2010-03-16_REVISION - M1981185 (24)

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. VII. Mutual Area of Interest 7.1 Additional Property Within Boundaries If Lessee discovers any parcel of open or unlocated ground within the boundaries of the Mining Properties, such parcels may be located by Lessee under the Mining Laws of the United States in the name of the Lessors and be considered and treated as a part of the Mining Properties covered by this Lease. 7.2 Other Mutual Area Property If during the term of this Lease any unpatented mining claims should be located or other property interests acquired by either party, within an area of three (3) miles from the perimeter of the boundaries of the Mining Properties, the same will be deemed a part of the Mining Properties subject to this Lease. 7.3 Exclusion from Mutual Area. (a) It is the intent of the Lessee and Lessor that the Mutual Area of Interest shall apply solely to claims or permits, rights or leases acquired by the Lessee from the state or federal government and which are situated within the external boundaries of the Mining Properties, and the Mutual Area of Interest shall not apply to privately owned adjacent, contiguous or other lands or leases, claims or permits. VII. Termination • 8.1 Lessee's Termination It is expressly understood between the parties hereto, anything herein contained to the contrary notwithstanding, that continuance of this Lease is optional with Lessee. Lessee may terminate this Lease at any time upon ninety (90) days written notice prior to the effective date of such termination and, thereupon, all its obligations and liabilities hereunder shall immediately cease and terminate, except liability on account of any obligation incurred and owing at the time of such termination, including a portion of the property taxes prorated for the calendar year as of the effective date of termination. Lessee shall prepare and record in the county records an instrument showing such termination. 8.2 Default. If Lessee shall at any time be in default in the performance of any of the terms and conditions hereof upon it made incumbent, including payment of royalties, such default shall not operate to or give Lessor the right to cancel, forfeit or terminate this Lease, unless Lessor shall give Lessee written notice of the default, specifying the exact nature of the default, and unless Lessee shall, within ten (10) days from the date of receipt of such notification, fail to make any payment due hereunder, or unless Lessee shall, within sixty (60) days from the date of receipt of such notification, fail to proceed diligently to cure any other default. 8.3 Right to Remove Equipment. Upon expiration or termination of this Lease for any reason, Lessee shall have the right within ninety (60) days from the date thereof, to remove from the Mining Properties all tools, equipment, machinery, buildings, supplies and other property placed therein and thereon by Lessee, excepting ties and timbers in place below the surface; and if during such period inclement weather, storms, difficult March 12, 2010 Amendment M- 1981 -185 8