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GRAVEL LEASE AGREEMENT <br />This Agreement is made this l jo day of, 2011, by and between Timothy A. <br />Frentress. P.O. Box 483, Hayden, CO 81639, hereinafter referred to as "Lessor," and Breeze <br />Basin Resources Inc., P.O. Box 181, Hayden, CO 81639, hereinafter referred to as "Lessee". <br />Lessor, in consideration of the Agreements set forth herein to be kept and performed by <br />Lessee, and the payment of royalties by Lessee as provided herein, and subject to the terms, <br />conditions, and provision contained herein, exclusively leases to Lessee the mineral interest of <br />Lessor contained in or under that certain tract of land situate in the County of Routt, State of <br />Colorado, more particularly described on Exhibit A, attached hereto, and incorporated herein by <br />reference, for the sole purpose of quarrying, mining, removing and marketing therefrom gravel, <br />sand, rock, pit run and dirt which are herein referred to as "materials". <br />TERM OF LEASE <br />?-- This lease shall be in effect for the term commencing on this /0 day of <br />2011, and continuing until February 28, 2021 or until all <br />economically recoverable materials are exhausted whichever event occurs first. <br />Lessee shall have the right and option to renew this lease for a subsequent ten (10) years <br />from March 1, 2021 to February 28, 2031, upon the same terms as stated hereunder or until all <br />economically recoverable materials are exhausted whichever comes first. Lessee shall give <br />Lessor written notice of Lessee's'intention to extend the lease no later than November 30, 2021, <br />or such right to renew or extend the lease shall terminate. <br />2. ROYALTIES <br />Lessee shall pay to Lessor as royalty the sum of $0.33 for each ton of materials removed <br />from the leased premises during the term of the lease. The quantity of material shall be <br />determined by scale weight at the pit, weighed before materials are hauled away from the leased <br />premises. Lessee will provide Lessor with quarterly reports on or before the 10" day of the <br />month following the end of the quarter, which will include copies of all weigh scale tickets <br />verifying the total amount of material removed from the pit during the preceding quarter. Lessee <br />agrees to keep a strict and accurate record of all materials removed from the leased premises. <br />Lessor shall have the right, at reasonable times to examine the mining procedures and check the <br />books and records of Lessee for the purpose of verifying the amount of royalties payable. <br />3. COVENANTS OF LESSEE <br />Lessee covenants and agrees with Lessor as follows: <br />a. To comply with all applicable laws, rules and regulations of governmental <br />authorities including, without limitation, the Colorado Division of Reclamation Mining and <br />Safety of the State of Colorado, the Environmental Protection Agency, the Army Corp of