Document:

Mining Lease Agreement between United Mines, Inc. and Sterling Mining Company

 Exhibit 10.10 
  
 This Mining Lease Agreement (“Agreement”) is made and entered into by and between United Mines, Inc., an Idaho
corporation, and Sterling Mining Company, an Idaho corporation. 
  
 RECITALS 
  

	A.	United Mines, Inc. is the owner of and in possession of two (2) certain unpatented mining claims situated in Shoshone County, Idaho described in Exhibit A attached to and by
this reference incorporated in this agreement. 

  

	B.	United Mines, Inc. desires to grant to Sterling Mining Company certain rights in and to the unpatented mining claims. 

  

	C.	Sterling Mining Company desires to examine the mineral potential of the unpatented mining claims and possibly to develop commercial mines thereon. 

  
 NOW THEREFORE, in consideration of their mutual Promises, the parties agree
as follows: 
  

	1.	Definition: The following defined terms, wherever used in this agreement, shall have the meanings described below: 

  

	 	1.1	“Effective date” shall mean
                        , 2002 

  

	 	1.2	“Lessor” shall mean United Mines, Inc. 

  

	 	1.3	“Lessee” shall mean Sterling Mining Company. 

  

	 	1.4	“Lease Year” shall mean each one (1) year period following the Effective Date and each anniversary of the Effective Date. 

  

	 	1.5	“Minerals” shall mean gold, silver, platinum, antimony, mercury, copper, lead, zinc, and all other mineral elements, mineral compounds and geothermal resources, whether
the same are known to exist on the Property or are discovered on the Property after the Effective Date and regardless of the method of extraction, mining or processing the same, whether known to exist or invented or developed after the Effective
Date. 

  

	 	1.6	“Net Proceeds” shall mean the 1 % net proceeds calculation as provided for in Exhibit B of this Agreement, attached hereto and incorporated herein by this reference.

  
 “Ore” shall mean materials from the
Property, the nature and composition of which, in the sole judgment of Lessee justifies either (a) mining or removing from place and shipping and selling the same, or delivering the same to a processing plant for physical or chemical treatment;
or (b) Leaching in place. 
  

	 	1.7	“Product” shall mean: (a) all Ore shipped and sold prior to treatment; and (b) all concentrates, precipitates and products produced by or for Lessee from Ore.

  

 Page 1 of 18 

	 	1.8	“Property” shall mean the unpatented mining claims described in Exhibit A of this Agreement. 

  

	 	1.9	“Waste” shall mean earth, rock or material mined or removed from the Property during the term of this Agreement, but which is not Ore. 

  

	2.	Grant of Exploration Privileges. Uses and Water Rights: 

  

	 	2.1	Grant of Exploration Privilege: Subject to the terms and conditions of this Agreement and to the extent permitted by applicable federal, state and local laws, regulations and
ordinances, Lessor grants to Lessee the exclusive right and privilege to enter on the Property for the purposes of exploration and prospecting for minerals, mineral substances, metals, ore-bearing minerals and rocks of every kind, including the
right of ingress end egress for personnel, machinery, equipment, supplies and products and the right to use so much of the surface and water located thereon as may be reasonably needed for such purposes. 

  

	 	2.2	Lease: Subject to the terms and conditions of this Agreement and to the extent permitted by applicable federal, state and local laws regulations and ordinances, Lessor eases
exclusively to Lessee the Property for the purposes of development, production, removal and sale of all Minerals mineral substances, metals, ore-bearing materials and rocks of every kind The rights subject to this Agreement include all the rights,
title and interests of Lessor in the Property, ands and mining claims described in this Agreement, including, but not limited to, the surface and subsurface, all Ores, Minerals, mineral elements, compounds and mineral rights, all water arid water
rights, geothermal resources and geothermal water in, upon and under the Property, all of the interests of Lessor in all options, contracts easements and rights of way reserved or granted in, upon or pertaining to the Property, and all rights, title
and interests which may be acquired by or for Lessor in or pertaining to the Property or any part, during the term of this Agreement, along with any and all veins, odes and mineral deposits now owned or acquired by Lessor after the Effective Date,
extending from or into or contained in the Property, and all tenements, hereditaments and appurtenances 

  

	 	2.3	 Uses: Lessee is granted the right, insofar as Lessor may lawfully grant the right, to use the Property, including but without being, limited to, the full
right, authority and privilege of placing and using excavations, open pit mines injection and production wells, openings, shafts, ditches and drains, and of constructing, erecting, maintaining, using, and at its election, removing any and all
buildings, structures, plants, roadways, pumps, pipelines, electrical power lines and facilities, stockpiles, waste plies, heap leach pads, tailings ponds and facilities, settling ponds, and all other improvements, property and fixtures for mining,
removing beneficiating, concentrating, smelting, extracting, leaching (in place or otherwise), refining and shipping of Ores, Minerals or Product, or for any incidental activities, whether presently contemplated or known to be used in the mining,
extraction, production or processing of Minerals, water or geothermal resources, or energy resources, or to any of the rights or privileges of Lessee 

  

 Page 2 of 18 

	 	 
hereunder. Lessee is further granted the right, insofar as Lessor may lawfully grant the right, to divert streams, to remove lateral and subjacent supports,
to use, cave, subside, consume, or destroy the surface or any part thereof, to deposit earth, rocks, waste, lean Ore and materials on any part of the Property, to leach the same, and to commit waste. 

  

	 	2.4	Water Rights: Lessor leases to Lessee all of Lessor’s water rights appurtenant to the Property, Subject to the regulations of the state in which the Property is situated
concerning the appropriation and taking of water, Lessee shall have the right to appropriate and use water, to drill wells for the water on the Property, and to lay and maintain all necessary water uses as may be required by Lessee in its operations
on the Property. 

  

	3.	Relationship of the Parties: 

  

	 	3.1	Limitation: Lessees performance of its duties and obligations under this Agreement shall not obligate Lessee to perform any additional services to Lessor nor to invest any
funds of any nature whatsoever n the exploration of, development or production of minerals on or under the Property. Lessee may, without notice to Lessor, explore, conduct geological, geochemical and geophysical investigations, sample, drill or
otherwise explore for, in the manner and to the extent that Lessee, in its sole discretion, deems advisable, to locate and develop Ores, Minerals and metals in and on the Property. Lessee may, in its sole discretion and without notice to Lessor,
terminate its exploration, development, mining and processing activities on the Property, and commence reclamation as required by applicable laws, regulations, and the terms and conditions of any governmental plan of operations, permit, license or
approval. Only the express duties and obligations described in this Agreement are binding upon Lessee, and Lessee shall have no duties or obligations, implied or otherwise, to explore for, develop or mine Minerals or Ores from the Property.

  

	 	3.2	No Partnership: This Agreement shall not be deemed to constitute any party, in its capacity as such, the partner, agent or legal representative of any other party, or to
create any partnership mining partnership or other partnership or other partnership relationship, or fiduciary relationship between them for any purpose whatsoever. 

  

	 	3.3	Competition: Except as expressly provided in this Agreement, each party shall have the free and unrestricted right independently to engage in and receive the full benefits of
any and all business endeavors of any sort whatsoever outside the Properly or outside the scope of this Agreement, whether or not competitive with the endeavors contemplated herein, without consulting the other or inviting or allowing the other
therein. In particular, without limiting the foregoing, neither party to this Agreement shall have any obligation to the other as to any opportunity to acquire any money, property, interest or right offered to it outside the scope of this Agreement.

  

 Page 3 of 18 

	4.	Term: The term of this Agreement shall be from the Effective Date for ten (10) years unless terminated or canceled, and for so long thereafter as Lessee produces or
processes Minerals from the Property. 

  

	5.	Payments: Lessee shall make the following payments to Lessor, 

  

	 	5.1	Net Proceeds: Lessee shall pay to Lessor a, sum equal to one (1) percent of the Net Proceeds from the production of Minerals from the Property. Payments of the Net
Proceeds shall be made in accordance with the provisions of Exhibit B attached hereto. 

  

	 	5.2	Method of Payment: All payments made by Lessee to Lessor shall be paid in accordance with the provisions of Exhibit B attached hereto. 

  

	 	5.3	Audit: Lessor or its authorized agents shall have the right to audit and inspect Lessee’s accounts and records used in calculating net proceed payments, which right may
be exercised as to each payment at any reasonable time during a period of ninety (90) days from the date on which the payment was made by Lessee. If no such audit is performed during such period, such -accounts, records and payments shall be
conclusively deemed to be true, accurate and correct. 

  

	6.	Compliance with the Law: The exercise by Lessee of any rights, privileges, grants and uses under this Agreement shall conform at all times with the applicable laws and
regulations of the state in which the Property is situated and the United States of America Lessee shall be fully responsible for compliance with all applicable federal, state and local reclamation statutes, regulations and ordinances relating to
such work, all at Lessee’s cost, and Lessee shall indemnify and hold harmless Lessor from any and all claims, assessments, fines and actions arising from Lessee’s failure to perform the foregoing obligations. Lessor agrees to cooperate
with Lessee in Lessee’s application for governmental licenses, permits and approvals, the costs of which shall be borne by Lessee. 

  

	7.	Mining Practices: Inspection of Data Reports: 

  

	 	7.1	Mining Practices: Lessee shall work the Property in a miner-like fashion. 

  

	 	7.2	Inspection of Data: During the term of this Agreement, Lessor shall have the right to examine noninterpretive factual data regarding the Property in Lessee’s possession
during reasonable business hours and upon prior notice, provided, however, that the rights of Lessor to examine such data shall be exercised in a manner such that inspection does not unreasonably interfere with the operations of Lessee,

  

	 	7.3	Reports: Lessee shall deliver to Lessor, on or before the nineteenth (19th) day after the end of each calendar year, a summary report of all exploration or development
work conducted by Lessee on the property for the previous year. Notwithstanding the foregoing, Lessee shall not be required in its reports to disclose proprietary information or information concerning, or which might tend to reveal, processes,
techniques or equipment which Lessee is under a contractual obligation not to reveal. 

  

 Page 4 of 18 

	 	7.4	Measurement Analysis: Lessee shall measure Ore, grade, take and analyze samples in accordance with industry practice, and shall keep accurate records thereof as a basis for
computing the net proceed payments. These records shall be available for inspection and copying by Lessor at all reasonable times subject to the provisions of this Agreement regarding accounts, records and payments. 

  

	8.	Production Records: Lessee shall keep accurate records of the sale or shipment of Product from the Property, and these records shall be available for inspection and copying
by Lessor at all reasonable times. 

  

	9.	Consolidation of Operations: 

  

	 	9.1	Cross Mining: Lessee is granted the right to mine and remove Ore, Minerals, Product and materials from the Property through or by means of shafts, openings or pits, which may
be in or upon adjoining or nearby lands owned or controlled by Lessee. Lessee may use the Property and any shafts, openings and pits on the Property for the mining, removal, treatment and transportation of Ores and materials from adjoining or nearby
lands, or for any purpose connected with such activities. Lessee shall have the right to treat or process in any manner (including in situ or solution mining) any Ore, Minerals, material and Products mined or produced from the Property and from
other lands, such treatment may be conducted wholly or in part at facilities established or maintained on the Property or on other lands. The tailings and residue from such treatment shall be deemed Waste and may be deposited on the Property or on
other lands. Lessee shall have no obligation to remove such Waste from the Property or to return to the Property Waste restating from the processing of Ores or materials from the Property. 

  

	 	9.2	Unitization: Lessee’s operations on the Property and its operations on other lands maybe conducted upon the Property and upon any and aft such other lands, as a single
mining operation to the same extent as if all such properties constituted a single tract of land. 

  

	 	9.3	Boundary Areas: Lessor waives all rights, statutory and otherwise, to require Lessee to maintain adjacent support for the Property and any contiguous property owned, eased or
controlled by Lessee or any other party. Lessor waives its right to prohibit Lessee from mining within any minimum distance of any boundary line of the Property and contiguous lands, and grants to Lessee the authority to enter into agreements with
the owners of contiguous properties so as to allow mining of all Ores located on or under the boundaries of the Property. Lessee shall secure the necessary consents and agreements from the owners of contiguous properties and the requisite approvals
of any governmental agencies. 

  

 Page 5 of 18 

	10.	Stockpiling: 

  

	 	10.1	Stockpiling: To the extent permitted by applicable federal, state and local laws, regulations and ordinances, Lessee shall have the right to stockpile on the Property or on
other lands any Ore, Minerals, materials or Waste mined or produced from the Property at such place or places as Lessee may elect, without the obligation to remove them from where stockpiled or to return them to the Property. The stockpiling of Ore
or materials from the Property on other lands shall not be deemed a removal or shipment thereof requiring payment in respect of Lessor’s interest. Lessee shall have the right to stockpile on the Property without obligation to remove the same at
any time, any Ore, materials or Waste mined or produced by Lessee from other lands. Lessor agrees to recognize the rights and interests of others in such Ores, materials and Waste stockpiled on the Property, and to permit their removal by Lessee or
the owner of such Ores and materials. 

  

	 	10.2	Waste: Waste, overburden, surface stripping, and other materials from the Property may be deposited on or off the Property. Nothing in this Section shall limit the provisions
of this Agreement concerning stockpiling Product on or off the Property. 

  

	11.	Mixing: Lessee shall have the right to commingle Ore from the Property or from other properties. Before commingling, the Ore from the Property and other Ore shall be measured
and sampled by Lessee in accordance with sound mining and metallurgical practice for metal content. Representative samples of Ore and other Ores shall be retained by Lessee, and assays of these samples shall be made before commingling to determine
the metal content of each Ore. Detailed records shall be kept by Lessee showing measurements, assays of metal content and gross metal content of the Ore and other Ore and such records shall be made available to Lessor at all reasonable times for
examination and copying. 

  

	12.	Treatment: Lessee shall have the right, but shall not be required, to beneficiate, concentrate, smelt, refine, leach and otherwise treat in any manner any Ore, Product and
materials mined or produced from the Property and from other lands. Such treatment may be conducted wholly or in part at a plant or plants established or maintained on the Property or on other lands. Lessor shall have no right, title or interest in
said tailings or residue. 

  

	13.	Scope of Agreement: This Agreement shall extend to and include only the Property described in this Agreement, the Exhibits of this Agreement, and all covenants, obligations,
representations and warranties as herein provided for, 

  

	14.	Compliance with Federal Land Policy and Management Act: Annual Assessment Work: Patent Application and Conversion of Claims: 

  

	 	14.1	 Compliance with Federal Land Policy and Management Act: Lessor represents and warrants that (a) all of the mining claims have been posted in accordance
with 

  

 Page 6 of 18 

	 	 
the mining laws of the United States and the State of Idaho, and in accordance with local customs, rules and regulations; and (b) none of the mining
claims are subject to invalidation or forfeiture as a result of any failure to comply with the Federal Land Policy and Management Act of October 21,1976 (‘FLPMA’, as amended) and the regulations promulgated thereunder or as a result
of any other act or omission of Lessor. 

  

	 	14.2	Annual Assessment Work: Beginning with the annual assessment work period ending September 1st, and for each annual assessment work period commencing during the term of
this Agreement, Lessee shall perform for the benefit of the Property work of a type customarily deemed applicable as assessment work, and of sufficient value to satisfy the annual assessment work requirements of all applicable federal, state and
local laws, regulations and ordinances, and shall prepare evidence of the same in a form proper for recordation and filing, and shall timely record and/or file such evidence in the appropriate federal, state and local office as required by
applicable federal, state and local laws, regulations and ordinances, provided that if Lessee elects to terminate this Agreement before July 1 of any year, it shall have no further obligation hereunder to perform annual assessment work, nor to
prepare, record and/or file evidence of the same with respect to that year. 

  

	 	14.3	Miner Waiver of Maintenance Fee: Lessor agrees to apply to the Bureau of Land Management and the appropriate county to qualify, if possible, said mining claims for the small
miner waiver of the $100.00 per mining claim Bureau of Land Management annual maintenance fee. In the event that the small miner waiver is not obtained, Lessee agrees to pay to the Bureau of Land Management on/or before August 15th the $100.00
per mining claim “annual advance maintenance fee” for each assessment year throughout the term of this lease, and provide Lessor with evidence of such payment on/or before the 15th day of August of each assessment year.

  

	 	14.4	Patent Application: Lessee may, at its expense, seek to patent in Lessor’s name any and all unpatented mining claims which are pert of the Property. Lessor pledges full
cooperation to Lessee in executing any documents necessary to accomplish patenting if so desired by Lessee. If Lessee begins patent proceedings and Lessee desires to discontinue them, or if this Agreement is terminated while patent proceedings are
pending, Lessee shall have no further obligation with respect thereto, except to pay any unpaid expenses accrued in such proceedings prior to its request to discontinue, or prior to termination, whichever occurs first. If the patent application
results in cancellation of any unpatented claims, Lessee shall not be liable for any claims, losses or damages resulting from such cancellation. Lessor appoints Lessee as Lessor’s lawful Attorney In Fact for the purpose of patent applications.
All patents shall be part of the Property and the parties will promptly, after issuance of each patent, execute and deliver an addendum to this Agreement and a memorandum of this Agreement to such effect. 

  

 Page 7 of 18 

	 	14.5	Conversion of Claims: If the mining laws applicable to the unpatented mining claims subject to this Agreement are amended or repealed, and if in either case the interests of
Lessor in the unpatented mining claims are converted or authorized to be converted, the interest of Lessee in the unpatented mining claims, as amended or converted, shall be subject to and shall constitute the Property subject to this Agreement. If,
pursuant to any amendment of the mining laws, Lessor is granted the right to convert its interest in the unpatented mining claims comprising the Property to a permit, license, lease, or other right or interest, Lessee may, in Lessees discretion and
in Lessor’s name, elect such conversion. Lessor shall bear the cost of the application for such conversion; however, Lessee shall, during the term of this Agreement, pay all periodic payments required to preserve or maintain such converted
interest, including without limitation, permit, license, lease, holding fees or other periodic payments. Any and all production royalties or fees based on or assessed against production of Minerals from the Property which are paid by Lessee to the
United States shall be credited in Lessee’s favor against Lessee’s Net Proceeds obligations owed to Lessor On the grant or issuance of such converted interests or rights, the parties shall execute and deliver an addendum to this Agreement
by which such converted interests or rights are expressly made subject to the Agreement. 

  

	15.	Liens and Notices of Non-Responsibility: Lessor and Lessee agree to keep the Property at all times free and clear of all liens, charges and encumbrances of any and every
nature and description done, made or caused by them, and to pay all indebtedness and liabilities incurred by or for them which may or might become a lien, charge or encumbrance against the Property before such indebtedness or liability shall become
a lien, charge or encumbrance, except that Lessee need not discharge or release any such lien, charge or encumbrance so long as Lessee is contesting the same, The parties agree that Lessor shall be informed immediately of the execution of this
Agreement by Lessee in order that Lessor can properly and timely record a Notice of Non-responsibility in the office of the county recorder of the county in which the Property is located. Nothing herein shall be construed to prevent Lessee from
assigning, pledging, encumbering, or otherwise transferring its interest in this Agreement or the Property for the purpose of acquiring financing for its activities or operations on the Property, or for any other purpose, which acts are expressly
authorized. 

  

	16.	Taxes: 

  

	 	16.1	 Real Property Taxes: Lessor shall pay any and all taxes assessed against the Property before execution of this Agreement. Lessee shall pay promptly before
delinquency all taxes and assessments, general, special, ordinary and extraordinary, that may be levied or assessed during the term of the Agreement, and upon the Property then remaining subject to this Agreement. All such taxes for the year in
which this Agreement is executed, and for the year in which this Agreement terminates, shall be prorated between Lessor and Lessee, except that neither Lessor nor Lessee shall be responsible for the payment of any such taxes which are based upon
revenues income or production from the Property assessed solely to the other party. Lessee always shah have the right to contest, in the 

  

 Page 8 of 18 

	 	 
courts or otherwise, in its own name or in the name of Lessor, the validity or amount of any such taxes or assessments if it deems the same unlawful, unjust,
unequal or excessive, or to take such other steps or proceedings as it may Deem necessary to secure a cancellation, reduction, readjustment or equalization thereat before it shall be required to pay the same. Lessee shall upon request furnish to
Lessor copies of receipts or proof of payment for all such taxes and assessments when paid. 

  

	 	16.2	Personal Property Taxes: Each party shall pay all taxes assessed against such party’s personal property, improvements or structures placed or used on the Property.

  

	 	16.3	Income Taxes: Lessee shall not be liable for any taxes levied on or measured by income, or other taxes applicable to Lessor, based upon payments under this Agreement or based
upon the production of Minerals, Ore or Product from the Property. 

  

	 	16.4	Delivery of Tax Notices: If Lessor receives tax bills or claims which are Lessee’s responsibility, Lessor shall promptly forward them to Lessee for appropriate action,
and if they are not received by Lessee at least ten (10) business days before any payment is due, Lessee shall not be responsible for any interest, penalty; charge, expense, or other liability arising from late payment. Lessor agrees to
indemnify and save harmless Lessee from all of the interest, penalties, charges, expenses or liabilities that may be incurred by Lessee from time to time as a result of Lessor’s failure to promptly forward tax bills or claims to Lessee.

  

	17.	Inspection: Lessor, or Lessor’s duly authorized representatives, shall be permitted to enter on the property, and the workings of Lessee thereon at all reasonable times
for the purpose of inspection. Lessor shall have the right to take samples of material from the Property for the purpose of assuring proper and accurate determination and payment of the Net Proceeds, but it shall enter on the Property at its own
risk, and in such a manner as not to unreasonably hinder, delay or interfere with the operations of Lessee. Lessor shall indemnify and hold Lessee harmless from any arid all damages, claims or demands arising out of injury to Lessor, Lessor’s
agents or representatives, or any of them, on the Property or on the approaches thereto. 

  

	18.	Title Information and Data: At any time during the term hereof, upon written request by Lessee, Lessor forthwith shall obtain and deliver to Lessee copies of all title
documents affecting the Property which Lessor has in its possession or available to it, including copies of any plats and field notes of surveys of the Property. Lessor agrees to make available to Lessee copies of any exploration data, assays, logs,
maps, geological, geochemical and geophysical surveys and reports that Lessor may have in its possession, without charge. 

  

 Page 9 of 18 

	19.	Representation of Title: 

  

	 	19.1	Unpatented Mining Claims: With respect to the Property, Lessor covenants, represents and warrants, which covenants, representations and warranties shall survive termination
of this Agreement, that: (a) Lessor holds the entire and undivided legal and equitable interests in the Property, subject to the paramount title of the United States and other matters of title disclosed in this Agreement; (b) Lessor has
good, right and full power to lease and to convey the interests described in this Agreement; (c) the Property is free and clear of all liens, claims and encumbrances except as otherwise provided in this Agreement; (d) Lessor shall not
commit any act or acts which will encumber or cause a lien to be placed on the Property. 

  

	 	19.2	Escrow of Patents Pending Dispute: At any time while this Agreement is in force and effect a third party asserts a claim of ownership in the Property or the Minerals wit oh
is adverse to the interest of Lessor or if Lessee is advised by legal counsel for Lessee that appears that a third party may have such a claim, Lessee may deposit any payments which would other wise be due to Lessor hereunder into escrow, and give
notice of such deposit to Lessor In the event of a dispute as to ownership of the Property, the Minerals, the surface of the Property, or the Net Proceeds, payment of Net Proceeds may be deferred until twenty (20) days after Lessee is furnished
satisfactory evidence that such dispute has been finally settled, and all provisions as to keeping this Agreement in force shall relate to such extended time for payment. 

  

	20.	Amendment and Relocation of Claims: Lessee shall have the right to amend or relocate in the name of Lessor any of the unpatented mining claims subject to this Agreement,
which Lessee deems advisable to so amend or relocate. Lessor appoints Lessee as Lessor’s lawful Attorney In Fact for the purpose of the location, amendment or relocation of any such claims. All amended or new locations shall be part of the
mining claims subject to this Agreement, and the parties will promptly, after amendment or location of such claims, execute and deliver an addendum to this Agreement, and an amended memorandum of this Agreement to such effect.

  

	21.	Covenant, Warranties and Representations: Each of the parties covenants, warrants and represents for itself as follows: 

  

	 	21.1	Compliance with Laws: That it has complied with all applicable laws and regulations of any governmental body, federal, state or local, regarding the terms of this Agreement
and the performance thereof. 

  

	 	21.2	No Pending Proceedings: That there are no lawsuits or proceedings pending or threatened which affect its ability to perform the terms of this Agreement

  

	 	21.3	Authority: That it has the full right, title and authority to enter into this Agreement, and to perform the same in accordance with its terms. Neither this Agreement, nor its
performance, violates or constitutes a default under the provisions of any other agreement to which it is a party or to which it is 

  

 Page 10 of 18 

	 	21.4	Commissions Finders’ Fees: That it has not utilized the services of a broker or a finder in the negotiation and/or execution of this Agreement, and that t has not
incurred any obligation to pay a broker’s commission or finder’s fee upon the execution and consummation hereof. 

  

	 	21.5	Costs: That it shall pay all costs and expense incurred or to be incurred by it in negotiating and preparing this Agreement, and in closing and carrying out the transactions
contemplated by this Agreement. 

  

	22.	Lessor’s Covenants, Representations and Warrants: Lessor covenants, represents and warrants as follows: 

  

	 	22.1	Noninterference: Lessor hereby covenants that Lessor will not do or permit to be done any act which would or might hinder or impair the rights of Lessee to exercise any right
granted to Lessee under this Agreement, or to acquire all rights, title and interests in and to the Property 

  

	 	22.2	Estoppels Certificate: On written request from Lessee, and so long as Lessee is not in default under this Agreement, Lessor will execute and deliver to Lessee an estoppels
certificate, in form acceptable to Lessee, whereby Lessor confirms that the Agreement is in full force and effect and that there are no defaults by Lessor or Lessee under the lease. 

  

	 	22.3	Environmental Conditions: Lessor is not aware of, nor has it received notice from, any governmental agency of any condition existing on the Property or created by Lessor
which is or might be a violation of any applicable law, regulation or ordinance. 

  

	 	22.4	Non-Foreign Status: Lessor is not a “foreign person” as defined under Section 1445(f) of the Internal Revenue Code. 

  

	23.	Termination by Lessor: In the event of any default or failure by Lessee to comply with any of the covenants, terms or conditions of this Agreement, Lessor shall be entitled
to give Lessee written notice of the default, specifying details of the same. If such default is not remedied within sixty (60) days after receipt of the notice, provided the same can reasonably be done within that time, or, if not, if Lessee
has not within that time commenced action to cure the same, or does not after such commencement diligently prosecute such action to completion, then this Agreement shall be deemed canceled and terminated effective on the sixtieth (60th) day
after the receipt of the notice; provided that Lessor, prior to the expiration of said sixty (60) day notice period, has reconveyed the Property to the original owners, their heirs or assigns. Termination shall not be based on default or on a
failure to remedy the same, which results from any cause beyond the reasonable control of Lessee, including without limitation, the Force Majeure provisions of this Agreement. 

  

 Page 11 of 18 

	24.	Termination: Lessee may at any time terminate this Agreement by giving written notice to Lessor, On or promptly after delivery of the notice of termination, Lessee shall
execute and deliver to Lessor a written release of this Agreement in proper form for recording. If Lessee terminates this Agreement, Lessee shall not be required to perform the obligations or to pay Net Proceeds which accrue or come after the
termination date, which shall be the date Lessee’s notice is effective pursuant to the terms of this Agreement. On expiration, termination or surrender of this Agreement, Lessee shall return the Property, or any part of the Property
surrendered, in a state of compliance with applicable laws, regulations and ordinances of any governmental agency or authority having jurisdiction of the Property. If Lessee’s compliance is incomplete at such time, Lessee shall diligently take
the actions necessary to complete compliance. 

  

	25.	Removal of Equipment: Lessee shall have six (6) months after termination of this Agreement to remove from the Property all buildings, structures and equipment, and to
restore or diligently act to restore the Property to an environmentally acceptable state as may be required by local, state or federal authorities. Any buildings, structures or equipment, including personal property, remaining on the Property after
the time described in this Section shall be deemed to be owned by Lessor with no further action or the part of the parties. 

  

	26.	Data: Upon termination of this Agreement, Lessor shall have the right to request a Copy of all noninterpretive factual data regarding the Property in Lessee’s possession
at the time of termination. Lessee agrees that it will, within thirty (30) days after receipt of a timely written demand by Lessor, deliver to Lessor a copy of all such noninterpretive factual data. Lessee shall `nave no liability on account of
any such information received or acted on by Lessor or any other party to whom Lessor delivers such information. Lessor must exercise its right to request the information referred to herein in writing, and must give such written request within
thirty (30) days after termination of this Agreement. Absent such timely written demand, Lessee shall have no obligation under this Section to provide such information. 

  

	27.	 Confidentiality: The data and information, including the terms of this Agreement, coming into the possession of Lessor by virtue of this Agreement, shall be
deemed confidential, and shall not be disclosed to outside third parties except as may be required to publicly record or protect title to the Property, or to publicly announce and disclose information under the laws and regulations of the United
States, any state or local government or any country, or under the rules and regulations of any stock exchange on which stock of any party, or the parent or affiliates of any party, is listed. Lessor agrees, with respect to any public announcements
(other than those exceptions set forth in the preceding sentence), including the announcement of the execution of this Agreement, if any, to inform Lessee of the contents of the announcement or disclosure in advance of its intention to make such
announcement in sufficient time to permit Lessee to jointly or simultaneously make a similar public announcement or disclosure if the other party so desires, except that in the event any party anticipates selling or assigning all or a portion of its
interest or negotiations to procure loans from third parties are undertaken, such party shall have the right to furnish information to the party to whom such conveyance or assignment is anticipated, or with whom such negotiations or cans are
under-taken, upon obtaining 

  

 Page 12 of 18 

	 	 
from such party art agreement to hold confidential any information so furnished. Nothing in this Agreement shall limit or restrict the right of Lessee to
provide, deliver or release to parent companies, companies with a common parent, subsidiary companies, affiliated or related companies and/or coventurers the data and information, including the terms of this Agreement, coming into the possession of
Lessee by virtue of this Agreement. 

  

	28.	Force Majeure: The respective obligations of either party, except Lessee’s obligation to maintain the insurance and perform the annual assessment work required under
this Agreement, shall be suspended during the time and to the extent that such party is prevented from compliance, in whole or in part, by war or war conditions, actual or potential, earthquake, fire, flood, strike, labor stoppage, accident, riot,
unavoidable casualty, act or restraint, present or future, of any lawful authority, statute, governmental regulation or ordinance, environmental restrictions or conditions, permit or license approvals, act of God, act of public enemy, delays in
transportation, or other cause of the same or other character beyond the reasonable control of such party. 

  

	29.	Disputes not to Interrupt Operations: Disputes or differences between the parties shall not interrupt performance of this Agreement or the continuation of Lessees operations.
In the event of any dispute or difference, operations may be continued, and settlements and payments may be made in the same manner as before such dispute or difference. 

  

	30.	Memorandum Agreement: Upon execution of this Agreement, the parties shall execute and cause to be delivered a short form of this Agreement which shall be recorded in the
office of the recorder of each county wherein all or part of the Property is located. The execution and recording of the memorandum of Agreement shall not limit, increase or in any manner affect any of the terms of this Agreement, or any rights,
interest or obligations of the parties. 

  

	31.	Notices: Any notices required or authorized to be given by this Agreement shall be in written form. Any notices required or authorized to be given by this Agreement may be
sent by registered or certified “deliver”, postage prepaid and return receipt requested”, addressed to the proper party at the following address or such address as the party shall have designated to the other party in accordance with
this Section. Any notice required or authorized to be given by this Agreement shall be deemed to have been sufficiently given or served in written form if mailed as provided herein, personally delivered to the proper party, or sent by telex,
telegraph, facsimile or other wire service, and actually received by such parry. Such notice shall be effective on the date of receipt by the addressee party. 

  

			
	If to Lessor:	  	 United Mines, Inc.
 P.O. Box 488
 Coeur d’ Alene, ID 83814

		
	If to Lessee:	  	 Sterling Mining Company
 411 Coeur d’ Alene
Avenue
 Coeur d’ Alene, ID 83814

  

 Page 13 of 18 

	32.	Binding Effect of Obligations: This Agreement shall be binding upon and inure to the benefit of the respective parties and their heirs, successors and assigns.

  

	33.	Whole Agreement: The parties agree that the whole agreement between them is written in this Agreement, and in a memorandum of agreement of even date which is intended to be
recorded. There are no terms or conditions, express or implied, other than expressly stated in this Agreement. This Agreement may be amended or modified only by an instrument in writing, signed by the parties with the same formality as this
Agreement. 

  

	34.	Governing Law: This Agreement shall be construed and enforced in accordance with the laws of the state in which the Property is situated. 

  

	35.	Multiple Counterparts: This Agreement maybe executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute the
same Agreement. 

  

	36.	Severability: If any part, term or provision of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any law of the United States or
any state, the validity of the remaining portions or provisions shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term or provision held to be
invalid. 

  

	37.	Bankruptcy or Insolvency Proceedings by Lessee: If Lessee be adjudged bankrupt or insolvent, or shall make an assignment for benefit of creditors, this Agreement shall
thereupon immediately terminate, and t being further understood and agreed that this Agreement shall not be assignable by any process of law, nor be treated as an asset of Lessee in any bankruptcy or insolvency proceedings; nor shall it pass under
the control of any trustee or assignee of Lessee by virtue of any proceedings in bankruptcy or insolvency, or under any assignment by Lessee for the benefit of creditors. 

  

	38.	Assignment: Upon providing written notice to the other party in accordance with the terms of this Agreement, either party may assign its respective rights and obligations
under this Agreement, provided that the assignee executes an assumption of all of the assignor’s obligations hereunder and agrees to be bound by all the terms and conditions of this Agreement. No such assignment shall in any way enlarge or
diminish the right or obligations of Lessee or Lessor hereunder. Upon the assumption by the assignee of the assignor’s obligations, the assigning party shall be fully released from, and shall not be liable or responsible to the nonassigning
party in any way for any duties, costs, payments or other liabilities or obligations that thereafter arise or accrue directly or indirectly under this Agreement. A fully executed memorandum of assignment in recordable form shall be provided to the
non-assigning party by the assigning party. 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. 
  

 Page 14 of 18 

			
	UNITED MINES, INCORPORATED
		
	By:	 	  

		
	Title:	 	  

		
	By:	 	  

		
	Title:	 	  

	
	STERLING MINING COMPANY
		
	By:	 	  

		
	Title:	 	  

  

 Page 15 of 18 

 EXHIBIT “A” 
  
 to 
  
 That certain Mining Lease Agreement made effective the      day of
                     2002, by and between United Mines, Inc. and Sterling Mining Company. 
  

					
	Claim Name

	 	County Reception #

	 	BLM Serial Numbers

	BC#1	 	40186	 	IMC186068
	BC#3	 	40187	 	IMC186069

  
 A total of two (2) unpatented
lode mining claims, also known as the BC#1 and BC#3, located in Section 15, Township 48 N, Range 3, E.B.M., Shoshone County, State of Idaho. 
  

 Page 16 of 18 

 EXHIBIT B 
  

to 
  
 That certain Mining Lease Agreement made effective the          day of             , 2002, by and
between United Mines, Inc. and Sterling Mining Company. 
  
 NET
PROCEEDS CALCULATION 
  
 1.1 Income and Expenses. Net
Proceeds shall be calculated by deducting from the Gross Revenue (as defined below) realized (or deemed to be realized), such costs and expenses attributable to Exploration, Development, Mining, the marketing of Products and other Operations as
would be deductible under generally accepted accounting principles and practices consistently applied, including without limitation: 
  
 (a) All costs and expenses of 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 Properties shall be charged to the Properties only in the proportion that theft use in connection with the 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 Properties, including without limitation all state mining taxes, sales taxes, severance taxes, license fees and governmental levies of a similar nature; 

 
 (c) A pro rata portion of (I) the salaries and expenses of employees
serving Operations whose time is not allocated directly to such Operations, and (III) the costs of maintaining and operating an office and any necessary sub office and (III) all necessary camps, including housing facilities for employees, used for
Operations. The expense of those facilities, less any revenue there from, shall include depreciation or a fair monthly rental in lieu of depreciation of the investment; 
  
 (d) All expenses incurred relative to the sale of Products, including an allowance for commissions at rates, which are
normal and customary in the industry. 
  
 (e) All amounts payable
to the Operator during Mining pursuant to any applicable operating or similar agreement in force with respect thereto; 
  
 (f) The actual cost of. investment under the Agreement but prior to beginning of Mining, which shall include all expenditures for Exploration and
Development of the Properties. 
  
 (g) Interest on monies borrowed
or advanced for costs and expenses, but in no event in excess of the maximum permitted by law; 
  
 (h) An allowance for reasonable working capital and inventory; 
  
 (i) Cost of funding environmental compliance; Actual costs of Operations; and 
  
 (k) Rental, royalty, production and purchase payments. 
  

 Page 17 of 18 

 For purposes hereto the term “Gross Revenue” shall mean the sum of (I) gross receipts from
sale of Products, less any charges for sampling, assaying, or penalties; (II) gross receipts from the sale or other disposition of Assets; (III) insurance proceeds; (IV) compensation for expropriation of Assets; and (V) judgment proceeds.

  
 It is intended that Sterling Mining Company shall recoup from
Gross Revenue all of its on-going contributions for Exploration, Development, Mining, Expansion and Modification and marketing Products before any Net Proceeds are distributed. No deduction shall be made for income taxes, depreciation, and
amortization. 
  

 Page 18 of 18Mining Lease dated April 23, 1996

 Exhibit 10.11 
  
 STERLING MINING LEASE 
  
 THIS MINING LEASE, effective as of the 23rd day of April, 1996, regardless of the actual times of signing and acknowledgment, between STERLING MINING
COMPANY, an Idaho corporation, hereinafter called Lessor, and SILVER VALLEY RESOURCES CORPORATION, a Delaware Corporation, hereinafter called Lessee, 
  
 WITNESSETH: 
  
 Article 1. Description of The Property. 
  
 Lessor represents that it is the owner of 17 unpatented lode mining claims situated in Shoshone County, Idaho, as described on Exhibit A which by
this reference is made a part of this Lease. 
  
 Article
2. Grant of Lease 
  
 The Lessor in consideration
of the royalties herein reserved and the covenants to be performed by Lessee, does hereby lease, let and demise unto Lessee, its successors and assigns, all of the above described property (hereinafter referred to as the “leased premises”
or “demised premises”). 
  
 Article 3. Term
of Lease 
  
 The primary term of this lease shall be
twenty (20) years to commence on April 23, 1996. Upon written notice, which must be sent to Lessor at least thirty (30) days prior to the expiration of the primary term in order to be effective, Lessee may extend this lease for a
successive term of twenty (20) years and so long thereafter as ores or minerals from the leased premises are being developed, mined, processed or marketed on a continuing basis. Whenever the continued term of this Lease is dependent upon
continuing development, mining, processing or marketing by Lessee and there occur periods (i) when there is no reasonable market for ores or minerals which are or could be produced by Lessee from the leased premises, or (ii) when the
continuing development, mining, processing or marketing by Lessee of ores or minerals from the leased premises is prevented or interrupted by a condition or happening of force majeure, the term of this Lease shall nevertheless continue during such
periods, subject to written notice of termination by Lessor if the suspension of operations for the enumerated causes has continued without interruption for at least five (5) years. When a satisfactory market becomes available, or upon
cessation of any period of force majeure, Lessee shall have a. reasonable time thereafter within. which to resume development, mining, processing or marketing of ores and minerals from the leased premises. No cessation of operations for one hundred
eighty (180) consecutive days or less, when such cessation is caused by any other reason, shall be considered a break in the continuity of development, mining, processing or marketing. A “reasonable market’, shall not be deemed to
exist and Lessee may suspend operations during periods when the products of the leased premises cannot be produced and sold at a profit by reason of low metal prices or otherwise or when such products cannot be readily sold at prevailing prices so
that an unreasonable inventory thereof has accumulated or otherwise would accumulate. 

 Article 4. 
  
 (a). Possession and Control of Property. Lessee shall have, and it is hereby given and granted, the right to enter
upon and take over, at the beginning of the primary term the sole and exclusive possession and control of the leased premises and the whole and every part thereof, and, during the term of this lease, to remain in the sole and exclusive possession
and control thereof, and to investigate, measure, sample, examine, test, develop, work, mine, operate, use, manage, and control the same and the water and water rights appurtenant thereto, and to mine, extract and remove from said property the ores
and minerals therein and appurtenant and belonging thereto, and to treat, mill, ship, sell or otherwise dispose of the same and receive the full proceeds therefrom; and to erect, construct, maintain, use and operate thereon and therein buildings,
structures machinery and equipment. The time, nature, location and extent of such or any or all the above activities’ and mining or mining operations and the cessation and resumption thereof shall be at the sole discretion of Lessee and may
include, without limitation, open pit, underground strip, or solution mining methods, together with the right to surface as may be necessary, useful or convenient for the enjoyment of all rights herein granted including construction of a surface
mine waste rock dump, if necessary, from development of Lessor’s property. Any surface mine waste dump constructed during the life of this lease shall be reclaimed to industry standards and applicable law by Lessee at lease termination.

  
 (b). Timber. Lessee shall have the right, pursuant to
applicable law, to manage and use timber upon the property in accordance with law. In addition, in the event Lessee elects to seek and obtains patents for the property described on Exhibit A, Lessee shall have the right to manage and harvest the
timber situated thereon. In either event Lessee shall account for the value of timber removed and the value shall be treated just as proceeds from the sale of metal is treated and accounted for under this lease. 
  
 Article 5. Manner of Work 
  
 Lessee agrees to cause all work, development and mining to be done in a
careful and miner-like manner, and to conform in all . respects to the mining laws and re and the State of Idaho regulations of the United States. 
  
 Article 6. Work Requirements 
  
 During the first three years of the primary term hereof Lessee shall perform at least 1,500 feet of diamond drilling upon, toward or for the benefit of
the leased premises. Thereafter, Lessee shall perform at least 1,500 feet of diamond drilling or its equivalent upon, toward or for the benefit of the leased premises for each five year period this lease is in effect. In the event work is performed
in excess of the minimum during any period, the excess may be carried forward to the credit of Lessee for subsequent periods. 
  
 Article 7. Royalties 
  
 (a). Lessee shall pay Lessor a 15% Net Profits Royalty, as defined in Exhibit B, on all development and production ores and minerals extracted,
milled and sold from the leased premises in accordance with Exhibit B which is attached hereto and by this reference is made a part of this Lease. Obligation for quarterly payment of the Net Profits Royalty shall commence after Lessee has
recovered all operating, exploration and development expenditures 

  

 2 

 
incurred by Lessee attributed to the leased premises following the effective date of this lease. For the purpose of calculating these costs, all applicable
operating, exploration and development expenditures shall be determined in accordance with generally accepted accounting principles for metallic mining ventures within the United States applied on a consistent basis (“GAAP”) which are
incurred after the effective date of this lease, as follows (calculation of Net Profits Royalty shall be determined exclusively under Exhibit B after these operating, exploration and development expenditures have been recovered): 
  
 (1). Operating expenditures include: 
  
 (i). Mining Costs. Costs incurred by Lessee in exploring for,
developing, mining, extracting, removing and transporting to a mill ores and minerals produced from-the-leased premises. Such costs shall include, without limitation, those incurred for labor, machinery operation, fuel, explosives and other
materials, exploration drilling, developmental or ore delineation drilling, allowance for depreciation and amortization of mining equipment and machinery acquired after the effective date of this Lease. Mining costs shall not include depletion or
income, taxes. 
  
 (ii). Milling and Processing Costs.
Costs incurred in milling or processing ores and minerals produced from the leased premises at a mill or central processing facility utilized to process ores and minerals produced from the leased premises, if any, (hereinafter referred to as the
“Mill”). 
  
 (iii). General and Administrative
Costs. Costs incurred as a direct result of the administration of the leased premises, and the production of ores and minerals therefrom, including costs incurred in connection with the marketing, selling, and collection of proceeds from sale of
ores and minerals produced from the leased premises. 
  
 (iv).
Taxes. All taxes levied against Lessee’s operation of the leased premises, excluding income taxes but including mining and property taxes. 
  
 (2). Exploration and Development Expenditures. Costs incurred by Lessee after ‘the effective date hereof with respect to exploring and
developing the leased premises and all matters connected therewith including, but not limited to, costs relating to geological, geochemical and geophysical studies, exploration and developmental drilling, sampling and assaying, mine design and
development, acquisition of mining or processing equipment or machinery, direct expenses of making application for and obtaining environmental and regulatory permits from government agencies (including reasonable attorney’s fees), costs to
patent the unpatented claims and any other costs which would be included within mining costs and/or milling and processing costs if such costs were incurred after the Commencement of Commercial Production. 
  
 If any of the costs otherwise includable in Lessee’s costs as set forth
above are incurred partly for the benefit of any other properties or interests of Lessee, only the portion of such costs reasonably attributable to exploration, development and operation of the leased premises in accordance with GAAP shall be
included. 
  

 3 

 (b). Commingling of Ore. Lessee may commingle ore from the leased premises with ore from other
properties, either before or after concentration or beneficiation, so long as the data necessary to determine the weight and grade, both of the ore removed from the leased premises and the ore with which it is commingled, are obtained by Lessee.
Lessee shall then use that weight and grade data to allocate Gross Sales (as defined in Exhibit B)from the commingled ore between the leased premises and the other properties from which the other commingled ore was removed. All such weight,
grade and allocation calculations by Lessee shall be done in a manner recognized by the mining industry as practical and sufficient at that time. If, in Lessee’s judgment, it is impractical. to determine which portions of any of the costs and
expenses described in Paragraph (a) above are directly attributable to ore removed from the leased premises, Lessee may allocate all such costs and expenses on a straight-line, per-ton basis among all ores that give rise to those expenses, in
accordance with GAAP. 
  
 (c). Treatment at Lessee’s
Processing Facilities. Lessee shall have the right to purchase and to treat concentrates and smelting ores produced from the leased premises at its own metallurgical facility; provided, however, that any such purchase and treatment shall be made
under comparable terms as the metallurgical facility is then offering to other shippers of concentrates and smelting ores on purchases of like quantities and qualities. 
  
 (d). Disputes Regarding Costs Or Royalties. Lessor shall be deemed to have waived any right the Lessor may have had
to object to the quarterly charging of costs to the leased premises or to any Net Profit Royalty settlement made by Lessee in accordance with Exhibit B for any calendar quarter, unless Lessor notifies Lessee in writing of such objection within
twelve (12) months after such charges are made or such Net Profit Royalty is due under this Lease. If Lessor and Lessee are unable to resolve the question by agreement within thirty (30) days after Lessee’s receipt of Lessor’s
notice, the dispute shall be resolved by arbitration, in accordance with the provisions of Article 21. 
  
 (e). Advance Minimum Royalty. Commencing with the month this lease is executed and for each month thereafter that this lease continues and while it
remains unterminated, Lessee shall pay an advance minimum royalty of $350 per month. This advance minimum royalty shall be credited to the Net Profits Royalty obligation referred to above in this Article 7. The royalty shall be paid during the
month this lease is executed on or before the last day of the month, and thereafter on or before the last day of each succeeding month. 
  
 Article 8. Tailings and Residue 
  
 Tailings and other residue resulting from the milling or other beneficiating of ores produced from the leased premises and subsequently utilized in mining
operations shall be the sole and exclusive property of Lessee prior to termination of this lease. Tailings and other residue remaining underground in the leased premises shall become the property of the Lessor upon termination of this lease. A
separate written agreement will be negotiated by the parties in good faith for the construction of a surface mill tailings impoundment on the leased premises if determined necessary by the Lessee. The terms of such agreement shall be consistent with
industry standards and the parties agree to submit to arbitration any matter to which the, parties can not agree during the negotiation of such an agreement. 
  

 4 

 Article 9. Cross-Mining Rights 
  
 Lessee is hereby granted the right, if it so desires, to mine or remove from
the leased premises any ores, waste, water and other materials existing therein or thereon or in any part thereof, through or by means of shafts, openings or pits which may be sunk or made upon adjoining or nearby property owned or controlled by
Lessee, and may stockpile any ores, waste, or other materials and/or concentrated products of ores or materials from the leased premises or any part thereof, upon stockpile grounds situated upon any such adjoining or nearby property; and Lessee may,
if it so desires, use the leased premises and any part thereof and any shafts, openings, pits and stockpile grounds sunk or made thereon for the mining, removal and/or stockpiling of any ores, waste, water and other materials and/or concentrated
products of ores or materials from any such adjoining or nearby property, or for any purpose or purposes connected therewith, not, however, preventing or interfering with the mining or removal of ore from the leased premises. If, after this lease
expires or terminates, Lessee is exploring, mining or developing adjacent properties thereto, it may use any haulageways developed during the terms of the lease for ingress and egress reasonably necessary to explore, develop or mine such adjacent
properties. The Lessee shall be responsible for haulageway maintenance costs and liabilities resulting from its negligent acts. The Lessee’s right of ingress and egress shall not interfere with future development of the property by the Lessor.
This provision for ingress and egress to and from such adjacent properties shall survive the expiration or termination of this lease. 
  
 Article 10. Vertical Boundary Planes 
  
 In consideration of Lessee’s execution of this mining lease, and the reciprocal benefits received by reason of the terms of this Article by the
Lessor and the Lessee, Lessor and Lessee hereby agree with each other that any and all ores and minerals within the surface boundaries extended downward vertically of any claim so held under lease and herein defined as leased premises shall belong
to such claim. 
  
 Article 11. Records and
Inspection 
  
 Lessee’s engineering progress maps
and all factual exploration, development and production data including drill core and assay results (but excluding interpretive information or data) from the leased premises shall be available upon reasonable request for Lessor’s inspection and
copying. The Lessor may enter said property at reasonable times for the purpose of inspecting the same, and Lessee shall facilitate such inspection in reasonable ways, but Lessor shall enter upon said leased premises at Lessor’s own risk and so
as not to hinder unreasonably the operations of Lessee; and the Lessor shall indemnify and hold harmless the Lessee from any damage, claim or demand by reason of injury to or the presence of the Lessor or the Lessor’s agents, representatives,
licensees, or guests or any of them on the leased premises or approaches thereto. 
  
 Article 12. Taxes 
  
 Lessee shall pay before they are delinquent all general property taxes and governmental rental fees for unpatented claims assessed against. the Lessor’s ownership in the leased premises 

  

 5 

 
during the term of this lease, beginning with the year 1996. Lessee shall also pay, before they are delinquent, all taxes levied or assessed against any or
all personal property, machinery and equipment placed upon the leased premises by the Lessee during the term of this lease, beginning in the year 1996. As to severance tax and all other taxes that are now or may be hereafter levied and computed on
the amount or value of ores produced from the leased premises, Lessee shall pay the same and charge the expenditure to costs. 
  
 Article 13. State and Federal Laws and Regulations 
  
 Lessee shall comply with the Workmen’s Compensation laws of Idaho and with Social Security, Unemployment Insurance and
all other state and federal laws and regulations relating to Lessee’s operations and shall save Lessor harmless from any claim for damages or liability by reason thereof. 
  
 Article 14. Protection from Liens and Damages 
  
 Lessee shall keep the leased premises and the whole and every part thereof
free and clear of liens for labor done or work performed upon the leased premises or materials furnished to it for the exploration, development or operation thereof under this lease while the same is in force and effect, and will save and keep
harmless Lessor from all costs, loss or damage which may arise by reason of injury to any persons employed by Lessee in or upon the leased premises or any part thereof or which may arise by reason of injury to any persons or damage to any property
as the result of any work or operations of the Lessee or of its possession and occupancy of the leased premises. A lien upon the property shall not constitute a default if the Lessee in good faith disputes the validity of the claim, in which event
the existence of the lien shall constitute a default only from and after the validity of the lien has been adjudicated. 
  
 Article 15. Force Majeure 
  
 If Lessee is unable to perform any of the terms or covenants of this lease by reason of damage or delay resulting from disaster, labor disturbances,
shortage of labor, strikes lockouts, act of God, or from any regulations or restrictions of any governmental agency, or on account of any eventuality beyond the reasonable control of Lessee, including state and federal environmental statute or
regulation, Lessee shall be excused from performance during the period of such prevention and the time for performance of such obligations shall be extended for a period equal to the period or periods of prevention. In the event Lessee or its
purchaser of concentrates or crude ore is, becomes or believes it is about to become subject, at any time, to environmental regulations (which shall include any governmental law, rule, order, regulation, policy, proposal or restriction relating to
environmental pollution) which will prohibit or materially affect any operation Lessee is carrying out, or planning to carry out hereunder. Lessee shall have the right to declare the existence of a condition of force majeure during the period in
which it is in good faith seeking a feasible method to comply with, be exempted from, modify, obtain necessary permits or licenses under, or prevent the enactment or promulgation of said environmental regulations. Lessee agrees to use reasonable
diligence to remove causes of force majeure as may occur from time to time, but shall not be required to settle strikes or other labor difficulties contrary to its own judgment. 
  

 6 

 Article 16. Default 
  
 The failure of Lessee to make or cause to be made any of the material payments herein provided for or to keep or-perform any
material agreement on its part to be kept or performed according to the terms and provisions of this lease, shall, at the election of the Lessor, work a forfeiture hereof; provided however, that in the event of a default on the part of the Lessee,
the Lessor shall give to the Lessee a written notice of its intention to declare a forfeiture of this lease and to terminate the same on account thereof, or of its intention to take other action to enforce this lease, specifying the particular
default or defaults relied upon by it, and Lessee shall have a reasonable time (which in any case shall not be less than sixty (60) days) after receipt of such notice in which to make good such default or defaults, in which event there shall be
no forfeiture therefore, and no other action may be taken for enforcement. If Lessee disagrees that such default occurred, it shall so advise Lessor in writing thirty (30) days after receipt of the notice of default. If, within
fifteen (15) days thereafter, the parties have not resolved the dispute by mutual agreement, the issue of default shall then be submitted to arbitration under Article 21 below. In the event that Lessor does terminate this lease on account
of a breach by Lessee, Lessee shall be under no further obligation or liability hereunder to Lessor from and after the date of such termination except for the performance of obligations and the satisfaction of liabilities to Lessor or third parties
or respecting the leased premises, which have accrued to the date of such termination. 
  
 Article 17. Cancellation 
  
 Notwithstanding any provision herein to the contrary, Lessee may at any time upon 30 days written notice, cancel and terminate this lease in its entirety. Upon total cancellation and termination of this lease, Lessee
shall be under no further obligation of whatsoever kind or nature to the Lessor except for the making of payments which have already accrued to the date of such cancellation and termination, ,including governmental rental fees for unpatented claims
and for the payment of Lessee’s proportion of the aforesaid property taxes accrued while this lease was in effect. If Lessee shall have included any part of the leased premises in a “producing group” for assessment purposes, and taxes
based on such assessment shall have been levied but shall not have been paid at the time of cancellation and termination Lessee shall pay such taxes before they are delinquent. Work requirements specified in Article 6 shall cease upon the date
such notice is given. 
  
 Article 18. Surrender of
Property 
  
 In the event of a valid forfeiture,
cancellation, or other termination of this lease, Lessee shall surrender to Lessor peaceable possession of the leased premises and at the written request of Lessor shall deliver to the Lessor a written relinquishment hereof, together with a copy, if
requested by Lessor within thirty (30) days after termination of this lease, of its engineering progress maps showing any workings made or uncovered by Lessee on the above-described leased premises. The Lessee’s factual exploration,
development and production data including drill core and assay results (but excluding interpretive information or data) from the leased premises shall be available upon request to the Lessor. 
  

 7 

 Article 19. Removal of Equipment 
  
 Lessee shall have and is hereby given and granted twelve (12) months
after a valid forfeiture, cancellation or other termination of this. lease to remove from said property all buildings, structures, warehouse stocks, merchandise, materials, tools, hoists, compressors, engines, motors, pumps, transformers, electrical
accessories, metal or wooden tanks, pipes and connections, rails, mine cars and any and all machinery, trade fixtures, and equipment erected or placed in or upon said property by it, provided that such right of removal shall not extend to,
foundations and mine timbers in place unless Lessor shall have given his previous written consent thereto. If Lessee is hampered by snowdrifts, washouts, inclement weather, or other climatic conditions, from completing the removal of said property
and equipment within the time specified, then Lessor agrees to extend the time by a reasonable period if requested by Lessee. 
  
 Article 20. Title and Patent 
  
 Lessor covenants that Lessor now holds title and possession of the leased premises free and clear from all former grants, sales, liens, or encumbrances of
any kind, and that there are no delinquent taxes and all government rental fees are current; that Lessor has no knowledge of any defects in title or adverse claims and agrees to furnish Lessee such abstracts, deeds, or other evidences of title as
may be in Lessor’s possession and control, and to allow and cooperate with Lessee, at Lessee’s option and initial expense, to have abstracts brought to date and to take such steps and proceedings to search and perfect title as Lessee shall
deem advisable. All reasonable expense so incurred by Lessee shall apply as a credit against royalties. Lessee shall have the right to seek to patent the leased premises or any portion thereof in the name of Lessor if it so elects, and the cost
thereof may be charged as operating costs hereunder. Lessor agrees to cooperate to a reasonable extent in any patent proceedings. It is agreed however, that Lessee shall take no action regarding patent which could reasonably be expected to result in
loss to Lessor of any or all of its unpatented claims. Lessee shall, before proceeding to patent proceedings, so advise Lessor of its intentions and allow Lessor reasonable time to comment before proceeding. In the event Lessee seeks to patent any
or all of Lessor’s claims and this effort is unsuccessful, Lessee will take whatever actions are necessary to protect the unpatented claim interest of the Lessor. 
  
 Article 21. Arbitration of Disputes 
  
 Any controversy, dispute or claim arising out of or from this lease, or alleged breach thereof, not settled voluntarily by
Lessor and Lessee shall be settled by arbitration pursuant to the Uniform Arbitration Act of the State of Idaho (§§7-901, et seq. Idaho Code) as amended and as in effect on the-date either party commences arbitration proceedings.
Said Act shall control the substantive and procedural aspects of the proceedings unless otherwise agreed in this lease. Judicial review may be had pursuant to said Act. 
  
 (a). Proceedings shall be initiated by the-complaining party serving upon the other party a complaint, as would be done in
court proceedings. The allegations regarding the circumstances giving rise to the issues to be arbitrated shall be stated in detail and with particularity. The party upon whom the complaint is served shall answer, or otherwise respond with a
pleading just as is required by the Idaho Rules of Civil Procedure for a court action. Except, however, the response shall be served upon the initiating party within 30 days from the date of service of the complaint. 
  

 8 

 (b). The parties shall agree upon an arbitrator, who shall be a retired State of Idaho District Court
judge (not a retired Magistrate) who is neutral, competent and willing to serve and, if possible, who has experience in cases involving mining and mining contracts. 
  
 Should the parties fail to reach agreement within 20 days from the date proceedings are initiated, either party may apply to
the court for appointment of an arbitrator who meets the criteria set forth herein pursuant to the provisions of Section 7-903 Idaho Code. 
  
 (c). Pre-hearing discovery shall not be allowed except upon order of the arbitrator for good cause shown, the parties being in agreement that the expense
and time associated with discovery should be minimized and that. this desire should, however, be balanced against the need for each party to be able to effectively present its case. 
  
 (d). Each party to the arbitration proceedings shall bear one-half of the arbitrator’s fees and expenses, which shall
be promptly paid by each party monthly within 15 days from the submission by the arbitrator to the parties of his reasonably detailed and itemized statement for services rendered, which statement shall be submitted by the arbitrator at the end
of each month. 
  
 (e). Each party shall bear its own
attorneys’ fees and costs of litigation for the proceedings before the arbitrator. This subparagraph (e) is not applicable to court proceedings, in which event the parties recognize that applicable law shall govern and the matter will be
decided by the court. 
  
 Article 22. Recordation of
Short Form Notice 
  
 Lessor agrees to execute, upon
request by Lessee a short form notice of this lease, which notice shall be for purposes of recordation in the real property records of Shoshone County, Idaho. 
  

Article 23. Notices 
  
 Any notices required or permitted to be given to the Lessor hereunder shall be considered as delivered forty-eight (48) hours after the same shall
have been deposited in the United States mail, duly registered, with postage thereon prepaid. All notices given hereunder shall be addressed to the respective addresses given below: 
  

			
	If to Lessor:	  	 Sterling Mining Company
 135 East Cameron

Kellogg, ID 83837

		
	If to Lessee:	  	 Silver Valley Resources Corporation
 P.O. Box
440
 Wallace, Idaho 83873

  

 9 

 Said addresses for receiving notices may be changed by either party upon two (2) days previous
notice to the other party. 
  
 Article 24.
Inurement 
  
 These presents shall inure to the
benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the parties hereto. 
  
 Article 25. Construction 
  
 Titles to the respective articles hereof shall not be deemed a part of this lease but shall be regarded as having been used for convenience only.

  
 IN WITNESS WHEREOF, the parties hereto have executed this
agreement as of the day and year first above written. 
  

							
	 	 	 	 	 LESSOR
  
 STERLING MINING COMPANY

				
	 	 	 	 	By:	 	  

	ATTEST	 	 	 	 
				
	By:	 	  

	 	 	 	 
	 	 	Secretary	 	 	 	 

  

					
	STATE OF IDAHO.	  	)	  	 
	 	  	ss.	  	 
	COUNTY OF Shoshone	  	)	  	 

  
 On this
     day of April, 1996, before me,                     , the undersigned, a Notary Public in and for the State of
Idaho, personally appeared,                      known to me to be the
                     of Sterling Mining company and whose names is/are subscribed to the within instrument, and acknowledged to me that they
executed the same on behalf of said corporation. 
  
 IN WITNESS
WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

			
	By:	 	  

	Notary Public for Idaho

					
	Residing at	 	  

					
	My commission expires	 	  

  

 10 

							
	 	 	 	 	LESSOR
			
	 	 	 	 	SILVER VALLEY RESOURCES CORPORATION
				
	 	 	 	 	By:	 	  

			
	ATTEST	 	 	 	 
				
	By:	 	  

	 	 	 	 
	 	 	Secretary	 	 	 	 

  

					
	STATE OF IDAHO.	 	)	  	 
	 	 	ss.	  	 
	COUNTY OF Shoshone	 	)	  	 

  
 On this
    day of April, 1996, before me,                     , the undersigned, a Notary Public in and for the State of
Idaho, personally appeared,                     known to me to be the
                    of Silver Valley Resources Corporation and whose names is/are subscribed to the within instrument, and acknowledged to me
that they executed the same on behalf of said corporation. 
  
 IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

			
	By:	 	  

	Notary Public for Idaho

			
	Residing at	 	  

			
	My commission expires	 	  

  

 11 

 EXHIBIT A 
  

DESCRIPTION OF STERLING PROPERTY 
  
 The 17 unpatented claims referenced in Article 1 of the STERLING MINING LEASE are described as follows: 
  
 HARVARD, the location of which is recorded in Lode Locations as Instrument
No. 366716 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 YALE, the location of which is recorded in Lode Locations as Instrument No. 366718 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 PRINCETON LODE, the location of which is recorded in Lode Locations as instrument No. 366719 in the Records of the
County Recorder of Shoshone County, Idaho; 
  
 STANFORD, the
location of which is recorded in Lode Locations as Instrument No. 366709 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 COLUMBIA, the location of which-is recorded in Lode Locations as Instrument No. 366708 in the Records of the County Recorder of Shoshone County,
Idaho; 
  
 CONSTITUTION, the location of which is recorded in Lode
Locations as Instrument No. 366707 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 BOSTON LODE, the location of which is recorded in Lode Locations as Instrument No. 366705 in the Records of the County Recorder of Shoshone County,
Idaho; 
  
 BALTIMORE, the location of which is recorded in Lode
Locations as Instrument No. 366713 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 PROVIDENCE, the location of which is recorded in Lode Locations as Instrument No. 366712 in the Records of the’ County Recorder of Shoshone
County, Idaho; 
  
 LINK,. the location of which is recorded in
Lode Locations as Instrument No. 366710 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 STERLING LODE, the location of which is recorded in Lode Locations as Instrument No. 366711 in the Records of the County Recorder of Shoshone County,
Idaho; 
  
 WINNEFRED, the location of which is recorded in Lode
Locations as Instrument No. 366714 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 SANDRA, the location of which is recorded in Lode Locations as Instrument No. 366721 in the Records of the County Recorder of Shoshone County, Idaho;

  
 YALE FRACTION, the location of which is recorded in Lode
Locations as Instrument No. 366717 in the Records of the County Recorder of Shoshone County, Idaho; 
  

 12 

 EXHIBIT A, CONTINUED 
  
 BOSTON FRACTION, the location of which is recorded in Lode Locations as Instrument No. 366706 in the Records of the
County Recorder of Shoshone County;’ Idaho; 
  
 PRINCETON
FRACTION; the location of which is recorded in Lode Locations as Instrument No. 366720 in the Records of the County Recorder of Shoshone County, Idaho; 
  
 WINNEFRED FRACTION, the location of which is recorded in Lode Locations as Instrument No. 366715 in the Records of the County Recorder of Shoshone
County, Idaho. 
  

 13 

 EXHIBIT B 
  

TO AGREEMENT BETWEEN SILVER VALLEY RESOURCES CORPORATION AND 
 STERLING MINING COMPANY 
  
 NET PROFITS 
  
 After commencement of production
and after recovery of all operating, exploration and development expenditures incurred by Lessee following the effective date of this lease including costs incurred during non-production periods, Net Profits derived from the leased premises which
are the subject of the above entitled Agreement shall be determined Quarterly on the basis as- set forth below from accounting records which are maintained in accordance with the accrual basis method of accounting using U.S. generally accepted
accounting principles. 
  
 As used herein, the following terms
shall have the meanings hereafter assigned: 
  
 (i) “Gross
Sales” in any Quarter means the amount of earned revenues payable to the LESSEE by any smelter, refiner or other purchaser of any metallic and non-metallic minerals (excluding any oil, gas, casinghead gas or associated hydrocarbon substances)
and shall include, ores, concentrates and solutions containing such minerals and all forms in which such minerals may be found, extracted and produced as well as any by-products thereof having commercial value (hereinafter referred to as
“valuable Minerals”). All base treatment charges, penalties, assaying, and sampling charges, to the extent that they were actually incurred and were not deducted by the purchaser shall be deducted from earned revenues; provided, however,
that any sale of Valuable Minerals or any other. non-arm’s length basis shall not, without the prior written consent of the LESSOR, be on a basis less favorable to the LESSOR than the metallurgical facility is then offering to other shippers of
concentrates and smelting ores on purchases of like quantities and qualities. Added to Earned Revenues shall be the amount of deemed Earned Revenues payable duplication, the number of ounces or pounds of Valuable Minerals delivered to or to the
order of the LESSEE, purchased or out the LESSEE calculated by determining, without turned to the LESSEE’s pool account or accounts by any mint or refinery and multiplying such’ number of ounces or pounds by their value, less the
deductions specified above, as appropriate. Value of Valuable Minerals delivered to, or to the order of, the LESSEE, purchased or out-turned to the LESSEE’s pool account or accounts by any mint or refinery shall be established on the third
business day following such delivery, purchase or out-turning. Value for gold shall be established by reference to the London PM gold fixing of the London Bullion Market Association and value for silver by reference to the Handy and Harman noon
silver fixing, New York City, New York. Value for all other Valuable Minerals shall be established by. reference to the London Metals Exchange cash price as quoted in Metals Week for the edition dated most closely to the date on which value is to be
established. 
  
 There shall also be added to and included in
“Gross Sales” any revenues from the sale of timber from the leased premises or of capital assets and machinery and equipment (minus any unamortized cost) which has been deducted or recovered by the LESSEE hereunder and any proceeds of
insurance where the premium has been deducted by the LESSEE hereunder. 
  

 14 

 (ii) “Operating Costs” means the sum of the following costs and expenses incurred by the LESSEE
in any Quarter: 
  
 (a) “Mining Costs” which shall mean
costs and the expenses incurred by the LESSEE after Commencement of Commercial Production (Commencement of Commercial Production means the date the obligation to pay a royalty commences in accordance with Article 7 (a) of the Lease) in
exploring for, mining, extracting, removing and transporting to the Mill (as hereinafter defined) Valuable Minerals produced from the leased premises. Such costs and expenses shall include, without limitation, those incurred for labor, machinery
operation, fuel, explosives and other materials, exploration drilling, developmental or ore delineation drilling, allowance for depreciation and amortization of mining equipment and machinery, reclamation and remediation. 
  
 (b) “Milling and Processing Costs” which shall mean costs and
expenses incurred by the LESSEE after Commencement of Commercial Production in milling or processing Valuable Minerals produced from the leased premises at the LESSEE-Is mill or central processing facility utilized by the LESSEE to process Valuable
Minerals produced from the leased premises (hereinafter referred to as the “Mill”), if any. 
  
 (c) “General and Administrative Costs’ which shall mean costs and expenses after Commencement of Commercial Production properly allocable to the
administration of the Leased premises including any non-government royalty payments (excluding, however, these Net Profits payments) and the production of Valuable Minerals therefrom, including costs and expenses incurred by the LESSEE after
Commencement of Commercial Production in or in connection with the marketing, selling and collection of the proceeds of any sale of Valuable Minerals from the leased premises and the delivery of such Valuable Minerals to points of ultimate delivery
to customers. 
  
 (d) “Taxes” which shall mean all taxes
levied against the LESSEE’s operations of the leased premises (excluding any U.S. or State income taxes) and including government royalties and mining, property, and severance taxes. 
  
 (e) An allowance for depreciation and amortization of mining, processing and other capital equipment and machinery.

  
 (f) An allowance for future costs in accordance with GAAP
anticipated to be incurred by LESSEE in reclaiming or remediating the leased premises in accordance with applicable laws and regulations. 
  
 (g) Where any Operating Costs are incurred with respect to the mining, milling, processing, selling or delivering of Valuable Minerals produced from the
leased premises in conjunction with the mining, milling, processing, selling or delivering of minerals produced from other leased premises controlled by the LESSEE which is not subject to this Agreement, such, Operating Costs shall be allocated and
apportioned in accordance with generally accepted accounting principles. 
  
 (h) Mining costs shall not include the Net Profits Royalties paid by LESSEE to LESSOR. 
  

 15 

 (iii) “Exploration and Development Expenditures” shall mean the LESSEE’s total costs and
expenses incurred with respect to any additional examining, exploring and developing of the leased premises and all matters connected therewith incurred after Commencement limitation, costs and expenses relating to geological, geochemical and
geophysical studies, feasibility studies, exploration. and developmental drilling, sampling and assaying, mine design and development, the cost of any mining equipment or machinery purchased after Commencement of Commercial Production for use in or
in conjunction with the leased premises, compliance with environmental and regulatory requirements (including attorney’s fees), and any other costs or expenses which would be included in the definition of Mining Costs and/or Milling and
Processing Costs if such cost or expenses were incurred after Commencement of Commercial Production. Exploration and Development Expenses also shall mean all costs and expenses incurred with respect to mill construction or related facilities and any
additions thereto regardless of when incurred. 
  
 (iv) “Net
Exploration and Development Expenditures” shall mean the Exploration and Development Expenditures less that portion of the amount thereof contributed by a joint venture partner, if any. 
  
 (v) “Commencement of Commercial Production” means the period.
during which the obligation to pay a Net Profits Royalty commences in accordance with Article 7(a) of the Lease. 
  
 (vi) “Gross Profits” in any Quarter means Gross Sales accrued in that Quarter less Operating Costs accrued in that Quarter. 
  
 (vii) “Gross Loss” in any Quarter means the excess of Operating
Costs accrued in that Quarter over Gross Sales accrued in that Quarter. 
  
 (viii) “Net Profits” in any Quarter means Gross Profits in that Quarter less the following amounts which shall be recovered from Gross Profits in the order and in the manner set forth below: 
  
 (a) the aggregate amount, if any, of the Gross Loss or Losses for any prior
Quarter or Quarters which shall not have been deducted and recovered from Gross Profits in prior Quarters; and 
  
 (b) the aggregate amount, if any, of Net Exploration and Development Expenditures which shall not have been deducted and recovered from Gross Profits in
prior Quarters. 
  
 (ix) “Quarter” or
“Quarters” means calendar quarters. 
  
 OTHER
PROVISIONS 
  
 LESSEE shall pay the Net Profits Royalty for
each Quarter by making a payment by the 30th day of the following Quarter. Payments shall be based on financial data maintained in accordance with GAAP. All statements rendered and amounts paid by LESSEE for any, Quarter shall conclusively be
presumed to be correct and accepted by LESSOR as rendered, unless within 12 months following delivery of the Quarterly statement, LESSOR shall have invoked the verification provisions below, by giving written notice thereof to LESSEE. 
  

 16 

 In the event of LESSOR’s timely objection to the statement and computation described above,
LESSOR’s certified public accountant qualified and competent in the mining business shall have the right to audit LESSEES pertinent books during normal business hours for the purpose of determining the accuracy of the said statement and
computation; provided, however, that reasonable advance notice of exercise of such right shall be given by LESSOR and the costs of such audit shall be for the sole account of LESSOR. 
  
 The LESSOR acknowledges that the LESSEE may, from time to time, participate in hedging and/or metal futures markets and,
further, the LESSOR agrees that all such activity shall be for the sole account of the LESSEE and the LESSOR shall not share in any of the benefits or the risks associated with such activity. 
  

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]