Document:

EXHIBIT 4.11

            VOID AFTER 3:30 P.M., MOUNTAIN TIME, ON __________, 2003

                  INVESTOR'S WARRANTS TO PURCHASE COMMON SHARES

                                U.S. ENERGY CORP.

This is to Certify That, FOR VALUE RECEIVED, CAYDAL, LLC ("Holder"), is entitled
to purchase,  subject to the provisions of this Warrant, from U.S. ENERGY CORP.,
a Wyoming  corporation  (the  "Company"  or "we"),  at any time until 3:30 P.M.,
Mountain Time, on ________, 2003 ("Expiration Date") 25,000 shares of the Common
Stock of the Company  ("Common  Shares") at a purchase  price per share of $2.50
during the period that this Warrant is exercisable.  The number of Common Shares
to be received  upon the exercise of this Warrant and the price to be paid for a
Common Share may be adjusted  from time to time as  hereinafter  set forth.  The
purchase price of a Common Share in effect at any time and as adjusted from time
to time is  hereinafter  sometimes  referred to as the  "Exercise  Price."  This
Warrant is or may be one of a series of warrants identical in form issued by the
Company to purchase an  aggregate  of Common  Shares of the Company and the term
"Warrants" as used herein means all such Warrants (including this Warrant).  The
Common  Shares,  as adjusted  from time to time,  underlying  the  Warrants  are
hereinafter  sometimes  referred to as  "Warrant  Shares" and include all Common
Shares that have been issued upon the  exercise of the Warrants and all unissued
Common Shares underlying the Warrants.

     (A) EXERCISE OF WARRANT.

          (1) SURRENDER AND PAYMENT. This Warrant may be exercised in whole or
     in part at any time or from time to time until the Expiration Date or if
     the Expiration Date is a day on which banking institutions are authorized
     by law to close, then on the next succeeding day which shall not be such a
     day, by presentation and surrender hereof to the Company or at the office
     of its stock transfer agent, if any, with the Purchase Form annexed hereto
     duly executed and accompanied by cash payment or wire transfer of the
     Exercise Price for the number of shares specified in such Form, together
     with all federal and state taxes applicable upon such exercise.

          (2) MERGER; REORGANIZATION. The Company agrees not to merge,
     reorganize or take any action that would terminate this Warrant unless
     provisions are made as part of a Reorganization Action (as defined below)
     which would provide the holders of this Warrant with an equivalent of this
     Warrant as specified in Section (i) hereof; provided, however, that if
     reasonably required by the other party or parties to such Reorganization
     Action, the Company may accelerate the Expiration Date to a date prior to
     such merger, reorganization or other action, provided further, however,
     that the Company shall give the Holder written notice of such acceleration
     at least 30 days prior to such accelerated Expiration Date. For purposes
     hereof, a "Reorganization Action" means the closing of a merger or
     consolidation

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     of the Company with or into another entity in which the Company is not the
     surviving entity, or a merger (including a reverse triangular merger) in
     which the Company is the surviving entity but the shares of the Company's
     capital stock outstanding immediately prior to the merger are converted by
     virtue of the merger into cash, securities or other property.

          (3) TENDER; PARTIAL EXERCISE. The Company agrees to provide notice to
     the Holder that any tender offer is being made for the Company's Common
     Shares no later than three business days after the day the Company becomes
     aware that any tender offer is being made for outstanding Common Shares of
     the Company. If this Warrant should be exercised in part only, the Company
     shall, upon surrender of this Warrant for cancellation, execute and deliver
     a new Warrant evidencing the right of the Holder to purchase the balance of
     the Common Shares purchasable hereunder. Upon receipt by the Company of
     this Warrant at the office of the Company or at the office of the Company's
     stock transfer agent, in proper form for exercise and accompanied by the
     Exercise Price, the Holder shall be deemed to be the holder of record of
     the Common Shares issuable upon such exercise, notwithstanding that the
     stock transfer books of the Company shall then be closed or that
     certificates representing such Common Shares shall not then be actually
     delivered to the Holder.

     (B) RESERVATION OF SHARES. The Company hereby agrees that at all times
there shall be reserved for issuance and/or delivery upon exercise of this
Warrant such number of Common Shares as shall be required for issuance or
delivery upon exercise of this Warrant.

     (C) FRACTIONAL SHARES. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a Common Share called for upon any exercise hereof,
the Company shall, upon receipt by the Company or the Company's stock transfer
agent of the Exercise Price on such fractional share, pay to the Holder an
amount in cash equal to such fraction multiplied by the current market value of
such fractional share, determined as follows:

          (1) If the Common Shares are listed on a national securities exchange,
     are admitted to unlisted trading privileges on such an exchange, or are
     listed for trading on a trading system of the National Association of
     Securities Dealers, Inc. ("NASD") such as Regular NASDAQ ("NASDAQ") or
     NASDAQ/NMS ("NMS"), then the current value shall be the last reported sale
     price of the Common Shares on such an exchange or system on the last
     business day prior to the date of exercise of this Wan-ant or if no such
     sale is made on such day, the average of the closing bid prices for the
     Common Shares for such day on such exchange or such system shall be used;
     or

          (2) If the Common Shares are not so listed on such exchange or system
     or admitted to unlisted trading privileges, the current value shall be the
     average of the last reported bid prices reported by the National Quotation
     Bureau, Inc. on the last business day prior to the date of the exercise of
     this Warrant; or

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          (3) If the Common Shares are not so listed or admitted to unlisted
     trading privileges and if bid and asked prices are not so reported, the
     current value shall be an amount, not less than book value, determined in
     such reasonable manner as may be prescribed by the board of directors of
     the Company.

     (D) EXCHANGE, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable,
without expense, at the option of the Holder, upon presentation and surrender
hereof to the Company or at the office of its stock transfer agent, if any, for
other Warrants of different denominations entitling the Holder thereof to
purchase (under the same terms and conditions as provided by this Warrant) in
the aggregate the same number of Common Shares purchasable hereunder. This
Warrant may not be sold, transferred, assigned, or hypothecated except in
compliance with the Securities Act of 1933. Any such transfer or assignment
shall be made by surrender of this Warrant to the Company or at the office of
its stock transfer agent, if any, with the Assignment Form annexed hereto duly
executed and with funds sufficient to pay any transfer tax; whereupon the
Company shall, without charge, execute and deliver a new Warrant in the name of
the assignee named in such instrument of assignment and this Warrant shall
promptly be canceled. This Warrant may be divided or combined with other
Warrants which carry the same rights upon presentation hereof at the office of
the Company or at the office of its stock transfer agent, if any, together with
a written notice specifying the names and denominations in which new Warrants
are to be issued and signed by the Holder hereof. The term "Warrant" as used
herein includes any warrants issued in substitution for or replacement of this
Warrant, or into which this Warrant may be divided or exchanged. Upon receipt by
the Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) of
reasonably satisfactory indemnification, and upon surrender and cancellation of
this Warrant, if mutilated, the Company will execute and deliver a new Warrant
of like tenor and date. Subject to such right of indemnification, any such new
Warrant executed and delivered shall constitute an additional contractual
obligation on the part of the Company, whether or not this Warrant so lost,
stolen, destroyed, or mutilated shall be at any time enforceable by anyone.

     (E) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in the Warrant and
are not enforceable against the Company except to the extent set forth herein.

     (F) ADJUSTMENT PROVISIONS.

     (1) ADJUSTMENTS OF THE EXERCISE PRICE.

          (A) If the Company subdivides its outstanding Common Shares into a
     greater number of Common Shares, the Exercise Price in effect immediately
     prior to such subdivision shall be proportionately reduced. Conversely, if
     the Company combines its outstanding Common Shares into a lesser number of
     Common Shares, the Exercise Price in effect immediately prior to such
     combination shall be proportionally increased. In case of

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     a subdivision or combination, the adjustment of the Exercise Price shall be
     made as of the effective date of the applicable event. A distribution on
     Common Shares, including a distribution of Convertible Securities, to
     shareholders of the Company on a pro rata basis shall be considered a
     subdivision of Common Shares for the purposes of this subsection (1)(A),
     except that the adjustment will be made as of the record date for such
     distribution and any such distribution of Convertible Securities shall be
     deemed to be a distribution of the Common Shares underlying such
     Convertible Securities.

          (B) If the Company shall at any time distribute or cause to be
     distributed to its shareholders, on a pro rata basis, cash, assets, or
     securities of any entity other than the Company, then the Exercise Price in
     effect immediately prior to such distribution shall automatically be
     reduced by an amount determined by dividing (x) the amount (if cash) or the
     value (if assets or securities) of the holders' of Warrants (as such term
     is defined in the first paragraph hereof) pro rata share of such
     distribution determined assuming that all holders of Warrants had exercised
     their Warrants on the day prior to such distribution, by (y) the number of
     Common Shares issuable upon the exercise of this Warrant by the Holder on
     the day prior to such distribution.

          (2) ADJUSTMENTS OF EXERCISE PRICE - ON ISSUE AT LESS THAN EXERCISE
     PRICE. Excepted from the adjustment for anti-dilution provisions of this
     Section (2) and Section (3) are the Company's issuance of "Excluded Common
     Shares" as defined below, and also all issuance of (1) Common Shares or
     Convertible Securities in the form of stock options to the Company's
     employees or non-executive directors on exercise of stock options, and (2)
     Common Shares issued to acquire a subsidiary or its assets, provided (x)
     the Common Shares (but not the options) under (1) and (2) are issued at
     prices equal to the then current market price, and (y) as to options under
     (1), the exercise price of the options is equal to the market price when
     the options were granted.

          Whenever reference is made in this Section (2) or Section (3) to the
     distribution of Convertible Securities, the term "Convertible Securities"
     shall mean options or warrants or rights for the purchase of Common Shares
     of the Company (including purchase by exchange of outstanding securities of
     a subsidiary for Common Shares of the Company) or for the purchase of any
     stock or other securities convertible into or exchangeable for Common
     Shares of the Company.

          If the Company should at any time or from time to time hereafter issue
     or sell any of its Common Shares (other than that number of shares as
     equals $5,166,500 plus interest at approximately 8.5% per year, divided by
     the market price of Common Shares, being for convertible preferred stock of
     the Company and for investment of third parties into subsidiary Rocky
     Mountain Gas, Inc., which Common Shares shall be referred to herein as the
     "Excluded Common Shares") without consideration or for a consideration per
     share less than the Exercise Price in effect immediately prior to the time
     of such issue or sale, then forthwith upon such issue or sale, the Exercise
     Price shall be automatically adjusted to a

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     price (computed to the nearest cent) determined by dividing (i) the sum of
     (x) the number of Common Shares outstanding immediately prior to such issue
     or sale multiplied by the Exercise Price in effect immediately prior to
     such issue or sale, by (y) the consideration, if any, received by the
     Company upon such issue or sale, by (ii) the total number of Common Shares
     outstanding immediately after such issue or sale. For purposes of this
     Section (2) and (3), the following provisions (i) and (ii) shall also be
     applicable:

          (I) RIGHTS, OPTIONS OR WARRANTS. In case at any time hereafter the
     Company shall in any manner grant any right to subscribe for or to
     purchase, or any option or warrant for the purchase of Common Shares or for
     the purchase of any stock or securities convertible or exchangeable for
     Common Shares (such convertible or exchangeable stock or securities being
     hereinafter referred to as the "Underlying Convertible Securities") and if
     the minimum price per share for which Common Shares are issuable, pursuant
     to such rights, options, warrants or upon conversion or exchange of such
     Underlying Convertible Securities (determined by dividing (i) the total
     amount, if any, received or receivable by the Company as consideration for
     the granting of such rights, options, or warrants plus the minimum
     aggregate amount of additional consideration payable to the Company upon
     the exercise of such rights, options, or warrants under the terms of such
     rights, options, or warrants at the time of making such computation, plus,
     in the case of such Underlying Convertible Securities, the minimum
     aggregate amount of additional consideration, if any, payable upon the
     conversion or exchange thereof under the terms of such Underlying
     Convertible Securities at the time of making such computation, by (ii) the
     total maximum number of Common Shares issuable pursuant to such rights,
     options, or warrants or upon the conversion or exchange of the total
     maximum amount of such Underlying Convertible Securities issuable upon the
     exercise of such rights, options, or warrants or Underlying Convertible
     Securities at the time of making such computation) shall be less than the
     Exercise Price in effect immediately prior to the time of the granting of
     such rights or options, then the total maximum number of Common Shares
     issuable pursuant to such rights, options, warrants or upon conversion or
     exchange of the total maximum amount of such Underlying Convertible
     Securities issuable upon the exercise of such rights, options, or warrants
     under the terms of such rights, options, warrants or Underlying Convertible
     Securities at the time of making such computation shall (as of the date of
     granting of such rights, options, or warrants) be deemed to be outstanding
     and to have been issued for said price per share as so determined;
     provided, that no further adjustment of the Exercise Price shall be made
     upon the actual issue of Common Shares so deemed to have been issued unless
     the price per share received by the Company upon the actual issuance of
     Common Shares so deemed to be issued differs from the price per share which
     was last used to adjust the Exercise Price or unless by the terms of such
     rights, options, or warrants or Underlying Convertible Securities the price
     per share which the Company will receive upon any such issuance of Common
     Shares differs from the price per share which was last used to adjust the
     Exercise Price, in either of which events the Exercise Price shall be
     adjusted upon the occurrence of either such event to reflect the new price
     per share of Common Stock; and further provided, that, upon the expiration
     of such rights (including rights to convert or

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     exchange), options or warrants (a) the number of shares of Common Stock
     deemed to have been issued and outstanding by reason of the fact that they
     were issuable pursuant to such rights, options, or warrants (including
     rights to convert or exchange) that were not exercised, shall no longer be
     deemed to be issued and outstanding, and (b) the Exercise Price shall
     forthwith be adjusted to the price which would have prevailed had all
     adjustments been made on the basis of the issue only of the Common Shares
     actually issued upon the exercise of such rights, options, or warrants or
     upon conversion or exchange of such Underlying Convertible Securities. Such
     adjustments upon expiration shall have no effect on Warrants exercised
     prior to such expirations.

          (II) CONVERTIBLE SECURITIES. If the Company shall in any manner issue
     or sell any Convertible Securities other than the rights, options, or
     warrants described in Section (w) or (3) hereof and if the minimum price
     per share for which Common Shares are issuable upon conversion or exchange
     of such Convertible Securities (determined by dividing (i) the total amount
     received or receivable by the Company as consideration for the issue or
     sale of such Convertible Securities, plus the minimum aggregate amount of
     additional consideration, if any, payable to the Company upon the
     conversion or exchange thereof under the terms of such Convertible
     Securities at the time of making such computation, by (ii) the total
     maximum number of Common Shares issuable upon the conversion or exchange of
     all such Convertible Securities under the terms of such Convertible
     Securities at the time of making such computation) shall be less than the
     Exercise Price in effect immediately prior to the time of such issue or
     sale, then the total maximum number of Common Shares issuable upon
     conversion or exchange of all such Convertible Securities at the time of
     making such computation shall (as of the date of the issue or sale of such
     Convertible Securities) be deemed to be outstanding and to have been issued
     for said price per share as so determined; provided, that no further
     adjustment of the Exercise Price shall be made upon the actual issue of
     Common Shares so deemed to have been issued unless the price per share
     received by the Company upon the actual issuance of Common Shares so deemed
     to be issued differs from the price per share which was last used to adjust
     the Exercise Price or unless by the terms of such Convertible Securities
     the price per share which the Company will receive upon any such issuance
     of Common Shares differs from the price per share which was last used to
     adjust the Exercise Price, in either of which events the Exercise Price
     shall be adjusted upon the occurrence of either such event to reflect the
     new price per share of Common Shares; and, further provided that if any
     such issue or sale of such Convertible Securities is made upon exercise of
     any right to subscribe for or to purchase or any option to purchase any
     such Convertible Securities for which an adjustment of the Exercise Price
     has been or is to be made pursuant to the provisions of Section (2) or (3),
     then no further adjustment of the Exercise Price shall be made by reason of
     such issue or sale unless the price per share received by the Company upon
     the conversion or exchange of such Convertible Securities when actually
     issued differs form the price per share which was last used to adjust the
     Exercise Price or unless by the terms of such Convertible Securities the
     price per share which the Company will receive upon any such issuance of
     Common Shares upon conversion or exchange of such Convertible Securities
     differs from

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     the price per share which was last used to adjust the Exercise Price, in
     either of which events the Exercise Price shall be adjusted upon the
     occurrence of either of such events to reflect the new price per share of
     Common Shares; and, further provided, that, upon the termination of the
     right to convert or to exchange of any such Convertible Securities, which
     were not so converted or exchange, shall no longer be deemed to be issued
     and outstanding, and the Exercise Price shall forthwith be adjusted to the
     price which would have prevailed had all adjustments been made on the basis
     of the issue only of the number of Common Shares actually issued upon
     conversion or exchange of such Convertible Securities. Such adjustments
     upon expiration shall have no effect on Warrants exercised prior to such
     expiration.

                  (3) DETERMINATION OF ISSUE PRICE. In case any Common Shares or
         Convertible   Securities   which   shall  be  issued   for  cash,   the
         consideration  received therefor,  which shall be the gross sales price
         for such security without  deducting  therefrom any commission or other
         expenses  paid or incurred by the Company for any  underwriting  of, or
         otherwise in connection with, the issuance thereof,  shall be deemed to
         be the amount  received  by the  Company  therefor.  In case any Common
         Shares or Convertible  Securities  shall be issued for a  consideration
         part or all of which  shall  be  other  than  cash,  then the  Board of
         Directors  of the  Company  shall  determine  the  fair  value  of such
         consideration,  irrespective of accounting  treatment,  and such Common
         Shares or  Convertible  Securities  shall be deemed to have been issued
         for an amount of cash equal to the value so  determined by the Board of
         Directors.  The reclassification of securities other than Common Shares
         into securities  including Common Shares shall be deemed to involve the
         issuance  for a  consideration  other than cash of such  Common  Shares
         immediately  prior to the close of  business  on the date fixed for the
         determination  of  security  holders  entitled  to receive  such Common
         Shares.  In case any Common Shares or Convertible  Securities  shall be
         issued  together  with other stock or securities or other assets of the
         Company for consideration,  the Board of Directors of the Company shall
         determine what part of the consideration so received is to be deemed to
         be  consideration  for the issue of such Common  Shares or  Convertible
         Securities.

     (4) DETERMINATION OF DATE OF ISSUE. In case the Company shall take a record
of the holders of Common Shares for the purpose of entitling them (i) to receive
a dividend or other distribution payable in Common Shares or in Convertible
Securities or (ii) to subscribe for or purchase Common Shares or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the Common Shares deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

     (5) TREASURY SHARES. For the purpose of this Section (f), Common Shares at
any relevant time owned or held by, or for the account of, the Company shall not
be deemed outstanding.

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     (G) OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be adjusted as
required above, the Company shall forthwith file in the custody of its Secretary
or an Assistant Secretary at its principal office, and with its stock transfer
and warrant agent, if any, an officer's certificate showing the adjusted
Exercise Price determined as herein provided and setting forth in reasonable
detail the facts requiring such adjustment. Each such officer's certificate
shall be made available at all reasonable times for inspection by the Holder and
the Company shall, forthwith after each such adjustment, deliver a copy of such
certificate to the Holder.

     (H) NO ADJUSTMENT FOR SMALL AMOUNTS. Anything in Sections (2) or (3) to the
contrary notwithstanding, the Company shall not be required to give effect to
any adjustment in the Exercise Price unless and until the net effect of one or
more adjustments, determined as above provided, shall have required a change of
the Exercise Price by at least five cents, but when the cumulative net effect of
more than one adjustment so determined shall be to change the actual Exercise
Price by at least five cents, such change in the Exercise Price shall thereupon
be given effect.

     (I) NUMBER OF SHARES ADJUSTED. Upon any adjustment of the Exercise Price,
the Holder of this Warrant shall thereafter (until another such adjustment) be
entitled to purchase, at the new Exercise Price, the number of Common Shares,
calculated to the nearest full share, obtained by multiplying the number of
Common Shares initially issuable upon exercise of this Warrant by the Exercise,
Price specified in the first paragraph hereof and dividing the product so
obtained by the new Exercise Price.

     (J) NOTICES TO HOLDERS. So long as this Warrant shall be outstanding and
unexercised (i) if the Company shall pay any dividend or make/any distribution
upon the Common Shares or (ii) if the Company shall offer to the holders of
Common Shares for subscription or purchase by them any shares of stock of any
class or any other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then, in any such case, the Company shall
cause to be delivered to the Holder, at least 10 days prior to the date
specified in (x) or (y) below, as the case may be, a notice containing a brief
description of the proposed action and stating the date on which (x) a record is
to be taken for the purpose of such dividend, distribution or rights, or (y)
such reclassification, reorganization, consolidation, merger, conveyance, lease,
dissolution, liquidation or winding up is to take place and the date, if any is
to be fixed, as of which the holders of Common Shares of record shall be
entitled to exchange their Common Shares for securities or other property
deliverable upon such reclassification, reorganization, consolidation, merger,
conveyance, dissolution, liquidation or winding up.

     (K) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding Common
Shares of the Company (other than a change in par value, or from par value to no
par value, or from no par value to par value, or as a result of an issuance of
Common Shares by way of dividend or other distribution or of a subdivision or

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combination),  or in case of any  consolidation or merger of the Company with or
into another  corporation (other than a merger with a subsidiary in which merger
the  Company  is the  continuing  corporation  and which  does not result in any
reclassification,  capital  reorganization or other change of outstanding Common
Shares of the class  issuable  upon  exercise of this Warrant) or in case of any
sale or conveyance to another  corporation  of the property of the Company as an
entirety or  substantially  as an entirety,  the Company  shall cause  effective
provision  to be made so that the  Holder  shall have the right  thereafter,  by
exercising this Warrant,  to purchase the kind and amount of shares of stock and
other  securities  and property  which the Holder would have  received upon such
reclassification, capital reorganization or other change, consolidation, merger,
sale or conveyance had this Warrant been exercised prior to the  consummation of
such  transaction.  Any such provision  shall include  provision for adjustments
which shall be as nearly  equivalent as may be  practicable  to the  adjustments
provided for in this Warrant. The foregoing provisions of this Section (i) shall
similarly apply to successive  reclassifications,  capital  reorganizations  and
changes of Common Shares and to  successive  consolidations,  mergers,  sales or
conveyances.  In the event the Company spins off a subsidiary by distributing to
the  shareholders  of the  Company as a dividend or  otherwise  the stock of the
subsidiary,  the Company shall  reserve for the life of this Warrant,  shares of
the  subsidiary  to be delivered to the Holders of the Warrants upon exercise to
the same extent as if they were  owners of record of the  Warrant  Shares on the
record date for payment of the shares of the subsidiary.

     (L) REGISTRATION UNDER THE SECURITIES ACT OF 1933.

          (1) We agree with each Holder of this Warrant that as soon as
     practicable in 2001 after our financial statements for the fiscal year
     ended May 31, 2001 have been audited by our independent audit firm, we will
     prepare at our sole expense and file with the Securities and Exchange
     Commission (and use our best efforts to have the agency declare effective)
     a registration statement on Form S-3 under the Securities Act of 1933 to
     cover resale of Common Shares upon exercise of any of these Warrants by the
     Holder, and to qualify such issuance and resale thereof under the laws of
     such states specified in writing to us by the Holder in accordance with the
     terms of the Subscription Agreement between the Company and the Holder. The
     Holder shall be solely responsible for payment of any commissions on sale
     of the Common Shares. We will keep the registration statement effective by
     additional filings with the Securities and Exchange Commission for so long
     as this Warrant is exercisable. All provisions of this registration
     covenant section (l) shall be interpreted and controlled by the provisions
     of the Subscription Agreement by which this Warrant originally is issued to
     the Holder.

          (2) Each Holder shall supply such information as the Company may
     reasonably require from such Holders, or any underwriter for any of them,
     for inclusion in such registration statement or posteffective amendment.

          (3) The Company's agreements with respect to the Warrants and Warrant
     Shares in this Section will continue in effect regardless of the exercise
     or surrender of this Warrant.

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          (4) Any notices or certificates by the Company to the Holder and by
     the Holder to the Company shall be deemed delivered if in writing and
     delivered. personally or sent by certified mail, return receipt requested,
     to the Holder, addressed to him at his address as set forth on the Warrant
     or stockholder register of the Company, or, if the Holder has designated,
     by notice in writing to the Company, any other address, to such other
     address, and, if to the Company, addressed to it at 877 North 8th West,
     Riverton, Wyoming 82501. The Company may change its address by written
     notice to Holders.

     (M) TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933. The Company may
cause the following legend, or one similar thereto, to be set forth on the
Warrants and on each certificate representing Warrant Shares or any other
security issued or issuable upon exercise of this Warrant not theretofore
distributed to the public or sold to underwriters for distribution to the
public, unless legal counsel for the Company is of the opinion as to any such
certificate that such legend, or one similar thereto, is unnecessary:

     "The securities represented by this certificate may not be offered for
     sale, sold or otherwise transferred except pursuant to an effective
     registration statement made under the Securities Act of 1933 (the "Act")
     and under any applicable state securities law, or pursuant to an exemption
     from registration under the Act and under any applicable state securities
     law, the availability of which is to be established to the satisfaction of
     the Company."

     (N) APPLICABLE LAW. This Warrant shall be governed by, and construed in
accordance with, the laws of the state of Wyoming.

Dated: _________,  2001.

                                       U.S. ENERGY CORP.

                                       By:
                                            ------------------------------------
                                             Keith Larsen, President

                                       53

<PAGE>

                                  PURCHASE FORM

                                                  Dated:
                                                        ------------------------

The undersigned  hereby irrevocably elects to exercise the Warrant to the extent
of purchasing __________________ shares of Common Stock and hereby makes payment
of $_____________________ in payment of the actual exercise price thereof.

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name:
     ---------------------------------------------------------------------------
                  (Please typewrite or print in block letters)

Address:
         -----------------------------------------------------------------------

Signature:
           ---------------------------------------------------------------------

                                 ASSIGNMENT FORM

                                                  Dated:
                                                         -----------------------

         FOR VALUE RECEIVED,
                             ---------------------------------------------------

hereby sells, assigns and transfers unto
                                         ---------------------------------------

--------------------------------------------------------------------------------
               (Name: Please typewrite or print in block letters)

Address:
          ----------------------------------------------------------------------

the right to purchase Common Stock represented by this Warrant to the extent of

                                    shares as to which such right is exercisable
-----------------------------------

and does hereby irrevocably constitute and appoint
                                                   -----------------------------

--------------------------------------------------------------------------------

attorney, to transfer the same on the books of the Company with full power of

substitution in the premises.

                           Signature:
                                       -----------------------------------------

                                       54

<PAGE>EXHIBIT 10.1

                             ADVANCED LUMITECH, INC.

                             STOCK PURCHASE WARRANT

The Warrant  represented by this  certificate has not been registered  under the
Securities Act of 1933,  and such Warrant may not be sold or transferred  unless
such sale or transfer is in accordance with the registration requirements of the
Securities  Act of  1933,  as at the time  amended,  or in  conformity  with the
limitations  of Rule 144 or similar  rule as then in effect  under such Act,  or
unless some other  exemption from the  registration  requirements of such Act is
available with respect thereto.

Warrant No. 01.003                                  Number of Shares  21,000,000
------------------                                  ----------------------------

                             ADVANCED LUMITECH, INC.

                          COMMON STOCK, $.001 PAR VALUE

                            VOID AFTER MARCH 31, 2002

         This  Warrant is issued to DAVID J. GEFFEN  (DJG)  located at 11 Clover
Terrace,  South  Natick,  MA 01760 - USA by ADVANCED  LUMITECH,  INC.,  a Nevada
corporation (hereinafter with its successors called the "Company").

         For value received and subject to the terms and conditions  hereinafter
set out, the holder of this Warrant,  commencing  November 12, 2001, is entitled
upon surrender of this Warrant,  with the subscription  form annexed hereto duly
executed,  at the  office  of the  Company,  200  Linden  Street,  Suite  H-124,
Wellesley, Massachusetts 02482, or such other office as the Company shall notify
to the registered  holder hereof in writing,  to purchase from the Company at an
initial purchase price of 1.43 Cents ($0.0143) per share, 21,000,000 (twenty one
millions) fully paid and nonassessable  shares of Common Stock,  $.001 par value
(the "Common Stock"), of the Company. This Warrant may be exercised in part, and
the  registered  holder shall be entitled to receive a new warrant  covering the
number of shares in respect of which this Warrant shall not have been exercised.
The person or persons in whose name or names any certificate representing shares
of Common Stock is issued hereunder shall be deemed to have become the holder of
record of the shares represented thereby as at the close of business on the date
on which this Warrant is exercised  with respect to such shares,  whether or not
the  transfer  books of the  Company  shall be  closed.  Until such time as this
Warrant  is  exercised  or  terminates,  the  purchase  price  payable  and  the
securities  issuable  upon exercise of this Warrant are subject to adjustment as
hereinafter provided.

                                     - 1 -
<PAGE>

         I. This  Warrant  shall  expire at the close of  business  on March 31,
2002, and shall be void thereafter.

         II. The Company  covenants  that it will at all times  reserve and keep
available a number of its authorized  shares of its Common Stock,  free from all
pre-emptive  rights therein,  which will be sufficient to permit the exercise of
this Warrant.  The Company  further  covenants  that such Common Stock as may be
issued pursuant to the exercise of this Warrant will, upon issuance, be duly and
validly issued,  fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issue thereof.

         III. If the Company  shall at any time prior to the  expiration of this
Warrant  subdivide its outstanding  Common Stock,  by split-up or otherwise,  or
combine its outstanding  Common Stock, or issue additional shares of its capital
stock in payment of a stock dividend in respect of its Common Stock,  the number
of shares  issuable on the exercise of the  unexercised  portion of this Warrant
shall  forthwith be  proportionately  increased in the case of a subdivision  or
stock dividend, or proportionately  decreased in the case of a combination,  and
the purchase price then applicable to shares covered by the unexercised  portion
of this Warrant shall  forthwith be  proportionately  decreased in the case of a
subdivision or stock  dividend,  or  proportionately  increased in the case of a
combination.

         IV. In case of any reclassification,  capital reorganization, or change
of the  outstanding  Common  Stock of the  Company  (other than as a result of a
subdivision,  combination or stock dividend), or in case of any consolidation of
the Company with, or merger of the Company into,  another  corporation  or other
business organization (other than a consolidation or merger in which the Company
is the continuing  corporation and which does not result in any reclassification
or change of the  outstanding  Common Stock of the  Company),  or in case of any
sale or conveyance to another corporation or other business  organization of the
property of the Company, as an entirety or substantially as an entirety,  at any
time prior to the  expiration  of this  Warrant,  then,  as a condition  of such
reclassification,   reorganization,   change,  consolidation,  merger,  sale  or
conveyance,  lawful  provision  shall  be  made,  and  duly  executed  documents
evidencing the same from the Company or its successor  shall be delivered to the
holder of this Warrant,  so that the holder of this Warrant shall have the right
prior to the  expiration  of this Warrant to  purchase,  at a total price not to
exceed  that  payable  upon the  exercise  of the  unexercised  portion  of this
Warrant,  the kind and  amount  of shares  of stock  and  other  securities  and
property  receivable  upon  such   reclassification,   reorganization,   change,
consolidation,  merger, sale or conveyance by a holder of the number of share of
Common  Stock of the Company  which might have been  purchased  by the holder of
this Warrant immediately prior to such reclassification, reorganization, change,
consolidation,  merger,  sale or  conveyance,  and in any such case  appropriate
provisions  shall be made with  respect to the rights and interest of the holder
of this  Warrant  to the end  that  the  provisions  hereof  (including  without
limitation,  provisions  for the  adjustment  of the  purchase  price and of the
number of shares  purchasable upon exercise of this Warrant) shall thereafter be
applicable in relation to any shares of stock, and other securities and property
thereafter deliverable upon exercise hereof.

                                     - 2 -
<PAGE>

         V. In no  event  shall  any  fractional  share of  Common  Stock of the
Company be issued upon any exercise of the warrant granted  hereunder.  If, upon
exercise of this Warrant as an entirety,  the registered holder would, except as
provided in this Section 5, be entitled to receive a fractional  share of Common
Stock,  then the Company  shall  issue the next higher  number of full shares of
Common Stock, issuing a full share with respect to such fractional share.

         VI. If at any time prior to the expiration or exercise of this Warrant,
the  Company  shall pay any  dividend or make any  distribution  upon its Common
Stock or shall make any  subdivision or  combination  of, or other change in its
Common Stock, the Company shall cause notice thereof to be mailed,  first class,
postage  prepaid,  to the holder of this Warrant at least ten full business days
prior to the date as of which holders of Common Stock who shall  participate  in
such dividend, distribution,  subdivision, combination or other change are to be
determined.  Such  notice  shall also  specify  the time as of which  holders of
Common Stock who shall  participate in such dividend or  distribution  are to be
determined. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of any dividend or distribution.

         VII. A. The Company will maintain a register  containing  the names and
addresses of the holders of the Warrants. The "registered holder" of any Warrant
shall be the person in whose name such  Warrant is  registered  in said  warrant
register.  Any registered holder of this Warrant may change his address as shown
on the warrant register by written notice to the Company requesting such change.
Any notice or written  communication  required or  permitted  to be given to the
registered  holder  may be  given  by  registered  mail,  or  delivered  to such
registered holder at its address as shown on the warrant register.

               B. This Warrant,  and the rights evidenced hereby, are subject to
restriction on transfer set forth in Federal and State  securities  laws and may
not be offered  for sale,  sold,  transferred  or  otherwise  disposed of unless
registered  under The Securities Act of 1933, as amended,  and applicable  state
securities  laws,  or unless an exemption  therefrom is  available.  Permissible
transfers of this Warrant,  and the rights evidenced hereby,  may be made by any
registered  holder  hereof with respect to any or all of the shares  purchasable
hereunder.  Upon  presentation of this Warrant to the Company for transfer as an
entirety by the registered  holder, the Company shall issue a new warrant of the
same  denomination  to the assignee.  Upon  presentation  of this Warrant to the
Company by the registered  holder for such transfer with respect to a portion of
the shares of Common Stock purchasable hereunder,  the Company shall issue a new
warrant to the  assignee,  in such  denomination  as shall be  requested  by the
registered  holder  hereof,  and  shall  issue to such  registered  holder a new
warrant covering the number of shares in respect of which this Warrant shall not
have been transferred. .

               C. In the event  any  stockholders  of the  Company  are  granted
registration  rights in the future to register  shares of the Company's  capital
stock under the Securities  Act of 1933, as amended,  the holder of this Warrant
or the shares  issued on exercise  hereof  shall be  entitled  to  substantially
similar registration rights with respect to the shares.

                                     - 3 -
<PAGE>

               D. In case this Warrant  shall be  mutilated,  lost,  stolen,  or
destroyed,  the Company  may issue a new warrant of like tenor and  denomination
and deliver the same (a) in exchange and substitution for and upon surrender and
cancellation  of any  mutilated  Warrant,  or (b) in lieu of any  Warrant  lost,
stolen,  or destroyed,  upon receipt of evidence  satisfactory to the Company of
the loss, theft or destruction of such Warrant (including a reasonably  detailed
affidavit with respect to the  circumstances of any loss, theft, or destruction)
and of indemnity satisfactory to the Company.

         VIII.   Subject  to  compliance  with  applicable   Federal  and  State
securities law and certain  restrictions on transfer  referred to in Section 7B,
this Warrant and all rights  hereunder are  transferable in whole or in part, at
the office or agency of the Company at which this Warrant is  exercisable by the
holder hereof in person or by duly authorized  attorney,  upon surrender of this
Warrant together with the assignment  hereof properly  endorsed.  Until transfer
hereof on the books of the Company,  the Company may treat the registered holder
hereof as the owner hereof for all purposes.

         IX. Unless a current registration statement under the Securities Act of
1933, as amended, shall be in effect with respect to the securities to be issued
upon exercise of this Warrant,  the holder  hereof,  by accepting  this Warrant,
covenants  and agrees that, at the time of exercise  hereof,  and at the time of
any proposed transfer of securities  acquired upon exercise hereof,  such holder
will deliver to the Company a written statement that the securities  acquired by
the  holder  upon  exercise  hereof  are for the own  account  of the holder for
investment and are not acquired with a view to, or for sale in connection  with,
any distribution  thereof (or any portion thereof) and with no present intention
(at any such time) of offering and distributing  such securities (or any portion
thereof).  Further,  the holder shall comply with such  provisions of applicable
State securities laws as counsel to the Company shall advise.

         X. The  provisions  and terms of this  Warrant  shall be  construed  in
accordance with the laws of the Commonwealth of Massachusetts.

                                                 ADVANCED LUMITECH, INC.

                                                 By:____________________________
                                                      Patrick Planche, President

 (Corporate Seal)

Attest:

__________________________________

                                     - 4 -
<PAGE>

                              FORM OF SUBSCRIPTION

To:  Advanced Lumitech, Inc.                                           Date:

         The undersigned hereby subscribes for  ______________  shares of Common
Stock of ADVANCED LUMITECH, INC. covered by this Warrant. The certificate(s) for
such  shares  shall be issued  in the name of the  undersigned  or as  otherwise
indicated below:

                                       _________________________________________
                                       Name

                                       _________________________________________
                                       Name for Registration

                                       _________________________________________

                                       _________________________________________

                                       _________________________________________
                                       Mailing Address

<PAGE>

                               FORM OF ASSIGNMENT

 For value received _____________________ hereby sell, assign and transfer unto

________________________________________________________________________________
             Please print or typewrite name and address of Assignee

the  within  Warrant,   and  do  hereby   irrevocably   constitute  and  appoint
______________________  Attorney to transfer the within  Warrant on the books of
the within named Corporation with full power of substitution on the premises.

Dated:_____________________________

                                             By:________________________________

In the presence of:

____________________________________

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