Document:

Royalty Deed dated April 12, 2001

 Exhibit 10.6 
 398123 
 ROYALTY DEED 

THIS ROYALTY DEED is made effective this 12th day of April, by and among SUNSHINE PRECIOUS METALS, INC., whose address is P. O. Box 1080,
Kellogg, Idaho 83837 (hereafter “GRANTOR”) and THE UNITED STATES OF AMERICA, whose address is Director, Environmental Cleanup Office, U. S. Environmental Protection Agency, Region 10, 12 00 Sixth Avenue, Seattle, Washington 98191, and
Regional Director, U. S. Fish and Wildlife Service, 911 N.E. 11th Ave., Portland, Oregon 97232, and the COEUR D’ALENE TRIBE OF IDAHO, whose address is Chairman, Coeur d’Alene Tribe, P. 0. Box 408, Plummer, Idaho 83851. The United States
and Coeur d’Alene Tribe are hereafter referred to as GRANTEE. 
 For and in consideration of One Dollar ($1.00) and other
sufficient consideration, the receipt of which is hereby acknowledged, GRANTOR hereby grants and agrees to pay unto GRANTEE a variable production royalty of the Net Smelter Return as that term is herein defined (hereafter referred to as the
“PRODUCTION ROYALTY”) from the sale of minerals from the PROPERTY described in Attachment 1 (hereafter the “PROPERTY”) in accordance with the following schedule: 

 

					
	 Silver Price Average
	  	NSR Royalty	 
		
	 $ 0 - $5.99
	  	 	0.0	% 
	 $6.00 - $6.99
	  	 	1.0	% 
	 $7.00 - $7.49
	  	 	2.0	% 
	 $7.50 - $7.99
	  	 	2.5	% 
	 $8.00 - $8.49
	  	 	3.0	% 
	 $8.50 - $8.99
	  	 	4.0	% 
	 $9.00 - $9.49
	  	 	5.0	% 
	 $9.50 - $9.99
	  	 	6.0	% 
	 $10.00 and over
	  	 	7.0	% 

 The Net Smelter percentage utilized for the purpose of calculating the PRODUCTION ROYALTY payable for any
calendar quarter shall be determined by the average daily quotations of the Handy and Harmon New York official quotation as published in Metals Week (or its recognized successor in the publications of silver quotations) for that calendar quarter.

 GRANTOR shall, however, have the right to mine and market amounts of minerals and mineral-bearing ores and concentrates
reasonably necessary for sampling, assaying, metallurgical 

 398123 

 

 
testing and evaluating the minerals potential of the PROPERTY without initiating the obligation to make PRODUCTION ROYALTY payments. The term “Net Smelter Returns” shall mean the net
amount paid to GRANTOR by a smelter or other purchaser for minerals mined from the PROPERTY after deductions for the following costs paid by or charged to GRANTOR (whether paid or incurred by GRANTOR or by the smelter or other purchaser in the first
instance): (i) all smelting, refining, treatment, selling, and other costs, charges, and penalties charged by the smelter or other purchaser for such minerals; (ii) all costs of loading, transporting, and insuring such minerals and
mineral-bearing substances from the PROPERTY to the smelter or other purchaser; and (iii) all taxes paid by GRANTOR on such minerals or mineral-bearing substances, except income taxes, including, but not limited to, production, severance,
sales, and privilege taxes. Whenever minerals or mineral-bearing substances are delivered for direct sale or future processing thereof to a processing or sales facility owned or controlled by GRANTOR or which possesses or sells such minerals or
mineral-bearing substances for GRANTOR on a toll basis, the Net Smelter Returns from such sale shall be an amount not less than the amount which would have been realized by GRANTOR if the sale had been to the nearest independent purchaser of such
product; in such case, GRANTOR may deduct amounts not to exceed the charges, costs, and expenses permitted under the preceding sentence. GRANTOR shall make PRODUCTION ROYALTY payments within thirty (30) days after the end of the calendar
quarter in which proceeds from the sale of minerals or mineral-bearing substances are realized. At such time, GRANTOR shall provide GRANTEE with a statement showing in reasonable detail the computation of the PRODUCTION ROYALTY payments. Each
quarterly statement furnished to GRANTEE shall be deemed to be correct and binding on GRANTEE unless GRANTEE within ninety (90) days of its receipt, notifies GRANTOR in writing that GRANTEE disputes the correctness of such statement and
specifies its objections in detail. GRANTOR shall maintain true and correct records of all minerals and mineral-bearing substances mined and sold from the PROPERTY, and GRANTOR shall permit GRANTEE to inspect, at GRANTEE’S expense, the books
and records of GRANTOR which are pertinent to the determination of the PRODUCTION ROYALTY at any reasonable time during normal business hours, provided such inspection is conducted by GRANTEE or by an accounting firm of recognized standing, at least
one of whose members is a member of the American Institute of Certified Public Accountants, and provided such inspection does not interfere unreasonably with 

  
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 398123 

 

 
GRANTOR’S operations or procedures. 
 IN WITNESS WHEREOF, GRANTOR
has caused this Royalty Deed to be executed by its undersigned representative as of the date first above written. 
  

			
	SUNSHINE PRECIOUS METALS, INC.
		
	By	 	 

		 	President

 *    *    * 

 

			
	STATE OF TEXAS	  	)
		  	)    ss.
	County of Dallas	  	)

 On this 12th day of April, 2001, before me, the undersigned, a Notary Public in and for the State of
Texas, personally appeared WILLIAM W. DAVIS, known or identified to me to be the President of SUNSHINE PRECIOUS METALS, INC., and acknowledged to me that he executed the same for and 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.

  

	
	 Mary Jo Williams

	 Notary Public for the State of Texas
 My Comm’n Expires 3/13/03

 

 

  
 - 3 -

 398123 

 

 ATTACHMENT 1 
 All property within one mile of the external boundaries of the following-described parcels: 

PARCEL 1: 
 Sunshine, American, Iron King,
McKenzie, McKenzie Fraction, Rambo, Majestic, Thin, Rambo Fraction and Yakima Patented Mining Claims, M.S. 3169 situated in Evolution Mining District in Sections 14, 15, 21 and 22, Township 48 North, Range 3 East, B.M., Shoshone County, State of
Idaho. 
 EXCEPT: Those portions of the Sunshine and Yakima Lode Mining Claims, M.S. 3169 more particularly described as follows: 

Beginning at a point on the West End line of said Sunshine Lode, whence the Southwest corner, Corner No. 1 of said Sunshine Lode bears South
1°41’ East, 215.22 feet; thence 
 North 74°13’ East, 1500 feet; thence 

North 16°16’ East, 410.88 feet to a point on the Southerly line of said Yakima lode; thence 

South 78°04’ West along the Southerly line of said Yakima lode, 170.65 feet to the Southwest Corner, Corner No. 3 of said Yakima lode,
identical with the Southeast or Corner No. 4 of the Sunshine lode; thence 
 South 82°03’ West along the Southerly boundary line
of said Sunshine lode, 1343.41 feet to a point on the Southerly line of said Sunshine Lode, whence the Southwest or Corner No. 1 of said Sunshine lode bears South 82°03’ West, 54.79 feet; thence 

North 16°16’ West, 216.31 feet to the place of beginning. 
 ALSO EXCEPT: Those portions of the Sunshine, Iron King, and Thin Lode Mining Claims, all of M.S. 3169 embraced within the following boundaries, to-wit: 

Beginning at Corner No. 4 of the Thin Lode, Survey No. 3169 from which the Southwest corner of Section 15, Township 48 North, Range 3
East, B.M., bears North 3°02’ West, 883.62 feet and running thence 
 North 32°18’ East along line 4-1 Thin Lode, 252.01 feet
to a point; thence 
 South 9°43’ East, 213.90 feet to the Northeast Corner of the Mary E. Lode; thence 

South 9°43’ East, 600 feet to the Southeast Corner of the Mary E. lode and the Northeast corner of the Hilda lode; thence 

  
 CONTINUED

  
 1 

 398123 

 

 PARCEL 1 – Continued: 
 South 1°20’ East, 338.75 feet along the East end line of the Hilda lode to a point on the North side line of the Boston lode; thence 
 South 74°13’ West, 156.0 feet to the Northwest Corner of the Boston lode; thence 
 South
18°16’ East, 202.03 feet along the West End Line of the Boston lode to a point on the South side line of the Hilda lode; thence 

South 82°52’ West, 51.11 feet to a point on line 1-2, Sunshine lode, M.S. 3169; thence 
 North 1°41’ West, 585.20 feet to Corners 2 and 4, Sunshine and Iron King lodes, Survey No. 3169; thence 
 North 1°41’ West, 600.0 feet to Corner No. 1, Iron King lode, Survey No. 3169; thence 
 South 82°03’ West, 101.80 feet to Corner No. 4, Thin Lode, Survey No. 3169, and the place of beginning. 
 PARCEL 2: 
 Yankee Lode, Sherman, Cleaveland and Norcross Patented Mining Claims, M.S. 2267A and
Yankee Millsite Patented Millsite, M.S. 2267B situated in Evolution Mining District in Sections 15 and 22, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 
 PARCEL 3: 
 Crane Lode Patented Mining Claim, M.S. 3335 situated in Evolution Mining District in
Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 
 PARCEL 4: 

Chief Lode Patented Mining Claim, M.S. 3299 situated in Yreka and Evolution Mining Districts in Sections 15, 16, and 22, Township 48 North, Range 3 East,
B.M., Shoshone County, State of Idaho. 
 PARCEL 5: 
 May Day Patented Mining Claim, M.S. 3315 situated in Yreka and Evolution Mining Districts in Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 

  
 CONTINUED

  
 2 

 398123 

 

 PARCEL 6: 
 The Zwerg Group Patented Mining Claims consisting of the Gretchen, Hans, Plover, Rothbart, Schiller and Zwerg, M.S. 3272 situated in Evolution Mining District in Sections 15, 22 and 23, Township 48 North,
Range 3 East, B.M., Shoshone County, State of Idaho. Patent recorded in Book 77, Deeds, page 234. 
 EXCEPT: That portion described in the deed
to Metropolitan Mines Corporation and recorded as Instrument No. 153661, records of Shoshone County, State of Idaho. 
 PARCEL 7:

 The Iowa Group Patented Mining Claims consisting of the Iowa, Germania, Good Hope, New York, Buffalo, Bell, U.S., Lotten, Frigga, Des Moines,
Orvil, Maple, Last Chance, Ore or No Go, Sven, Anna, Anna No. 2, Mannie, August, May, Ore Grand, June, and H. & K. Claims, M.S. 3292A and the United Lead Millsite Patented Millsite, M.S. 3292B all situated in Evolution Mining District
in Sections 11, 13, 14, 15, and 23, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. Patent recorded as Instrument No. 153118, records of Shoshone County, State of Idaho. 

EXCEPT: That portion described in the deed to Wallace Realty Company recorded as Instrument No. 216621, records of Shoshone County, State of Idaho.

 ALSO EXCEPT: That portion of the K Lode lying within the South half of Section 11, Township 48 North, Range 3 East, B.M., Shoshone
County, State of Idaho. 
 ALSO EXCEPT: That portion described in the Decree recorded May 23, 1968 as Instrument No. 217256, records
of Shoshone County, State of Idaho. 

  
 CONTINUED

  
 3 

 398123 

 

 PARCEL 8: 
 All that portion of the West End Patented Mining Claim, M.S. 3174, situated in Evolution Mining District in Sections 14 and 23, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho and
more particularly described as follows: 
 Beginning at Corner No. 1 of said West End Lode, Survey No. 3174, and running thence;

 South 50° West, 659.54 feet to the intersection with line 3-2 of the Herschey Lode, Survey No. 3305; thence 

North 67°32’ West, 1216.34 feet along line 3-2 Herschey Lode to intersection with line 3-4 of said West End lode, Survey No. 3174; thence

 North 48°49’ East, 9.11 feet to intersection with line 1-2 Protection Lode, Survey No. 2083; thence 

North 71°35’40” East, 321.06 feet to Corner No. 2 Protection and Corner No. 1 Bartlett Lode, Survey No. 2083, and thence 

South 83°49’ East, 1334.28 feet to Corner No. 1 of said West End Lode and the place of beginning. 

PARCEL 9: 
 The Southwest quarter of the
Northwest quarter of Section 13, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 
 EXCEPT: That portion lying
within the Ore Grand Mining Claim, M.S. 3292. 
 PARCEL 10: 
 The Sunshine Consolidated Group consisting of Stevie Corcoran, Oslo, Mary E., Hilda, Gullickson Fraction, Baldur, Baldur Fraction, Contact Mountain, Venue, also known as Venus, Bonanza Fraction, Red
Umbrella, Red Umbrella Fraction, Rex, Rex Fraction, Roberts, Roberts Fraction, Roberts No. 1, Gail Fraction, Hattie Anne, S.C.I. No. 5, S.C.I. No. 5 Fraction, S.C.I. No. 6 and S.C.I. No. 10 Patented Mining Claims, M.S. 3273
situated in Yreka and Evolution Mining Districts, Shoshone County, State of Idaho. 

  
 CONTINUED

  
 4 

 398123 

 

 PARCEL 11: 
 The Rockford Group Patented Mining Claims consisting of Rockford, Happy Day, Corona, Corona No. 1, Corona No. 2, Corona No. 3, Excellsior, Happy Jack, Bay Horse, Grouse and Gem Lode, M.S.
2807 situated in Yreka Mining District, Shoshone County, State of Idaho. 
 EXCEPTING THEREFROM: Any portion of said claims lying within the
East 1/2 Northeast 1/4 of Section 19 and within the North 1/2 of the Northwest 1/4 of Section 20, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 
 PARCEL 12: 
 The S.C.I. Group Patented Mining Claims, consisting of Crescent No. 5, W-5 and
Giant No. 9, M.S. 3291 situated in Yreka Mining District, Shoshone County, State of Idaho. 
 EXCEPTING THEREFROM: Any portion of said
claims lying within the East 1/2 Northeast 1/4 of Section 19 and within the North 1/2 of the Northwest 1/4 of Section 20, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 

PARCEL 13: 
 Radio, Prudential, Josephine,
Francis, Helen, Lucky Day, Silver State, Spokane, Portland, and Silverine Fraction Patented Mining Claims, M.S. 3318 situated in Evolution Mining District in Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho.

 PARCEL 14: 
 Merit Fraction
No. 2, Josephine Fraction and Helen Fraction Patented Mining Claims, M.S. 3308 situated in Evolution Mining District in Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho. 

  
 CONTINUED

  
 5 

 398123 

 

 PARCEL 15: 
 A parcel of land lying in the Northwest quarter of Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho, and more particularly described as follows: 

Using the Bunker Hill Company triangulation meridian and beginning at a point where the West right of way line of the Big Creek road intersects the North
side line of the Monmouth lode claim, M.S. No. 2274, whence the quarter corner common to Sections 10 and 15, Township 48 North Range 3 East, B.M., bears North 89°48’16” East, 811.42 feet distant; thence 

South 32°39’58” West, 293.16 feet along said Big Creek Road right of way to a point, a concrete monument with brass cap MKD 59+00 40 feet
to centerline; thence 
 South 26°58’42” West, 100.50 feet along said right of way to a point; thence 

Continuing along said right of way South 32°39’58” West, 279.17 feet to a point identical with the Northeast Corner of Lot 1, Block 1 of
Big Creek Subdivision; thence 
 North 56°58’ West, 243.72 feet to a point identical with Corner No. 5 of the Big Creek
Subdivision; thence 
 Continuing along the Big Creek Subdivision Boundary, North 33°02’ East, 75.00 feet to a point identical with
Corner No. 4 of said subdivision; thence 
 North 56°58’ West, 175.00 feet to a point identical with Corner No. 3 of said
subdivision; thence 
 North 33°02’ East, 210.12 feet to a point identical with Corner No. 2 of said subdivision; thence 

Leaving said subdivision boundary and running North 32°49’52” East (shown of record as North 32°59.9’ East), 122.53 feet to a
point on the North side line of the Monmouth lode claim, M.S. 2274; thence 
 North 89°52’ East (shown of record as East), 483.68 feet
along said side line to the point of beginning. 

  
 CONTINUED

  
 6 

 398123 

 

 PARCEL 16: 
 A parcel of land lying in the Northwest quarter of Section 15, Township 48 North, Range 3 East, B.M., Shoshone County, State of Idaho and more particularly described as follows: 

Using the Bunker Hill Company triangulation meridian and beginning at Corner No. 1 of said tract identical with Corner No. 1 of the Monmouth
Claim, M.S. 2274 (an iron pipe with copper cap), from whence the quarter corner common to Sections 10 and 15, Township 48 North, Range 3 East, B.M., bears North 89°47’30” East, 710.52 feet distant; thence 

South 00°26’30” West, 599.65 feet distant (shown of record as South 00°32’00” West, 600.00 feet) to Corner No. 2,
identical with Corner No. 2 of the Monmouth Claim, M.S. 2274; thence 
 South 02°02’00” East, 271.54 feet distant to Corner No. 3;
thence 
 North 56°58’00” West, 489.21 feet distant to Corner No. 4, a point on the East right of way line of the Big Creek
Road, identical with the Northwest corner of Block 1, Big Creek Subdivision; thence 
 North 32°39’58” East (shown of record as
North 32°58’58” East) along said right of way 717.82 feet distant to Corner No. 5, a point on the North line of the Monmouth Lode Claim, M.S. 2274; thence 
 North 89°52’00” East (shown of record as East) 17.67 feet distant to Corner No. 1, the point of beginning. 

  
 7 

 398123 

 

 PARCEL 17 – Antimony Plant: 
 That certain parcel of real estate more specifically described as follows, to-wit: 
 That portion
of the South Half of the Southeast Quarter of the Southwest Quarter of Section 10, Township 43 North, Range 3, East, B.H., lying West of a straight line, beginning at a point 100’ East of the Southwest comer and terminating at a point 560
feet Fast of the Northwest corner of the aforesaid South Half of the Southeast Quarter of the Southwest Quarter of Section 10, Township 48 North, Range 3 E.B.M., Shoshone County, Idaho. 
 EXCEPT: A parcel of land in the SE 1/4 SW 1/4 of Section 10, Township 48 North, Range 3 E.B.M., Shoshone County, State of Idaho, and more particularly described as follows: 

Beginning at Corner No. 1 which bears North 70°56’00”, West, 1,080.81 feet from the Southeast comer of the SW 1/4 of said
Section 10; thence 
 North 55°40’ West, 220.00 to Corner No. 2; thence 
 North 42°20’ East, 408.98 feet to Corner No. 3; thence 
 South 55°40’ East,
163.08 feet to Corner No. 4; thence 
 South 34°20’ West, 405.00 feet to the point of beginning. 

TOGETHER WITH an easement for the purpose of ingress and egress located in SE 1/4 SW 1/4 of Section 10, Township 48 North, Range 3 E.B.M., Shoshone
County, State of Idaho, as follows: 
 Being 12.50 feet on either side of the following described centerline: 

Beginning at a point which bears South 34°20’ West, 132.5 feet from Corner No. 4 of the above described parcel; thence 

South 55°40’ East, 328 feet more or less to its intersection with the right of way of Big Creek Road. 

  
 8 

 398123 

 

 PARCEL 18 – Refinery: 
 A parcel of land in the SE 1/4 SW 1/4 of Section 10, Township 48 North, Range 3 E.B.M., Shoshone County, State of Idaho, and more particularly described as follows: 

Beginning at Corner No. 1 which bears North 70°56’00” West, 1,080.81 feet from the Southeast Corner of the SW 1/4 of said
Section 10; thence 
 North 55°40’ West, 220.00 to Corner No. 2; thence 
 North 42°20’ East 408.98 feet to Corner No. 3; thence 
 South 55°40’ East,
163.08 feet to Corner No. 4; thence 
 South 34°20’ West, 405.00 feet to the point of beginning. 

TOGETHER WITH an easement for the purpose of ingress and egress located in SE 1/4 SW 1/4 of Section 10, Township 48 North, Range 3 E.B.M., Shoshone
County, Idaho, as follows: 
 Being 12.50 feet on either side of the following described centerline: 

Beginning at a point which bears South 34°20’ West, 132.5 feet from Corner No. 4 of the above described parcel; thence 

South 55°40’ East, 328 feet more or less to its intersection with the right of way of Big Creek Road. 

PARCEL 19 – Executive Building: 
 A parcel
of land in the Southeast Quarter of Southwest Quarter of Section 10, Township 48 North, Range 3 E.B.M., Shoshone County, Idaho and being more particularly described as follows: 
 Using the Bunker Hill Company triangulation meridian and beginning at a point where the West right of way line of the Big Creek Road intersects the section line common to Sections 10 and 15, whence the
common quarter corner bears North 89°48’16” East, 811.42 feet distant; thence 
 Along the right of way line North
32°39.5’ East, 347.02 feet to a point a drill steel marked 8-SU, identical to Corner No. 8 of that certain deed recorded in Deeds, Book 144, Page 131; thence 
 Along said described deed line North 57°20.5’ West, 115.00 feet to Corner No. 11, identical to 9-SU of said deed; thence 
 South 32°39.5’ West, 120.00 feet to Corner No. 12, identical to 10-SU of said deed; thence 
 North 57°20.5’ West, 222.41 feet to Corner No. 13, identical to 1-SU of said deed; thence 

South 34°50.88’ West, 454. 45 feet to Corner No. 8, a drill steel monument with copper cap located on the section line between the two said
sections; thence 
 South 89°58’ East, 421.24 feet along said line to the point of beginning. 

  
 9 

 398123 

 

 The following-described property, parcels 20-30, are subject to that Royalty Deed dated
November 17, 1995, from Sunshine Precious Metals, Inc. to Hecla Mining Company granting Hecla Mining Company a Production Royalty from said property. 
 UNPATENTED MINING CLAIMS 
 Parcel 20: 

 

					
	Go Between Fraction	  	IMC #175833	  	T48N R3E Sec 13

 Parcel 21: 

Co-owned (50%/50%) with Hayden Hill Consolidated Mining Company: 
  

					
	Barbarosa	  	IMC # 175831	  	T48N R3E Sec 22, 23
			
	Western Star	  	IMC # 175832	  	T48N R3E Sec 22, 23

 Subject to the terms and conditions of that Agreement and Correction Deed among ConSil Corp.; Sunshine Precious Metals,
Inc.; Hayden Hill Consolidated Mining Company; and Hecla Mining Company recorded on May 17, 1996, with the Shoshone County, Idaho Recorder as Instrument No. 372396. 
 Parcel 22: 
 Bow 

Bud 
 All
minerals and metals and mineral-bearing rock in place in any and all veins, lodes, ledges and other mineral-bearing structures below an elevation of 900 feet below mean sea level for the following unpatented claims, conveyed to Consolidated Silver
Corporation by deeds from Coeur d’Alene Mines Corporation (12/20/68, Instrument No. 221764), Plainview Mining Company (12/20/68, Instrument No. 221765) and Merger Mines Corporation (1/7/69, Instrument No. 221766): 

 

					
	Bill	  	IMC # 29133	  	
	Dennis	  	IMC # 29140	  	
	Gary Lee	  	IMC # 29137	  	
	 Grubstake (west portion)

Hercules (west portion)
	  	 IMC # 29142
 IMC #
29144
	  	
	Intrepid	  	IMC # 29145	  	
	Jack	  	IMC # 29134	  	
	Jumbo (west portion)	  	IMC # 29143	  	
	Justin	  	IMC # 29139	  	
	March of Time (amended)	  	IMC # 29136	  	
	Mark	  	IMC # 29132	  	
	Pat	  	IMC # 29138	  	
	Pay Streak (amended)	  	IMC # 29141	  	
	Ray	  	IMC # 29135	  	
	Robin	  	IMC # 29131	  	

  
 10 

 398123 

 

 I. PATENTED MINING CLAIMS 

SURFACE & MINERALS RIGHTS: 
 Parcel 23:

  

					
	Homestake	  	M.S. 3220	  	

 All surface and mineral interests except the surface of the following described parcel of land conveyed to
Ductile Iron & Foundry, November 3, 1955, which is recorded in Book 90 of Deeds at page 408, Shoshone County. 

Beginning at the center Section 13, Township 48 North, Range 3 East, B.M., also identical with corner No. 2 Homestake Lode,
Mineral Survey 3220; 
 thence South 00°03’10” East, 247.00 feet, to a point; 

thence North 61°11’22” West, 242.78 feet, to a point; 

thence North 128.15 feet, to a point on the northerly sideline of said Homestake Lode; 

thence North 89°30’ East, 212.51 feet, to corner No. 2 of said Homestake Lode, Mineral Survey 3220, the place of beginning.

 Parcel 24: 
  

					
	Maxwell No. 3	  	M.S. 3220	  	

 Except that portion of the surface in conflict with the Orvil claim, M.S. 3292A which was conveyed to
Louisiana-Pacific Corporation by special warranty deed dated February 28, 1992, recorded as Instrument No. 351156 in the records of Shoshone County, Idaho. 
 Excluding mineral rights to any and all ores and minerals in the ground north of the Osburn fault, or any downward extension thereof, but without any right of access thereto through any of the properties.

  
 11 

 398123 
 SURFACE & MINERAL; RIGHTS (cont.): 
  

 Parcel 25: 
  

					
	Goethe	  	M.S. 3271	  	

 That portion of the claim situated easterly of that line known as the “Compromise End Line”
(said line being described in that certain agreement dated February 15, 1951, by and between Hayden Hill Consolidated Mining Company, Polaris Mining Company, Silver Summit Mining Company, Lincoln Mining Company, and Silver Dollar Mining
Company, said agreement being recorded in Book J of Leases and Agreements in the records of Shoshone County, Idaho at Page 155, said portion conveyed by deed dated December 18, 1968, recorded in Book 134, Pages 326-333, Instrument
No. 221772. 
 Parcel 26: 
  

					
	Orvil	  	M.S. 3292A	  	

 Except that portion of the Orvil claim lying north of the line described in Tract 2 in those deeds dated
January 31, 1969 from Lincoln Mining Company and Silver Dollar Mining Company, recorded in Book 134 at Pages 340-34 5 and Pages 334-339, Instrument Nos. 221772 and 221773, respectively, in the records of Shoshone County, Idaho. 

And also excepting that portion of the Orvil claim lying east of the west side line of section 13, Township 48 North, Range 3 East, B.M.,
Shoshone County, Idaho, which was conveyed to Louisiana-Pacific Corporation by special warranty deed dated February 28, 1992, recorded as instrument No. 351156 in the records of Shoshone County, Idaho. 

And also excepting that portion of the Orvil claim lying east of the west side line of section 13, Township 48 North, Range 3 East, B.M.,
Shoshone County, Idaho, as described in Tract 5 of the deed dated January 3, 1969, recorded in Book 134, Pages 314-319, Instrument No. 221769 in the records of Shoshone County, Idaho. 

  
 12 

 398123 

 

 MINERAL RIGHTS ONLY 
 Parcel 27: 
 Surface rights to the following claims were conveyed to Louisiana-Pacific Corporation
by special warranty deed dated February 28, 1992, recorded as Instrument No. 351156 in the records of Shoshone County, Idaho. 
  

					
	 Emma Nevada
	  	M.S. 1006	  	
	 Coeur d’Alene Nellie
	  	M.S. 1006	  	
			
	 Grizzly Bear
	  	M.S. 3170	  	
	 Jumbo No. 1
	  	M.S. 3170	  	
	 Jumbo No. 2
	  	M.S. 3170	  	
	 Jumbo No. 3
	  	M.S. 3170	  	
	 Jumbo No. 4
	  	M.S. 3170	  	
	 Jumbo No. 5
	  	M.S. 3170	  	
	 Jumbo No. 6
	  	M.S. 3170	  	
	 Key West
	  	M.S. 3170	  	
	 Protection Fraction
	  	M.S. 3170	  	
			
	 Go Between
	  	M.S. 3220	  	
			
	 Bernardy No. 4
	  	M.S. 3304	  	
	 Bernardy No. 5
	  	M.S. 3304	  	
	 Bernardy No. 6
	  	M.S. 3304	  	
	 Bernardy No. 7
	  	M.S. 3304	  	
	 Bernardy No. 9
	  	M.S. 3304	  	
	 Bernardy No. 11
	  	M.S. 3304	  	
	 Bernardy No. 12
	  	M.S. 3304	  	
	 Bernardy No. 13
	  	M.S. 3304	  	
			
	 Silver Dollar
	  	M.S. 3407	  	
	 Hidden Treasure
	  	M.S. 3407	  	

 Those portions of the following claims situate easterly of that line known as the “Compromise End
Line” (said line being described in that certain agreement dated February 15, 1951, by and between Hayden Hill Consolidated Mining Company, Polaris Mining Company, Silver Summit Mining Company, Lincoln Mining Company, and Silver Dollar
Mining Company, said agreement being recorded in Book J of Leases and Agreements in the records of Shoshone County, Idaho at Page 155, said portion conveyed by deed dated December 18, 1968, recorded in Book 134, Pages 326-333, Instrument
No. 221772. 
  

					
	 Torpedo
	  	M.S. 3170	  	

  
 13 

 398123 
 MINERAL RIGHTS ONLY (cont.): 
 Parcel 27 (cont.): 

 

					
	 Bernardy No. 1
	  	M.S. 3304	  	
	 Bernardy No. 2
	  	M.S. 3304	  	
	 Bernardy No. 3
	  	M.S. 3304	  	
	 Bernardy No. 10
	  	M.S. 3304	  	
			
	 North
	  	M.S. 3220	  	
	 Maxwell No. 1
	  	M.S. 3220	  	
	 Maxwell No. 2
	  	M.S. 3220	  	
	 Maxwell Fraction
	  	M.S. 3220	  	
			
	 Blue Jay No. 1
	  	M.S. 3221	  	
	 Blue Jay No. 2
	  	M.S. 3221	  	

 Mineral Rights to the following claims, excluding, however, any and all ores and minerals in the ground
north of the Osburn fault, or any downward extension thereof, but without any right of access thereto through any of the properties. 
  

					
	 Shoshone No. 1
	  	M.S. 3290	  	
	 Wallace No. 1
	  	M.S. 3290	  	
			
	 Anna No. 2
	  	M.S. 3292A	  	
	 August
	  	M.S. 3292A	  	
	 Bell
	  	M.S. 3292A	  	
	 Buffalo
	  	M.S. 3292A	  	
	 Des Moines
	  	M.S. 3292A	  	
	 Frigga
	  	M.S. 3292A	  	
	 Good Hope
	  	M.S. 3292A	  	
	 May
	  	M.S. 3292A	  	
	 June
	  	M.S. 3292A	  	
	 U.S.
	  	M.S. 3292A	  	
			
	 Anna
	  	M.S. 3292A	  	
	 Last Chance
	  	M.S. 3292A	  	
	 Lotten
	  	M.S. 3292A	  	
	 Mannie
	  	M.S. 3292A	  	
	 Ore or No Go
	  	M.S. 3292A	  	

 Excluding from the Anna, Last Chance, Lotten, Mannie and Ore or No Go claims, those portions lying north
of a line described in those certain deeds to Consolidated Silver Corporation on January 31, 1969 by Silver Dollar Mining Company and Lincoln Mining Company, recorded in Shoshone County records as Instrument Nos. 221773 and 221774, as follows:

  
 14 

 398123 
 MINERAL RIGHTS ONLY (cont.): 
 Parcel 27 (cont.): 

 

 “Starting at the southeast, or No. 1, corner of the Ore Grande claim, M.S.
3292A, which coincides with a point on the north side line of the Orvil claim, M.S. 3292A, which is 131.54 feet northwesterly from the northeast, or No. 1, corner of said Orvil claim; 

Thence North 70°48’ West a distance of 5,138 feet to a point on the north side line of the Lotten claim, M.S. No. 3292A,
which is approximately 650 feet easterly from the northwest, or No. 1, corner of said Lotten claim.” 
  

					
	 Trail
	  	M.S. 3407	  	
	 Blue Bell
	  	M.S. 3407	  	

 Excluding from the Trail and Blue Bell claims all the contained area in conflict with the Bartlett claim,
M.S. 2083, and the Jumbo No. 3 claim, M.S. 3170. 
  

					
	 Germania
	  	M.S. 3292A	  	
	 Good Hope
	  	M.S. 3292A                [listed above also]	  	
	 Iowa
	  	M.S. 3292A	  	

 Excluding from the Iowa, Germania and Good Hope claims, the extralateral rights to the Chester vein west
of a vertical plane extended indefinitely downward and north and south through the east end line of the Good Hope claim, and all ores lying within a distance of 200 feet north or south of the center of the said Chester vein west of said vertical
plane. 
 Parcel 28: 
 All minerals and
metals and mineral-bearing rock in place in any and all veins, lodes, ledges and other mineral-bearing structures below an elevation of 900 feet below mean sea level for the following patented claims conveyed to Consolidated Silver Corporation by
deeds from Coeur d’Alene Mines Corporation (12/20/68, Instrument No. 221764) , Plainview Mining Company (12/20/68, Instrument No. 221765) and Merger Mines Corporation (1/7/69, Instrument No. 221766); and 15% interest and rights
to the ores and minerals between mean sea level and 900 feet below mean sea level on the following patented claims as described in that certain Quitclaim Deed from American Smelting and Refining Company, Callahan Mining Corporation, and Day

  
 15 

 398123 
 MINERAL RIGHTS ONLY (cont.): 
 Parcel 28 (cont.): 

 

 Mines, Inc. to Coeur d’Alene Mines Corporation, Merger Mines Corporation, Plainview Mining Company,
Inc. and Consolidated Silver Corporation dated January 31, 1972 (recorded on April 11, 1972 as Instrument No. 239511): 
  

					
	 Aetna
	  	M.S. 3261	  	
	 Bernardy No. 8
	  	M.S. 3261	  	
	 Little Gem
	  	M.S. 3261	  	
	 Lucky Boy
	  	M.S. 3261	  	
	 Lucky Stone
	  	M.S. 3261	  	
	 Lucky Stone No. 2
	  	M.S. 3261	  	
	 Lucky Stone No. 3
	  	M.S. 3261	  	
	 Lucky Stone No. 4
	  	M.S. 3261	  	
	 Manitoba
	  	M.S. 3261	  	
	 Morning Glory
	  	M.S. 3261	  	
	 Morning Glory Fraction
	  	M.S. 3261	  	
	 Morning Glory No. 2
	  	M.S. 3261	  	
	 Reid
	  	M.S. 3261	  	
	 Walters
	  	M.S. 3261	  	
			
	 Fourthought
	  	M.S. 3281	  	
	 Plainview Fraction
	  	M.S. 3281	  	
	 Plainview No. 1
	  	M.S. 3281	  	
	 Plainview No. 2
	  	M.S. 3281	  	
	 Silver Hill
	  	M.S. 3281	  	
	 Toughnut
	  	M.S. 3281	  	
			
	 Commodore Truxton
	  	M.S. 3382	  	

 III. OTHER PROPERTY 
 SURFACE RIGHTS ONLY: 
 Parcel 29: 

Portion of the SE/4 NW/4, Section 13, Township 48 North, Range 3 East 

Surface rights conveyed to Consolidated Silver Corporation by Hecla Mining Company by deed dated December 18, 1968, recorded in the
records of Shoshone County in Book 134 at Pages 32 6-333, Instrument No. 221772, further described as follows: 

  
 16 

 398123 
 SURFACE RIGHTS ONLY (cont.): 
 Parcel 29 (cont.): 

 

 Beginning at the center of said Section 13, identical with the northeast corner of
the Homestake Lode, M.S. 3220; thence South 89°30’ West, 212.51 feet, to a point on the north side line of said Homestake Lode, the real place of beginning; 
 thence South 89°30’ West along the north side line of said Homestake Lode, 296.98 feet, to corner No. 3 of the Maxwell Lode, M.S. 3220; 

thence North 87°48’20” West along the north side line of said Maxwell No. 3 Lode 789.58 feet, to a point on the west
boundary of the Southeast Quarter of the Northwest Quarter of Section 13; 
 thence northerly along the west boundary of
said quarter quarter section, 963 feet, more or less to a point on the southerly said railroad right-of-way line of the Union Pacific Railroad Company; 
 thence southeasterly along the southerly right-of-way line, of said railroad right-of-way 738 feet, more or less, to the northwest corner of the parcel of ground known as the Jensen lease; 

thence South 25°27’ West, 160.00 feet, to the southwest corner of said Jensen lease; 

thence South 64°33’ East, 82.00 feet, to the southeast corner of said Jensen lease, identical with the southwest corner of that
parcel of ground known as the Bitco property; 
 thence South 31°33’ East, 58.33 feet, on and along the southerly
boundary of said Bitco property to a point; 
 thence South 83°55’57” East on and along the southerly boundary of
said Bitco property, 151.32 feet, to the northwest corner of the McKay property; 
 thence South 250.05 feet, on and along the
westerly boundary of said McKay property to a point on the center of the Polaris Mill secondary railroad spur track at station 2+11.0 of said secondary spur track; 

  
 17 

 398123 
 SURFACE RIGHTS ONLY (cont.): 
  

 thence northeasterly around a 10° curve to the left, 121 feet more or less to
station 0 + 90.00 of said secondary spur track; 
 thence northeasterly around a 7°22’ curve to the left, 90.00 feet, to
station 0 + 00, the beginning of said secondary spur track, identical with station 6 + 24.3 of the main Polaris Mill railroad spur; 
 thence North 62°33’15” East along the center of said railroad spur, 96.51 feet, to the northwest corner of the Burns Yaak property; 

thence South on and along the west boundary of the Burns Yaak property, 194.94 feet, to the real place of beginning; 

Excluding therefrom all rights-of-way and easements of record. 
 Parcel 30: 
 Portion of the SW/4 NW/4 of Section 13, Township 48 North, Range 3
East 
 Surface rights conveyed to Consolidated Silver Corporation by Silver Chieftan Company in that deed dated January 3,
1969, recorded in the records of Shoshone County in Book 134 at Pages 314-319, Instrument No. 221769 and by Lincoln Mining Company in that deed dated January 9, 1969 recorded in the records of Shoshone County in Book 134 at Pages 308-313,
Instrument No. 221768, described as follows: 
 Beginning at the west one quarter corner of said section 13; 

thence northerly along the west side line of section 13 a distance of 450 feet; 

thence easterly to the east side line of the southwest one quarter of the northwest one quarter (SW 1/4 NW 1/4) of section 13; 

thence southerly along said east side line a distance of 450 feet to the east-west centerline of section 13; 

  
 18 

 398123 
 SURFACE RIGHTS ONLY (cont.): 
 Parcel 30 (cont.): 

 

 thence westerly along said east-west centerline to the west one quarter corner of said
section 13 and the point of beginning, 
 together with one-half of the waters of springs and other waters on said premises
and/or in Rosebud Gulch. 

  
 19 

 398123 

 

 The following-described property, parcels 31-36, are subject to that Production Royalty,
reserved by Hecla Mining Company in that Deed recorded on June 10, 1999, by the Shoshone County, Idaho Recorder as Instrument No. 389125: 

SURFACE RIGHTS ONLY: 
 Parcel 31: 

Portion of the SW/4 NW/4, Section 13, Township 48 North, Range 3 East (Con Sil Pump House Area) 

Surface rights only (minerals reserved by Sunshine Mining Company) to the following parcel of land conveyed to Hecla Mining Company by Sunshine Mining
Company by quitclaim deed dated August 9, 1983, recorded in Shoshone County, Idaho as Instrument No. 306944. 
 A
parcel of land lying within the SW1/4, NW1/4 Section 13, T 48 N, R 3 E, B.M., Shoshone County, Idaho and more particularly described as follows: 
 Beginning at the West 1/4 corner of said Section 13, thence North 70°27’06” East a distance of 1,378.15 feet more or less to corner No. 1, a point on the east boundary of the
SW1/4, NW1/4 and the true place of beginning. 
 Thence South 89°30’ West, along the present boundary between
Consolidated Silver Corporation and Sunshine Mining Company, a distance of 330 feet to a point, corner No. 2; 
 Thence
North 0°01’40” East a distance of 150 feet to a point, corner No. 3; 
 Thence North 89°30’ East a
distance of 305 feet to a point, corner No. 4; 
 Thence North 0°01’40” East and paralleling the east boundary
of the SW1/4 NW1/4 a distance of 409.1 feet more or less to a point on the south right-of-way of the Union Pacific Railroad Company, corner No. 5; 
 Thence South 54°29’ East a distance of 30.71 feet along the southerly right-of-way of Union Pacific Railroad Company to a point on the east boundary of the SW1/4 NW1/4, corner No. 6;

 Thence South 0°01’40” West along the east boundary of the SW1/4 NW1/4 a distance of 541.5 feet more or less to
the true place of beginning and containing approximately 1.366 acres. 

  
 20 

 398123 

 

 Parcel 32: 
 Two parcels of land in S1/2 NW1/4, Section 11, Township 48 North, Range 3 East 

Portions of the July claim, M.S. 2819, Glamorgan claim, M.S. 2149, and Pembroke claim, M.S. 2149 conveyed to Hecla Mining Company by
ASARCO Incorporated by quitclaim deed dated October 7, 1981, recorded in Shoshone County as Instrument No. 295884. 
 MINERAL RIGHTS
ONLY: 
 Parcel 33: 
 Mineral rights on
a 1.22 acre tract of ground just south of the Bitco plant conveyed to Hecla Mining Company by J.E. and Elsie G. McKay, by deed dated November 23, 1960, recorded n Shoshone County in Book 102 at Page 412, described as follows: 

Beginning at the northwest corner of the property, this point being on the southerly sideline of Bitco Co. property, whence the center of
Section 13, Township 48 North, Range 3 East, B.M., also identical with corner No. 2 Homestake lode, M.S. 3220 bears S 56°23’57” E 597.80 feet; thence S 83°55’57” E, 501.08 feet more or less, on and along a line
identical with the southerly boundary of Bitco Co. property to a point on the north-south centerline of Section 13, Township 48 North, Range 3 East, B.M., which is also on the Polaris Spur Track centerline at station 2 + 99.0 and identical with
the easterly corner of the Bitco Co. property; thence westerly along the centerline of said Polaris spur track leading to the Polaris Mill around a 10° curve to the left, 175.0 feet to station 4 + 74.0, the end of the curve; thence S
62°33’15” W, 150.3 feet along said centerline to station 6 + 24.3, identical with station 0 + 00.0, the beginning of a secondary Polaris Mining Co. spur track; thence 90.0 feet around a 7°22’ curve to the right to station 0 +
90.0 of said secondary spur track; thence 121.0 feet more or less around a 10° curve to the right to station 2 + 11.0 of said secondary spur track; thence North, 250.05 feet more or less to the northwest corner of said property, the place of
beginning. 
 To be excluded from above described property is a 17.50 foot strip northerly from and parallel to the centerline of
said described Polaris Mining Co. spur tracks. 
 Said tract contains 1.22 acres more or less, and is identical to that tract
conveyed by Polaris Mining Company to J.E. McKay on the 24th day of November 1954, and recorded, together with a plat of same, in Book 90 of Deeds at Page 586 on the 5th day of March 1956. 

  
 21 

 398123 

 

 Parcel 34: 
 Mineral rights on a parcel of ground conveyed to Hecla Mining Company by quitclaim deed dated January 10, 1955 to Bitco Incorporated, recorded in Shoshone County in Book 89 at Page 315, further
described as follows: 
 Beginning at the southwesterly corner of said tract, whence the center of Section 13, Township 48
North, Range 3 East, also identical with comer No. 2 Homestake Lode, M.S. 3220 bears South 62°07’41” West, 735.64 feet; thence Norm 31°33’ West, 58.33 feet to a point; thence North 25°27 East, 154.50 feet to a point
on the southerly right-of-way line of the Union Pacific Railroad Company; thence South 62°06’10” East, 64.59 feet along said southerly Union Pacific right-of-way line to a point; thence South 64° 10’ East, 98.09 feet along
said southerly right-of-way line to a point; thence South 70° East, 497.51 feet along said southerly right-of-way line to a point on the east boundary line of the northwest quarter of Section 13, Township 48 North, Range 3 East, B.M.;
thence due south, 15.06 feet along-said boundary line to a point on the centerline of a spur track leading to the Polaris Mill at railroad station 2 + 99.0, identical with the northeast corner of J.E. McKay property; thence North
83°55’57” West, 501.08 feet on and along the northerly boundary of said J.E. McKay property to a point, identical with the northwest corner of said J.E. McKay property; thence North 83°55’57” West, 151.32 feet to the
southwesterly corner, the place of beginning. Said tract contains 1.44 acres more or less. 
 This “West” call should
be “East”, note made in files, but apparently not corrected in county records. 
 Parcel 35: 

Minerals rights on a parcel of ground conveyed to Hecla Mining Company by Quitclaim Mining Deed dated June 26, 1984, from Sunshine Mining Company
recorded in Shoshone County as Instrument No. 311991 referred to as the “NEW PURIM AREA.” described in paragraph (a) south of a system of dividing planes hereinafter defined in paragraph (b) , which New Purim Area is described as
follows: 

  
 22 

 398123 

 

 (a) Beginning at Corner No. 4, Herschey lode claim, Mineral Survey No.
3305, identical with the north end of the compromise Common End Line; whence the corner of Sections 14 and 15, T. 48 N., Range 3, E.B.M., bears North 66°02’28” West 1839.81 feet dist.; thence North 33°04’08” East 439.30
feet on and along line 4-3 of said Herschey lode to its intersection with line 1-4 Torpedo lode, Mineral Survey No. 3170; thence North 62°42’50” West 143.75 feet on and along line 1-4 of said Torpedo lode to its intersection with line
4-1 Hidden Treasure lode, Mineral Survey No. 3383; thence North 47°12’46” East 589.70 feet on and along line 4-1 of said Hidden Treasure lode to Corner No. 1 of said Hidden Treasure lode, identical with Corner No. 1 Trail lode, Mineral
Survey No. 3383; thence North 50°16’32” East 213.96 feet on and along line 1-2 of said Trail lode to its intersection with line 2-1 of the Bartlett lode, Mineral Survey No. 2083, also on and along line 1-4 of the West End lode, Mineral
Survey No. 3174; thence North 83°56’35” West 1302.00 feet on and along line 2-1 of the said Bartlett lode to Corner No. 1 of said Bartlett lode, identical with Corner No. 2 of the Protection lode, Mineral Survey No. 2083; thence
South 71°22’36” West 1258.24 feet on and along line 2-1 of said Protection lode to Corner No. 1 of said protection lode; thence North 12°07’ East 170.75 feet on and along line 1-4 of said Protection lode to its intersection
with line 4-1 of the American lode, Mineral Survey No. 3169; thence South 19°19’ West 128.86 feet on and along line 4-1 of the said American lode to Corner No. 1 of said American lode; thence South 88°23’ West 784.05 feet on and
along line 1-2 of said American lode to its intersection with line 2-3 of the Rambo lode, Mineral Survey No. 3169, also along line 4-3 of the Rotbart lode, Mineral Survey No. 32 72; thence South 1°41’ East 538.63 feet on and along line 2-3
of said Rambo lode to Corner No. 3 of said Rambo lode, identical with Corner No. 3 of said Rotbart lode, Corner No. 1 of the Schiller lode, Mineral Survey No. 3272, and Corner No. 2 of the Majestic lode, Mineral Survey No. 3169; thence South
1°41’ East 600.00 feet on and along line 2-3 of the said Majestic lode to Corner No. 3 of said Majestic lode; thence South 75°13’30” West 873.67 feet on and along line 3-4 of said Majestic lode to its intersection with line
1-5 of 

  
 23 

 398123 

 

 
the Hans lode, Mineral Survey No. 3272; thence South 9°54’ West 53.27 feet on and along line 1-5 of said Hans lode to Corner No. 5 of said Hans lode; thence South 11°16’30”
West 653.16 feet on and along line 3-2 of the Plover lode, Mineral Survey No. 3272, to Corner No. 2 of the said Plover lode; thence South 53°51’ East 768.48 feet on and along line 2-1 of said Plover lode to its intersection with the north
side line of the Hudson lode, unsurveyed; thence South 83°25’14” East 665.90 feet on and along the north side line of the said Hudson lode to its intersection with line 1-4 of the said Plover lode; thence North 11°16’30”
East 290.93 feet on and along line 1-4 of the said Plover lode to Corner No. 4 of the said Plover lode, identical with Corner No. 4 of the Hans lode, Mineral Survey No. 3272, Corner No. 1 of the Gretchen lode, Mineral Survey No. 3272 and Corner No.
2 of the Grimm lode, Mineral Survey No. 3272; thence South 53°51’ East 523.61 feet on and along line 1-4 of the said Gretchen lode to its intersection with the north side line of the Studebaker lode, unsurveyed; thence due East 858.94 feet
on and along the north side line of the said Studebaker lode to its intersection with line 4-3 of the said Gretchen lode; thence North 9°54’ East 84.22 feet on and along line 4-3 of the said Gretchen lode to Corner No. 3 of the said
Gretchen lode; thence North 53°51’ West 265.25 feet on and along line 3-2 of the said Gretchen lode to its intersection with the south end of the Compromise Common End line; thence North 33°04’08” East 1952.88 feet on and
along the Compromise Common End Line to Corner No. 4 of the Herschey lode, the place of beginning of the description of the exterior boundaries. 
 (b) Said system of dividing planes within said New Purim Area is established as follows: A system of connected southerly dipping planes, which planes are identical to the Southerly boundary of the Polaris
Area as established in that certain Agreement dated December 9, 1957, among Sunshine Mining Company, Polaris Mining Company, Lincoln Mining Company, Hayden Hill Consolidated Mining Company and Silver Dollar Mining Company, except that said
planes extend easterly to the easterly vertical boundary of said New Purim Area. The intersection of said dividing planes and the 

  
 24 

 398123 

 

 
easterly vertical boundary of the New Purim Area at an elevation of 2215.0 feet is at coordinates S. 79417.18 and E. 81009.44 and where said dividing planes intersect the vertical boundary of
said New Purim Area at an elevation of 17.0 feet below sea level is at coordinates S. 80103.24 and E. 80672.44. 

EXCLUDING THEREFROM the Omega Area and the Rotbart Area as defined in that agreement of March 3, 1944, among Lincoln
Mining Company, Silver Dollar Mining Company, Polaris Mining Company and Sunshine Mining Company, recorded with the Shoshone County, Idaho, Recorder in Book “I” of Bonds and Agreements at page 498; ALSO EXCLUDING THEREFROM the Chester Area
as defined in that deed among Lincoln Mining Company, Silver Dollar Mining Company, Polaris Mining Company and Sunshine Mining Company of April 11, 1949, recorded with the Shoshone County, Idaho, Recorder in Book “83” of Deeds at page 60;
ALSO EXCLUDING THEREFROM the American Area and Polaris Area as defined in that Agreement of December 9, 1957, among Sunshine Mining Company, Polaris Mining Company, Lincoln Mining Company, Hayden Hill Consolidated Mining Company and Silver
Dollar Mining Company recorded with the Shoshone County, Idaho, Recorder in Book “K” of Agreements at page 396. 
 SUBJECT TO that agreement dated May 7, 1952, among Hayden Hill Consolidated Mining Company, Polaris Mining Company, Silver Summit Mining Company, Lincoln Mining Company and Silver Dollar Mining
Company recorded with the Shoshone County, Idaho Recorder in Book “J” of Bonds and Agreements at page 474. And ALSO SUBJECT TO that certain mineral lease between Hayden Hill Consolidated Mining Company and Stratton Silver Summit, Inc.,
dated March 20, 1934, and recorded with the Shoshone County, Idaho, Recorder in Book “E” of Agreements at page 267 as supplemented by agreements dated May 16, 1938, and May 10, 1947, between Hayden Hill Consolidated Mining
Company and Silver Dollar Mining Company. 

  
 25 

 398123 

 

 Parcel 36: 
 Mineral rights on a parcel of ground conveyed to Hecla Mining Company by Quitclaim Mining Deed dated June 26, 1984, from Sunshine Mining Company recorded in Shoshone County as Instrument No. 311992
referred to as the “GOOD HOPE AREA” contained in the Chester Vein within that area or block of ground in Evolution Mining District in Shoshone County, Idaho, and being more particularly described as follows: 

The Chester Vein within that area or block of ground in Evolution Mining District, Shoshone County, Idaho, which is
bounded by the following-described vertical planes, to wit: 
 On the east by a vertical plane extended downward
indefinitely through the east end line of the Good Hope lode mining claim, U.S. Mineral Survey No. 3292-A, and projected indefinitely both northerly and southerly on a course bearing North 12°7’ East and bearing South 12°7’ West;
and on the west by a vertical plane extended downward indefinitely through the east end line of the McKinley lode mining claim, U.S. Mineral Survey No. 2083, belonging to Chester Mining Company, an Idaho corporation, and projected indefinitely both
northerly and southerly on a course bearing North 12°7’ East and bearing South 12°7’ West, which said block of ground encloses the Chester Vein. 

The Chester Vein is described as that certain vein and fault zone disclosed by Silver Summit Mining Company’s north
crosscut on its 3000-foot level at a point approximately 930 feet northerly from the center of Silver Summit Mining Company’s shaft; and being the same vein and fault zone which was explored both easterly and westerly by Silver Dollar on its
2800-foot level and also on its 1800-foot level and which was also explored by Silver Dollar by drifts on various levels above its said 1800-foot level. 
 Said Chester Vein, as hereinabove identified, shall include said vein and fault zone at all points on its strike and dip, as nearly as its course can be

  
 26 

 
determined, together with all ore embraced within a distance of 200 feet to the south and 200 feet to the north of the center of said vein, both distances to be measured horizontally, provided,
however, that said Chester Vein shall not include any portion of any vein or veins outside the downward northerly or southerly boundaries of the above-described block of ground unless such vein or veins are branches of or offshoots from said Chester
Vein itself. 
 SUBJECT to the terms and provisions of that certain Amended Agreement and Easement dated
January 8, 1979, by and between Sunshine Mining Company and Consolidated Silver Corporation. 
 

 

  
 27Metropolitan Mines Lease Agreement dated as of September 16,2004

 Exhibit 10.7 
 SMC 04 3009 
  

					
		 	AGREEMENT	 	

 Dated: September 16, 2004. 
  

					
	Between:	  	 Metropolitan Mines Corporation, Limited,
 an Idaho Corporation,
	  	“Metropolitan”
			
		  	 and
	  	
			
		  	 Sterling Mining Company,
 an
Idaho Corporation.
	  	“Sterling”

 RECITALS: 
 1. Metropolitan is the owner of certain patented and unpatented mining claims in Shoshone County, Idaho, as more particularly set forth in Exhibit “1” attached hereto. 

2. Sterling has leased the property and assets known as the Sunshine Mine from Sunshine Precious Metals, Inc. and American Reclamation,
Inc. and various leases and agreements held by Sunshine Precious Metals, Inc. were assigned to Sterling in said Lease, including the agreements set forth herein. 
 3. Metropolitan and Sunshine Precious Metals, Inc (then known as Sunshine Mining Company) have for many years been parties to certain agreements concerning the Metropolitan patented and unpatented claims.
Those Agreements are as follows: 
  

	 	a.	Agreement dated January 6, 1941 – attached hereto as Exhibit “A” and by this reference incorporated herein. 

 

	 	b.	Agreement dated January 11, 1941 – attached hereto as Exhibit “B” and by this reference incorporated herein. 

 

	 	c.	Letter Modification dated December 23, 1944 – attached hereto as Exhibit “C” and by this reference incorporated herein. 

 

	 	d.	Memorandum of Agreement dated August 17, 1945 – attached hereto as Exhibit “D” and by this reference incorporated herein. 

Collectively the foregoing Agreements are referred to as the “Prior Agreements”. 

  
 - 1 -

 4. Some uncertainty exists as to the status of the Prior Agreements and Sterling and
Metropolitan desire to reinstate and reaffirm the Prior Agreements and enter into additional agreements for the purpose of exploring, developing and mining the Metropolitan property. 

NOW THEREFORE, in consideration of the mutual covenants and agreements herein set forth and in consideration of the mutual benefits to
accrue and expected to accrue to the parties hereto from this Agreement, the adequacy and sufficiency thereof is hereby acknowledge, the parties agree with each other as follows: 

Section 1. Adoption of Recitals. 
 The recitals set forth above are adopted as part of the Agreement of the parties, and the facts set forth therein are acknowledged and agreed to be true, accurate and complete. 

 

	 	1.1	Specifically, Sterling and Metropolitan reaffirm and reinstate the Prior Agreements. All the terms and provisions set forth in said Prior Agreements shall be and remain
in full force and effect, except as modified herein. 

 Section 2. Prior Agreements. 

 

	 	2.1	The Prior Agreements provide, among other things, the granting of right of ways, the right to search, explore, develop and mine Metropolitan’s property and remove
rock and ore. The Prior Agreements also provided for ownership of ore within the Metropolitan property and further defined that ownership as follows: 

  

	 	2.1.1	Yankee Girl Vein – net proceeds from ore are to be divided sixteen percent (16%) to Metropolitan and eight four percent (84%) to Sunshine (now Sterling
by virtue of the Sterling – Sunshine Lease. 

  

	 	2.1.1.1	The Yankee Girl Vein is defined as anything within two hundred feet (200’) north or south of the Yankee Girl Vein. 

 

	 	2.1.2	Everything south of the Yankee Girl Vein is divided fifty percent (50%) to Metropolitan and fifty percent (50%) to Sunshine (now Sterling – by virtue of
the Sterling – Sunshine Lease). 

  
 - 2 -

	 	2.2	Subsequent to execution of the Prior Agreements, Sunshine reportedly abandoned twenty five (25) of the unpatented claims, the subject of the Prior Agreements.
Sterling relocated said claims and renamed said claims prior to the execution of this Agreement. Sterling shall, as a part of this Agreement convey by appropriate instrument(s) the area previously located by the twenty five (25) unpatented
claims set forth in Exhibit “2” to Metropolitan and said unpatented claims shall become a part of this Agreement and Prior Agreements as if the claims had never been abandoned and subsequently relocated by Sterling.

  

	 	2.2.1	Sterling relocated the twenty five (25) abandoned claims utilizing names and physical locations which are different than those originally utilized by Metropolitan.
Notwithstanding said differences, Sterling will use its best efforts to identify the previously abandoned area, convey the area and said unpatented claims shall be treated as the same claims named in the Prior Agreements. 

 

	 	2.2.1.1	If it is subsequently discovered that the claims relocated by Sterling cannot be accurately matched to the original names, the parties agree the claims set forth in
Exhibit “2” shall, none the less, be treated as set forth in Section 2.2. 

  

	 	2.2.1.2	If any open ground is discovered within the claim group set forth in Exhibit “2”, Sterling shall locate the same and said claim(s) shall be a part of this
Agreement and conveyed to Metropolitan. 

  

	 	2.3	It is intended by Metropolitan that all of its patented and unpatented claims in Shoshone County, Idaho be included in this Agreement. Metropolitan owns a partial
interest in the patented claims set forth in Exhibit “1” Table 2. 

 Section 3. Ores not covered
by Prior Agreements. 
 To the extent the Prior Agreements did not apply to all ores within the Metropolitan property,
Metropolitan and Sterling hereby agree that any ores not so covered shall be treated in the same manner as set forth in the Prior Agreements, that is, divided fifty percent (50%) to Metropolitan and fifty percent (50%) to Sterling, subject
to the provisions in the Prior Agreements for costs and charges. 

  
 - 3 -

	 	3.1	Destroyer Group. Metropolitan and Sterling agree that the claim group previously owned by Metropolitan and known as the Destroyer Group shall also be a part of this
Agreement. Those claims previously consisted of eleven (11) unpatented claims know as Izard, Conner, Burns, Bell, Wadleigh, Moffett, Charrette, Haradon, Halligan, Stevens and Newsome, when owned by Metropolitan. The Destroyer Group had been
abandoned and relocated by Sterling, in much the same manner as the 25 unpatented claims set forth in section 2.2. Said claims are listed in Exhibit “2”. 

 

	 	3.1.1	Sterling shall use its best efforts to determine the number and names of the unpatented claims relocated by Sterling which previously comprised the area known as the
Destroyer Group and convey those unpatented claims to Metropolitan. 

  

	 	3.1.2	The ores within the unpatented claims set forth in this section 3.1, shall be treated as a part of this Agreement, that is, divided fifty percent (50%) to
Metropolitan and fifty percent (50%) to Sterling, subject to the provisions in the Prior Agreements for costs and charges. 

 Section 4. Other Consideration; Advance Royalties. 
  

	 	4.1	As and for additional consideration for entering into this Agreement, Metropolitan and Sterling agree as follows: 

 

	 	4.1.1	Metropolitan shall deliver to Sterling 200,000 shares of Metropolitan restricted common shares; 

 

	 	4.1.2	Commencing on the Effective Date and monthly thereafter, Sterling shall pay to Metropolitan as advance royalty One Thousand Dollars ($1,000.00) per month until such
time as ore is produced from the Metropolitan property. Thereafter, no advance royalties shall be due. 

  

	 	4.1.2.1	All advance royalties paid by Sterling shall be treated as direct cost as provided in paragraph 9 of the Agreement dated August 17, 1945, attached hereto as
Exhibit “D”. 

  
 - 4 -

 Section 5. Claim Maintenance Fee. 

Sterling shall pay all governmental rental fees for unpatented claims assessed against Metropolitan’s ownership in the unpatented
claims beginning with calendar year 2005. 
 Section 6. Effective Date. 

The “Effective Date” shall be the date of execution of this Agreement by Sterling and Metropolitan. 

Section 7. Notices. 
  

	 	7.1	Notices to the parties to this Agreement shall be in writing and shall be effective when delivered, or if mailed, shall be effective on the date following mailing by
certified mail addressed to the party indicated below or at such other address as the party may indicate to other in writing: 

  

			
	Sterling:	  	Sterling Mining Company
		  	411 Coeur d’ Alene Ave., Suite 1-A
		  	Coeur d’ Alene, Idaho 83815
		
	Metropolitan:	  	Metropolitan Mines Corporation, Limited
		  	P.O. Box 469
		  	Wallace, ID 83873

 Section 8. Miscellaneous. 

 

	 	8.1	This Agreement shall be governed and interpreted in accordance with the laws of the State of Idaho. 

 

	 	8.2	This Agreement shall be executed in one or more counterparts, each of which shall constitute one and the same agreement. 

 

	 	8.3	The headings or captions contained in each section of this lease are for ease of reference and convenience only, and shall not be considered in connection with the
construction of this Agreement or any section hereof. 

  
 - 5 -

 IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year shown
above by the undersigned thereunto duly authorized. 
  

			
	STERLING MINING COMPANY, INC
		
	By:	 	 /s/ Raymond De Motte

		 	Raymond De Motte , President
		 	Printed Name and Title

  

	
	ATTEST:
	

	Printed Name and Title

  

			
	METROPOLITAN MINES CORPORATION, LIMITED
		
	By:	 	 /s/ Dale B. Lavigne

		 	Dale B. Lavigne, President

  

	
	ATTEST:
	
	 /s/ Dennis O’Brien

	Dennis O’Brien, Secretary

  

			
	State of Idaho	  	)
		  	) ss.
	County of Shoshone	  	)

 On this 15th day of September 2004, before me, a Notary Public in and for the State of Idaho, personally appeared Raymond Demotte
and Carol Stephan, President and Secretary, respectively, of Sterling Mining Company, the corporation that executed the within and foregoing instrument, and acknowledged the said instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and each on oath stated that he/she was authorized to execute said instrument. 

  
 - 6 -

 SUBSCRIBED AND SWORN to before me this 15th day of September, 2004. 

 
  

			
	State of Idaho	  	)
		  	) ss.
	County of Shoshone	  	)

 On this 16th day of September, 2004, before me, a Notary Public in and for the State of Idaho, personally appeared Dale B. Lavigne
and Dennis O’Brien, President and Secretary respectively, of Metropolitan Mines Corporation, Limited, the corporation that executed the within and foregoing instrument, and acknowledged the said instrument, and acknowledged the said instrument
to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and each on oath stated that he was authorized to execute said instrument. 

SUBSCRIBED AND SWORN to before me this 16th day of September, 2004. 
  

			
	

	 	 Sharon L. Arthur
 Notary Public in and for the State of Idaho,
 Residing at: Mullan, Idaho

My Commission Expires: 12-22-09

  
 - 7 -

 Metropolitan Mining Company Limited Land Ownership 

Table 1: Metropolitan’s unpatented mineral lode claims. 

 

									
	Serial No	  	Claim Name/Number	  	County	  	Mr Twn	  	Rng Sec
	IMC22329	  	JOHN G	  	SHOSHONE	  	08 0480N	  	0030E 023
	IMC22332	  	LAUREL	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22358	  	GRANT	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22359	  	HUDSON	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22360	  	KING	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22361	  	LORA NO 1	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22362	  	LORA NO 2	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22365	  	MADALENE	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22369	  	SAXON	  	SHOSHONE	  	08 0480N	  	0030E 023
	IMC22373	  	STEDEBAKER	  	SHOSHONE	  	08 0480N	  	0030E 023
	IMC22374	  	TOUGH GOING	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22376	  	UTICA	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22377	  	WAYNE	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC22379	  	NI WOT	  	SHOSHONE	  	08 0480N	  	0030E 022
	1MC22380	  	BOSTON FRACTION	  	SHOSHONE	  	08 0480N	  	0030E 022

 Table 2: Metropolitan’s Patented mineral lode claims, 

only partially owned by Metropolitan in Shoshone County 

 

			
	Name	  	Survey Number
	 Gretchen
	  	3272
	 Plover
	  	3272

 Exhibit “1” 

 Unpatented claims to be conveyed to Metropolitan, to be subject to the provisions of the Agreement:

  

									
	Serial No	  	Serial No	  	County	  	Mr Twn	  	Rng Sec
	IMC186438	  	COMNER	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186445	  	PEARL	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186436	  	IZARD	  	SHOSHONE	  	08 0480N	  	0030E 028
	IMC186437	  	IZARD FR.	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186441	  	BURNS	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186442	  	BELL	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186091	  	MET #2	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC 186092	  	MET #1	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186093	  	MET #5	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC185847	  	MET #4	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC185848	  	MET #3	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186088	  	MET #8	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186089	  	MET#6	  	SHOSHONE	  	08 04S0N	  	0030E 022
	IMC186090	  	MET #7	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186094	  	MET #10	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186095	  	MET #11	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186451	  	WADLEIGH	  	SHOSHONE	  	08 0480N	  	0030E 028
	IMC186452	  	WADLEIGH FR.	  	SHOSHONE	  	08 0480N	  	0030E 027
	IMC186482	  	MET #1 FR.	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186486	  	MET #13 FR.	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186484	  	MET #12	  	SHOSHONE	  	08 0480N	  	0030E 028
	IMC186485	  	MET #13	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186487	  	MET #14	  	SHOSHONE	  	08 0480N	  	0030E 021
	IMC186900	  	METROPOLITAN 2 FRACT	  	SHOSHONE	  	08 0480N	  	0030E 022
	IMC186901	  	METROPOLITAN	  	SHOSHONE	  	08 0480N	  	0030E 022

 Claims, in addition to the above which were previously a part of the Destroyer Group, to be conveyed to Metropolitan,
to be subject to the provisions of the Agreement: 
  

					
	IMC186453	  	NEWSOME (ptn.)	  	
	1MC186455	  	STEVENS (ptn.)	  	
	IMC186456	  	MALLIGAN (ptn.) (was previously Halligan)	  	
	IMC186470	  	CRESENT # 8 (ptn.)	  	
	IMC186484	  	MET #12 (ptn. of new claim)	  	
	IMC186487	  	MET #14 (ptn. of new claim)	  	
	IMC186488	  	MET #15 (ptn. of new claim)	  	
	IMC186489	  	MET #16 (ptn. of new claim)	  	
	IMC 186490	  	MET #17 (ptn. of new claim)	  	
	IMC186491	  	MET#18 (ptn. of new claim)	  	
	IMC186469	  	CRESENT #1 (ptn.)	  	
	IMC186881	  	COLBERT 2 (ptn.)	  	

 Exhibit “2”

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