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EXPLORATION AND PROSPECT DRILLING AGREEMENT <br />Made as of this /3t` day of May, 2011 ("Effective Date") <br />This EXPLORATION AND PROSPECT DRILLING AGREEMENT ("Agreement"), is <br />made by and between DENNIS A. and LAURIE L. HALLENBECK, husband and wife in <br />joint tenancy, with an address of 36190 County Road 27, Hayden, CO 81639-9621 <br />("LICENSOR") and SAGE CREEK HOLDINGS, LLC with an address of 701 Market Street, <br />Ste. 801, St. Louis, MO 63101 ("LICENSEE"). In consideration of the sum of $10.00, the <br />receipt of which LICENSOR hereby acknowledges, and in further consideration of the <br />mutual covenants set forth below, LICENSOR and LICENSEE agree as follows: <br />Exploration Rights. LICENSOR grants LICENSEE or its agents or subcontractors, <br />for the term of this Agreement, the nonexclusive right to enter the lands described <br />on Exhibit A attached hereto and depicted on map also attached hereto labeled <br />Map land both incorporated herein by reference (the "Property"), from time to time, <br />to prospect for, drill core holes, take core samples, conduct general surveying for <br />infrastructure, conduct archaeological surveys, conduct vegetation surveys, conduct <br />vibrosonic seismic line surveys, excavate pits and use a hand auger to determine <br />and verify top soil depth, and otherwise evaluate coal and other minerals and strata <br />underlying the surface of the Property. LICENSEE shall also have the nonexclusive <br />right to perform all studies necessary or convenient to obtain governmental <br />approvals and permits necessary for coal exploration and related operations. No <br />new roads will be constructed on LICENSOR'S Property without the express written <br />consent of LICENSOR, which consent shall not be unreasonably withheld, however <br />LICENSEE shall have the right to improve or enhance existing roads. <br />2. Compensation. LICENSEE shall pay LICENSOR the following amounts: <br />(a) For each and every drill hole drilled on the Property by LICENSEE, <br />LICENSEE shall pay LICENSOR the sum of $525.00. Payment for each drill hole <br />site shall be made to LICENSOR within fifteen (15) days of LICENSEE <br />commencing drilling. In the event a hole is not drilled, no payment shall be due. <br />Payment for each drill hole site shall be considered full compensation for all <br />damages caused by such drilling operation except as otherwise provided in this <br />Agreement. As of the Effective Date only one (1) drill hole is planned for location <br />referenced as CCU069 on the attached Map 1. Drilling of any additional core holes <br />must be approved in writing by LICENSOR, such approval not to be unreasonably <br />withheld.. Drill holes may be drilled at any time if not in a crop growing area of <br />Property. Drill holes may be drilled in a crop growing area of the Property after <br />crops are harvested. LICENSEE shall pay for any damages to actual crops caused <br />by its activities. <br />(b) For all vibrosonic seismic (truck mounted) lines run by LICENSEE on <br />LICENSOR'S Property, the sum of $0.20 per linear foot. LICENSOR shall be