----

----

| PART      I  THE TRANSACTION                                         | 1                                                                             |
|--------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| ARTICLE      I  DEFINITIONS AND CROSS-REFERENCES                     | 1                                                                             |
| 1.1                                                                            | Definitions                                                                   | 1 |
| 1.2                                                                            | Cross      References                                                         | 1 |
| ARTICLE      II  NAME AND PURPOSES                                   | 2                                                                             |
| 2.1                                                                            | General                                                                       | 2 |
| 2.2                                                                            | Option      Period and Joint Venture Period                                   | 2 |
| 2.3                                                                            | Purposes                                                                      | 2 |
| 2.4                                                                            | Limitation                                                                    | 2 |
| ARTICLE      III  REPRESENTATIONS AND WARRANTIES; TITLE TO    ASSETS | 3                                                                             |
| 3.1                                                                            | Representations      and Warranties of all Parties                            | 3 |
| 3.2                                                                            | Representations      and Warranties of USE                                    | 3 |
| 3.3                                                                            | Knowledge      of Parties                                                     | 5 |
| 3.4                                                                            | Disclosures                                                                   | 5 |
| 3.5                                                                            | Loss      of Title                                                            | 6 |
| 3.6                                                                            | Royalties,      Production Taxes and Other Payments Based on Production       | 6 |
| 3.7                                                                            | Confidentiality      of Agreement                                             | 6 |
| ARTICLE      IV  RELATIONSHIP OF THE PARTICIPANTS                    | 6                                                                             |
| 4.1                                                                            | No      Partnership or Fiduciary Relationship                                 | 6 |
| 4.2                                                                            | Tax      Matters                                                              | 6 |
| 4.3                                                                            | Other      Business Opportunities                                             | 6 |
| 4.4                                                                            | Waiver      of Rights to Partition or Other Division of Assets                | 7 |
| 4.5                                                                            | Implied      Covenants                                                        | 7 |
| 4.6                                                                            | No      Third Party Beneficiary Rights                                        | 7 |
| PART      II  OPTION PERIOD                                          | 7                                                                             |
| ARTICLE      V  OPTION CONSIDERATION                                 | 7                                                                             |
| 5.1                                                                            | Option      Consideration                                                     | 7 |
| ARTICLE      VI  THE OPTION                                          | 7                                                                             |
| 6.1                                                                            | Option                                                                        | 7 |
| 6.2                                                                            | Option      Stages                                                            | 9 |
| 6.3                                                                            | Failure      to Make Expenditures and Termination                             | 9 |
| 6.4                                                                            | Obligations      Upon Termination During Option Period                        | 10 |
| 6.5                                                                            | Exercise      of Option and Acquisition of Additional Interest in    Property | 10 |
| 6.6                                                                            | Royalty                                                                       | 11 |

----

| ARTICLE      VII  RIGHTS AND OBLIGATIONS DURING THE OPTION    PERIOD | 12                                                                                     |
|--------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| 7.1                                                                            | Manager      During Option Period                                                      | 12 |
| 7.2                                                                            | Management      Committee                                                              | 12 |
| 7.3                                                                            | Water      Treatment Facility                                                          | 12 |
| 7.4                                                                            | Reports      During Option Period                                                      | 13 |
| 7.5                                                                            | Transferring      Interests in Property and Dealing With Unpatented Mining      Claims | 13 |
| 7.6                                                                            | Permit      Obligations of TCM During Option Period                                    | 13 |
| 7.7                                                                            | Access      to Property During Option Period                                           | 13 |
| 7.8                                                                            | Maintenance      of Property During Option Period                                      | 13 |
| 7.9                                                                            | Management      of Existing Underground Mine Conditions During Exploration             | 14 |
| 7.10                                                                           | Indemnification      of Manager During Option Period                                   | 14 |
| 7.11                                                                           | Programs      and Budgets                                                              | 15 |
| 7.12                                                                           | Presentation      of Programs and Budgets                                              | 15 |
| 7.13                                                                           | Review      and Adoption of Proposed Programs and Budgets                              | 15 |
| 7.14                                                                           | Budget      Overruns; Program Changes                                                  | 16 |
| 7.15                                                                           | Assignment      During Option Period                                                   | 16 |
| 7.16                                                                           | Other      Provisions                                                                  | 16 |
| PART      III  THE JOINT VENTURE PERIOD                              | 16                                                                                     |
| ARTICLE      VIII  JOINT VENTURE                                     | 16                                                                                     |
| 8.1                                                                            | Purpose                                                                                | 16 |
| 8.2                                                                            | Manager                                                                                | 16 |
| 8.3                                                                            | Initial      Participating Interests and Contributions                                 | 17 |
| 8.4                                                                            | Changes      in Participating Interests                                                | 17 |
| 8.5                                                                            | Deemed      Expenditures                                                               | 17 |
| 8.6                                                                            | Conversion      of Minority Interest.                                                  | 18 |
| 8.7                                                                            | Continuing      Liabilities Upon Adjustments of Participating Interests                | 19 |
| 8.8                                                                            | Documentation      of Adjustments to Participating Interests                           | 19 |
| 8.9                                                                            | Grant      of Lien and Security Interest                                               | 19 |
| 8.10                                                                           | Subordination      of Interests                                                        | 20 |
| 8.11                                                                           | Indemnification      of Manager                                                        | 20 |
| 8.12                                                                           | Holding      of Property                                                               | 20 |
| 8.13                                                                           | Holding      of Joint Venture Property                                                 | 20 |
| 8.14                                                                           | Management      Committee                                                              | 20 |
| 8.15                                                                           | Water      Treatment Facility                                                          | 21 |

----

| ARTICLE      IX  PROGRAMS AND BUDGETS                                                              | 21                                                                                      |
|--------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| 9.1                                                                                                          | Operations      Pursuant to Programs and Budgets                                        | 21 |
| 9.2                                                                                                          | Presentation      of Programs and Budgets                                               | 21 |
| 9.3                                                                                                          | Review      and Adoption of Proposed Programs and Budgets                               | 21 |
| 9.4                                                                                                          | Election      to Participate                                                            | 23 |
| 9.5                                                                                                          | Recalculation      or Restoration of Reduced Interest Based on Actual      Expenditures | 24 |
| 9.6                                                                                                          | Budget      Overruns; Program Changes                                                   | 25 |
| 9.7                                                                                                          | Emergency      or Unexpected Expenditures                                               | 25 |
| ARTICLE      X  ACCOUNTS AND SETTLEMENTS                                                           | 26                                                                                      |
| 10.1                                                                                                         | Monthly      Statements and Applications of this ARTICLE                                | 26 |
| 10.2                                                                                                         | Cash      Calls                                                                         | 26 |
| 10.3                                                                                                         | Failure      to Meet Cash Calls                                                         | 26 |
| 10.4                                                                                                         | Cover      Payment                                                                      | 26 |
| 10.5                                                                                                         | Remedies                                                                                | 26 |
| 10.6                                                                                                         | Audits                                                                                  | 29 |
| ARTICLE      XI  DISPOSITION OF PRODUCTION                                                         | 30                                                                                      |
| 11.1                                                                                                         | Purchase      and Sale of Products                                                      | 30 |
| ARTICLE      XII  SUPPLEMENTAL BUSINESS AGREEMENT                                                  | 31                                                                                      |
| 12.1                                                                                                         | Supplemental      Business Agreement                                                    | 31 |
| ARTICLE      XIII  TRANSFER OF INTEREST; PREEMPTIVE RIGHT                                          | 32                                                                                      |
| 13.1                                                                                                         | General                                                                                 | 32 |
| 13.2                                                                                                         | Limitations      on Free Transferability                                                | 32 |
| PART      IV  PROVISIONS APPLICABLE TO BOTH  OPTION period AND      JOINT VENTURE PERIOD | 34                                                                                      |
| ARTICLE      XIV  MANAGEMENT COMMITTEE                                                             | 34                                                                                      |
| 14.1                                                                                                         | Meetings      of Management Committee                                                   | 34 |
| 14.2                                                                                                         | Action      Without Meeting in Person                                                   | 35 |
| 14.3                                                                                                         | Matters      Requiring Approval                                                         | 35 |
| ARTICLE      XV  MANAGER                                                                           | 35                                                                                      |
| 15.1                                                                                                         | Powers      and Duties of Manager                                                       | 35 |
| 15.2                                                                                                         | Standard      of Care                                                                   | 39 |
| 15.3                                                                                                         | Resignation;      Deemed Offer to Resign                                                | 40 |
| 15.4                                                                                                         | Administrative      Charges and Services Agreement                                      | 41 |
| 15.5                                                                                                         | Transactions      With Affiliates                                                       | 41 |

----

| ARTICLE      XVI  WITHDRAWAL AND TERMINATION                                                   | 41                                                                      |
|----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
| 16.1                                                                                                     | Termination                                                             | 41 |
| 16.2                                                                                                     | Withdrawal                                                              | 41 |
| 16.3                                                                                                     | Continuing      Obligations and Environmental Liabilities               | 42 |
| 16.4                                                                                                     | Disposition      of Assets on Termination                               | 42 |
| 16.5                                                                                                     | Non-Compete      Covenants                                              | 42 |
| 16.6                                                                                                     | Right      to Data After Termination                                    | 42 |
| 16.7                                                                                                     | Continuing      Authority                                               | 42 |
| ARTICLE      XVII  ACQUISITIONS WITHIN AREA OF INTEREST                                        | 43                                                                      |
| 17.1                                                                                                     | General                                                                 | 43 |
| 17.2                                                                                                     | Notice      to Non-Acquiring Party                                      | 43 |
| 17.3                                                                                                     | Election      to Acquire                                                | 43 |
| 17.4                                                                                                     | Election      to Acquire Not Exercised                                  | 44 |
| ARTICLE      XVIII  ABANDONMENT AND SURRENDER OF PROPERTIES                                    | 44                                                                      |
| 18.1                                                                                                     | Abandonment      and Surrender of Property - Option Period              | 44 |
| 18.2                                                                                                     | Abandonment      and Surrender of Property – Joint Venture Period | 44 |
| ARTICLE      XIX  DISPUTES                                                                     | 45                                                                      |
| 19.1                                                                                                     | Governing      Law                                                      | 45 |
| 19.2                                                                                                     | Dispute      Resolution                                                 | 45 |
| 19.3                                                                                                     | Mediation                                                               | 45 |
| 19.4                                                                                                     | Arbitration                                                             | 45 |
| ARTICLE      XX  CONFIDENTIALITY, OWNERSHIP,  USE AND DISCLOSURE OF      INFORMATION | 47                                                                      |
| 20.1                                                                                                     | Business      Information                                               | 47 |
| 20.2                                                                                                     | Party      Information                                                  | 47 |
| 20.3                                                                                                     | Permitted      Disclosure of Confidential Business Information          | 48 |
| 20.4                                                                                                     | Disclosure      Required By Law                                         | 48 |
| 20.5                                                                                                     | Permitted      Disclosure                                               | 49 |
| 20.6                                                                                                     | Public      Announcements                                               | 49 |
| ARTICLE      XXI  GENERAL PROVISIONS                                                           | 50                                                                      |
| 21.1                                                                                                     | Notices                                                                 | 50 |
| 21.2                                                                                                     | Currency                                                                | 51 |
| 21.3                                                                                                     | Headings                                                                | 51 |
| 21.4                                                                                                     | Waiver                                                                  | 51 |
| 21.5                                                                                                     | Modification                                                            | 51 |
| 21.6                                                                                                     | Force      Majeure                                                      | 51 |
| 21.7                                                                                                     | Rule      Against Perpetuities                                          | 52 |
| 21.8                                                                                                     | Further      Assurances                                                 | 52 |
| 21.9                                                                                                     | Entire      Agreement; Successors and Assigns                           | 52 |
| 21.10                                                                                                    | Memorandum                                                              | 53 |
| 21.11                                                                                                    | Counterparts                                                            | 53 |

----

----

| A. | USE      owns 100% of certain property in Gunnison County, Colorado, known as the      “Lucky Jack Project” (the “Property”), previously known as the Mt. Emmons      Project, which Property is described in Exhibit  A. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Parties have negotiated the basic terms of an agreement whereby USE will      grant TCM an exclusive option to acquire certain interests in the Property      and provide TCM with the right to conduct exploration and, if justified,      development and mining operations on the  Property. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Parties wish to formalize the terms of their agreement by entering into      this Agreement which defines the relationship of the Parties for two      distinct periods: (1) the Option Period, during which TCM may choose to      make certain expenditures that shall entitle TCM to acquire up to a 50%      interest in the Property; and (2) the Joint Venture Period during which      TCM may enter into a joint venture with USE to have the opportunity to      acquire an additional 25% interest in the  Property. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | to      conduct all permitting studies, work, and governmental submissions to      allow the Property to be explored, developed and if appropriate      produced; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to      conduct Exploration within the Property and Area of    Interest; |
|--------|-----|--------------------------------------------------------------------------|

|   | (c) | to      evaluate the possible Development and Mining of the Property, and, if      justified, to engage in Development andMining; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to      engage in Operations on theProperty; |
|--------|-----|----------------------------------------------|

|   | (e) | to      engage in marketing Products, to the extent provided by this      Agreement; |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (f) | to      complete and satisfy all Environmental Compliance obligations affecting      the Property; and |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (g) | to      perform any other activity necessary, appropriate, or incidental to any of      the foregoing. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (a) | it      is a body corporate duly incorporated and validly existing under the laws      of its incorporating jurisdiction; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | it      has full power and authority to own its property and assets and to carry      on its business and to enter into this  Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | neither      the execution and delivery of this Agreement nor any of the agreements      referred to herein or contemplated hereby shall result in the breach of,      or accelerate the performance required by, any other agreement or      arrangement to which it is a party; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | it      is not subject to any governmental order, judgment, decree, debarment,      sanction or Laws that would preclude the Permitting or implementation of      Operations under this Agreement;and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | this      Agreement has been duly executed and delivered by it and is valid and      binding upon it in accordance with itsterms. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | USE      owns a 100% interest in the Property and the Property is properly      described in Exhibit      A; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (b) | USE      is in exclusive possession of the Property, has good and marketable title      to the patented mining claims which are part of the Property, and has Good      Mining Title to the unpatented lode and millsite claims which are part of      the Property, and has the right to dispose of the Property, or any      interest therein, as contemplated in this  Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | USE      has delivered to or made available for inspection by TCM all Existing Data      in its possession or control, and true and correct copies, to the extent      requested by TCM, of all permits, licenses, leases or other contracts      relating to the Property; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | with      respect to unpatented lode claims and millsite claims located by USE that      are included within the Property, except as set forth in the Title Opinion      and subject      to the paramount title of the United States:  (i) the unpatented      mining claims were properly laid out and monumented; (ii) all required      location and validation work was properly performed; (iii) location      notices and certificates were properly recorded and filed with appropriate      governmental agencies; (iv) all assessment work required to hold the      unpatented mining claims has been or will be performed and all      Governmental Fees have been or will be paid in a manner consistent with      that required of the Manager pursuant to Section 15.1(j) through the      assessment year ending September 1, 2008; (v) all affidavits of assessment      work, evidence of payment of Governmental Fees, and other filings required      to maintain the claims in good standing have been properly and timely      recorded or filed with appropriate governmental agencies; and (vi) USE has      no knowledge of conflicting mining claims from any third      parties.  Nothing in this Section, however, shall be deemed to      be a representation or a warranty that any of the unpatented mining claims      contains a valuable mineraldeposit; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | with      respect to unpatented lode claims and millsite claims not located by USE      but which are included within the Property, except as set forth in the      Title Opinion and subject to the paramount title of the United States: to      the knowledge of USE (i) all assessment work required to hold the      unpatented mining claims has been or will be performed and all      Governmental Fees have been or will be paid in a manner consistent with      that required of the Manager pursuant to Section 15.1(j) through the      assessment year ending September 1, 2008; (ii) all affidavits of      assessment work, evidence of payment of Governmental Fees, and other      filings required to maintain the claims in good standing have been      properly and timely recorded or filed with appropriate governmental      agencies; (iii) the claims are free and clear of Encumbrances or defects      in title; and (iv) USE has no knowledge of conflicting mining      claims.  Nothing in this Section, however, shall be deemed to be      a representation or a warranty that any of the unpatented mining claims      contains a valuable discovery ofminerals; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | solely      with respect to ownership of the Property, since the acquisition of the      Property from Phelps Dodge Corporation and Mt. Emmons Mining Company      (collectively “PD/MEMCO”), there are      no pending or threatened actions, suits, claims or proceedings, and there      have been no previous transactions affecting its interests in the Property      which have not been for fairconsideration; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | except      as to matters otherwise disclosed in writing to TCM prior to the Agreement      Date as set out in Exhibit    E: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | since      the acquisition of the Property from PD/MEMCO activities on the Property      with respect to the Property and its ownership and operation have not been      in violation of any Laws (including without limitation any Environmental      Laws), nor caused or permitted any damage (including Environmental Damage,      as defined below) or impairment to the health, safety, or enjoyment of any      person at or on the Property or in the general vicinity of the      Property; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | since      the acquisition of the Property from PD/MEMCO there has been no material      spill, discharge, leak emission, ejection, escape, dumping, or any release      or threatened release of any kind, of any toxic or hazardous substance or      waste (as defined by any applicable Laws) from, on, in, or under the      Property or into the environment, except releases permitted or otherwise      authorized by applicable Laws; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | USE      has not received inquiry from or notice of a pending investigation from      any governmental agency or of any administrative or judicial proceeding      concerning the violation of anyLaws; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | USE      has no interest in any mineral interest located within two miles of the      outermost boundary of the Property, with the exception of the Property      itself; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | since      the acquisition of the Property from PD/MEMCO, the water treatment      facility (the “Facility”) located on      the Property at all times has been operated within the terms of any and      all permits and licenses that it is required to be operating under and has      been operated in accordance with all applicable  Laws; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | except      for patented land within the exterior boundaries of the Property, and      except as set forth in the Title Opinion all of the land      within the Property is covered by at least one mining or millsite claim of      the correct nature for the deposit being located or the use being      contemplated (e.g., a lode claim was      used to locate a lode deposit, a placer claim was used to locate a placer      deposit, and a millsite claim was used to locate the ground for mine      facilities) which the mining claim records of the United States Department      of Interior, Bureau of Land Management (LR-2000 system) show as being an      “active” claim as of August 13,2008; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | except      for the Permitted Encumbrances, the Property is clear of all      Encumbrances; |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (j) | no      consent or approval of any third party or governmental agency is required      for the execution, delivery or performance of this Agreement by USE or the      transfer or acquisition of any interest in the Property;    and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | no      proceedings are pending for and USE is not aware of any basis for the      institution of any proceedings leading to the dissolution or winding-up of      USE or the placing of USE into bankruptcy or subject to any other laws      governing the affairs of insolventpersons. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

0

----

|   | (a) | On      the Agreement Date, TCM shall pay USE $500,000 as consideration for the      Option.  Such amount shall be      non-refundable.  However, such amount shall be credited toward      the Expenditures required under Section 6.1(a)(i)(A) if TCM incurs such      Expenditures in accordance with Section  6.1(a)(i)(A). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Additionally,      on January 1, 2009, and on January 1 each year thereafter up to and      including January 1, 2014 (i.e., for a period of six years), TCM shall pay      USE $1,000,000 (i.e., $6,000,000 over the six-year      period).  Such payments shall be credited toward the      Expenditures required under Section6.1. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | USE      grants to TCM the exclusive option (the “Option”) to acquire up      to an undivided 50% interest in the Property (in two stages as detailed in      Section 6.2) in exchange for incurring Expenditures totaling      $50,000,000.  TCM, in its sole discretion, may exercise the      Option according to the following requirements and    schedule: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | At      any time before but no later than December 31, 2008, TCM shall incur at      least $2,500,000 in Expenditures on or related to the      Property.  If TCM incurs such Expenditures, the $500,000      consideration provided under Section 5.1(a) shall be credited toward this      amount. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | At      any time before but no later than December 31, 2009, TCM shall incur at      least $5,000,000 in additional Expenditures (for a minimum aggregate of      $7,500,000) on or related to theProperty. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (C) | At      any time before but no later than December 31, 2010, TCM shall incur at      least $5,000,000 in additional Expenditures (for a minimum aggregate of      $12,500,000) on or related to theProperty. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | At      any time before but no later than June 30, 2011, TCM shall incur at least      $2,500,000 in additional Expenditures (for a minimum aggregate of      $15,000,000) on or related to theProperty. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Additional      Project Expenditures.  By July      31, 2018, TCM shall incur additional Expenditures on or related to the      Property in an amount equal to the difference between the total      Expenditures incurred under Section 6.1(a)(i) and the $50,000,000 amount      required to acquire a 50% interest in the  Property. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any      excess Expenditures completed in advance of a due date specified in      Section 6.1(a) shall be carried over and shall qualify, and be accounted      for, as Expenditures completed by the subsequent due      date.  Further, the Expenditure deadlines described above      establish only the maximum period of time within which TCM must make such      Expenditures; nothing in this Agreement will preclude TCM from making, in      its sole discretion, any or all such Expenditures at any time or from time      to time ahead of such deadlines.  In this respect, TCM may, in      its sole discretion, make any or all such Expenditures in advance by      paying any or all of the amounts required under Section 6.1(a) to an      interest bearing escrow account maintained by TCM for the benefit of the      Property.  Such payments shall be referred to as “Advance      Payments.”  If this Agreement is terminated before TCM      acquires any interest in the Property under Section 6.2, USE shall be      entitled to all such Advance Payments and interest, if any, remaining in      escrow.  If this Agreement is terminated after TCM has acquired      an interest in the Property under Section 6.2, all such Advance Payments      and interest, if any, remaining in escrow shall be considered Business      capital.  Such Advance Payments, including interest, may be      withdrawn and applied as necessary only towards future Expenditures by TCM      on or related to the Property; provided, however, such      amounts may not be used to meet other Expenditure requirements of TCM      hereunder or in any way reduce the aggregate Expenditures that TCM must      incur by a deadline in Section 6.1(a) in order to acquire any interest in      the Property. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | TCM      may elect to pay to an interest bearing escrow account on or before a due      date specified in Section 6.1(a) the dollar amount equal to any shortfall      in Expenditures required to be completed by TCM by such due date in lieu      of completing such Expenditures, and such amounts shall thereupon be      deemed to have satisfied such requirement for the completion of      Expenditures by a deadline in Section 6.1(a), as      applicable.  Such payments shall be referred to as “Shortfall      Payments.”  If this Agreement is terminated, USE shall be      entitled to all such Shortfall Payments and interest, if any, remaining in      escrow.  So long as this Agreement remains in effect, such      Shortfall Payments, including interest, may be withdrawn and applied as      necessary only towards future Expenditures by TCM on or related to the      Property; provided,      however, such amounts may not be used to meet other Expenditure      requirements of TCM hereunder or in any way reduce the   |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Upon      TCM incurring at least $15,000,000 in Expenditures as described in Section      6.1(a)(i), TCM may, in its sole discretion, elect to acquire a 15%      interest in the Property upon written notice to USE at any time within      thirty-six months after the last day of the month in which TCM has      incurred the $15,000,000 in Expenditures as described in Section      6.1(a)(i).  (By way of example, if TCM incurs the full      $15,000,000 on August 12, 2010, it would then have thirty-six months from      August 31, 2010, or until August 31, 2013, to exercise its      election.)  Failure by TCM to make such election within the      required thirty-six months shall be deemed to be an election by TCM to      acquire such 15% interest in theProperty. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      TCM incurs the additional Expenditures as described in Section 6.1(a)(ii)      by July 31, 2018 (which amount, combined with the Expenditures incurred      under Section 6.1(a)(i), shall equal $50,000,000), TCM may, in its sole      discretion, elect to acquire an additional 35% (or aggregate 50%) interest      in the Property, with such election being made by written notice to USE      within 30 days after the date of the TCM accounting statement that shows      that TCM has incurred all such Expenditures, and a failure to make such      election shall be deemed to be an election by TCM to acquire such      additional 35% (aggregate 50%) interest in the  Property. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Failure      by TCM to make all Expenditures required under Section 6.1(a)(i) (or      Advance Payments or Shortfall Payments in lieu thereof) by the applicable      due dates for such Expenditures (subject to Section 21.6) shall be deemed      to be a termination of this Agreement by TCM under Section 6.3(b) if,      within 30 days after receipt of written notice from USE regarding such      failure, TCM does not cure suchfailure. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | TCM      may by written notice to USE terminate this Agreement at any time during      the Option Period prior to electing to acquire (pursuant to Section      6.2(a)) a 15% interest in the Property.  Upon such termination,      the provisions of Section 6.4 shall apply; ****. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | TCM      may by written notice to USE terminate this Agreement at any time during      the Option Period after having elected to acquire (pursuant to Section      6.2(a)) a 15% interest in the Property.  Upon such termination,      the provisions of Section 6.4 shall apply.  ****. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Within      six months of electing to acquire a 50% interest in the Property as      provided in Section 6.2(b), TCM shall, in its sole discretion, choose one      of two options: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Form      a Joint Venture on the terms set out in PART III;  or |
|--------|-----|-----------------------------------------------------------------|

|   | (ii) | Form      a Joint Venture on the terms set out in PART III but continue to fund 100%      of all Expenditures on or related to the Property up to an additional      $350,000,000, with the opportunity to acquire up to an additional 25%      interest in the Property (for an aggregate 75% interest) upon incurring      such additional $350,000,000 (which amount, combined with the initial      $50,000,000 in Expenditures under Section 6.1(a), totals      $400,000,000).  Upon incurring $70,000,000 in additional      Expenditures pursuant to this Section 6.5(a)(ii) (which amount, combined      with the initial $50,000,000 in Expenditures under Section 6.1(a), totals      $120,000,000), TCM’s interest in the Property shall increase by 2.5% to      52.5%. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | If      TCM elects to proceed under Section 6.5(a)(ii), then TCM shall reimburse      USE for any Expenditures incurred by USE between the time that TCM elects      to acquire a 50% interest in the Property as provided under Section 6.2(b)      and the time that TCM elects to proceed under Section 6.5(a)(ii), and any      such reimbursements shall count towards TCM’s Expenditure obligations      under Section 6.5(a)(ii).  At any time prior to incurring the      entire $350,000,000 required to earn an additional 25% interest in the      Property under Section 6.5(a)(ii), TCM may in its sole discretion      determine that upon the beginning of the next Program and Budget adopted      pursuant to ARTICLE IX it shall cease funding 100% of all Expenditures on      or related to the Property and the Parties shall thereafter share such      Expenditures in proportion to their respective Participating Interests;      provided,      however, TCM shall provide written notice to USE of such decision      at least 90 days prior to the expiration of the current Program and      Budget. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Subject      to Section 6.6(b), Section 8.6(a) and the Permitted Encumbrances, any      interest in the Property that TCM acquires under this Agreement shall not      be subject to any overridingroyalty. |
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|   | (b) | TCM      shall pay any Production Royalty (as defined under the **** to the Grantee (as      defined under the ****) or any      successor-in-interest to the Grantee as may be required under the ****.  Any      and all such Production Royalty payments, plus administrative costs and      third party costs necessarily incurred by TCM in relation thereto, for a      given month shall be offset against the total amount payable by TCM to USE      (based on the Final Price as defined in Section 11.1) pursuant to ARTICLE      XI for that same month; provided, however, to      the extent that Production Royalty payments and related administrative      costs and third party costs for a given month exceed the total amount      payable by TCM to USE pursuant to ARTICLE XI for that same month, TCM      shall bear that excess amount entirely without compensation or      reimbursement from USE. |
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|   | (a) | The      transfer of any interest in the Property from USE to TCM shall be effected      through a special warranty deed substantially in the form of that provided      in Exhibit J. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | TCM      and USE shall cooperate and do all things mutually determined to be      necessary or advisable to: |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (i) | convert      any unpatented mining claims contained in the Property to unpatented      millsite claims; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

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|   | (ii) | amend      or abandon any unpatented claims that overlap with other unpatented claims      as set out in the Title Opinion, |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Indemnification of      Manager.  During the Option Period, USE and TCM shall in      equal proportion mutually hold harmless, release, indemnify and defend TCM      (including TCM’s Affiliates and their respective directors, officers,      employees, agents and consultants) from and against any and all claims,      demands, liabilities or losses (including legal fees) arising from or      relating to TCM’s acts as Manager, except to the extent that such claims,      demands, liabilities or losses arise from TCM’s gross negligence or      willful misconduct. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Indemnification of TCM      by USE for Pre-Existing Conditions.  Until TCM elects to      acquire an interest in the Property pursuant to Section 6.2, USE shall be      solely responsible for and shall hold harmless, release, indemnify and      defend TCM (including TCM’s Affiliates and their respective directors,      officers, employees, agents and consultants) from and against any and all      claims, demands, liabilities or losses (including legal fees) arising from      or relating to conditions on the Property in existence as of the date of      this Agreement, including Environmental Liabilities and Environmental      Damage, except that USE’s duty to hold harmless, release, indemnify and      defend TCM (including TCM’s Affiliates and their respective directors,      officers, employees, agents and consultants) from and against such claims,      demands, liabilities or losses shall be proportionately reduced to the      extent, if any, that such claims, demands, liabilities or losses are      caused or aggravated by TCM’s activities on the Property, either as      Manager or as a Party to this Agreement.  The indemnification of      TCM by USE pursuant to this Section 7.10(b) shall cease and be of no      further effect at the time that TCM elects to acquire an interest in the      Property pursuant to Section 6.2.  At the time that TCM elects      to acquire an interest in the Property pursuant to Section 6.2, the      Parties shall share liabilities arising from or relating to conditions on      the Property at any time, including Environmental Damage, in equal      proportion, provided, however, that should TCM acquire an interest in the      Property in excess of 50 percent, the Parties shall share liabilities      arising from or relating to conditions on the Property at any time,      including Environmental Liabilities and Environmental Damage, in      proportion to their respective interests in the  Property. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Indemnification of TCM      by USE relating to the Facility.  Until TCM elects to      acquire an interest in the Property pursuant to Section 6.2, USE shall be      solely responsible for and shall hold harmless, release, indemnify and      defend TCM (including TCM’s Affiliates and their respective directors,      officers, employees, agents and consultants) from and against any and all      claims, demands, liabilities or losses (including legal fees) arising from      or relating to the Facility.  The indemnification of TCM by USE      pursuant to this Section 7.10(c) shall cease and be of no further effect      at the time that TCM elects to acquire an interest in the Property      pursuant to Section 6.2.  At the time that TCM elects to acquire      an interest in the Property pursuant to Section 6.2, the Parties shall      share liabilities arising from or relating to the Facility in equal      proportion, provided, however, that should TCM acquire an interest in the      Property in excess of 50 percent, the Parties shall share liabilities      arising from or relating to the Facility in proportion to their respective      interests in the Property. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Within      20 days after submission of a proposed Program and Budget, the Management      Committee must approve, reject or modify the proposed Program and      Budget. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Until      a new Program and Budget is adopted, the Program and Budget from the prior      year shall govern Operations on theProperty. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      no Budget has been adopted within **** after the      expiration of the latest adopted Program and Budget, either USE or TCM may      elect to terminate the Agreement by giving 30 days notice of termination      to the other Parties and complying with the termination procedures      specified in Sections 6.3 and 6.4. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Upon      TCM’s incurring $ 50,000,000 in Expenditures under Section 6.1 and its      electing to acquire a 50% interest in the Property under Section 6.2 and      the formation of the Joint Venture pursuant to Section 6.5(a), the JV      Participants shall have the following initial Participating      Interests: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b) | If      TCM elects under Section 6.5(a)(ii) to fund 100% of all Expenditures on or      related to the Property, TCM’s Participating Interest shall increase (and      USE’s Participating Interest shall correspondingly decrease) according to      the provisions of Section6.5(a)(ii). |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Subject      to TCM’s election to fund 100% of all Expenditures in accordance with      Sections 6.5(a)(ii), the JV Participants shall contribute funds to adopted      Programs and Budgets in proportion to their respective Participating      Interests. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | upon      withdrawal or deemed withdrawal as provided in Section 8.6, Section      10.5(b)(ii) and ARTICLE XIV; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (b) | upon      an election by either JV Participant pursuant to Section 9.4 to contribute      less to an adopted Program and Budget than the percentage equal to its      Participating Interest, or to contribute nothing to an adopted Program and      Budget; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in      the event of default by either JV Participant in making its agreed-upon      contribution to an adopted Program and Budget, followed by an election by      the other JV Participant to invoke any of the remedies in Section      9.4; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | upon      Transfer by either JV Participant of part or all of its Participating      Interest in accordance with ARTICLE XIII;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | upon      acquisition by either JV Participant of part or all of the Participating      Interest of the other JV Participant, however  arising; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Subject      to Section 8.5(c), upon the formation of a Joint Venture hereunder for the      purpose of calculating dilution before the presentation of the first      Program and Budget after the formation of the Joint    Venture: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | TCM’s      deemed expenditures to the Joint Venture shall be its initial      Participating Interest under Section 8.3(a) multiplied by its aggregate      actual Expenditures incurred prior to the formation of the Joint Venture;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | USE’s      deemed expenditures to the Joint Venture shall be its initial      Participating Interest under Section 8.3(a) multiplied by TCM’s aggregate      actual Expenditures incurred prior to the formation of the Joint      Venture. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | After      the presentation of the first Program and Budget after the formation of      the Joint Venture, and subject to Section 8.5(c), the provisions of      Section 8.6, 9.4, 9.5 and 10.5 shall control the calculation of interests      for dilution. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (c) | If      TCM elects to fund 100% of all Expenditures under Section 6.5(a)(ii), then      the provisions of Section 8.6, 9.4, 9.5 and 10.5 shall not apply, and USE      shall not be subject to dilution, until such time as TCM has earned a 75%      interest pursuant to Section 6.5(a)(ii) or, prior to earning such 75%      interest, has ceased funding 100% of all Expenditures on or related to the      Property as provided in Section6.5(b). |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | If      a JV Participant’s Participating Interest becomes less than **** such Participating      Interest shall convert to a **** Net Profits      Interest as provided in Exhibit I and that JV      Participant (the “Reduced      Participant”) shall be deemed to have withdrawn from the Business.      Such relinquished Participating Interest shall be deemed to have accrued      automatically to the other JV Participant.  The Capital Account      of the Reduced Participant shall be transferred to the remaining JV      Participant.  The Reduced Participant shall thereafter have no      further right, title or interest in or to the Assets or under this      Agreement, with the exception of the **** Net Profits      Interest detailed above, and any tax partnership that may have been      created shall dissolve.  In such event, the Reduced Participant      shall execute and deliver an appropriate conveyance of all of its right,      title and interest in and to the Assets to the remaining JV      Participant. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      relinquishment, withdrawal and entitlements for which this Section 8.6      provides shall be effective as of the effective date of the recalculation      under Sections 9.4 or 10.5.  However, if the final adjustment      provided under Section 9.5 for any recalculation under Section 9.4 results      in a Participating Interest of 5% or more:  (i) the      Participating Interest shall be deemed, effective retroactively as of the      first day of the Program Period, to have automatically revested; (ii) the      Reduced Participant shall be reinstated as a JV Participant, with all of      the rights and obligations pertaining thereto; (iii) the right to a Net      Profits Interest under Section 8.6(a) shall terminate; and (iv) the      Manager, on behalf of the JV Participants, shall make any necessary      reimbursements, reallocations of Products, contributions and other      adjustments as provided in Section 9.5(d).  Similarly, if such      final adjustment under Section 9.5 results in a Participating Interest for      either JV Participant of less than **** for a Program      Period as to which the provisional calculation under Section 9.4 had not      resulted in a Participating Interest of less than ****, then such      Participant, at its election within 30 days after notice of the final      adjustment, may contribute an amount resulting in a revised final      adjustment and resultant Participating Interest of ****.  If no      such election is made, such JV Participant shall be deemed to have      withdrawn under the terms of Section 8.6(a) as of the beginning of such      Program Period, and the Manager, on behalf of the JV Participants, shall      make any necessary reimbursements, reallocations of Products,      contributions and other adjustments as provided in Section 9.5(d),      including of any Net Profits Interest to which such JV Participant may be      entitled for such Program Period. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Subject      to Section 8.10, each JV Participant may grant to the other JV Participant      a lien upon and a security interest in its Participating Interest,      including all of its right, title and interest in the Assets, whenever      acquired or arising, and the proceeds from and accessions to the      foregoing. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      liens and security interests granted by Section 8.9(a) shall secure every      obligation or liability of the JV Participant granting such lien or      security interest created under this Agreement, including the obligation      to repay a Cover Payment in accordance with Section 10.4.  Each      JV Participant hereby agrees to take all action necessary to perfect such      lien and security interest and hereby appoints the other JV Participant      its attorney-in-fact to execute, file and record all financing statements      and other documents necessary to perfect or maintain such lien and      security interest. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | From      the date of the formation of the Joint Venture, during the term of the      Joint Venture, the Property must be transferred to and held in the names      of the JV Participants in proportion to their respective Participating      Interests from time to time. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each      JV Participant must promptly at its own cost do all things (including      executing and if necessary delivering all documents) necessary or      desirable to give full effect to Section 8.12(a) or the formation of the      Joint Venture. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | When      TCM bears all operating and financing costs of the Joint Venture pursuant      to Section 6.5(a)(ii) or when TCM holds a Participating Interest greater      than 50%, within 30 days after submission of a proposed Program and      Budget, each JV Participant shall submit in writing to the Management      Committee: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | notice      that the JV Participant approves any or all of the components of the      proposed Program and Budget; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (ii) | modifications      proposed by the JV Participant to the components of the proposed Program      and Budget; or |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

|   | (iii) | notice      that the JV Participant rejects any or all of the components of the      proposed Program and Budget. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------|

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|   | (b) | When      TCM and USE each hold a Participating Interest of 50% and TCM is not      bearing all operating and financing costs of the Joint Venture pursuant to      Section 6.5(a)(ii) (in other words, the Parties are each funding Programs      and Budgets in proportion to their respective Participating Interests),      within 30 days after submission of a proposed Program and Budget, each JV      Participant shall submit in writing to the Management      Committee: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | notice      that the JV Participant approves any or all of the components of the      proposed Program and Budget; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (ii) | modifications      proposed by the JV Participant to the components of the proposed Program      and Budget; or |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

|   | (iii) | notice      that the JV Participant rejects any or all of the components of the      proposed Program and Budget. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------|

|   | (a) | By      notice to the Management Committee within 20 days after the final vote      adopting a Program and Budget, and notwithstanding its vote concerning      adoption of a Program and Budget, a JV Participant may elect to      participate in the approved Program andBudget: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (i) | in      proportion to its respective Participating Interest.  If USE      elects to participate in proportion to its respective Participating      Interest, USE may request that TCM bear the initial cost and receive      reimbursement of such amount, plus interest at a rate to be agreed upon by      the Parties, out of production.  The election to bear such      initial costs is within the sole discretion of TCM, which shall accept or      deny the request within 10 Business Days of the request by USE, and is      subject to the Parties’ agreement on the interest rate to be applied to      such amounts borne by TCMhereunder; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in      some lesser amount than its respective Participating Interest,      or |
|--------|------|--------------------------------------------------------------------------------|

|   | (iii) | not      at all. |
|--------|-------|------------------|

|   | (b) | In      case of an election under Sections 9.4(a)(ii) or 9.4(a)(iii), its      Participating Interest shall be recalculated as provided in Section 9.4(c)      below, with dilution effective as of the first day of the Program Period      for the adopted Program and Budget.  If a JV Participant fails      to so notify the Management Committee of the extent to which it elects to      participate, the JV Participant shall be deemed to have elected to      contribute to such Program and Budget in proportion to its respective      Participating Interest as of the beginning of the Program      Period. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      a JV Participant elects to contribute to an adopted Program and Budget      some lesser amount than in proportion to its respective Participating      Interest, or not at all, and the other JV Participant elects to fund all      or any portion of the deficiency, the Participating Interest of the      Reduced Participant shall be provisionally recalculated as      follows: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | for      an election made before Payout, by dividing: (A) the sum of (1) the total      of all of the Reduced Participant’s contributions under Section 8.3(b),      and (2) the amount, if any, the Reduced Participant elects to contribute      to the adopted Program and Budget by (B) the sum of (1) and (2) above for      both Participants, and then multiplying the result by one hundred;      or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | for      an election made after Payout, by reducing its Participating Interest in      an amount equal to two times the amount by which it would have been      reduced under Section 9.4(a)(i) if such election were made before      Payout. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (d) | Whenever      the Participating Interests are recalculated pursuant to this Section 9.4,      (i) the Equity Accounts of both JV Participants shall be revised to bear      the same ratio to each other as their recalculated Participating      Interests; and (ii) the portion of Capital Account attributable to the      reduced Participating Interest of the reduced JV Participant shall be      transferred to the other JVParticipant. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | If      a Participant makes an election under Sections 9.4(a)(ii) or 9.4(a)(iii),      then within 30 days after the conclusion of such Program and Budget, the      Manager shall report the total amount of money expended plus the total      obligations incurred by the Manager for such  Budget. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      the Manager expended funds or incurred obligations that were more or less      than the adopted Budget, the Participating Interests shall be recalculated      pursuant to Section 9.4(b) by substituting each JV Participant’s actual      contribution to the adopted Budget for that JV Participant’s estimated      contribution at the time of the reduced JV Participant’s election under      Section 9.4(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      the Manager expended funds or incurred obligations of less than 80% of the      adopted Budget, within 30 days of receiving the Manager’s report on      Expenditures, the reduced JV Participant may notify the other JV      Participant of its election to reimburse the other JV Participant for the      difference between any amount contributed by the reduced JV Participant to      such adopted Program and Budget and the reduced JV Participant’s      proportionate share (at the reduced JV Participant’s former Participating      Interest) of the actual amount expended or incurred for the Program, plus      interest at two percentage points above the Prime Rate.  The      reduced JV Participant shall deliver the appropriate amount (including      interest) to the other JV Participant with such notice.  Failure      of the reduced JV Participant to so notify and tender such amount shall      result in dilution occurring in accordance with this ARTICLE XI and shall      bar the reduced JV Participant from its rights under this Section 9.5(c)      concerning the relevant adopted Program and  Budget. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (d) | All      recalculations under this Section 9.5 shall be effective as of the first      day of the Program Period for the Program and Budget.  The      Manager, on behalf of both JV Participants, shall make such      reimbursements, reallocations of Products, contributions and other      adjustments as are necessary so that, to the extent possible, each JV      Participant shall be placed in the position it would have been in had      their Participating Interests as recalculated under this Section been in      effect throughout the Program Period for such Program and      Budget.  If the JV Participants are required to make      contributions, reimbursements or other adjustments pursuant to this      Section, the Manager shall have the right to purchase or sell a JV      Participant’s share of Products in the same manner as under Section      11.1and to apply the proceeds of such purchase or sale to satisfy that JV      Participant’s obligation to make such contributions, reimbursements or      adjustments. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (e) | Whenever      the Participating Interests are recalculated pursuant to this Section 9.5,      (i) the JV Participants’ Equity Accounts shall be revised to bear the same      ratio to each other as their recalculated Participating Interests; and      (ii) the portion of Capital Account attributable to the reduced      Participating Interest of the reduced JV Participant shall be transferred      to the other JV Participant. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|   | (a) | The      defaulting JV Participant grants to the non-defaulting JV Participant a      power of sale as to all or any portion of its interest in any Assets or in      its Participating Interest that is subject to the lien and security      interest granted in Section 8.9 (whether or not such lien and security      interest has been perfected), upon a default under Sections 10.3 or      10.4.  Such power shall be exercised in the manner provided by      applicable Law or otherwise in a commercially reasonable manner and upon      reasonable notice.  If the non-defaulting JV Participant elects      to enforce the lien or security interest pursuant to the terms of this      Section, the defaulting JV Participant shall be deemed to have waived any      available right of redemption, any required valuation or appraisal of the      secured property prior to sale, any available right to stay execution or      to require a marshalling of assets, and any required bond in the event a      receiver is appointed, and the defaulting JV Participant shall be liable      for any deficiency. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      non-defaulting JV Participant may elect to have the defaulting JV      Participant’s Participating Interest diluted or eliminated as      follows: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | For      a default occurring before Payout relating to a Program and Budget      covering in whole or in part Permitting or Exploration Operations, the      reduced JV Participant’s Participating Interest shall be recalculated by      dividing: (A): (1) the total of all of the reduced JV Participant’s      contributions under Section 8.3(b) and (2) the amount, if any, the reduced      JV Participant contributed to the adopted Program and Budget with respect      to which the default occurred by (B) the sum of (1) and (2) above for both      JV Participants, and then multiplying the result by one      hundred.  For such a default occurring after Payout, the reduced      JV Participant’s Participating Interest shall be reduced in an amount      equal to two times the amount by which it would have been reduced if such      default had occurred before Payout.  For such a default, whether      occurring before or after Payout, the Participating Interest shall then be      further reduced for a default relating exclusively to an Exploration      Program and Budget by multiplying the recalculated Participating Interest      by the following percentage: 150%. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | For      a default relating to a Program and Budget covering in whole or in part      Development or Mining, at the non-defaulting JV Participant’s election,      the defaulting JV Participant shall be deemed to have withdrawn and to      have automatically relinquished its interest in the Assets to the      non-defaulting JV Participant; provided, however, the      defaulting Participant shall have the right to receive only from **** of Net Profits, if      any, and not from any other source, an amount up to **** of the defaulting      JV Participant’s Equity Account balance at the time of such      default.  Upon receipt of such amount the defaulting JV      Participant shall thereafter have no further right, title or interest in      the Assets, but shall remain liable to the extent provided in Section      8.7. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (iii) | Dilution      under this Section 10.5(b) shall be effective as of the date of the      original default, and Section 9.5 shall not apply.  The amount      of any Cover Payment under Section 10.4 and interest thereon, or any      interest accrued in accordance with Section 10.3, shall be deemed to be      amounts contributed by the non-defaulting JV Participant, and not as      amounts contributed by the defaulting JV  Participant. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Whenever      the Participating Interests are recalculated pursuant to this Section      10.5(b), (A) the Equity Accounts of both JV Participants shall be adjusted      to bear the same ratio to each other as their recalculated Participating      Interests; and (B) the portion of Capital Account attributable to the      reduced Participating Interest of the reduced JV Participant shall be      transferred to the other JVParticipant. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      a JV Participant has defaulted in meeting a cash call or repaying a loan,      and if the non-defaulting JV Participant has made a Cover Payment, then,      in addition to a reduction in the defaulting JV Participant’s      Participating Interest effected pursuant to Section 10.5(b), the      non-defaulting JV Participant shall have the right, if the indebtedness      arising from a default or Cover Payment is not discharged within 10 days      of the default and upon not less than 30 days advance notice to the      defaulting JV Participant, to elect to purchase all the right, title, and      interest, whenever acquired or arising, of the defaulting JV Participant      in and to the Assets, including but not limited to its Participating      Interest or a Net Profits Interest, together with all proceeds from and      accessions of the foregoing (collectively the “Defaulting JV Participant’s      Entire Interest”) at a purchase price equal to **** of the fair market      value thereof as determined by a qualified independent appraiser appointed      by the non-defaulting JV Participant.  If the defaulting JV      Participant conveys notice of objection to the person so appointed within      10 days after receiving notice thereof, then an independent and qualified      appraiser shall be appointed by the joint action of the appraiser      appointed by the non-defaulting JV Participant and a qualified independent      appraiser appointed by the defaulting JV Participant; provided, however, that      if the defaulting JV Participant fails to designate a qualified      independent appraiser for such purpose within 10 days after giving notice      of such objection, then the person originally designated by the      non-defaulting JV Participant shall serve as the appraiser; provided further, that      if the appraisers appointed by each of the JV Participants fail to appoint      a third qualified independent appraiser within 5 days after the      appointment of the last of them, then an appraiser shall be appointed by a      judge of a court of competent jurisdiction in the state in which the      Assets are situated upon the application of either JV      Participant.  There shall be withheld from the purchase price      payable, upon transfer of the Defaulting Participant’s Entire Interest,      the amount of any Cover Payment under Section 10.4 and unpaid interest      thereon to the date of such transfer, or any unpaid interest accrued in      accordance with Section 14.3 to the date of such transfer.  Upon      payment of such purchase price, the defaulting JV Participant shall be      deemed to have relinquished all of the Defaulting JV Participant’s Entire      Interest to the non-defaulting Participant, but shall remain liable to the      extent provided in Section 8.7. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | During      the Joint Venture Period, within 60 days after the end of each calendar      year an audit shall be completed by certified public accountants selected      by, and independent of, the Manager.  The audit shall be      conducted in accordance with GAAP and shall cover all books and records      maintained by the Manager pursuant to this Agreement, all Assets and      Encumbrances, and all transactions and Operations conducted during such      calendar year, including production and inventory records, Expenditures      and all costs for which the Manager sought reimbursement under this      Agreement, together with all other matters customarily included in such      audits.  All written exceptions to and claims upon the Manager      for discrepancies disclosed by such audit shall be made not more than 3      months after receipt of the audit report, unless either JV Participant      elects to conduct an independent audit pursuant to Section 10.6(b) which      is ongoing at the end of such 3 month period, in which case such      exceptions and claims may be made within the period provided in Section      10.6(b).  Failure to make any such exception or claim within      such period shall mean the audit is deemed to be correct and binding upon      the Participants.  The cost of all audits under this subsection      shall be charged to the BusinessAccount. |
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|   | (b) | Notwithstanding      the annual audit conducted by certified public accountants selected by the      Manager, each JV Participant shall have the right to have an independent      audit of all Business books, records and accounts, including all charges      to the Business Account.  This audit shall review all issues      raised by the requesting JV Participant, with all costs borne by the      requesting JV Participant.  The requesting JV Participant shall      give the other JV Participant 30 days’ prior written notice of such      audit.  Any audit conducted on behalf of either JV Participant      shall be made during the Manager’s normal business hours and shall not      interfere with Operations.  Neither JV Participant shall have      the right to audit records and accounts of the Business relating to      transactions or Operations more than 24 months after the calendar year      during which such transactions, or transactions related to such      Operations, were charged to the Business Account.  All written      exceptions to and claims upon the Manager for discrepancies disclosed by      such audit shall be made not more than 3 months after completion and      delivery of such audit, or they shall be deemed  waived. |
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|   | (a) | Price.  The      price of all Products sold pursuant to this Section 11.1 (the “Price)      shall be calculated as follows: ****.  The      Price shall be calculated and expressed in accuracy to three decimal      places. |
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|   | (b) | Sulfide Discount Cap      and Floor.  From the Agreement Date until January 1,      2014, the Sulfide Discount shall be no greater than **** (the “Discount      Cap”) and no less than **** (the “Discount      Floor”).  On January 1, 2014, and every five years thereafter,      the Discount Cap and the Discount Floor shall be adjusted so that they      increase or decrease to reflect changes in the Gross Domestic Product      (“GDP”) published by the United States Department of Commerce, Bureau of      Economic Analysis, using a GDP implicit price deflator (“GDP Deflator”)      measured against the first year of the new five year period, and the first      year of the last five year period. |
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|   | (c) | Changes in      Indices.  If the MW Price or the GDP Deflator has been      permanently discontinued or materially modified, the Parties shall agree      to a substitute index (being an index or price series or combination of      indices or price series as close as possible in effect to the discontinued      index or indices, with only such adjustments thereto as may be necessary      to reflect more closely the movements of the index which has been      discontinued).  If they Parties cannot agree to a substitute      index, then the dispute shall be resolved by arbitration pursuant to      Section 19.4 of this Agreement.  During the pendency of the      dispute, the Price shall be set by the arbitrator, and subject to      adjustment and reimbursement or setoff upon resolution of the      dispute. |
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|   | (d) | Point of      Sale.  The purchased Product shall be molybdenum      concentrate, with payable metal equal to **** of contained      molybdenum in the concentrate.  The point of sale shall be FCA      mine site as loaded on a truck for shipment as arranged by      TCM.  TCM shall covenant to use its commercially reasonable      efforts to deliver Product pursuant to this Section 11.1, and, except for      commercially reasonable purposes, shall not deliver from other properties      owned or controlled by TCM in preference to this mine  site. |
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|   | (e) | Payment      Terms.  Payments made during a calendar month for      delivery of Product FCA mine site (“Delivery”) during that month shall be      paid at the Price calculated for the preceding month (the “Provisional      Price”).  TCM shall pay USE the Provisional Price within 20 days      of Delivery.  ****.  Final      payment between TCM and USE shall be made promptly upon determination of      the Final Price. |
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|   | (f) | Audit      Rights.  USE shall have the right, at its expense, to      engage an independent third party to audit the procedures and inspect the      equipment by which TCM weighs and assays Product for Delivery upon giving      reasonable notice to TCM, provided that (a) such independent third party      auditor is reputable, (b) in any such audit, USE shall not be obligated to      disclose to TCM any confidential information relating to any such      transaction, and (c) in any such audit, TCM shall not be obligated to      disclose to the independent auditor any confidential information unless      and until such auditor first agrees with TCM to be bound by a      confidentiality agreement on terms and conditions reasonably satisfactory      to TCM.  USE shall give TCM at least one month’s notice of its      intent to audit and appoint independent auditors.  If such      independent auditor finds a material error or material incorrectness in      the procedures or equipment by which TCM weighs and assays Product for      Delivery, TCM shall reimburse USE for the cost of that    audit. |
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|   | (g) | Assays.  The      Parties shall resolve all disputes concerning assays of Products through      negotiations to the greatest extent possible, and shall make adjustments      to future invoices to reflect such adjustments.  Disputes      concerning assays that cannot be resolved through negotiation shall be      subject to dispute resolution pursuant to Section  19.4. |
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|   | (a) | neither      JV Participant shall Transfer any interest in this Agreement or the Assets      (including, but not limited to, any royalty, profits or other interest in      the Products) except in conjunction with the Transfer of part or all of      its Participating Interest; |
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|   | (b) | no      JV Participant shall Transfer any interest in this Agreement or the      Property until the selling JV Participant offers to the other JV      Participant the opportunity to purchase the portion of the selling JV      Participant’s Participating Interest it intends to sell (“Right of First Refusal”)      at a price chosen by the selling JV Participant.  If the other      JV Participant fails to purchase the Participating Interest within 20      days, the selling JV Participant may proceed with the sale of the      Participating Interest pursuant to this Section. The sale may not be for a      price less than that offered to the non-selling JV      Participant.  No transferee of all or any part of a JV      Participant’s Participating Interest shall have the rights of a JV      Participant unless and until the transferring JV Participant has provided      to the other JV Participant notice of the Transfer and the transferee, as      of the effective date of the Transfer, has committed in writing to assume      and be bound by this Agreement to the same extent as the transferring JV      Participant; |
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|   | (c) | neither      JV Participant shall make a Transfer that shall violate any Law, or      without the consent of the other JV Participant, or result in the      cancellation of any permits, licenses or other similar      authorization; |
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|   | (d) | no      Transfer permitted by this Article XIII shall relieve the transferring JV      Participant of its share of any liability, whether accruing before or      after such Transfer, which arises out of Operations conducted prior to      such Transfer or exists on the AgreementDate; |
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|   | (e) | neither      JV Participant, without the consent of the other JV Participant, shall      make a Transfer that shall cause termination of the tax partnership      established in Exhibit      C.  If such termination is caused, the transferring JV      Participant shall indemnify the other JV Participant for, from and against      any and all loss, cost, expense, damage, liability or claim therefore      arising from the Transfer, including without limitation any **** received by the      Indemnified JV Participant; |
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|   | (f) | if      the Transfer is the grant of an Encumbrance in a Participating Interest to      secure a loan or other indebtedness of either JV Participant in a bona      fide transaction, other than a transaction approved unanimously by the      Management Committee or Project Financing approved by the Management      Committee, such Encumbrance shall be granted only in connection with such      JV Participant’s financing payment or performance of that JV Participant’s      obligations under this Agreement and shall be subject to the terms of this      Agreement and the rights and interests of the other JV Participant      hereunder (including without limitation under Section      8.10).  Any such Encumbrance shall be further subject to the      condition that the Chargee of such Encumbrance first enters into a written      agreement with the other JV Participant in form satisfactory to the other      JV Participant, acting reasonably, binding upon the Chargee, to the effect      that: |
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|   | (i) | the      Chargee shall not enter into possession or institute any proceedings for      foreclosure or partition of the encumbering JV Participant’s Participating      Interest and that such Encumbrance shall be subject to the provisions of      this Agreement; |
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|   | (ii) | the      Chargee’s remedies under the Encumbrance shall be limited to the sale of      the whole (but only of the whole) of the encumbering JV Participant’s      Participating Interest to the other JV Participant, or, failing such a      sale, at a public auction to be held at least 30 days after prior notice      to the other JV Participant, such sale to be subject to the purchaser      entering into a written agreement with the other JV Participant whereby      such purchaser assumes all obligations of the encumbering JV Participant      under the terms of this Agreement.  The price of any pre-emptive      sale to the other JV Participant shall be the remaining principal amount      of the loan plus accrued interest and related expenses, and such      pre-emptive sale shall occur within 60 days of the Chargee’s notice to the      other JV Participant of its intent to sell the encumbering JV      Participant’s Participating Interest.  Failure of a sale to the      other JV Participant to close by the end of such period, unless failure is      caused by the encumbering JV Participant or by the Chargee, shall permit      the Chargee to sell the encumbering JV Participant’s Participating      Interest at a public sale; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      charge shall be subordinate to any then-existing debt, including Project      Financing previously approved by the Management Committee, encumbering the      transferring JV Participant’s Participating  Interest; |
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|   | (a) | The      Management Committee shall hold regular meetings at least quarterly at a      location to be mutually agreed upon.  The Manager shall give 20      days notice to TCM and USE (both referred to in this ARTICLE XIV as an      “MC Participant”)      of such meetings.  Additionally, either MC Participant may call      a special meeting upon 7 days’ notice to the other MC      Participant.  In case of an emergency, reasonable notice of a      special meeting shall suffice.  There shall be a quorum if at      least one regular member or alternate member representing each MC      Participant is present; provided, however, that      if a MC Participant fails to attend two consecutive properly called      meetings, then a quorum shall exist at the second meeting if the other MC      Participant is represented by at least one appointed member, and a vote of      such MC Participant shall be considered the vote required for the purposes      of the conduct of all business properly noticed even if such vote would      otherwise require unanimity. |
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|   | (b) | If      business cannot be conducted at a regular or special meeting due to the      lack of a quorum, either MC Participant may call the next meeting upon 10      days’ notice to the other MCParticipant. |
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|   |  (c) | Each      notice of a meeting shall include an itemized agenda prepared by the      Manager in the case of a regular meeting or by the MC Participant calling      the meeting in the case of a special meeting, but any matters may be      considered if either MC Participant adds the matter to the agenda at least      5 days before the meeting or with the consent of the other MC      Participant.  The Manager shall prepare minutes of all meetings      and shall distribute copies of such minutes to the other MC Participant      within 10 days after the meeting.  Either MC Participant may      electronically record the proceedings of a meeting with the consent of the      other MC Participant.  The MC Participants shall sign and return      or object to the minutes prepared by the Manager within 30 days after      receipt, and failure to do either shall be deemed acceptance of the      minutes as prepared by the Manager.  The minutes, when signed or      deemed accepted by both MC Participants, shall be the official record of      the decisions made by the Management Committee.  Decisions made      at a Management Committee meeting shall be implemented in accordance with      adopted Programs and Budgets.  If a MC Participant timely      objects to minutes proposed by the Manager, the members of the Management      Committee shall seek, for a period not to exceed 30 days from receipt by      the Manager of notice of the objections, to agree upon minutes acceptable      to both MC Participants.  If the Management Committee does not      reach agreement on the minutes of the meeting within such 30 day period,      the minutes of the meeting as prepared by the Manager together with the      objecting MC Participant’s proposed |
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|   | (a) | The      Manager shall manage, direct and control Operations, and shall prepare and      present to the Management Committee proposed Programs and Budgets as      provided in ARTICLE VII during the Option Period and ARTICLE IX during the      Joint Venture Period. |
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|   | (b) | The      Manager shall implement the decisions of the Management Committee, shall      make all Expenditures necessary to carry out adopted Programs, and shall      promptly advise the Management Committee if it lacks sufficient funds to      carry out its responsibilities under this  Agreement. |
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|   | (c) | The      Manager shall use reasonable efforts to:  (i) purchase or      otherwise acquire all material, supplies, equipment, water, utility and      transportation services required for Operations, such purchases and      acquisitions to be made to the extent reasonably possible on the best      terms available, taking into account all of the circumstances; (ii) obtain      such customary warranties and guarantees as are available in connection      with such purchases and acquisitions; and (iii) keep the Assets free and      clear of all Encumbrances, except any Permitted Encumbrances and those      Encumbrances specifically approved by the Management      Committee. |
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|    | (d) | The      Manager shall:  (i) make or arrange for all payments required by      leases, licenses, permits, contracts and other agreements related to the      Assets; (ii) pay all taxes, assessments and like charges on Operations and      Assets except taxes determined or measured by a JV Participant’s sales      revenue or net income and taxes, including production taxes, attributable      to a JV Participant’s share of Products, and shall otherwise promptly pay      and discharge expenses incurred in Operations; provided, however, if      authorized by the Management Committee, the Manager shall have the right      to contest (in the courts or otherwise) the validity or amount of any      taxes, assessments or charges if the Manager deems them to be unlawful,      unjust, unequal or excessive, or to undertake such other steps or      proceedings as the Manager may deem reasonably necessary to secure a      cancellation, reduction, readjustment or equalization thereof before the      Manager shall be required to pay them, but in no event shall the Manager      permit or allow title to the Assets to be lost as the result of the      nonpayment of any taxes, assessments or like charges; and (iii) do all      other acts reasonably necessary to maintain the  Assets. |
|--------------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The      Manager shall:  (i) apply for all necessary permits, licenses      and approvals; (ii) comply with all Laws; (iii) notify promptly the      Management Committee of any allegations of substantial violation thereof;      and (iv) prepare and file all reports or notices required for or as a      result of Operations.  The Manager shall not be in breach of      this provision if a violation has occurred in spite of the Manager’s good      faith efforts to comply consistent with its standard of care under Section      15.2.  In the event of any such violation, the Manager shall      timely cure or dispose of such violation on behalf of both JV Participants      through performance, payment of fines and penalties, or both, and the cost      thereof shall be charged to the Business  Account. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The      Manager shall prosecute and defend on behalf of the Joint Venture, but      shall not initiate without consent of the Management Committee, any      litigation or administrative proceedings arising out of      Operations.  The non-managing JV Participant shall have the      right to participate if it chooses to participate individually, at its own      expense, in such litigation or administrative proceedings.  The      non-managing JV Participant shall approve in advance any settlement      involving payments, commitments or obligations in excess of one hundred      thousand Dollars ($100,000) in cash orvalue. |
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|   | (g) | The      Manager shall provide insurance for the benefit of the JV Participants as      provided in Exhibit      F or as may otherwise be determined from time to time by the      Management Committee. |
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|   | (h) | The      Manager may dispose of Assets, whether by abandonment, surrender, or      Transfer in the ordinary course of business, except that Property may be      abandoned or surrendered only as provided in ARTICLE      XVIII.  Without prior authorization from the Management      Committee, however, the Manager shall not:  (i) dispose of      Assets in any one transaction (or in any series of related transactions)      having a value in excess of seventy-five thousand Dollars ($75,000); (ii)      enter into any sales contracts or commitments for Product, except as      permitted in Section 11.1; (iii) begin a liquidation of the Business; or      (iv) dispose of all or a substantial part of the Assets necessary to      achieve the purposes of theBusiness. |
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|   | (i) | The      Manager shall have the right to carry out its responsibilities hereunder      through agents, Affiliates and independent  contractors. |
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|   | (j) | The      Manager shall perform or cause to be performed all assessment and other      work and shall pay all Governmental Fees required by Law in order to      maintain the unpatented mining claims, mill sites and tunnel sites      included within the Property.  The Manager shall have the right      to perform the assessment work required hereunder pursuant to a common      plan of exploration and continued actual occupancy of such claims and      sites shall not be required.  The Manager shall not be liable on      account of any determination by any court or governmental agency that the      work performed by the Manager does not constitute the required annual      assessment work or occupancy for the purposes of preserving or maintaining      ownership of the claims, provided that the work done is pursuant to an      adopted Program and Budget and is performed in accordance with the      Manager’s standard of care under Section 15.2.  The Manager      shall timely record with the appropriate county and file with the      appropriate United States agency any required affidavits, notices of      intent to hold and other documents in proper form attesting to the payment      of Governmental Fees, the performance of assessment work or intent to hold      the claims and sites, in each case in sufficient detail to reflect      compliance with the requirements applicable to each claim and      site.  The Manager shall not be liable on account of any      determination by any court or governmental agency that any such document      submitted by the Manager does not comply with applicable requirements,      provided that such document is prepared and recorded or filed in      accordance with the Manager’s standard of care under Section      15.2. |
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|   | (k) | If      authorized by the Management Committee, the Manager may:  (i)      locate, amend or relocate any unpatented mining claim or mill site or      tunnel site, (ii) locate any fractions resulting from such amendment or      relocation, (iii) apply for patents or mining leases or other forms of      mineral tenure for any such unpatented claims or sites, (iv) abandon any      unpatented mining claims for the purpose of locating mill sites or      otherwise acquiring from the United States rights to the ground covered      thereby, (v) abandon any unpatented mill sites for the purpose of locating      mining claims or otherwise acquiring from the United States rights to the      ground covered thereby, (vi) exchange with or convey to the United States      any of the Property for the purpose of acquiring rights to the ground      covered thereby or other adjacent ground, and (vii) convert any unpatented      claims or mill sites into |
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|   | (l) | The      Manager shall keep and maintain all required accounting and financial      records pursuant to the procedures described in Exhibit B and in      accordance with customary cost accounting practices in the mining      industry, and shall ensure appropriate separation of accounts unless      otherwise agreed by the JV Participants.  All accounting      practices and audits shall comply with the GAAP and all reports, reviews      of internal controls, and related activities shall be conducted in      compliance with the requirements of the Sarbanes Oxley Act of      2002. |
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|   | (m) | After      the formation of the Joint Venture, the Manager shall maintain Equity      Accounts for each JV Participant.  Each JV Participant’s Equity      Account shall be credited with the value of such JV Participant’s      contributions under Section 8.3(b).  Each JV Participant’s      Equity Account shall be charged with the cash and the fair market value of      Assets distributed to such JV Participant (net of liabilities assumed by      such JV Participant and liabilities to which such distributed Assets are      subject).  Contributions and distributions shall include all      cash contributions or distributions plus the agreed value (expressed in      dollars) of all in-kind contributions or distributions.  Solely      for purposes of determining the Equity Account balances of the JV      Participants, the Manager shall reasonably estimate the fair market value      of all Products distributed to the JV Participants, and such estimated      value shall be used regardless of the actual amount received by each JV      Participant upon disposition of suchProducts. |
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|   | (n) | The      Manager shall keep the Management Committee advised of all Operations by      submitting in writing to the members of the Management      Committee:  (i) monthly progress reports that include statements      of expenditures and comparisons of such expenditures to the adopted      Budget; (ii) periodic summaries of data acquired; (iii) copies of reports      concerning Operations; (iv) a detailed final report within sixty (60) days      after completion of each Program and Budget, which shall include      comparisons between actual and budgeted expenditures and comparisons      between the objectives and results of Programs; and (v) such other reports      as any member of the Management Committee may reasonably      request.  Subject to ARTICLE XX, at all reasonable times the      Manager shall provide the Management Committee, or other representative of      a JV Participant upon the request of such JV Participant’s member of the      Management Committee, access to, and the right to inspect and, at such      Participant’s cost and expense, copy the Existing Data and all maps, drill      logs and other drilling data, core, pulps, reports, surveys, assays,      analyses, production reports, operations, technical, accounting and      financial records, and other Business Information, to the extent preserved      or kept by the Manager, subject to ARTICLE XX.  In addition, the      Manager shall allow the non-managing JV Participant, at the latter’s sole      risk, cost and expense, and subject to reasonable safety regulations, to      inspect the Assets and Operations at all reasonable times, so long as the      non-managing JV Participant does not unreasonably interfere with      Operations. |
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|   | (o) | The      Manager shall prepare for Management Committee approval an Environmental      Compliance plan for all Operations consistent with the requirements of any      applicable Laws or contractual obligations and shall include in each      Program and Budget sufficient funding to implement the Environmental      Compliance plan and to satisfy the financial assurance requirements of any      applicable Law or contractual obligation pertaining to Environmental      Compliance.  To the extent practical, the Environmental      Compliance plan shall incorporate concurrent reclamation of Property      disturbed by Operations.  The Environmental Compliance plan      shall not be implemented until approved by the Management      Committee. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | The      Manager shall undertake to perform Continuing Obligations when and as      economic and appropriate, whether before or after termination of the      Business.  The Manager shall have the right to delegate      performance of Continuing Obligations to persons having demonstrated skill      and experience in relevant disciplines.  As part of each Program      and Budget submittal, the Manager shall specify in such Program and Budget      the measures to be taken for performance of Continuing Obligations and the      cost of such measures.  The Manager shall keep the other      Participant reasonably informed about the Manager’s efforts to discharge      Continuing Obligations.  Authorized representatives of each      Participant shall have the right from time to time to enter the Property      to inspect work directed toward satisfaction of Continuing Obligations and      audit books, records, and accounts related  thereto. |
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|   | (q) | The      funds that are to be deposited into the Environmental Compliance Fund      shall be maintained by the Manager in a separate, interest bearing cash      management account, which may include, but is not limited to, money market      investments and money market funds, and/or in longer term investments if      approved by the Management Committee.  Such funds shall be used      solely for Environmental Compliance and Continuing Obligations, including      the committing of such funds, interests in property, insurance or bond      policies, or other security to satisfy Laws regarding financial assurance      for the reclamation or restoration of the Property, and for other      Environmental Compliancerequirements. |
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|   | (r) | If      Participating Interests are adjusted in accordance with this Agreement the      Manager shall propose from time to time one or more methods for fairly      allocating costs for ContinuingObligations. |
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|   | (s) | The      Manager shall undertake all other activities reasonably necessary to      fulfill the foregoing, and to implement the policies, objectives,      procedures, methods and actions determined by the Management      Committee. |
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|   | (a) | during      the Joint Venture Period, the aggregate Participating Interest of the      Manager and its Affiliates becomes less than **** |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Manager is in Material Breach of an obligation imposed upon it under this      Agreement and such failure continues for a period of 60 days after notice      from the other JV Participant demanding  performance; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Manager fails to pay or contest in good faith its bills and Business debts      as such obligations become due; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      receiver, liquidator, assignee, custodian, trustee, sequestrator or      similar official for a substantial part of its assets is appointed and      such appointment is neither made ineffective nor discharged within 60 days      after the making thereof, or such appointment is consented to, requested      by, or acquiesced in by theManager; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Manager commences a voluntary case under any applicable bankruptcy,      insolvency or similar law now or hereafter in effect; or consents to the      entry of an order for relief in an involuntary case under any such law or      to the appointment of or taking possession by a receiver, liquidator,      assignee, custodian, trustee, sequestrator or other similar official of      any substantial part of its assets; or makes a general assignment for the      benefit of creditors; or takes corporate or other action in furtherance of      any of the foregoing; or |
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|   | (f) | entry      is made against the Manager of a judgment, decree or order for relief      affecting its ability to serve as Manager or a substantial part of its      Participating Interest or its other assets by a court of competent      jurisdiction in an involuntary case commenced under any applicable      bankruptcy, insolvency or other similar law of any jurisdiction now or      hereafter in effect. |
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|   | (a) | The      administration charges of TCM as Manager (the “Administrative      Charges”) shall be determined according to the provisions of Exhibit    B. |
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|   | (b) | TCM      and USE shall enter into a Services Agreement to provide for compensation      to USE for the use of its employees to perform administrative and      operating functions, as further provided in ExhibitG. |
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|   | (a) | Termination on Terms      or by Agreement.  This Agreement shall terminate as      provided under Sections 6.3(b), 6.3(c), 7.13(c), 21.6(c) or this ARTICLE      XVI, unless earlier terminated by written agreement by the      Parties. |
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|   |  (b) | Termination by      Notice.  During the Joint Venture Period, TCM may      terminate this Agreement at any time by written notice to USE (including      during an event of force majeure as set out in Section      21.6).  Upon termination of this Agreement under this Section,      TCM must file all work and/or pay all such fees to maintain the Property      in good standing for a period of three months after such termination and      deliver to USE all records, reports, studies, data, computer programs and      other information necessary and appropriate to carry out Permitting and      other Operations on the Property in a manner consistent with industry      standards and good workmanlike practices; additionally, upon such      termination, USE (or a designated Affiliate of USE) ****.  Other      than filing such work, paying such fees and making such deliveries and      assignments under this Section, ****. |
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|   | (a) | During      the Option Period, within 30 days after receiving the Acquiring Party’s      notice, the non-acquiring Party may notify the Acquiring Party of its      election to include such acquired interest in the Property and make it      subject to the terms of this Agreement.  Upon such election such      acquired interest shall be included in the Property thereafter for all      purposes of this Agreement.  If the Acquiring Party is USE, then      TCM shall reimburse it for the acquisition costs that it or its Affiliate      has incurred.  When paid by TCM in the first instance on      acquisition, or reimbursed by TCM when acquired by USE, the acquisition      costs for any acquired interests will be deemed to constitute Expenditures      to the credit of TCM hereunder. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | During      the Joint Venture Period, within 30 days after receiving the Acquiring      Party’s notice, the non-acquiring Party may notify the Acquiring Party of      its election to accept a proportionate interest in the acquired interest      equal to its Participating Interest. Promptly upon such notice, the      Acquiring Party shall convey or cause its Affiliate to convey to the      non-acquiring Party, in proportion to its respective Participating      Interest, by special warranty deed with title held as described in Section      8.12, all of the Acquiring Party’s (or its Affiliate’s) interest in such      acquired interest, free and clear of all Encumbrances arising by, through      or under the Acquiring Party (or its Affiliate) other than those to which      both |
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|   | (a) | Number of      Arbitrators.  The Parties shall appoint a sole arbitrator      agreeable to them to resolve any dispute; provided, however, that should      the Parties fail to agree upon a sole arbitrator within 30 days after the      initiation of the arbitration, then there shall be 3 arbitrators. The      claimant shall name the first arbitrator within thirty days after the      expiration of the above-described deadline to appoint a single      arbitrator.  The respondent shall appoint the second arbitrator      within 30 days after the appointment of the first      arbitrator.  The two Party-appointed arbitrators shall appoint      the third arbitrator within thirty days after the appointment of the      second arbitrator.  If (i) the respondent fails to appoint an      arbitrator or (ii) the two Party-appointed arbitrators fail to appoint a      third arbitrator within the above-described time limitations, then the AAA      shall appoint the second and/or third arbitrator, as      applicable. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Place of      Arbitration.  Unless otherwise agreed in writing by all      Parties to the arbitration, the situs of the arbitration under this      Agreement shall be Denver, Colorado,U.S.A. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | Language.  The      arbitration proceedings shall be conducted in the English      language. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (d) | Entry of      Judgment.  Judgment on the award of the arbitral tribunal      may be entered by any court of competent  jurisdiction. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Qualifications and Conduct of      the Arbitrators.  All arbitrators shall be and remain at      all times wholly impartial and shall provide the Parties with a statement      that they can and shall decide the case impartially.  No      arbitrator shall have any financial interest (directly or indirectly) in      the dispute or any financial dependence (directly or indirectly) upon any      of the Parties.  All arbitrators shall be knowledgeable of the      mining industry or the law applicable to such business.  The      AAA’s Rules of Ethics shall be applicable to all    arbitrators. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Interim      Measures.  The arbitrators, or in an emergency the      presiding arbitrator acting alone in the event one or more of the other      arbitrators are unable to be involved in a timely fashion, may grant      interim measures including injunctions, attachments and conservation      orders in appropriate circumstances, which measures the Parties agree may      be immediately enforced by the arbitrators or by court      order.  Hearings on requests for interim measures may be held in      person, by telephone or by video conference, and requests for relief,      responses, briefs or memorials may be sent to, and orders or awards      received from, the arbitrators by facsimile or other similar means which      include a confirmation of delivery.  Notwithstanding the      requirements for alternative dispute resolution procedures (such as      negotiation and mediation), prior to the constitution of the arbitration      tribunal and thereafter as necessary to enforce the arbitrators’ rulings      or in the absence of the jurisdiction of the arbitrators to rule on      interim measures in a given jurisdiction, any Party may apply to a court      for interim measures, and the Parties agree that seeking and obtaining      such measures shall not waive the right to  arbitration. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Costs and Attorney’s      Fees.  The arbitral tribunal is authorized to award      attorney’s fees or allocate them between the Parties.  The costs      of the arbitration proceedings shall be borne in the manner determined by      the arbitral tribunal, with the exception of the arbitrators’      fees.  The Parties shall divide the cost of a single arbiter,      with TCM paying 50% of the fee and the USE paying the remaining      50%.  In the event that three arbitrators are appointed, each of      TCM and the USE shall pay the fee of the arbitrator it appoints and 50% of      the fee of the third arbitrator. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Currency of      Award.  The arbitral award shall be made and payable in      Dollars free of any tax or otherdeduction. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Punitive      Damages.  Penal, punitive, treble, multiple,      consequential, incidental or similar damages may not be recovered or      awarded. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (j) | Confidentiality.  Except      to the extent necessary to enforce the arbitration, agreement or award, to      enforce other rights of the Parties, or as required by law, the Parties,      their employees, officers, directors, counsel, consultants, and expert      witnesses, shall maintain as confidential the fact of the arbitration      proceeding, the arbitral award, contemporaneous or historical documents      exchanged or produced during the arbitration proceeding, and memorials,      briefs or other documents prepared for the  arbitration. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Waiver of      Appeals.  To the extent permitted by law, right to appeal      from or to cause a review of any arbitral award by any court is hereby      waived by the JV Participants. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Summary      Disposition.  The arbitrators are hereby authorized, if      they consider it appropriate, to decide any disputes by summary      disposition on the documents and written testimony without hearing oral      testimony. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Draft of the Proposed      Award.  Prior to rendering the final award, the arbitral      tribunal shall submit to the Parties an unsigned draft of the proposed      award and each Party, within 10 Business Days after receipt of such draft      award, may serve on every other Party and file with the tribunal a written      statement commenting upon any alleged errors of fact, law, computation, or      otherwise.  The tribunal shall endeavor to render its final      award within 10 Business Days after the receipt of the letter of the      written statements of the Parties. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | to      a Party’s officers, directors, partners, members, employees, Affiliates,      shareholders, agents, attorneys, accountants, consultants, contractors,      subcontractors or advisors, for the sole purpose of such Party’s      performance of its obligations under this  Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to      any party to whom the disclosing Party contemplates a Transfer of all or      any part of its Participating Interest, for the sole purpose of evaluating      the proposed Transfer; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to      any actual or potential lender, underwriter or investor for the sole      purpose of evaluating whether to make a loan to or investment in the      disclosing Party; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to      a third party with whom the disclosing Party contemplates any independent      business activity or operation. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (a) | such      disclosure is legally required to be made in a judicial, administrative or      governmental proceeding pursuant to a valid subpoena or other applicable      order; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | such      disclosure is legally required to be made pursuant to the rules or      regulations of a stock exchange or similar trading market applicable to      the disclosing JV Participant; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | such      disclosure is legally required to be made by the rules and regulations of      any regulatory authority. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

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|   | (a) | to      another Party or the Manager; |
|--------|-----|---------------------------------------|

|   | (b) | with      the prior written consent of all the other  Parties; |
|--------|-----|----------------------------------------------------------------|

|   | (c) | to      a bank or other financial institution considering the provision of or,      which has provided financial accommodation to, a Party or an Affiliate of      a Party or to a trustee, representative or agent or such a bank or      financial institution; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to      a third party for a bona fide business purpose, provided that such third      party has first agreed in writing to maintain the confidentiality of the      Confidential Information; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | by      a Party to legal, financial and other professional advisers, auditors and      other consultants, officers and employees of a Party or a Party’s      Affiliate, provided that such Party or Party’s Affiliate has first agreed      in writing to maintain the confidentiality of the Confidential      Information; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | to      the extent that the Confidential Information was publicly available at the      Agreement Date or becomes publicly available subsequent to the Agreement      Date without breach of thisAgreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| If      to the USE:                           |
|-----------------------------------------------|
| U.S.      Energy Corp.                        |   |
| 877      North 8th      West,                 |   |
| Riverton,      WY 82501                       |   |
| Attention:                                    | Mark      J. Larsen, President |
|                                          | Steve      Youngbauer, General Counsel |
| Telephone:                                    | (307)      856-9721 |
| Facsimile:                                    | (307)      856-3050 |
| E-Mail:                                       | mark@usnrg.com;      youngbauer@usnrg.com |
|                                          |   |
| Davis,      Graham & Stubbs LLP           |   |
| 1550      Seventeenth St.                     |   |
| Suite      500                                |   |
| Denver,      CO 80206                         |   |
| Attention:                                    | Scot      Anderson, Esq. |
| Telephone:                                    | (303)      892-7383 |
| Facsimile:                                    | (303)      893-1379 |
| E-Mail:                                       | scot.anderson@dgslaw.com |
|                                          |   |
| If      to Thompson Creek Metals Company USA: |
| 945      West Kenyon Avenue, Unit B           |   |
| Englewood,      Colorado  80110     |   |
| Attention:                                    | Kevin      Loughrey, Chief Executive Officer |
| Dale      Huffman, Vice President             |   |
| Telephone:                                    | (303)      761-8801 |
| Facsimile:                                    | (303)      761-7420 |
| E-Mail:                                       | kevinl@tcrk.com;      dale@tcrk.com |
|                                          |   |
| With      a Copy to:                          |
| Fognani      & Faught, PLLC               |   |
| 1700      Lincoln Street, Suite 2222          |   |
| Denver,      Colorado  80203        |   |
| Attention:                                    | John      D. Fognani, Esq. |
| Telephone:                                    | (303)      382-6200 |
| Facsimile:                                    | (303)      382-6210 |
| E-Mail:                                       | jfognani@fognanilaw.com |

----

|   | (a) | Except      for TCM’s obligation to make option payments under Section 5.1(b), the      obligations of a Party under this Agreement, including TCM’s obligation to      incur Expenditures under 6.1(a), shall be suspended to the extent and for      the period that performance is prevented by any cause, whether foreseeable      or unforeseeable, beyond its reasonable control, including, without      limitation, labor disputes (however arising and whether or not employee      demands are reasonable or within the power of the Party to grant); acts of      God; Laws of any government or governmental entity; ****; acts of war or      conditions arising out of or attributable to war, whether declared or      undeclared; riots, protests, civil strife, insurrection or rebellion;      fire, explosion, earthquake, storm, flood, sink holes, drought or other      adverse weather condition; accidents; or any other cause whether similar      or dissimilar to the foregoing.  The affected Party shall      promptly give notice to the other Party of the suspension of performance,      stating therein the nature of the suspension, the reasons therefore, and      the expected duration thereof.  The affected Party shall resume      performance as soon as reasonably possible.  During a period of      suspension during the Joint Venture Period, the obligations of both JV      Participants to advance funds pursuant to Section 10.2 shall be reduced to      levels consistent with then current Operations.  For the      avoidance of doubt, this Section 21.6 does not relieve the Manager of its      obligation to keep the Property in good  standing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      during the Option Period ****. |
|--------|-----|----------------------------------------|

|   | (c) | ****. |
|--------|-----|-------|

|   | (d) | ****. |
|--------|-----|-------|

----

----

| U.S.      ENERGY CORP. |
|------------------------|
|                   |   |
| Per:                   |   /s/      Keith G. Larsen |
|                   | President |

| THOMPSON      CREEK METALS COMPANY USA |
|----------------------------------------|
|                                   |   |
| Per:                                   |   /s/      Kevin Loughrey |
|                                   | President |

----

----

----

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|   | (a) | in      holding the Property in good standing (including land maintenance costs      and any monies expended as required to comply with applicable laws and      regulations, such as for the completion and submission of assessment work      and filings required in connection therewith), in curing title defects and      in acquiring and maintaining surface and other ancillary      rights; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      preparing for and in the application for and acquisition of environmental      and other permits, licenses and approvals necessary or desirable to      commence and complete exploration and development activities, including      ancillary costs and expenses such as contributions to local public works      initiatives, community programs and thelike; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in      doing geophysical and geological surveys, drilling, assaying and      metallurgical testing, including costs of assays, metallurgical testing      and other tests and analyses to determine the quantity and quality of      Minerals, water and other materials or  substances; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | in      the preparation of work programs and the presentation and reporting of      data and other the results thereof including any program for the      preparation of a feasibility study or other evaluation of the      Properties; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | for      environmental remediation andrehabilitation; |
|--------|-----|-------------------------------------------------------|

|   | (f) | in      acquiring facilities, equipment or machinery, or the use thereof, and for      all parts, supplies andconsumables; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (g) | for      salaries and wages, including actual labor overhead expenses, work or      performance bonuses for employees assigned to Exploration, Development and      Mining activities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | traveling      expenses and fringe benefits (whether or not required by law) of all      persons engaged in work with respect to and for the benefit of the      Property, including for their food, lodging and other reasonable      needs; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | payments      to contractors or consultants, including without limitation USE as a      contractor under the Services Agreement, for work done, services rendered      or materials supplied; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | the      cost of insurance premiums and performance bonds or other      security; |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (k) | all      taxes levied against or in respect of the Property, or activities      thereon; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (l) | acquisition      costs of Rights acquired under ARTICLEXVII; |
|--------|-----|--------------------------------------------------------------|

|   | (m) | operating      costs of the Facility under Section 8.15, including any capital costs      associated with operation and maintenance of the Facility;    and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | the      Administrative Charges. |
|--------|-----|----------------------------------|

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----

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|   | (a) | Terms      denoting the singular only shall include the plural, and vice      versa. |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (b) | Unless      otherwise stated, a reference to a Recital, Part, Article, Section or      Exhibit is a      reference to a Recital, Part, Article, Section or Exhibit of this      Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  (c) | Section      numbers and headings are for convenience of reference only, and shall not      affect the interpretation of thisAgreement. |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Reference      to any gender includes the other. |
|--------|-----|--------------------------------------------------|

|   | (e) | Reference      to “including” means including, but not by way of    limitation. |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (f) | Unless      otherwise expressly provided in this Agreement, reference to an Agreement      (including this Agreement), document, or instrument is the same as      amended, modified, novated or replaced from time to  time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Reference      to a statute or other legislative act, by law, rule, regulation, or order      is to the same as amended, modified or replaced from time to time and to      any rule, regulation or order promulgated pursuant to such      law. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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