Document:

.

After Recording, Return To:

Crown Mines, L.L.C.

P. O. Box 743547

Dallas, Texas  75374-3547

ASSIGNMENT OF CONTRACTUAL WATER RIGHT

This Assignment of Contractual Water Right (this “Assignment”) is entered into between CROWN MINES, L.L.C., a Texas limited liability company, with an address of P. O. Box 743547, Dallas, Texas 75374-3547 (“Crown Mines”), and DEER TRAIL MINING COMPANY, L.L.C., a Nevada limited liability company, with an address of 8880 Rio San Diego Drive, 8th Floor, San Diego, California 92108 (“DTMC”), this 30th day of July, 2007 (“Effective Date”).  Crown Mines and DTMC may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

A.

Crown Mines owns a contractual right to use water diverted under Water Right No. 63-3043 as evidenced and described in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977 (the “Contractual Right”), a copy of which is attached to this Agreement as Exhibit A.

B.

Concurrently with the Effective Date, Crown Mines conveyed to DTMC certain patented and unpatented mining claims and mill sites and dumps situated in Piute County, State of Utah, described in the attached Exhibit B (the “Claims”).

C.

DTMC desires to use the Contractual Water Right in its operation of the Claims.

D.

Crown Mines is willing to assign to DTMC one-half of its interest in the Contractual Water Right and concurrently with the Effective Date, Crown Mines has leased the remaining one-half of its interest in the Contractual Water Right to DTMC through that certain Water Rights Lease and Water Pipeline Easement Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of their mutual covenants and promises described herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

1.

Recordation of Agreement.  This Agreement may be recorded by a Party with any governmental agency, including in the offices of the County Recorder of Piute County, Utah, and Sevier County, Utah

1

2.

Lease of Water Right and Pipeline.  Crown Mines hereby assigns one-half of its interest in the Contractual Water Right to DTMC for purposes consistent with the approved uses of the Water Right and subject to the limitations set forth in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977, Exhibit A hereto.

3.

Acceptance of Assignment, Representation and Warranty of Compliance, and Agreement to Indemnify.  DTMC hereby accepts the assignment by Crown Mines of one-half of Crown Mine’s interest in the Contractual Water Right, and DTMC represents and warrants that it shall at all times comply with the covenants and restrictions set forth in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977, Exhibit A hereto, as if it were a party thereto and that it shall indemnify Crown Mines, its officers, directors, employees, agents and assigns, for any breach by DTMC, or its officers, directors, employees, agents and assigns of such covenants or restrictions.

4.

Filing of Change Applications Restricted.  DTMC shall not file any permanent or temporary change applications on the Contractual Water Right without the express prior written consent of Crown Mines, which consent may be withheld by Crown Mines if Crown Mines, in its sole but reasonable discretion, determines that such change application could jeopardize the Contractual Water Right or the underlying Water Right No. 63-3043 .

5.

Notices.  All notices, payments and other required communications (“Notices”) to the Parties shall be in writing, and shall be addressed as follows:

If to Crown Mines:

Crown Mines, L.L.C.

P. O. Box 743547

Dallas, Texas  75374-3547

With a Copy to:

Michael R. Haggerty

Jackson Walker L.L.P.

901 Main Street, Suite 6000

Dallas, Texas  75202

If to DTMC:

Deer Trail Mining Company, L.L.C.

8880 Rio San Diego Drive, 8th Floor

San Diego, California  92108

With a Copy to:

Robert N. Wilkinson, Esq.

60 East South Temple, Suite 1200

Salt Lake City, Utah  84111

All Notices shall be given by personal delivery, by electronic communication or facsimile, with a confirmation sent by registered or certified mail return receipt requested, or by commercial courier service.  All Notices shall be effective and shall be deemed delivered on the date of delivery if delivered during normal business hours, and if not delivered during normal business hours, on the next business day following delivery.  A Party may change its address by Notice to the other Party.

2

6.

Authority.  Crown Mines and DTMC represents and warrants to the other that its undersigned officer has been duly authorized and has the power and authority to execute this Agreement on its behalf.

7.

Successors and Assigns.  This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the Parties, their successors and assigns.

IN WITNESS WHEREOF, the parties have caused this Agreement to be properly executed by persons thereunto duly authorized for the purposes therein stated.

EXECUTED as of the date first above written.

DEER TRAIL MINING COMPANY, L.L.C.,

CROWN MINES, L.L.C.,

a Nevada limited liability company

a Texas limited liability company

By:  _/s/ Mark A. Lopez___________

By:  _/s/ I.N. Fehr_______________

Its:  _Manager___________________

Its:  _________________________

3

STATE OF CALIFORNIA

)

: ss.

COUNTY OF

SAN DIEGO

)

The foregoing instrument was acknowledged before me this 31 day of July, 2007, by Mark A. Lopez, Manager of DEER TRAIL MINING COMPANY, L.L.C., a Nevada limited liability company.

[NOTARY SEAL]

_/s/ Vivian T. Harris___________

Notary Public

STATE OF TEXAS

)

: ss.

COUNTY OF

DALLAS

)

The foregoing instrument was acknowledged before me this 30th day of July, 2007, by I.N. Fehr, the President of CROWN MINES, L.L.C., a Texas limited liability company.

[NOTARY SEAL]

_/s/ Lorlee C. Bartos____________

Notary Public

4

EXHIBIT A

To Assignment of Contractual Water Right

Agreement between Cottonwood Irrigation Company and 

Deer Trail Development Corporation, dated July 28, 1977

5

6

7

8

9

10

EXHIBIT B

TO ASSIGNMENT OF CONTRACTUAL WATER RIGHT

PART 1

Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.

Patented Claims Located in Piute County, Utah

			
	CLAIM NAME

	 
	MINERAL SURVEY NUMBER

	CLIFF

	 
	MS 41

	DEER TRAIL

	 
	MS 42 A

	DEER TRAIL

	#01

	MS 6365 A

	DEER TRAIL

	#01 MILLSITE

	MS 6385 B

	DEER TRAIL

	#02

	MS 6365 A

	DEER TRAIL

	#02 MILLSITE

	MS 6365 B

	DEER TRAIL

	#03

	MS 6365 A

	DEER TRAIL

	#03 MILLSITE

	MS 6365 B

	DEER TRAIL

	#04

	MS 6396

	DEER TRAIL

	#05

	MS 6403 A

	DEER TRAIL

	#05 MILLSITE

	MS 6403 B

	DEER TRAIL

	#07

	MS 6403 A

	DEER TRAIL

	#08

	MS 6736

	DEER TRAIL

	#09

	MS 6736

	DEER TRAIL

	#10

	MS 6736

	DEER TRAIL

	#20

	MS 6736

	DEER TRAIL

	#30

	MS 6717

	DEER TRAIL

	#33

	MS 6717

	DEER TRAIL

	#34

	MS 6717

	DEER TRAIL

	#35

	MS 6717

	DEER TRAIL

	#36

	MS 6717

	DEER TRAIL

	#37

	MS 6717

	DEER TRAIL

	#38

	MS 6736

	DEER TRAIL FRAC.

	 
	MS 6717

	DEER TRAIL MILLSITE

	 
	MS 42 B

	DEWITT & FERGUSON

	 
	MS 52 A

	*DEWITT & FERSUSON MILLSITE

	MS 52 B

	GREEN EYED MONSTER

	 
	MS 43 A

	MONSTER APEX

	 
	MS 5972

	MONSTER APEX #2

	 
	MS 5972

	PLUTO

	 
	MS 46

	SPHINX

	 
	MS 6397

TOTAL CLAIMS    32

*DEWITT & FERGUSON MILLSITE MINERAL RIGHTS ONLY

11

EXHIBIT B

To Water Rights Lease and Water Pipeline Easement Agreement

PART II

Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.

Unpatented Claims Located in Piute County, Utah

					
	CLAIM NAME

	RECORDED BOOK

	RECORDED PAGE 

	AMENDED BOOK PAGE

	BLM SERIAL NUMBER

	APEX LODE

	D

	452

	 
	95579

	ATHENIA

	D

	423

	 
	95580

	BUSTER

	G

	459

	 
	95585

	BUSTER NO.1

	G

	460

	 
	95586

	BUSTER NO.2

	G

	461

	 
	95587

	BUSTER NO.3

	G

	461

	 
	95588

	BUSTER NO.4

	M

	129

	 
	95589

	BUSTER NO.5

	M

	130

	 
	95590

	BUSTER NO.6

	M

	131

	 
	95591

	BUSTER NO.7

	M

	131

	 
	95592

	BUSTER NO.8

	M

	132

	 
	95593

	BUSTER NO.9

	M

	133

	 
	95594

	CALEDONIA LODE

	D

	588

	 
	95596

	CINNABAR LODE

	D

	584

	 
	95599

	CLIFF NO. 1

	D

	371

	 
	95600

	CLIFF NO. 2

	D

	372

	 
	95601

	CLIFF NO. 3

	D

	372

	 
	95602

	CLIFF NO. 4

	D

	373

	 
	95603

	CLIFF NO. 5

	D

	373

	 
	95604

	CLIFF NO. 6

	D

	373

	 
	95605

	CLIFF NO. 7

	D

	374

	 
	95606

	CLIFF NO. 8

	D

	374

	 
	95607

	COLUMBINE LODE

	D

	586

	 
	95608

	CREST LODE

	D

	452

	 
	95610

	DEER TRAIL EXT.

	C

	250

	 
	95666

	DEER TRAIL EXT. NO. 01

	C

	250

	 
	95667

	DEER TRAIL EXT. NO. 02

	C

	250

	 
	95668

	DEER TRAIL EXT. NO. 03

	C

	251

	 
	95669

	DEER TRAIL EXT. NO. 04

	C

	251

	 
	95670

	DEER TRAIL EXT. NO. 05

	C

	252

	 
	95671

	DEER TRAIL EXT. NO. 06

	C

	252

	 
	95672

	DEER TRAIL EXT. NO. 07

	C

	253

	 
	95673

	DEER TRAIL EXT. NO. 08

	C

	253

	 
	95674

12

					
	DEER TRAIL EXT. NO. 09

	C

	253

	 
	95675

	DEER TRAIL EXT. NO. 10

	C

	254

	 
	95676

	DEER TRAIL EXT. NO. 11

	C

	254

	 
	95677

	DEER TRAIL EXT. NO. 12

	ll

	710

	JJ               65

	353982

	DEER TRAIL EXT. NO. 13

	ll

	711

	 
	353983

	DEER TRAIL EXT. NO. 14

	ll

	772

	 
	353984

	DEER TRAIL EXT. NO. 15

	ll

	713

	 
	353985

	DEER TRAIL EXT. NO. 24

	ll

	722

	 
	353994

	DEER TRAIL EXT. NO. 25

	ll

	723

	 
	353995

	DEER TRAIL EXT. NO. 26

	ll

	724

	 
	353996

	DEER TRAIL EXT. NO. 27

	ll

	725

	 
	353997

	DEER TRAIL EXT. NO. 28

	ll

	726

	 
	353998

	DEER TRAIL EXT. NO. 29

	ll

	727

	 
	353999

	DEER TRAIL EXT. NO. 30

	ll

	728

	 
	354000

	DEER TRAIL EXT. NO. 31

	ll

	729

	 
	354001

	DEER TRAIL EXT. NO. 32

	ll

	730

	 
	354002

	DEER TRAIL EXT. NO. 33

	ll

	731

	 
	354003

	DEER TRAIL EXT. NO. 34

	ll

	732

	 
	354004

	DEER TRAIL EXT. NO. 35

	ll

	733

	 
	354005

	DEER TRAIL EXT. NO. 36

	ll

	734

	 
	354006

	DEER TRAIL EXT. NO. 37

	ll

	735

	 
	354007

	DEER TRAIL EXT. NO. 38

	ll

	736

	 
	354008

	DEER TRAIL EXT. NO. 39

	ll

	737

	 
	354009

	DEER TRAIL EXT. NO. 40

	ll

	738

	 
	354010

	DEER TRAIL EXT. NO. 41

	ll

	739

	 
	354011

	DEER TRAIL EXT. NO. 42

	ll

	740

	 
	354012

	DEER TRAIL EXT. NO. 43

	ll

	741

	 
	354013

	DEER TRAIL EXT. NO. 44

	ll

	742

	 
	354014

	DEER TRAIL EXT. NO. 45

	ll

	743

	 
	354015

	DEER TRAIL EXT. NO. 46

	ll

	744

	 
	354016

	DEER TRAIL EXT. NO. 47

	ll

	745

	 
	354017

	DEER TRAIL EXT. NO. 48

	ll

	746

	 
	354018

	DEER TRAIL EXT. NO. 49

	ll

	747

	 
	354019

	DEER TRAIL EXT. NO. 50

	ll

	748

	 
	354020

	DEER TRAIL EXT. NO. 51

	ll

	749

	 
	354021

	DEER TRAIL EXT. NO. 52

	ll

	750

	 
	354022

	DEER TRAIL NO. 11

	A

	135

	 
	95612

	DEER TRAIL NO. 12

	A

	142

	 
	95613

	DEER TRAIL NO. 13

	A

	142

	 
	95614

	DEER TRAIL NO. 14

	A

	143

	 
	95615

	DEER TRAIL NO. 15

	A

	143

	 
	95616

	DEER TRAIL NO. 16

	A

	144

	 
	95617

13

					
	DEER TRAIL NO. 17

	A

	144

	 
	95618

	DEER TRAIL NO. 18

	A

	145

	 
	95619

	DEER TRAIL NO. 19

	A

	145

	 
	95620

	DEER TRAIL NO. 21

	24

	114

	 
	95621

	DEER TRAIL NO. 22

	24

	114

	 
	95622

	DEER TRAIL NO. 23

	24

	115

	 
	95623

	DEER TRAIL NO. 24

	24

	116

	 
	95624

	DEER TRAIL NO. 25

	24

	117

	 
	95625

	DEER TRAIL NO. 26

	24

	117

	 
	95626

	DEER TRAIL NO. 27

	24

	118

	 
	95627

	DEER TRAIL NO. 28

	24

	119

	 
	95628

	DEER TRAIL NO. 29

	24

	120

	 
	95629

	DEER TRAIL NO. 31

	1

	599

	 
	95630

	DEER TRAIL NO. 32

	24

	122

	 
	95631

	DEER TRAIL NO. 39

	B

	99

	 
	95632

	DEER TRAIL NO. 40

	B

	100

	 
	95633

	DEER TRAIL NO. 41

	B

	100

	 
	95634

	DEER TRAIL NO. 42

	B

	101

	 
	95635

	DEER TRAIL NO. 43

	B

	245

	 
	95636

	DEER TRAIL NO. 44

	B

	246

	 
	95637

	DEER TRAIL NO. 45

	B

	247

	 
	95638

	DEER TRAIL NO. 46

	B

	245

	 
	95639

	DEER TRAIL NO. 47

	B

	246

	 
	95640

	DEER TRAIL NO. 48

	B

	270

	 
	95641

	DEER TRAIL NO. 49

	B

	322

	 
	95642

	DEER TRAIL NO. 50

	B

	322

	 
	95643

	DEER TRAIL NO. 51

	B

	323

	 
	95644

	DEER TRAIL NO. 52

	B

	323

	 
	95645

	DEER TRAIL NO. 53

	B

	324

	 
	95646

	DEER TRAIL NO. 54

	B

	324

	 
	95647

	DEER TRAIL NO. 55

	G

	227

	 
	95648

	DEER TRAIL NO. 56

	G

	227

	 
	95649

	DEER TRAIL NO. 57

	G

	228

	 
	95650

	DEER TRAIL NO. 58

	G

	229

	 
	95651

	DEER TRAIL NO. 59

	G

	229

	 
	95652

	DEER TRAIL NO. 60

	G

	230

	 
	95653

	DEER TRAIL NO. 61

	G

	231

	 
	95654

	DEER TRAIL NO. 62

	G

	231

	 
	95655

	DEER TRAIL NO. 63

	G

	232

	 
	95656

	DEER TRAIL NO. 64

	G

	233

	 
	95657

	DEER TRAIL NO. 65

	G

	233

	 
	95658

	DEER TRAIL NO. 66

	G

	234

	 
	95659

14

					
	DEER TRAIL NO. 67

	G

	234

	 
	95660

	DEER TRAIL NO. 68

	G

	235

	 
	95661

	DEER TRAIL NO. 69

	G

	235

	 
	95662

	DEER TRAIL NO. 70

	G

	236

	 
	95663

	DEER TRAIL NO. 71

	G

	237

	 
	95664

	DEER TRAIL NO. 72

	G

	447

	 
	95665

	FALCON LODE

	D

	584

	 
	95681

	FIRE FLY LODE

	D

	584

	 
	95682

	GOLDEN EAGLE LODE

	D

	583

	 
	95693

	GORGE LODE

	D

	453

	 
	95697

	GRAND VIEW LODE

	D

	423

	 
	95698

	HIDDEN TREASURE AMENDED

	D

	589

	 
	95701

	JONQUIL LODE

	D

	587

	 
	95705

	KIESTER

	D

	586

	 
	95706

	LA CIGALE

	D

	587

	 
	95707

	LINDA PLACER

	N

	125

	 
	95709

	LOWER CONTACT

	D

	450

	 
	95714

	MONSTER #3

	B

	123

	 
	95719

	MONSTER #4

	B

	123

	 
	95720

	MONSTER #5

	B

	124

	 
	95721

	MONSTER #6

	B

	124

	 
	95722

	MONSTER #7

	B

	125

	 
	95723

	MONSTER #8

	B

	125

	 
	95724

	MONSTER #9

	B

	126

	 
	95725

	MOUNTAIN CHIEF AMENDED

	D

	589

	 
	95726

	MOUNTAIN CHIEF NO. 1

	M

	128

	 
	95727

	MOUNTAIN CHIEF NO. 2

	M

	129

	 
	95728

	OLD CHANNEL LODE

	D

	464

	 
	95747

	OLD CHANNEL LODE NO. 1

	M

	81

	 
	95748

	PORCUPINE LODE

	D

	588

	 
	95742

	PORTAL LODE

	D

	453

	 
	95749

	PORTAL NO. 1

	M

	82

	 
	95750

	PORTAL NO. 2

	M

	83

	 
	95751

	PYRITE LODE

	D

	585

	 
	95729

	RED KNOLL LODE

	D

	453

	 
	95731

	SANTA MARIA

	D

	464

	 
	95735

	SILVER WEDGE

	D

	422

	 
	95737

	SLOPE NO. 1

	D

	450

	 
	95752

	SLOPE NO. 2

	D

	451

	 
	95753

	SLOPE NO. 3

	D

	451

	 
	95754

15

					
	SLOPE NO. 4

	M

	83

	 
	95755

	SLOPE NO. 5

	M

	127

	 
	95756

	SLOPE NO. 6

	M

	127

	 
	95757

	SNOW SHOE LODE

	D

	583

	 
	95760

	SYLVIA PLACER

	N

	126

	 
	95763

	TAMARAC LODE

	D

	585

	 
	95764

	THE REEF LODE

	D

	588

	 
	95732

	TOMAHAWK LODE

	D

	583

	 
	95767

	TOPAZ LODE

	D

	587

	 
	95768

	VICTORY LODE

	D

	586

	 
	95771

	WHITE FLINT LODE

	D

	423

	 
	95776

	WILD CAT LODE

	D

	585

	 
	95758

	WOODLAND LODE

	D

	451

	 
	95759

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	TOTAL CLAIMS

	170

	 
	 
	 

16Converted by EDGARwiz

After Recording, Return To:

Crown Mines, L.L.C.

P. O. Box 743547

Dallas, Texas  75374-3547

WATER RIGHTS LEASE AND 

WATER PIPELINE EASEMENT AGREEMENT

This Water Right Lease and Water Pipeline Easement Agreement (“Agreement”) is entered into between CROWN MINES, L.L.C., a Texas limited liability company, with an address of P. O. Box 743547, Dallas, Texas  75374-3547 (“Crown Mines”), and DEER TRAIL MINING COMPANY,

L.L.C.

, a Nevada limited liability company, with an address of 8880 Rio San Diego Drive, 8th Floor, San Diego, California 92108 (“DTMC”) this 30th  day of July, 2007 (“Effective Date”).  Crown Mines and DTMC may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

A.

Crown Mines has been the owner of Water Right No. 63-37, being more particularly described as having a maximum flow of 0.25 cubic feet per second and a maximum annual diversion of 180.995 acre feet of water from Three Mile Spring for year-round mining purposes at the Deer Trail Mine and Mill Site situated in Piute County, State of Utah (the “Spring Right”).

B.

Water from the Spring Right is conveyed via a pipeline approximately 7,510 feet long located on an associated right-of-way extending from Three Mile Spring to the Deer Trail Mine and Mill Site (“Three Mile Spring Pipeline”).

C.

Concurrently with the Effective Date, Crown Mines has conveyed a fifty percent portion of the Spring Right to DTMC, said portion being more particularly described as having a maximum flow of 0.125 cubic feet per second and a maximum annual diversion of 90.5 acre feet of water from Three Mile Spring for year-round mining purposes.

D.

Concurrently with the Effective Date, Crown Mines has retained a fifty percent portion of the Spring Right, said portion being more particularly described as having a maximum flow of 0.125 cubic feet per second and a maximum annual diversion of 90.5 acre feet of water from Three Mile Spring for year-round mining purposes (the “Retained Right”).

E.

Crown Mines also owns a contractual right to use water diverted under Water Right No. 63-3043 as evidenced and described in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977 (the “Contractual Right”), a copy of which is attached to this Agreement as Exhibit A.

F.

Concurrently with the Effective Date, crown Mines has assigned a fifty percent portion of its Contractual Right to DTMC.

1

G.

Concurrently with the Effective Date, Crown Mines has retained a fifty percent portion of the Contractual Right (the “Retained Contractual Right”).  The Retained Right and the Retained Contractual Right are referred to collective herein as the “Water Rights.”

H.

Concurrently with the Effective Date, Crown Mines conveyed to DTMC certain patented and unpatented mining claims and mill sites and dumps situated in Piute County, State of Utah, described in the attached Exhibit B (the “Claims”).

I.

DTMC desires to use the Water Rights

and Three Mile Spring Pipeline

in its operation of the Claims through a lease of the Water Rights

 and Three Mile Spring Pipeline

 from Crown Mines.

J.

Crown Mines desires to acquire a perpetual non-exclusive Pipeline Easement over and across the Claims for construction of a future pipeline for the transportation of water.

AGREEMENT

NOW, THEREFORE, in consideration of their mutual covenants and promises described herein, including, but not limited to, the perpetual non-exclusive Pipeline Easement described herein, the Parties agree as follows:

1.

Recordation of Agreement.  This Agreement may be recorded by a Party with any governmental agency, including in the offices of the County Recorder of Piute County, Utah, and Sevier County, Utah.

2.

Lease of Water Right

 and Pipeline

..  Crown Mines hereby leases the Water Rights

and the use of the Three Mile Spring Pipeline

to DTMC for purposes consistent with

the

 approved uses

 of the Water Rights

 (the “Lease”).

3.

Term.  The term of the Lease is five (5) years from the Effective Date, unless earlier terminated or extended as provided herein.  

4.

Extension of Lease.  DTMC may provide written notice to Crown Mines of its desire to extend the term of the Lease for successive periods of up to five (5) years each.  DTMC shall provide notice to Crown Mines of its desire to extend the term of the Lease at least 6 months prior to the end of the term or any extension thereof.  Crown Mines shall extend the term of the Lease as requested by DTMC, provided that: (i) Crown Mines

has

 determined, in its sole and absolute discretion but exercising reasonable commercial judgment, that the Water Rights are not required for operation and development of any of its mining claims or for other uses which may by law be permitted during the period of extension requested by DTMC; and (ii) the Parties have negotiated additional terms, including a price for the lease of the Water Rights, as Crown Mines may have determined to be appropriate, in its sole and absolute discretion but exercising reasonable commercial judgment, for the period of extension requested by DTMC.  In the event that Crown Mines determines that the Water Rights are necessary for operation and development of its mining claims or for other uses which may by law be permitted, Crown Mines shall so 

2

notify DTMC in writing no later than 4 months prior to the end of the term or any extension thereof.

5.

Rent.  The Water Rights shall be leased to DTMC at no cost during the initial term of the Lease.  The Parties shall negotiate in good faith the rental for the Water Rights for each period during which the Lease is proposed to be extended.

6.

Duty to Use Water.  DTMC shall divert and fully use the water available under the Water Rights consistent with their approved uses.  Within 120 days of the Effective Date, DTMC shall submit a water use plan to Crown Mines, including, but not limited to, a description of the diversion and conveyance facilities, the amount of water that it reasonably expects to use, the timing of the proposed use, and a description of the operations that will use the water in its mining and development of the Claims.

7.

Diversion and Use Records.  DTMC shall measure its water diversions and keep records of all water diverted, used, and returned under the Water Rights.  The water diversion and use records maintained by DTMC shall be considered confidential and shall not be disclosed to anyone but Crown Mines without Crown Mines’ express written permission.  On each anniversary of the Effective Date, DTMC shall provide a report of its diversion and use of water under the Water Rights to Crown Mines.

8.

Filing of Change Applications Restricted.  DTMC shall not file any permanent or temporary change applications on the Water Rights without the express prior written permission of Crown Mines.

9.

Termination of Lease.  Crown Mines may terminate the Lease upon 12 months’ written notice to DTMC if Crown Mines determines, in its sole and absolute discretion but exercising reasonable commercial judgment, that the use of the Water Rights are necessary for the mining and development of its claims or for other uses which may by law be permitted.  Termination of the Lease shall have no effect on the perpetual pipeline easement granted by DTMC to Crown Mines herein, which is expressly intended to survive termination of the Lease.

10.

Pipeline Easement.  DTMC hereby grants to Crown Mines a perpetual, non-exclusive easement (“Pipeline Easement”) over and across the Claims at any reasonable point to locate, survey a route, construct, entrench, maintain, protect, inspect and operate a surface or an underground pipeline for the transportation of water, together with necessary valves and other appurtenances.  The easement hereby granted is a burden on the Claims for the benefit of Crown Mines, which burden shall run with the Claims and shall be binding upon successor owners of the Claims or any portion thereof and constitute an easement in gross in favor of Crown Mines and its successors and assigns.  The Pipeline Easement shall be 20 feet in width being 10 feet on each side of the centerline of the pipeline.  The use of the Pipeline Easement shall not unreasonably interfere with DTMC’s mining activities on the Claims, and the Pipeline Easement is in addition to and not in derogation of any other rights of access available to Crown Mines by law.

11.

Notices.  All notices, payments and other required communications (“Notices”) to the Parties shall be in writing, and shall be addressed as follows:

3

If to Crown Mines:

Crown Mines, L.L.C.

P. O. Box 743547

Dallas, Texas  75374-3547

With a Copy to:

Michael R. Haggerty

Jackson Walker L.L.P.

901 Main Street, Suite 6000

Dallas, Texas  75202

If to DTMC:

Deer Trail Mining Company,

L.L.C.

8880 Rio San Diego Drive, 8th Floor

San Diego, California  92108

With a Copy to:

Robert N. Wilkinson, Esq.

60 East South Temple, Suite 1200

Salt Lake City, Utah  84111

All

Notices

 shall be given by personal delivery, by electronic communication or facsimile, with a confirmation sent by registered or certified mail return receipt requested, or by commercial courier service.  All Notices shall be effective and shall be deemed delivered on the date of delivery if delivered during normal business hours, and if not

,

 delivered during normal business hours, on the next business day following delivery.  A Party may change its address by Notice to the other Party.

12.

Authority.  Each of Crown Mines and DTMC represents and warrants to the other that its undersigned officer has been duly authorized, and has the power and authority, to execute this Agreement on its behalf.

13.

Successors and Assigns.  This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the Parties, their successors and assigns.

IN WITNESS WHEREOF, the parties have caused this Agreement to be properly executed by persons thereunto duly authorized for the purposes therein stated.

EXECUTED as of the date first above written.

DEER TRAIL MINING COMPANY,

L.L.C.

,

CROWN MINES, L.L.C.,

a Nevada limited liability company

a Texas limited liability company

By:  _/s/ Mark A. Lopez___________

By:  _/s/ I.N. Fehr______________

Its:  _Manager___________________

Its:  _Manager_________________

4

STATE OF CALIFORNIA

)

: ss.

COUNTY OF

SAN DIEGO

)

The foregoing instrument was acknowledged before me this 31 day of July, 2007, by Mark A. Lopez, Manager of DEER TRAIL MINING COMPANY,

L.L.C.

, a Nevada limited liability company.

[NOTARY SEAL]

_/s/ Vivian T. Harris____________

Notary Public

STATE OF TEXAS

)

: ss.

COUNTY OF

DALLAS

)

The foregoing instrument was acknowledged before me this 30th day of July, 2007, by I.N. Fehr, the President of CROWN MINES, L.L.C., a Texas limited liability company.

[NOTARY SEAL]

_/s/ Lorlee C. Bartos____________

Notary Public

5

EXHIBIT A

To Water Rights Lease and Water Pipeline Easement Agreement

Agreement between Cottonwood Irrigation Company and 

Deer Trail Development Corporation, dated July 28, 1977

6

7

8

9

10

11

EXHIBIT B

To Water Rights Lease and Water Pipeline Easement Agreement

PART 1

Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.

Patented Claims Located in Piute County, Utah

			
	CLAIM NAME

	 
	MINERAL SURVEY NUMBER

	CLIFF

	 
	MS 41

	DEER TRAIL

	 
	MS 42 A

	DEER TRAIL

	#01

	MS 6365 A

	DEER TRAIL

	#01 MILLSITE

	MS 6385 B

	DEER TRAIL

	#02

	MS 6365 A

	DEER TRAIL

	#02 MILLSITE

	MS 6365 B

	DEER TRAIL

	#03

	MS 6365 A

	DEER TRAIL

	#03 MILLSITE

	MS 6365 B

	DEER TRAIL

	#04

	MS 6396

	DEER TRAIL

	#05

	MS 6403 A

	DEER TRAIL

	#05 MILLSITE

	MS 6403 B

	DEER TRAIL

	#07

	MS 6403 A

	DEER TRAIL

	#08

	MS 6736

	DEER TRAIL

	#09

	MS 6736

	DEER TRAIL

	#10

	MS 6736

	DEER TRAIL

	#20

	MS 6736

	DEER TRAIL

	#30

	MS 6717

	DEER TRAIL

	#33

	MS 6717

	DEER TRAIL

	#34

	MS 6717

	DEER TRAIL

	#35

	MS 6717

	DEER TRAIL

	#36

	MS 6717

	DEER TRAIL

	#37

	MS 6717

	DEER TRAIL

	#38

	MS 6736

	DEER TRAIL FRAC.

	 
	MS 6717

	DEER TRAIL MILLSITE

	 
	MS 42 B

	DEWITT & FERGUSON

	 
	MS 52 A

	*DEWITT & FERSUSON MILLSITE

	MS 52 B

	GREEN EYED MONSTER

	 
	MS 43 A

	MONSTER APEX

	 
	MS 5972

	MONSTER APEX #2

	 
	MS 5972

	PLUTO

	 
	MS 46

	SPHINX

	 
	MS 6397

TOTAL CLAIMS     32

*DEWITT & FERGUSON MILLSITE MINERAL RIGHTS ONLY

12

EXHIBIT B

To Water Rights Lease and Water Pipeline Easement Agreement

PART II

Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.

Unpatented Claims Located in Piute County, Utah

					
	CLAIM NAME

	RECORDED BOOK

	RECORDED PAGE 

	AMENDED BOOK PAGE

	BLM SERIAL NUMBER

	APEX LODE

	D

	452

	 
	95579

	ATHENIA

	D

	423

	 
	95580

	BUSTER

	G

	459

	 
	95585

	BUSTER NO.1

	G

	460

	 
	95586

	BUSTER NO.2

	G

	461

	 
	95587

	BUSTER NO.3

	G

	461

	 
	95588

	BUSTER NO.4

	M

	129

	 
	95589

	BUSTER NO.5

	M

	130

	 
	95590

	BUSTER NO.6

	M

	131

	 
	95591

	BUSTER NO.7

	M

	131

	 
	95592

	BUSTER NO.8

	M

	132

	 
	95593

	BUSTER NO.9

	M

	133

	 
	95594

	CALEDONIA LODE

	D

	588

	 
	95596

	CINNABAR LODE

	D

	584

	 
	95599

	CLIFF NO. 1

	D

	371

	 
	95600

	CLIFF NO. 2

	D

	372

	 
	95601

	CLIFF NO. 3

	D

	372

	 
	95602

	CLIFF NO. 4

	D

	373

	 
	95603

	CLIFF NO. 5

	D

	373

	 
	95604

	CLIFF NO. 6

	D

	373

	 
	95605

	CLIFF NO. 7

	D

	374

	 
	95606

	CLIFF NO. 8

	D

	374

	 
	95607

	COLUMBINE LODE

	D

	586

	 
	95608

	CREST LODE

	D

	452

	 
	95610

	DEER TRAIL EXT.

	C

	250

	 
	95666

	DEER TRAIL EXT. NO. 01

	C

	250

	 
	95667

	DEER TRAIL EXT. NO. 02

	C

	250

	 
	95668

	DEER TRAIL EXT. NO. 03

	C

	251

	 
	95669

	DEER TRAIL EXT. NO. 04

	C

	251

	 
	95670

	DEER TRAIL EXT. NO. 05

	C

	252

	 
	95671

	DEER TRAIL EXT. NO. 06

	C

	252

	 
	95672

	DEER TRAIL EXT. NO. 07

	C

	253

	 
	95673

	DEER TRAIL EXT. NO. 08

	C

	253

	 
	95674

13

					
	DEER TRAIL EXT. NO. 09

	C

	253

	 
	95675

	DEER TRAIL EXT. NO. 10

	C

	254

	 
	95676

	DEER TRAIL EXT. NO. 11

	C

	254

	 
	95677

	DEER TRAIL EXT. NO. 12

	ll

	710

	JJ               65

	353982

	DEER TRAIL EXT. NO. 13

	ll

	711

	 
	353983

	DEER TRAIL EXT. NO. 14

	ll

	772

	 
	353984

	DEER TRAIL EXT. NO. 15

	ll

	713

	 
	353985

	DEER TRAIL EXT. NO. 24

	ll

	722

	 
	353994

	DEER TRAIL EXT. NO. 25

	ll

	723

	 
	353995

	DEER TRAIL EXT. NO. 26

	ll

	724

	 
	353996

	DEER TRAIL EXT. NO. 27

	ll

	725

	 
	353997

	DEER TRAIL EXT. NO. 28

	ll

	726

	 
	353998

	DEER TRAIL EXT. NO. 29

	ll

	727

	 
	353999

	DEER TRAIL EXT. NO. 30

	ll

	728

	 
	354000

	DEER TRAIL EXT. NO. 31

	ll

	729

	 
	354001

	DEER TRAIL EXT. NO. 32

	ll

	730

	 
	354002

	DEER TRAIL EXT. NO. 33

	ll

	731

	 
	354003

	DEER TRAIL EXT. NO. 34

	ll

	732

	 
	354004

	DEER TRAIL EXT. NO. 35

	ll

	733

	 
	354005

	DEER TRAIL EXT. NO. 36

	ll

	734

	 
	354006

	DEER TRAIL EXT. NO. 37

	ll

	735

	 
	354007

	DEER TRAIL EXT. NO. 38

	ll

	736

	 
	354008

	DEER TRAIL EXT. NO. 39

	ll

	737

	 
	354009

	DEER TRAIL EXT. NO. 40

	ll

	738

	 
	354010

	DEER TRAIL EXT. NO. 41

	ll

	739

	 
	354011

	DEER TRAIL EXT. NO. 42

	ll

	740

	 
	354012

	DEER TRAIL EXT. NO. 43

	ll

	741

	 
	354013

	DEER TRAIL EXT. NO. 44

	ll

	742

	 
	354014

	DEER TRAIL EXT. NO. 45

	ll

	743

	 
	354015

	DEER TRAIL EXT. NO. 46

	ll

	744

	 
	354016

	DEER TRAIL EXT. NO. 47

	ll

	745

	 
	354017

	DEER TRAIL EXT. NO. 48

	ll

	746

	 
	354018

	DEER TRAIL EXT. NO. 49

	ll

	747

	 
	354019

	DEER TRAIL EXT. NO. 50

	ll

	748

	 
	354020

	DEER TRAIL EXT. NO. 51

	ll

	749

	 
	354021

	DEER TRAIL EXT. NO. 52

	ll

	750

	 
	354022

	DEER TRAIL NO. 11

	A

	135

	 
	95612

	DEER TRAIL NO. 12

	A

	142

	 
	95613

	DEER TRAIL NO. 13

	A

	142

	 
	95614

	DEER TRAIL NO. 14

	A

	143

	 
	95615

	DEER TRAIL NO. 15

	A

	143

	 
	95616

	DEER TRAIL NO. 16

	A

	144

	 
	95617

14

					
	DEER TRAIL NO. 17

	A

	144

	 
	95618

	DEER TRAIL NO. 18

	A

	145

	 
	95619

	DEER TRAIL NO. 19

	A

	145

	 
	95620

	DEER TRAIL NO. 21

	24

	114

	 
	95621

	DEER TRAIL NO. 22

	24

	114

	 
	95622

	DEER TRAIL NO. 23

	24

	115

	 
	95623

	DEER TRAIL NO. 24

	24

	116

	 
	95624

	DEER TRAIL NO. 25

	24

	117

	 
	95625

	DEER TRAIL NO. 26

	24

	117

	 
	95626

	DEER TRAIL NO. 27

	24

	118

	 
	95627

	DEER TRAIL NO. 28

	24

	119

	 
	95628

	DEER TRAIL NO. 29

	24

	120

	 
	95629

	DEER TRAIL NO. 31

	1

	599

	 
	95630

	DEER TRAIL NO. 32

	24

	122

	 
	95631

	DEER TRAIL NO. 39

	B

	99

	 
	95632

	DEER TRAIL NO. 40

	B

	100

	 
	95633

	DEER TRAIL NO. 41

	B

	100

	 
	95634

	DEER TRAIL NO. 42

	B

	101

	 
	95635

	DEER TRAIL NO. 43

	B

	245

	 
	95636

	DEER TRAIL NO. 44

	B

	246

	 
	95637

	DEER TRAIL NO. 45

	B

	247

	 
	95638

	DEER TRAIL NO. 46

	B

	245

	 
	95639

	DEER TRAIL NO. 47

	B

	246

	 
	95640

	DEER TRAIL NO. 48

	B

	270

	 
	95641

	DEER TRAIL NO. 49

	B

	322

	 
	95642

	DEER TRAIL NO. 50

	B

	322

	 
	95643

	DEER TRAIL NO. 51

	B

	323

	 
	95644

	DEER TRAIL NO. 52

	B

	323

	 
	95645

	DEER TRAIL NO. 53

	B

	324

	 
	95646

	DEER TRAIL NO. 54

	B

	324

	 
	95647

	DEER TRAIL NO. 55

	G

	227

	 
	95648

	DEER TRAIL NO. 56

	G

	227

	 
	95649

	DEER TRAIL NO. 57

	G

	228

	 
	95650

	DEER TRAIL NO. 58

	G

	229

	 
	95651

	DEER TRAIL NO. 59

	G

	229

	 
	95652

	DEER TRAIL NO. 60

	G

	230

	 
	95653

	DEER TRAIL NO. 61

	G

	231

	 
	95654

	DEER TRAIL NO. 62

	G

	231

	 
	95655

	DEER TRAIL NO. 63

	G

	232

	 
	95656

	DEER TRAIL NO. 64

	G

	233

	 
	95657

	DEER TRAIL NO. 65

	G

	233

	 
	95658

	DEER TRAIL NO. 66

	G

	234

	 
	95659

15

					
	DEER TRAIL NO. 67

	G

	234

	 
	95660

	DEER TRAIL NO. 68

	G

	235

	 
	95661

	DEER TRAIL NO. 69

	G

	235

	 
	95662

	DEER TRAIL NO. 70

	G

	236

	 
	95663

	DEER TRAIL NO. 71

	G

	237

	 
	95664

	DEER TRAIL NO. 72

	G

	447

	 
	95665

	FALCON LODE

	D

	584

	 
	95681

	FIRE FLY LODE

	D

	584

	 
	95682

	GOLDEN EAGLE LODE

	D

	583

	 
	95693

	GORGE LODE

	D

	453

	 
	95697

	GRAND VIEW LODE

	D

	423

	 
	95698

	HIDDEN TREASURE AMENDED

	D

	589

	 
	95701

	JONQUIL LODE

	D

	587

	 
	95705

	KIESTER

	D

	586

	 
	95706

	LA CIGALE

	D

	587

	 
	95707

	LINDA PLACER

	N

	125

	 
	95709

	LOWER CONTACT

	D

	450

	 
	95714

	MONSTER #3

	B

	123

	 
	95719

	MONSTER #4

	B

	123

	 
	95720

	MONSTER #5

	B

	124

	 
	95721

	MONSTER #6

	B

	124

	 
	95722

	MONSTER #7

	B

	125

	 
	95723

	MONSTER #8

	B

	125

	 
	95724

	MONSTER #9

	B

	126

	 
	95725

	MOUNTAIN CHIEF AMENDED

	D

	589

	 
	95726

	MOUNTAIN CHIEF NO. 1

	M

	128

	 
	95727

	MOUNTAIN CHIEF NO. 2

	M

	129

	 
	95728

	OLD CHANNEL LODE

	D

	464

	 
	95747

	OLD CHANNEL LODE NO. 1

	M

	81

	 
	95748

	PORCUPINE LODE

	D

	588

	 
	95742

	PORTAL LODE

	D

	453

	 
	95749

	PORTAL NO. 1

	M

	82

	 
	95750

	PORTAL NO. 2

	M

	83

	 
	95751

	PYRITE LODE

	D

	585

	 
	95729

	RED KNOLL LODE

	D

	453

	 
	95731

	SANTA MARIA

	D

	464

	 
	95735

	SILVER WEDGE

	D

	422

	 
	95737

	SLOPE NO. 1

	D

	450

	 
	95752

	SLOPE NO. 2

	D

	451

	 
	95753

	SLOPE NO. 3

	D

	451

	 
	95754

16

					
	SLOPE NO. 4

	M

	83

	 
	95755

	SLOPE NO. 5

	M

	127

	 
	95756

	SLOPE NO. 6

	M

	127

	 
	95757

	SNOW SHOE LODE

	D

	583

	 
	95760

	SYLVIA PLACER

	N

	126

	 
	95763

	TAMARAC LODE

	D

	585

	 
	95764

	THE REEF LODE

	D

	588

	 
	95732

	TOMAHAWK LODE

	D

	583

	 
	95767

	TOPAZ LODE

	D

	587

	 
	95768

	VICTORY LODE

	D

	586

	 
	95771

	WHITE FLINT LODE

	D

	423

	 
	95776

	WILD CAT LODE

	D

	585

	 
	95758

	WOODLAND LODE

	D

	451

	 
	95759

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	TOTAL CLAIMS

	170

	 
	 
	 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]