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• <br />(c) Settlement for royalty on production, after having first applied and credited <br />advance royalty paid, as provided in Section 5.3 of this Lease, and any costs which <br />Lessee may deduct from royalty payments as provided in Section 3.3 of this Lease, <br />shall be made on or before the 30th day following receipt of net smelter returns by <br />Lessee accompanied by a statement showing the factors used in determining the <br />amount of the royalty payment. The statement shall be conclusively presumed true <br />and correct after the expiration of one hundred eighty (180) days from the date <br />furnished, unless within such one hundred eighty (180) days Lessor takes written <br />exception, specifying with particularity the items excepted and the grounds for each <br />exception. <br />5.2 Payment of Royalty in Kind. The Lessor shall have the right to receive its Net <br />Smelter Return Royalty as refined by the refiner of gold concentrate in lieu of cash. <br />(a) If the Lessor chooses to receive royalty payments in refined gold, it shall notify <br />the Lessee at least thirty (30) days in advance and shall bear any extra costs or <br />expenses incurred by the Lessee in making payment in refined gold. <br />(b) The quantity of refined gold received by the Lessor shall be determined by <br />dividing the royalty amount, less extra costs and expenses relating to refining, by the <br />gold price used in determining the royalty percentage. <br />(c) Absent any notification, the Lessee shall pay all royalties in cash. <br />(d) The Lessor may request the smelter or other ore- purchasing agency to deliver <br />said royalty interest in production directly to the Lessor or retain possession of such <br />interest at the smelter for future sale <br />5.3 Advance Royalty Payments That while this Lease remains in effect, the Lessee shall <br />pay, or will have paid, to the Lessor on or before the end of each lease year, royalties <br />amounting in the aggregate to not less than the amount set forth opposite each date <br />respectively as follows: <br />End of Lease Year Advance Payment <br />Dollar amounts above shall be adjusted as provided in Schedule 3) Any amount so paid <br />in excess of royalties payable on production shall be advance royalties and shall be <br />applied against future production, and no royalties on production shall be paid, except to <br />the extent that there shall be a balance due on production after having applied and <br />credited against the said production the following: <br />March 12, 2010 Amendment M- 1981 -185 <br />5 <br />