----

----

----

|                                                                             |   |
|----------------------------------------------------------------------------------|--------|
| ARTICLE I DEFINITIONS AND      CROSS-REFERENCES                                  | 2      |
| 1.1      Definitions                                                             | 2      |
| 1.2      Cross-References                                              | 8      |
| ARTICLE      II NAME, PURPOSES AND TERM                                          | 8      |
| 2.1      General                                                                 | 8      |
| 2.2      Name                                                                    | 8      |
| 2.3      Purposes                                                                | 8      |
| 2.4      Limitation                                                              | 9      |
| 2.5      Term                                                                    | 9      |
| 2.6      Registered Agent/Registered Office                            | 9      |
| ARTICLE      III REPRESENTATIONS AND WARRANTIES; TITLE TO ASSETS;    INDEMNITY   | 9      |
| 3.1      Representations and Warranties of All Parties                           | 9      |
| 3.2      Representations and Warranties of NFUR, UR-Energy and NFU               | 10     |
| 3.3      Disclosures                                                             | 12     |
| 3.4      Record Title                                                            | 12     |
| 3.5      Loss of Title                                                           | 13     |
| 3.6      Royalties, Production Taxes and Other Payments Based on      Production | 13     |
| 3.7      Indemnities/Liabilities as Between Members                              | 13     |
| 3.8      Limitation of Liability                                                 | 14     |
| 3.9      No Waiver of Limited Liability or Reliance by ThirdParties              | 14     |
| 3.10      Company Indemnification                                      | 15     |
| ARTICLE      IV RELATIONSHIP OF MEMBERS                                          | 15     |
| 4.1      Limitation on Authority of Members                                      | 15     |
| 4.2      No Partnership                                                          | 15     |
| 4.3      Federal Tax Elections and Allocations                                   | 15     |
| 4.4      State Income Tax                                                        | 15     |
| 4.5      Tax Returns                                                             | 15     |
| 4.6      Other Business Opportunities                                            | 15     |
| 4.7      Waiver of Rights to Partition or Other Division of Assets               | 16     |
| 4.8      Bankruptcy of Member                                                    | 16     |
| 4.9      Implied Covenants                                                       | 16     |
| 4.10      No Third-Party Beneficiary Rights                                      | 16     |
| 4.11      Agreements with Third Parties                                          | 16     |
| 4.12      No Certificate                                                         | 16     |
| 4.13      Covenants                                                              | 16     |
|                                                                             |   |
|                                                                             |   |
| ARTICLE      V CONTRIBUTIONS BY AND INTERESTS OF MEMBERS                         | 16     |
| 5.1      Membership Interests                                                    | 16     |
| 5.2      Initial Membership Interests                                            | 16     |
| 5.3      NFUR Initial Contribution                                               | 16     |
| 5.4      Right to Acquire Membership Interest                                    | 17     |
| 5.5      Schedule of Eligible Exploration Expenditures                           | 17     |
| 5.6      Overpayment of Eligible Exploration Expenditures                        | 17     |
| 5.7      Schedule of Share Issuances                                             | 18     |
| 5.8      Cash Payment in lieu of Eligible Exploration Expenditures               | 18     |

----

| 5.9      Extension                                                                          | 18     |
|---------------------------------------------------------------------------------------------|--------|
| 5.10      Additional Contributions                                                          | 18     |
| 5.11      Changes in Membership Interest                                                    | 18     |
| 5.12      Elimination of Minority Interest                                                  | 19     |
| 5.13      Continuing Liabilities upon Adjustments of Membership      Interests              | 19     |
| 5.14      Documentation of Adjustments to Membership Interests                              | 20     |
| 5.15      Grant of Lien and Security Interest                                               | 20     |
| 5.16      Subordination of Interests                                              | 20     |
| ARTICLE      VI MANAGEMENT COMMITTEE                                                        | 20     |
| 6.1      Organization and Composition                                                       | 20     |
| 6.2      Decisions                                                                          | 20     |
| 6.3      Meetings                                                                           | 21     |
| 6.4      Action Without Meeting in Person                                                   | 21     |
| 6.5      Matters Requiring Approval                                                         | 22     |
|                                                                                        |   |
|                                                                                        |   |
| ARTICLE      VII MANAGER                                                                    | 22     |
| 7.1      Appointment                                                                        | 22     |
| 7.2      Powers and Duties of Manager                                                       | 22     |
| 7.3      Standard of Care                                                                   | 26     |
| 7.4      Resignation; Deemed Offer to Resign                                                | 26     |
| 7.5      Payments To Manager                                                                | 27     |
| 7.6      Transactions With Affiliates                                                       | 27     |
| 7.7      Activities During Deadlock                                                         | 27     |
|                                                                                        |   |
|                                                                                        |   |
| ARTICLE      VIII PROGRAMS AND BUDGETS                                                      | 27     |
| 8.1      Initial Program and Budget                                                         | 27     |
| 8.2      Operations Pursuant to Programs and Budgets                                        | 27     |
| 8.3      Presentation of Programs and Budgets                                               | 28     |
| 8.4      Review and Adoption of Proposed Programs and Budgets                               | 28     |
| 8.5      Election to Participate                                                            | 28     |
| 8.6      Recalculation or Restoration of Reduced Interest Based on Actual      Expenditures | 29     |
| 8.7      Pre-Feasibility Study Program and Budgets                                          | 30     |
| 8.8      Completion of Pre-Feasibility Studies and Selection of Approved      Alternatives  | 31     |
| 8.9      Programs and Budgets for Feasibility Study                                         | 32     |
| 8.10      Development Programs and Budgets; Project Financing                               | 33     |
| 8.11      Expansion or Modification Programs and Budgets                                    | 33     |
| 8.12      Budget Overruns; Program Changes                                                  | 33     |
| 8.13      Emergency or Unexpected Expenditures                                              | 34     |
|                                                                                        |   |
|                                                                                        |   |
| ARTICLE      IX ACCOUNTS AND SETTLEMENTS                                                    | 34     |
| 9.1      General Accounting and Monthly Statements                                          | 34     |
| 9.2      Cash Calls                                                                         | 34     |
| 9.3      Failure to Meet Cash Calls                                                         | 34     |
| 9.4      Cover Payment                                                                      | 35     |
| 9.5      Remedies                                                                           | 35     |
| 9.6      Audits                                                                   | 37     |
| ARTICLE      X DISPOSITION OF PRODUCTION                                                    | 38     |
| 10.1      No Taking In Kind                                                                 | 38     |

----

| ARTICLE      XI RESIGNATION, DISSOLUTION AND TERMINATION                             | 38 |
|--------------------------------------------------------------------------------------|----|
| 11.1      Termination and Dissolution                                                | 38 |
| 11.2      Termination of Right to Acquire                                            | 38 |
| 11.3      Resignation                                                                | 38 |
| 11.4      Disposition of Assets on Termination                                       | 39 |
| 11.5      Filing of Statement of Dissolution                                         | 39 |
| 11.6      Non-Compete Covenants                                                      | 39 |
| 11.7      Right to Data After Termination                                            | 39 |
| 11.8      Continuing Authority                                                       | 39 |
| ARTICLE      XII ACQUISITIONS WITHIN AREA OF INTEREST                                | 40 |
| 12.1      General                                                                    | 40 |
| 12.2      Notice to Non-Acquiring Member                                             | 40 |
| 12.3      Option Exercised                                                           | 40 |
| 12.4      Option Not Exercised                                                       | 41 |
| ARTICLE      XIII ABANDONMENT AND SURRENDER OF PROPERTIES                            | 41 |
| 13.1      Abandonment and Surrender                                                  | 41 |
| ARTICLE      XIV SUPPLEMENTAL BUSINESS AGREEMENT                                     | 41 |
| 14.1      Supplemental Agreements                                                    | 41 |
| ARTICLE      XV TRANSFER OF INTEREST; PRE-EMPTIVE RIGHT                              | 41 |
| 15.1      General                                                                    | 41 |
| 15.2      Limitations on Free Transferability                                        | 42 |
| 15.3      Pre-emptive Right                                                          | 43 |
| ARTICLE      XVI DISPUTES                                                            | 44 |
| 16.1      Governing Law                                                              | 44 |
| 16.2      Arbitration                                                                | 44 |
| ARTICLE      XVII CONFIDENTIALITY, OWNERSHIP, USE AND DISCLOSURE OF      INFORMATION | 45 |
| 17.1      Business Information                                                       | 45 |
| 17.2      Member Information                                                         | 45 |
| 17.3      Permitted Disclosure of Confidential Business Information                  | 45 |
| 17.4      Disclosure Required By Law                                                 | 46 |
| 17.5      Public Announcements                                                       | 46 |
| 17.6      Applicability to Affiliates                                                | 46 |
| ARTICLE      XVIII  GENERAL PROVISIONS                                     | 46 |
| 18.1      Notices                                                                    | 46 |
| 18.2      Guarantee                                                                  | 49 |
| 18.3      Number/Gender                                                              | 49 |
| 18.4      Currency                                                                   | 49 |
| 18.5      Headings                                                                   | 49 |
| 18.6      Waiver                                                                     | 49 |
| 18.7      Modification                                                               | 49 |
| 18.8      Force Majeure                                                              | 49 |
| 18.9      Rule Against Perpetuities                                                  | 50 |
| 18.10      Further Assurances                                                        | 50 |

----

| 18.11      Entire Agreement; Successors and Assigns        | 50 |
|------------------------------------------------------------|----|
| 18.12      Counterparts; Facsimile/Electronic Transmission | 50 |
| 18.13      Survival                                        | 50 |

|           |                                                 |
|----------------|------------------------------------------------------|
| EXHIBITS       |                                                 |
|           |                                                 |
| Exhibit      A | Initial      Company Properties and Area of Interest |
| Exhibit      B | Permitted      Encumbrances                          |
| Exhibit      C | Net      Proceeds Calculation                        |
| Exhibit      D | Pre-emptive      Rights                              |
| Exhibit      E | Tax      and Accounting Matters                      |

----

----

| 1.1 | Definitions.  In      this Agreement and in the Exhibits and the Recitals hereto, unless the      context otherwise requires, the following expressions will have the      following meanings: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | “Act” means the Colorado      Limited Liability Company Act, CRS § 7-80-101 et  seq. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | “Affiliate” means any      person, partnership, limited liability company, joint venture,      corporation, or other form of enterprise which Controls, is Controlled by,      or is under common Control with aMember; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “Agreement” means this      Exploration, Development and Mine Operating Agreement, including all      amendments and modifications, and all Exhibits, all of which are      incorporated by this reference; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | “Approved Alternative”      means a Development and Mining alternative selected by the Management      Committee from various Development and Mining alternatives analyzed in the      Pre-Feasibility Studies; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | “Area of Interest” means      the area on the ground outlined on the attached Exhibit A      (A-1); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (f) | “Assets” means the      Initial Company Properties, Products, Business Information, and all other      real and personal property, tangible and intangible, including existing or      after-acquired Company Properties and all contract rights held for the      benefit of the Company hereunder; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | “Budget” means a detailed      estimate of all costs to be incurred and a schedule of Eligible      Exploration Expenditures to be made by TargetSub or cash advances to be      made by the Members with respect to aProgram; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | “Business” means the      conduct of the business of the Company in furtherance of the purposes set      forth in Section 2.3 and in accordance with this      Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | “Business Account” means      the account maintained by the Manager for the Business of the      Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (j) | “Business Information”      means the terms of this Agreement, and any other agreement relating to the      Business, the Existing Data, and all additional Data, information,      knowledge and know-how, in whatever form and however communicated      (including, without limitation, Confidential Information), developed,      conceived, originated or obtained by either Member in performing its      obligations under this Agreement.  The term “Business Information”      shall not include any improvements, enhancements, refinements or      incremental additions to Member Information that are developed, conceived,      originated or obtained by either Member in performing its obligations      under this Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | “Capital Account” means      the account maintained for each Member in accordance with Exhibit      E; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (l) | “Commercial Production”      means the commercial exploitation of Ore but does not include      milling for the purpose of testing or milling by a pilot plant or during      the initial tune-up period of a plant.  Commercial Production      will be deemed to have commenced: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if      a plant is located on a Company Property, on the first day of the month      following the first period of thirty (30) consecutive days during      which Ore has been processed through such plant at an average rate of not      less than 80% of the initial rated capacity of such plant,    or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if      no plant is located on a Company Property, on the first day of the month      following the first period of thirty (30) consecutive days during which      Ore has been shipped from the Company Property at the rate of not less      than 80% of the milling rate specified in a Feasibility Study recommending      placing the Company Property into Commercial  Production; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | “Company” means a      Colorado limited liability company to be formed by NFUR and TargetSub as      its initial Members as provided in this  Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | “Company Properties”      means those interests in real property described in Exhibit A and all      other interests in real property within the Area of Interest that are      acquired and held subject to this Agreement from time to time and “Company Property” means      any one of such Company Properties; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | “Confidential      Information” means all information, Data, knowledge and know-how      (including, but not limited to, formulas, patterns, compilations,      programs, devices, methods, techniques and processes) that derives      independent economic value, actual or potential, as a result of not being      generally known to, or readily ascertainable by, third parties and which      is the subject of efforts that are reasonable under the circumstances      to |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (p) | “Continuing Obligations”      mean obligations or responsibilities that are reasonably expected to      continue or arise after Operations on a particular area of the      Company  Properties have ceased or are suspended, such as future      monitoring, stabilization, or Environmental  Compliance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | “Control” used as a verb      means, when used with respect to an entity, the ability, directly or      indirectly through one or more intermediaries, to direct or cause the      direction of the management and policies of such entity through (i) the      legal or beneficial ownership of voting securities or membership      interests; (ii) the right to appoint managers, directors or corporate      management; (iii) contract; (iv) operating agreement; (v) voting trust; or      otherwise; and, when used with respect to a person, means the actual or      legal ability to control the actions of another, through family      relationship, agency, contract or otherwise; and “Control” used as a noun      means an interest which gives the holder the ability to exercise any of      the foregoing powers; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | “Cover Payment” shall      have the meaning as set forth in Section 9.4 of thisAgreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (s) | “Data” means maps, drill      logs and other drilling data, core tests, pulps, reports, surveys, assays,      analyses, production reports, operations, technical, accounting and      financial records, and other material information either acquired or      developed in Operations on the Company Properties after the Effective      Date; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | “Development” means all      preparation (other than Exploration) for the removal and recovery of      Products, including construction and installation of a mill or any other      improvements to be used for the mining, handling, milling, processing, or      other beneficiation of Products, and all related Environmental      Compliance; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | “Effective Date” means      the date set forth in the preamble to this  Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (v) | “Eligible Exploration      Expenditures,” during the time      TargetSub is earning the 75% Membership Interest, shall mean all      exploration expenditures for geological studies, geological database      compilations, drilling, geophysical logging, geophysical surveys,      hydro-engineering testing, land reclamation, land surveys, laboratory      studies, environmental studies and engineering feasibility studies,      maintaining insurance for the Company pursuant to Subsection 7.2(i) and directive of the Management      Committee, maintaining all property, including appropriate county or BLM      or other filing and maintenance fees, rental payments and royalty payments      in relation to the Company Properties, including expenditures not to      exceed $750,000 of Eligible Exploration Expenditures for new acquisitions      of Company Properties in the Area of Interest or any additional amount for      such acquisitions as may be approved by the Management      Committee; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | “Encumbrance” or “Encumbrances” means all      interests, mortgages, deeds of trust, charges, royalties, security      interests, pledges, liens, encumbrances, net profits interests, royalties      or overriding royalty interests, other payments out of production,      actions, claims, other burdens, demands or equities of any nature      whatsoever or however arising |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (x) | “Environmental      Compliance” means actions performed during or after Operations to      comply with the requirements of all Environmental Laws or contractual      commitments related to reclamation of the Company Properties or other      compliance with Environmental Laws; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | “Environmental Laws”      means Laws aimed at reclamation or restoration of the Company Properties;      abatement of pollution; protection of the environment; protection of      wildlife, including endangered species; ensuring public safety from      environmental hazards; protection of cultural or historic resources;      management, storage or control of hazardous materials and substances;      releases or threatened releases of pollutants, contaminants, chemicals or      industrial, toxic or hazardous substances as wastes into the environment,      including without limitation, ambient air, surface water and groundwater;      and all other Laws relating to the manufacturing, processing,      distribution, use, treatment, storage, disposal, handling or transport of      pollutants, contaminants, chemicals or industrial, toxic or hazardous      substances or wastes; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | “Environmental      Liabilities” means any and all claims, actions, causes of action,      damages, losses, liabilities, obligations, penalties, judgments, amounts      paid in settlement, assessments, costs, disbursements, or expenses      (including, without limitation, attorneys’ fees and costs, experts’ fees      and costs, and consultants’ fees and costs) of any kind or of any nature      whatsoever that are asserted against either Member, by any person or      entity other than the other Member, alleging liability (including, without      limitation, liability for studies, testing or investigatory costs, cleanup      costs, response costs, removal costs, remediation costs, containment      costs, restoration costs, corrective action costs, closure costs,      reclamation costs, natural resource damages, property damages, business      losses, personal injuries, penalties or fines) arising out of, based on or      resulting from (i) the presence, release, threatened release, discharge or      emission into the environment of any hazardous materials or substances      existing or arising on, beneath or above the Company Properties and/or      emanating or migrating and/or threatening to emanate or migrate from the      Company Properties to off site properties; (ii) physical disturbance of      the environment; or (iii) the violation or alleged violation of any      Environmental Laws; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | “Equity Account” means      the account maintained for each Member by the Manager in accordance with      Subsection 7.2(o) of the      Agreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | “Existing Data” means      maps, drill logs and other drilling data, core tests, pulps, reports,      surveys, assays, analyses, production reports, operations, technical,      accounting and financial records, and other material information acquired      or developed in operations within the Area of Interest prior to the      Effective Date; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | “Expansion” or “Modification” means (i)      a material increase in mining or production capacity; (ii) a material      change in the recovery process; or (iii) a material change in waste or      tailings disposal methods.  An increase or change shall be      deemed “material” if it is anticipated to cost more than 10% of original      capital costs attributable to the Development of the mining or production      capacity, recovery process or waste or tailings disposal facility to be      expanded or modified; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (dd) | “Exploration” means all      activities directed toward ascertaining the existence, location, quantity,      quality or commercial value of deposits of Products, including but not      limited to additional drilling required after discovery of potentially      commercial mineralization, and including related Environmental      Compliance; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | “Feasibility Contractors”      means one or more engineering firms approved by the Management Committee      for purposes of preparing or auditing any Pre-Feasibility Study or      Feasibility Study; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ff) | “Feasibility Study” means      a report to be prepared following selection by the Management Committee of      one or more Approved Alternatives.  The Feasibility Study shall      include a review of information presented in any Pre-Feasibility Studies      concerning the Approved Alternative(s).  The Feasibility Study      shall be in a form and of a scope generally acceptable to reputable      financial institutions that provide financing to the mining      industry; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (gg) | “Governmental Fees”      means all location fees, mining claim rental fees, mining claim      maintenance payments and similar payments required by Law to locate and      hold unpatented mining claims; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (hh) | “Initial Contribution”      means that contribution by NFUR pursuant to Section 5.3 of thisAgreement; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | “Initial Company      Properties” means all properties as more particularly described in      Exhibit A; |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (jj) | “Law” or “Laws” means all      applicable federal, state and local laws (statutory or common), rules,      ordinances, regulations, grants, concessions, franchises, licenses,      orders, directives, judgments, decrees, and other governmental      restrictions, including permits and other similar requirements, whether      legislative, municipal, administrative or judicial in    nature; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (kk) | “Management Committee”      means the committee established under Article VI of this      Agreement; |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | (ll) | “Manager” means the      person or entity appointed under Article VII of the Agreement to manage      the Company, its Business and Operations, or any successor      Manager; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (mm) | “Member” means either of      TargetSub or NFUR and their respective successors and permitted assigns      that own a Membership Interest in the Company from time to time and “Members” means together      TargetSub and NFUR and their respective successors and permitted assigns      that own a Membership Interest in the Company from time to      time; |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (nn) | “Member Information”      means all information, data, knowledge and know-how, in whatever form and      however communicated (including, without limitation, Confidential      Information but excluding the Existing Data), which, as shown by written      records, was developed, conceived, originated or obtained by a Member: (a)      prior to entering into this Agreement, or (b) independent of its      performance under the terms of thisAgreement; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (oo) | “Membership Interest”      means the percentage interest representing the ownership interest of a      Member in the Company, and all other rights and obligations arising      under |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

5.2

|   | (pp) | “Mining” means the      mining, extracting, producing, beneficiating, handling, milling or other      processing of Products regardless of the method of extraction mining or      processing the same, whether known to exist or hereafter discovered,      invented or developed; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (qq) | “Net Proceeds” means      certain amounts calculated as provided in Exhibit C, which may be payable      to a Member under Subsections 5.12(a)      and 9.5(b)(ii) or otherwise in this      Agreement; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (rr) | “Operations” means the      activities carried out by the Company under this  Agreement; |
|--------|------|------------------------------------------------------------------------------------------------------|

|   | (ss) | “Ore” means all      materials from a Company Property, the nature and composition of which, in      the reasonable judgment of the Manager, justifies mining or removing from      place and shipping and selling such material, or delivering such material      to a plant for further processing; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (tt) | “Party” means each of the      Members, Ur-Energy and NFU, and the Guarantor and their successors and      permitted assigns, and “Parties” means,      together, the Members, Ur-Energy and NFU and the Guarantor and their      successors and permitted assigns and shall be read to be understood as the      NFUR/Ur-Energy/NFU parties or the TargetSub/Guarantor parties,      respectively, as may be appropriate in the  context; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (uu) | “Payout” means the date      on which the Equity Account balance of each of the Members has become zero      or a negative number, regardless of whether the Equity Account balance of      either or both Members subsequently becomes a positive      number.  If one Member’s Equity Account balance becomes zero or      a negative number before the other Member’s, “Payout” shall not occur      until the date that the other Member’s Equity Account balance first      becomes zero or a negative number; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vv) | “Permitted Encumbrances”      means the Encumbrances described on Exhibit B attached    hereto; |
|--------|------|-------------------------------------------------------------------------------------------------------------|

| (ww) | “Pre-Feasibility Studies”      means one or more studies prepared to analyze whether economically viable      Mining Operations may be possible on the Company Properties, as described      in Section 8.7; |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xx) | “Prime Rate” means the      interest rate quoted and published as “Prime” as published in The Wall Street      Journal, under the heading “Money Rate,” as the rate may change      from day to day; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (yy) | “Products” means all Ore,      minerals and mineral resources produced from the      Company  Properties through Mining or other    means; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (zz) | “Program” means a      description in reasonable detail of Operations to be conducted and      objectives to be accomplished by the Manager as approved by the Management      Committee pursuant to Section 8.4 for a specified  period; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aaa) | “Program Period” means      the time period covered by an adopted Program and  Budget; |
|--------|-------|----------------------------------------------------------------------------------------------------|

----

| (bbb) | “Project Financing” means      any financing approved by the Management Committee and obtained by the      Company and/or the Members for the purpose of placing a mineral deposit      situated on the Company Properties into Commercial Production, but shall      not include any such financing obtained individually by either Member to      finance payment or performance of its obligations under this      Agreement; |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ccc) | “Recalculated Membership      Interest” means the reduced Membership Interest of a Member as      recalculated under Sections 8.5, 8.6 or 9.5; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ddd) | “Reduced Member” means a      Member whose Membership Interest is reduced under Sections 8.5 or 9.5; |
|-------|-----------------------------------------------------------------------------------------------------------------------|

|   | (eee) | “TargetSub’s Initial      Contribution” means full satisfaction of the obligations of      TargetSub in Sections 5.4, 5.5, 5.7 and      5.8 to be permitted to acquire the 75%      Membership Interest which may be earned by TargetSub in accordance with      Section 5.4;  and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (fff) | “Transfer” means, when      used as a verb, to sell, grant, assign, create an Encumbrance, pledge or      otherwise convey, or dispose of or commit to do any of the foregoing, or      to arrange for substitute performance by an Affiliate or third party      (except as permitted under Subsection 7.2(k) and Section 7.6 of this Agreement), either directly or      indirectly; and, when used as a noun, means such a sale, grant,      assignment, Encumbrance, pledge or other conveyance or disposition, or      such an arrangement. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Cross-References.  References      to “Exhibits”,      “Articles”, “Sections” and “Subsections” refer to      Exhibits, Articles, Sections and Subsections of this      Agreement.  References to “Paragraphs” and “Subparagraphs” refer to      paragraphs and subparagraphs of the referenced  Exhibits. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | General.  The      Parties hereby enter into this Agreement for the purposes hereinafter      stated.  All of the rights and obligations of the Parties in      connection with the Company, its Business, Assets and the Area of Interest      and all Operations shall be subject to and governed by this      Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Name.  The      Assets shall be managed and operated by the Manager under the name of The      Bootheel Project, LLC, a Colorado limited liability company, on terms      consistent with this Agreement.  The Manager shall      accomplish any registrations required by jurisdictions in which the      Company conducts Business. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Purposes.  This      Agreement is entered into for the following purposes and for no others,      and shall serve as the exclusive means by which each of the Members      accomplishes such purposes: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to      conduct Exploration within the Area ofInterest; |
|--------|-----|---------------------------------------------------------|

|   | (b) | to      acquire additional real property and other interests within the Area of      Interest; |
|--------|-----|------------------------------------------------------------------------------------------------|

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

----

|   | (d) | to      engage in Operations on the CompanyProperties; |
|--------|-----|--------------------------------------------------------|

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

|   | (f) | to      complete and satisfy all Environmental Compliance obligations and      Continuing Obligations affecting the Company Properties;    and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.4 | Limitation.  Unless      the Members otherwise agree in writing, the Operations shall be limited to      the purposes described in Section 2.3,      and nothing in this Agreement shall be construed to enlarge such purposes      or to change the relationships of the Members as set forth in      Article IV. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Term.  The      term of this Agreement shall be for twenty-five (25) years from the      Effective Date and for so long thereafter as Products are produced from      the Company Properties on a continuous basis, and thereafter until all      materials, supplies, equipment and infrastructure have been salvaged and      disposed of, any required Environmental Compliance is completed and      accepted and the Members have agreed to a      final accounting, unless the Business is earlier terminated as herein      provided.  For purposes hereof, Products shall be deemed to be      produced from the Company Properties on a “continuous basis” so long as      production in commercial quantities is not halted for more than 365      consecutive days. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6 | Registered Agent/Registered      Office.  The name of the Company’s registered agent in      the State of Colorado is NFUR Bootheel, LLC or such other person as the      Manager may select in compliance with the Act from time to      time.  The registered office of the Company in the State of      Colorado shall be located at 10758 West Centennial Road, Littleton,      Colorado, 80127, or at any other place within the State of Colorado which      the Manager shall select from time to time, with the unanimous approval of      the Management Committee.  The principal office of the Company      shall be at any other location which the Manager shall select from time to      time with the unanimous approval of the Management    Committee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | Representations and Warranties      of All Parties.  As of the Effective Date, each Party      warrants and represents to the othersthat: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it      is a corporation or limited liability company duly organized and in good      standing in its jurisdiction of incorporation or organization and is      qualified to do business and is in good standing in those jurisdictions      where necessary in order to carry out the purposes of this      Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it      has the capacity to enter into and perform this Agreement and all      transactions contemplated herein and that all corporate, board of      directors, shareholder, company, member or manager, surface and mineral      rights owner, lessor, lessee and other actions required to authorize it to      enter into and perform this Agreement have been properly taken, except for      approval by the State of Wyoming for the assignment of the two (2) state      leases listed on Exhibit A; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | neither      the execution of this Agreement nor the consummation of the transactions      contemplated herein will conflict with, result in a breach of or      accelerate the performance required by any agreement to which it is a      party; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | neither      the execution of this Agreement nor the consummation of the transactions      contemplated hereby result in a breach of the Laws of any applicable      jurisdiction or the Party’s constituting  documents; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | 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 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3.2 | Representations and Warranties      of NFUR, Ur-Energy and NFU.  As of the Effective Date,      each of NFUR, Ur-Energy and NFU make the following representations and      warranties to TargetSub and theGuarantor: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | NFUR,      Ur-Energy or NFU controls the Initial Company Properties free and clear of      all Encumbrances, other than the Permitted Encumbrances as listed on      Exhibit B and has the right to transfer the Initial Company Properties to      the Company. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Exhibit      A accurately sets out all the lands, unpatented mining claims, state      leases and other interests that comprise the Initial Company      Properties.  NFUR, Ur-Energy and NFU have taken all steps and      made all taxes, assessments, rental levies and other payments necessary to      maintain the Initial Company Properties in good standing under applicable      Laws. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | With      respect to those Initial Company Properties in which NFUR, Ur-Energy or      NFU hold an interest under leases or other contracts: (i) NFUR, Ur-Energy      or NFU are in exclusive possession of such Initial Company Properties;      (ii) NFUR and/or Ur-Energy and/or NFU has received no notice of default of      any of the terms or provisions of such leases or other contracts; (iii)      subject to the approval of the State of Wyoming, NFUR and/or Ur-Energy      and/or NFU have the authority under such leases or other contracts to      perform fully their obligations under this Agreement; (iv) to NFUR’s,      Ur-Energy’s and NFU’s knowledge, such leases and other contracts are valid      and are in good standing; (v) NFUR and/or Ur-Energy and/or NFU have no      knowledge of any act or omission or any condition on the Initial Company      Properties which could be considered or construed as a default under any      such lease or other contract; and (vi) to NFUR’s, and/or Ur-Energy’s      and/or NFU’s knowledge, such Initial Company Properties are free and clear      of all Encumbrances or defects in title except for those specifically      identified in Exhibit B. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | NFUR,      Ur-Energy or NFU have either provided or will make available for      inspection to TargetSub and the Guarantor true and complete copies of all      agreements in their possession material to the Initial Company Properties      and to any other mining claims or interests in mining properties within      the Area of Interest currently owned or controlled by NFUR, Ur-Energy and      NFU and all such agreements to which they are a party are valid and in      full force and effect and there are no existing defaults by NFUR,      Ur-Energy or NFU or, to their knowledge, by the other parties to such      agreements. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | The      Existing Data provided by Ur-Energy and NFU, in turn to NFUR, and then to      TargetSub and the Guarantor is provided for use by the Company “as-is” and      NFUR, Ur-Energy and NFU expressly disclaim any representations or      warranties as to its accuracy, reliability, quality or completeness, its      fitness or suitability for any particular purpose or use, the presence or      absence of commercial quantities of uranium or other valuable minerals in      any of the Initial Company Properties or Area of Interest.  The      Existing Data is specifically not contributed to the Company as an Asset      of the Company.  TargetSub and Guarantor agree they shall rely      on the Existing Data at their ownrisk. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | With      respect to unpatented mining claims located by Ur-Energy and NFU that are      included within the Initial Company Properties, except as to the Permitted      Encumbrances set forth in Exhibit B and subject to the paramount title of      the United States: (i) to their knowledge the unpatented mining claims      were properly laid out and monumented; (ii) to their knowledge 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 performed and all Governmental      Fees have been paid in a manner consistent with that required of the      Manager pursuant to Subsection 7.2(l)      through the assessment year ending at Noon on September 1, 2007; (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; (vi) the claims are free and clear of Encumbrances or defects in      title; and (vii) Ur-Energy and NFU have no knowledge of conflicting mining      claims.  Nothing in this Subsection, however, shall be deemed to      be a representation or a warranty that any of the unpatented mining claims      contains a valuable discovery of minerals or that any such discovery may      be economically mined by any specific mining procedure or technology      whether known or unknown as of the Effective  Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | With      respect to unpatented mining claims not located by Ur-Energy and NFU but      which are included within the Initial Company Properties, except as to the      Permitted Encumbrances set forth in Exhibit B and subject to the paramount      title of the United States: (i) all assessment work required to hold the      unpatented mining claims has been performed and all Governmental Fees have      been paid in a manner consistent with that required of the Manager      pursuant to Subsection 7.2(l) through      the assessment year ending at Noon on September 1, 2007; (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) Ur-Energy and NFU have no knowledge of conflicting      mining claims.  Nothing in this Subsection, however, shall be      deemed to be a representation or a warranty that any of the unpatented      mining claims contains a valuable discovery of minerals or that any such      discovery may be economically mined by any specific mining procedure or      technology whether known or unknown as of the Effective    Date. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | With      respect to the Initial Company Properties, there are no pending or to the      knowledge of Ur-Energy or NFU threatened actions, suits, claims or      proceedings, and there have been no previous transactions affecting its      interests in the Initial Company Properties which have not been for fair      consideration. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Except      as to matters otherwise disclosed in writing to TargetSub and the      Guarantor prior to the EffectiveDate, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | to      the knowledge of Ur-Energy or NFU the conditions existing on or with      respect to the Initial Company Properties and their ownership and      operation of the Initial Company Properties are not in violation of      any Laws (including without limitation any Environmental Laws), nor      causing or permitting any damage (including Environmental Damage, as      defined below) or impairment to the health, safety, or enjoyment of any      person at or on the Initial Company Properties or in the general vicinity      of the Initial Company Properties; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to      the knowledge of Ur-Energy or NFU there have been no past violations by      them or by any of their predecessors in title of any Environmental Laws or      other Laws affecting or pertaining to the Initial Company Properties, nor      any past creation of damage or threatened damage to the air, soil, surface      waters, groundwater, flora, fauna, or other natural resources on, about or      in the general vicinity of the Initial Company Properties (“Environmental Damage”);      and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | to      the knowledge of Ur-Energy or NFU, Ur-Energy and NFU are in material      compliance with all applicable Laws pertaining to the Initial Company      Properties including all Environmental Laws and have obtained all      necessary licenses, permits and approvals necessary for their operations      pertaining to the Initial Company Properties under all applicable      Environmental Laws and to their knowledge there are no environmental      audits, evaluation, assessments or studies relating to them or any of      their subsidiaries pertaining to the Initial      Company  Properties; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Ur-Energy      and NFU have 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 any  Laws. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Disclosures. |
|-----|--------------|

|   | (a) | Each      of the Parties represents and warrants that it is unaware of any material      facts or circumstances that have not been disclosed in this Agreement,      which should be disclosed to the other Party (-ies) in order to prevent      the representations and warranties in this Article from being materially      misleading.  NFUR, Ur-Energy and NFU have disclosed to TargetSub      and the Guarantor all information each believes to be relevant concerning      the Initial Company Properties and Area of Interest and has provided to or      made available for inspection by TargetSub and the Guarantor all such      information, but does not (except as provided in Section 3.2) make any representation or warranty,      express or implied, as to the accuracy or completeness of the information      or as to the boundaries or value of the Initial Company Properties and      Area of Interest.  Each Party represents to the others that in      negotiating and entering into this Agreement it has relied solely on its      own appraisals and estimates as to the value of the Initial Company      Properties and Area of Interest and upon its own geologic and engineering      interpretations related thereto. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      representations and warranties hereinbefore set out in Sections 3.1 through 3.3 are      conditions on which the Parties have relied in entering into this      Agreement and each of the Parties will indemnify and save the other      harmless from all loss, damage, costs, actions and suits arising out of or      in connection with any breach of any representation, warranty, covenant,      agreement or condition made by it and contained in this      Agreement.  The representations and warranties set forth above      shall survive the execution and delivery of any documents of Transfer      provided under this Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.4 | Record      Title.  Title to the Assets shall be held by the      Company. |
|-----|--------------------------------------------------------------------------------------|

| 3.5 | Loss of      Title.  Except as provided in Article VII, any failure or      loss of title to the Assets, and all costs of defending title, shall be      charged to the Business Account, except that all costs and losses arising      out of or resulting from breach of the representations and warranties of      NFUR, Ur-Energy and NFU as to title to the Initial Company Properties      shall be charged to NFUR. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6 | Royalties, Production Taxes and      Other Payments Based on Production.  All required      payments of production royalties, taxes based on production of Products,      and other payments out of production to private parties and governmental      entities shall be determined and made by the Company, and the Manager      undertakes to make such payments timely and otherwise in accordance with      applicable Laws and agreements. The Manager shall furnish to the Members      evidence of timely payment for all such required  payments. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.7 | Indemnities/Liabilities as      Between Members.  The Members shall not be required to      make any contribution to the capital of the Company except as provided in      this Agreement.  Any obligation herein to contribute capital to      the Company may be compromised by the Members, including by payments by an      obligated Member directly to the other Member(s), as may be      agreed.  Further, the Members agree as follows to indemnify one      another: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Each      Member shall indemnify the other Member, its directors, officers, members,      managers, employees, agents and attorneys, and Affiliates (collectively,      “Indemnified      Parties”) from and against the entire amount of any Material      Loss.  A “Material Loss” shall      mean all costs, expenses, damages or liabilities, including attorneys’      fees and other costs of litigation (either threatened or pending) arising      out of or based on a breach by a Member (“Indemnifying Party”) of      any representation, warranty or covenant contained in this Agreement,      including without limitation: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      failure by the Manager to determine accurately and make timely payment of      required royalties, production taxes and other payments out of production      to third parties as required by Section 3.6; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any      action taken for or obligation or responsibility assumed on behalf of the      Company or another Member by a Member, any      of its directors, officers, employees, agents and attorneys, and      Affiliates, in violation of Section 4.1; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | failure      of a Member or its Affiliates to comply with the non-compete or Area of      Interest provisions of Section 11.6 or      Article XII; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | any      Transfer that causes a liability to the Company against which the      transferring Member shall indemnify the non-transferring Member as      provided in Article V of Exhibit E;and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any      Transfer that causes termination of the tax partnership established by      Section 4.3, against which the      transferring Member shall indemnify the non-transferring Members as      provided in Section 3.7 and Exhibit      E; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | failure      of a Member or its Affiliates to comply with the pre-emptive right under      Section 15.3 and      Exhibit D. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | If      any claim or demand is asserted against an Indemnified Party in respect of      which such Indemnified Party may be entitled to indemnification under this      Agreement, written Notice of such claim or demand shall promptly be given      to the Indemnifying Party.  The Indemnifying Party shall have      the right, but not the obligation, by notifying the Indemnified Party      within thirty (30) days after its receipt of the Notice of the claim or      demand, to assume the entire control of (subject to the right of the      Indemnified Party to participate, at the Indemnified Party’s expense and      with counsel of the Indemnified Party’s choice) the defense, compromise,      or settlement of the matter, including, at the Indemnifying Party’s      expense, employment of counsel of the Indemnifying Party’s      choice.  Any damages to the assets or business of the      Indemnified Member caused by a failure by the Indemnifying Party to      defend, compromise, or settle a claim or demand in a reasonable and      expeditious manner requested by the Indemnified Party, after the      Indemnifying Party has given notice that it will assume control of the      defense, compromise, or settlement of the matter, shall be included in the      damages for which the Indemnifying Party shall be obligated to indemnify      the Indemnified Party.  Any settlement or compromise of a matter      by the Indemnifying Party shall include a full release of claims against      the Indemnified Party which has arisen out of the indemnified claim or      demand. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.8 | Limitation of      Liability.  The Members shall not be required to make any      contribution to the capital of the Company except as otherwise provided in      this Agreement, nor shall the Members in their capacity as Members or      Manager be bound by, or liable for, any debt, liability or obligation of      the Company whether arising in contract, tort, or otherwise, except as      expressly provided by this Agreement.  The foregoing shall not      limit any obligation of a Member to indemnify the other Members as      expressly provided by this Agreement.  The Members shall be      under no obligation to restore a deficit Capital Account upon the      dissolution of the Company or the liquidation of any of their Membership      Interests.   NFUR, however, shall be responsible to any      third party, not a Party to this Agreement, for and shall hold TargetSub      and the Guarantor harmless from any claim or liability resulting from      breaches of Laws prior to the Effective Date relating to the Initial      Company Properties.  Any other liability to third parties shall      be the responsibility of theCompany. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.9 | No Waiver of Limited Liability      or Reliance by Third Parties.  Notwithstanding anything      in this Agreement to the contrary, nothing contained herein shall be      deemed a waiver or reduction of the limitations of liabilities of the      Members as provided by the Act and other applicable      Law.  NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE      CONTRARY, NO PERSON OR ENTITY OTHER THAN A MEMBER SHALL HAVE THE RIGHT TO      ENFORCE ANY OBLIGATION OF A MEMBER TO CONTRIBUTE CAPITAL HEREUNDER,      WHETHER TO FUND CONTINUING OBLIGATONS OR FOR ANY OTHER PURPOSE, AND      SPECIFICALLY NEITHER THE COMPANY NOR ANY LENDER OR OTHER THIRD PARTY SHALL      HAVE ANY SUCH RIGHTS, it being the intention of  the |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.10 | Company      Indemnification.  The Company shall indemnify and hold      harmless any Member (present or past) from and against any and all claims      and demands whatsoever arising from or related to the Business, the      Company or a Member’s Membership Interest in the Company.  The      Company shall indemnify and hold harmless any Manager (present or past)      from and against any and all claims and demands whatsoever arising from      and related to the Manager’s duties and performance under this Agreement      which were performed in compliance with the Manager’s Standard of Care set      forth in Section 7.3. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Limitation on Authority of      Members.  No member is an agent of the Company solely by      virtue of being a Member.  Except as provided in this Agreement,      no Member shall take part in the control, management, direction or      operation of the Business of the Company, and shall have no power to bind      the Company in its capacity as a Member.  This Section 4.1 supersedes any authority granted to Members      pursuant to the Act.  Any Member that takes any action or binds      the Company in violation of this Section 4.1 shall be solely responsible for any loss and      expense incurred by the Company as a result of the unauthorized action and      shall indemnify and hold the Company harmless with respect to the loss or      expense. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | No      Partnership.  The Members intend that the Company not be      a partnership (including, without limitation, a limited partnership) or      joint venture, and that no Member is a partner or joint venturer of any      other Member, other than as part of any tax partnership created hereunder      for federal and state tax purposes, and this Agreement may not be      construed to suggest otherwise. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Federal Tax Elections and      Allocations.  Without changing the effect of      Section 4.2, the Company shall be      treated as a partnership for federal income tax purposes and no Member      shall take any action to alter such treatment.  Tax elections      and allocations shall be made as set forth in    Exhibit E. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | State Income Tax.  To the      extent permissible under applicable law, the relationship of the Members      shall be treated for state income tax purposes in the same manner as it is      for federal income tax purposes. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Tax      Returns.  After approval of the Management Committee, any      tax returns or other required tax forms shall be filed in accordance with      Exhibit E. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | Other Business      Opportunities.  Except as expressly provided in this      Agreement, each Member shall have the right to engage in and receive full      benefits from any independent business activities or operations, whether      or not competitive with the Company, without consulting with, or      obligation to, the other Member or the Company.  The doctrines      of “corporate opportunity” or “business opportunity” shall not be applied      to the Company or to any other activity or operation of either      Member.  Neither Member shall have any obligation to the other      with respect to any opportunity to acquire any property outside the Area      of Interest at any time, or, except as otherwise provided in      Section 11.6, within the Area of      Interest after the Member’s resignation or deemed resignation from the      Company.  Unless otherwise agreed in writing, neither Member      shall have any obligation to mill, beneficiate or otherwise treat any      Products in any facility owned or controlled by such Member or the      Company. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.7 | Waiver of Rights to Partition      or Other Division of Assets.  The Members hereby waive      and release all rights of partition, or of sale in lieu thereof, or other      division of Assets, including any such rights provided by    Law. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | Bankruptcy of      Member.  A Member shall cease to have any power as a      Member or Manager or any voting rights or rights of approval hereunder      upon bankruptcy, insolvency, dissolution or assignment for benefit of      creditors of such Member, and its successor upon the occurrence of any      such event shall have only the rights, powers and privileges of a      transferee enumerated in Section 15.2      and shall be liable for all obligations of the Member under this      Agreement.  In no event, however, shall a personal      representative or successor become a substitute Member unless all the      requirements of Section 15.2 are      satisfied. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | Implied      Covenants.  There are no implied covenants contained in      this Agreement other than those of good faith and fair      dealing. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10 | No Third-Party Beneficiary      Rights.  This Agreement shall be construed to benefit the      Parties and their respective successors and assigns only, and shall not be      construed to create third-party beneficiary rights in any other party or      in any governmental organization or agency, except to the extent required      to permit indemnification of a non-Party Indemnified Party pursuant to      Section 3.7 and to the extent required      by Project Financing. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11 | Agreements with Third      Parties.  All transactions, contracts, employments,      purchases, operations, negotiations with third parties and any other      matter or act undertaken on behalf of the Company in connection with the      Assets and Business will be done, transacted, undertaken or performed in      the name of the Company only and no Member will do, transact, perform or      undertake anything related to the Business of the Company in the name of      any other Member or in the joint names of the  Members. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.12 | No      Certificate.  The Company shall not issue certificates      representing Membership Interests in the  Company. |
|------|----------------------------------------------------------------------------------------------------------------------------------|

| 4.13 | Covenants.  Each      of NFUR and TargetSub will devote such efforts and resources as may be      required to fulfill any obligation assumed by them      hereunder.  NFUR hereby covenants to provide or make available      for inspection to the Company true and complete copies of all Data and      Business Information in its possession and all Data and Business      Information that comes into its possession regarding the Initial Company      Properties and the Area of Interest.  TargetSub hereby covenants      to provide or make available for inspection to the Company true and      complete copies of all Data and Business Information in its possession and      all Data and Business Information that comes into its possession regarding      the Area of Interest. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1 | Membership Interests.  The      Members will have      such Membership      Interest in the Company as is determined from time to time in accordance      with this Article V. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Initial Membership Interests.  Upon      the execution of this Agreement NFUR will have a 100% Membership Interest      and TargetSub will have a 0% Membership Interest in the      Company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | NFUR Initial      Contribution. NFUR, as its      Initial Contribution, shall contribute, directly or through its      constituent members, the Initial Company Properties to the Company for      the |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.4 | Right to Acquire Membership      Interest.  NFUR hereby grants to TargetSub the exclusive      right and option to acquire a 75% Membership Interest in the Company, in      accordance with the terms of this Agreement.  In order to      acquire the 75% Membership Interest in the Company, TargetSub shall (i)      make Eligible Exploration Expenditures, pursuant to the terms of this      Article V, on the Area of Interest of $3,000,000 over a four-year period      commencing on the Effective Date of this Agreement, and (ii) shall cause      the Guarantor to issue to NFUR a total of 125,000 common shares of the      Guarantor.  At such time as TargetSub has made the Eligible      Exploration Expenditures and the Guarantor has issued the common shares,      as set forth below, TargetSub shall earn the 75% Membership Interest in      the Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | TargetSub’s failure to make its      Initial Contribution in accordance with the provisions of Article V and      Section 11.3, or its election to terminate      the Agreement pursuant to Section 11.2 shall be deemed to be a      resignation of TargetSub from the Company, and a termination of its      membership and Ownership Interest, as well as a termination as      Manager.  Upon such resignation, TargetSub   shall have no      further right, title or interest in the Company or the Assets and it shall      take such actions as are necessary to ensure that all Assets are free and      clear of any Encumbrances arising by through or under it, except for such      Encumbrances to which the Members have agreed. For greater certainty, it      is acknowledged and agreed that TargetSub’s Capital Account will be      transferred to NFUR in the event of any such resignation prior to the      completion of TargetSub’s Initial Contribution, or if for any other reason      at any other time the Company is dissolved prior to the completion of      TargetSub’s InitialContribution |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Schedule of Eligible      Exploration Expenditures.  In order to keep the Agreement      in good standing and earn the 75% Membership Interest, TargetSub shall      fund and incur from the Effective Date a minimum of $3,000,000 of Eligible      Exploration Expenditures on or prior to the fourth anniversary of the      Effective Date as follows (except as provided in Section 18.8herein): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | $750,000      on or before the first anniversary of the Effective Date (as a firm and      binding commitment); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (b) | an      additional $750,000 on or before the second anniversary of the Effective      Date; |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (c) | an      additional $750,000 on or before the third anniversary of the Effective      Date; and |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (d) | an      additional $750,000 on or before the fourth anniversary of the Effective      Date. |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | All      payments of Eligible Exploration Expenditures shall be spent in accordance      with the approved Programs and Budgets of the Management      Committee. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Overpayment of Eligible      Exploration Expenditures.  For purposes of the      calculation of minimum Eligible Exploration Expenditures in      Section 5.5, to the extent that      TargetSub funds any expenditures in excess of the relevant minimum amount,      such excess amount shall be carried forward and credited towards the      amount TargetSub is required to fund in a subsequent year if such overage      is either expended pursuant to an approved Program and Budget or is      approved by the Management Committee thereafter as an allowable expense      and overage. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.7 | Schedule of Share      Issuances.  In order to keep the Agreement in good      standing and earn a 75% Membership Interest, the Guarantor shall issue and      TargetSub shall cause to be issued to NFUR or its designated assignee(s)      an aggregate 125,000 common shares of the Guarantor as      follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | 50,000      common shares within five business days of the receipt of approval of this      Agreement by the TSX VentureExchange; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | 25,000      common shares on or before the first anniversary of the Effective      Date; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (c) | 25,000      common shares on or before the second anniversary of the Effective Date;      and |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (d) | 25,000      common shares on or before the third anniversary of the Effective      Date. |
|--------|-----|------------------------------------------------------------------------------------------|

| 5.8 | Cash Payment in lieu of      Eligible      Exploration Expenditures.  TargetSub may, at its option,      meet any of the minimum Eligible Exploration Expenditures specified in      Section 5.5 by making a cash payment to      NFUR by wire transfer or certified check made payable to NFUR within the      time periods specified in Section 5.5.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | Extension.  Notwithstanding      anything else in this Agreement, if TargetSub fails to fund the minimum      Eligible Exploration Expenditures specified in Section 5.5 predominantly through the failure of NFUR to      act or predominantly as a result of actions taken by NFUR, then TargetSub      shall have such longer period of time as is reasonable under the      circumstances to meet its minimum Eligible Exploration      Expenditures. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.10 | Additional      Contributions.  After such time as TargetSub acquires the      75% Membership Interest in the Company, the Members, subject to any      election permitted by Subsection 8.5(a),      shall be obligated to contribute funds to adopted Programs and Budgets in      accordance with their respective Membership  Interests. |
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| 5.11 | Changes in Membership      Interests.  In addition to any of the foregoing, the      Membership Interests shall be eliminated or changed as      follows: |
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|   | (a) | Upon      resignation or deemed resignation as provided in Article    XI; |
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|   | (b) | Upon      an election by either Member pursuant to Section 8.5 to contribute less to an adopted Program and      Budget than the percentage equal to its Membership Interest, or to      contribute nothing to an adopted Program and  Budget; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In      the event of default by either Member making its agreed upon contribution      to an adopted Program and Budget, followed by an election by the other      Member to invoke any of the remedies in Section 9.5; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Upon      Transfer by either Member of part or all of its Membership Interest in      accordance with Article XV; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Upon      acquisition by either Member of part or all of the Membership Interest of      the other Member, however arising. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

----

| 5.12 | Elimination of Minority      Interest.  |
|------|----------------------------------------------|

|   | (a) | A      Reduced Member whose Recalculated Membership Interest becomes less than      10% shall be      deemed to have withdrawn from the Company and shall relinquish its entire      Membership Interest free and clear of any Encumbrances arising by, through      or under the Reduced Member, except any Permitted Encumbrances to which      the Members have agreed.  Such relinquished Membership Interest      shall be deemed to have accrued automatically to the other      Member.  The Reduced Member’s Capital Account shall be      transferred to the remaining Member.  Thereafter, subject to      Section 5.13, the Reduced Member shall      thereafter have no further right, title, or interest in the Company or      under this Agreement.  In such event, the Reduced Member shall      execute and deliver an appropriate conveyance of all of its right, title      and interest in the Company to the remaining Member.  The      Reduced Member shall, however, have the right to receive 5% of Net Proceeds,      if any, upon      the then-existing Company Properties and Operations up to an amount equal      to the Reduced Member’s Equity Account balance as of the effective date of      the withdrawal, such royalty payment to run with title to the      then-existing Company Properties, and the Members hereby agreeing to      execute such documents as shall be necessary to evidence such      intent.  Such royalty shall be paid quarterly, if there are no      Continuing Liabilities or other continuing obligations of the Reduced      Member which are not then current; if there are unpaid Continuing      Liabilities or other continuing obligations to the Company or other Member      outstanding at the time of any otherwise scheduled quarterly payment, the      5% Net Proceeds payment shall not be made to the Reduced Member, but shall      be made to the remaining Member or the Company at the choosing of the      remaining Member. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      relinquishment, withdrawal and entitlements for which this Section      provides shall be effective as of the date of the recalculation under      Sections 8.5 or 9.5.  However, if the final adjustment      provided under Section 8.6 for any      recalculation under Section 8.5 results      in a Recalculated Membership Interest of 10% or more: (i) the      Recalculated Membership Interest shall be deemed, effective retroactively      as of the first day of the Program Period, to have automatically revested;      (ii) the Reduced Member shall be reinstated as a Member, with all of the      rights and obligations pertaining thereto; (iii) the right to Net Proceeds      under Subsection 5.12(a) shall      terminate; and (iv) the Manager, on behalf of the Members, shall make any      necessary reimbursements, reallocations of Products, contributions and      other adjustments as provided in Subsection 8.6(d).  Similarly, if such final      adjustment under Section 8.6 results in      a Recalculated Membership Interest for either Member of less than 10% for a Program      Period as to which the provisional calculation under Section 8.5 had not resulted in a Membership Interest of      less than 10%, then such Member, at its election within thirty (30) days      after notice of the final adjustment, may contribute an amount resulting      in a revised final adjustment and resultant Recalculated Membership      Interest of 10%.  If no such election is made, such Member shall      be deemed to have withdrawn under the terms of Subsection 5.12(a) as of the beginning of such Program      Period, and the Manager, on behalf of the Members, shall make any      necessary reimbursements, reallocations, contributions and other      adjustments as provided in Subsection 8.6(d), including any Net Proceeds to which such      Member may be entitled for such ProgramPeriod. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.13 | Continuing Liabilities upon      Adjustments of Membership Interests.  Any reduction or      elimination of a Member’s Membership Interest under this Agreement shall      not relieve such Member of its share of any liability to the Company,      whether arising before or after such reduction or elimination, out of acts      or omissions occurring or conditions existing prior to  the |
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----

5.12
8.5
8.6
9.5
5.13

| 5.14 | Documentation of Adjustments to      Membership Interests.  Adjustments to the Membership      Interests need not be evidenced during the term of this Agreement by the      execution and recording of appropriate instruments, but each Member’s      Membership Interest and related Equity Account balance shall be shown in      the accounting records of the Company, and any adjustments thereto,      including any reduction, readjustment, and restoration of Membership      Interests under Sections 5.12, 8.5, 8.6 and 9.5, shall be made monthly.  However,      a Member, at any time upon the request of another Member, shall execute      and acknowledge instruments necessary to evidence such      adjustments. |
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| 5.15 | Grant of Lien and Security      Interest. Subject to      Section 5.16, each Member grants to the      other Member a lien upon and a security interest in its Membership      Interest.  The lien and security interest granted pursuant to      this Section 5.15 shall secure every      obligation or liability of the Member to the Member granting such lien or      security interest created under this Agreement, including the obligation      to repay a Cover Payment in accordance with Section 9.4.  Each Member hereby agrees to      take all action necessary to perfect such lien and security interest and      hereby appoints the other Member its attorney-in-fact to execute, file and      record all financing statements and other documents necessary to perfect      or maintain such lien and securityinterest. |
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| 5.16 | Subordination of      Interests. Each Member shall, from time to time, take all necessary      actions, including execution of appropriate agreements, to pledge and      subordinate its Membership Interest, any liens it may hold which are      created under this Agreement other than those created pursuant to      Section 5.14 hereof, and any other right      or interest it holds with respect to the Company and the Assets (other      than any statutory lien of the Manager) to any secured borrowings for      Operations approved by the Management Committee, including any secured      borrowings relating to Project Financing, and any modifications or      renewals thereof. |
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| 6.1 | Organization and      Composition.  The Members hereby establish a Management      Committee to determine overall policies, objectives, procedures, methods      and actions under this Agreement.  The Management Committee      shall consist of two members appointed by NFUR and two members appointed      by TargetSub.  Each Member may appoint one or more alternates to      act in the absence of a regular member.  Any alternate so acting      shall be deemed a member.  Appointments by a Member shall be      made or changed by notice to the other Members.  TargetSub shall      designate one of its members to serve as the chair of the Management      Committee. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Decisions.  From      the Effective Date until such time as TargetSub earns the 75% Membership      Interest, NFUR and TargetSub, acting through their appointed member(s) in      attendance at the meeting, shall each have votes representing a 50%      Membership Interest with (a) |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.3 | Meetings. |
|-----|-----------|

|   | (a) | The      Management Committee shall hold regular meetings at least quarterly in      Denver, or at other agreed places.  The Manager shall give sixty      (60) days notice to the Members of such meetings.  Notice may be      waived upon mutual consent received in writing.  Additionally,      either Member may call a special meeting upon thirty (30) days notice to      the other Member.  In case of an emergency, reasonable notice of      a special meeting shall suffice.  There shall be a quorum if at      least one member representing each Member is present; provided, however,      that if a Member fails to attend two consecutive properly called meetings,      then a quorum shall exist at the second meeting if the other Member is      represented by at least one appointed member, and a vote of such Member      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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      business cannot be conducted at a regular or special meeting due to the      lack of a quorum, either Member may call the next meeting upon ten      (10) days      notice to the other Member. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 Member calling the      meeting in the case of a special meeting, but any matters may be      considered if either Member adds the matter to the agenda at least twenty      (20) days before the meeting or with the consent of the other      Member.  The Manager shall prepare minutes of all meetings and      shall distribute copies of such minutes to the other Member within thirty      (30) days after the meeting.  Either Member may electronically      record the proceedings of a meeting with the consent of the other      Member.  The other Member shall sign and return or object to the      minutes prepared by the Manager within thirty (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 Members, 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 Member timely objects to minutes proposed by the      Manager, the members of the Management Committee shall seek, for a period      not to exceed thirty (30) days from receipt by the Manager of notice of      the objections, to agree upon minutes acceptable to both      Members.  If the Management Committee does not reach agreement      on the minutes of the meeting within such thirty (30) day period, the      minutes of the meeting as prepared by the Manager together with the other      Member’s proposed changes shall collectively constitute the record of the      meeting.  If personnel employed in Operations, in addition to      those who are already the representative member(s) of the Management      Committee, are required to attend a Management Committee meeting,      reasonable costs incurred in connection with such attendance shall be      charged to the Business Account.  All other costs shall be paid      by the Members individually. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | Action Without Meeting in      Person.  In lieu of meetings in person, the Management      Committee may conduct meetings by telephone or video conference, so long      as minutes of such |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

6.3(c)

| 6.5 | Matters Requiring      Approval.  Except as otherwise delegated to the Manager      in Section 7.2, the Management Committee      shall have exclusive authority to determine all matters related to overall      policies, objectives, procedures, methods and actions under this      Agreement, and to establish Programs and  Budgets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | Appointment.  The      Members hereby appoint TargetSub as the Manager with overall management      responsibility for Operations until such time as TargetSub resigns as      provided in Section 7.4 or defaults in      the performance of its obligations set forth in Sections 5.4, 5.5, 5.7 or 5.8.  TargetSub shall resign as      Manager if its Membership Interest (after TargetSub’s Initial Contribution      is completed) is reduced below 50%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Powers and Duties of      Manager.  Subject to the terms and provisions of this      Agreement, and in addition to other duties specified in this Agreement,      the Manager shall have the following powers and duties, which shall be      discharged in accordance with adopted Programs and  Budgets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 VIII. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Subject      to the limitations of the Eligible Exploration Expenditures during the      period of completing the TargetSub Initial Contribution (and, during that      same period, the terms, form and substance of any contract subject to      Management Committee approval), the Manager shall use reasonable efforts      to purchase or otherwise acquire additional properties in the Area of      Interest, the business and financial terms for such acquisition or      purchase which shall be subject to unanimous approval by the Management      Committee. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | 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 existing at      the time of, or created concurrent with, the acquisition of such Assets,      or mechanic’s or materialmen’s liens (which shall be contested, released      or discharged in a diligent matter) or Encumbrances specifically approved      by the Management Committee. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The      Manager shall conduct such title examinations of the Company Properties      and cure such title defects pertaining to the Company Properties as may be      advisable in its reasonablejudgment. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | 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 Member’s net income and shall      otherwise promptly pay and discharge expenses incurred in Operations;      provided, however, that 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 non-payment of any taxes, assessments or like      charges; and (iii) do all other acts reasonably necessary to maintain the      Assets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | 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 7.3.  In the event of      any such violation, the Manager shall timely cure or dispose of such      violation on behalf of the Company through performance, payment of fines      and penalties, or both, and the cost thereof shall be charged to the      Business Account. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | The      Manager shall prosecute and defend, but shall not initiate without consent      of the Management Committee, all litigation or administrative proceedings      arising out of Operations.  A non-managing Member shall have the      right to participate, at its own expense, in such litigation or      administrative proceedings.  Any non-managing Member shall      approve in advance any settlement involving payments, commitments or      obligations in excess of $50,000 in cash or      value. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The      Manager shall, at all times, provide for the benefit of the Company,      appropriate employment and workers’ compensation insurance and insurances      under standard form insurance policies with companies acceptable to the      Management Committee (specifically, with a Best’s Financial Rating of A-7,      or higher) for comprehensive public liability and property damage with      combined limits of not less than One Million Dollars ($1,000,000) per      single occurrence, and Two Million Dollars ($2,000,000) in the aggregate      for bodily injury and property damage; and for automobile insurance with      combined limits of not less than One Million Dollars ($1,000,000) per      single occurrence, and Two Million Dollars ($2,000,000) in the aggregate;      and adequate and reasonable insurance against risk of fire and other risks      ordinarily insured against in similar operations; and, additional      insurances as may otherwise be determined from time to time by the      Management Committee.  The Manager shall require of all      third-party service providers similar insurance requirements, including      proof of insurance and certificates of additional insured, for the      Company, as may be required by the Management Committee.  The      Manager shall not be permitted to implement self-insurance funding for the      Company unless unanimously approved by the Management      Committee. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | The      Manager may dispose of Assets, whether by abandonment, surrender, or      Transfer in the ordinary course of business.  Without prior      authorization from the Management Committee, however, the Manager shall      not: (i) dispose of or transfer to itself oran |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (k) | The      Manager shall have the right to carry out its responsibilities hereunder      through agents, Affiliates or independent contractors, for whose conduct      the Manager will be responsible pursuant to its obligations of its      standard of care. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | 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 Company Properties.  The Manager shall have      the right to perform the assessment work required hereunder pursuant to an      adopted Program and Budget.  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 7.3.  The Manager shall timely record      with the appropriate county and file with the appropriate State, United      States or other 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 and      shall provide to Members sufficient documentation as proof of completion      of such work, filings and payments at least thirty (30) days prior to the      time such obligations are due in order to keep such claims in good      standing.  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 7.3. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | 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      Company  Properties 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 one or more leases or other forms of      mineral tenure pursuant to any Law hereafter  enacted. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | The      Manager shall keep and maintain all required accounting and financial      records pursuant to the procedures of and in accordance with customary      cost accounting practices in the mining industry and in conjunction with      other provisions herein, including but not limited to Article IX, and      shall ensure appropriate separation of accounts unless otherwise agreed by      the Members.  The Manager shall keep and maintain all      required |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (o) | The      Manager shall maintain Equity Accounts for each Member in the      Company.  NFUR’s Equity Account shall be credited with its      Initial Contribution, pursuant to Section 5.3 at the Effective      Date.  TargetSub’s Equity Account shall be credited with the      value of the contributions under Sections 5.4, 5.5 and 5.8 at the time that all such requirements      are completed.  There shall be no credit to the Equity Account      of TargetSub or change in its Membership Interest until all such Article V      requirements are fulfilled, including those of Section 5.7.  Members shall be credited with      amounts contributed by such Members under Section 5.10. Each Member’s Equity Account shall be      charged with the cash and the fair market value of property distributed to      such Member (net of liabilities assumed by such Member and liabilities to      which such distributed property is subject).  Contributions and      distributions shall include all cash contributions or      distributions. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | 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) monthly      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 XVII, at      all reasonable times the Manager shall provide the Management Committee,      and designated representative of a non-managing Member access to, and the      right to inspect and copy, at the Company’s cost and expense, copies of      the 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, as it becomes available and to the extent preserved or kept      by the Manager, subject to Article XVII.  In addition, the      Manager shall allow the non-managing Member, 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 Member does not unreasonably interfere with      Operations. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | The      Manager shall prepare 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 Company Properties disturbed by      Operations. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | The      Manager shall undertake to perform Continuing Obligations when and as      economic and appropriate, whether before or after dissolution or      termination of the Company.  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 Member reasonably informed about      the |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (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      pursuant to Section 6.1. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Standard of      Care.  The Manager shall discharge its duties under this      Agreement and more specifically Section 7.2 and conduct all Operations in a good,      workmanlike and efficient manner, in accordance with sound mining and      other applicable industry standards and practices, and in accordance with      Laws and with the terms and provisions of leases, licenses, permits,      contracts and other agreements pertaining to the Assets.  The      Manager shall not be liable to the other Member for any act or omission      resulting in damage or loss except to the extent caused by or attributable      to the Manager’s breach of covenants or obligations herein, willful      misconduct or gross negligence.  The Manager shall not be in      default of any of its duties under Section 7.2 if its inability or failure to perform      results from the failure of another Member to perform acts or to      contribute amounts required of it by this  Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | Resignation; Deemed Offer to      Resign.  The Manager may resign upon not less than      three (3) months’ prior      Notice to the other Member, in which case the other Member may elect to      become the new Manager by notice to the resigning Member within thirty      (30) days after the Notice of resignation.  If any of the      following shall occur, the Manager shall be deemed to have resigned upon      the occurrence of the event described in each of the following      Subsections, with the successor Manager to be appointed by the other      Member at a subsequently called meeting of the Management Committee, at      which the Manager, if a Member, shall not be entitled to      vote.  The other Member may appoint itself or a third party as      the Manager. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | As      to TargetSub, as the initial Manager, if its Membership Interest after      completing its Initial Contribution becomes less than  50%; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      Manager fails to perform a material obligation imposed upon it under this      Agreement and, except for the obligations of TargetSub under      Section 5.5 or Section 5.7, such failure continues for a period of      sixty (60) days after notice from the other Member demanding      performance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      Manager fails to pay or contest in good faith Company bills and 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 sixty      (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      applicable 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 |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | Entry      is made against the Manager of a judgment, decree or order for relief      affecting its ability to serve as Manager 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. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Payments to      Manager.  The Manager shall be entitled to an      administrative management fee equal to 10% of all Eligible Exploration      Expenditures made in relation to the Company Properties, with such fees      credited as Eligible Exploration Expenditures for TargetSub immediately      prior to each anniversary of the Effective Date during the earn-in      period.  Following the acquisition of the 75% Membership      Interest by TargetSub, any management or administrative fee to be paid to      the Manager shall be a part of that year’s Program and    Budget. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | Transactions With      Affiliates.  If the Manager engages Affiliates to provide      services hereunder, it shall do so on terms no less favorable than would      be the case in arm’s length transactions with unrelated      persons. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Activities During      Deadlock.  Exploration and      Development: If the Management Committee for any reason fails      to adopt an Exploration, Pre-Feasibility Study, Feasibility Study or      Development Program and Budget, the Manager shall continue Operations at      levels sufficient to maintain the Company Properties.  Production Start-up      and Expansion Mining Activities: If the Management Committee      for any reason fails to adopt an initial Mining Program and Budget or any      Expansion or Modification Programs and Budgets, the Manager shall continue      Operations at levels sufficient to maintain the then-current Operations      and Company Properties.  During Mining and      Reclamation Activities: If the Management Committee for any      reason fails to adopt Programs and Budgets subsequent to the initial      Mining Program and Budget, the Manager shall continue Operations at levels      comparable with the last-adopted Mining Program and Budget.  In      addition, the Program and Budget shall be sufficient to conduct mining      and/or reclamation activities that allow the Company Properties and      Operations to be maintained and reclamation to progress as required by all      State and Federal Laws, permits and regulations.  All of the      foregoing shall be subject to the contrary direction of the Management      Committee and the receipt of necessaryfunds. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1 | Initial Program and      Budget. The Initial Program and Budget will be voted on at the      first Management Committee meeting to be held within thirty (30) days of      the Effective Date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Operations Pursuant to Programs      and Budgets. Except as otherwise provided in Section 8.13, and Article XII, Operations shall be      conducted, expenses shall be incurred, and Assets shall be acquired only      pursuant to adopted Programs and Budgets.  Every Program and      Budget adopted pursuant to this Agreement shall provide for accrual of      reasonably anticipated Environmental Compliance expenses for all      Operations contemplated under the Program and  Budget. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.3 | Presentation of Programs and      Budgets. Proposed Programs and Budgets shall be prepared by the      Manager for a period of one (1) year or any other period as approved by      the Management Committee, and shall be submitted to the Management      Committee for review and consideration.  All proposed Programs      and Budgets may include Exploration, Pre-Feasibility Studies, Feasibility      Study, Development, Mining and Expansion or Modification Operations      components, or any combination thereof, and shall be reviewed and adopted      upon a vote of the Management Committee in accordance with      Sections 6.2 and 8.4.  Each Program and Budget adopted      by the Management Committee, regardless of length, shall be reviewed at      least once a year at a meeting of the Management      Committee.  During the period encompassed by any Program and      Budget, and at least sixty (60) days prior to its expiration, a proposed      Program and Budget for the succeeding period shall be prepared by the      Manager and submitted to the Management Committee for review and      consideration. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Before      or at the time of completion of TargetSub’s Initial Contribution, the      Manager shall prepare and submit to the Management Committee for approval      a schedule of charges, generally, which, pursuant to the Programs and      Budgets, may be charged to the Business Account by the      Manager.  Categories of expenses which should be considered for      inclusion in such a schedule of charges may include but not be limited      to:  property acquisition and related payments; labor;      materials; equipment and supplies; contract services; insurances; damages      and losses; legal and regulatory expenses and audits; taxes; accounting      and administrative charges which shall not duplicate the management or      administrative fee, if any, agreed upon for the Manager; and other      categories as may be agreed. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Review and Adoption of Proposed      Programs and Budgets. Within thirty (30) days after submission of a      proposed Program and Budget, each Member shall submit in writing to the      Management Committee: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Notice      that the Member approves any or all of the components of the proposed      Program and Budget; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (b) | Modifications      proposed by the Member to the components of the proposed Program and      Budget; or |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | Notice      that the Member rejects any or all of the components of the proposed      Program and Budget. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

8.4(a)
(b)
(c)
6.3

| 8.5 | Election to      Participate.  After TargetSub has acquired the 75%      Membership Interest, Member elections to participate in the funding of      Programs and Budgets shall be pursuant to the following      procedures: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | By      notice to the Management Committee within twenty (20) days after the final      vote adopting a Program and Budget, and notwithstanding its vote      concerning adoption of a Program and Budget, a Member may elect to      participate in the approved Program and Budget: (i) in proportion to its      respective Membership Interest, (ii) in some lesser amount than its      respective Membership Interest, or (iii) not at all. In case of an      election under Subsections 8.5(a)(ii) or      (iii), and the other Member elects to fund all or any portion of the      deficiency, its Membership Interest shall be recalculated as provided in      Subsection 8.5(b) below, with dilution      effective as of the first day of the Program Period for the adopted      Program and Budget.  If a Member fails to so notify the      Management Committee of the extent to which it elects to participate, the      Member shall be deemed to have elected to contribute to such Program and      Budget in proportion to its respective Membership Interest as of the      beginning of the Program Period. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | for      an election made before Payout, by dividing: (A) the sum of (1) the amount      credited to the Reduced Member’s Equity Account with respect to its      Initial Contribution under Section 5.3      or earned Membership Interest pursuant to Section 5.4, (2) the total of all of the Reduced      Member’s contributions under Sections 5.10 and 8.5, and      (3) the amount, if any, the Reduced Member elects to contribute to the      adopted Program and Budget; by (B) the sum of (1), (2) and (3) above for      both Members; and then multiplying the result by one hundred;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | for      an election made after Payout, by reducing its Membership Interest in an      amount equal to two times the amount by which it would have been reduced      under Subsection 8.5(b)(i) if such      election were made before Payout. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Whenever      the Membership Interests are recalculated pursuant to this      Subsection 8.5, (i) the Equity Accounts      of both Members shall be revised to bear the same ratio to each other as      their recalculated Membership Interests; and (ii) the portion of Capital      Account attributable to the reduced Membership Interest of the Reduced      Member shall be transferred to the otherMember. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6 | Recalculation or Restoration of      Reduced Interest Based on Actual  Expenditures. |
|-----|--------------------------------------------------------------------------------------|

|   | (a) | If      a Member makes an election under Subsection 8.5(b), then within 60 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 or incurred obligations that were more or less than      the adopted Budget, the Membership Interests shall be recalculated      pursuant to Subsection 8.5(b) by      substituting each Member’s actual contribution to the adopted Budget for      that Member’s |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

8.5(a)

|   | (c) | If      the Manager expended or incurred obligations of less than 80% of the adopted      Budget, within ten days of receiving the Manager’s report on expenditures,      the Reduced Member may notify the other Member of its election to      reimburse the other Member for the difference between any amount      contributed by the Reduced Member to such adopted Program and Budget and      the Reduced Member’s proportionate share (at the Reduced Member’s former      Membership Interest) of the actual amount expended or incurred for the      Program, plus interest on the difference accruing at the Prime Rate plus 5      percentage points.  The Reduced Member shall deliver the      appropriate amount (including interest) to the other Member with such      notice.  Failure of the Reduced Member to so notify and tender      such amount shall result in dilution occurring in accordance with this      Article VIII and shall bar the Reduced Member from its rights under this      Subsection 8.6(c) concerning the      relevant adopted Program andBudget. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | All      recalculations under this Section 8.6      shall be effective as of the first day of the Program Period for the      Program and Budget.  The Manager, on behalf of both Members,      shall make such reimbursements, reallocations of Products, contributions      and other adjustments as are necessary so that, to the extent possible,      each Member will be placed in the position it would have been in had its      Membership Interests as recalculated under this Section been in effect      throughout the Program Period for such Program and  Budget. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.7 | Pre-Feasibility Study Program      and Budgets. |
|-----|-------------------------------------------------|

|   | (a) | At      such time as either Member is of the good faith and reasonable opinion      that economically viable Mining Operations may be possible on the Company      Properties, the Member may propose to the Management Committee that a      Pre-Feasibility Study Program and Budget, or a Program and Budget that      includes Pre-Feasibility Studies, be prepared.  Such proposal      shall be made in writing to the other Member, shall reference the Data      upon which the proposing Member bases its opinion, and shall call a      meeting of the Management Committee pursuant to Section 6.3.  If such proposal is adopted by      the Management Committee, the Manager shall prepare or have prepared a      Pre-Feasibility Study Program and Budget as approved by the Management      Committee and shall submit the same to the Management Committee within      thirty (30) days following adoption of the  proposal. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Pre-Feasibility      Studies may be conducted by the Manager, Feasibility Contractors, or both,      or may be conducted by the Manager and audited by Feasibility Contractors,      as the Management Committee determines.  A Pre-Feasibility Study      Program shall include the work necessary to prepare and complete the      Pre-Feasibility Study approved in the proposal adopted by the Management      Committee, which may include some or all of the  following: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | analyses      of various alternatives for mining, processing and beneficiation of      Products; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (ii) | analyses      of alternative mining, milling, and production  rates; |
|--------|------|----------------------------------------------------------------------|

|   | (iii) | analyses      of alternative sites for placement of facilities (i.e., water supply      facilities, transport facilities, reagent storage, offices, shops,      warehouses, stock yards, explosives storage, handling facilities, housing,      public facilities); |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | analyses      of alternatives for waste treatment and handling (including a description      of each alternative of the method of tailings disposal and the location of      the proposed disposal site); |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | estimates      of recoverable proven and probable reserves of Products and of related      substances, in terms of technical and economic constraints (extraction and      treatment of Products), including the effect of grade, losses, and      impurities, and the estimated mineral composition and content thereof, and      review of mining rates commensurate with such  reserves; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | analyses      of environmental impacts of the various alternatives, including an      analysis of the permitting, environmental liability and other      Environmental Law implications of each alternative, and costs of      Environmental Compliance for eachalternative; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | conduct      of appropriate metallurgical tests to determine the efficiency of      alternative extraction, recovery and processing techniques, including an      estimate of water, power, and reagent consumption      requirements; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | conduct      of hydrology and other studies related to any required dewatering;      and |
|--------|--------|------------------------------------------------------------------------------------------|

|   | (ix) | conduct      of other studies and analyses approved by the Management      Committee. |
|--------|------|---------------------------------------------------------------------------------------|

|   | (c) | The      Manager shall have the discretion to base its and any Feasibility      Contractors’ Pre-Feasibility Study on the cumulative results of each      discipline studied, so that if a particular portion of the work would      result in the conclusion that further work based on these results would be      unwarranted for a particular alternative, the Manager shall have no      obligation to continue expenditures on other Pre-Feasibility Studies      related solely to such alternative. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.8 | Completion of Pre-Feasibility      Studies and Selection of Approved Alternatives. As soon as      reasonably practical following completion of all Pre-Feasibility Studies      required to evaluate fully the alternatives studied pursuant to      Pre-Feasibility Programs, the Manager shall prepare a report summarizing      all Pre-Feasibility Studies and shall submit the same to the Management      Committee. Such report shall incorporate the  following: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      results of the analyses of the alternatives and other matters evaluated in      the conduct of the Pre-FeasibilityPrograms; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | reasonable      estimates of capital costs for the Development and start-up of the mine,      mill and other processing and ancillary facilities required by the      Development and Mining alternatives evaluated (based on flow sheets,      piping and instrumentation diagrams,and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | capitalized      pre-stripping expenditures, if an open pit or surface mine is      proposed; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (ii) | expenditures      required to purchase, construct and install all machinery, equipment and      other facilities and infrastructure (including contingencies) required to      bring a mine into Commercial Production, including an analysis of costs of      equipment or supply contracts in lieu of Development costs for each      Development and Mining alternativeevaluated; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | expenditures      required to perform all other related work required to commence Commercial      Production of Products and, if applicable, process Products (including      reasonable estimates of working capital requirements);  and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | all      other direct and indirect costs and general and administrative expenses      that may be required for a proper evaluation of the Development and Mining      alternatives and annual production levels evaluated.  The      capital cost estimates shall include a schedule of the timing of the      estimated capital requirements for each  alternative; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      reasonable estimate of the annual expenditures required for the first year      of Operations after completion of the capital program described in      Subsection 8.8(b) for each Development      alternative evaluated, and for subsequent years of Operations, including      estimates of annual production, processing, administrative, operating and      maintenance expenditures, taxes (other than income taxes), working capital      requirements, royalty and purchase obligations, equipment leasing or      supply contract expenditures, work commitments, Environmental Compliance      costs, post Operations Environmental Compliance and Continuing Obligations      funding requirements and all other anticipated costs of such      Operations.  This analysis shall also include an estimate of the      number of employees required to conduct such Operations for each      alternative; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      review of the nature, extent and rated capacity of the mine, machinery,      equipment and other facilities preliminarily estimated to be required for      the purpose of producing and marketing Products under each Development and      Mining alternative analyzed; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | an      analysis (and sensitivity analyses reasonably requested by either Member),      based on various target rates of return and price assumptions requested by      either Member, of whether it is technically, environmentally, and      economically feasible to place a prospective ore body or deposit within      the Company Properties into Commercial Production for each of the      Development and Mining alternatives analyzed (including a discounted cash      flow rate of return investment analysis for each alternative and net      present value estimate using various discount rates requested by either      Member); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | such      other information as the Management Committee deems      appropriate. |
|--------|-----|---------------------------------------------------------------------------------|

| 8.9 | Programs and Budgets for      Feasibility Study.  Within sixty (60) days following      the selection of an Approved Alternative, the Manager shall submit to the      Management Committee a |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.10 | Development Programs and      Budgets; Project Financing. |
|------|-----------------------------------------------------------|

|   | (a) | Unless      otherwise determined by the Management Committee, the Manager shall not      submit to the Management Committee a Program and Budget including      Development of the mine described in a completed Feasibility Study until      sixty (60) days following the receipt by Manager of the Feasibility      Study.  The Program and Budget, which includes Development of      the mine described in the completed Feasibility Study, shall be based on      the estimated cost of Development described in the Feasibility Study for      the Approved Alternative, unless otherwise directed by the Management      Committee. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Promptly      following adoption of the Program and Budget, which includes Development      as described in a completed Feasibility Study, but in no event more than      forty-five (45) days thereafter, the Manager shall submit to the      Management Committee a report on material bids received for Development      work (“Bid      Report”).  If bids described in the Bid Report result in      the aggregate cost of Development work exceeding 10% of the Development      cost estimates that formed the basis of the Development component of the      adopted Program and Budget, the Program and Budget, which includes      relevant Development, shall be deemed to have been resubmitted to the      Management Committee based on the aggregate costs as described in the Bid      Report on the date of receipt of the Bid Report and shall be reviewed and      adopted in accordance with Sections 6.2      and 8.4. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      the Management Committee approves the Development of the mine described in      a Feasibility Study and also decides to seek Project Financing for such      mine, each Member, in conjunction with the Company, shall, at its own      cost, cooperate in seeking to obtain Project Financing for such mine;      provided, however, that all fees, charges and costs (including attorneys      and technical consultants fees) paid to the Project Financing lenders      shall be borne by the Company, unless such fees are capitalized as a part      of the Project Financing. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11 | Expansion or Modification      Programs and Budgets.  Any Program and Budget proposed by      the Manager involving Expansion or Modification shall be based on a      Feasibility Study prepared by the Manager, Feasibility Contractors, or      both, or prepared by the Manager and audited by Feasibility Contractors,      as the Management Committee determines.  The Program and Budget,      which include Expansion or Modification, shall be submitted for review and      approval by the Management Committee within thirty (30) days following      receipt by the Manager of such Feasibility  Study. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.12 | Budget Overruns; Program      Changes. For Programs and Budgets adopted after completion of      TargetSub’s Initial Contribution, the Manager shall immediately notify the      Management Committee of any material departure from an adopted Program and      Budget.  If the Manager exceeds an adopted Budget by more than      20% in the aggregate, then the excess over 20%, unless directly caused by      an emergency or unexpected expenditure made pursuant to Section 8.13 or unless otherwise authorized or ratified      by the Management Committee, shall be the sole responsibility of the      Manager and such excess shall not be included in the calculations of the      Membership Interests nor deemed a contribution under this      Agreement.  Budget overrunsof |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.13 | Emergency or Unexpected      Expenditures. In case of emergency, the Manager may take any      reasonable action it deems necessary to protect life or property, to      protect the Assets or to comply with Laws.  The Manager may make      reasonable expenditures on behalf of the Company for unexpected events      that are beyond its reasonable control and that do not result from a      breach by it of its standard of care.  The Manager shall      promptly notify the Management Committee of the emergency or unexpected      expenditures.  During the period of time during which TargetSub      is earning the 75% Membership Interest, if TargetSub, as Manager, makes      emergency or unexpected expenditures, such expenditures, if thereafter      approved by the Management Committee, shall be treated as Eligible      Exploration Expenditures.  After TargetSub has acquired the 75%      Membership Interest, the Manager shall be reimbursed for all such      emergency or unexpected expenditures made in behalf of the Company if such      expenditures did not come from the Business  Account. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | General Accounting and      Monthly      Statements.  After completion of TargetSub’s Initial      Contribution, the Manager shall promptly submit to the Management      Committee monthly statements of account reflecting in reasonable detail      the charges and credits to the Business Account during the preceding      month.  The Manager shall maintain detailed and comprehensive      cost accounting records, including general ledgers, supporting and      subsidiary journals, invoices, check and other customary documentation,      sufficient to provide a record of revenues and expenditures and periodic      statements of financial position and the results of Operations for      managerial, tax, regulatory or other financial, regulatory, or legal      reporting purposes related to the Company.  Such records shall      be retained for the duration of the period allowed the Members for audit      or the period necessary to comply with tax or other regulatory      requirements.  The records shall reflect all obligations,      advances and credits to Members. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Cash Calls. On the basis      of each adopted Program and Budget after completion of TargetSub’s Initial      Contribution, the Manager shall submit prior to the last day of each month      a billing for estimated cash requirements for the next      month.  Within ten (10) days after receipt of each billing, or a      billing made pursuant to Section 8.13,      each Member shall advance its proportionate share of such cash      requirements.  The Manager shall record all funds received in      the Business Account.  The Manager shall at all times maintain a      cash balance approximately equal to the rate of disbursement for up to      thirty (30) days.  All funds in excess of immediate cash      requirements shall be invested by the Manager for the benefit of the      Company in cash management accounts and investments selected at the      discretion of the Manager, which accounts may include, but are not limited      to, money market investments and money market  funds. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Payment      of any such billings by either Member, including the Manager, shall not      prejudice such Member’s right to protest or question the correctness      thereof for a period not to exceed six (6) months following the calendar      year during which such billings were received by such      Member.  All written exceptions to and claims upon the Manager      for incorrect charges, billings or statements shall be made upon the      Manager within such six (6) monthsperiod. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Failure to Meet Cash      Calls. A Member that fails to meet cash calls in the amount and at      the times specified in Section 9.2 shall      be in default, and the amounts of the defaulted cash call shall bear      interest from the date due at an annual rate equal to 5 percentage points      over the Prime |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

9.4
9.5

| 9.4 | Cover      Payment.  If a Member defaults in making a contribution      or cash call required by an adopted Program and Budget, the non-defaulting      Member may, but shall not be obligated to, advance some portion or the      entire amount in default on behalf of the defaulting Member (a “Cover      Payment”).  Each and every Cover Payment shall constitute      a demand loan bearing interest from the date of the advance at the rate      provided in Section 9.3.  If      more than one Cover Payment is made, the Cover Payments shall be      aggregated and the rights and remedies described herein pertaining to an      individual Cover Payment shall apply to the aggregated Cover Payments. The      failure to repay such loan upon demand shall be a  default. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Remedies. Except for      TargetSub’s obligations pursuant to Subsections 5.5(a) and 5.7(a),      the Members acknowledge that if either Member defaults in making a      contribution required by Section 5.10 or      a cash call, or in repaying a loan, as required under Sections 9.2, 9.3 or 9.4, whether or not a Cover Payment is made, it      will be difficult to measure the damages resulting from such default (it      being hereby understood and agreed that the Members have attempted to      determine such damages in advance and determined that the calculation of      such damages cannot be ascertained with reasonable      certainty).  Both Members acknowledge and recognize that the      damage to the non-defaulting Member could be significant.  In      the event of such default, as reasonable liquidated damages, the      non-defaulting Member may, with respect to any such default not cured      within thirty (30) days after notice to the defaulting Member of such      default, elect any of the following remedies by giving notice to the      defaulting Member.  Such election may be made with respect to      each failure to meet a cash call relating to a Program and Budget,      regardless of the frequency of such cash calls, provided such cash calls      are made in accordance with Section 9.2. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The      defaulting Member grants to the non-defaulting Member a power of sale as      to all or any portion of its Membership Interest that is subject to the      lien and security interest granted in Section 5.14 (whether or not such lien and security      interest has been perfected), upon a default under Sections 9.3 or 9.4.  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 Member elects to enforce the lien or security interest      pursuant to the terms of this Subsection, the defaulting Member 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 Member shall be liable for any  deficiency. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      non-defaulting Member may elect to have the defaulting Member’s Membership      Interest diluted or eliminated asfollows: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | For      a default occurring before Payout relating to a Program and Budget      covering in whole or in part Exploration, Pre-Feasibility Study or      Feasibility Study Operations, the Reduced Member’s Membership Interest      shall be recalculated by dividing: (X) the sum of (1) the value of the      Reduced Member’s Initial Contributionunder |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

5.3
5.4
5.10
8.5

|   | (1) | for      a default relating exclusively to an Exploration Program and Budget, by      multiplying the Recalculated Membership Interest by the following      percentage: 95%; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | for      a default relating to a Program and Budget covering in whole or in part      Pre-Feasibility Study and/or Feasibility Study Operations, by multiplying      the Recalculated Membership Interest by the following percentage:      90%. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

9.5(b)(i)(1)
(2)

|   | (ii) | For      a default relating to a Program and Budget covering in whole or in part      Development or Mining, at the non-defaulting Member’s election, the      defaulting Member shall be deemed to have withdrawn and to have      automatically relinquished its interest in the Company to the      non-defaulting Member; provided, however, the      defaulting Member shall have the right to receive only from 5% of Net      Proceeds, if any, and not from any other source, an amount equal to      90% of the      defaulting Member’s Equity Account balance at the time of such default,      payable as contemplated in Section 5.12.  Upon such default, the      defaulting Member shall thereafter have no further right, title or      interest in the Company except payment as set out in this      subsection. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Dilution      under this Subsection 9.5(b) shall be      effective as of the date of the original default, and Section 8.6 shall not apply.  The amount of      any Cover Payment under Section 9.4 and      interest thereon, or any interest accrued in accordance with      Section 9.3, shall be deemed to be      amounts contributed by the non-defaulting Member, and not as amounts      contributed by the defaultingMember. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Whenever      the Membership Interests are recalculated pursuant to this      Subsection 9.5(b), (A) the Equity      Accounts of both Members shall be adjusted to bear the same ratio to each      other as their recalculated Membership Interests; and (B) the portion of      Capital Account attributable to the reduced Membership Interest of the      Reduced Member shall be transferred to the other  Member. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | If      a Member has defaulted in meeting a cash call or repaying a loan, and if      the non-defaulting Member has made a Cover Payment, then, in addition to a      reduction in the defaulting Member’s Membership Interest effected pursuant      to Subsection 9.5(b), the non-defaulting      Member shall have the right, if the |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

9.4
9.3
5.13

| 9.6 | Audits.  |
|-----|---------------|

|   | (a) | After      completion of TargetSub’s Initial Contribution, within 60 days after      the end of each calendar year, at the request of a Member, an audit shall      be completed by certified public accountants selected by, and independent      of, the Manager.  The audit shall be conducted in accordance      with generally accepted auditing standards 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 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      three (3) months after receipt of the audit report, unless either Member      elects to conduct an independent audit pursuant to Subsection 9.6(b) which is ongoing at the end of such three      (3) month period, in which case such exceptions and claims may be made      within the period provided in Subsection 9.6(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 Members.  The cost of all audits      under this Subsection shall be charged to the Business      Account. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding      the annual audit conducted by certified public accountants selected by the      Manager, each Member shall have the right to have an independent audit of      all Company books, records and accounts, including all charges to the      Business Account. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.1 | No Taking In      Kind.  No Member shall have the right to take in kind or      separately dispose of its share of all Products in proportion to its      Membership Interest.  The Manager shall sell all Products on      behalf of the Company.  Nothing in this Agreement shall be      construed as providing, directly or indirectly, for any joint or      cooperative marketing or selling of Products or permitting the processing      of Products owned by any third party at any processing facilities      constructed by the Company or any of the Members pursuant to this      Agreement. |
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| 11.1 | Termination and      Dissolution.  This Agreement shall terminate as expressly      provided herein, unless earlier terminated by written agreement and the      Company shall thereafter bedissolved. |
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| 11.2 | Termination of Right to      Acquire.  Notwithstanding      anything to the contrary in this Agreement, TargetSub may elect to      terminate its right to acquire a 75% Membership Interest in the Company at      any time after the Effective Date, provided (i) the Guarantor has made the      required payment of 50,000 common shares pursuant to Section 5.7 and (ii) TargetSub has fulfilled the firm      commitment of incurring at least $750,000 in Eligible Exploration      Expenditures pursuant to Subsection 5.5(a) on or before the first anniversary date      of the Effective Date, by providing sixty (60) days written notice to      NFUR.  In the event that the required expenditures pursuant to      Subsection 5.5(a) have not been made,      TargetSub shall have the option to make a cash payment to NFUR by wire      transfer or certified check in an amount equal to the shortfall, if any,      between $750,000 and the amount of Eligible Exploration Expenditures      funded by TargetSub on or before the first anniversary of the Effective      Date.  If TargetSub elects to terminate its right to acquire the      75% Membership Interest in the Company, its only obligation shall be to      fund costs which are incurred under the Program and Budget in effect at      the time of such termination, including existing contractual obligations      entered into pursuant to such Program and Budget or      otherwise.  In the event that TargetSub fails to satisfy and      comply with the obligations in Subsections 5.5(a) and 5.7(a),      TargetSub shall be deemed to have resigned and withdrawn from the Company      and shall thereafter not be a Member of the      Company.  Notwithstanding such termination or resignation,      TargetSub and Guarantor shall remain liable for the obligations of      Subsections 5.5(a) and 5.7(a). |
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| 11.3 | Resignation.  A      Member may elect to resign from the Company by: (i) failing to complete      its obligations as required by Section 5.3 or Sections 5.4, 5.5      and 5.7, or (ii)  giving |
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----

11.1

| 11.4 | Disposition of Assets on      Termination. Promptly after termination under Section 11.1, the Manager shall take all action      necessary to wind up the activities of the Company, in accordance with      Exhibit E. All costs and expenses incurred in connection with the      termination of the Company shall be expenses chargeable to the Business      Account. |
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| 11.5 | Filing of Statement of      Dissolution.  Upon      completion of the winding up of the affairs of the Company, the Manager      shall promptly file a Statement of Dissolution with the Office of the      Secretary of State of Colorado.  If the Manager has caused the      dissolution of the Company, whether voluntarily or involuntarily, then a      person selected by majority vote of the remaining Members to wind up the      affairs of the Company shall file a Statement of Dissolution pursuant to      this Section. |
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| 11.6 | Non-Compete Covenants.      Neither a Member that resigns pursuant to Section 11.3, or is deemed to have withdrawn pursuant to      the Agreement, including but not limited to Sections 5.12 or 9.5, nor any Affiliate of such a Member, shall      directly or indirectly acquire any interest or right to explore or mine,      or both, on any property any part of which is within the Area of Interest      for twenty-four (24) months after the      effective date of resignation. If a resigning Member, or the Affiliate of      a resigning Member, breaches this Section 11.6, such Member shall be obligated to offer to      convey to the Company, without cost or reimbursement, any such property or      interest so acquired (or ensure its Affiliate offers to convey the      property or interest to the Company, if the acquiring party is the      resigning Member’s Affiliate). Such offer shall be made in writing and can      be accepted by the Company at any time within ten (10) days after the      offer is received by the Management Committee, and each remaining Member.      Failure of a Member’s Affiliate to comply with this Section 11.6 shall be a breach by such Member of this      Agreement. |
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| 11.7 | Right to Data After      Termination.  After termination of the Company pursuant      to Section 11.1, each Member shall be      entitled to make copies of all applicable information acquired hereunder      before the effective date of termination not previously furnished to it,      but a terminating, resigning, or withdrawing Member shall not be entitled      to any such copies after such termination, resignation or      withdrawal.  A resigning or otherwise terminating Member shall return      all Data to the Company.  In any event, the Existing Data of      NFUR shall remain with NFUR and its Affiliates as the property of NFUR      and/or its Affiliates; if TargetSub resigns or otherwise withdraws from      the Company, it shall return all copies of Existing Data to the Company or      to NFUR. |
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| 11.8 | Continuing Authority. On      dissolution of the Company under Section 11.1 or the deemed withdrawal of either      Member pursuant to Section 9.5, the      Member which was the Manager prior to such termination or withdrawal (or      the other Member in the event of a withdrawal by  the |
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| 12.1 | General.  Any      interest or right to acquire any interest in real property, Data,      unpatented or patented mining claims, or water rights related thereto, or      the location of mining claims within the Area of Interest either acquired      or proposed to be acquired during the term of this Agreement by or on      behalf of either Member (“Acquiring Member”) or      any Affiliate of such Member shall be subject to the terms and provisions      of this Agreement.  NFUR and TargetSub and their respective      Affiliates for their separate account shall be free to acquire lands,      Data, mining claims or interests in lands or mining claims outside the      Area of Interest and to locate mining claims outside the Area of Interest.       Failure of any Affiliate of either Member to comply with this      Article XII shall be a breach by such Member of this      Agreement.   |
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| 12.2 | Notice to Non-Acquiring      Member.  Within      fifteen (15) days after the acquisition, proposed acquisition or location,      as the case may be, of any interest or the right to acquire any interest      in real property, Data, mining claims, whether patented or unpatented, or      water rights wholly or partially within the Area of Interest (except real      property acquired by the Manager pursuant to a Program), the Acquiring      Member shall notify the other Members and the Management Committee of such      acquisition by it or its Affiliate; provided further that if the      acquisition or location of any interest or right to acquire any interest      pertains to real property, Data, patented or unpatented mining claims or      water rights partially within the Area of Interest, then all such real      property, Data, patented or unpatented mining claims or water rights      (i.e., the part      within the Area of Interest and the part outside the Area of Interest)      shall be subject to this Article XII.  The Acquiring Member’s      Notice shall describe in detail the acquisition and/or location, the      acquiring party if that party is an Affiliate, the lands and minerals      covered thereby, any water rights related thereto, the cost thereof, and      the reasons why the Acquiring Member believes that the acquisition (or      proposed acquisition) of the interest is in the best interests of the      Company under this Agreement. In addition to such Notice, the Acquiring      Member shall make any and all information concerning the relevant interest      available for inspection by the other Members and the Management      Committee. |
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| 12.3 | Option      Exercised.  Within thirty (30) days after      receiving the Acquiring Member’s Notice, the Management Committee may      notify the Acquiring Member of its election to accept the acquired      interest in the Company.  Promptly upon such notice, the      Acquiring Member shall convey or cause its Affiliate to convey to the      Company by special warranty deed or other appropriate transfer documents      with title held as described in Section 3.4, all of the Acquiring Member’s (or its      Affiliate’s) interest in such acquired interest, free and clear of all      Encumbrances arising by, through or under the Acquiring Member (or its      Affiliate) other than those to which both the Acquiring Member and      Management Committee have agreed.  Immediately upon such Notice,      the acquired interest either shall be subject to a Supplemental Business      Arrangement pursuant to Article XIV, or if conveyed to the Company, shall      become a part of the Assets and/or |
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----

| 12.4 | Option Not      Exercised.  If the Management Committee does not give      such Notice within the thirty (30) day period set forth in Section 12.3, the Company shall have no interest in the      acquired interests, and the acquired interests shall not be a part of the      Assets or continue to be subject to this  Agreement. |
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| 13.1 | Abandonment and      Surrender.  Either      Member may request the Management Committee to authorize the Manager to      surrender or abandon part or all of the Company Properties. If the      Management Committee authorizes such surrender or abandonment, the Company      shall assign to the requesting Member, by special warranty deed and      without cost to the requesting Member, all of the Company’s interest in      the Company Properties sought to be abandoned or surrendered, free and      clear of all Encumbrances created by, through or under the Company other      than those to which both the Company and the requesting Member have      agreed.  Upon the assignment, such properties shall cease to be      part of the Company Properties.  If the Management Committee      does not authorize such surrender or abandonment, such properties shall      remain part of the CompanyProperties. |
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| 14.1 | Supplemental      Agreements.  At any time      during the term of this Agreement after TargetSub’s acquisition of the 75%      Membership Interest, the Management Committee may determine by unanimous      vote of the Members that it is appropriate to segregate the Area of      Interest into areas subject to separate Programs and Budgets for purposes      of conducting further Exploration, Pre-Feasibility or Feasibility Studies,      Development, or Mining. At such time, the Management Committee shall      designate which portion of the Company Properties will comprise an area of      interest under a separate business arrangement (“Supplemental Business”),      and the Members shall enter into a new agreement (“Supplemental Business      Agreement”) for the purpose of further exploring, analyzing,      developing, and mining such portion of the Company Properties. The      Supplemental Business Agreement shall be in substantially the same form as      this Agreement, with rights and interests of the Members in the      Supplemental Business identical to the rights and interests of the Members      in this Company at the time of the designation, unless otherwise agreed by      the Members, and with the Members agreeing to new Capital and Equity      Accounts and other terms necessary for the Supplemental Business Agreement      to comply with the nature and purpose of the designation. Following      execution of the Supplemental Business Agreement, this Agreement shall      terminate insofar as it affects the Company Properties covered by the      Supplemental Business Agreement. |
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| 15.1 | General.  A      Member shall have the right to Transfer to a third party an interest in      its Membership Interest, or any beneficial interest therein, solely as      provided in this Article XV. |
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| 15.2 | Limitations on Free      Transferability.  Any Transfer by either Member under      Section 15.1 shall be subject to the      following limitations: |
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|   | (a) | Neither      Member shall Transfer any interest in this Agreement or the Company      (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 Membership Interest in theCompany; |
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|   | (b) | No      transferee of all or any part of a Member’s Membership Interest shall have      the rights of a Member unless and until the transferring Member has      provided to the other Member Notice of the Transfer, and, except as      provided in Subsection 15.2(g), 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 Member; |
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|   | (c) | Neither      Member shall make a Transfer that shall violate any Law, or, without the      consent of the other Member, result in the cancellation of any      permits, licenses, or other similar  authorization; |
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|   | (d) | No      Transfer permitted by this Article XV shall relieve the transferring      Member 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 EffectiveDate; |
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|   | (e) | Neither      Member, without the consent of the other Member, shall make a Transfer      that shall cause termination of the tax partnership established by      Section 4.3.  If such      termination is caused, the transferring Member shall indemnify the other      Member for, from and against any and all loss, cost, expense, damage,      liability or claim therefor arising from the Transfer, including without      limitation any increase in taxes, interest and penalties or decrease in      credits caused by such termination and any tax on indemnification proceeds      received by the Indemnified Party. |
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|   | (f) | In      the event of a Transfer of less than all of a Membership Interest, the      transferring Member and its transferee shall act and be treated as one      Member; provided however, that in order for such Transfer to be effective,      the transferring Member and its transferee must  first: |
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|   | (i) | agree,      as between themselves, that one of them is authorized to act as the sole      agent (“Agent”) on      their behalf with respect to all matters pertaining to this Agreement and      the Business; and |
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|   | (ii) | give      Notice to the other Member of the designation of the Agent, and in such      Notice warrant and represent to other Member  that: |
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|   | (1) | the      Agent has the sole authority to act on behalf of, and to bind, the      transferring Member and its transferee with respect to all matters      pertaining to this Agreement , the Company and the    Business; |
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|   | (2) | the      other Member may rely on all      decisions of, Notices and other communications from, and failures to      respond by, the Agent, as if given (or not given) by the transferring      Member and its transferee; and |
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----

|   | (3) | all      decisions of, Notices and other communications from, and failures to      respond by, the other Member to the Agent shall be deemed to have been      given (or not given) to the transferring Member and its      transferee. |
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15.2(f)(ii)

|   | (g) | If      the Transfer is the grant of an Encumbrance in a Membership Interest to      secure a loan or other indebtedness of either Member 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      Member’s financing payment or performance of that Member’s obligations      under this Agreement and shall be subject to the terms of this Agreement      and the rights and interests of the other Member hereunder (including      without limitation under Section 5.15).      Any such Encumbrance shall be further subject to the condition that the      holder of such Encumbrance (“Chargee”) first enter      into a written agreement with the Company and the other Member in form      satisfactory to the Company and the other Participant, acting reasonably,      binding upon the Chargee, to the effectthat: |
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|   | (i) | the      Chargee shall not enter into possession or institute any proceedings for      foreclosure or partition of the encumbering Member’s Membership 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 Member’s Membership      Interest to the other Member, or, failing such a sale, at a public auction      to be held at least fourteen (14) days after prior notice to the Company      and the other Member, such sale to be subject to the purchaser entering      into a written agreement with the Company and the other Member whereby such      purchaser assumes all obligations of the encumbering Member under the      terms of this Agreement. The price of any pre-emptive sale to the other      Member shall be the remaining principal amount of the loan plus accrued      interest and related expenses, and such pre-emptive sale shall occur      within sixty (60) days of the Chargee’s notice to the Company and the      other Member of its intent to sell the encumbering Member’s Membership      Interest. Failure of a sale to the other Member to close by the end      of such period, unless failure is caused by the encumbering Member or by      the Chargee, shall permit the Chargee to sell the encumbering Member’s      Membership Interest at a publicsale; and |
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|   | (iii) | the      charge shall be subordinate to any then-existing debt, including Project      Financing previously approved by the Management Committee, encumbering the      transferring Member’s Membership Interest in the  Company; |
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| 15.3 | Pre-emptive Right. Any      Transfer by either Member under Section 15.1 and any Transfer by an Affiliate in Control      of a Member shall be subject to a pre-emptive right of the other Member to      the extent provided in Exhibit D.  Failure of a Member’s      Affiliate to comply with this Article XV and Exhibit D shall be a breach      by such Member of this Agreement.  These pre-emptive rights      shall not apply to any change of control or ownership of the Members’      Affiliates including Ur-Energy Inc., Ur-Energy USA Inc., NFU Wyoming, LLC,      and Target Exploration & Mining Corporation or any transfer of a      Member or control of a Member to another  Affiliate. |
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| 16.1 | Governing      Law.  Except for matters of title to the Company      Properties or their Transfer, which shall be governed by the law of their      situs, this Agreement shall be governed by and interpreted in accordance      with the laws of the State of Colorado, without regard for any conflict of      laws or choice of laws principles that would permit or require the      application of the Laws of any other  jurisdiction. |
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| 16.2 | Arbitration.  Any      dispute, controversy or claim arising out of or relating to this      Agreement, including any question regarding its existence, validity or      termination, shall be referred to and finally resolved by      arbitration.  Prior to any Party commencing arbitration, the      Parties shall consult and negotiate with each other in good faith and      attempt to reach a just and equitable resolution satisfactory to all      Parties.  If the Parties do not reach resolution of such dispute      within thirty (30) days from the date of the act or omission out of which      the dispute arose and Notice of the dispute, the Parties shall submit the      matter for resolution by arbitration as provided      herein.  Arbitration of any dispute under this Agreement shall      be in accordance with the applicable Commercial Arbitration Rules of the      American Arbitration Association; provided, however, that procedurally,      the parties shall be entitled to reasonable discovery pursuant to      applicable Colorado rules of civil procedure.  Applicable      evidentiary rules and precedent relating to expert witnesses shall also      control.  If there is any conflict between the provisions of      this Agreement and the provisions of the Commercial Arbitration Rules of      the American Arbitration Association, the provisions of this Agreement      shall prevail. |
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|   | (a) | Time      Limitation.  Demand for arbitration must be in writing      and given within one (1) year from the date of the act or omission out of      which the dispute arose. |
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|   | (b) | Place of Arbitration;      Number of Arbitrators.  Unless otherwise agreed in      writing, arbitration shall be held in Casper, Wyoming and shall be before      three (3) Arbitrators if more than $100,000 is at issue and one (1)      Arbitrator if less than $100,000 is atissue. |
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|   | (c) | No Special      Damages.  In no event shall any Party be liable for any      consequential, special, incidental, indirect or punitive damages of any      nature whatsoever arising from or related to this Agreement, including      without limitation loss of revenue, loss of profit, lost opportunities,      costs of capital, claims of clients or customers, whether the claims are      based on contract, tort, strict liability or  otherwise. |
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|   | (d) | Costs.  If      any arbitration or any other proceeding is brought for the enforcement of      this Agreement, including without limitation this Article XVI, to collect      any award or judgment entered pursuant to this Agreement or because of an      alleged dispute, breach, default, or misrepresentation in connection with      any of the provisions of this Agreement or Operations of the Company, the      prevailing party shall be entitled to recover reasonable attorneys’ fees      and other costs incurred in that arbitration, action or proceeding,      including without limitation expert witness fees and costs and fees and      costs associated with consultants, in addition to any other relief to      which the Party (-ies) may beentitled. |
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|   | (e) | Judgment.  The      award of the Arbitrator(s) shall be final and binding on the Parties, and      judgment on the award may be entered by any court of competent      jurisdiction.  If the Parties settle the dispute in the course      of the arbitration, the settlement shall be approved by the Arbitrator(s)      on request of either Party and shall become the      award.  Arbitration fees and expenses, together with reasonable      attorney fees as provided in |
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16.2(d)
16.2(c)

| 17.1 | Business      Information.  All Business Information shall be owned by      the Company.  Subject to the terms of this Agreement, including      without limitation Section 11.7, both      before and after the dissolution of the Company, all Business Information      may be used by either Member for any purpose, whether or not competitive      with the Company, without consulting with, or obligation to, the other      Member.  Except as provided in Sections 17.3 and 17.4,      or with the prior written consent of the other Member, each Member shall      keep confidential and not disclose to any third party or the public any      portion of the Business Information that constitutes Confidential      Information. |
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| 17.2 | Member      Information.  In performing its obligations under this      Agreement, neither Member shall be obligated to disclose any Member      Information. If a Member elects to disclose Member Information in      performing its obligations under this Agreement, such Member Information,      together with all improvements, enhancements, refinements and incremental      additions to such Member Information that are developed, conceived,      originated or obtained by either Member in performing its obligations      under this Agreement (“Enhancements”), shall be      owned exclusively by the Member that originally developed, conceived,      originated or obtained such Member Information. Each Member may use and      enjoy the benefits of such Member Information and Enhancements in the      conduct of the Business hereunder, but the Member that did not originally      develop, conceive, originate or obtain such Member Information may not use      such Member Information and Enhancements for any other      purpose.  Except as provided in Section 17.4, or with the prior written consent of the      other Member, which consent may be withheld in such Member’s sole      discretion, each Member shall keep confidential and not disclose to any      third party or the public any portion of Member Information and      Enhancements owned by the other Member that constitutes Confidential      Information. |
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| 17.3 | Permitted Disclosure of      Confidential Business Information.  Either Member may      disclose Business Information that is Confidential Information: (a) to a      Member’s officers, directors, partners, members, managers, employees,      Affiliates, agents, attorneys, accountants, consultants, contractors,      subcontractors or advisors, for the sole purpose of such Member’s      performance of its obligations under this Agreement; (b) to any party to      whom the disclosing Member contemplates a Transfer of all or any part of      its Membership 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 Member; or (d) to a third party with whom the disclosing      Member contemplates any independent business activity or      operation. |
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17.3
17.3
17.3

----

| 17.4 | Disclosure Required By      Law.  Notwithstanding anything contained in this Article      XVII, a Member may disclose any Confidential Information if, in the      opinion of the disclosing Member’s legal counsel; (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 or      procedural rule; or (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 Member or its      Affiliates. |
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17.4

| 17.5 | Public      Announcements.  Prior to making or issuing any press      release or other public announcement or disclosure of Business Information      that is not Confidential Information, a Member or its Affiliates shall      first consult with the other Member as to the content and timing of such      announcement or disclosure, unless in the good faith judgment of such      Member, there is not sufficient time to consult with the other Member      before such announcement or disclosure must be made under applicable      Laws.  Assuming sufficient time exists, the releasing or      disclosing Member or its Affiliates shall notify the other Member, as soon      as possible, of the pendency of such announcement or disclosure, and      provide a draft of such public disclosure three (3) business days prior to      such announcement and shall consider any suggested edits; the final form      and content, and the timing of any such announcement or disclosure shall      be in the sole discretion of the releasing or disclosing Member or its      Affiliate and appropriate legal counsel.  Any press release or      other public announcement or disclosure to be issued by either Member or      its Affiliates relating to this Business or the Company shall also      identify the other Member.  All public announcements made by and      in behalf of the Company shall be approved in form and content, and      timing, by the Management Committee and legal  counsel. |
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| 17.6 | Applicability to      Affiliates.  All obligations described in this Article      XVII are the obligations of all Affiliates of Members.  A breach      of any provision in this Article by an Affiliate is a breach by its      affiliated Member and shall be treated as same for purposes of liability      and indemnification. |
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| 18.1 | Notices.  All      notices, payments and other required or permitted communications (“Notices”) to either      Member or any other Party shall be in writing, and shall be addressed      respectively as follows: |
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----

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| 18.2 | Guarantee.  The      Guarantor covenants to NFUR, UR-Energy and NFU that it will cause      TargetSub to perform its obligations under this  Agreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Number/Gender.  The      singular shall include the plural and the plural the singular wherever the      context so requires, and the masculine, the feminine, and the neuter      genders shall be mutuallyinclusive. |
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| 18.4 | Currency.  All      references to “dollars” or “$” herein shall mean lawful currency of the      United States of America. |
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| 18.5 | Headings.  The      subject headings of the Sections and Subsections of this Agreement and the      Paragraphs and Subparagraphs of the Exhibits to this Agreement are      included for purposes of convenience only, and shall not affect the      construction or interpretation of any of its  provisions. |
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| 18.6 | Waiver.  The      failure of any Party to insist on the strict performance of any provision      of this Agreement or to exercise any right, power or remedy upon a breach      hereof shall not constitute a waiver of any provision of this Agreement or      limit such Party’s right thereafter to enforce any provision or exercise      any right. |
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| 18.7 | Modification.  No      modification of this Agreement shall be valid unless made in writing and      duly executed by all Members or all Parties as is appropriate in the      circumstances. |
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| 18.8 | Force      Majeure.  Except for the obligations to make payments and      issue shares when due pursuant to Sections 5.5(a) and 5.7(a)      hereunder, the obligations of a Member 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 Member to      grant); acts of God; Laws, instructions, requests or rulings of any      government or governmental entity; judgments or orders of any court;      inability to obtain on reasonably acceptable terms any public or private      license, permit, surface access or other authorization to the Company      Properties included in the current Program and Budget; curtailment or      suspension of activities to remedy or avoid an actual or alleged, present      or prospective violation of Environmental Laws; action or inaction by any      federal, state or local agency (including, for example, USNRC, EPA, BLM or      Wyoming DEQ) that delays or prevents the timely issuance or granting of      any required approval or authorization beyond the timeframe for such      approvals or authorization then experienced to be the industry/agency      norm; acts of war or conditions arising out of or attributable to war,      whether declared or undeclared; terrorism, terrorist acts or serious      threats to safety; riot, civil strife, insurrection or rebellion;      epidemic; fire, explosion, earthquake, storm, flood, sink holes, drought      or other adverse weather condition; delay or failure by suppliers or      transporters of materials, parts, supplies, services or equipment or by      contractors’ or subcontractors’ shortage of, or inability to obtain,      labor, transportation, materials, machinery, equipment, supplies,      utilities or services; accidents; breakdown of equipment, machinery or      facilities; actions by native rights groups, environmental groups, or      other similar special interest groups; or any other cause whether similar      or dissimilar to the foregoing.  The affected Member shall      promptly give Notice to the other Member of the suspension of performance,      stating therein the nature of the suspension, the reasons therefore, and      the expected duration thereof.  The affected Member shall resume      performance as soon as reasonably possible.  During the period      of suspension the obligations of Members to advance funds pursuant to      Section 9.2 shall be    reduced |
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18.8

| 18.9 | Rule Against      Perpetuities.  The Members do not intend that there shall      be any violation of the Rule Against Perpetuities, the Rule Against      Unreasonable Restraints on the Alienation of Property, or any similar      rule. Accordingly, if any right or option to acquire any interest in the      Company Properties, in a Membership Interest, in the Assets, or in any      real property exists under this Agreement, such right or option must be      exercised, if at all, so as to vest such interest within time periods      permitted by applicable rules. If, however, any such violation should      inadvertently occur, the Members hereby agree that a court shall reform      that provision in such a way as to approximate most closely the intent of      the Members within the limits permissible under such  rules. |
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| 18.10 | Further      Assurances.  Each of the Parties shall take, from time to      time and without additional consideration, such further actions and      execute such additional instruments as may be reasonably necessary or      convenient to implement and carry out the intent and purpose of this      Agreement or as may be reasonably required by lenders in connection with      Project Financing. |
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| 18.11 | Entire Agreement; Successors      and Assigns.  This Agreement contains the entire      understanding of the Parties and supersedes all prior agreements and      understandings between the Parties relating to the subject matter hereof.      This Agreement shall be binding upon and inure to the benefit of the      respective successors and permitted assigns of the  Parties. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.12 | Counterparts;      Facsimile/Electronic Transmission.  This Agreement may be      executed in any number of counterparts, and it shall not be necessary that      the signatures of all Parties be contained on any counterpart. Each      counterpart shall be deemed an original, but all counterparts together      shall constitute one and the same instrument.  This Agreement      may be delivered by facsimile or other electronic transmission evidencing      execution and shall be effective as a valid and binding Agreement between      the Parties for all purposes. |
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| 18.13 | Survival.  Notwithstanding      the cancellation, expiration or termination for any reason of this      Agreement it is acknowledged and agreed that those rights and obligations      which are by their nature intended to survive such cancellation,      expiration or termination shall survive and all defined terms necessary to      understand and enforce thoseSections. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 448018      EXPLORATION INC.   |
|--------|------------------------------------------|
| Per:   | “Mark      J. Morabito             |
|   |

|                                                               | NFUR      BOOTHEEL, LLC   |
|--------------------------------------------------------------------|-------------------------------------|
| Per:                                                               | “W.W.      Boberg”      |
| Ur-Energy      USA Inc. (Manager)W.      William Boberg, President |

|   | TARGET      EXPLORATION & MINING CORP.   |
|--------|--------------------------------------------------------|
| Per:   | “Mark      J. Morabito                           |
|   |

|      | As      to Representations and Warranties in sections 3.1 and 3.2:UR-ENERGY      USA INC.   |
|-----------|-------------------------------------------------------------------------------------------------------|
| Per:      | “W.W.      Boberg”                                                                        |
| President |

|                                                               | NFU      WYOMING, LLC   |
|--------------------------------------------------------------------|-----------------------------------|
| Per:                                                               | “W.W.      Boberg”    |
| Ur-Energy      USA Inc. (Manager)W.      William Boberg, President |

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| I. | EXHIBIT      A |
|----|----------------|

| II. | TO      EXPLORATION, DEVELOPMENT & MINE OPERATING  AGREEMENT |
|-----|------------------------------------------------------------------|

|   | OF      THE BOOTHEEL PROJECT, LLC |
|--------|-----------------------------------|

| III. | INITIAL      COMPANY PROPERTIES AND AREA OFINTEREST |
|------|-----------------------------------------------------|

|   |                                  |
|--------|---------------------------------------|
| A-1    |   Claim      List           |
| A-2    |   Area      of Interest     |
| A-3    |   Bootheel      Properties  |
| A-4    |   Buckpoint      Properties |

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|   | (a) | All      costs and expenses of constructing, replacing, expanding, modifying,      altering or changing from time to time the Mining facilities. Costs and      expenses of improvements (such as haulage ways or mill facilities) that      are also used in connection with workings other than the Company      Properties shall be charged to the Company Properties only in the      proportion that their use in connection with the Company Properties bears      to their total use; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Ad      valorem real property and unsecured personal property taxes, and all      taxes, other than income taxes, applicable to Mining of the Company      Properties, including without limitation all state mining taxes, sales      taxes, severance taxes, license fees and governmental levies of a similar      nature; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | All      expenses incurred relative to the sale of Products, including an allowance      for commissions at rates which are normal and customary in the      industry; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | All      amounts payable to the remaining Member during Mining pursuant to any      applicable operating or similar agreement in force with respect      thereto; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | All      expenditures funded by the non-withdrawing Member for Exploration and      Development on the CompanyProperties; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Interest      on monies borrowed or advanced for costs and expenses by the Company, but      in no event in excess of the maximum permitted by  law; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | An      allowance for reasonable working capital and  inventory; |
|--------|-----|------------------------------------------------------------------|

|   | (h) | Costs      of any Environmental Compliance Fund, or similar funding including but not      limited to unfunded reclamation obligations, as may be created by action      and directive of the Management Committee at any time during the term of      the Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Actual      costs of Operations; and |
|--------|-----|--------------------------------------|

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|   | (j) | Rental,      royalty, production, and purchasepayments. |
|--------|-----|---------------------------------------------------------|

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|   | (a) | If      the other Member fails to so elect within the period provided for above,      the Transferring Entity shall have sixty (60) days following the      expiration of such period to consummate the Transfer to a third party at a      price and on terms no less favourable to the Transferring Entity than      those offered by the Transferring Entity to the other Member in the      aforementioned notice; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      the Transferring Entity fails to consummate the Transfer to a third party      within the period set forth above, the pre-emptive right of the other      Member in such offered interest shall be deemed to be revived. Any      subsequent proposal to Transfer such interest shall be conducted in      accordance with all of the procedures set forth in this      Paragraph. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Transfer      by either Member of all or any part of its Membership Interest to an      Affiliate; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | Incorporation      of either Member, or corporate consolidation or reorganization of either      Member by which the surviving entity shall possess substantially of the      stock or ownership interest, and be subject to substantially all of this      liabilities and obligations of thatMember; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | Corporate      merger or amalgamation involving either Member by which the surviving      entity or amalgamated company shall possess all of the stock or ownership      interest, and be subject to substantially all of the liabilities and      obligations of that Member; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      transfer of Control of either Member by an Affiliate to such Member or to      another Affiliate; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (e) | subject      to provisions of the Agreement, the grant by either Member of a security      interest in its Membership Interest by  Encumbrance; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the      creation by any Affiliate of either Member of an Encumbrance affecting its      Control of such Member; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|  (g) | a      transfer by an Affiliate of either Member by or as a result of a Change of      Control of such Affiliate. |
|-----------|-------------------------------------------------------------------------------------------------------------------|

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|   | (a) | To      use the accrual method ofaccounting. |
|--------|-----|----------------------------------------------|

|   | (b) | Pursuant      to the provisions at Section 706(b)(1) of the Code, to use as its taxable      year the year ended May 31.  In this connection, NFUR represents      that its taxable year is the year ending December 31, and TargetSub      represents that its taxable year is the year ending May  31. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | To      deduct currently all development expenses to the extent possible under      Section 616 of the Code. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (d) | Unless      the Members unanimously agree otherwise, to compute the allowance for      depreciation in respect of all depreciable Assets using the maximum      accelerated tax depreciation method and the shortest life      permissible. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | To      treat advance royalties as deductions from gross income for the year paid      or accrued to the extent permitted bylaw. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | To      adjust the basis of property of the Company under Section 754 of the Code      at the request of either Member; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (g) | To      amortize over the shortest permissible period all organizational      expenditures and business start up expenses under Sections 195 and 709 of      the Code; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (a) | Exploration      expenses and development cost deductions shall be allocated among the      Members in accordance with their respective contributions to such expenses      and costs. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Depreciation      and amortization deductions with respect to a depreciable Asset shall be      allocated among the Members in accordance with their      respective |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | Production      and operating cost deductions shall be allocated among the Members in      accordance with their respective Membership  Interest. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Deductions      for depletion (to the extent of the amount of such deductions that would      have been determined for Capital Account purposes if only cost depletion      were allowable for federal income tax purposes) shall be allocated to the      Members in accordance with their respective contributions to the adjusted      basis of the depletable property. Any remaining depletion deductions shall      be allocated to the Members so that, to the extent possible, the Members      receive the same total amounts of percentage depletion as they would have      received if percentage depletion were allocated to the Members as      determined by Subparagraph 3.3(e), below, as the basis for calculating the      federal income tax deduction for percentage  depletion. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Subject      to Subparagraph 3.3(g) below, gross income on the sale of production shall      be allocated in accordance with the Members’ respective Membership      Interests. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (f) | Except      as provided in Subparagraph 3.3(g) below, gain or loss on the sale of a      depreciable or depletable asset shall be allocated so that, to the extent      possible, the net amount reflected in the Members’ Capital Account with      respect to such property (taking into account the cost of such property,      depreciation, amortization, depletion or other cost recovery deductions      and gain or loss) most closely reflects the Members’ Membership      Interests. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Gains      and losses on the sale of all or substantially all the Assets of the      Company shall be allocated so that, to the extent possible, the Members’      resulting Capital Account balances are in the same ratio as their      Membership Interests at the time of suchsale. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | The      Members acknowledge that expenses and deductions allocable under the      preceding provisions of this Paragraph may be required to be capitalized      into production under Section 263A of the Code. With respect to such      capitalized expenses or deductions, the allocation of gross income on the      sale of production shall be adjusted, in any reasonable manner      consistently applied by the Manager, so that the same net amount (subject      possibly to timing differences) is reflected in the Capital Accounts as if      such expenses or deductions were instead deductible and allocated pursuant      to the preceding provisions of thisParagraph. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | All      deductions and losses that are not otherwise allocated in this Paragraph      shall be allocated among the Members in accordance with their respective      Membership Interests. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Any      recapture of exploration expenses under Section 617(b)(1)(A) of the Code,      and any disallowance of depletion under Section 617(b)(1)(B) of the Code,      shall be borne by the Members in the same manner as the related      exploration expenses were allocated to, or claimed by,    them. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (k) | All      other items of income and gain shall be allocated to the Members in      accordance with their MembershipInterests. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | If      a reduced Membership Interest is restored pursuant to Section 10.6 of the      Agreement, the Manager shall endeavor to allocate items of income, gain,      loss, and deduction (in the same year as the restoration of such      Membership Interest or, if necessary, in subsequent years) so as to cause      the Capital Account balances of the Members to be the same as they would      have been if the restored Membership Interest had never been      reduced. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | If      the Members’ Membership Interests change during any taxable year of the      Company, the distributive share of items of income, gain, loss and      deduction of each Member shall be determined in any manner (1) permitted      by Section 706 of the Code, and (2) agreed by all Members. If the Members      cannot agree on a method, the method shall be determined by the Manager in      consultation with the Company’s tax advisers, with preference given to the      interim closing-of-the-books method except where application of that      method would result in undue administrative expense in relationship to the      amount of the items to beallocated. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | For      purposes of this Paragraph 3.3, items financed through indebtedness of, or      from revenues of, the Company shall be treated as funded from      contributions made by the Members to the Company in accordance with their      Membership Interests. “Nonrecourse deductions” as defined by Treas. Reg. §      1.704-2 (b)(1) shall be allocated between the Members in proportion to      their Membership Interests. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | If      either Member unexpectedly receives any adjustments, allocations, or      distributions described in Treas. Reg. §1.704-1(b)(2)(ii)(d)(4), §1.704-      1(b)(2)(ii)(d)(5) or §1.704-1(b)(2)(ii)(d)(6), which result in a deficit      Capital Account balance, items of income and gain shall be specially      allocated to each such Member in an amount and manner sufficient to      eliminate, to the extent required by the Treasury Regulations, the Capital      Account deficit of such Member as  quickly as possible. For the      purposes of this Subparagraph 3.4(a), each Member’s Capital Account      balance shall be increased by the sum of (i) the amount such Member is      obligated to restore pursuant to any provision of the Agreement, and (ii)      the amount such Member is deemed to be obligated to restore pursuant to      the penultimate sentences of Treas. Reg. §§ 1.704-2(g)(1) and      1.704-2(i)(5). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      there is a net decrease in partnership minimum gain for a taxable year of      the Company, each Member shall be allocated items of income and gain for      that year equal to that Member’s share of the net decrease in partnership      minimum gain, all in accordance with Treas. Reg. §1.704-2(f). If, during a      taxable year of the Company, there is a net decrease in partner      nonrecourse debt minimum gain, any Member with a share of that partner      nonrecourse debt minimum gain as of the beginning of the year shall be      allocated items of income and gain for the year (and, if necessary, for      succeeding years) equal to that partner’s share of the  net |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | If      the allocation of deductions to either Member would cause such Member to      have a deficit Capital Account balance at the end of any taxable year of      the Company (after all other allocations provided for in this Article III      have been made and after giving effect to the adjustments described in      Subparagraph 3.4(a)), such deductions shall instead be allocated to the      other Member. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Recapture      of tax deductions arising out of a disposition of property shall, to the      extent consistent with the allocations for tax purposes of the gain or      amount realized giving rise to such recapture, be allocated to the Members      in the same proportions as the recaptured deductions were originally      allocated or claimed. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | To      the extent required by Section 704(c) of the Code, income, gain, loss, and      deduction with respect to property contributed to the Company by a Member      shall be shared among both Members so as to take account of the variation      between the basis of the property to the Company and its fair market value      at the time of contribution. The Members intend that Section 704(c) shall      effect no allocations of tax items that are different from the allocations      under Paragraphs 3.3, 3.4 and 3.5 of the corresponding items for Capital      Account purposes; provided that gain or loss on the sale of property      contributed to the Company shall be allocated to the contributing Member      to the extent of the built-in gain or loss, respectively, as determined      under Treas. Reg. §1.704-3(a). However, to the extent that allocations of      other tax items are required pursuant to Section 704(c) of the Code to be      made other than in accordance with the allocations under Paragraphs 3.3,      3.4 and 3.5 of the corresponding items for Capital Account purposes,      Section 704(c) shall be applied in accordance with the method available      under Treas. Reg. §1.704-3 which most closely approximates the allocations      set forth in Paragraphs 3.3, 3.4, and3.5. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | Depletion      deductions with respect to contributed property shall be determined      without regard to any portion of the property’s basis that is attributable      to pre-contribution expenditures by NFUR that were capitalized under Code      Sections 616(b), 59(e) and 291(b). Deductions attributable to      pre-contribution expenditures by NFUR shall be calculated under such Code      Sections as if NFUR continued to own the depletable property to which      such deductions are attributable, and such deductions shall be reported by      the Company and shall be allocated solely to  NFUR. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      Members understand the allocations of tax items set forth in this      Paragraph, and agree to report consistently with such allocations for      federal and state tax purposes. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | A      separate Capital Account shall be established and maintained by the TMP      for each Member. Such Capital Account shall be increased by (i) the amount      of money contributed by the Member to the Company, (ii) the fair market      value of property contributed by the Member to the Company (net of      liabilities secured by such contributed property that the Company is      considered to assume or take subject to under Code Section 752) and (iii)      allocations to the Member under Paragraphs 3.3, 3.4 and 3.5 of Company      income and gain (or items thereof), including income and gain exempt from      tax; and shall be decreased by (iv) the amount of money distributed to the      Member by the Company, (v) the fair market value of property distributed      to the Member by the Company (net of liabilities secured by such      distributed property and that the Member is considered to assume or take      subject to under Code Section 752), (vi) allocations to the Member under      Paragraphs 3.3, 3.4 and 3.5 of expenditures of the Company not deductible      in computing its taxable income and not properly chargeable to a Capital      Account, and (vii) allocations of Company loss and deduction (or items      thereof), excluding items described in (vi) above and percentage depletion      to the extent it exceeds the adjusted tax basis of the depletable property      to which it is attributable. The Members agree that the net fair market      value of the property contributed by NFUR to the Company pursuant to      Section 5.3 of the Agreement is$1,000,000. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In      the event that the Capital Accounts of the Members are computed with      reference to the book value of any Asset which differs from the adjusted      tax basis of such Asset, then the Capital Accounts shall be adjusted for      depreciation, depletion, amortization and gain or loss as computed for      book purposes with respect to such Asset in accordance with Treas.      Reg. §1.704-1(b)(2)(iv)(g). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In      the event any interest in the Company is transferred in accordance with      the terms of the Agreement, the transferee shall succeed to the Capital      Account of the transferor to the extent it relates to the transferred      interest, except as provided in Treas.      Reg. §1.704-1(b)(2)(iv)(I). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (d) | In      the event property, other than money, is distributed to a Member, the      Capital Accounts of the Members shall be adjusted to reflect the manner in      which the unrealized income, gain, loss and deduction inherent in such      property (that has not been reflected in the Capital Accounts previously)      would be allocated among the Members if there was a taxable disposition of      such property for the fair market value of such property (taking Section      7701(g) of the Code into account) on the date of distribution. For this      purpose the fair market value of the property shall be determined as set      forth in Paragraph 4.2(a) below. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | In      the event the Management Committee designates a Supplemental Business      Agreement area within the Area of Interest as described in Article XIV of      the Agreement, the Management Committee shall appropriately segregate      Capital Accounts to reflect that designation and shall make such other      modifications to the Agreement as are appropriate to reflect the manner of      administering Capital Accounts in accordance with the terms of this      Exhibit E. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | NFUR is      contributing to the Agreement certain depletable properties with respect      to which NFUR currently having an adjusted tax basis which may consist in      part of depletable expenditures and in part of expenditures capitalized      under Code Sections 616(b), 291(b) and/or 59(e). For purposes of      maintaining the Capital Accounts, the Company’s deductions with respect to      contributed property in each year for (i) depletion, (ii) deferred      development expenditures under Section 616(b) attributable to      pre-contribution expenditures, (iii) amortization under Section 291(b)      attributable to pre-contribution expenditures, and (iv) amortization under      Section 59(e) attributable to pre-contribution expenditures shall be the      amount of the corresponding item determined for tax purposes pursuant to      Subparagraph 3.6(c) multiplied by the ratio of (A) the book value at which      the contributed property is recorded in the Capital Accounts to (B) the      adjusted tax basis of the contributed property (including basis resulting      from capitalization of pre-contribution development expenditures under      Sections 616(b), 291(b), and59(e)). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | The      foregoing provisions, and the other provisions of the Agreement relating      to the maintenance of Capital Accounts and the allocations of income,      gain, loss, deduction and credit, are intended to comply with Treas. Reg.      § 1.704-1(b), and shall be interpreted and applied in a manner consistent      with such Regulations. In the event the Management Committee shall      determine that it is prudent to modify the manner in which the Capital      Accounts, or any debits or credits thereto, are computed in order to      comply with such Regulations, the Management Committee, by unanimous      consent, may make such modification, provided that it is not likely to      have a material effect on the amount distributable to either Member upon      liquidation of the Company pursuant to Paragraph  4.2. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | If      the Members so agree, upon the occurrence of an event described in Treas.      Reg. § 1.704-1(b)(2)(iv)(5), the Capital Accounts shall be restated in      accordance with Treas. Reg. § 1.704-1(b)(2)(iv)(f) to reflect the manner      in which unrealized income, gain, loss or deduction inherent in the assets      of the Company (that has not been reflected in the Capital Accounts      previously) would be allocated among the Members if there were a taxable      disposition of such assets for their fair market values, as determined in      accordance with Subparagraph 4.2(a). For purposes of Paragraph 3.3, a      Member shall be treated as contributing the  portion |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | The      Capital Accounts of the Members shall be adjusted to reflect any gain or      loss which would be realized by the Company and allocated to the Members      pursuant to the provisions of Article III of this Exhibit if the Assets      had been sold at their fair market value at the time of liquidation. The      fair market value of the Assets shall be determined by agreement of the      Members; provided, however, that in the event that the Members fail to      agree on the fair market value of any Asset, its fair market value shall      be determined by a nationally recognized independent engineering firm or      other qualified independent party approved by both  Members. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All      Assets shall be distributed to the Members in accordance with the balances      in their Capital Accounts (after taking into account all allocations under      Article III of this Exhibit, including Subparagraph 3.3(g)). Unless      otherwise expressly agreed by both Members, each Member shall receive an      undivided interest in each and every Asset determined by the ratio of the      amount in each Member’s Capital Account to the total of both of the      Members’ Capital Accounts. Assets distributed to the Members shall be      deemed to have a fair market value equal to the value assigned to them      pursuant to Subparagraph 4.2(a)above. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | All      distributions to the Members in respect of their Capital Accounts shall be      made in accordance with the time requirements of Treas.      Reg. §1.704-1(b)(2)(ii)(b)(2) and(3). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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