2011-02-28_REVISION - M1981185 (4)

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such land payable to the United States pursuant to federal law now existing or hereafter enacted. (b) The gold price for purposes of determining the royalty under this Section 5.1 shall be the London final fix on gold on he London Gold Market for the week in which Lessee receives net smelter returns. (c) Settlement for royalty on production, after having first applied and credited advance royalty paid, as provided in Section 5.3 of this Lease, and any costs which Lessee may deduct from royalty payments as provided in Section 3.3 of this Lease, shall be made on or before the 30th day following receipt of net smelter returns by Lessee accompanied by a statement showing the factors used in determining the amount of the royalty payment. The statement shall be conclusively presumed true and correct after the expiration of one hundred eighty (180) days from the date furnished, unless within such one hundred eighty (180) days Lessor takes written exception, specifying with particularity the items excepted and the grounds for each exception. 5.2 Payment of Royalty in Kind. The Lessor shall have the right to receive its Net Smelter Return Royalty as refined by the refiner of gold concentrate in lieu of cash. (a) If the Lessor chooses to receive royalty payments in refined gold, it shall notify the Lessee at least thirty (30) days in advance and shall bear any extra costs or expenses incurred by the Lessee in making payment in refined gold. (b) The quantity of refined gold received by the Lessor shall be determined by dividing the royalty amount, less extra costs and expenses relating to refining, by the gold price used in determining the royalty percentage. (d) The Lessor may request the smelter or other ore- purchasing agency to deliver said royalty interest in production directly to the Lessor or retain possession of such interest at the smelter for future sale