W None FUND: School containing 320.00 acres, more or less, together with the right to use as much of the surface as may be reasonably required in the exercise of the right to mine, including strip mining, in situ solution mining, and heap leaching; and the right to reasonable ingress and egress; the right to construct buildings, make excavations, stockpiles, dumps, drains, roads, railroads, powerlines, pipelines, and other improvements as may be reasonably necessary in the mining and removal of said minerals; subject, however, to all existing easements and rights-of--way of third parties, and the rights of surface lessees and surface patentees, and further subject to the terms, conditions and agreements set out in this lease. The above-mentioned rights may be exercised in connection with mining on other or adjacent lands only when mining on such lands is carried on in conjunction with the actual mining on the land herein leased. RESERVING, however, to the State of Colorado: A. All rights and privileges of every kind and narure, except as aze herein specifically granted. B. The right to use or lease said premises or any part thereof at any time for any purpose, including the right to explore and prospect said premises, which use and leasing of said premises shall be for purposes other than and not inconsistent with the rights and privileges herein specifically granted.