Document:

Exhibit 10.2 Amended and Restated Option and JV Agreement

    
      

    

    

    VIA
      FAX (604) 689-1817

    

    

    

    April
      15,
      2006

    

    Uranium
      Power Corp.

    525-999
      West Hastings Street

    Vancouver,
      British Columbia V6C 2W2

    Attention:
      Rahoul Sharan, President

    

    SUBJECT: AMENDED
      AND RESTATED OPTION AND JOINT VENTURE AGREEMENT - SAHARA MINE PROPERTY,

    EMERY
      COUNTY, UTAH

    

    Gentlemen:
      

    

    This
      Amended and Restated Option and Joint Venture Agreement (this “Amended and
      Restated Agreement”) sets forth the terms and conditions of an option and joint
      venture (“Venture”) by and between URANIUM GROUP LLC, a Utah limited liability
      company of which Scott J. Hill is the Manager, 3975 West 8010 South, West
      Jordan, Utah, USA (”Uranium Group”) and URANIUM POWER CORP., a British Columbia
      corporation (“UPC”). This Amended and Restated Agreement incorporates the
      amendments agreed to between Uranium Group and UPC with respect to the Option
      and Joint Venture Agreement dated as of August 25, 2005 (the “Effective Date”)
      between Uranium Group and UPC (the “Agreement”) and restates the Agreement in
      its entirety. This Amended and Restated Agreement relates to those certain
      rights and interests owned or controlled by Uranium Group, more specifically
      described in Exhibit “A” hereto (the “Property”). Uranium Group or UPC are
      sometimes hereinafter individually referred to as “Party” or collectively as
“Parties.” The interests of Uranium Group or UPC with respect to the Property
      shall individually hereinafter be referred to as a “Participating Interest” or
      collectively “Participating Interests.” As used in this Amended and Restated
      Agreement: (1) the term “Affiliate” means any person, partnership, joint
      venture, corporation or other form of enterprise which directly or indirectly
      controls, is controlled by, or is under common control with, a Party, with
      “control” meaning the possession, directly or indirectly, of the power to direct
      or cause direction of management and policies through ownership of voting
      securities, contract, voting trust or otherwise; (2) the term “Manager” means
      the entity appointed pursuant to Section 7.4.1; and (3) the following terms
      have
      the meanings respectively defined in the following referenced Sections:
“Additional Participating Interest” - Section 3.4; “Amended Effective Date” -
      Section 9.23; “Cash Call” - Section 8.3; “Earn-In-“ - Section 3.1; “Force
      Majeure” - Section 9.6; “Management Fee” - Section 9.17; “Minimum Exploration
      Expenditures” - Section 3.1(b); ; “Initial Option” - Section 3.1; “Additional
      Option” - Section 3.4; “Notice Date” - Section 3.4; “Products” - Section 9.1;
“Program and Budget” - Section 8.1; and “Receiving Party” - Section
      9.5.2.

    
      
         

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    Subject
      to any approval required as provided in Section 9.23, this Amended and Restated
      Agreement, when signed by both Parties, shall constitute a legally binding
      agreement between Uranium Group and UPC, and shall be effective on the “Amended
      Effective Date,” as defined in such Section. 

    

    TERMS

    

    	1.  	
            TITLE
              MATTERS

          

    

    	1.1  	
            Uranium
              Group’s Representations and Warranties.
              Uranium Group makes the following representations and warranties:
              

          

    

    1.1.1 With
      respect to unpatented mining claims included in the Property, except as provided
      in Exhibit A, and subject to the paramount title of the United States, as of
      the
      Effective Date: (i) the unpatented mining claims were properly laid out and
      monumented; (ii) all required location work and validation work was properly
      performed; (iii) location notices and certificates were properly recorded and
      filed with appropriate governmental agencies; (iv) all assessment work required
      to hold the unpatented mining claims has been performed in a manner consistent
      with that required through the assessment year ending September 1, 2005; (v)
      all
      payments in lieu of assessment work pursuant to 106 Stat. 1374 (1992) and 107
      Stat. 312 (1993) and necessary to hold the unpatented mining claims through
      the
      assessment year ending September 1, 2005 have been made; (vi) all affidavits
      of
      assessment work and other filings required to maintain the unpatented mining
      claims in good standing have been properly and timely recorded or filed with
      appropriate governmental agencies; and (vi) the unpatented mining claims are
      free and clear of defects, liens and encumbrances arising by, through or under
      Uranium Group. 

    

    1.1.2  As
      of the
      Effective Date, the underlying leases with respect to that portion of the
“Property” which has been leased as defined in Exhibit “A” are in good
      standing.

    

    1.1.3  That
      to
      Uranium Group’s knowledge, there are no pending or threatened actions, suits,
      claims or proceedings with respect to the Property.

    

    1.1.4  Uranium
      Group has the full right, power and capacity to enter into this Amended and
      Restated Agreement upon the terms and conditions herein contained.

     

    1.1.5  That
      it
      is a company duly organized and in good standing in its jurisdiction of
      organization and that it is qualified to do business and is in good standing
      in
      those jurisdictions where necessary in order to carry out the purposes of this
      Amended and Restated Agreement

     

     

    
      
        
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    1.1.6  That
      it
      will indemnify, defend and hold harmless UPC, its shareholders, directors,
      officers and employees of and from any liabilities arising as a direct result
      of
      Uranium Group’s activities on the Property prior to the Effective
      Date.

    

    1.2 UPC’s
      Representations and Warranties.
      UPC
      represents and warrants that UPC has the full right, power and capacity to
      enter
      into this Amended and Restated Agreement upon the terms and conditions herein
      contained.

    

    1.2.1
      That it is a corporation duly incorporated and in good standing in its
      jurisdiction of incorporation and that it will incorporate a US subsidiary
      with
      the intent that this Amended and Restated Agreement be assigned to a US
      subsidiary which US subsidiary will be qualified to do business in the State
      of
      Utah and the United States of America where necessary in order to carry out
      the
      purposes of this Amended and Restated Agreement

    

    1.2.2
      Subject to the provisions of this Amended and Restated Agreement, UPC assumes
      responsibility for all operations on the Properties performed by it or its
      Affiliates on or after the Effective Date and specifically shall indemnify,
      defend and hold harmless Uranium Group and its Manager and Members for and
      on
      account of any liability that may be asserted against the same as a result
      of
      any action, suit, demand or proceeding commenced or asserted by any person
      or
      entity (including without limitation any governmental entity), arising out
      of or
      related to such operations including without limitation any violation of any
      environmental law or any law related to human health or safety. UPC further
      agrees to maintain reasonable levels of insurance, commensurate with industry
      practice, with respect to these activities and to include Uranium Group as
      an
      additional insured on the general liability and other insurance policies it
      maintains with respect to the Properties to provide insurance coverage for
      claims that occur while Uranium Group has a working interest during the term
      of
      this Amended and Restated Agreement, even if the claim is brought after the
      Uranium Group no longer has a working interest. 

    

    1.2.3
      That is will perform all obligations hereunder in a good and minerlike fashion
      and that it will make all payments and do such other things as are necessary
      to
      maintain all mining claims, leases and other rights constituting the Property
      and to keep the Property free and clear of liens and encumbrances during the
      Earn-In Period and, following completion of the Earn-In. 

    

    2. TERM

    

    The
      term
      of the Venture shall be twenty (20) years from the Effective Date and for so
      long thereafter as Products are being produced from the Property or the Property
      is being reclaimed or remediated, unless the Venture is earlier terminated
      as
      provided herein.

    

    
      
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    3. EARN-IN

    

    3.1  Initial
      Option.
      Uranium
      Group hereby grants to UPC the exclusive and irrevocable option (the “Initial
      Option”), exercisable at UPC’s sole discretion, to earn-in and vest with a
      seventy percent (70%) undivided Participating Interest in the Venture and the
      Property (the “Initial Participating Interest”). In order to maintain the
      Initial Option, UPC must, on a timely basis, (a) make to Uranium Group the
      payments set out in Section 3.1.1 (the “Payments”), (b) perform or incur the
      exploration expenditures set out in Section 3.1.2 (the “Exploration
      Expenditures”), (c) deliver to Uranium Group shares in UPC as set out in Section
      3.1.3 (the “Share Deliveries”), and (d) deliver to Uranium Group a document with
      respect to the Property that satisfies the requirements of Canadian National
      Instrument 43-1-1 “Standards of Disclosure of Mineral Projects” (collectively,
      the “Initial Earn-In”). UPC may make the payments, incur the expenditures or
      deliver the shares on an accelerated basis. 

    

    3.1.1 The
      Payments due annually to the Uranium Group are as follows:

    

    
      	
              Due
                Date

            	
              Annual
                Payment Amount

            
	 	 
	
              December
                31, 2006

            	
              US$146,250

            
	
              December
                31, 2007

            	
              US$146,250

            
	
              December
                31, 2008

            	
              US$146,250

            
	
              December
                31, 2009

            	
              US$146,250

            
	 	 
	
              Total
                Payments

            	
              US$585,000

            

    

    

    3.1.2 The
      annual amount of Exploration Expenditures required to be performed or incurred
      by UPC is as follows; provided that any amount in excess of the required
      cumulative amount in any year will be carried over to the obligation for the
      following year:

    

    
      	
              Due
                Date

            	
              Cumulative
                Expenditure Amount

            
	 	 
	
              December
                31, 2006

            	
              US$341,250

            
	
              December
                31, 2007

            	
              US$682,500

            
	
              December
                31, 2008

            	
              US$1,023,750

            
	
              December
                31, 2009

            	
              US$1,365,000

            
	 	 
	
              Total
                Expenditures

            	
              US$1,365,000

            

    

    

    
      
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    3.1.3 The
      Share
      Deliveries to be made annually to the Uranium Group are as follows:

    

    
      	
              Due
                Date

            	
              Annual
                Share Issuance Amount

            
	 	 
	
              December
                31, 2006

            	
              50,000
                shares

            
	
              December
                31, 2007

            	
              50,000
                shares

            
	
              December
                31, 2008

            	
              50,000
                shares

            
	
              December
                31, 2009

            	
              50,000
                shares

            
	 	 
	
              Total
                Shares

            	
              200,000
                shares

            

    

    

    3.2 Deceleration
      of the Earn-In.
      In the
      event the long term price of uranium oxide (as reported by Ux Consulting Company
      LLC, or a reliable replacement source if such company discontinues reporting)
      is
      below US$20.00 for four consecutive weeks in any calendar year, the obligation
      of UPC to make the payments, perform or incur exploration expenditures and
      to
      deliver shares will be reduced to one-half of the amount that would otherwise
      have been required in that calendar year and the balance of the obligation
      will
      be deferred to the year ending December 31, 2010. In the event that the long
      term price of uranium oxide continues below, or having recovered again falls
      below, US$20 in one or more subsequent years, the balance of the obligation
      will
      be deferred to the next year or years, as appropriate, after 2010. 

    

    3.3 Exercise
      of the Initial Option.
      The
      Initial Option may be exercised by UPC at any time after all of the obligations
      of UPC set out in Sections 3.1.1, 3.1.2 and 3.1.3 have been made, incurred
      and
      delivered on a timely basis, but no later than January 30, 2010 unless the
      provisions of Section 3.2 have been invoked (in which case such date will be
      extended to 30 days following the date required for completion of such
      obligations under Section 3.2). The Initial Option shall be exercised by
      delivering to Uranium Group a notice that UPC is exercising the Initial Option
      with respect to all or any portion of the Property. If the Option is being
      exercised with respect to less than all of the Property, a clear identification
      of the portion with respect to which the Initial Option is being exercised
      shall
      be included in the notice. In addition, at the time UPC exercises the Initial
      Option, it shall notify Uranium Group of its intent to maintain the Additional
      Option by undertaking the obligations set out in Section 3.4. 

    

    3.4 Additional
      Option.
      Uranium
      Group also hereby grants to UPC the exclusive and irrevocable option (the
“Additional Option”), exercisable at UPC’s sole discretion, to earn-in and vest
      with an additional fifteen percent (15%) undivided Participating Interest in
      the
      Venture and the Property (except for any portion of the Property for which
      the
      Initial Option was not exercised) (the “Additional Participating Interest”). In
      order to maintain the Additional Option, (a) UPC must have exercised the Initial
      Option in a timely manner, (b) notified Uranium Group within 30 days of the
      exercise of the Initial Option of its intent to maintain the Additional Option
      (the “Notice Date”), and (c) UPC must, on a timely basis, (i) perform or incur
      an additional US$700,000 in exploration and/or development expenditures within
      360 days of the Notice Date, (ii) pay to Uranium

    
      
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    Group
      US$300,000 within 30 days of the Notice Date, and (iii) deliver to Uranium
      Group
      400,000 shares of UPC stock within 30 days of the Notice Date (the “Additional
      Earn-In”).

    

    3.5 Exercise
      of the Additional Option.
      The
      Additional Option may be exercised by UPC at any time after all of the
      obligations of UPC set out in Section 3.4 have been performed, made, incurred
      and delivered as required by Section 3.4, but no later than 390 days after
      the
      Notice Date. The Additional Option shall be exercised by delivering to Uranium
      Group a notice that UPC is exercising the Additional Option, which must be
      exercised if at all with respect to all of the Property except for any portion
      of the Property for which the Initial Option was not exercised. 

    

    4. CONTRIBUTIONS.

    

    4.1 Initial
      Contribution.
      

    

    4.1.1 
      Upon
      completion of the Initial Earn-In and exercise of the Initial Option, UPC’s
      Initial Contribution shall be deemed to be US$1,950,000 and the Uranium Group’s
      Initial Contribution shall be deemed to be US$835,714 so that the total deemed
      Initial Contribution of both Parties to the Venture is US$2,785,714

    

    4.1.2 
      Upon
      completion of the Additional Earn-In and exercise of the Additional Option,
      UPC’s Initial Contribution shall be deemed to be US$2,950,000 and the Uranium
      Group’s Initial Contribution shall be deemed to be US$520,588 so that the total
      deemed Initial Contribution of both Parties to the Venture is
      US$3,470,588

    

    4.2 Funding
      During the Interim Period.
      If UPC
      exercises the Initial Option, but does not notify Uranium Group of its intent
      to
      maintain the Additional Option as set out in Section 3.4(b) (or notifies Uranium
      Group that it does not intend to maintain the Additional Option), the Parties
      shall fund operations as provided in Section 4.3. If UPC exercises the Initial
      Option, and notifies Uranium Group of its intent to maintain the Additional
      Option as set out in Section 3.4(b), until such time as UPC notifies Uranium
      Group that it does not intend to maintain the Additional Option by continuing
      to
      undertake the obligations set out in Section 3.4 or UPC exercises the Additional
      Option, UPC shall fund 85% of all Programs and Budgets and Uranium Group shall
      fund 15% of all Programs and Budgets, subject to the right of Uranium Group
      to
      voluntarily reduce its Participating Interest as provided in Section
      5.2.

    

    4.3 Regular
      Contributions.
      Prior
      to completion of Initial Earn-In, UPC shall be solely responsible for funding
      all Programs and Budgets and for maintaining the Property. Subsequent to the
      Initial Earn-In, except as provided in Section 4.2, the Parties shall be
      obligated to contribute funds to Programs and Budgets in proportion to their
      respective Participating Interests. UPC or Uranium Group may, by notice within
      fifteen (15) days after the final vote approving a Program and Budget, elect
      to
      limit its contribution to a Program and Budget to some lesser amount than its
      respective Participating Interest or

    
      
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    not
      at
      all, in which case the Participating Interest of the non-contributing Party
      shall be diluted as prescribed in Section 5.2; provided, however, that with
      respect to a Program and Budget that first calls for commencement of development
      of a mine on the Property, Uranium Group shall have ninety (90) days after
      the
      final vote approving such Program and Budget in which to make its election.
      If a
      Party elects to limit its contribution pursuant to this Section, the other
      Party
      may contribute the non-contributed amount in whole or in part for its own
      behalf.

    

    4.4 Revolving
      Loan.
      UPC
      agrees to make available US$1,000,000 to Uranium Group a revolving loan that
      Uranium Group can draw upon for up to three years following completion of the
      Initial Earn-In to fund its obligations under this Amended and Restated
      Agreement. The outstanding balance of any amounts borrowed from such fund shall
      bear simple interest of 8.0% per annum from the date borrowed until repaid,
      whether during or after such three year period. Uranium Group may repay any
      amounts borrowed from any source but must allocate 90.0% of any amounts
      distributed to it from sale of products produced from the Properties.

    

    5. PARTICIPATING
      INTERESTS.

    

    5.1 Initial
      Participating Interests.
      

    

    5.1.1 
      Upon
      completion of Initial Earn-In and exercise of the Initial Option, the Parties
      shall have the following Initial Participating Interests: UPC - 70% and Uranium
      Group - 30%; provided that these respective percentages may subsequently be
      adjusted pursuant to Section 5.2.

    

    5.1.2 
      Upon
      completion of Additional Earn-In and exercise of the Additional Option, the
      Parties shall have the following Initial Participating Interests: UPC - 85%
      and
      Uranium Group - 15%; provided that these respective percentages may subsequently
      be adjusted pursuant to Section 5.2.

    

    5.2  Voluntary
      Reduction in Participation.
      If a
      Party elects to contribute to a Program and Budget some lesser amount than
      its
      respective Participating Interest, or not at all pursuant to Section 4.2, the
      respective Participating Interests of the Parties shall be recalculated at
      the
      time of election by dividing; (i) the sum of (a) the deemed value of the Party’s
      Initial Contribution under Section 4.1, (b) the total of all of the Party’s
      Regular Contributions under Section 4.2, and (c) the amount, if any, the Party
      elects to contribute to a Program and Budget; by (ii) the sum of (a), (b) and
      (c) above for both Parties, and then multiplying the result by one hundred.
      Notwithstanding the foregoing, if a Party makes such election and the Manager
      does not spend at least 85% of the amount budgeted in such Program and Budget,
      the electing Party may pay in its proportionate share of the amount actually
      spent and have its interest restored.

    

    5.3  Default
      in Making Contributions.
      Both of
      the Parties hereby grant to the other a lien on all its rights upon any and
      all
      mineral production which may be obtained from the

    
      
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    Property
      to secure its performance of any obligation hereunder. Each Party agrees to
      execute in due course and from time to time any and all other additional
      documents which the other Party may require as evidence of such lien. If a
      Party
      defaults in making a contribution or Cash Call required by a Program and Budget,
      the non-defaulting Party may elect to have the defaulting Party’s Participating
      Interest reduced according to the formula set forth in Section 5.2.

    

    5.4 Elimination
      of Minority Interest.
      Upon
      the reduction of a Party’s Participating Interest to ten percent (10%) or less
      pursuant to Section 5.2 or 5.3, the Party shall be deemed to have withdrawn
      from
      the Venture and shall be deemed to have elected to permanently convert its
      Participating Interest to a 10% Net Profits Interest or a 2% Gross Income
      Royalty as detailed in Exhibit “C”. Upon such election, the withdrawing Party
      shall convey its Participating Interest to the non-withdrawing Party and
      thereafter the withdrawing Party shall have no right, title or interest under
      this Amended and Restated Agreement except for the right to receive the Net
      Profits Interest or Gross Income Royalty in accordance with the terms of this
      Section and Exhibit “C”. A determination as to whether the withdrawing Party
      elects to receive a 2% Gross Income Royalty or a 10% Net Profits Interest shall
      be made initially within thirty (30) days of the date of withdrawal. Each year
      thereafter, the withdrawing Party shall notify the non-withdrawing Party no
      later than December 1 of such year if it elects to receive the Gross Income
      Royalty or the Net Profits Interest for the following year, which election
      will
      be binding for the following year. The non-withdrawing Party shall provide
      to
      the withdrawing Party a current calculation of both the Gross Income Royalty
      and
      the Net Profits Interest within 30 days of the end of each calendar quarter.
      In
      the event no such election is made, the withdrawing Party shall be deemed to
      have made the then current election. 

    

    5.5
      Continuing
      Liabilities Upon Adjustments of Participating Interests.
      Any
      reduction or elimination of a Party’s Participating Interest shall not relieve
      such Party of its share of any liability, whether it accrues before or after
      such reduction, arising out of operations conducted hereunder prior to such
      reduction or elimination.

    

    6. HOLDING
      OF TITLE

    

    6.1  Prior
      to Earn-In.
      Until
      such time as UPC has completed the Initial Earn-In, title to the Property shall
      be held in Uranium Group’s name, subject to the terms and provisions of this
      Amended and Restated Agreement.

    

    6.2  Subsequent
      to Earn-In.
      At such
      time as UPC has completed the Initial Earn-In or the Additional Earn-In, or
      any
      time thereafter, Uranium Group shall, upon UPC’s request, by instruments
      acceptable to counsel for the Parties, convey title to UPC’s proportionate share
      of the Property to UPC and each Party shall hold its interest as tenants in
      common for the benefit of the Venture.

    
      
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    7. MANAGEMENT

    

    7.1 Management
      Committee.
      A
      management committee shall be formed consisting of two (2) designated
      representatives of UPC and one (1) designated representative of Uranium Group.
      The votes of each Party shall be in proportion to its Participating Interest,
      and except as otherwise provided, approval of Parties holding in excess of
      sixty-six percent (66%) shall be required in order to make a decision or approve
      a program and budget, provided, however, when voting on proposed programs and
      budgets, the Manager shall first consider the legitimate concerns of the
      minority party. For purposes of voting and this Section 7.1, prior to Initial
      Earn-In it shall be deemed that UPC holds a fifty-one percent (51%)
      Participating Interest and Uranium Group holds a forty-nine percent (49%)
      Participating Interest. 

    

    7.2 Unanimous
      Requirement.
      Before
      completion of the Earn-In, the unanimous vote of the Parties shall be required
      in order to make a decision or approve the following matters; (i) the creation
      of any encumbrance on the Property or the creation of any indebtedness that
      is
      an obligation of the Venture or that may create a lien on the Property, (ii)
      the
      transfer or disposition of any part of the Property or (iii) commencement of
      any
      litigation in the name of Uranium Group or the Venture. Following completion
      of
      the Earn-In, the unanimous vote of the Parties shall be required (i) to encumber
      the interests of all Parties in the Property or the Venture, (ii) for the
      transfer or disposition of any single major physical asset which would be
      fundamental to the operation of a mine on the Property having a fair market
      value of greater than One Million Dollars (US$1,000,000), (iii) for the
      commencement of the liquidation of the Venture, or (iv) for modification of
      this
      Amended and Restated Agreement.

    

    7.4 Manager

    

    7.4.1 Appointment.
      The
      Parties hereby appoint UPC or its designee as the Manager with overall
      management responsibility for operations conducted prior to Earn-In and pursuant
      to the Venture. UPC shall be the Manager so long as UPC maintains a
      Participating Interest equal to or greater than that of the other Party, unless
      UPC fails to perform a material obligation required under this Amended and
      Restated Agreement. At such time as UPC’s Participating Interest is not equal to
      or greater than that of the other Party, the Party having the larger
      Participating Interest shall be entitled to name a new Manager. Uranium Group
      hereby grants to UPC, as the Manager, the exclusive right to enjoy all of
      Uranium Group’s rights in the Property during the period of the
      Option.

    

    7.4.2 Reports
      and Statements.
      The
      Manager shall distribute detailed statements, work progress reports and other
      data obtained pursuant to all operations hereunder to the other Party on a
      quarterly basis (by the 20th
      day
      following each calendar quarter) and additionally as reasonably requested by
      the
      non-manager.

     

     

    
      
        
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    7.4.3  General
      Information.
      The
      Manager shall keep the minority Participating Interest holder informed of all
      Venture business and shall consider its legitimate concerns and requests.

    

    
      	
              8.

            	
              PROGRAMS
                AND BUDGETS

            

    

    

    8.1 Proposed
      Programs and Budgets

    

    8.1.1 Proposed
      programs and budgets shall be prepared by the Manager for six (6) months or
      any
      longer period not to exceed a period of twelve (12) months. At least forty-five
      (45) days prior to the expiration of a Program and Budget, the Manager shall
      prepare and submit to the other Party a proposed program and budget for the
      succeeding period. Such proposed program and budget shall be in a form and
      degree of detail sufficient to allow the non-manager to make a reasonably
      informed determination concerning participation therein. Within thirty (30)
      days
      after submission of a proposed program and budget, the Management Committee
      shall approve or disapprove of the proposed program and budget. A program and
      budget so approved is herein referred to as a “Program and Budget”.

    

    8.1.2 Subsequent
      to Earn-In, any Party may propose a Program and Budget to the management
      committee calling for a designated portion of the Property to be explored,
      developed, mined or further evaluated for commercial production. The Party
      so
      proposing shall vote in favor of the proposed Program and Budget and the
      provisions of Section 7.1 shall apply.

    

    8.2 Budget
      Overruns; Program Changes.
      The
      Manager shall immediately notify the management committee of any material
      departure from a Program and Budget. The Party or Parties responsible for
      funding a Program and Budget shall be responsible, in proportion to their
      respective Participating Interests, for emergency expenditures made during
      the
      term of the Program and Budget and in good faith deemed necessary by the Manager
      to protect the Property or the Venture or its assets. Except in the case of
      such
      emergency or management committee authorization, if the Manager exceeds a Budget
      by more than ten percent (10%), then the excess over ten percent (10%) shall
      be
      for the sole account of the Manager and such excess shall not be included in
      the
      calculations of the Participating Interests. Budget overruns of ten percent
      (10%) or less shall be borne by the Parties in proportion to their respective
      Participating Interests as of the time the overrun occurs.

    

    8.3 Cash
      Calls.
      On the
      basis of a Program and Budget, the Manager may submit to the other Party prior
      to the last day of each month, a billing for estimated cash requirements for
      the
      next three (3) months (“Cash Call”). Within fifteen (15) days after receipt of
      each Cash Call, each Party shall advance to the Manager its proportionate share
      of the estimated amount, net of any amount remaining from previous Cash Calls
      made in prior months. The Manager may maintain a cash balance approximately
      equal to the rate

    
      
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    of
      disbursement for up to three (3) months in a segregated, interest bearing
      account established solely for the benefit of the Venture.

    

    
      	
              9.

            	
              MISCELLANEOUS
                PROVISIONS

            

    

    

    9.1 Processing
      of Ore and Sale of Products.
      The
      Manager shall use their best efforts to arrange for all ores produced from
      the
      Property to be processed at a mill or other facility to produce concentrates
      containing uranium oxide and any other commercially valuable minerals contained
      in such ores (“Products”). The Manager shall sell Products on behalf of the
      Venture on an arms’ length basis and deliver all Revenues received from the sale
      of such Products to the Parties in proportion to their Participating Interests
      on a monthly basis. For purposes of this provision, “Revenues” shall mean the
      total amounts received by the Manager from the sale of Products produced from
      the Property at the point of sale, less all selling costs, provided such sales
      are arm’s length transactions, and provided further that sales to Affiliates of
      the Manager are valued at the fair market value of the Products sold.

    

    9.2 Relationship
      of the Parties.
      The
      rights, duties, and obligations of the Parties hereunder shall be several and
      not joint or collective. Each Party shall be responsible only for its
      obligations as herein set out and shall be liable only for its share of the
      costs and expenses as provided herein. It is expressly agreed that it is not
      the
      purpose or intent of this Amended and Restated Agreement, nor shall the same
      be
      construed as creating any mining, commercial or other partnership. Except as
      provided in Section 9.1, this Amended and Restated Agreement shall not be
      construed to provide for any joint marketing of ores, concentrates, or other
      substances produced from the Property nor to create any fiduciary relationship
      between the Parties.

    

    9.3 Dispute
      Resolution.
      Any
      action for any claim arising under or in connection with this Amended and
      Restated Agreement shall be brought and determined in a state or federal court
      located in Salt Lake City, Utah.

    

    9.4 Transfer
      of Interest.
       Any
      Party
      may freely transfer its interest in the Property, this Amended and Restated
      Agreement or the Venture as long as such transferee has the ability to perform
      and agrees in writing to be bound by the terms and conditions of this Amended
      and Restated Agreement. 

    

    9.5 Termination.
      This
      Amended and Restated Agreement shall terminate on the first occurrence of any
      of
      the following events:

    

    9.5.1 Withdrawal
      by UPC prior to completion of the Initial Earn-In, which shall occur if (1)
      UPC
      gives thirty (30) days prior written notice of such withdrawal; or (2) UPC
      fails
      to satisfy the requirements of the Initial Earn-In in the manner set forth
      in
      Section 3.1; or (3) the Initial Earn-In is not completed within the period
      specified in Section 3.1. Upon such withdrawal, UPC shall have no further right,
      title or interest in the Property and the Venture, but shall remain liable
      (a)
      for any

    
      
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    obligations
      arising out of operations conducted prior to its withdrawal, and (b) for
      governmental holding, lease rental payments and claim maintenance fees or
      payments to third parties required to maintain the Property that accrue within
      30 days following withdrawal, except that, if UPC withdraws after July 1 of
      any
      year it shall be responsible for the claim maintenance fees due on September
      1
      of that year, and (c) UPC shall be required to pay to the Uranium Group any
      portion of the initial US$341,250 work commitment not actually expended on
      or
      for the benefit of the Property. Upon withdrawal, UPC shall execute and deliver
      to Uranium Group a release and any other documents necessary to terminate its
      interest in the Property and the Venture, free and clear of all liens and
      encumbrances created by, through or under UPC, along with all data with respect
      to the Property provided to UPC by the Uranium Group or otherwise developed
      or
      acquired by UPC prior to withdrawal. UPC shall deliver to Uranium Group all
      factual data generated by UPC from the Property during the term of this Amended
      and Restated Agreement.

    

    9.5.2 Withdrawal
      by either Party following the Initial Earn-In, in which case the withdrawing
      Party shall have no further right, title or interest in the Venture (except
      for
      a royalty described in Section 5.4) and shall transfer at no cost to the other
      Party all of its Participating Interest, but shall remain liable for any
      obligations arising out of operations conducted prior to its
      withdrawal.

    

    9.5.3 By
      mutual
      agreement of the Parties.

    

    9.6 Force
      Majeure.
      When an
      event of Force Majeure occurs, a Party shall promptly notify the other Party
      describing the nature of the event, and the effects thereof. If the Party’s
      compliance with its obligations under this Amended and Restated Agreement is
      prevented by Force Majeure, the Party’s obligations shall be suspended to the
      extent and for the period that performance is prevented by Force Majeure “Force
      Majeure” means any cause beyond a Party’s reasonable control, including, without
      limitations, the inability or unusual delay in obtaining any license, permit
      or
      other authorization that may be required to conduct operations; unusual climatic
      conditions; war, civil insurrection, labor disputes, acts of government, surface
      owner disputes, lack of availability of contractors or equipment at reasonable
      prices, or like causes not subject to a Party’s control.

    

    9.7 Data.
      During
      the term hereof and during the Venture, a hard copy or suitable electronic
      file
      of all data and information obtained by or in the possession of either Party
      with respect to the Property shall be made available to the other Party upon
      its
      request. Data shall include information related to decisions made by the Manager
      with respect to the Venture and all invoices and other accounting records
      necessary to substantiate UPC’s compliance with the Earn-In obligations set out
      above and all financial records maintained by the Manager with respect to
      Programs and Budgets adopted by the Venture. 

    

    
      
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    9.8 Inspection.
      The
      non-managers’ agents, duly authorized in writing, may enter upon the ground
      covered by the Property to inspect the workings thereon at their sole risk
      and
      expense and at such times and in such a manner as shall not unreasonably hinder
      or interrupt the operation and activities hereunder. Personnel involved in
      any
      such inspections shall comply with all applicable OSHA/MSHA requirements and
      all
      safety rules adopted by the Manager.

    

    9.9 Confidentiality/Releases.
      All
      data and information coming into the possession of the Parties pursuant to
      this
      Amended and Restated Agreement shall be deemed confidential and shall be kept
      strictly confidential by the Parties except as specified in Section 9.11 or
      required by law or regulation. 

    

    9.10 No
      Area of Interest.
      There
      shall be no “area of interest” outside of the exterior boundaries of the
      Property and the area immediately surrounding the Property as of the Effective
      Date as such area is described in Exhibit B; however, during the term hereof,
      any interest or right to acquire any interest in whole or in part within the
      exterior boundaries of the Property and immediately surrounding area as
      described in Exhibit B that is acquired by or on behalf of that Party or any
      Affiliate thereof shall be subject to this Amended and Restated Agreement and
      the non-acquiring Party shall have the option to accept a proportionate interest
      in the acquired interest equal to its then Participating Interest. The
      non-acquiring Party shall thereafter pay to the acquiring Party its
      proportionate share of the latter’s actual out of pocket acquisition costs;
      provided that if such acquisition occurs prior to Earn-In, UPC shall pay for
      one
      hundred percent (100%) of the costs of such acquisition and such costs shall
      be
      applied to the Minimum Expenditures. If this Amended and Restated Agreement
      is
      terminated prior to completion of the Earn-In, for a period of one (1) year
      thereafter, UPC and its Affiliates shall not acquire any interest in land or
      minerals within the exterior boundaries of the Property and the area immediately
      surrounding the Property as described in Exhibit B.

    

    9.11 Recording.
      This
      Amended and Restated Agreement shall not be recorded in its entirety. Following
      the execution of this Amended and Restated Agreement, at the request of either
      Party, the Parties agree to execute, deliver and record with the Emery County
      Recorder’s Office, Utah, a memorandum evidencing the principal terms of this
      Amended and Restated Agreement.

    

    9.12 U.S.
      Dollars.
      Any
      payments of money under this Amended and Restated Agreement may be made by
      cash,
      check, wire or electronic wire funds transfer. All references to money as
      specified in this Amended and Restated Agreement shall be made in U.S.
      Dollars.

    

    9.13 Further
      Assurances.
      Each of
      the Parties agrees to promptly take such actions and execute and deliver such
      additional instruments as the Parties may from time to time deem reasonably
      necessary or convenient to implement and carry out the intent and purpose of
      this Amended and Restated Agreement. This may include a Mining Venture Agreement
      similar in form and substance to the Rocky Mountain Mineral Law
      Institute

    
      
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    Form
      Mining Venture Agreement (Form 5-1984) to incorporate the terms of this Amended
      and Restated Agreement.

    

    9.14 Specific
      Performance.
      Each
      Party shall have the remedy of specific performance of the obligations set
      forth
      herein.

    

    9.15 No
      Partition.
      No
      Party shall seek the partition or sale in lieu thereof of the Property and
      the
      Parties hereby waive any right of partition, or sale in lieu thereof, whether
      created by statue or otherwise.

    

    9.16 Liens,
      Burdens, Claims and Encumbrances.
      Except
      as approved by the management committee consistent with the voting requirements
      set out above, the Parties agree that the Property and their respective
      Participating Interests in the Venture will be maintained free and clear of
      any
      liens, burdens, claims or encumbrances. Each of the Parties shall immediately
      advise each other of any adverse claim against the Property which comes to
      its
      knowledge. The Manager shall prosecute and defend, but shall not initiate
      without consent of the management committee as provided above, all litigation
      or
      administrative proceedings arising out of operations.

    

    9.17 Management
      Fee.
      In
      addition to reimbursement for direct costs, the Manager shall receive as
      compensation for its services as Manager and in lieu of all off-site overhead
      costs, a management fee not to exceed (i) ten percent (10%) of direct costs
      associated with exploration activities and (ii) two percent (2%) of direct
      costs
      associated with contract work related to development and mining and the purchase
      of capital equipment. Provided further that the time of Mr. Chris Healey spent
      directly in planning or directing operations on the Property or in supervising
      the obtaining of or analysis of data obtained from the Property, as opposed
      to
      participating in general management affairs, shall be a “direct cost” not an
“overhead cost.” It is the intent of the Parties that the management fee should
      reimburse the Manager for all reasonable costs it incurs as serving as Manager
      and that the Manager shall not earn a profit or incur a loss in serving as
      Manager. The parties agree to periodically review and adjust, if necessary,
      the
      rate of the management fee in order to achieve the intent of the Parties as
      specified in this Section.

    

    9.18 Inurement.
      This
      Amended and Restated Agreement shall inure to and be binding on the successors
      and assigns of the Parties and shall run with the Property and be binding on
      any
      person or entity holding title to the Property.

    

    9.19 Maintenance
      of Property.
      During
      the term of this Amended and Restated Agreement, and as provided in Section
      9.5.1, the Manager, on behalf of the Venture, shall perform all work
      obligations, pay all taxes or duties and comply with all obligations under
      applicable law to maintain title to the Property in good standing. Prior to
      Earn-In, UPC’s costs associated with maintaining the Property shall be applied
      to the Minimum Expenditures.

    

    
      
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    9.20 Entire
      Agreement.
      This
      Amended and Restated Agreement constitutes the entire agreement between the
      Parties with respect to the Property. It supersedes and replaces all prior
      written or oral understandings heretofore communicated or interchanged between
      the Parties regarding the Property.

    

    9.21 Notice.
      Any
      notices or communications required or permitted hereunder shall be in writing
      and shall be effective when delivered by hand or facsimile as
      follows:

    

    
      	
              To
                Uranium Group at:

            	 	
              Uranium
                Group LLC

            
	 	 	
              3975
                West 8010 South

            
	 	 	
              West
                Jordan, Utah 84088 USA

            
	 	 	
              FAX:
                (801) 282-8889 (requires prior call)

            
	 	 	 
	
              To
                UPC at:

            	 	
              Uranium
                Power Corp.

            
	 	 	
              525-999
                West Hastings Street

            
	 	 	
              Vancouver,
                BC V6C 2W2

            
	 	 	
              FAX:
                (604) 689-1817

            

    

    

    9.22 Additional
      Consideration.
      Within
      ten (10) days following the Amended Effective Date, in consideration for
      amending the Agreement, UPC will pay to Uranium Group US$50,000. In addition,
      within 30 days of receipt of an invoice from Uranium Group, UPC will reimburse
      Uranium Group (a) for the legal costs incurred by Uranium Group in renegotiating
      the Agreement and in preparing this Amended and Restated Agreement and (b)
      for a
      new all terrain vehicle and trailer to be purchased by the Manager of Uranium
      Group in his name to replace the vehicle and trailer supplied by him to locate
      and maintain the Properties. The amounts reimbursed in (a) and (b) may be
      applied to amounts due in Sections 3.1.2.

    

    9.23 Effective
      Date.
      The
      terms of this Amended and Restated Agreement are subject to prior filing with
      the TSX Venture Exchange and approval by the members of Uranium Group. The
      later
      of the date the TSX Venture Exchange issues a Notice that the Amended and
      Restated Agreement has been accepted for filing or that the members of Uranium
      Group shall have approved this Amended and Restated Agreement shall for the
      purposes of this Amended and Restated Agreement be the “Amended Effective Date”.
      Each party agrees diligently to pursue such acceptance and
      approval.

    

    9.24 Governing
      Law.
      This
      Amended and Restated Agreement shall be construed and enforced in accordance
      with the laws of the State of Utah, without regard to the conflict of laws
      provisions thereof.

    

    Provided
      the foregoing Amended and Restated Agreement accurately reflects your
      understanding of our agreement, please so indicate by signing in the space
      provided below and returning both copies to the letterhead address. Upon
      execution by Uranium Group, a fully executed original will be returned to
      you.

    

    
      
        Page
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              Yours
                truly,

            
	 
	
              URANIUM
                GROUP LLC

            
	 	 
	 	 
	 	 
	
              By
                

            	
              /s/
                Scott J. Hill

            
	
              Title
                

            	
              Manager

            
	
              Date
                

            	
              5-2-06

            
	 	 
	
              ACCEPTED:

            
	
              URANIUM
                POWER CORP.

            
	 	 
	 	 
	 	 
	
              By
                

            	
              /s/
                Rahoul Sharan

            
	
              Title
                

            	
              President

            
	
              Date
                

            	
              2-5-06

            

    

    

    

    
      	
              Attachments:

            	
              Exhibit
                A - the “Property”

            
	 	
              Exhibit
                B - Area of Interest”

            
	 	
              Exhibit
                C - Gross Income Royalties and Net Profits
                Interest

            

    

    

    

    
      
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    EXHIBIT
      A

    

    The
      “Property”

    

    
      	
              I.
                Unpatented Mining Claims

            
	 	 	
              County

            	
              County

            	 	 	
              BLM

            	
              BLM

            	 
	
              Claim

            	
              Location

            	
              Filing

            	
              Document

            	 	 	
              Filing

            	
              UMC

            	 
	
              Name(s)

            	
              Date

            	
              Date

            	
              Number(s)

            	
              Book

            	
              Page(s)

            	
              Date

            	
              Number

            	
              Count

            
	 	 	 	 	 	 	 	 	 
	
              UGAP
                1-10

            	
              9/4/93

            	
              9/10/93

            	
              E334456-334465

            	
              J264

            	
              33-42

            	
              12/2/93

            	
              354391-354400

            	
              10

            
	 	 	 	 	 	 	 	 	 
	
              Saharacan
                1-8

            	
              9/18/04

            	
              10/15/04

            	
              E368620-368627

            	
              J266

            	
              691-698

            	
              12/15/04

            	
              372227-372234

            	
              8

            
	
              Saharacan
                9

            	
              10/11/96

            	
              11/8/96

            	
              E343236

            	
              J264

            	
              346

            	
              1/8/97

            	
              361626

            	
              1

            
	
              Saharacan10-14

            	
              9/17/04

            	
              10/15/04

            	
              E368628-368632

            	
              J266

            	
              699-703

            	
              12/15/04

            	
              372235-372239

            	
              5

            
	
              Saharacan
                15-27

            	
              9/18/04

            	
              10/15/04

            	
              E368633-368645

            	
              J266

            	
              704-716

            	
              12/15/04

            	
              372240-372252

            	
              13

            
	 	 	 	 	 	 	 	 	 
	
              Saharan
                1-7

            	
              9/4/00

            	
              9/29/00

            	
              E356459-E356465

            	
              J266

            	
              254-260

            	
              12/1/00

            	
              367552-367558

            	
              7

            
	
              Saharan
                8-26

            	
              9/18/04

            	
              10/15/04

            	
              E368601-E368619

            	
              J266

            	
              672-690

            	
              12/15/04

            	
              372253-372271

            	
              19

            
	 	 	 	 	 	 	 	 	 
	
              Pulsar
                1-2

            	
              11/27/04

            	
              12/22/04

            	
              E369190,
                E369191

            	
              J266

            	
              781A,
                782

            	
              2/23/05

            	
              373802,
                373803

            	
              2

            
	
              Pulsar
                3-8

            	
              11/26/04

            	
              12/22/04

            	
              E369192-E369197

            	
              J266

            	
              783-788

            	
              2/23/05

            	
              373804-373809

            	
              6

            
	
              Pulsar
                9-16

            	
              11/27/04

            	
              12/22/04

            	
              E369198-E369205

            	
              J266

            	
              789-796

            	
              2/23/05

            	
              373810-373817

            	
              8

            
	
              Pulsar
                17

            	
              5/9/05

            	
              5/10/05

            	
              E370880

            	
              J267

            	
              745

            	
              7/12/05

            	
              377994

            	
              1

            
	
              Pulsar
                18-21

            	
              1/1/05

            	
              1/26/05

            	
              E369457-E369460

            	
              J266

            	
              838-841

            	
              3/25/05

            	
              374453-374456

            	
              4

            
	
              Pulsar
                22

            	
              12/4/04

            	
              12/22/04

            	
              E369206

            	
              J266

            	
              842

            	
              2/23/05

            	
              373818

            	
              1

            
	
              Pulsar
                23

            	
              5/9/05

            	
              5/10/05

            	
              E370881

            	
              J267

            	
              746

            	
              7/12/05

            	
              377995

            	
              1

            
	
              Pulsar
                24, 25

            	
              12/30/04

            	
              1/26/05

            	
              E369433,
                E369434

            	
              J266

            	
              814,
                815

            	
              3/25/05

            	
              374457,
                374458

            	
              2

            
	
              Pulsar
                26-29

            	
              12/30/04

            	
              1/26/05

            	
              E369435-E369438

            	
              J266

            	
              816-819

            	
              3/25/05

            	
              374443-374446

            	
              4

            
	
              Pulsar
                30-35

            	
              1/1/05

            	
              1/26/05

            	
              E369461-E369466

            	
              J266

            	
              842-847

            	
              3/25/05

            	
              374447-374452

            	
              6

            
	 	 	 	 	 	 	 	 	 
	
              Quasar
                1-8

            	
              1/22/05

            	
              2/9/05

            	
              E369842-E369849

            	
              J267

            	
              300-307

            	
              3/25/05

            	
              374433-374440

            	
              8

            
	
              Quasar
                9, 10

            	
              1/14/05

            	
              2/9/05

            	
              E369850,
                E369851

            	
              J267

            	
              308,
                309

            	
              3/25/05

            	
              374441,
                374442

            	
              2

            
	
              Quasar
                11-32

            	
              4/15/05

            	
              5/10/05

            	
              E370882-E370903

            	
              J267

            	
              747-768

            	
              7/12/05

            	
              377996-378017

            	
              22

            
	
              Quasar
                33-47

            	
              4/14/05

            	
              5/10/05

            	
              E370904-E370918

            	
              J267

            	
              769-783

            	
              7/12/05

            	
              378018-378032

            	
              15

            
	
              Quasar
                48-52

            	
              4/15/05

            	
              5/10/05

            	
              E370919-E370923

            	
              J267

            	
              784-788

            	
              7/12/05

            	
              378033-378037

            	
              5

            
	 	 	 	 	 	 	 	 	 
	
              Nova
                1-12

            	
              12/31/04

            	
              1/26/05

            	
              E369439-E369450

            	
              J266

            	
              820-831

            	
              3/25/05

            	
              374519-374530

            	
              12

            
	
              Nova
                13-18

            	
              12/31/04

            	
              1/26/05

            	
              E369451-E369456

            	
              J266

            	
              832-837

            	
              3/25/05

            	
              374504-374509

            	
              6

            
	
              Nova
                19-26

            	
              1/15/05

            	
              2/9/05

            	
              E369732-E369739

            	
              J267

            	
              190-197

            	
              3/25/05

            	
              374510-374517

            	
              8

            
	
              Nova
                27

            	
              1//17/05

            	
              2/9/05

            	
              E369740

            	
              J267

            	
              198

            	
              3/25/05

            	
              374518

            	
              1

            
	
              Nova
                28-54

            	
              1/17/05

            	
              2/9/05

            	
              E369741-E369767

            	
              J267

            	
              199-225

            	
              3/25/05

            	
              374459-374485

            	
              27

            
	
              Nova
                55-72

            	
              1/22/05

            	
              2/9/05

            	
              E369768-E369785

            	
              J267

            	
              226-243

            	
              3/25/05

            	
              374486-374503

            	
              18

            
	 	 	 	 	 	 	 	 	 
	
              Orion
                1-28

            	
              1/14/05

            	
              2/9/05

            	
              E369786-E369813

            	
              J267

            	
              244-271

            	
              3/25/05

            	
              374531-374558

            	
              28

            
	
              Orion
                29-56

            	
              1/17/05

            	
              2/9/05

            	
              E369814-E369841

            	
              J267

            	
              272-299

            	
              3/25/05

            	
              374559-374586

            	
              28

            
	 	 	 	 	 	 	 	 	 
	
              Taurus
                00, 0 - 30

            	
              1/22/05

            	
              2/9/05

            	
              E369852-E369883

            	
              J267

            	
              310-341

            	
              3/25/05

            	
              374587-374618

            	
              32

            
	 	 	 	 	 	 	 	 	 
	
              Sirius
                1-24

            	
              2/5/05

            	
              2/9/05

            	
              E369884-E369907

            	
              J267

            	
              342-365

            	
              3/25/05

            	
              374634-374657

            	
              24

            
	
              Sirius
                25

            	
              2/19/05

            	
              3/4//05

            	
              E370345

            	
              J267

            	
              674

            	
              3/25/05

            	
              374658

            	
              1

            
	
              Sirius
                26 Frac.

            	
              2/19/05

            	
              3/4/05

            	
              E370346

            	
              J267

            	
              675

            	
              3/25/05

            	
              374659

            	
              1

            
	
              Sirius
                27

            	
              2/19/05

            	
              3/4/05

            	
              E370347

            	
              J267

            	
              676

            	
              3/25/05

            	
              374660

            	
              1

            
	
              Sirius
                28-42

            	
              2/19/05

            	
              3/4/05

            	
              E370348-E370362

            	
              J267

            	
              677-691

            	
              3/25/05

            	
              374619-374633

            	
              15

            
	 	 	 	 	 	 	 	 	 
	
              Saturn
                1-16

            	
              2/17/05

            	
              3/4/05

            	
              E370305-E370320

            	
              J267

            	
              634-649

            	
              3/25/05

            	
              374661-374676

            	
              16

            
	
              Saturn
                18

            	
              2/17/05

            	
              3/4/05

            	
              E370321

            	
              J267

            	
              650

            	
              3/25/05

            	
              374677

            	
              1

            
	
              Saturn
                20

            	
              2/17/05

            	
              3/4/05

            	
              E370322

            	
              J267

            	
              651

            	
              3/25/05

            	
              374678

            	
              1

            
	
              Saturn
                22

            	
              2/17/05

            	
              3/4/05

            	
              E370323

            	
              J267

            	
              652

            	
              3/25/05

            	
              374679

            	
              1

            
	
              Saturn
                24

            	
              2/17/05

            	
              3/4/05

            	
              E370324

            	
              J267

            	
              653

            	
              3/25/05

            	
              374680

            	
              1

            
	
              Saturn
                25-44

            	
              2/18/05

            	
              3/4/05

            	
              E270325-E370344

            	
              J267

            	
              654-673

            	
              3/25/05

            	
              374681-374700

            	
              20

            
	 	 	 	 	 	 	 	 	 
	
              Polaris
                1-36

            	
              2/21/05

            	
              3/4/05

            	
              E370363-E370398

            	
              J267

            	
              692-727

            	
              3/25/05

            	
              374701-374736

            	
              36

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Total

            	
              428

            

    

    

    
      
        Page
          17

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    Subject
      to the following:

    

    1.
      UGAP
      1-10: No Emery County Recordings of annual BLM fee payments.

    2.
      Saharacan 7: Overlap into Utah State Highway easement.

    3.
      Saharacan 9: No Emery County Recordings of annual BLM fee payments.

    4.
      Saharan 1-7: No Emery County Recordings of annual BLM fee payments.

    5.
      Saharan 4-6: Overlap into Utah State Section 2, T22S R14E.

    6.
      Saharan 8, 26: Overlap into Utah State Section 2, T22S R14E.

    7.
      Nova
      1, 3, 5, 7, 9, 11, 13, 15, 17: Overlap into Utah State Section 2, T22S
      R14E.

    8.
      Nova
      17-20: Overlap into Utah State Section 36, T21S R14E.

    9.
      Nova
      56: Overlap into Utah State Section 32, T21S R15E.

    10
      Polaris 20, 22, 24, 26, 28, 30, 32, 34, 36 - Overlap into Utah State Section
      32,
      T21S R15E.

    11.
      Polaris 9, 11, 13, 15, 17, 18 - Overlap senior CC claims, Polaris discovery
      monuments on open ground.

    12.
      Sirius 44,46,48,50,52,54 - Overlap into Utah State Section 16, T22S
      R15E.

    

    II.
      State
      Mineral Leases

    

    
      	
              Utah
                State Lease

            	 	
              Effective
                Date

            	 	
              Land
                Covered

            
	 	 	 	 	 
	
              ML
                48685

            	 	
              January
                31, 2001 

            	 	
              Sec
                2, T 22 S, R 14 E

            
	 	 	 	 	 
	
              ML
                49588

            	 	
              January
                14, 2005

            	 	
              Sec
                32, T 21 S, R 15 E

            
	 	 	 	 	 
	
              ML
                49589

            	 	
              January
                14, 2005

            	 	
              Sec
                36, T 22 S, R 14 E

            
	 	 	 	 	 
	
              ML
                49715

            	 	
              March
                11, 2005

            	 	
              Sec
                2, T 22 S, R 15 E

            
	 	 	 	 	 
	
              ML
                49715

            	 	
              March
                11, 2005

            	 	
              Sec
                16, T 22 S, R 15 E

            

    

    

    
      
        Page
          18

        849277.1 

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        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    Area
      of Interest”

    

    

    The
      Area
      of Interest shall be defined as:

    

    that
      area
      surrounding the Property and bordered on the north by the southern right-of-way
      boundary of Interstate 70 as it exists on the Effective Date of the agreement,
      on the west by the eastern bank of the San Rafael River, on the east by the
      western bank of the Green River, and on the south by the southern boundary
      of T.
      23 S., R. 14, 15 and 16 E., projected to the east and to the west to the point
      of intersection with the Green River and the San Rafael River, respectively.
      All
      river boundaries are to be fixed at the locations published on the USGS 7.5
      Minute Topographic Quadrangle Maps, Provisional Edition 1988, for the Jessies
      Twist, Green River, Horse Bench West and Horse Bench Quadrangles.

    

    

    
      
        Page
          19

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Exhibit
      C

     

    

     

    Gross
      Income Royalty and Net Profits Interest 

     

    

     

    I. GROSS
      INCOME ROYALTY CALCULATION

     

    

    A. Gross
      Income Definition.

     

    1. “Gross
      Income” for the calendar quarter shall mean the total amount of Revenues
      actually received by the Payor from the sale of Products, less to the extent
      actually paid or incurred by the Payor, (a) the cost of transportation,
      including insurance, of Products between the mill where Products are produced
      and the buyer, (b) any independent representative and umpire charges, and (c)
      taxes (other than income taxes) imposed upon or in connection with selling
      Products.

     

    2. In
      no
      event shall the Payor deduct the cost of exploration, development, mining,
      milling, leaching or any other processing costs in the determination of Gross
      Income Return.

    

    B. Definitions
      Not Included in the Amended and Restated Agreement.

    

    1. Capitalized
      terms used in this Exhibit C shall have the meaning given to them in the Amended
      and Restated Option and Joint Venture Agreement unless defined in this Exhibit
      C.

     

    2. “Payor”
      shall mean the person or entity obligated to pay a Gross Income Royalty Or
      a Net
      Profits Interest to the Royalty Holder pursuant to the terms of the Amended
      and
      Restated Agreement.

     

    3. “Royalty
      Holder” shall mean the person or entity entitled to receive a Gross Income
      Royalty or a Net Profits Interest pursuant to the terms of the Amended and
      Restated Agreement.

     

    4. “Revenues”
      shall mean the total amounts received by the Payor from the sale of Products
      produced from the Property at the point of sale, less all selling costs,
      provided such sales are arm’s length transactions, and provided further that
      sales to Affiliates of the Payor are valued at the fair market value of the
      Products sold. 

     

    II. NET
      PROFITS CALCULATION

     

    A.  Net
      Profits Interest Definition.
      "Net
      Profits Interest" means for any calendar quarter means the excess, if any,
      of
      Gross Proceeds for the period over the aggregate of:

     

    
      	 	
              i.

            	
              Operating
                Costs for the period;

            

    

     

    
      
        Page
          20

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	 	
              ii.

            	
              Operating
                Costs for all previous periods to the extent they have exceeded Gross
                Proceeds from such periods and have not previously been deducted
                in
                computing Net Profits; and

            

    

     

    
      	 	
              iii.

            	
              such
                reasonable amount of cash as is required for the ensuing three month
                period for working capital as, in the opinion of the Payor, is required
                for the Operation of the Property as a Mine, provided that this amount
                shall be added to Gross Proceeds when calculating Net Profits for
                the next
                ensuing period;

            

    

     

    
      	 	
              iv.

            	
              A
                charge for Expenditures and Post-production Capital Expenses, calculated
                as provided in paragraph 5.xi below, to the extent they have not
                previously been deducted in computing Net
                Profits

            

    

     

    B.  Other
      Definitions.
      In
      determining Net Profits the following definitions shall apply:

     

    
      	 	
              1.

            	
              "Commercial
                Production" means Operating the Property as a Mine but shall not
                include
                milling of ores for the purpose of testing or milling by a pilot
                plant or
                milling during an initial tune-up period of a plant. Commercial Production
                shall be deemed to have commenced on the day upon which uranium or
                vanadium bearing ores have been produced from the Property on a continuous
                basis for a period of 30 working
                days;

            

    

     

    
      	 	
              2.

            	
              "Expenditures"
                means all cash, expenses, obligations and liabilities of whatever
                kind or
                nature spent or incurred directly or indirectly by the Payor following
                conversion of the Participating Interest of the Royalty Holder to
                a Gross
                Income Royalty or a Net Profits Interest as provided in the Amended
                and
                Restated Agreement, up to and including the date of commencement
                of
                Commercial Production in connection with the exploration and development
                of the Claims, the acquisition of Other Tenements, and the equipping
                of
                the Property for Commercial Production, including, without limiting
                the
                generality of the foregoing, monies expended in maintaining the Property
                in good standing by doing and filing assessment work, in doing
                geophysical, geochemical and geological surveys, drilling, assaying
                and
                metallurgical testing, in paying the fees, wages, salaries, traveling
                expenses, and fringe benefits (whether or not required by law) of
                all
                persons engaged in work in respect to and for the benefit of the
                Property,
                in paying for the food, lodging and other reasonable needs of such
                men,
                and in supervision and management of all work done with respect to
                and for
                the benefit of the Property, plus an amount not to exceed 3% of such
                costs
                as compensation for overhead and other similar expenses which the
                Payor
                will incur but which cannot be specifically allocated; and sufficient
                initial working capital to finance the first three months of production
                as
                in the opinion of the Payor is required for the Operation of the
                Property
                as a Mine;

            

    

     

    
      
        Page
          21

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	 	
              3.

            	
              "Gross
                Proceeds" means, for any period, the aggregate gross Revenues received
                by
                the Payor during the period from the sale of Products produced in
                Operating the Property as a Mine and any cash proceeds received during
                the
                period from the disposition of any capital assets the cost of which
                has
                been treated as an Expenditure or a Post-production Capital
                Expense;

            

    

     

    
      	 	
              4.

            	
              "Mining
                Facilities" means all mines and plants, including without limitation,
                all
                pits, shafts, haulage ways, and other underground workings, and all
                buildings, plants, facilities and other structures, fixtures and
                improvements, and all other property, whether fixed or moveable,
                as the
                same may exist at any time in, on or outside the Property and relating
                to
                the Operation of the Property as a
                Mine;

            

    

     

    
      	 	
              5.

            	
              "Operating
                Costs" means, for any period, all costs, expenses, obligations,
                liabilities and charges of whatsoever kind and nature incurred or
                chargeable, directly or indirectly by the Payor, after commencement
                of
                Commercial Production in connection with the Operation of the Property
                as
                a Mine during the period, which costs, expenses, obligations, liabilities
                and charges shall include, without limiting the generality of the
                foregoing, the following:

            

    

    

    
      	 	
              i.

            	
              all
                costs of or related the Operation of the Property as a
                Mine;

            

    

     

    
      	 	
              ii.

            	
              all
                costs of or related to the processing and marketing of Products including,
                without limitation, transportation, storage, commissions and/or
                discounts;

            

    

     

    
      	 	
              iii.

            	
              all
                costs of acquiring Other Tenements and maintaining in good standing
                or
                renewing from time to time the Property including the payment of
                all
                royalties and taxes of any nature whatsoever in connection
                therewith;

            

    

     

    
      	 	
              iv.

            	
              all
                costs of or related to providing and/or operating employee facilities,
                including housing;

            

    

     

    
      	 	
              v.

            	
              all
                duties, charges, levies, royalties, taxes (excluding taxes levied
                on
                income) and other payments imposed upon or in connection with Operating
                the Property as a Mine by any govern-ment or department or agency
                thereof;

            

    

     

    
      	 	
              vi.

            	
              all
                costs of consulting, legal, accounting, insurance and other
                services;

            

    

     

    
      	 	
              vii.

            	
              all
                interest expenditures incurred after Commencement of Commercial
                Production;

            

    

     

    
      	 	
              viii.

            	
              all
                costs of construction, equipment, mine development, after Commencement
                of
                Commercial Production, including capital costs, maintenance, repairs
                and
                replacements, except capital expenditures relating to a major improvement,
                expansion, modernization or replacement

            

    

     

    
      
        Page
          22

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    of
      the
      mining facilities (for the purposes hereof a major improvement, expansion,
      modernization or replacement of the mining facilities is one which involves
      an
      aggregate cost in any one year of more than $l,000,000.00);

     

    
      	 	
              x.

            	
              all
                costs for pollution control, reclamation or any other similar costs
                incurred or to be incurred by the
                Payor);

            

    

     

    
      	 	
              xi.

            	
              a
                charge for the Payor's Expenditures and Post-production Capital Expenses
                to be amortized, and charged by the Payor in the same manner as reported
                by the Payor for income tax
                purposes;

            

    

     

    
      	 	
              xii.

            	
              any
                costs or expenses incurred or to be incurred relating to the termination
                of the Operation of the Property as a
                Mine;

            

    

    

    Except
      where specific provision is made otherwise, all Expenditures and Operating
      Costs
      shall be determined in accordance with generally accepted accounting principles
      consistently applied. It is the intent of the parties that there be no
      duplication in charges made under this agreement;

     

    
      	 	
              6.

            	
              "Operating
                the Property as a Mine/Operation of the Property as a Mine" means
                the
                extraction or production of minerals or metals from the Property,
                the
                milling, smelting, refining, beneficiating, and other processing
                of such
                minerals and metals and the marketing of
                Products;

            

    

     

    
      	 	
              7.

            	
              "Other
                Tenements" means all surface rights of and to any lands within or
                outside
                the Property including surface rights held in fee or under lease,
                license,
                easement, right of way or other rights of any kind (and all renewals,
                extensions and amendments thereof) acquired by or on behalf of the
                Payor
                for use for the benefit of the
                Property;

            

    

     

    
      	 	
              8.

            	
              "Post-production
                Capital Expenses" means all such costs expended or incurred by the
                Payor
                after commencement of Commercial Production in connection with a
                major
                improvement, expansion, modernization or replacement of the Mining
                Facilities as are excluded from operating costs under subparagraph
                5.ix;

            

    

     

    III. PAYMENTS.

     

    1. If
      the
      Payor produces and sells Products, the Gross Income Royalty or the Net Profits
      Interest to be paid to the Royalty Holder shall be calculated by multiplying
      the
      amount of Gross Income Royalty determined in Section I or the amount of Net
      Profits Interest determined in Section II by the percentage of Gross Income
      Royalty or Net Profits Interest to which the Royalty Holder is entitled under
      the Amended and Restated Agreement. Payment (or if no payment is due an
      accounting showing such fact) shall be made within 30 days after the end of
      any
      calendar quarter in which Payor receives Revenues from the sale of Products
      during the calendar quarter.

     

    
      
        Page
          23

        849277.1 

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        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    2, The
      Payor
      shall provide copies of all data relating to the Gross Income Royalty or Net
      Profits Interest calculation (including, but not limited to, settlement sheets
      used in calculating the Royalty Holder’s Gross Income Royalty or Net Profits
      Interest) to the Royalty Holder at the same time that the Royalty Holder’s Gross
      Income Royalty or Net Profits Interest payments are paid.

     

    3. For
      purposes of determining whether the Gross Income Royalty or the Net Profits
      Interest is greater as provided in Section 5.4 of the Amended and Restated
      Agreement, the Royalty Holder shall be paid the Gross Income Royalty on a
      quarterly basis. Within six months of the end of each fiscal year following
      Commencement of Commercial Production (for purposes of this provision, a “fiscal
      year” shall mean the calendar quarter in which such commencement occurred,
      together with the next three calendar quarters and each subsequent four calendar
      quarters thereafter) the Payor shall calculate and provide to the Royalty Holder
      a written statement cumulative Gross Income Royalty and a cumulative Net Profits
      Interest for the Property. If the cumulative amounts actually paid to the
      Royalty Holder are less than the amounts that would have been paid under such
      calculations, within 30 days of the end of such six month period, the Payor
      shall make a reconciling payment equal to the difference between actual and
      calculated payments. The process shall be repeated at the end of each subsequent
      fiscal year.

     

    IV. AUDITS
      AND DISPUTES.

     

    1. The
      Royalty Holder, upon written notice, shall have the right to audit, or to have
      an independent firm of certified public accountants audit, the records that
      relate to the calculation of the Gross Income Royalty or Net Profits Interest
      within 6 months after receiving the written statement following the end of
      each
      fiscal year as described in Section C.3 above.

     

    2. The
      Royalty Holder shall be deemed to have waived any right it may have had to
      object to a payment made for any fiscal year, unless it provides notice in
      writing of such objection within 12 months after receipt the written statement
      following the end of each fiscal year as described in Section C.3 above, unless
      an audit is conducted, in which case the Royalty Holder shall have 30 days
      from
      conclusion of the audit to provide such notice. If the parties are unable to
      resolve the dispute within 60 days after the receipt of such notice, the dispute
      shall be resolved by arbitration in Salt Lake City, Utah, pursuant to the
      commercial arbitration rules of the American Arbitration Association. The
      resolution pursuant to such arbitration shall be binding on the parties.
      Alternatively, the parties may elect to submit the dispute to a mutually
      acceptable certified public accountant, or firm of certified public accountants,
      for a binding resolution thereof. Unless the parties agree to share the costs
      of
      arbitration, the arbitrator shall determine what part of the costs and expenses
      incurred in any such proceeding shall be borne by each party participating
      in
      the arbitration.

     

    V. GENERAL.

     

    1. Unless
      otherwise specified, capitalized terms used herein shall have the same meaning
      as given to them in the Amended and Restated Agreement to which this Exhibit
      C
      is attached.

     

    2. The
      Payor
      shall keep true and accurate books and records for the purposes of this Exhibit.
      Such books and records shall be kept on the accrual basis in accordance with
      generally accepted accounting principles and practices consistently
      applied.

     

    
      
        Page
          24

        849277.1 

        4/14/06 

        850468.1 

        4/19/06 

         

      

      
        
        

        
          

        

      

      
         

      

    

    3. The
      Royalty Holder or its authorized representative on not less than two days’
notice to the Payor, may enter upon all surface and subsurface portions of
      the
      Properties for the purpose of inspecting the Properties, all improvements
      thereto and operations thereon, and may inspect and copy all records and data
      pertaining to the calculation of its interest, including without limitation
      such
      records and data which are maintained electronically. The Royalty Holder or
      its
      authorized representative shall enter the Property at the Royalty Holder’s own
      risk and may not unreasonably hinder operations on or pertaining to the
      Property. Subject to any insurance carried by the Payor with respect to the
      Property, the Royalty Holder shall indemnify and hold harmless the Payor and
      its
      Affiliates (including without limitation direct and indirect parent companies),
      and its or their respective directors, officers, shareholders, employees, agents
      and attorneys, from and against any Liabilities which may be imposed upon,
      asserted against or incurred by any of them by reason of injury to the Royalty
      Holder or any of its agents or representatives caused by the Royalty Holder’s
      exercise of its rights herein, unless such injury results from the negligence
      or
      willful misconduct of Payor.

     

    4. All
      notices or communications hereunder shall be made and effective in accordance
      with the provisions of the Amended and Restated Agreement.

     

    5. The
      Net
      Profits Interest and Gross Income Royalty shall attached to any amendments,
      relocations or conversions of any mining claims or leases comprising the
      Property, or to any renewals or extensions of leases, and to any mineral rights
      acquired by the Payor and any Affiliates in lands embraced within the Property
      or the Area of Interest within three years after the loss or relinquishment
      of
      any mining claim or lease comprising the Property. The Net Profits Interest
      and
      Gross Income Royalty shall be a real property interest that runs with the
      Properties and shall be applicable to any person who produces and sells Products
      from the Property.

     

    6. All
      information and data provided to Royalty Holder shall be subject to the
      confidentiality provisions of Section 9.9 of the Amended and Restated
      Agreement.

     

    7. Notwithstanding
      anything to the contrary herein, the Payor shall have the right to mine and
      market amounts of Products reasonably necessary for non-bulk sampling, assaying,
      metallurgical testing and evaluation of the minerals potential of the Property
      without initiating the obligation to make payments hereunder.

     

    8. The
      Payor
      shall have the right to commingle ores and minerals from the Property with
      ore
      and minerals produced from other lands and properties; provided, however, that
      the Payor shall first calculate from representative samples the average grade
      of
      the ore and minerals and shall weigh (or calculate by volume) the ore before
      commingling. If concentrates are produced from the commingled ores by the Payor,
      the Payor shall also calculate from representative samples the average recovery
      percentage for all concentrates produced during the calendar quarter. In
      obtaining representative samples, calculating the average grade of the ore
      and
      minerals and average recovery percentages, the Payor may use any procedures
      generally accepted in the mining and metallurgical industry which it believes
      suitable for the type of mining and processing activity being conducted and,
      in
      the absence of negligence or fraud, its choice of such procedures shall be
      final
      and binding on the Royalty Holder. In addition, comparable procedures may be
      used by the Payor to apportion among the commingled ores and minerals penalty
      charges, if any, imposed by the purchaser of such ore or minerals.

     

     

    
      
        
          Page
            25

          849277.1 

          4/14/06 

          850468.1 

          4/19/06Exhibit 10.1 Agreement

    
      

    

    AGREEMENT

    

    THIS
      AGREEMENT (“Agreement”) dated May 9, 2006, is between Uranium Power Corp., a
      British of Columbia corporation ("UPC") and U.S. Energy Corp., a Wyoming
      corporation ("USE"), and a joint venture between USE and Crested Corp., a
      Colorado corporation ("Crested"), the joint venture between USE and Crested
      is
      referred to herein as "USECC" and USE, Crested and USECC are collectively
      referred to herein as the "USE Parties".

    

    RECITALS

    

    WHEREAS,
      on April 15, 2006 UPC entered into an Amended and Restated Option and Joint
      Venture Agreement - Sahara Mine Property, Emery County, Utah (the “Sahara
      Agreement”), which is attached as Exhibit A, with Uranium Group LLC in an area
      called the Green River South, whereby UPC has the right to earn a 70% undivided
      participating interest in the venture and property as an initial option and
      an
      additional option to earn an additional 15% undivided participating interest
      in
      the venture and property;

    

    WHEREAS;
      the USE Parties own 10 unpatented lode mining claims in an area called the
      Green
      River North, which claims are described on Exhibit B;

    

    WHEREAS,
      UPC and the USE Parties desire to transfer 50% of their respective ownership
      in
      the Green River South and the Green River North properties to each other and
      to
      develop the properties pursuant to joint mining venture agreements;

    

    NOW,
      THEREFORE, in consideration of the covenants and agreements contained herein,
      UPC and the USE Parties agree to the following terms and
      conditions:

     

    
      	1.  	
              UPC
                agrees to transfer 50% of its ownership in the Sahara Agreement and
                the
                Green River South properties to the USE
                Parties.

            

    

    

    
      	2.  	
              The
                USE Parties agree to transfer 50% of its ownership in the Green River
                North properties to UPC.

            

    

    

    
      	3.  	
              UPC
                agrees to provide the first $500,000 in expenditures to the joint
                venture,
                USE Parties agree to provide the next $500,000 in expenditures to
                the
                joint venture and thereafter UPC and the USE Parties will fund all
                expenditures on a 50% UPC and 50% the USE Parties
                basis.

            

    

    

     

    
      	4.  	
              The
                UPC stock to be paid to the Uranium Group LLC pursuant to the Sahara
                Agreement as specified in Section 3.1.3 Initial Option and Section
                3.4
                Additional Option shall be valued as between UPC and the USE Parties
                as
                the actual UPC stock price at the time of payment or $1.00/share,
                which
                ever is less, such amount in Canadian currency. The USE Parties shall
                have
                the option to pay this amount to UPC by cash, UPC stock or USE
                stock.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	5.  	
              UPC
                and the USE Parties will form two separate joint ventures; one for
                the
                Green River South properties and one for the Green River North properties.
                The Green River South joint venture agreement shall be between the
                Uranium
                Group LLC, UPC and the U.S. Energy Parties and the terms and conditions
                shall be consistent with the Sahara Agreement. The Green River North
                joint
                venture agreement shall be between UPC and the USE Parties and the
                terms
                and condition shall be consistent with other joint venture agreements
                between UPC and the U.S. Parties. However, for purposes of calculating
                expenditure commitments, the two joint ventures shall be considered
                as
                one.

            

    

    

    
      	6.  	
              The
                joint ventures will be managed by a Management Committee with equal
                representation from each of UPC and the USE Parties.
                

            

    

    

    
      	7.  	
              The
                USE Parties will be the Operator of the joint ventures, reporting
                to the
                Management Committee and may charge a minimum of cost plus 10% for
                its
                services and materials and 2% of the direct costs associated with
                contract
                work related to development and mining and purchase of capital equipment
                furnished to the joint ventures as provided in joint venture agreements
                to
                be executed by UPC and the USE
                Parties.

            

    

    

    
      	8.  	
              The
                parties to the joint venture agreements shall contribute to the costs
                and
                expenses and share in the joint venture in proportion to their respective
                participating interests, as they may from time to time then
                appear.

            

    

    

    
      	9.  	
              This
                Agreement may be terminated at any time by the mutual written consent
                of
                parties or in accordance to the joint venture
                agreement.

            

    

    

    
      	10.  	
              The
                parties intend that neither this Agreement nor the joint venture
                agreements contemplated hereunder shall create a partnership or mining
                partnership between UPC, the USE Parties and/or the Uranium Group
                LLC.
                Rather their relationship is one of covenants and the liability of
                the
                parties shall be several and not joint or
                collective.

            

    

    

    
      	11.  	
              UPC
                represents that it has received approval from its Board of Directors
                prior
                to the execution of this Agreement.

            

    

    

    
      	12.  	
              The
                USE Parties represent that they have received approval from their
                respective Board of Directors prior to the execution of this
                Agreement.

            

    

    

    
      	13.  	
              Any
                notice, consent, authorization or other communication to be given
                hereunder shall be in writing and shall be deemed duly given and
                received
                when delivered personally, when transmitted by fax, three days after
                being
                mailed by first class mail, or one day after being sent by a nationally
                recognized overnight delivery service, charges and postage prepaid,
                properly addressed to the party to receive such notice, at the following
                address or fax number for such party (or at such
                

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    other
      address or fax number as shall hereafter be specified by such party by like
      notice):

    

    (a) If
      to the
      USE Parties

    

    Mark
      J.
      Larsen,

    President
      

    877
      North
      8th West

    Riverton,
      WY 82501

    Phone: (307)
      856-9271

    Fax: (307)
      857-3050

    E-Mail:
      mark@usnrg.com

    

    (b) If
      to
      UPC

    

    Rahoul
      Sharan,

    President

    3rd
      Floor -
      Bellevue Centre

    235
      -
      15th
      Street

    West
      Vancouver, BC

    CANADA
      V7T 2X1

    Phone: (604)
      921-1810

    Fax: (604)
      921-1898

    E-Mail:
      rahoul@axion.net

    

    15.
      Miscellaneous.

    

    (a) This
      Agreement shall constitute the whole agreement and understanding between UPC
      and
      the USE Parties as to the subject matter of this Agreement and supersedes any
      other prior agreements or understandings whether written or oral between UPC
      and
      the USE Parties.

    

    (b) This
      Agreement may be modified only by an agreement in writing signed by the party
      against whom enforcement of any waiver, change, modification, extension or
      discharge is sought.

    

    (c) The
      waiver by either UPC or the USE Parties of a breach of any provision of this
      Agreement by the other shall neither operate as nor be construed as a waiver
      of
      any subsequent breach.

    

    (d) In
      the
      event that any condition or other provision of this Agreement is held to be
      invalid or void by any court of competent jurisdiction, the same shall be deemed
      severable from the remainder of this Agreement and shall in no way affect any
      other covenant or condition. If such condition, covenant or other provision
      shall be deemed invalid due to its scope or breadth, such provision shall be
      deemed valid to the extent of the scope or breadth permitted by
      law.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) This
      Agreement may be executed in a number of identical counterparts, each of which
      for all purposes is to be deemed an original, and all of which constitute,
      collectively, one agreement. 

    

    (f) This
      Agreement shall be interpreted in accordance with the laws of the State of
      Wyoming.

    

    (g) The
      terms
      and provisions hereof shall inure to the benefit of and shall be binding upon
      the permitted successors and assigns of the parties.

    

    

    (h) In
      the
      event either party to this Agreement shall be required to institute any suit
      or
      legal action to enforce any of the provisions of this Agreement, then the
      prevailing party shall be allowed, in addition to such relief as awarded by
      the
      court, reasonable attorney's fees and court costs in prosecuting that
      action.

    

    (i) This
      agreement is subject to filing with the TSX Venture Exchange and UPC receiving
      confirmation that it has been accepted for filing.

    

    

    

    

    (Remainder
      of the page intentionally blank.)

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    This
      Agreement is executed to be effective on the date first shown
      above.

    

    

    URANIUM
      POWER GROUP

    

    

    By
       Rahoul
      Sharan    

    

    Its
       President    

    

    

    U.S.
      ENERGY CORP.

    

    

    By
       Mark
      J. Larsen   

    

    Its
       President    

    

    

    U.S.
      ENERGY CORP. and CRESTED CORP. dba as USECC, a JOINT
      VENTURE

    

    U.S.
      ENERGY CORP.

    

    

    By
       Mark
      J. Larsen   

    

    Its
       President    

    

    

    CRESTED
      CORP.

    

    

    By
       /s/
      Harold F. Herron   

    

    Its
       President    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 	 	
              EXHIBIT
                "B"

            	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              State

            	
              Name

            	
              No.

            	
              Sect

            	
              Twp

            	
              Rge

            	
              County

            	
              Book/Page

            	
              Serial
                #

            
	
              UT

            	
              Hollie

            	
              1

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/799

            	
              UMC373945

            
	
              UT

            	
              Hollie

            	
              2

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/800

            	
              UMC373946

            
	
              UT

            	
              Hollie

            	
              3

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/801

            	
              UMC373947

            
	
              UT

            	
              Hollie

            	
              4

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/802

            	
              UMC373948

            
	
              UT

            	
              Hollie

            	
              5

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/803

            	
              UMC373949

            
	
              UT

            	
              Hollie

            	
              6

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/804

            	
              UMC373950

            
	
              UT

            	
              Hollie

            	
              7

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/805

            	
              UMC373951

            
	
              UT

            	
              Hollie

            	
              8

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/806

            	
              UMC373952

            
	
              UT

            	
              Hollie

            	
              9

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/807

            	
              UMC373953

            
	
              UT

            	
              Hollie

            	
              10

            	
              23

            	
              21S

            	
              14E

            	
              Emery

            	
              266/808

            	
              UMC373954

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