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EXPLORATION AND PROSPECT DRILLING AGREEMENT <br />Made as of this /o "day of May, 2011 and ( "Effective Date") <br />This EXPLORATION AND PROSPECT DRILLING AGREEMENT ( "Agreement "), is <br />made by and between MICHAEL E. WILLIAMS AND AMY J. WILLIAMS, husband and <br />wife, with an address of P. 0. Box 115, Hayden, CO 81639 -0115 ( "LICENSOR') and <br />SAGE CREEK HOLDINGS, LLC with an address of 701 Market Street, Ste. 801, St. Louis, <br />MO 63101 ( "LICENSEE "). In consideration of the sum of $10.00, the receipt of which <br />LICENSOR hereby acknowledges, and in further consideration of the mutual covenants <br />set forth below, LICENSOR and LICENSEE agree as follows: <br />1. Explo 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 shall pay <br />LICENSOR the sum of $2000. Payment for each drill hole site shall be made to <br />LICENSOR within fifteen (15) days of LICENSEE commencing drilling. In the event <br />a hole is not drilled, no payment shall be due. Payment for each drill hole site shall <br />be considered full compensation for all damages caused by such drilling operation <br />except as otherwise provided in this Agreement. As of the Effective Date only one <br />(1) drill hole is planned for location referenced as CCUO25 on the attached Map 1, <br />and is to be drilled just north of RCR 51 -D on LICENSOR'S Property. Drilling of <br />any additional core holes must be approved in writing by LICENSOR. Drill hole <br />may be drilled at any time if not in a crop growing area of Property. Drill hole may <br />be drilled in crop growing area of Property after crops are harvested. LICENSEE <br />shall pay for any damages to actual crops caused by its activities. <br />(b) For all vibrosonic seismic (truck mounted) lines run by LICENSEE on <br />LICENSOR'S Property, the sum of $0.50 per linear foot. LICENSOR shall be <br />advised of all seismic activity prior to commencement and payment will be made as <br />