Exhibit 4.6




	SEABEE




	SURFACE LEASE AGREEMENT




	between




	The Government of Saskatchewan




	and




	Claude Resources Inc.






 
	 	
	 


 

 












	TABLE OF CONTENTS





	
      Part I   Land Tenure

    	
       

    
	
       

    	
       

    
	
      Lease of Land

    	
      1

    
	
      Rental Charges

    	
      1

    
	
      Use of Lands 

    	
      2

    
	
      Payment of Taxes

    	
      3

    
	
      Improvements and Roadways 

    	
      3

    
	
      Access to Lease Lands

    	
      4

    
	 	 
	
       

    	
       

    
	
      Part II   Occupational
        Health and Safety of Workers and Environmental Protection 

    
	
       

    	
       

    
	
      Occupational Health and Safety
        of Workers

    	
      6

    
	
      Environmental Protection

    	
      7

    
	
       

    	
       

    
	 
	
      Part III   Direct
        Employment & Economic Benefits for Residents of Saskatchewan’s
        North 

    
	
       

    	
       

    
	
      Intent

    	
      10

    
	
      Employment Policies and Practices

    	
      10

    
	
      Training and Development Program

    	
      11

    
	
      Commercial Opportunities

    	
      12

    
	
      Compensation

    	
      13

    
	
      Monitoring

    	
      13

    
	
       

    	
       

    
	 	 
	
      Part IV   Miscellaneous
        Provisions

    	
       

    
	
       

    	
       

    
	
      Compliance with Relevant Statutes

    	
      15

    
	
      Termination of Agreement

    	
      15

    
	
      Arbitration

    	
      16

    
	
      Assignments

    	
      18

    
	
      Indemnity

    	
      19

    
	
      Force Majeure

    	
      19

    
	
      Notices

    	
      20

    
	
      Term of Agreement

    	
      21

    
	
      Place of Business 

    	
      22

    
	
      Confidentiality

    	
      22

    
	
      Binding Effect

    	
      22

    
	
      Other Leases

    	
      22

    
	
      Scope of Covenants

    	
      22

    



 
	 	
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      Continuing Obligations

    	
      23

    
	
       

    	
       

    
	 	 
	
      Part
        V   Construction of Agreement 

    	
       

    
	
       

    	
       

    
	
      Interpretation

    	
      24

    
	
      Entire Agreement

    	
      25

    
	
      Signature Page

    	
      26

    




	APPENDICES




	 Appendix “A” -	 Seabee Mine Site Map Showing Existing
      Mine Leases and Proposed Annex dated May 1, 2002





	 Appendix “B” - 	“Guidelines for Environmental Protection
      During Road Construction,” Saskatchewan Environment, December 1993





	 Appendix “C” -	 “Guidelines for Environmental
      Protection During Development and Restoration of Sand and Gravel Pits,”
      Saskatchewan Environment, September 1983, reprinted November 1987









 
	 	
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	LEASE AGREEMENT




	THIS AGREEMENT, effective June 4 2002






	BETWEEN:




	 	The
Government of Saskatchewan as represented by the Minister of Saskatchewan
Northern Affairs and the Minister of Saskatchewan Environment, (hereinafter
referred to as the “Minister”)




	- and -




	 	Claude
Resources Inc., a corporation incorporated under the laws of Canada and registered to
carry on business in the Province of Saskatchewan, (hereinafter referred to as the
“Lessee”).






	WHEREAS:




	Claude Resources Inc. is a mining company based
in Saskatoon, Saskatchewan and is the holder of a number of  mineral dispositions from
which they established a gold mine that commenced production in 1991;




	In 1997, Claude Resources Inc. and its
wholly-owned subsidiary Centaur Mining Contractors installed a new shaft  and hoist at
the mine site to allow access to additional ore reserves below the 440-metre level;




	In 1998, Claude Resources Inc. consolidated a
number of small mineral dispositions into Mineral Lease 5519 and  converted part of claim
CBS 7057 to Mineral Lease 5520;




	Effective  December 31, 2000, Claude Resources
Inc.’s  wholly-owned  subsidiary,  Centaur Mining Contractors, was amalgamated with
Claude Resources Inc.;




	At  commissioning  of operations,  Claude
Resources Inc.  received  approval to  deposit mill  effluents  and tailings  into the
de-watered  East Lake  tailings  management  facility having a predicted design capacity
for  approximately  five  years of mill production.  Despite extensive  modifications to
milling processes  to reduce the amount of water required in the mill,





 
	 	
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	resulting  in lower  volumes  of tails  being
placed in the East Lake  tailings  management facility, its capacity will be reached by
the third quarter of 2002.




	To continue  production  beyond  2002,  a new
tailings  management  facility is  needed.  In  July  2001,  Claude  Resources  Inc.
prepared  and  submitted  an  Environmental  Impact  Statement for  construction of a new
tailings  management  facility.




	It is the intention of the Minister and Claude
Resources Inc. to negotiate a new  lease, replacing the existing Seabee Project Surface
Lease Agreement issued July  5, 1990, to afford additional Crown land surface rights
necessary to accommodate  a new tailings management facility;




	The Province of  Saskatchewan  is the owner of
the Lease Lands and has agreed to  grant such  application  for a Surface  Lease under
the  authority of The Forest  Resources  Management  Act,  The  Provincial  Lands  Act,
and all  Saskatchewan  legislation  regarding the  disposition of surface  rights,  and
the regulations  made thereunder; and




	Claude Resources Inc. and the Minister
acknowledge that this Agreement does not  abrogate  or  derogate  from  any  existing
Aboriginal  and  treaty  rights  of  Aboriginal peoples of northern  Saskatchewan that
are recognized and affirmed by  Section 35 of The Constitution Act, 1982.




	NOW THEREFORE the Parties agree as follows:






 
	 	
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	PART I




	LAND TENURE




	Article 1.0 Lease of Land




	
1.1 	 The
Minister  hereby  leases to the Lessee the Lease Lands,  located in  the  Province  of
Saskatchewan  at  approximate  UTM  Grid  Zone  13/6171600mN/586700mE  on NTS mapsheet
63M12,  constituting the surface  area  described  on the  provisional  map titled
Seabee  Mine Site Map  Showing  Existing  Mine  Leases and  Proposed  Annex dated May 1,
2002,  attached  hereto  as  Appendix  “A” and  containing  approximately  537
hectares, more or less (hereinafter referred to as the “Lease Lands”).





	
1.2 	 To
more precisely  define the Lease Lands which are the subject of this  Agreement,  the
Lessee shall,  within one year  following the effective  date of this  Agreement,
prepare and  deliver to the  Minister a legal  plan of survey, duly filed at the
appropriate  Saskatchewan Land Titles  Office pursuant to The Land Titles Act or approved
by the Controller of  Surveys of the Land Surveys Directory pursuant to The Land Surveys
Act,  2000,  as the  situation  may require.  Such legal plan of survey shall  become
Appendix “A” in the place and stead of the current Appendix “A”.





	
1.3 	 The
Lessee shall provide to the Minister of Saskatchewan Environment on  the first day of
April each year,  information as to the portion of the  Lease Lands that has been
developed,  in such detail as is necessary to  calculate rent or other charges.





	
1.4 	 If the Lessee fails to comply with
      the requirements set out in Article 1.3, the Minister of Saskatchewan Environment
      may determine the portion of the Lease Lands which has been developed, for
      purposes of calculating rent or other charges in accordance with The
      Resource Lands Regulations, 1989.





	Article 2.0 Rental Charges




	
2.1 	 The
Lessee shall pay to the Minister of Saskatchewan Environment at the Sustainable Land
Management Branch in Prince Albert, Saskatchewan, the rent and any additional charges,
as are prescribed for Provincial Lands by The Resource Lands Regulations, 1989 under The
Provincial Lands Act.





	
2.2 	 Payments
required by Article 2.1 are due yearly in advance on the first  day of June. The Parties
acknowledge  that this Agreement  replaces an  existing  Surface  Lease and the Minister
of  Saskatchewan  Environment  will consider,  in calculating  lease fees due and payable
upon the new  Surface Lease, the amount of monies,  if any, already  submitted by the
Lessee for Lease fees due and payable upon the existing Surface Lease.









 
	 	
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	Article 3.0 Use of Lands




	
3.1 	 Subject
to the terms of this  Agreement,  the Lessee shall be entitled to  the use and occupation
of the Lease Lands for the term of this Agreement.





	 	The Lessee shall:






	 	 (a) 	 obtain and comply with the terms of
      any permit, licence, approval, permission or consent required by and issued
      pursuant to any and all laws in force in the Province of Saskatchewan; and
	 	 	 
	 	(b)	comply with the terms of and maintain
      in good standing for the duration of this Agreement the mineral dispositions
      underlying the Lease Lands and registered in whole or in part to the Lessee
      pursuant to The Mineral Disposition Regulations, 1986 or The Crown
      Minerals Act.











	
3.2 	 The
Lessee shall not use the Lease Lands for any purpose other than those necessary for:






	 	 (a) 	 the exploration for, mining, milling
      and transporting on the Lease Lands of gold bearing ore or other mineral
      bearing material including any byproducts, but excluding uranium-ore material,
      and including all de-watering activities related thereto;
	 	 	 
	 	(b)	the construction and operation of a
      mill for processing mineral ore, or other substances approved by the Minister
      of Saskatchewan Environment including the byproducts related thereto;
	 	 	 
	 	(c) 	the construction and use of tailings
      ponds and waste management facilities;
	 	 	 
	 	(d)	the construction and use of camp facilities
      and ancillary facilities required for employee accommodation and recreation;
	 	 	 
	 	(e)	the construction, modification and use
      of all buildings, structures, facilities, machinery, equipment, supplies,
      air strips, power, fuel and water supply, roads and all other support and
      service facilities relating to the construction and operation of the mine,
      mill or other permitted site activities;
	 	 	 
	 	(f)	the reclamation, decommissioning and
      post-decommissioning monitoring of the Lease Lands, and the buildings, structures
      and facilities located thereon; and
	 	 	 
	 	(g)	such other purposes relating to mining,
      processing and transportation, 







 
	 	
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	 	 	including  the construction
      and use of facilities related thereto, as may be approved by the Minister
      of Saskatchewan Environment.





	
3.3 	 The
Lessee may construct  other  buildings or structures not authorized  under Article 3.2,
with the prior  written  consent of the Minister of  Saskatchewan Environment.





	
3.4 	 The
Lessee  shall have the right to remove  timber from the Lease Lands  where such removal
is necessary  for its  operations,  subject to first  obtaining and complying with any
necessary permits.





	
3.5 	 The Lessee shall have the right to
      remove and/or use sand and gravel from the Lease Lands where such removal
      and/or use is necessary for the Seabee project, subject to completing and
      submitting Sand and Gravel Royalty Return Reports and payment of applicable
      royalties to the Sustainable Land Management Branch of Saskatchewan Environment
      in Prince Albert on a quarterly basis, with such reports and payments being
      due within 30 days after March 31, June 30, September 30 and December 31,
      unless otherwise specified in The Resource Lands Regulations, 1989.
      However, the Lessee shall not be required to submit a Sand and Gravel Royalty
      Return Report or pay any royalties in respect to any sand or gravel derived
      from rock, mine waste or other byproduct of the Seabee project.





	
3.6 	 The
Lessee  shall  obtain  written  approvals  for the right to use or  divert  surface or
ground water from any water body or aquifer  located  in whole or in part on the Lease
Lands,  and for the  construction  and  operation  of  waterworks  for that  purpose,  as
required  under  the  provisions of The Water Corporation Act and any other Applicable
Laws.





	Article 4.0 Payment of Taxes




	
4.1 	 The
Lessee  shall  pay  all  royalties,  charges,  taxes,  rates  and  assessments,
whatsoever, whether municipal,  provincial, or otherwise,  charged by or payable
pursuant to provincial  or federal  legislation,  which may at any time during the term
of this Agreement be charged upon  or become payable in respect of the  occupation of the
Lease Lands,  or  of any  business  or  operations  conducted  by the Lessee on the Lease
Lands.





	Article 5.0 Improvements and Roadways




	
5.1 	 The
Lessee shall comply with the terms,  conditions and requirements of  the Guidelines for
Environmental  Protection  During Road Construction  (Appendix “B”) and the
Guidelines for  Environmental  Protection During  Development and Restoration of Sand and
Gravel Pits (Appendix “C”). The  Lessee shall avoid unnecessary road
construction.







 
	 	
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	Article 6.0 Access to Lease Lands





	 6.1 	 In this Article “authorized employees”
      means:






	 	 (a) 	 employees of Saskatchewan Labour who
      are authorized by the Minister of Saskatchewan Labour;
	 	 	 
	 	(b)	employees of Saskatchewan Environment
      who are authorized by the Minister of Saskatchewan Environment;
	 	 	 
	 	(c)	employees of Saskatchewan Northern Affairs
      who are authorized by the Minister of Saskatchewan Northern Affairs;
	 	 	 
	 	(d)	employees of Saskatchewan Learning who
      are authorized by the Minister of Saskatchewan Learning;
	 	 	 
	 	(e)	employees of Saskatchewan Industry and
      Resources who are authorized by the Minister of Saskatchewan Industry and
      Resources;
	 	 	 
	 	(f)	employees of Saskatchewan Water Corporation
      who are authorized by the President of Saskatchewan Water Corporation; and
	 	 	 
	 	(g)	any other person authorized by the applicable
      Minister to monitor compliance by the Lessee with the provisions of this
      Agreement.






	
6.2 	 The
Lessee  shall  provide the Minister or the  employees  specified in  Articles 6.1(a),
(b), (e), (f) and (g) with access to the Lease Lands,  with or without prior notice to
the Lessee,  together with the right to  take  necessary  equipment  onto the  Lease
Lands for the  purpose  of  monitoring compliance by the Lessee with the provisions of
Parts I, II,  and IV of this  Agreement.  Upon request,  the Lessee shall furnish the
applicable  Minister or such employees with such  information as may be  required  in
order  to  monitor  compliance  by the  Lessee  with  the  provisions of this Agreement.





	
6.3 	 The
authorized  employees  specified in Articles  6.1(c) and (d) shall,  upon  reasonable
prior notice to the Lessee,  have access to the Lease  Lands at any reasonable  time for
monitoring  the Lessee’s  compliance  with the provisions of Part III of this  Agreement.
Upon request,  the  Lessee  shall  furnish  the  applicable  Minister  and such
authorized  employees with such  information as may be required in order to monitor
compliance  by the  Lessee  with  the  provisions  of Part  III of this  Agreement.





	
6.4 	 Authorized
employees of Saskatchewan  Environment shall have access  to the Lease Lands at any
reasonable  time for resource  management  purposes.





	
6.5 	 In
furtherance of the obligations of the Lessee contained in Articles  6.2 and 6.3, the 









 
	 	
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	 	Lessee agrees, on reasonable notice,
      to provide the applicable Minister and a reasonable number of authorized
      employees utilization of the landing strip owned and operated by the Lessee
      at the mine site, site transportation, meals and accommodation as is necessary
      and available. The Lessee shall be entitled to charge for such transportation,
      meals and accommodation at rates established by the Lessee each year.





	
6.6 	 The
Lessee shall:






	 	 (a) 	 provide reasonable public access to
      the Lease Lands required for the purpose of acquiring underlying mineral
      rights; and
	 	 	 
	 	(b)	provide reasonable access, when the
      Minister of Saskatchewan Environment so authorizes, to valid mineral disposition
      holders for the purpose of exploring and commercially developing their dispositions
      underlying the Lease Lands











	 	 provided, however, that the Lessee
      shall not be responsible or liable for the acts or omissions of such person,
      or their employees, agents or contractors while on the Lease Lands pursuant
      to such authorization of the Minister of Saskatchewan Environment.







 
	 	
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	PART II




	OCCUPATIONAL HEALTH AND SAFETY
OF WORKERS AND 
ENVIRONMENTAL PROTECTION




	Article 7.0 Occupational Health and Safety of
Workers




	
7.1 	 The
Lessee agrees to cooperate  with  Saskatchewan  Labour in order for  the Department to be
satisfied that the operations of the Lessee on and  in  respect  of the  Lease  Lands are
in  accordance  with all laws and  regulations.  Without  restricting  the generality of
Article 15.0, the  Lessee shall comply with: The Occupational  Health and Safety Act,
1993  and the  Regulations  and codes of practice  made pursuant to that Act,  and The
Radiation  Health and Safety Act, 1985 and the Regulations made  pursuant to that Act.





	
7.2 	 The Lessee agrees that its safety program
      will be monitored, administered and controlled by the Lessee in compliance
      with The Occupational Health and Safety Act, 1993 and all applicable
      Regulations thereunder, and with the involvement of the Occupational Health
      Committee established pursuant to Part III of The Occupational Health
      and Safety Act, 1993 and Part IV of The Occupational Health and Safety
      Regulations.











	7.3	(a) 	  Where,
      in the opinion of an authorized employee of Saskatchewan Labour, the Lessee
      is contravening or has contravened any provision of this Article 7.0, The
      Occupational Health and Safety Act, 1993 and associated Regulations or The
      Radiation Health and Safety Act, 1985 and associated Regulations in circumstances
      which make it likely that the contravention will continue or will be repeated,
      such authorized employee may serve on the Lessee a notice of contravention
      stating the provision which is being or has been contravened and the reasons
      which make the authorized employee of the above opinion, and requiring the
      Lessee to remedy the contravention within the period specified in the notice.
	 	 	 
	 	(b) 	The appeal provisions of
      The Occupational Health and Safety Act, 1993 (currently found in Part VIII
      of such Act) apply to any notice of contravention served under Article 7.3(a).













 
	 	
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	Article 8.0 Environmental Protection




	
8.1 	 The
Lessee  shall  comply  with  the  terms  and  conditions  of  any  Ministerial  Approval
obtained  from  the  Minister  of  Saskatchewan  Environment under The  Environmental
Assessment Act, The Environmental  Management  and  Protection  Act,  The  Clean Air Act,
and  associated  Regulations thereunder.





	
8.2 	 As
may be required under any permit, license,  approval,  permission or  consent required by
and issued pursuant to any and all laws in force in  the Province of Saskatchewan,  the
Lessee shall submit for the approval  of Saskatchewan  Environment  (hereinafter
“the Department”),  prior to  their implementation, all design plans for the
management of waste rock  and any other solid or liquid effluent or air emission,
including those  for dewatering processes,  wastewater handling and treatment,  domestic
wastewater treatment,  air pollution abatement or other operations with  potential
environmental impacts.





	
8.3 	 The
Lessee shall ensure that in all its  activities  the quantities and  concentrations of
contaminants  released into receiving  waters,  lands  and the atmosphere are as low as
is reasonably achievable,  taking into  account social and economic factors,  and that,
in any case, they shall  not exceed the  discharge  limits  established  in  legislation
and/or  Regulations for which the Department is responsible.





	
8.4 	 The
Lessee  shall  prepare,  in  consultation  with the  Department,  a  program to monitor
discharges and to measure the environmental  effects  of the Seabee  project,  and shall
implement the program as approved by  the  Department.  The  Lessee  shall  implement
any  changes  to  the  monitoring  program as may from time to time be reasonably
required by  the Department  and shall take any  mitigative or remedial  measures as  may
be required by the Department following review of the program data.





	
8.5 	 Prior to the storage upon the Lease
      Lands or transit to or from the Lease Lands of any hazardous substances
      or waste dangerous goods, the Lessee shall prepare and adhere to an Environmental
      Contingency Plan that complies with The Hazardous Substances and Waste
      Dangerous Goods Regulations. Thereafter, the Lessee shall modify the
      Environmental Contingency Plan periodically as may be required by the Department
      based on inspections.





	
8.6 	 As
required under  Regulations for which the Department is responsible,  as referenced in
Article 8.1 hereof and  exemplified in Articles 8.9 to  8.11 below, the Lessee shall
develop and submit all Decommissioning and  Reclamation Plans,  including  specific plans
for  post-decommissioning  monitoring, for approval by the Department.









 
	 	
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8.7 	 Without
limiting the generality of the foregoing, the Parties agree that:






	 	(a) 	 the Lessee shall obtain any approvals
      and establish any assurance funds required by The Mineral Industry Environmental
      Protection Regulations, 1996, as amended from time to time and hereinafter
      referred to as the “MIEP Regulations;”
	 	 	 	 
	 	(b) 	the Minister of Saskatchewan Environment,
      where he considers it necessary, may:
	 	 	 	 
	 	 	(i) 	enforce any security, call in, cash
      or redeem any security or other instrument, or take any other action that
      the Minister considers necessary to realize on the assurance fund; or
	 	 	 	 
	 	 	(ii)	require that all or part of the assurance
      fund be used to decommission and reclaim all or part of the mining site,
      as defined in the MIEP Regulations, for which the assurance fund
      was approved in accordance with the decommissioning and reclamation plan
      approved for that mining site or in any other manner the Minister considers
      appropriate.






	
8.8 	 The Lessee shall prepare Decommissioning
      and Reclamation Plans, as required by the Department, and reclaim the Lease
      Lands on an ongoing basis throughout the term of this Agreement including,
      once they are no longer needed and without limitation, the mining site and
      individual pollutant control facilities as defined in the MIEP Regulations.





	
8.9 	 The
Lessee shall implement final Decommissioning and Reclamation plans,  as approved by the
Department for the entire mining site,  according to  the time frame set out in the
Decommissioning  and Reclamation  plans,  upon:






	 	 (a) 	 a decision by the Lessee to permanently
      cease operations at the Seabee project;
	 	 	 
	 	(b)	the inability of the Lessee to obtain
      necessary regulatory approvals to introduce or to continue with the mining,
      crushing, processing or transporting of gold bearing ore or other mineral
      bearing material, excluding uranium ore material; or
	 	 	 
	 	(c)	the reasonable direction of the Department.










 
	 	
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8.10 	 In
the event the Lessee permanently ceases operations or this Agreement  is terminated
without a replacement  agreement being entered into, and  no final  Decommissioning  and
Reclamation  Plans for the entire mining  site have been approved by the  Department,
the Lessee shall carry out  any  decommissioning  and reclamation  procedures as may be
required by  the Department.





	
8.11 	 For
the  purposes  of  Articles  8.8 to 8.10  inclusive,  the Lessee  shall, if required by
the Department, enter into a new Surface Lease  Agreement  for such length of time as may
be  necessary  to complete  decommissioning  and  reclamation  of the Lease Lands and
facilities  located thereon to the satisfaction of the Department.









 
	 	
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	PART III




	DIRECT EMPLOYMENT AND ECONOMIC
BENEFITS  
FOR RESIDENTS OF SASKATCHEWAN’S NORTH




	Article 9.0 Intent




	
9.1 	 The
Parties  recognize  that the  operations of the Lessee on and in  respect  of  the  Lease
Lands  represent  a  development  with  the  potential to provide meaningful  employment
and businesses  benefits  to Residents of Saskatchewan’s North.





	
9.2 	 It
is the intent of the Parties to provide a cooperative atmosphere for  the  Lessee  to
maximize  project-related  employment  and  economic  opportunities for Residents of
Saskatchewan’s  North as defined in the  Seabee Project Human Resource Development
Agreement.





	
9.3 	 The
Parties  agree that the  provisions  of this Part of the  Agreement  establish a mutually
agreed upon framework of reasonable  expectations  and  measurable  objectives  in
sufficient  detail to  facilitate  the  Parties’  attainment  of  these  objectives  and
to  allow  effective  monitoring  and  evaluation  of the Parties’  performance.  The
Parties  further  agree  that the  commitments  contained  in this  Part III are  subject
to social  and  economic  factors,  and good  Canadian  mining  practice.





	
9.4 	 The
Lessee  shall  use  its  best  efforts  to  establish  employment,  contracting  and
local  purchasing  policies  and  practices,  and  development programs consistent with
the intent of this Article.





	
9.5 	 The
Parties  expressly  acknowledge and agree that nothing in this Part  III is  intended  to
or does  require  the  Parties  to  undertake  any  practice or policy  which
contravenes  any  provision  of The Canadian  Human Rights Act or The Saskatchewan Human
Rights Code, any Regulations  enacted  pursuant  thereto or any policy or  guidelines of
the Canadian  Human Rights Commission or the Saskatchewan Human Rights Commission.





	Article 10.0 Employment Policies and Practices




	
10.1 	 The
Lessee  shall,  in  consultation  with  Saskatchewan  Learning  and  Saskatchewan
Northern  Affairs,  use its best efforts to establish and  implement  northern
employment  policies  and  practices  affording  preferential  consideration  to
Residents of  Saskatchewan’s  North as  exemplified below:






	 	 (a) 	 the Lessee and Saskatchewan Learning
      agree to review and update the existing Human Resource Development Agreement,
      to be completed no later than three (3) months following the signing of
      this Agreement;









 
	 	
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	 	 (b) 	 the Lessee shall prepare and submit
      a Human Resource Development Plan each year to Saskatchewan Learning in
      accordance with the Human Resource Development Agreement referred to in
      Article 10.1(a); and
	 	 	 
	 	(c)	special recruiting efforts in northern
      communities undertaken in cooperation with local governments, First Nations,
      Metis and federal and provincial agencies.











	
10.2 	 The
Lessee shall, where practicable,  use its best efforts to cause all  contractors  working
on site to adopt similar  policies of  employment,  recruitment  and reporting that will
contribute to the  achievement of  the intent as stated in Article 9.0.





	Article 11.0 Training and Development Program




	
11.1 	 Both
Parties agree that the Lessee has the ultimate  responsibility for  the establishment of
internal  training programs  necessary to meet its  needs on the Lease Lands.





	
11.2 	 The
Lessee shall, to the extent practicable,  upgrade and train its  employees in relation to
the  Lessee’s  needs and  obligations  and  ensure a positive work  environment which is
conducive to employees, in particular Residents  of Saskatchewan’s North, achieving
increased knowledge and accepting  greater  responsibility in their employment
opportunities  with the  Lessee.





	
11.3 	 The
Parties agree that ongoing and progressive  on-the-job  training is  an  effective
approach to meeting the intent of this Part III and that  such training will be offered
to the Lessee’s employees,  in particular  Residents  of  Saskatchewan’s  North,  to the
extent  practicable.  The  Lessee further agrees that, to the extent practicable, it will
use best  efforts to ensure its  contractors’  employees  are  provided  the same
on-the-job training by the contractors.





	
11.4 	 The
Government of Saskatchewan shall use its best efforts to provide basic  education and
literacy training which will make the transfer of skills on-the-job more  effective, and
the Lessee will cooperate with the Government of Saskatchewan in  this regard, where
practicable.  It is agreed that the provision of opportunities for  professional and
technical education in the Northern Saskatchewan Administration  District would assist
Residents of Saskatchewan’s North to compete for a wider  range of jobs associated with
the Seabee Project.





	
11.5 	 With
the  support  and  cooperation  of  Saskatchewan  training  institutions and such other
accreditation-granting bodies as may be  involved from time to time, the Lessee  shall
use its best  efforts to organize and  implement  its training  programs  so  that
employees,  in  particular  Residents  of  Saskatchewan’s North, completing the training









 
	 	
11	 


 

 












	 	will be able to use the skills acquired
      and time spent as credit towards certification or status recognized in Saskatchewan.





	
11.6 	 Where
it is mutually  advantageous  and  agreeable to the Lessee and an  employee,  the  Lessee
will take the  steps  necessary  to record  the  details of employment  with the northern
office of  Apprenticeship  and  Trade  Certification,  according  to  The  Apprenticeship
and  Trade  Certification Act.





	Article 12.0 Commercial Opportunities




	
12.1 	 The
Lessee  shall  encourage  businesses  located  in  the  Northern  Saskatchewan
Administration  District to supply  goods and services to  the Seabee project through:






	 	(a)	 adoption of the
      following practices:
	 	 	 	 
	 	 	(i)	annually preparing and submitting a
      five-year rolling Business Opportunities Forecast, the first two years of
      which shall be complete with such information, benchmarks and processes
      as will enable performance monitoring for the Seabee project and the last
      three years of which shall contain general business trend information. The
      initial Business Opportunities Forecast shall be completed and submitted
      to the Economic and Community Development Division, Saskatchewan Northern
      Affairs within 3 months following the execution of this Agreement. Thereafter,
      an updated Business Opportunities Forecast will be prepared and submitted
      annually on or before November 1;
	 	 	 	 
	 	 	(ii)	maintenance of ongoing contact and liaison
      with the business community in northern Saskatchewan and the Economic and
      Community Development Division, Saskatchewan Northern Affairs; and
	 	 	 	 
	 	 	(iii)	provision of public tender documents
      at one or more locations in northern Saskatchewan when contracts for work
      at the Seabee Project are to be awarded by public tender.
	 	 	 	 
	 	(b)	adherence to the following practices,
      where consistent with the economics of the Seabee Project and good Canadian
      mining practice:
	 	 	 	 
	 	 	(i)	fragmentation of contracts, requests
      for proposals or invitations to quote on the supply of goods and services;
      and
	 	 	 	 
	 	 	(ii) 	the establishment of bids or quotes
      on invitational bases.







 
	 	
12	 


 

 












	
12.2 	 The
Lessee  agrees that it is  desirable  and that it will use its best  efforts to require
all contractors working on site to procure goods and  services from northern businesses.





	Article 13.0 Compensation




	
13.1 	 The
Lessee shall satisfy the Minister of Saskatchewan  Northern Affairs  that any individuals
who, immediately prior to the establishment of the  original Surface Lease  Agreement,
used or occupied the Lease Lands by  way  of a  lease,  license  or  permit  granted  by
the  Government  of  Saskatchewan,  shall be compensated  for their actual  monetary
losses  arising out of this  disposition,  and shall  disclose to such Minister  the
names of such individuals.





	
13.2 	 Prior to March 31st
      each year, the Lessee shall prepare and submit a Compensation Report to
      the Resource and Industry Development Division, Saskatchewan Northern Affairs,
      in a format prescribed by the Division, detailing any compensation paid
      during the course of the year under report, for actual monetary losses arising
      as a result of this Agreement, to individuals who had used or occupied the
      Lease Lands prior to the effective date of this Agreement. Notwithstanding
      the foregoing, the Lessee’s obligation to submit a Compensation Report
      is conditional upon the Lessee receiving, and the Lessee shall request,
      the consent of affected individuals to the release of the information contained
      in the Compensation Report to the Resource and Industry Development Division.
      The absence of any one individual’s consent shall not prevent the preparation
      and submission of this Report with respect to other affected, consenting
      individuals.





	Article 14.0 Monitoring




	
14.1 	 The
Parties  agree that the  Government  of  Saskatchewan  has primary  responsibility  for
monitoring the success of activities  undertaken to  address the objectives of Part III
of this Agreement.





	
14.2 	 Pursuant
to Article 14.1, and in a spirit of cooperation, the Parties agree:






	 	 (a) 	 to establish and maintain an open dialogue
      for the timely exchange of relevant information; and
	 	 	 
	 	(b)	that to the extent possible without
      breaching confidentiality and/or proprietary interests, such information
      will be shared in public forums.











	
14.3 	 The
Lessee shall prepare and file with the Northern Office, Saskatchewan Learning,
employment statistics for the Seabee Project and on behalf of its on-site contractors,
which reflect the degree of achievement of the objectives of this Part III.  These









 
	 	
13	 


 

 












	 	statistics shall be prepared and submitted
      in accordance with the terms of the Human Resource Development Agreement
      for this project or as otherwise reasonably requested by the Northern Office
      of Saskatchewan Learning.





	
14.4 	 Prior to March 31st
      each year, the Lessee shall prepare and submit a Northern Business Participation
      Report to the Resource and Industry Development Division, Saskatchewan Northern
      Affairs, in a form acceptable to the Division, detailing:






	 	 (i) 	 the nature (character), by suitable
      categories, and value of goods and services purchased during the year under
      report, in the construction, operation and reclamation and decommissioning
      phases of the Seabee Project;
	 	 	 
	 	(ii)	separate information regarding the nature
      (character) and value of goods and services purchased during the year under
      report, in the phases referred to in (i) above, from northern businesses;
      and
	 	 	 
	 	(iii) 	the activities undertaken by the operator
      of the Seabee Project and its on-site contractors to achieve the intent
      of this Part III of the Agreement and any objectives as may have been set
      forth in the Business Opportunities Forecast for the year under report.










 
	 	
14	 


 

 
















	PART IV




	MISCELLANEOUS PROVISIONS




	Article 15.0 Compliance with Relevant Statutes




	
15.1 	 The
Lessee  shall  perform,  observe  and comply with all laws in force  from time to time in
the Province of  Saskatchewan  including,  without  limiting the generality of the
foregoing,  provisions of the following  Saskatchewan  Statutes:  The Provincial Lands
Act, The Forest Resources  Management  Act, The Wildlife Act,  1997, The  Occupational
Health and  Safety Act 1993, The Government Organization Act, The Mineral Resources  Act
1985,  The Ground Water  Conservation  Act, The Litter Control Act,  The Clean Air Act,
The  Environmental  Assessment  Act, The Boiler and  Pressure  Vessel Act,  The
Electrical  Inspection  Act 1993,  The Fire  Prevention  Act 1992,  The Gas  Inspection
Act 1993, The Passenger and  Freight  Elevator  Act, The Radiation  Health and Safety Act
1985,  The  Public Health Act 1994,  The  Environmental  Management  and Protection  Act,
The  Dangerous  Goods  Transportation  Act,  The  Ozone-Depleting  Substances Control
Act, 1993, The Pest Control Products  (Saskatchewan)  Act, The Water Corporation Act, and
The Crown Minerals Act.





	Article 16.0 Termination of Agreement




	
16.1 	 In
the event the Lessee fails to pay the rent  required  under  Article  2.0 or any part
thereof when due, whether formally  demanded or not, or  fails to observe or perform the
covenants,  conditions,  provisos  and  stipulations  herein  agreed to be observed  and
performed in Articles  2.0, 3.0, 4.0, 6.0, 7.0, 8.0, 15.0,  18.0, 19.0, and 23.0, the
Minister  may give written notice (“Default Notice”) to the Lessee specifying
the  failure. The Lessee shall thereupon:






	 	 (a) 	 remedy such failure within thirty (30)
      days after receiving the Default Notice; or
	 	 	 
	 	(b) 	if the failure is such that it cannot
      be remedied within the thirty (30) day period, promptly and in any event
      within the thirty (30) day period, commence and diligently continue thereafter
      to remedy such failure and take any steps required to ensure that the failure
      will not occur again.











	
16.2 	 If
a Default  Notice is given and if the Lessee does not proceed in one  of the manners
contemplated  in Article 16.1 or 16.3, the Minister may  terminate  this  Agreement by
giving  written notice to the Lessee that  this  Agreement is  terminated  on such date
as may be specified in the  written notice and, thereupon, this Agreement shall be
terminated.









 
	 	
15	 


 

 













	
16.3 	 The
Lessee  may,  prior to the  expiration  of the  thirty  (30)  days  referred to in
Article 16.1,  apply to the Minister for relief from the  requirements which have given
rise to the failures set out in a Default  Notice.  The  Minister  may  grant  relief
from  any  of  the  said  requirements,  and in granting  such relief the Minister may
establish  alternative  procedures and requirements  that the Lessee shall fulfil.  If
the Lessee fails to comply with the decision of the Minister  within  a further  thirty
(30) days, the Minister may, by notice to the Lessee,  terminate this Agreement.





	
16.4 	 The
Minister  shall be  entitled  to waive all  rights of  termination  arising  under this
Agreement  by reason of any default and  thereupon  this Agreement and the Lessee’s
rights  hereunder shall be construed to  continue as though no such default had occurred.
All such waivers must  be in writing and signed by the  Minister and shall not  prejudice
any  right of the Minister in the case of any other default.





	
16.5 	 This
Agreement  does not  restrict  the Lessee from  commencing  legal  action in a court of
law should the Minister terminate this Agreement.





	Article 17.0 Arbitration





	17.1 	(a)	  Subject to Article
      17.1(b), disputes arising out of the interpretation, performance or breach
      of any of the Articles of this Agreement, other than the Articles set out
      in Part II and Article 22.1, may be submitted by either Party to arbitration.
      This provision shall not limit the requirements, provisions or powers conferred
      on any minister or official as contained in any statute of the Province
      of Saskatchewan or Regulations thereunder.
	 	 	 	 
	 	(b)	The Lessee may submit a decision of
      an adjudicator, made pursuant to the appeal provisions referred to in Article
      7.3(b), to arbitration, provided however that:
	 	 	 	 
	 	 	(i) 	such reference may only be made if the
      decision of the adjudicator is relied upon such that it results in a written
      notice (a “Termination Notice”) being given by the Minister to
      the Lessee that this Agreement is being terminated, as provided for in Articles
      16.2 and 16.3, and
	 	 	 	 
	 	 	(ii)	such reference is to be filed within
      thirty (30) days of the Lessee receiving a Termination Notice.
	 	 	 	 
	 	 	The submission
      of the dispute to arbitration does not stay the operation of the adjudicator’s
      decision.







	 










 
	 	
16	 


 

 

















	
17.2 	 The
Arbitration Act 1992 shall apply to any arbitration hereunder.





	
17.3 	 The
Parties  shall agree on the  arbitrator.  If the  arbitrator is not  selected  within ten
(10) days after notice of  arbitration is given, a  three-person  arbitration  board
shall  conduct the  arbitration.  Each  Party shall,  within seven (7) days from the
expiration of the ten (10)  day period,  appoint one person to the arbitration board and
thereafter  immediately inform the other Party of the name of its nominee.  The two
nominees shall,  within seven (7) days, agree on a third arbitrator who  shall be the
chairperson of the arbitration  board. In the event either  Party  fails  within the time
specified  to select its  nominee or the  nominees of the two Parties fail to agree upon
a third  arbitrator then  the third arbitrator or the arbitrator to represent the Party
which has  not  appointed  its nominee,  as the case may be, shall be appointed by  the
Chief  Justice of the Court of Queen’s  Bench for the  Province  of  Saskatchewan.  Each
arbitrator  shall be a person who, by education and  experience, is qualified to
adjudicate the matter.





	
17.4 	 The
arbitration  shall be conducted in La Ronge,  Saskatchewan or other  such place as the
arbitrator or chairperson of the arbitration board as  the case may be, may determine,
and the arbitrator or arbitration board  shall hear and dispose of the dispute,
difference or question submitted  in such manner as he in his discretion shall determine,
but in doing so  he shall be  required  to receive  the  submissions  of the  Parties in
respect of the said question,  dispute or difference. The arbitrator or  arbitration
board in the conduct of the proceedings shall not be bound  by the Rules of the Court of
the  Province  of  Saskatchewan  or by the  traditional rules of evidence.





	
17.5 	 The
decision  of the single  arbitrator  or a simple  majority  of the  arbitration  board
shall be binding upon the Parties.  In the event the  arbitration  board is unable to
arrive at a simple  majority  decision,  the decision of the chairperson shall be binding.





	
17.6 	 The
arbitrator or the arbitration board shall have the authority to include in an award any
of the  following:






	 	 (a) 	a finding that there has been a breach
      of the Agreement;
	 	 	 
	 	(b)	a finding that there has been no breach
      of the Agreement;
	 	 	 
	 	(c)	a finding that although there has been
      a breach of the Agreement, the breach should be excused;
	 	 	 
	 	(d) 	an order for specific performance as
      could be awarded by a Judge of the Court of Queen’s Bench;
	 	 	 
	 	(e) 	an order to pay a penalty for a breach
      of the Agreement;










 
	 	
17	 


 

 
















	 	 (f) 	 an order to pay a fixed sum daily by
      way of penalty until the Party to pay discontinues or remedies the breach
      of this Agreement;
	 	 	 
	 	(g)	a direction to pay damages;
	 	 	 
	 	(h) 	an order overturning or confirming a
      decision to terminate this Agreement; and/or,
	 	 	 
	 	(i) 	such other direction or order as is
      deemed necessary and equitable to ensure compliance with the spirit, intent
      and provisions of this Agreement.






	
17.7 	 Where
a dispute has been submitted to  arbitration,  in addition to all  the powers  contained
in Article 17.6 the arbitrator or the arbitration  board may make such interim orders as
it considers  appropriate pending  resolution of the dispute.





	
17.8 	 The
decision  of  the  arbitrator  or  the  arbitration  board  may be  appealed, by either
Party, to the Court of Queen’s Bench. The applicant  shall serve the Notice of Appeal on
the respondent  within fifteen (15)  days of receipt of the decision of the  arbitrator
or the  arbitration  board.





	
17.9 	 Where
any matter is referred to an arbitrator or arbitration board, the  provisions of this
Agreement shall continue in full force until a final  determination  has been made by the
arbitrator or arbitration board and  the period for commencing an appeal under Article
17.8 has expired,  or  if an appeal is made, until a final court decision is issued.





	
17.10 	 Where
the  Lessee  fails to comply  with an order of an  arbitrator  or  arbitration board or,
where an appeal is taken, and the Lessee fails to  comply with the final decision of a
court,  then, if the result of such  failure  to comply is that the  Lessee is in breach
of any of  Articles  2.0,  3.0,  4.0, 6.0, 7.0,  8.0,  15.0,  18.0,  19.0 or 23.0,  then
the  Minister  may give a  Default  Notice  to the  Lessee  pursuant  to the  provisions
of Article 16.1, whereupon the provisions of Article 16 will  be  implemented;  provided
that  if the  decision  of the  arbitrator,  arbitration  board or court is that  there
has been a breach of one of  these Articles and the Minister has  previously  given a
Default Notice  to the Lessee pursuant to Article 16.1 with respect to the breach,  the
remaining provisions of Article 16 will apply and no new Default Notice  need be given by
the Minister.





	Article 18.0 Assignments




	
18.1 	 The
Lessee shall not assign,  transfer or sublet this  Agreement or any  part hereof or any
of the rights or privileges contained herein without  the written  consent of the
Minister,  which shall not be  unreasonably  withheld,  and, in the event an assignment
is made,  the assignee shall  become a Party to this Agreement.










 
	 	
18	 


 

 














	Article 19.0 Indemnity




	
19.1 	 The
Lessee  shall  indemnify  and keep the Minister  harmless  from and  against all
actions,  suits,  claims and demands  arising out of or in  connection with the
operations  carried on by the Lessee, its servants,  employees,  agents,  licensees and
contractors,  in, under or upon the  Lease Lands.  If any claim comes to the attention of
the Minister which  could give rise to a right of indemnity  hereunder,  the Minister
shall  promptly  give written  notice to the Lessee and the Lessee may, if the  Minister
has not elected to do so,  defend such claim,  in which event  the Minister shall, at the
Lessee’s expense,  cooperate with the Lessee  in any  reasonable  way including
providing  such  information  as the  Lessee may  reasonably  request and  allowing the
Lessee to act for, on  behalf and in the name of the Minister for such purposes.  In
defending  such claim,  the Lessee  shall not make any  admission  of liability or  fault
on behalf of the  Minister  without  the  written  consent of the  Minister. If the
Minister elects to defend such claim, the Lessee shall  only be liable in respect of the
costs and expenses of such defence for  those costs and  expenses  which,  reasonably
viewed,  would have been  incurred  in such  defence  by a Lessor  other than the
Government  of  Saskatchewan.





	Article 20.0 Force Majeure




	
20.1 	 If
either Party is delayed, hindered or prevented from the performance of  any of its
obligations under this Agreement,  (hereinafter referred to as  the  “Delay”),
by reason of fire,  flood,  explosion,  acts of God, war,  revolution, civil disturbance,
embargoes,  authorized and lawful acts of  the federal  government or any board,  agency
or other  instrument of the  federal  government,  strikes  or  other  cause  similarly
beyond  the  reasonable  control  of the Party  affected  (except by reason of lack of
funds or the financial  condition of that Party)  (collectively an “Event  of Force
Majeure”) such  performance  shall be excused for the period of  the Delay and any
period within which such  performance is to be effected  shall be extended by the period
of such Delay, subject to the limitations  set out in Article  22.1. No Party shall be
entitled to relief under this  section unless,  within fourteen (14) days after the
commencement of the  Delay,  the Party  claiming  such relief  shall have given  notice
of the  Delay in writing to the other Party.











 
	 	
19	 


 

 


















	Article 21.0 Notices




	
21.1 	 Any
notices  or  communications  required  or  permitted  to be  given  pursuant to this
Agreement  shall be in writing and shall be delivered  to,  or sent by  prepaid
registered  or  certified  mail or  confirmed  facsimile addressed to:





	 	(a) in the case of a notice or communication to
      the Minister:




	 	Legislative Building 

      Regina, Saskatchewan, Canada  S4S 0B3  
Attention: Minister of Saskatchewan
Northern Affairs  
Facsimile: (306) 798-2042





	 	with a copy forwarded to:





	 	Resource and Industry Development Division 

      Saskatchewan Northern Affairs  
Box 5000  
La Ronge,
Saskatchewan, Canada  SOJ 1LO  
Attention:  Executive Director  
Facsimile: (306) 425-4349





	 	and:





	 	Legislative Building 

      Regina, Saskatchewan, Canada  S4S 0B3  A
ttention: Minister of Saskatchewan
Environment  
Facsimile: (306) 787-0395





	 	(b) in the case of a notice or communication to
      the Lessee:




	 	Claude Resources Inc. 

      200 - 224  4th Avenue South  
Saskatoon, Saskatchewan  S7K 4E4  
Attention:
President  
Telephone: (306) 668-7505  
Facsimile:  (306) 668-7500







 
	 	
20	 


 

 












	 	or to such
other  address  as either  Party may notify the other in  accordance  with this Article,
and if so delivered shall be deemed  to have been given when  delivered,  or at the time
of confirmation  of  electronic  transmission  if sent by facsimile if such day is a
business day, otherwise the next business day following,  and if so  mailed shall be
deemed to have been given on the third business day  after the date of  mailing  except
in the case of a mail  strike or  other disruption of postal service in which case it
shall be deemed  to have been given on the third  business  day after such strike or
disruption ceases.





	Article 22.0 Term of Agreement




	
22.1 	 Subject
to the other  provisions  in this  Agreement,  the term of this  Agreement  shall be for
twenty-three  (23)  years,  commencing  on the  effective date.





	
22.2 	 At
any time during the term of this  Agreement,  the Lessee shall be  entitled  on  twelve
(12)  months  written  notice  to apply to the  Minister to terminate  this Agreement or
to surrender any portion of  the Lease Lands, which application shall be granted subject
to terms  and conditions established by the Minister.





	
22.3 	 The
Lessee may apply to the Minister for  approval,  which shall not  be unreasonably
withheld, for a ten (10) year extension to the term  of this  Agreement.  Such
application  shall be made in writing not  less than twelve (12) months  prior to the
expiration  of the term.  All of the  conditions,  covenants and  provisions of this
Agreement  shall continue in force in any approved extension.  In no case shall  the full
term of this  Agreement,  including the  extension,  exceed  thirty-three (33) years.





	
22.4 	 The
Lessee shall on the  termination  of the  Agreement for whatever  cause  (including
expiration of the term) or within six (6) months,  if all  claims  for  rent  and
charges,  if  any,  have  been  duly  satisfied, remove from the Lease Lands all of its
property provided,  however, that if:






	 	 (a) 	 the Lessee does not conform to the
      provisions regarding decommissioning in Article 8.0 of this Agreement; or
	 	 	 
	 	(b) 	the Lessee has not removed the property
      within six (6) months of the termination of this Agreement;
	 	 	 
	 	the  property
      remaining on Lease Lands shall be forfeited to the Government of Saskatchewan
      and shall become and be the property of the Government of Saskatchewan.
      The Minister may recover from the Lessee any reasonable costs incurred for
      the cleanup or removal of property. The Minister may grant an 







	 







 
	 	
21	 


 

 














	 	extension to allow the Lessee sufficient
      time to remove its property, subject to the Lessee showing due cause, and
      subject to the limitations set out in Article 22.1.





	Article 23.0 Place of Business




	
23.1 	 The
Lessee shall  maintain for the duration of this  Agreement  and any  extension  or
renewal  thereof,  an office and place of business of the  operator of the Seabee Project
in the Province of Saskatchewan,  and at  such office shall make  available,  on
reasonable  notice,  any and all  books  and  records  or  copies  thereof  which  the
Government  of  Saskatchewan or its authorized  representatives may require pursuant to
the provisions of this Agreement.





	Article 24.0 Confidentiality




	
24.1.1 	 All
information exchanged between the Parties hereto which either Party  declares  in writing
to be  confidential,  shall be kept  confidential,  except  insofar  as may be  necessary
to  enforce  the  terms  of this  Agreement or except as required by law.





	Article 25.0 Binding Effect




	
25.1 	 This
Agreement  and  everything  herein  contained  shall enure to the  benefit  of,  and  be
binding  upon,  the  respective  successors  and  permitted assignees of the Parties
hereto and the expression “Minister”  shall be  construed  as  including  the
successors  in  office  of the  Minister  of  Saskatchewan  Northern  Affairs  and  the
Minister  of  Saskatchewan  Environment  and shall  include such other members of the
Executive  Council for the Province of Saskatchewan that are designated  by  the
Lieutenant  Governor  in  Council  as  being  the  Ministers  responsible for this
Agreement,  and includes the successors in office  of such other members of the Executive
Council.





	Article 26.0 Other Leases




	
26.1 	 Without
limiting the  requirements,  provisions and powers conferred on  any minister or official
as contained in any statute of the Province of  Saskatchewan or regulations thereunder,
the Minister shall not, without  first consulting with the Lessee,  grant or permit other
surface leases  or other agreements  granting  easement,  tenement or other rights upon
any of the  Lease  Lands  during  the  term of this  Agreement,  or any  extensions
thereof.





	Article 27.0 Scope of Covenants




	
27.1 	 Except
as provided for in Article 23.0,  the covenants of the Lessee in  this  Agreement  have
reference only to the operations of the Lessee to  be conducted  on the Lease Lands and
not to any other  operation of the  Lessee.










 
	 	
22	 


 

 















	Article 28.0 Continuing Obligations




	
28.1.1 	 Notwithstanding
that this Agreement has been terminated or has expired,  the  Lessee  shall  fulfil
requirements  for  decommissioning  and  reclamation  as are set out in Article  8.0,
shall remove its property  from the Lease Lands as set out in Article 22.4 and in
connection  with  such  operations  shall  indemnify  the  Minister as set out in Article
19.1.







 
	 	
23	 


 

 












	PART V




	CONSTRUCTION OF AGREEMENT




	Article 29.0 Interpretation




	
29.1 	 In
this Agreement, unless there is something in the subject matter or context inconsistent
therewith:






	 	 (a) 	the singular shall include the plural
      and the plural shall include the singular; and
	 	 	 
	 	(b)	the masculine shall include the feminine
      or neuter where the context so requires.











	
29.2 	 The
Appendices attached hereto and forming part of this Lease Agreement as of the effective
date hereof  are as follows:






	 	 Appendix “A” -	  	 Seabee Mine Site Map Showing Existing
      Mine Leases and Proposed Annex dated May 1, 2002 
	 	Appendix “B” -	 	“Guidelines for Environmental Protection
      During Road Construction”, Saskatchewan Environment, December, 1993
	 	Appendix “C” -	 	 “Guidelines for Environmental
      Protection During Development and Restoration of Sand and Gravel Pits”,
      Saskatchewan Environment, September, 1983, reprinted November 1987











	 	 To the extent that any provision of
      any of these Appendices is inconsistent with this Agreement, the provisions
      of this Agreement, excluding the Appendix, shall prevail.





	
29.3 	 The
division of this Agreement into Parts and Articles, the provision of a Table of
Contents, and the insertion of headings are for convenience of reference only and  shall
not affect the construction or interpretation hereof.





	
29.4 	 In the event that any other legal entity
      owned, directed or controlled by the Lessee or any of the corporations referred
      to herein collectively as the Lessee, becomes the operator of the Seabee
      Project, then the said entity shall become a Party to this Agreement and
      all references applicable to the Lessee hereunder shall be interpreted as
      referring to the said entity. The Lessee shall ensure that the said entity
      assumes and performs all the obligations and responsibilities of the Lessee
      hereunder.










	
29.5 	 The
Lessee will ensure that any third Party  undertaking  any of the  functions  of the
Lessee  under  this  Agreement  complies  with the  spirit and intent of this Agreement
and all requirements  imposed on  the Lessee as may be applicable to the third Party.









 
	 	
24	 


 

 















	
29.6 	 Any
reference herein:






	 	 (a) 	 to any Act or to any Regulation made
      under any Act is a reference to Saskatchewan laws unless otherwise specifically
      indicated;
	 	 	 
	 	(b)	to any Act or to any Regulations made
      under any Act includes a reference to all orders and statutory instruments
      made pursuant to that Act or Regulations; and
	 	 	 
	 	(c)	to any Act or to any Regulation made
      under any Act includes a reference thereto as may from time to time be re-enacted,
      amended, revised or consolidated, or to any Act or Regulation from time
      to time passed in substitution therefor or in relation to like matters.






	
29.7 	 To
the extent that any provision of this Agreement is inconsistent with  the provisions of
any provincial  operating permit issued to the Lessee  in connection with the Seabee
project, the provisions of such operating  permit(s) shall prevail.





	Article 30.0 Entire Agreement




	
30.1 	 This
Agreement together with all documents and agreements  incorporated  by reference
constitutes and contains the entire and only Surface Lease  Agreement between the
Minister and the Lessee concerning the use of the  Lease Lands and supersedes and cancels
any and all pre-existing Surface  Lease Agreements and understandings relevant thereto.










 
	 	
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	The Parties execute this Agreement on the date
set opposite their signature.




	CLAUDE RESOURCES INC.





	Per: /s/ Neil McMillan 	Date: June 3, 2002






	Per: /s/  Arnie E. Hillier 







	MINISTER OF SASKATCHEWAN NORTHERN AFFAIRS





	Per: /s/ Buckley Belanger 	Date: June 4, 2002







 
	 	
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