2010-03-16_REVISION - M1981185 (24)

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• construction in preparation for mining or processing a proven or possible ore reserve, but not including drilling of such an ore reserve. Unless otherwise specified, all references to the term of this Mining Lease shall mean and include both the primary term and the continuing term. II. Representations of Ownership. Possession. etc. 2.1 Lessor Represents: (a) Lessor is in exclusive possession of and represents that it holds marketable title to the Mining Properties, free and clear of all defects in title, adverse claims, liens, encumbrances or agreements affecting title of any kind by, through or under Lessor. Any warranty or liability disputes arising under this subsection shall be handled in the manner specified in Section III hereof. (b) The Lessor is not aware of any litigation, claims or demands made by others with respect to the title of its Mining Properties. (c) The Lessor has the right and authority to execute this Mining Lease and to lease the Mining Properties to the Lessees. (d) To the best of the Lessor's belief, no other person, association or corporation has • any interest or claim to the Mining Properties, and all prior leases covering them have been terminated or released. (e) To the best of Lessor's knowledge, the physical condition of the Mining Properties does not violate any federal, state or local law, ordinance or regulation relating to the environmental conditions on, under or about the Mining Properties, including, but not limited to, soil and groundwater conditions, and there is not pending or threatened any proceeding or inquiry by any federal, state or local government authority with respect to the presence of any asbestos, radioactive materials, hazardous waste, toxic substances or related injurious materials, on the Mining Properties or the migration of such materials from or to other property. For purposes of this Lease, such materials shall include but not be limited to substances defined as "hazardous substances," "hazardous materials," or "toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 D.S.C. Section 9601, et. seq.; the Hazardous Materials Transportation Act, 49 D.S.C. Section 1801, et. seq.; the Resource Conservation and Recovery Act, 42 D.S.C. Section 6901, et. seq.; in the Colorado Revised Statutes; and in the regulations adopted and promulgated pursuant to the foregoing laws. (f) So long as the Lessee shall perform the covenants required to be performed by it hereunder, the Lessee shall have peaceful and quiet use and possession of the Mining Properties without hindrance on the part of the Lessor. • March 12, 2010 Amendment M- 1981 -185 2