Document:

Exhibit 10.39

 

MINERAL LEASE AGREEMENT

 

THIS Mineral Lease Agreement (“Agreement”), by and between ENERDYNE ENDY CLAIMS LLC, a New Mexico Limited Liability Company, as to an undivided one hundred-percent (100%) interest, whose address is P.O. Box 502, Albuquerque, New Mexico 87103, (hereinafter referred to as “Lessor”), and NEUTRON ENERGY, INC., a Wyoming corporation, whose mailing address is 6606 North Hillside Drive, Paradise Valley, Arizona 85253, (hereinafter referred to as “Neutron”), is entered into and made effective as of February 1, 2006.

 

I.                                         RIGHTS GRANTED

 

Lessor grants, demises, leases, and lets to Neutron and its successors and assigns the following rights, powers, and privileges:

 

A.                                   Premises. The interest in the real property described in the attached Exhibit “A” which is incorporated by this reference (“Premises”) and all rights, improvements, privileges, hereditaments, and appurtenances belonging or in any way appertaining to the Premises, including all ores, minerals, materials, and mineral rights, except oil and gas.

 

Mining Rights and Access.

 

1.             The free, exclusive, unrestricted, uninterrupted right of access, ingress and egress to the Premises, and the right to enter upon and occupy the Premises for all purposes reasonably incident to exploring for, developing. mining (by underground mining, surface mining, strip mining, or any other surface or subsurface method, including any method later developed), in-situ leaching, extracting, milling, stockpiling, storing, processing, removing and marketing therefrom all merchantable and nonmerchantable ores, metals, minerals. mineral products and materials of every nature or sort, and all other materials or substances of any nature whatsoever found in natural deposits (“Mineral Substances”), and the right to place, construct, maintain, use, and thereafter remove such structures, facilities, equipment, roadways, haulage ways, and other improvements as may he necessary, useful, or convenient for the full enjoyment of all of the rights granted under this Agreement.

 

2.                                       These rights are granted and may be utilized for the purpose or in the course of carrying on exploration or mining operations on any other adjoining properties to the Premises in which Neutron may have or acquire any right and/or interest and may desire to reach or mine directly or indirectly through the Premises.

 

C.                  Cross Mining.

 

1.                                       The right, if it so desires, to mine and remove any Mineral Substances existing on or under the Premises through or by means of shafts, openings, or pits which may be sunk or made upon adjoining and nearby property, and the right to stockpile

 

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any Mineral Substances from the Premises upon grounds situated upon any such properties.

 

2.                                       In addition, Neutron may use the Premises for any shafts, openings, pits and stockpile-grounds sunk or made for the mining, removal, and/or stockpiling of any Mineral Substances from any adjoining or nearby property. Mineral Substances taken from the Premises shall at all times be kept entirely separate and distinct from any other ore or concentrated product until the same are measured and sampled so that the rights of Lessor shall be at all times preserved and protected.

 

D.                                    Commingling. Neutron shall have the right to commingle ore and minerals from the Premises with ore from other lands and properties; provided, however, that Neutron shall calculate from representative samples the average grade of the ore and shall weigh (or calculate by volume) the ore before commingling. If concentrates, ore, or any other processed, beneficiated, or refined mineral products (“Concentrates”) are produced from the commingled ores by Neutron, Neutron shall also calculate from representative samples the average recovery percentage for all such concentrates produced during the calendar quarter and shall allocate a percentage of concentrate production to Lessor according to such calculations. In obtaining representative samples and calculating the average grade of the ore and average recovery percentages, Neutron may use any procedures 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 fraud, its choice of such procedures shall be final and binding on Lessor. In addition, comparable procedures may be used by Neutron to apportion among the commingled ores penalty charges, if any, imposed by the purchaser of such ore or concentrates.

 

E.                                      Water Rights. The right to use any and all of Lessor’s water rights on, about. under. or which is appurtenant to the Premises or to which the Premises are riparian.

 

F.                                      Deposit of Waste Materials. The right to temporarily or permanently deposit tailings slurry, waste rock, overburden, surface stripping, process solutions and all other materials from the Premises or from adjoining or nearby properties on or off the Premises, even if the sole use of the Premises may be for the placement of such materials.

 

G.                                    Treatment. The right, at Neutron’s election and in any manner it deems fit, to beneficiate, concentrate, process and/or otherwise treat any Mineral Substances taken from the Premises by any physical or chemical method. In exercising this right, Mineral Substances may be removed to a plant or plants established or maintained either upon the Premises or elsewhere.

 

H.                                    Amendment, Relocation, and Patent of Claims.

 

1.                                       Neutron, in its sole discretion, shall have the right to amend or relocate as unpatented mining claims or unpatented millsites, in the name of Lessor, any  unpatented mining claims which are subject to this Agreement. If Neutron  undertakes any such activity, Neutron shall complete the same in compliance

 

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with the applicable New Mexico State and Federal statutes and regulations and shall be liable to Lessor for any act (or failure to act) by it or any of its agents in connection with the amendment or relocation of claims that are not in governmental compliance.

 

2.                                       Upon request of Neutron, at any time during the term of this Agreement, Lessor agrees to undertake to obtain patent to any or all of the mining claims which are subject to this Agreement, as designated by Neutron, Neutron shall prepare all documents, compile all data, and comply in all respects with the applicable law, all at the expense of Neutron. Lessor shall execute any documents required for this purpose and shall cooperate fully with Neutron in the patent application and proceedings, time being of the essence. If Lessor begins patent proceedings and Neutron thereafter requests Lessor to discontinue such proceedings or if this Agreement is terminated while patent proceedings are pending, Neutron shall have no further obligation with respect thereto except to pay any unpaid expenses accrued in such proceedings prior its request to discontinue, or prior to termination, whichever comes first.

 

II. TERM

 

Unless sooner terminated as provided in this Agreement, the term of this Agreement shall be for a primary period of ten (10) years from the effective date and for a secondary period for so long thereafter as Neutron continues to make advance or production royalty payments. In no event, however, shall the term of this Agreement extend past seventy-five (75) years.

 

III. PAYMENTS TO LESSOR

 

A.                                    Signing Bonus.

 

Upon execution of this Agreement, Neutron shall pay Lessor a signing bonus of $315,000.00.

 

B.                                    Advance Royalty Payments.

 

1.                                       The advance royalty payments paid to Lessor under this Agreement shall be as follows:

 

	
Payment Due Date
    	
 
    	
Payment Amount
    	
 
    
	
February 1. 2007
    	
 
    	
$
    	
100,000.00
    	
 
    
	
February 1, 2008
    	
 
    	
$
    	
100,000.00
    	
 
    
	
February 1, 2009 and every twelve months   thereafter so long as this Agreement is in effect
    	
 
    	
$
    	
75,000.00
    	
 
    

 

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2.                                       The obligation of Neutron to make these advance royalty payments shall close upon the earlier of (a) Neutron’s purchase of Premises under Section XI.A.1 . or (b) termination of this Agreement under Section VI.

 

3.                                       The advance royalty, when paid to Lessor, will apply to the entire Premises and shall be deductible against future production royalties to be paid to Lessor regardless of the year in which advance royalty payments are made, i.e. advance payments can be carried over and credited against subsequent years, until the amount the advance royalty has been fully recovered by Neutron. Upon commencement of commercial production and every year thereafter, Neutron shall pay Lessor the greater of (i) the advance royalty or (ii) the production royalty. Within thirty (30) days after the end of the lease year, Neutron shall pay Lessor the difference between the advance royalty payment and the production royalty payment.

 

4.                                       In the event this Agreement is terminated, Neutron shall have no obligation to make any payment set forth above, the due date of which occurs after the date that this Agreement has become so terminated, and Neutron shall have no obligation to make any further payments in accordance with Paragraph C of this Section III except as to payment, if any, based upon production achieved prior to such termination but for which payment has not yet been made to Lessor.

 

C.                                    Production Royalty

 

1.                                       Neutron shall pay to Lessor according to Lessor; a production royalty of five percent (5%) based the gross market value of all Mineral Substances extracted from the Premises. Such royalty will be determined in the manner described in the Mineral Royalty definition which is attached as Exhibit “B” and incorporated in this Agreement and with each royalty payment acknowledged by an officer of Neutron.

 

2.                                       Neutron shall, however, have the right to mine amounts of Mineral Substances reasonably necessary for sampling, assaying, metallurgical testing and evaluation of the minerals potential of the Premises without initiating the obligation to make production royalty payments.

 

D.                                    Method of Making Payments.

 

1.                                      Any payments required to be made by Neutron may be made in cash or by check and shall be delivered in accordance with Section IX. In the event more than one individual or entity owns an interest in the Premises, and presuming all such owners are signatories to the Agreement, Neutron shall have the right to require all such owners to designate, from amongst themselves or otherwise, an authorized agent to receive all payments from Neutron. The designation of such authorized agent shall be effectuated by all such owners executing a Power of Attorney, the original of same to be provided to Neutron upon execution. Notwithstanding the execution and delivery of such Power of Attorney,

 

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Neutron shall have the option to pay each such owner his or her respective share of all payments, provided that all owners shall have previously signed a document evidencing their agreement concerning their respective ownership interests in the Premises. In the event that any of the owners cannot or will not accept payments, Neutron may deposit such payments in an escrow account for the benefit of such owner at a bank of Neutron’s choice located in the County of such owner’s residence, and notify such owner that such an account has been established, with the costs of establishing the escrow account deductible from the payment. Such deposit shall be deemed payment as to such owner for all purposes.

 

2.                                       In the event the payments should be made to other parties because of any transfers of any of the owners’ interests, payments tendered the transferor at the address shown in Section IX shall conclusively be deemed payment to the transferee until: (i) Neutron receives notice and evidence satisfactory to it from the transferor that its interest has been transferred and that payments should be made to the transferee; and (ii) Neutron receives proof that the transferee has complied with the terms of Section XI.

 

IV. TITLE MATTERS

 

A.                                    Representations and Warranties. Lessor represents and warrants to Neutron, which covenants and warranties shall survive any expiration or termination of this Agreement. the following: (i) that, subject to the paramount title of the United States, Lessor is lawfully seized of an estate in unpatented mining claims as set forth in Exhibit “A”; and (ii) that Lessor has the right and power to convey the same for the purposes of this Agreement; and (iii) that the same are free from all prior liens or encumbrances, other than as may be described in Exhibit “A” and the official records of McKinley County, State of New Mexico; and (iv) that Neutron shall have quiet and peaceable possession of the Premises; and (v) that Lessor has not committed, nor will Lessor in the future commit, any act or acts which will encumber or cause a lien to he placed against the Premises except subject and subordinate to the terms of this Agreement; and (vi) that Lessor has not caused or allowed the generation, treatment, storage, or disposal of hazardous substances on the Premises, except as provided by law. Lessor, after its own diligent inquiry, has no knowledge of the presence of hazardous substances on the Premises. Lessor further warrants that there are no threatened or pending environmental enforcement actions against it, and no environmental liens against the Premises.

 

B.                                    Title Defects, Defense, and Protection. At the request of Neutron at any time and at Neutron’s cost, Lessor shall cause a title search to be made covering all or any part of the Premises. Neutron shall be entitled to receive the abstracts and other evidences of title. If. (i) in the opinion of Neutron, Lessor’s title to all or any part of the Premises is defective or less than as represented in this Section IV, or (ii) Lessor’s title is contested or questioned by any person or entity, and Lessor is unable or unwilling to promptly correct the alleged defects, Neutron may, without obligation, attempt to perfect or defend Lessor’s title. Neutron shall use its best efforts to defend the Premises against the Rocca

 

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Honda mining claims asserted by David Miller in Sections 5 and 6, T. 13 N., R. 8 W. However, Neutron shall not be liable to Lessor if Neutron is unsuccessful in, withdraws from, or discontinues title litigation or other curative work. Time being of the essence, in the event Neutron does attempt to perfect or defend Lessor’s title, Lessor shall execute all documents and shall take such other actions as are reasonably necessary to assist Neutron in its efforts. If title is less than as represented in this Section IV, then one half of the costs and expenses of perfecting or defending title expended by Neutron shall be a credit against subsequent payments to be made to Lessor. Any improvement or perfection of title to the Premises shall inure to the benefit of Neutron in the same manner and to the same extent as if such improvement or perfection has been made prior to the execution of this Agreement.

 

C.                                    Lesser Interest. If Lessor’s title to all or any part of the Premises is less than the interest as described in Section IV,A, Neutron shall have the right, without waiving any other rights it may have, to reduce all payments to be made to Lessor hereunder to the same proportion.

 

D.                                    Acquisition of Outstanding Interest. Should Neutron, either in its own name or in the name of Lessor, institute any action for adverse possession, suit to quiet title, or other action aimed at obtaining title to the Premises, such title shall be acquired subject to this Agreement. Should Neutron elect to acquire any interest in the Premises from a party other than Lessor, the property rights so acquired shall accrue solely to Neutron. In such event, Lessor shall be entitled to no payment with respect to such property. Upon termination of this Agreement, such property shall belong to Neutron.

 

V. OBLIGATIONS OF NEUTRON

 

A.                                    Protection from Liens. Neutron shall, at its expense, allow no lien to remain on the Premises resulting from the operations of Neutron. However, Neutron shall not be required to remove any such lien so long as it is contesting the validity or the amount thereof.

 

B.                                    Indemnification and Insurance. Neutron shall protect Lessor against any damages arising out of Neutron’s operations on the Premises and shall indemnify Lessor against liability resulting from Neutron’ s operations on the Premises; provided, however, that Lessor or any agent acting on its behalf shall not have been a contributing cause to the event giving rise to any such damages. Neutron shall make Lessor a co-insured on Neutron’s comprehensive general liability insurance policy or policies, maintain such policy or policies in effect for at least so long as this Agreement remains in effect, and provide Lessor with a copy of such policy or policies. Notwithstanding any other provision of this Agreement, to the extent, if at all, that any provision requiring one party to indemnify another party or its agents or employees is found to be within the scope of or in any way subject to or conditioned upon consistency with (i) NMSA 1978, Sec. 56-7-1 (2003) for its enforceability, then such provision shall (A) not be construed or applied to require one party to indemnify, hold harmless, insure or defend the other party or its employees or agents against liability, claims, damages, losses or expenses, including attorney fees, arising out of bodily injury to persons or damage to property

 

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caused by or resulting from, in whole or in part, the negligence, act or omission of the indemnitee, its officers, employees or agents, (B) be enforced only to the extent that it is consistent with such Sec. 56-7-1, and (C) be deemed modified, if required to conform to such Sec, 56-7-1, and/or with (ii) NMSA 1978, Sec. 56-7-2 (2003) for its enforceability, then such provision shall (A) not be considered or applied to indemnify the indemnitee against loss or liability for damages arising from the sole or concurrent negligence of the indemnitee or its agents or employees, from the sole or concurrent negligence of an independent contractor who is directly responsible to the indemnitee, or from an accident that occurs in operations carried on at the direction or under the supervision of the indemnitee, an employee or representative of the indemnitee or in accordance with methods and means specified by the indemnitee or employees or representatives of the indemnitee, (B) shall be enforced only to the extent that it is consistent with such Sec. 567-2, and (C) be deemed modified, if required, to conform to such Sec.56-7-2.

 

C.                                    Taxes and Assessments.

 

1.                                       Except as provided for below, Neutron hereby covenants and agrees to pay promptly before delinquency all taxes and assessments that may be assessed during the continuance of this Agreement upon the Premises resulting from Neutron’s activities and products derived therefrom. However, Neutron shall always have the right to contest, in the courts or otherwise, either in its own name or in the name of Lessor, the validity or amount of any such taxes or assessments, or to take such other steps or proceedings as it may deem necessary to secure a cancellation, reduction, re-adjustment, or equalization thereof, before it shall be required to pay such taxes or assessments. Notwithstanding the foregoing, Neutron shall not permit any part of the Premises to be conveyed and title lost as the result of nonpayment of such taxes and assessments. Neutron shall provide Lessor with copies of all receipts evidencing payment of such taxes and assessments. It is agreed that should the Lessor receive tax bills or claims which are the responsibility of Neutron, they shall be promptly forwarded to Neutron for appropriate action.

 

2.                                       It is agreed that Neutron shall pay the above referenced taxes that are assessed from the date of this Agreement to its termination date. Nothing in the foregoing portion of this Section shall be construed to obligate Neutron to pay such portion of any tax as is based upon an assessment of improvements or erections made or placed on the Premises by Lessor. Neutron shall not be liable for any taxes levied or measured by income of Lessor or based upon payments made to Lessor by Neutron under this Agreement. This Section V.C. shall apply to any property owned or leased by Neutron upon which it stockpiles any mineral-bearing material whether or not such material is exclusively taken from the Premises or commingled with materials from other properties.

 

D.                                    Compliance with Laws and Regulations. Neutron shall perform all of its Operations on the Premises in a good and workmanlike manner and in compliance with all applicable federal, state, and local laws and regulations, including but not limited to those relating to environmental protection, reclamation and bonding. Notwithstanding any other provision

 

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of this Agreement, (i) this Section V.D. shall remain in effect, and Neutron shall perform all its obligations hereunder, following any expiration, termination or release of all or any part of this Agreement and (ii) Neutron shall at all times during and following the term of this Agreement be liable to Lessor for any and all expenses, claims and losses of, against or by Lessor resulting from any violation by Neutron of this Section V.D..

 

E.                                      Right of Access to the Premises. Neutron shall allow Lessor and representatives of Lessor, at their sole risk, access to the Premises for the purposes of viewing or inspecting Neutron’s operations, at times which, in Neutron’s discretion, do not unreasonably interfere with its operations. Lessor agrees to indemnify, protect, save, and hold harmless Neutron and its affiliated and direct and indirect parent corporations and their respective directors, partners, officers, employees, agents and corporate affiliates from and against any and all losses, costs, damages, expenses, attorney’s fees, claims, demands, liabilities, suits, and actions of every kind and character which may be imposed upon or incurred by Neutron and its affiliated and direct and indirect parent corporations and their respective directors, partners, officers, employees, agents or corporate affiliates on account of, or arising directly or indirectly from Lessor’s rights under this Section V.E.

 

F.                                      Delivery of Data. In the event of expiration or termination of this Agreement, Neutron shall furnish Lessor within 90 days after termination one (1) set of copies of all available noninterpretive data pertaining to the Premises and developed or prepared by or for Neutron and shall authorize and permit Lessor to take possession of any available core derived from the Premises, whether or not such core is stored on the Premises; provided, however, that Neutron shall in no event be liable to Lessor for loss of or damage to any such core or for the accuracy of any data furnished to Lessor.

 

G.                                    Good Standing Notice. Neutron shall maintain the Premises in good standing with the United States Department of the Interior, Bureau of Land Management. Neutron shall pay all annual maintenance fees due and assessed, on the Premises, by the Bureau of Land Management while this Agreement is in effect and or conducting reclamation, on the Premises, and shall provide Lessor proof of payment notice on or before August 15, of each year that this Agreement is in effect.

 

H.                                    Exploration and Development. Neutron shall be obligated to expend $250,000.00 during the twelve-month period following the execution of this Agreement and an additional $250,000.00 during the next twelve month period to explore and/or develop the Premises.

 

VI. TERMINATION

 

A.                                   Termination by Lessor. In the event Lessor considers that Neutron has not complied with any obligation hereunder, Lessor shall notify Neutron setting out specifically in what respect it is claimed that Neutron has breached this Agreement. If the alleged breach is not cured within sixty (60) days after notice is given, or if Neutron has not within that time either commenced to cure the alleged breach and does not thereafter diligently complete such cure, or challenges the legitimacy of the allegation, Lessor may terminate this Agreement by delivering to Neutron notice of such termination. Termination of this

 

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Agreement shall be the sole remedy of Lessor. Neither the service of any notice nor the doing of any acts by Neutron aimed to meet all or any of the alleged breaches shall be deemed an admission or presumption that Neutron has failed to perform all of its obligations under this Agreement.

 

B.                                    Termination by Neutron. Neutron shall have the right to terminate this Agreement-at any time with respect to all or a portion of the Premises by giving notice to Lessor. Upon such termination, all right, title, and interest of Neutron under this Agreement shall terminate with respect to that portion of the Premises released. Neutron shall be relieved of all further obligations set forth in this Agreement on the released acreage except those obligations, if any, which this Agreement explicitly states, and which have accrued prior to such termination. Any taxes, assessments, and governmental charges shall be prorated as of the termination date.

 

C.                                    Release. Upon termination of this Agreement, all properties leased hereunder will be returned to Lessor and a release, in recordable form, will be executed by Neutron for the benefit of Lessor in order to clear title to said properties.

 

D.                                    Removal of Property. Upon any termination or expiration of this Agreement, Neutron shall have a period of (1) year from and after the effective date of termination in which to remove from the Premises all of its machinery, buildings, structures, facilities. equipment, and other property of every nature and description erected, placed, or situated thereon, except foundations of a permanent nature, supports, track, and pipe placed in shafts, drifts, or openings in the Premises. Any property of Neutron not removed by the end of this one-year period shall become the property of Lessor and at Lessor’s sole discretion have the property removed at Neutron’s expense. Neutron shall have the right to keep a watchman on the Premises during this one-year period.

 

VII. LIENS

 

In the event that Lessor fails to promptly pay, when due, taxes, mortgages, or other liens levied against the Premises and payable by Lessor, Neutron shall have the right (but shall not he obligated) to pay such past due amounts and, if Neutron does so, Neutron shall be subrogated to all the rights of the holders thereof and Lessor shall reimburse Neutron for all such payments and for all related costs and expenses paid or incurred by Neutron (including, without limitation, related attorneys’ fees) within three months after the same are paid or incurred by Neutron. Any payments due Lessor under this Agreement may be credited by reimbursements due Neutron under this Section. The provisions of this Section VII shall survive any termination or expiration of this Agreement.

 

VIII. FORCE MAJEURE

 

Neutron shall not be liable for failure to perform any of its obligations, other than making any payments due under this Agreement, during any period in which performance is prevented, in whole or part, by causes herein termed “force majeure- but only if and to

 

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the extent that such causes (i) are not within the reasonable control of Neutron, (ii) are not caused by deliberate , wanton, reckless or negligent act or omission of Neutron or by failure of Neutron to perform any of its obligations under this Agreement, or (iii) could not have been prevented by Neutron acting promptly, prudently, diligently, carefully, in good faith, in accordance with this Agreement, and applicable law and regulations.. For purposes of this Agreement, the term “force majeure” shall include labor disputes; acts of God; action of the elements, including inclement weather, floods, slides, cave-ins, sinkholes, earthquakes, and drought; laws, rules, regulations, orders, directives, and requests of governmental bodies or agencies; delay, failure, or inability of suppliers or transporters of materials, parts, supplies, services, or equipment; contractor or subcontractor shortage of labor, transportation, materials, machinery, equipment, supplies, utilities, or services; accidents; breakdown of equipment, machinery, or facilities; judgments or orders of any court or federal, state or local agency; inability to obtain on reasonably acceptable terms or in reasonably acceptable time any public or private licenses, permits, or other authorizations; curtailment or suspension of activities to remedy or avoid an actual or alleged, .present, or future violation of federal, state, or local environmental standard; acts of war or conditions arising out of or contributable to war, whether declared or undeclared; riot; civil strife; fire; explosion; or any other cause whether similar or dissimilar to the foregoing, except for the inability to meet financial commitments. If Neutron desires to invoke the provisions of this Section VIII, Neutron shall give notice of the commencement of the circumstances giving rise to such force majeure. An event or occurrence shall not be deemed a “force majeure,” and no performance by Neutron shall be excused, on account of shortage or unavailability of funds or because the event or occurrence would cause performance to result in economic loss or in hardship or inequity or frustrate the purpose for which Neutron entered into this Agreement. The time for discharging Neutron’s obligations with respect to the prevented performance shall be extended for the period of force majeure. Neutron shall proceed promptly, prudently, diligently and in good faith to end any force majeure as soon as is practicable.

 

IX. NOTICES

 

Any required notice, payment, or other communication contemplated by this Agreement shall be in writing and shall be effective (i) when personally delivered at the below address; (ii) when delivered by electronic communication at Lessor’s telecopy number described below or at such other telecopy number as Lessor may designate in writing provided that such electronic communication is followed by a delivery by mail or by personal service to the below address; or (iii) when delivered by mail deposited in the United States mail, postage prepaid and registered or certified, with return receipt requested, and addressed to Lessor at the below address:

 

	
If   to Lessor:
    	
ENERDYNE   ENDY CLAIMS LLC
    
	
 
    	
12812   Piru Blvd. S.E.
    
	
 
    	
Alburquerque,   New Mexico 87123
    

 

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FAX   No. 1-505-292-5005
    
	
 
    	
 
    
	
If   to Neutron:
    	
NEUTRON   ENERGY, INC.
    
	
 
    	
6606   North Hillside Drive
    
	
 
    	
Paradise   Valley, Arizona 85253
    
	
 
    	
FAX   No.: 1-602-952-8650
    

 

Either Lessor or Neutron may change its mailing address for future notices by providing written notice to that effect to the other parties.

 

X. CONFIDENTIALITY

 

Lessor shall not, without the express written consent of Neutron, disclose any information concerning the terms of this Agreement or operations conducted under this Agreement, nor issue any press releases concerning the operations. However, if Lessor contemplates selling or assigning its interest, it shall have the right to disclose such information to a potential purchaser if it first obtains an agreement in writing from such third party, satisfactory to Neutron, providing that the third party shall hold confidential the information furnished to it.

 

Xl. ASSIGNMENTS AND TRANSFERS OF INTEREST

 

A.                                    By Lessor. Lessor shall have the right to transfer all or any portion of the Premises to others, provided that:

 

1.                                       The transfer shall be subject to this Agreement and to all rights of Neutron, its successors and assigns, under this Agreement in and to the Premises and the transferee agrees to this in writing prior to the transfer, however, in the event that the Lessor proposes to transfer any or all of the Premises or interests therein to others, Lessor shall provide notice to Neutron of all terms and conditions of the proposed transfer and Neutron shall have the first right to acquire any or all of said interests in the Premises from Lessor, on  the same terms and conditions agreed to between the Lessor and others, for a period of 60 days from the date that the notice is received by Neutron from the Lessor.

 

2.                                       No change or division in ownership of the Premises, however accomplished, shall operate to enlarge the obligations or diminish the rights of Neutron under this Agreement.

 

3.                                       No change or division in the ownership of the Premises shall be binding upon Neutron for any purpose until the person acquiring any interest has furnished Neutron with the instrument or instruments constituting his claim of title from the original seller.

 

B.                                    By Neutron. Neutron shall have the right at any time to assign all or any portion of its rights under this Agreement. No assignment, however, shall release Neutron from the

 

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performance of any of its obligations under this Agreement except if and to the extent that it is released from such obligations in a document executed by Lessor.

 

XII. NO EXPRESS OR IMPLIED COVENANTS

 

Nothing in this Agreement shall impose any obligations or covenants upon Neutron, express or implied, to conduct any mining operations upon the Premises, it being the intent of the parties that Neutron shall have the sole discretion to determine the economic feasibility, time, method, manner and rate of conducting any such operations, except as otherwise required by this Agreement.

 

XIII.                        BINDING EFFECT

 

The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their respective heirs, executors, administrators, personal representatives, beneficiaries, successors, and assigns.

 

XIV.                       MEMORANDUM

 

Neutron and LLessor shall execute a Memorandum of this Agreement in a recordable form sufficient under the laws of the State of New Mexico to give notice to third parties of the rights granted hereunder. Neutron shall have the right to record such Memorandum at any time.

 

XV.                           CONSTRUCTION OF AGREEMENT

 

This Agreement and its Exhibits constitute the sole understanding of the parties with respect to the Premises, all previous agreements between the parties concerning the Premises being expressly rescinded. This Agreement shall be subject to all valid and applicable provisions of statutory or common law, rules, and regulations. Should this Agreement or any of its provisions or operations be found to be contrary to any such valid law, rule, or regulation, the latter shall be deemed to control, and this Agreement shall be regarded as modified accordingly. Subject to the preceding sentence, no modification or alteration of this Agreement shall be effective unless in writing and executed by the parties.

 

XVI.                       HEADINGS

 

The headings appearing in this Agreement are inserted for convenient reference purposes only, and are not definitive as to the provisions contained within said Sections in the interpretation and construction of this Agreement.

 

XVII.       RULE AGAINST PERPETUITIES

 

As to any provision in this Agreement, the parties do not intend that there shall be any violation of the Rule Against Perpetuities or any related Rule. if any violation should inadvertently occur, it is the wish of the parties that the appropriate court reform such provision so as to approximate most closely the intent of the parties within the limits

 

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permissible under such Rule.

 

XVIII. APPLICABLE LAW

 

This Agreement shall be construed, interpreted and governed by the laws of the State of New Mexico.

 

	
 
    	
ENERDYNE   ENDY CLAIMS LLC,
    
	
 
    	
a   New Mexico Limited Liability Company
    
	
 
    	
   /s/   Don C. Hanosh
    
	
 
    	
Its   
    	
Member
    
	
 
    	
 
    
	
 
    	
NEUTRON   ENERGY, INC. a Wyoming Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
   /s/   Kelsey L. Boltz
    
	
 
    	
Its   
    	
President
    

 

State of AZ                        )

 

County of Pima                 )

 

The foregoing instrument was acknowledged before me this 1 day of Feb, 2006 by Don C. Hanosh, the Member of Enerdyne Endy Claims LLC, on behalf of the limited liability corporation.

 

	
(Seal   and Expiration Date)
    	
   /s/   Jennifer L. Buie
    
	
 
    	
Notary Public
    

 

 

State of AZ                        )

 

County of Pima                 )

 

The foregoing instrument was acknowledged before me this 1 day of Feb, 2006 by Kelsey L. Boltz, the President of Neutron Energy, Inc., on behalf of the corporation.

 

	
(Seal   and Expiration Date)
    	
   /s/   Jennifer L. Buie
    
	
 
    	
Notary Public
    

 

 

EXHIBIT A TO MINERAL LEASE AGREEMENT BETWEEN ENERDYNE ENDY CLAMIS LLC AND NEUTRON ENERGY, INC., DATED JANUARY 31, 2006

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
McKinley
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Cty Record
    	
 
    	
 
    
	
Claim Name
    	
 
    	
BLM Serial No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
Book
    	
 
    	
Page
    
	
Endy 1
    	
 
    	
NMMC171172
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8024
    
	
Endy 2
    	
 
    	
NMMC171173
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8025
    
	
Endy 3
    	
 
    	
NMMC171174
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8026
    
	
Endy 4
    	
 
    	
NMMC171175
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8027
    
	
Endy 5
    	
 
    	
NMMC171176
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8028
    
	
Endy 6
    	
 
    	
NMMC171177
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8029
    
	
Endy 8
    	
 
    	
NMMC171178
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8030
    
	
Endy 9
    	
 
    	
NMMC171179
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8031
    
	
Endy 10
    	
 
    	
NMMC171180
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8032
    
	
Endy 11
    	
 
    	
NMMC171181
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8033
    
	
Endy 12
    	
 
    	
NMMC171182
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8034
    
	
Endy 14
    	
 
    	
NMMC171183
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8035
    
	
Endy 15
    	
 
    	
NMMC171184
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8036
    
	
Endy 16
    	
 
    	
NMMC171185
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8037
    
	
Endy 17
    	
 
    	
NMMC171186
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8038
    
	
Endy 18
    	
 
    	
NMMC171187
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8039
    
	
Endy 19
    	
 
    	
NMMC171188
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8040
    
	
Endy 20
    	
 
    	
NMMC171189
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8041
    
	
Endy 21
    	
 
    	
NMMC171190
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8042
    
	
Endy 22
    	
 
    	
NMMC171191
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8043
    
	
Endy 23
    	
 
    	
NMMC171192
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8044
    
	
Endy 24
    	
 
    	
NMMC171193
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8045
    
	
Endy 25
    	
 
    	
NMMC171194
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8046
    
	
Endy 26
    	
 
    	
NMMC171195
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8047
    
	
Endy 27
    	
 
    	
NMMC171196
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8048
    
	
Endy 28
    	
 
    	
NMMC171197
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8049
    
	
Endy 29
    	
 
    	
NMMC171198
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8050
    
	
Endy 30
    	
 
    	
NMMC171199
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8051
    
	
Endy 31
    	
 
    	
NMMC171200
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8052
    
	
Endy 31
    	
 
    	
 
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Endy 32
    	
 
    	
NMMC171201
    	
 
    	
5
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8053
    
	
Endy 33
    	
 
    	
NMMC171202
    	
 
    	
5
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8054
    
	
Endy 34
    	
 
    	
NMMC171203
    	
 
    	
5
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8055
    

 

1

 

	
Endy 35
    	
 
    	
NMMC171204
    	
 
    	
5
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8056
    
	
Endy 36
    	
 
    	
NMMC171205
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8057
    
	
Endy 37
    	
 
    	
NMMC171206
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8058
    
	
Endy 38
    	
 
    	
NMMC171207
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8059
    
	
Endy 39
    	
 
    	
NMMC171208
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8060
    
	
Endy 40
    	
 
    	
NMMC171209
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8061
    
	
Endy 41
    	
 
    	
NMMC171210
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8062
    
	
Endy 42
    	
 
    	
NMMC171211
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8063
    
	
Endy 42
    	
 
    	
 
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Endy 43
    	
 
    	
NMMC171212
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8064
    
	
Endy 44
    	
 
    	
NMMC171213
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8065
    
	
Endy 45
    	
 
    	
NMMC171214
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8066
    
	
Endy 46
    	
 
    	
NMMC171215
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8067
    
	
Endy 47
    	
 
    	
NMMC171216
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8068
    
	
Endy 48
    	
 
    	
NMMC171217
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8069
    
	
Endy 49
    	
 
    	
NMMC171218
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8070
    
	
Endy 50
    	
 
    	
NMMC171219
    	
 
    	
5 & 8
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8071
    
	
Endy 51
    	
 
    	
NMMC171220
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8072
    
	
Endy 52
    	
 
    	
NMMC171221
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8073
    
	
Endy 53
    	
 
    	
NMMC171222
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8074
    
	
Endy 54
    	
 
    	
NMMC171223
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8075
    
	
Endy 54
    	
 
    	
 
    	
 
    	
32 & 33
    	
 
    	
14N
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Endy 55
    	
 
    	
NMMC171224
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8076
    
	
Endy 56
    	
 
    	
NMMC171225
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8077
    
	
Endy 57
    	
 
    	
NMMC171226
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8078
    
	
Endy 58
    	
 
    	
NMMC171227
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8079
    
	
Endy 59
    	
 
    	
NMMC171228
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8080
    
	
Endy 60
    	
 
    	
NMMC171229
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8081
    
	
Endy 61
    	
 
    	
NMMC171230
    	
 
    	
4 & 5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8082
    
	
Endy 62
    	
 
    	
NMMC171231
    	
 
    	
4,5,8&9
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8083
    
	
Endy 63
    	
 
    	
NMMC171232
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8084
    
	
Endy 64
    	
 
    	
NMMC171233
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8085
    
	
Endy 65
    	
 
    	
NMMC171234
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8086
    
	
Endy 66
    	
 
    	
NMMC171235
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8087
    
	
Endy 67
    	
 
    	
NMMC171236
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8088
    
	
Endy 68
    	
 
    	
NMMC171237
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8089
    
	
Endy 69
    	
 
    	
NMMC171238
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8090
    
	
Endy 70
    	
 
    	
NMMC171239
    	
 
    	
4 & 9
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8091
    
	
Endy 71
    	
 
    	
NMMC171240
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8092
    
	
Endy 72
    	
 
    	
NMMC171241
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8093
    
	
Endy 73
    	
 
    	
NMMC171242
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8094
    
	
Endy 74
    	
 
    	
NMMC171243
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8095
    

 

 

	
Endy 75
    	
 
    	
NMMC171244
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8096
    
	
Endy 76
    	
 
    	
NMMC171245
    	
 
    	
4
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8097
    
	
Endy 77
    	
 
    	
NMMC171246
    	
 
    	
4 & 9
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8098
    
	
Endy 78
    	
 
    	
NMMC171247
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8099
    
	
Endy 79
    	
 
    	
NMMC171248
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8100
    
	
Endy 80
    	
 
    	
NMMC171249
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8101
    
	
Endy 81
    	
 
    	
NMMC171250
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8102
    
	
Endy 82
    	
 
    	
NMMC171251
    	
 
    	
4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8103
    
	
Endy 83
    	
 
    	
NMMC171252
    	
 
    	
4 & 9
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8104
    
	
Endy 84
    	
 
    	
NMMC171253
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8105
    
	
Endy 85
    	
 
    	
NMMC171254
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8106
    
	
Endy 86
    	
 
    	
NMMC171255
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8107
    
	
Endy 87
    	
 
    	
NMMC171256
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8108
    
	
Endy 88
    	
 
    	
NMMC171257
    	
 
    	
3 & 4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8109
    
	
Endy 89
    	
 
    	
NMMC171258
    	
 
    	
3 & 4
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8110
    
	
Endy 90
    	
 
    	
NMMC171259
    	
 
    	
3,4,9&10
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8111
    
	
Endy 91
    	
 
    	
NMMC171260
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8112
    
	
Endy 92
    	
 
    	
NMMC171261
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8113
    
	
Endy 93
    	
 
    	
NMMC171262
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8114
    
	
Endy 94
    	
 
    	
NMMC171263
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8115
    
	
Endy 95
    	
 
    	
NMMC171264
    	
 
    	
5
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8116
    
	
Endy 96
    	
 
    	
NMMC171265
    	
 
    	
3
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8117
    
	
Endy 97
    	
 
    	
NMMC171266
    	
 
    	
3 & 10
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8118
    
	
Endy 98
    	
 
    	
NMMC171267
    	
 
    	
5 & 8
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8119
    
	
Endy 104
    	
 
    	
NMMC171268
    	
 
    	
3
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8120
    
	
Endy 105
    	
 
    	
NMMC171269
    	
 
    	
3 & 10
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8121
    
	
Endy 112
    	
 
    	
NMMC171270
    	
 
    	
3 & 10
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8122
    
	
Endy 122
    	
 
    	
NMMC171271
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8123
    
	
Endy 123
    	
 
    	
NMMC171272
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8124
    
	
Endy 124
    	
 
    	
NMMC171273
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8125
    
	
Endy 125
    	
 
    	
NMMC171274
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8126
    
	
Endy 126
    	
 
    	
NMMC171275
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8127
    
	
Endy 127
    	
 
    	
NMMC171276
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8128
    
	
Endy 128
    	
 
    	
NMMC171277
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8129
    
	
Endy 129
    	
 
    	
NMMC171278
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8130
    
	
Endy 130
    	
 
    	
NMMC171279
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8131
    
	
Endy 131
    	
 
    	
NMMC171280
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8132
    
	
Endy 132
    	
 
    	
NMMC171281
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8133
    
	
Endy 133
    	
 
    	
NMMC171282
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8134
    
	
Endy 134
    	
 
    	
NMMC171283
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8135
    
	
Endy 135
    	
 
    	
NMMC171284
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8136
    
	
Endy 136
    	
 
    	
NMMC171285
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8137
    

 

 

	
Endy 137
    	
 
    	
NMMC171286
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8138
    
	
Endy 138
    	
 
    	
NMMC171287
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8139
    
	
Endy 139
    	
 
    	
NMMC171288
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8140
    
	
Endy 140
    	
 
    	
NMMC171289
    	
 
    	
11 & 12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8141
    
	
Endy 141
    	
 
    	
NMMC171290
    	
 
    	
11 & 12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8142
    
	
Endy 142
    	
 
    	
NMMC171291
    	
 
    	
11 & 12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8143
    
	
Endy 143
    	
 
    	
NMMC171292
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8144
    
	
Endy 143
    	
 
    	
 
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
 
    	
 
    	
 
    
	
Endy 144
    	
 
    	
NMMC171293
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8145
    
	
Endy 145
    	
 
    	
NMMC171294
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8146
    
	
Endy 146
    	
 
    	
NMMC171295
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8147
    
	
Endy 147
    	
 
    	
NMMC171296
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8148
    
	
Endy 148
    	
 
    	
NMMC171297
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8149
    
	
Endy 149
    	
 
    	
NMMC171298
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8150
    
	
Endy 150
    	
 
    	
NMMC171299
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8151
    
	
Endy 151
    	
 
    	
NMMC171300
    	
 
    	
6 & 7
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8152
    
	
Endy 152
    	
 
    	
NMMC171301
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8153
    
	
Endy 152
    	
 
    	
 
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
 
    	
 
    	
 
    
	
Endy 153
    	
 
    	
NMMC171302
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8154
    
	
Endy 154
    	
 
    	
NMMC171303
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8155
    
	
Endy 155
    	
 
    	
NMMC171304
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8156
    
	
Endy 156
    	
 
    	
NMMC171305
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8157
    
	
Endy 157
    	
 
    	
NMMC171306
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8158
    
	
Endy 158
    	
 
    	
NMMC171307
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8159
    
	
Endy 159
    	
 
    	
NMMC171308
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8160
    
	
Endy 160
    	
 
    	
NMMC171309
    	
 
    	
6 & 7
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8161
    
	
Endy 161
    	
 
    	
NMMC171310
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8161 (8162)
    
	
Endy 161
    	
 
    	
 
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
 
    	
 
    	
 
    
	
Endy 162
    	
 
    	
NMMC171311
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8163
    
	
Endy 163
    	
 
    	
NMMC171312
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8164
    
	
Endy 164
    	
 
    	
NMMC171313
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8165
    
	
Endy 165
    	
 
    	
NMMC171314
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
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Endy 166
    	
 
    	
NMMC171315
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8167
    
	
Endy 167
    	
 
    	
NMMC171316
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8168
    
	
Endy 168
    	
 
    	
NMMC171317
    	
 
    	
6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8169
    
	
Endy 169
    	
 
    	
NMMC171318
    	
 
    	
6 & 7
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8170
    
	
Endy 170
    	
 
    	
NMMC171319
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8171
    
	
Endy 170
    	
 
    	
 
    	
 
    	
31 & 32
    	
 
    	
14N
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Endy 171
    	
 
    	
NMMC171320
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8172
    
	
Endy 172
    	
 
    	
NMMC171321
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8173
    
	
Endy 173
    	
 
    	
NMMC171322
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8174
    
	
Endy 174
    	
 
    	
NMMC171323
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8175
    

 

 

	
Endy 175
    	
 
    	
NMMC171324
    	
 
    	
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13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8176
    
	
Endy 176
    	
 
    	
NMMC171325
    	
 
    	
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13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8177
    
	
Endy 177
    	
 
    	
NMMC171326
    	
 
    	
5 & 6
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8178
    
	
Endy 178
    	
 
    	
NMMC171327
    	
 
    	
5,6,7&8
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8179
    
	
Endy 179
    	
 
    	
NMMC171328
    	
 
    	
3
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8180
    
	
Endy 180
    	
 
    	
NMMC171329
    	
 
    	
3
    	
 
    	
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23
    	
 
    	
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Endy 181
    	
 
    	
NMMC171330
    	
 
    	
3
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8182
    
	
Endy 182
    	
 
    	
NMMC171331
    	
 
    	
2 & 11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8183
    
	
Endy 183
    	
 
    	
NMMC171333
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8184
    
	
Endy 184
    	
 
    	
NMMC171333
    	
 
    	
32
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
23
    	
 
    	
8185
    

 

 

EXHIBIT B 
 ATTACHED TO THAT MINERAL LEASE AGREEMENT BETWEEN 
 ENERDYNE ENDY CLAIMS LLC AND NEUTRON ENERGY, INC., DATED 
 FEBRUARY 1, 2006

 

MINERAL ROYALTY

 

Article I. Definitions

 

Section 1.1 “Allowable Costs” shall mean, collectively, Allowable Sampling Costs, Allowable Taxes and Allowable Transportation Costs.

 

Section 1.2 “Allowable Sampling Costs” shall mean Neutron’s actual costs of weighing, sampling and assaying Products.

 

Section 1.3 “Allowable Taxes” shall mean production, severance, gross receipts, sales, excise, compensating, conservation, privilege and other taxes (except income and property taxes) imposed, levied or assessed on or measured by the price or value of Products and actually paid.

 

Section 1.4 “Allowable Transportation Costs” shall mean Neutron’s actual costs of transporting Products from the mine to a mill, ion exchange plant or other processing facility (each a “Processing Facility”) and from a Processing Facility to the point of sale (including, without limitation, actual packaging, freight, insurance, handling, demurrage, delay and forwarding costs incurred by reason of or in the course of such transportation).

 

Section 1.5 “By-Products” shall mean materials that do not have value chiefly for their uranium content but are derived from Mineral Substances, occur in intimate depositional relationship with uranium, and are recovered as secondary values during the mining, extraction, processing and treatment of Uranium-Bearing Products.

 

Section 1.6 “Mineral Substances” shall have the meaning attributed thereto in Section I.B.1. of the Mineral Lease Agreement of which this Exhibit “B” is a part (the “Agreement”).

 

Section 1.7 “Other Mineral Products” shall mean materials that are not By-Products and do not have value chiefly for their uranium content but are derived from Mineral Substances.

 

Section 1.8 “Premises” shall have the meaning attributed thereto in Section I.A. of the Agreement.

 

Section 1.9 “Products” shall mean, collectively, By-Products, Other Mineral Products and Uranium-Bearing Products.

 

 

Section 1.10 “Uranium-Bearing Products” shall mean the following that are derived from Mineral Substances: (i) uranium ore (“Ore”); (ii) uranium-bearing mine water, leachate, pregnant liquor, pregnant slurry, concentrated slurry and precipitate (collectively, “Liquids”); and (iii) uranium concentrate in the form commonly known as “yellowcake” and other valuable materials produced by processing Ore or Liquids in a Processing Facility (collectively, “Yellowcake”).

 

Article II. Definitions of Gross Market Value

 

Section 2.1. Uranium-Bearing Products.

 

(a)  In the event Neutron sells Ore, “Gross Market Value” shall mean actual sale proceeds less Allowable Costs properly attributable thereto.

 

(b)  In the event Neutron sells Liquids, “Gross Market Value” shall mean actual sale proceeds less (i) Neutron’s actual processing costs after extraction from shafts or wells but prior to sale and (ii) Allowable Costs properly attributable thereto.

 

(c)  In the event Neutron sells neither Ore nor Liquids and instead processes the same in a Processing Facility owned or controlled by it or on a custom or toll basis and sells Yellowcake, “Gross Market Value” shall mean actual sale proceeds less (i) Neutron’s actual processing costs after extraction from shafts or wells but prior to sale and (ii) Allowable Costs properly attributable thereto.

 

Section 2.2 By-Products; Other Mineral Products. In the event Neutron sells By-Products or Other Mineral Products, “Gross Market Value” shall mean actual sale proceeds less (i) Neutron’s actual costs of treating, beneficiating, upgrading and processing after extraction from shafts or wells but prior to sale and (ii) Allowable Costs properly attributable thereto.

 

Section 2.3 Disposal Without Sale. Notwithstanding any other provision in this Exhibit B, in the event Neutron (i) sells Products to an affiliate, partner or joint venturer; (ii) further treats, beneficiates, upgrades, refines or enriches Yellowcake or Products in a Processing Facility owned or controlled by it or on a custom or toll basis; or (iii) disposes of the same in kind without a sale, such Products or Yellowcake shall be deemed to be disposed of and “Gross Market Value,” as hereinafter defined in this Section 2.4, shall apply thereto.

 

(a) In the event of a disposal without sale of any material that has value chiefly for its uranium content, “Gross Market Value” shall mean the “Market Value of U3O8” (as hereinafter defined in this Section 2.3(a)) multiplied by the amount (stated in pounds) of uranium oxide (U308)) contained in the Ore or Compounds from which the material was derived less (i) Neutron’s actual processing costs after extraction from shafts or wells but prior to disposition and (ii) Allowable Costs properly allocated thereto. “Market Value of U3O8” shall mean the weighted average price per pound of U3O8 received by Neutron

 

 

for sales of Yellowcake in the three-month period immediately preceding the calendar month of such disposal without sale. In the event Neutron has not sold Yellowcake during such three-month period, “Market Value of U308” shall mean the “Exchange Value (Monthly U308 Spot)” (or, if prices are no longer reported as “Exchange Value (Monthly U308 Spot),” the substantial equivalent thereof), of uranium concentrates reported in the last issue of Nuclear Review published by TradeTech, LLC of Denver, Colorado in the calendar month of such disposal without sale. In the event that such price or its substantial equivalent is not so published, then “Market Value of U308” shall mean the price for uranium concentrates offered for sale for immediate delivery reported in such other publication as is generally recognized in the uranium mining industry as accurately reflecting the price at which uranium concentrate is currently being offered for such sale. In the absence of such other publication, then “Market Value of U308” shall be the mean of the domestic prices at which uranium concentrate was most recently offered for sale for immediate delivery from the Processing Facility nearest the Premises. In the event such price is unavailable from said mill or other facility, then “Market Value of U308” shall be determined by such other means as may establish such prices at the mean of the domestic prices at which uranium concentrate is currently being offered for sale for immediate delivery.

 

(b) In the event of disposal without sale of By-Products or Other Mineral Products, “Gross Market Value” shall mean the “Market Value” (as hereinafter defined in this Section 2.3(b)) thereof multiplied by the amount of such By-Products or Other Mineral Products disposed of without sale less Neutron’s actual processing costs after extraction from shafts or wells but prior to disposition and (ii) Allowable Costs properly allocated thereto. “Market Value” shall mean the average weighted price received by Neutron from the sale of material of equivalent types and mineral content during the three-month period immediately preceding the calendar month of such disposal without sale. In the event Neutron has no such sale during such three-month period, “Market Value” shall mean the domestic price for such materials for immediate delivery during the month of such disposal without sale as reported in the last issue of platts Metals Week published by McGraw-Hill Companies during the calendar month of such disposal without sale. In the event that such price (or its substantial equivalent) is not so published, then “Market Value” shall be the mean of domestic prices for materials of equivalent types and mineral contents for sale for immediate delivery during the month of such disposal without sale reported in such other publication as is generally recognized in the mining industry as accurately reflecting the price at which such material is currently being offered for sale for immediate delivery. In the absence of such a publication, then “Market Value” shall be determined by such other means as may establish such prices at the mean of the domestic prices at which such material is currently being offered for sale for immediate delivery.

 

Section 2.4 Other Consideration Relating to Claims and Agreements. In the event Neutron or any affiliate or partner of Neutron or joint venturer with Neutron receives any monetary or other consideration as a result of any (i) judgment or settlement of any common law, contractual, statutory or administrative claim relating to the sale or other disposition of any material derived from Mineral Substances or (ii) agreement to

 

 

cancel or modify any agreement relating to such sale or other disposition, “Gross Market Value” shall mean the amount of such consideration less the actual costs and expenses incurred by Neutron or any affiliate, partner or joint venturer in obtaining such consideration.

 

Article III. Time for Paying Production Royalties

 

Production royalties payable pursuant to Section 2.1, Section 2.2 or Section 2.3 of this Exhibit B shall be paid before the last day of the month next following the month of sale or disposition without sale, as the case may be. Royalties payable pursuant to Section 2.4 shall be paid within twenty days after the end of the month in which a judgment is no longer subject to appeal or a settlement or agreement is made, as the case may be.

 

Article IV. Settlement Sheet to Accompany Production Royalty Payment

 

Each payment of production royalty shall be accompanied by a settlement sheet signed and attested to by an officer of Neutron setting forth all data required for the calculation of the royalty paid and explaining how such royalty was calculated.Exhibit 10.40

 

MINERAL LEASE AGREEMENT

 

THIS Mineral Lease Agreement (“Agreement”), by and between James A. Bonner and Julianne K. Bonner as to an undivided one hundred-percent (100%) interest, whose address is 1925 Quail Run Drive N.E., Albuquerque, New Mexico 87122, (hereinafter referred to as “Lessors”), and NEUTRON ENERGY, INC., a Wyoming corporation, whose mailing address is 6606 North Hillside Drive, Paradise Valley, Arizona 85253, (hereinafter referred to as “Neutron”), is entered into and made effective as of June 1, 2006.

 

I.     RIGHTS GRANTED

 

Lessors grant, demise, lease, and let to Neutron and its successors and assigns the following rights, powers, and privileges:

 

A.                                     Premises. The interest in the real property described in the attached Exhibit “A” which is incorporated by this reference (“Premises”) and all rights, improvements. privileges, hereditaments, and appurtenances belonging or in any way appertaining to the Premises. including all ores, minerals, materials, and mineral rights, except oil and gas. The Premises consist of the 235 unpatented mining claims (“Mining Claims”) and State Mining Lease No. 14G-0078 (“State Mining Lease”) listed in attached Exhibit “A”

 

B.                                     Mining Rights and Access.

 

1.                                       Lessors make no representations as to its ownership of surface rights to the Premises, which are owned by either the U.S. Government, the State of New.. Mexico, or private third parties. However, with respect to the rights that Lessors have as a holders of federal mining claims and as State of New Mexico mineral lease holders, Lessors grant to Neutron the free, exclusive, unrestricted. uninterrupted right of access, ingress and egress to the Premises, and the right to enter upon and occupy the Premises for all purposes reasonably incident to exploring for, developing, mining (by underground mining, surface mining, strip mining, or any other surface or subsurface method, including any method later developed), in-situ leaching, extracting, milling, stockpiling, storing, processing, removing and marketing therefrom all merchantable and nonmerchantable ores, metals, minerals, mineral products and materials of every nature or sort, and all other materials or substances of any nature whatsoever found in natural deposits (“Mineral Substances”), and the right to place, construct, maintain, use. and thereafter remove such structures, facilities, equipment, roadways, haulage ways, and other improvements as may be necessary, useful, or convenient for the full enjoyment of all of the rights granted under this Agreement.

 

“These rights are granted and may be utilized for the purpose or in the course of carrying on exploration or mining operations on any other adjoining properties to the Premises in which Neutron may have or acquire any right and/or interest and may desire to reach or mine directly or indirectly through the Premises.

 

1

 

C.            Cross Mining.

 

1.                                       The right, if it so desires, to mine and remove any Mineral Substances existing on or under the Premises through or by means of shafts, openings, or pits which may he sunk or made upon adjoining and nearby property, and the right to stockpile any Mineral Substances from the Premises upon grounds situated upon any such properties.

 

2.                                       In addition, Neutron may use the Premises for any shafts, openings, pits and stockpile-grounds sunk or made for the mining, removal, and/or stockpiling of any Mineral Substances from any adjoining or nearby property. Mineral Substances taken from the Premises shall at all times be kept entirely separate and distinct from any other ore or concentrated product until the same are measured and sampled so that the rights of Lessors shall be at all times preserved and protected.

 

D.                                    Commingling. Neutron shall have the right to commingle ore and minerals from the Premises with ore from other lands and properties: provided, however, that Neutron shall calculate from representative samples the average grade of the ore and shall weigh (or calculate by volume) the ore before commingling. If concentrates, ore, or any other processed, beneficiated, or refined mineral products (“Concentrates”) are produced from the commingled ores by Neutron, Neutron shall also calculate from representative samples the average recovery percentage for all such concentrates produced during the calendar quarter and shall allocate a percentage of concentrate production to Lessors according to such calculations. In obtaining representative samples and calculating the average grade of the ore and average recovery percentages, Neutron may use any procedures 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 fraud, its choice of such procedures shall be final and binding on Lessors. In addition, comparable procedures may be used by Neutron to apportion among the commingled ores penalty charges, if any, imposed by the purchaser of such ore or concentrates.

 

E.                                      Water Rights. The right to use any and all of Lessors’ water rights on, about, under, or which is appurtenant to the Premises or to which the Premises are riparian.

 

F.                                      Deposit of Waste Materials. The right to temporarily or permanently deposit tailings slurry, waste rock, overburden, surface stripping, process solutions and all other materials from the Premises or from adjoining or nearby properties on or off the Premises, even if the sole use of the Premises may be for the placement of such materials.

 

C.                                    Treatment. The right, at Neutron’s election and in any manner it deems fit. to beneficiate, concentrate, process and/or otherwise treat any Mineral Substances taken from the Premises by any physical or chemical method. In exercising this right, Mineral Substances may be removed to a plant or plants established or maintained either upon the Premises or elsewhere.

 

2

 

H.            Amendment, Relocation, and Patent of Claims.

 

1.                                       Neutron, in its sole discretion, shall have the right to amend or relocate as unpatented mining claims or unpatented millsites, in the name of Lessors, any unpatented mining claims which are subject to this Agreement. If Neutron undertakes any such activity, Neutron shall complete the same in compliance with the applicable New Mexico State and Federal statutes and regulations and shall be liable to Lessors for any act (or failure to act) by it or any of their agents in connection with the amendment or relocation of claims that are not in governmental compliance. If Neutron shall replace unpatented mining claims with unpatented millsites, it will do so only after condemning the economic mineral potential of the unpatented mining claims in accordance with standards exercised within the minerals industry.

 

2.                                       Upon request of Neutron, at any time during the term of this Agreement, Lessors agree to undertake to obtain patent to any or all of the mining claims which are subject to this Agreement, as designated by Neutron, Neutron shall prepare all documents, compile all data, and comply in all respects with the applicable law, all at the expense of Neutron. Lessors shall execute any documents required for this purpose and shall cooperate fully with Neutron in the patent application and proceedings, time being of the essence. If Lessors begin patent proceedings and Neutron thereafter requests Lessors to discontinue such proceedings or if this Agreement is terminated while patent proceedings are pending, Neutron shall have no further obligation with respect thereto except to pay any unpaid expenses accrued in such proceedings prior to its request to discontinue, or prior to termination, whichever comes first.

 

II.     TERM

 

Unless sooner terminated as provided in this Agreement, the term of this Agreement shall be for a primary period of ten (10) years from the effective date and for a secondary period for so long thereafter as Neutron continues to make advance or production royalty payments. In no event, however, shall the term of this Agreement extend past seventy-five (75) years.

 

III. PAYMENTS TO LESSORS 

 

A.            Stock Issue and Rental Payments.

 

Upon execution of this Agreement, Neutron shall (1) pay Lessors a rental payment of $180,000.00 and (2) issue to Lessors 65,000 shares of Neutron Energy, Inc common stock. On the first anniversary of this Agreement, Neutron shall pay Lessors a rental payment of $180,000.00. On each of the second through fifth anniversaries of the Agreement, Neutron shall pay Lessors $120,000.

 

In the event that the commercial production is achieved during the rental period, then all future rental payments received after commercial production begins will be credited as minimum advance royalty payments under Paragraph B of this Section III.

 

3

 

B.            Advance Royalty Payments.

 

1.                                       The advance royalty payments paid to Lessors under this Agreement shall be as follows: On the sixth anniversary of this Agreement and on each anniversary thereafter during which this Agreement is in force, Neutron shall pay Lessors an advance royalty payment of $240,000.

 

2.                                       The obligation of Neutron to make these advance royalty payments shall close upon the earlier of (a) Neutron’s purchase of Premises under Section XI.A.1. or (b) termination of this Agreement under Section VI.

 

3.                                       The advance royalty, when paid to Lessors, will apply to the entire Premises and shall be deductible against future production royalties to be paid to Lessors regardless of the year in which advance royalty payments are made, i.e. advance payments can be carried over and credited against subsequent years, until the amount the advance royalty has been fully recovered by Neutron. Upon commencement of commercial production and every year thereafter, Neutron shall pay Lessors the advance royalty payment described in Section III.B.1 plus the amount of the production royalty (adjusted for prior year’s advance royalty payments described above) in excess of the amount of the advance royalty payment.

 

4.                                       In the event this Agreement is terminated, Neutron shall have no obligation to make any payment set forth above, the due date of which occurs after the date that this Agreement has become so terminated, and Neutron shall have no obligation to make any further payments in accordance with Paragraph C of this Section III except as to payment, if any, based upon production achieved prior to such termination but for which payment has not yet been made to Lessors.

 

C.            Production Royalty

 

With respect to the that portion of the Premises covered by the unpatented mining claims as listed in Exhibit A hereto, Neutron shall pay to Lessors, a production royalty of five percent (5%), the definition of such royalty being described in Exhibit B hereto.

 

2.                                       Neutron shall, however, have the right to mine amounts of Mineral Substances reasonably necessary for sampling, assaying, metallurgical testing and evaluation of the minerals potential of the Premises without initiating the obligation to make production royalty payments.

 

3.                                       Neutron shall meet all royalty obligations under the State Mining Lease. With respect to “Special Minerals” extracted from the State Mining Lease Land within the Premises, Neutron will pay Lessors a one percent (1%) production royalty as defined by Exhibit B hereto. With respect to all “Other Minerals” extracted from the State Mining Lease land within the Premises, Neutron will pay Lessors a five

 

4

 

per cent (5%) production royalty as defined by Section III.C.1 less the production royalty due to the State of New Mexico as defined by the State Mining Lease.

 

D.            Method of Making Payments.

 

1.                                       Any payments required to be made by Neutron may be made in cash or by check and shall be delivered in accordance with Section IX. In the event more than one individual or entity owns an interest in the Premises, and presuming all such owners are signatories to the Agreement, Neutron shall have the right to require all such owners to designate, from amongst themselves or otherwise, an authorized agent to receive all payments from Neutron. The designation of such authorized agent shall be effectuated by all such owners executing a Power of Attorney, the original of same to be provided to Neutron upon execution. Notwithstanding the execution and delivery of such Power of Attorney, Neutron shall have the option to pay each such owner his or her respective share of all payments, provided that all owners shall have previously signed a document evidencing their agreement concerning their respective ownership interests in the Premises. In the event that any of the owners cannot or will not accept payments. Neutron may deposit such payments in an escrow account for the benefit of such owner at a bank of Neutron’s choice located in the County of such owner’s residence, and notify such owner that such an account has been established, with the costs of establishing the escrow account deductible from the payment. Such deposit shall be deemed payment as to such owner for all purposes.

 

2.                                       In the event the payments should be made to other parties because of any transfers of any of the owners’ interests, payments tendered the transferor at the address shown in Section IX shall conclusively be deemed payment to the transferee until: (i) Neutron receives notice and evidence satisfactory to it from the transferor that its interest has been transferred and that payments should be made to the transferee; and (ii) Neutron receives proof that the transferee has complied with the terms of Section XI.

 

IV. TITLE MATTERS

 

A.                                   Representations and Warranties. Lessors represent and warrant to Neutron, which covenants and warranties shall survive any expiration or termination of this Agreement. the following: (i) that James A. Bonner is the Lessee under the State Mining Lease and, subject to the paramount title of the United States, Lessors are lawfully seized of an estate in the Mining Claims, as set forth in Exhibit “A”; and (ii) that Lessors have the right and power to convey the same for the purposes of this Agreement; and (iii) that the same are free from all prior liens or encumbrances, other than as may be described in Exhibit “A” and the official records of McKinley County, State of New Mexico; and (iv) that Neutron shall have quiet and peaceable possession of the Premises; and (v) that Lessors have not committed, nor will Lessors in the future commit, any act or acts which will encumber or cause a lien to be placed against the Premises except subject and subordinate to the terms

 

5

 

of this Agreement; and (vi) that the State Mining Lease is valid and in good standing;and (vii) that Lessors have not caused or allowed the generation, treatment, storage, or disposal of hazardous substances on the Premises, except as provided by law.

 

B.                                    Title Defects, Defense, and Protection. At the request of Neutron at any time and at Neutron’s cost, Lessors shall cause a title search to be made covering all or any part of the Premises. Neutron shall be entitled to receive the abstracts and other evidences of title. If, (i) in the opinion of Neutron, Lessors’ title to all or any part of the Premises is defective or less than as represented in this Section IV, or (ii) Lessors’ title is contested or questioned by any person or entity, and Lessors are unable or unwilling to promptly correct the alleged defects, Neutron may, without obligation, attempt to perfect or defend Lessors’ title. However, Neutron shall not be liable to Lessors if Neutron is unsuccessful in, withdraws from, or discontinues title litigation or other curative work. Time being of the essence, in the event Neutron does attempt to perfect or defend Lessors’ title, Lessors shall execute all documents and shall take such other actions as are reasonably necessary to assist Neutron in its efforts. If title is less than as represented in this Section IV. then one half of the costs and expenses of perfecting or defending title expended by Neutron shall be a credit against subsequent payments to be made to Lessors. Any improvement or perfection of title to the Premises shall inure to the benefit of Neutron in the same manner and to the same extent as if such improvement or perfection has been made prior to the execution of this Agreement.

 

C.                                    Lesser Interest. If Lessors’ title to all or any part of the Premises is less than the interest as described in Section IV.A, Neutron shall have the right, without waiving any other rights it may have, to reduce all payments to be made to Lessors hereunder to the same proportion based on the percentage of the total acreage of Premises described in Exhibit A.

 

D.                                    Acquisition of Outstanding Interest. Should Neutron, either in its own name or in the name of Lessors, institute any action for adverse possession, suit to quiet title, or other action aimed at obtaining title to the Premises, such title shall be acquired subject to this Agreement. Should Neutron elect to acquire any interest in the Premises from a party other than Lessors, the property rights so acquired shall accrue solely to Neutron. In such event, Lessors shall be entitled to no payment with respect to such property. Upon termination of this Agreement, such property shall belong to Neutron.

 

E.                                      State Mining Lease Assignment. Lessors shall cooperate, and execute all documents required, in the assignment of the State Mining Lease to Neutron.

 

V. OBLIGATIONS OF NEUTRON

 

A.                                    Protection from Liens. Neutron shall, at its expense, allow no lien to remain on the Premises resulting from the operations of Neutron. However, Neutron shall not be

 

6

 

required to remove any such lien so long as it is contesting the validity or the amount thereof.

 

B.                                    Indemnification and Insurance. Neutron shall protect Lessors against any damages arising out of Neutron’s operations on the Premises and shall indemnify Lessors against liability resulting from Neutron’ s operations on the Premises; provided, however, that Lessors or any agent acting on its behalf shall not have been a contributing cause to the event giving rise to any such damages. Neutron shall make Lessors a co-insured on Neutron’s comprehensive general liability insurance policy or policies, maintain such policy or policies in effect for at least so long as this Agreement remains in effect, and provide Lessors with a copy of such policy or policies. Notwithstanding any other provision of this Agreement, to the extent, if at all, that any provision requiring one party to indemnify another party or its agents or employees is found to be within the scope of or in any way subject to or conditioned upon consistency with (i) NMSA 1978, Sec. 567-1 (2003) for its enforceability, then such provision shall (A) not be construed or applied to require one party to indemnify, hold harmless, insure or defend the other party or its employees or agents against liability, claims, damages, losses or expenses, including attorney fees, arising out of bodily injury to persons or damage to property caused by or resulting from, in whole or in part, the negligence, act or omission of the indemnitee, its officers, employees or agents, (B) be enforced only to the extent that it is consistent with such Sec. 56-7-1, and (C) be deemed modified, if required to conform to such Sec, 56-71, and/or with (ii) NMSA 1978, Sec. 56-7-2 (2003) for its enforceability, then such provision shall (A) not be considered or applied to indemnify the indemnitee against loss or liability for damages arising from the sole or concurrent negligence of the indemnitee or its agents or employees, from the sole or concurrent negligence of an independent contractor who is directly responsible to the indemnitee, or from an accident that occurs in operations carried on at the direction or under the supervision of the indemnitee, an employee or representative of the indemnitee or in accordance with methods and means specified by the indemnitee or employees or representatives of the indemnitee, (B) shall be enforced only to the extent that it is consistent with such Sec. 56-7-2, and (C) be deemed modified, if required, to conform to such Sec.56-7-2.

 

C.                                    Taxes and Assessments.

 

1.                                       Except as provided for below, Neutron hereby covenants and agrees to pay promptly before delinquency all taxes and assessments that may be assessed during the continuance of this Agreement upon the Premises resulting from Neutron’s activities and products derived therefrom. However, Neutron shall always have the right to contest, in the courts or otherwise, either in its own name or in the name of Lessors, the validity or amount of any such taxes or assessments, or to take such other steps or proceedings as it may deem necessary to secure a cancellation, reduction, re-adjustment, or equalization thereof, before it shall be required to pay such taxes or assessments. Notwithstanding the foregoing, Neutron shall not permit any part of the Premises to be conveyed and title lost as the result of nonpayment of such taxes and assessments. Neutron shall provide Lessors with copies of all receipts evidencing payment of such taxes and assessments. It is agreed that should the Lessors receive tax bills or claims which

 

7

 

are the responsibility of Neutron, they shall be promptly forwarded to Neutron for appropriate action.

 

2.                                       It is agreed that Neutron shall pay the above referenced taxes that are assessed from the date of this Agreement to its termination date. Nothing in the foregoing portion of this Section shall be construed to obligate Neutron to pay such portion of any tax as is based upon an assessment of improvements or erections made or placed on the Premises by Lessors. Neutron shall not be liable for any taxes levied or measured by income of Lessors or based upon payments made to Lessors by Neutron under this Agreement. This Section V.C. shall apply to any property owned or leased by Neutron upon which it stockpiles any mineral-bearing material whether or not such material is exclusively taken from the Premises or commingled with materials from other properties.

 

D.                                    Compliance with Laws and Regulations. Neutron shall perform all of its operations on the Premises in a good and workmanlike manner and in compliance with all applicable federal, state, and local laws and regulations, including but not limited to those relating to environmental protection, reclamation and bonding. Notwithstanding any other provision of this Agreement, (i) this Section V.D. shall remain in effect, and Neutron shall perform all its obligations hereunder, following any expiration, termination or release of all or any part of this Agreement and (ii) Neutron shall at all times during and following the term of this Agreement be liable to Lessors for any and all expenses, claims and losses of, against or by Lessors resulting from any violation by Neutron of this Section V.D.

 

E.                                      Right of Access to the Premises. Neutron shall allow Lessors and representatives of Lessors, at their sole risk, access to the Premises for the purposes of viewing or inspecting Neutron’s operations, at times which, in Neutron’s discretion, do not unreasonably interfere with its operations. Lessors agree to indemnify, protect, save. and hold harmless Neutron and its affiliated and direct and indirect parent corporations and their respective directors, partners, officers, employees, agents and corporate affiliates from and against any and all losses, costs, damages, expenses, attorney’s fees, claims, demands, liabilities, suits, and actions of every kind and character which may be imposed upon or incurred by Neutron and its affiliated and direct and indirect parent corporations and their respective directors, partners, officers, employees, agents or corporate affiliates on account of, or arising directly or indirectly from Lessors’ rights under this Section V . E.

 

F.                                      Delivery of Data. In the event of expiration or termination of this Agreement, Neutron shall furnish Lessors within 90 days after termination one (1) set of copies of all available non-interpretive data pertaining to the Premises and developed or prepared by or for Neutron and shall authorize and permit Lessors to take possession of any available core or other drill cuttings derived from the Premises, whether or not such core or cuttings is stored on the Premises; provided, however, that Neutron shall in no event be liable to lessors for loss of or damage to any such core or cuttings or for the accuracy of any data furnished to Lessors.

 

8

 

G.                                    Good Standing Notice. Neutron shall maintain the Premises in good standing with the United States Department of the Interior, Bureau of Land Management and, as applicable, with the State of Mexico. Neutron shall pay all annual maintenance fees, rentals and advance royalties due and assessed, on the Premises, by the Bureau of Land Management and by the State of New Mexico while this Agreement is in effect and or conducting reclamation, on the Premises, and shall provide Lessors proof of payment notice on or before June 30 of each year that this Agreement is in effect. Neutron shall also record all records of notice of intent to hold mining claims and other legal instruments requiring recordation with McKinley County, New Mexico.

 

VI. TERMINATION

 

A.                                    Termination by Lessors. In the event Lessors consider that Neutron has not complied with any obligation hereunder, Lessors shall notify Neutron setting out specifically in what respect it is claimed that Neutron has breached this Agreement. If the alleged breach is not cured within sixty (60) days after notice is given, or if Neutron has not within that time either commenced to cure the alleged breach and does not thereafter diligently complete such cure, or challenges the legitimacy of the allegation, Lessors may terminate this Agreement by delivering to Neutron notice of such termination. Termination of this Agreement shall be the sole remedy of Lessors. Neither the service of any notice nor the doing of any acts by Neutron aimed to meet all or any of the alleged breaches shall be deemed an admission or presumption that Neutron has failed to perform all of its obligations under this Agreement.

 

B.                                    Termination by Neutron. Neutron shall have the right to terminate this Agreement at any time with respect to all or a portion of the Premises by giving notice to Lessors. Upon such termination, all right, title, and interest of Neutron under this Agreement shall terminate with respect to that portion of the Premises released. Neutron shall be relieved of all further obligations set forth in this Agreement on the released acreage except those obligations, if any, which this Agreement explicitly states, and which have accrued prior to such termination. Any taxes, assessments, and governmental charges shall be prorated as of the termination date. However, Neutron is required to make all payments  related to the Bureau of Land Management annual mining claim maintenance fees if this Agreement is terminated after June 30 of the last year the Agreement is in  effect.

 

C.                                    Release. Upon termination of this Agreement, all properties leased hereunder will he returned to Lessors and a release, in recordable form, will be executed by Neutron for the benefit of Lessors in order to clear title to said properties.

 

D.                                    Removal of Property. Upon any termination or expiration of this Agreement, Neutron shall have a period of (1) year from and after the effective date of termination in which to remove from the Premises all of its machinery, buildings, structures, facilities, equipment, and other property of every nature and description erected, placed, or situated thereon, except foundations of a permanent nature, supports, track, and pipe placed in shafts, drifts, or openings in the Premises. Any property of Neutron not removed by the

 

9

 

end of this one-year period shall become the property of Lessors and at Lessors’ sole discretion have the property removed at Neutron’s expense. Neutron shall have the right to keep a watchman on the Premises during this one-year period.

 

E.                                      Reassignment of State Mining Lease. Upon any termination or expiration of this Agreement, Neutron shall cooperate, and execute all documents required, in the reassignment of the State Mining Lease to Lessors.

 

VII. LIENS

 

In the event that Lessors fail to promptly pay, when due, taxes, mortgages, or other liens levied against the Premises and payable by Lessors, Neutron shall have the right (but shall not be obligated) to pay such past due amounts and, if Neutron does so, Neutron shall be subrogated to all the rights of the holders thereof and Lessors shall reimburse Neutron for all such payments and for all related costs and expenses paid or incurred by Neutron (including, without limitation, related attorneys’ fees) within three months after the same are paid or incurred by Neutron. Any payments due to Lessors under this Agreement may be credited by reimbursements due to Neutron under this Section. The provisions of this Section VII shall survive any termination or expiration of this Agreement.

 

VIII. FORCE MAJEURE

 

Neutron shall not be liable for failure to perform any of its obligations, other than making any payments due under this Agreement, during any period in which performance is prevented, in whole or part, by causes herein termed “force majeure” but only if and to the extent that such causes (i) are not within the reasonable control of Neutron, (ii) are not caused by deliberate, wanton, reckless or negligent act or omission of Neutron or by failure of Neutron to perform any of its obligations under this Agreement, or (iii) could not have been prevented by Neutron acting promptly, prudently, diligently, carefully, in good faith, in accordance with this Agreement, and applicable law and regulations. For purposes of this Agreement, the term “force majeure” shall include labor disputes; acts of God; action of the elements, including inclement weather, floods, slides, cave-ins, sinkholes, earthquakes, and drought; laws, rules, regulations, orders, directives, and requests of governmental bodies or agencies; delay, failure, or inability of suppliers or transporters of materials, parts, supplies, services, or equipment; contractor or subcontractor shortage of labor, transportation, materials, machinery, equipment, supplies, utilities, or services; accidents; breakdown of equipment, machinery, or facilities; judgments or orders of any court or federal, state or local agency; inability to obtain on reasonably acceptable terms or in reasonably acceptable time any public or private licenses, permits, or other authorizations; curtailment or suspension of activities to remedy or avoid an actual or alleged, present or future violation of federal, state, or local environmental standard; acts of war or conditions arising out of or contributable to war, whether declared or undeclared; riot; civil strife; fire; explosion; or any other cause whether similar or dissimilar to the foregoing, except for the inability to meet financial commitments. If Neutron desires to invoke the provisions of this Section VIII, Neutron shall give notice of the commencement of the circumstances giving rise to such force majeure. An event or occurrence shall not be deemed a “force majeure,” and no performance by Neutron shall be excused, on account of shortage or unavailability of funds or because the event or occurrence would cause performance to result in economic loss or in hardship or inequity or

 

10

 

frustrate the purpose for which Neutron entered into this Agreement. The time for discharging Neutron’s obligations with respect to the prevented performance shall be extended for the period of force majeure. Neutron shall proceed promptly, prudently, diligently and in good faith to end any force majeure as soon as is practicable.

 

IX. NOTICES

 

Any required notice, payment, or other communication contemplated by this Agreement shall be in writing and shall be effective (i) when personally delivered at the below address; (ii) when delivered by electronic communication at Lessors’ telecopy number described below or at such other telecopy number as Lessors may designate in writing provided that such electronic communication is followed by a delivery by mail or by personal service to the below address; or (iii) when delivered by mail deposited in the United States mail, postage prepaid and registered or certified, with return receipt requested, and addressed to Lessors at the below address:

 

	
If to Lessors 
    	
James   A. Bonner 
    
	
 
    	
1925   Quail Run Drive N.E.
    
	
 
    	
Albuquerque,   New Mexico 87122
    
	
 
    	
 
    
	
If to Neutron:
    	
NEUTRON   ENERGY, INC.
    
	
 
    	
6606   North Hillside Drive
    
	
 
    	
Paradise   Valley, Arizona 85253
    
	
 
    	
FAX   No.: 1-602-952-8650
    

 

Either l.essors or Neutron may change its mailing address for future notices by providing written notice to that effect to the other parties.

 

X. CONFIDENTIALITY

 

Lessors shall not, without the express written consent of Neutron, disclose any information concerning the terms of this Agreement or operations conducted under this Agreement, nor issue any press releases concerning the operations. However, if Lessors contemplate selling or assigning their interest, they shall have the right to disclose such information to a potential purchaser if it first obtains an agreement in writing from such third party, satisfactory to Neutron, providing that the third party shall hold confidential the information furnished to it.

 

XI. ASSIGNMENTS AND TRANSFERS OF INTEREST

 

A.                                                            By Lessors. Lessors shall have the right to transfer all or any portion of the Premises to others, provided that:

 

1.                                       The transfer shall be subject to this Agreement and to all rights of Neutron, its successors and assigns, under this Agreement in and to the Premises and the transferee agrees to this in writing prior to the transfer, however, in the event that the Lessors propose to transfer any or all of the Premises or interests therein to others, Lessors shall provide notice to Neutron of all terms and conditions of the proposed transfer. Neutron shall have the first right to acquire any or all of said

 

11

 

interests in the Premises from Lessors, on the same terms and conditions agreed to between the Lessors and others, for a period of 60 days from the date that the notice is received by Neutron from the Lessors.

 

2.                                       No change or division in ownership of the Premises, however accomplished, shall operate to enlarge the obligations or diminish the rights of Neutron under this Agreement.

 

3.                                       No change or division in the ownership of the Premises shall be binding upon Neutron for any purpose until the person acquiring any interest has furnished Neutron with the instrument or instruments constituting his claim of title from the original seller.

 

B.                                                            By Neutron. Neutron shall have the right at any time to assign all or any portion of its rights under this Agreement. No assignment, however, shall release Neutron from the performance of any of its obligations under this Agreement except if and to the extent that it is released from such obligations in a document executed by Lessors.

 

XII. NO EXPRESS OR IMPLIED COVENANTS

 

Nothing in this Agreement shall impose any obligations or covenants upon Neutron, express or implied, to conduct any mining operations upon the Premises, it being the intent of the parties that Neutron shall have the sole discretion to determine the economic feasibility, time, method, manner and rate of conducting any such operations, except as otherwise required by this Agreement.

 

XIII. BINDING EFFECT

 

The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their respective heirs, executors, administrators, personal representatives, beneficiaries, successors, and assigns.

 

XIV. MEMORANDUM

 

Neutron and Lessors shall execute a Memorandum of this Agreement in a recordable form sufficient under the laws of the State of New Mexico to give notice to third parties of the rights granted hereunder. Neutron shall have the right to record such Memorandum at any time.

 

XV. CONSTRUCTION OF AGREEMENT

 

This Agreement and its Exhibits constitute the sole understanding of the parties with respect to the Premises, all previous agreements between the parties concerning the Premises being expressly rescinded. This Agreement shall be subject to all valid and applicable provisions of statutory or common law, rules, and regulations. Should this Agreement or any of its provisions or operations be found to be contrary to any such valid law, rule, or regulation, the latter shall be

 

12

 

deemed to control, and this Agreement shall be regarded as modified accordingly. Subject to the preceding sentence, no modification or alteration of this Agreement shall be effective unless in writing and executed by the parties.

 

XVI. HEADINGS

 

The headings appearing in this Agreement are inserted for convenient reference purposes only, and are not definitive as to the provisions contained within said Sections in the interpretation and construction of this Agreement.

 

XVII. RULE AGAINST PERPETUITIES

 

As to any provision in this Agreement, the parties do not intend that there shall be any violation of the Rule Against Perpetuities or any related Rule. If any violation should inadvertently occur, it is the wish of the parties that the appropriate court reform such provision so as to approximate most closely the intent of the parties within the limits permissible under such Rule.

 

XVIII. APPLICABLE LAW

 

This Agreement shall be construed, interpreted and governed by the laws of the State of New Mexico.

 

	
 
    	
 
    	
James   A. Bonner and Julianne K. Bonner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 /s/ James A. Bonner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 /s/ Julianne K. Bonner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
NEUTRON   ENERGY, INC. a Wyoming Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Edward M. Topham
    
	
 
    	
 
    	
Its   
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
State   of New Mexico )
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
County   of Bernalillo )
    	
 
    	
 
    

 

The foregoing instrument was acknowledged before me this 16th day of May, 2006 by

 

James A. Bonner and Julianne K. Bonner.

 

	
 
    	
/s/   Raquel R. Infante
    
	
 
    	
Notary   Public
    

 

13

 

	
State   of Arizona )
    	
 
    
	
 
    	
 
    
	
County   of Maricopa )
    	
 
    

 

The foregoing instrument was acknowledged before me this 7th day of June, 2006 by Edward Murray Topham, C.F.O. of Neutron Energy, Inc. on behalf of the corporation.

 

	
 
    	
 /s/ Maudi Gomez
    
	
 
    	
Notary   Public
    

 

14

 

EXHIBIT A 

TO THAT MINERAL LEASE AGREEMENT BETWEEN JAMES A. BONNER, JULIANNE K. BONNER (LESSORS)

AND

NEUTRON ENERGY, INC. (LESSEE) DATED                                  ,2006

THE FOLLOWING 235 UNPATENTED MINING CLAIMS LOCATED IN MCKINLEY COUNTY, NEW MEXICO

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Location
    	
 
    	
BLM
    	
 
    	
County
    	
 
    	
Book &
    	
 
    	
2006
    	
 
    
	
Claim Name 
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Date
    	
 
    	
Serial No.
    	
 
    	
Serial No.
    	
 
    	
Page No.
    	
 
    	
Maintenance
    	
 
    
	
ALTOS
    	
 
    	
1
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171917
    	
 
    	
318764
    	
 
    	
24 - 7767
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
2
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171918
    	
 
    	
318765
    	
 
    	
24 - 7768
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
3
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171919
    	
 
    	
318766
    	
 
    	
24 - 7769
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
4
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171920
    	
 
    	
318767
    	
 
    	
24 - 7770
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
5
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171921
    	
 
    	
318768
    	
 
    	
24 - 7771
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
6
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171922
    	
 
    	
318769
    	
 
    	
24 - 7772
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
7
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171923
    	
 
    	
318770
    	
 
    	
24 - 7773
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
8
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171924
    	
 
    	
318771
    	
 
    	
24 - 7774
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
9
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171925
    	
 
    	
318772
    	
 
    	
24 - 7775
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
10
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171926
    	
 
    	
318773
    	
 
    	
24 - 7776
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
11
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171927
    	
 
    	
318774
    	
 
    	
24 - 7777
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
12
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171928
    	
 
    	
318775
    	
 
    	
24 - 7778
    	
 
    	
25 - 3786
    	
 
    
	
ALTOS
    	
 
    	
13
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171929
    	
 
    	
318776
    	
 
    	
24 - 7779
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
14
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171930
    	
 
    	
318777
    	
 
    	
24 - 7780
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
15
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171931
    	
 
    	
318778
    	
 
    	
24 - 7781
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
16
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171932
    	
 
    	
318779
    	
 
    	
24 - 7782
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
17
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171933
    	
 
    	
318780
    	
 
    	
24 - 7783
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
18
    	
 
    	
12
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
2/26/2005
    	
 
    	
171934
    	
 
    	
318781
    	
 
    	
24 - 7784
    	
 
    	
25 - 3787
    	
 
    
	
ALTOS
    	
 
    	
19
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173129
    	
 
    	
321623
    	
 
    	
25 - 7954
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
20
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173130
    	
 
    	
321624
    	
 
    	
25 - 7955
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
21
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173131
    	
 
    	
321625
    	
 
    	
25 - 7956
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
22
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173132
    	
 
    	
321626
    	
 
    	
25 - 7957
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
23
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173133
    	
 
    	
321627
    	
 
    	
25 - 7958
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
24
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173134
    	
 
    	
321628
    	
 
    	
25 - 7959
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
25
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173135
    	
 
    	
321629
    	
 
    	
25 - 7960
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
26
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173136
    	
 
    	
321630
    	
 
    	
25 - 7961
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
27
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173137
    	
 
    	
321631
    	
 
    	
25 - 7962
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
28
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173138
    	
 
    	
321632
    	
 
    	
25 - 7963
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
29
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173139
    	
 
    	
321633
    	
 
    	
25 - 7964
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
30
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173140
    	
 
    	
321634
    	
 
    	
25 - 7965
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
31
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173141
    	
 
    	
321635
    	
 
    	
25 - 7966
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
32
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173142
    	
 
    	
321636
    	
 
    	
25 - 7967
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
33
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173143
    	
 
    	
321637
    	
 
    	
25 - 7968
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
34
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173144
    	
 
    	
321638
    	
 
    	
25 - 7969
    	
 
    	
 
    	
 
    

 

1

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Location
    	
 
    	
BLM
    	
 
    	
County
    	
 
    	
Book &
    	
 
    	
2006
    	
 
    
	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Date
    	
 
    	
Serial No.
    	
 
    	
Serial No.
    	
 
    	
Page No.
    	
 
    	
Maintenance
    	
 
    
	
ALTOS
    	
 
    	
35
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173145
    	
 
    	
321639
    	
 
    	
25 - 7970
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
36
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173146
    	
 
    	
321640
    	
 
    	
25 - 7971
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
37
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173147
    	
 
    	
321641
    	
 
    	
25 - 7972
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
38
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173148
    	
 
    	
321642
    	
 
    	
25 - 7973
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
39
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173149
    	
 
    	
321643
    	
 
    	
25 - 7974
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
40
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173150
    	
 
    	
321644
    	
 
    	
25 - 7975
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
41
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173151
    	
 
    	
321645
    	
 
    	
25 - 7976
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
42
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173152
    	
 
    	
321646
    	
 
    	
25 - 7977
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
43
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173153
    	
 
    	
321647
    	
 
    	
25 - 7978
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
44
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173154
    	
 
    	
321648
    	
 
    	
25 - 7979
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
45
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173155
    	
 
    	
321649
    	
 
    	
25 - 7980
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
46
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173156
    	
 
    	
321650
    	
 
    	
25 - 7981
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
47
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173157
    	
 
    	
321651
    	
 
    	
25 - 7982
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
48
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173158
    	
 
    	
321652
    	
 
    	
25 - 7983
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
49
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173159
    	
 
    	
321653
    	
 
    	
25 - 7984
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
50
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173160
    	
 
    	
321654
    	
 
    	
25 - 7985
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
51
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173161
    	
 
    	
321655
    	
 
    	
25 - 7986
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
52
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173162
    	
 
    	
321656
    	
 
    	
25 - 7987
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
53
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173163
    	
 
    	
321657
    	
 
    	
25 - 7988
    	
 
    	
 
    	
 
    
	
ALTOS
    	
 
    	
54
    	
 
    	
14
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
173164
    	
 
    	
321658
    	
 
    	
25 - 7989
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
1
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321659
    	
 
    	
25 - 7990
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
2
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321660
    	
 
    	
25 - 7991
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
3
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321661
    	
 
    	
25 - 7992
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
4
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321662
    	
 
    	
25 - 7993
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
5
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321663
    	
 
    	
25 - 7994
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
6
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321664
    	
 
    	
25 - 7995
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
7
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321665
    	
 
    	
25 - 7996
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
8
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321666
    	
 
    	
25 - 7997
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
9
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321667
    	
 
    	
25 - 7998
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
10
    	
 
    	
8
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321668
    	
 
    	
25 - 7999
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
11
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321669
    	
 
    	
25 - 8000
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
12
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321670
    	
 
    	
25 - 8001
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
13
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321671
    	
 
    	
25 - 8002
    	
 
    	
 
    	
 
    

 

2

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No. 
    	
 
    	
2006
   Maintenance
    	
 
    
	
BRK
    	
 
    	
14
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321672
    	
 
    	
25 - 8003
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
15
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321673
    	
 
    	
25 - 8004
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
16
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321674
    	
 
    	
25 - 8005
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
17
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321675
    	
 
    	
25 - 8006
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
18
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321676
    	
 
    	
25 - 8007
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
19
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321677
    	
 
    	
25 - 8008
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
20
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321678
    	
 
    	
25 - 8009
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
21
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321679
    	
 
    	
25 - 8010
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
22
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/22/2005
    	
 
    	
 
    	
 
    	
321680
    	
 
    	
25 - 8011
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
23
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/23/2005
    	
 
    	
 
    	
 
    	
321681
    	
 
    	
25 - 8012
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
24
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/23/2005
    	
 
    	
 
    	
 
    	
321682
    	
 
    	
25 - 8013
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
25
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/23/2005
    	
 
    	
 
    	
 
    	
321683
    	
 
    	
25 - 8014
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
26
    	
 
    	
18
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/23/2005
    	
 
    	
 
    	
 
    	
321684
    	
 
    	
25 - 8015
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
30
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/25/2005
    	
 
    	
 
    	
 
    	
321685
    	
 
    	
25 - 8016
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
32
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/25/2005
    	
 
    	
 
    	
 
    	
321686
    	
 
    	
25 - 8017
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
34
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/25/2005
    	
 
    	
 
    	
 
    	
321687
    	
 
    	
25 - 8018
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
36
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/25/2005
    	
 
    	
 
    	
 
    	
321688
    	
 
    	
25 - 8019
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
47
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321689
    	
 
    	
25 - 8020
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
48
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321690
    	
 
    	
25 - 8021
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
49
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321691
    	
 
    	
25 - 8022
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
50
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321692
    	
 
    	
25 - 8023
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
51
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321693
    	
 
    	
25 - 8024
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
52
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321694
    	
 
    	
25 - 8025
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
53
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321695
    	
 
    	
25 - 8026
    	
 
    	
 
    	
 
    
	
BRK
    	
 
    	
54
    	
 
    	
6
    	
 
    	
14N
    	
 
    	
10W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/24/2005
    	
 
    	
 
    	
 
    	
321696
    	
 
    	
25 - 8027
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
3
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322907
    	
 
    	
26 - 1951
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
4
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322908
    	
 
    	
26 - 1952
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
5
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322909
    	
 
    	
26 - 1953
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
6
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322910
    	
 
    	
26 - 1954
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
7
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322911
    	
 
    	
26 - 1955
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
9
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322912
    	
 
    	
26 - 1956
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
10
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322913
    	
 
    	
26 - 1957
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
11
    	
 
    	
11
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322914
    	
 
    	
26 - 1958
    	
 
    	
 
    	
 
    

 

3

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No.
    	
 
    	
2006
   Maintenance
    	
 
    
	
GIL
    	
 
    	
12
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322915
    	
 
    	
26 - 1959
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
13
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322916
    	
 
    	
26 - 1960
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
14
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322917
    	
 
    	
26 - 1961
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
15
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322918
    	
 
    	
26 - 1962
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
16
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322919
    	
 
    	
26 - 1963
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
17
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/12/2005
    	
 
    	
 
    	
 
    	
322920
    	
 
    	
26 - 1964
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
18
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
7W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/13/2005
    	
 
    	
 
    	
 
    	
322921
    	
 
    	
26 - 1965
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
19
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
7W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/13/2005
    	
 
    	
 
    	
 
    	
322922
    	
 
    	
26 - 1966
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
20
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
7W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/13/2005
    	
 
    	
 
    	
 
    	
322923
    	
 
    	
26 - 1967
    	
 
    	
 
    	
 
    
	
GIL
    	
 
    	
21
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
7W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/13/2005
    	
 
    	
 
    	
 
    	
322924
    	
 
    	
26 - 1968
    	
 
    	
 
    	
 
    
	
GIL **
    	
 
    	
23
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
7W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
11/13/2005
    	
 
    	
 
    	
 
    	
322925
    	
 
    	
26 - 1969
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
1
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321373
    	
 
    	
25 - 7222
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
2
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321374
    	
 
    	
25 - 7223
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
3
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321375
    	
 
    	
25 - 7224
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
4
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321376
    	
 
    	
25 - 7225
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
5
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321377
    	
 
    	
25 - 7226
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
6
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321378
    	
 
    	
25 - 7227
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
7
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321379
    	
 
    	
25 - 7228
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
8
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321380
    	
 
    	
25 - 7229
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
9
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321381
    	
 
    	
25 - 7230
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
10
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321382
    	
 
    	
25 - 7231
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
11
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321383
    	
 
    	
25 - 7232
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
12
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321384
    	
 
    	
25 - 7233
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
13
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321385
    	
 
    	
25 - 7234
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
14
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321386
    	
 
    	
25 - 7235
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
15
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321387
    	
 
    	
25 - 7236
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
16
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321388
    	
 
    	
25 - 7237
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
17
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321389
    	
 
    	
25 - 7238
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
18
    	
 
    	
20
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321390
    	
 
    	
25 - 7239
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
19
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321391
    	
 
    	
25 - 7240
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
20
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321392
    	
 
    	
25 - 7241
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
21
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321393
    	
 
    	
25 - 7242
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
22
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321394
    	
 
    	
25 - 7243
    	
 
    	
 
    	
 
    

 

4

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No.
    	
 
    	
2006
   Maintenance
    	
 
    
	
REM
    	
 
    	
23
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321395
    	
 
    	
25 - 7244
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
24
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321396
    	
 
    	
25 - 7245
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
25
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321397
    	
 
    	
25 - 7246
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
26
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321398
    	
 
    	
25 - 7247
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
27
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321399
    	
 
    	
25 - 7248
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
28
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321400
    	
 
    	
25 - 7249
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
29
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321401
    	
 
    	
25 - 7250
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
30
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321402
    	
 
    	
25 - 7251
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
31
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321403
    	
 
    	
25 - 7252
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
32
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321404
    	
 
    	
25 - 7253
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
33
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321405
    	
 
    	
25 - 7254
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
34
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321406
    	
 
    	
25 - 7255
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
35
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321407
    	
 
    	
25 - 7256
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
36
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321408
    	
 
    	
25 - 7257
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
37
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321409
    	
 
    	
25 - 7258
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
38
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321410
    	
 
    	
25 - 7259
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
39
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321411
    	
 
    	
25 - 7260
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
40
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321412
    	
 
    	
25 - 7261
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
41
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321413
    	
 
    	
25 - 7262
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
42
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321414
    	
 
    	
25 - 7263
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
43
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321415
    	
 
    	
25 - 7264
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
44
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321416
    	
 
    	
25 - 7265
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
45
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321417
    	
 
    	
25 - 7266
    	
 
    	
 
    	
 
    
	
REM
    	
 
    	
46
    	
 
    	
8
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/3/2005
    	
 
    	
 
    	
 
    	
321418
    	
 
    	
25 - 7267
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
1
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321419
    	
 
    	
25 - 7268
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
2
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321420
    	
 
    	
25 - 7269
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
3
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321421
    	
 
    	
25 - 7270
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
4
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321422
    	
 
    	
25 - 7271
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
5
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321423
    	
 
    	
25 - 7272
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
6
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321424
    	
 
    	
25 - 7273
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
7
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321425
    	
 
    	
25 - 7274
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
8
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321426
    	
 
    	
25 - 7275
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
9
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321427
    	
 
    	
25 - 7276
    	
 
    	
 
    	
 
    

 

5

 

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No.
    	
 
    	
2006
   Maintenance
    	
 
    
	
ZAC
    	
 
    	
10
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321428
    	
 
    	
25 - 7277
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
11
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321429
    	
 
    	
25 - 7278
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
12
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321430
    	
 
    	
25 - 7279
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
13
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321431
    	
 
    	
25 - 7280
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
14
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321432
    	
 
    	
25 - 7281
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
15
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321433
    	
 
    	
25 - 7282
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
16
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321434
    	
 
    	
25 - 7283
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
17
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321435
    	
 
    	
25 - 7284
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
18
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321436
    	
 
    	
25 - 7285
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
19
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321437
    	
 
    	
25 - 7286
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
20
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321438
    	
 
    	
25 - 7287
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
21
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321439
    	
 
    	
25 - 7288
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
22
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321440
    	
 
    	
25 - 7289
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
23
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321441
    	
 
    	
25 - 7290
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
24
    	
 
    	
14
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321442
    	
 
    	
25 - 7291
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
25
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321443
    	
 
    	
25 - 7292
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
26
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321444
    	
 
    	
25 - 7293
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
27
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321445
    	
 
    	
25 - 7294
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
28
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321446
    	
 
    	
25 - 7295
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
29
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321447
    	
 
    	
25 - 7296
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
30
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321448
    	
 
    	
25 - 7297
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
31
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321449
    	
 
    	
25 - 7298
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
32
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321450
    	
 
    	
25 - 7299
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
33
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321451
    	
 
    	
25 - 7300
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
34
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321452
    	
 
    	
25 - 7301
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
35
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321453
    	
 
    	
25 - 7302
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
36
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321454
    	
 
    	
25 - 7303
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
37
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321455
    	
 
    	
25 - 7304
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
38
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/7/2005
    	
 
    	
 
    	
 
    	
321456
    	
 
    	
25 - 7305
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
39
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321457
    	
 
    	
25 - 7306
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
40
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321458
    	
 
    	
25 - 7307
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
41
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321459
    	
 
    	
25 - 7308
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
42
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321460
    	
 
    	
25 - 7309
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
43
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321461
    	
 
    	
25 - 7310
    	
 
    	
 
    	
 
    

 

6

 

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No.
    	
 
    	
2006
   Maintenance
    	
 
    
	
ZAC
    	
 
    	
44
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321462
    	
 
    	
25 - 7311
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
45
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321463
    	
 
    	
25 - 7312
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
46
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321464
    	
 
    	
25 - 7313
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
47
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321465
    	
 
    	
25 - 7314
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
48
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321466
    	
 
    	
25 - 7315
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
49
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321467
    	
 
    	
25 - 7316
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
50
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321468
    	
 
    	
25 - 7317
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
51
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321469
    	
 
    	
25 - 7318
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
52
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321470
    	
 
    	
25 - 7319
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
53
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321471
    	
 
    	
25 - 7320
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
54
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321472
    	
 
    	
25 - 7321
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
55
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321473
    	
 
    	
25 - 7322
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
56
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321474
    	
 
    	
25 - 7323
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
57
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321475
    	
 
    	
25 - 7324
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
58
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321476
    	
 
    	
25 - 7325
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
59
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321477
    	
 
    	
25 - 7326
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
60
    	
 
    	
12
    	
 
    	
13N
    	
 
    	
9W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/4/2005
    	
 
    	
 
    	
 
    	
321478
    	
 
    	
25 - 7327
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
61
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321479
    	
 
    	
25 - 7328
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
62
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321480
    	
 
    	
25 - 7329
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
63
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321481
    	
 
    	
25 - 7330
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
64
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321482
    	
 
    	
25 - 7331
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
65
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321483
    	
 
    	
25 - 7332
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
66
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321484
    	
 
    	
25 - 7333
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
67
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321485
    	
 
    	
25 - 7334
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
68
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321486
    	
 
    	
25 - 7335
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
69
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321487
    	
 
    	
25 - 7336
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
70
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321488
    	
 
    	
25 - 7337
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
71
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321489
    	
 
    	
25 - 7338
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
72
    	
 
    	
31
    	
 
    	
14N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
9/23/2005
    	
 
    	
 
    	
 
    	
321490
    	
 
    	
25 - 7339
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
77
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
322588
    	
 
    	
26 - 1047
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
78
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321491
    	
 
    	
25 - 7340
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
79
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
322589
    	
 
    	
26 - 1048
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
80
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321492
    	
 
    	
25 - 7341
    	
 
    	
 
    	
 
    
	
ZAC
    	
 
    	
81
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
322587
    	
 
    	
26 - 1046
    	
 
    	
 
    	
 
    

 

7

 

 

	
Claim Name
    	
 
    	
Claim No.
    	
 
    	
Section
    	
 
    	
Township
    	
 
    	
Range
    	
 
    	
County
    	
 
    	
State
    	
 
    	
Location
   Date
    	
 
    	
BLM
   Serial No.
    	
 
    	
County
   Serial No.
    	
 
    	
Book &
   Page No.
    	
 
    	
2006
   Maintenance
    	
 
    
	
ZAC
    	
 
    	
82
    	
 
    	
18
    	
 
    	
13N
    	
 
    	
8W
    	
 
    	
McKinley
    	
 
    	
NM
    	
 
    	
10/8/2005
    	
 
    	
 
    	
 
    	
321493
    	
 
    	
25 - 7342
    	
 
    	
 
    	
 
    

 

“THAT NEW MEXICO STATE LAND OFFICE MINING LEASE FOR GENERAL MINING - LEASE No. HG - 0078 FOR ALL OF SECTION 36, T14N, R9W.”

 

8

 

 

EXHIBIT B

 

ATTACHED TO THAT MINERAL LEASE AGREEMENT BETWEEN JAMES A. BONNER, JULIANNE K. BONNER, LESSOERS AND NEUTRON ENERGY, INC., LESSEE, DATED                                                    , 2006

 

A. Production Royalties and Associated Minerals

 

1. Production royalties shall be based upon the “value” per pound of any and all U308 or uranium in any other form (hereinafter called “Uranium Concentrates”) recovered in a milling or processing facility from Minerals mined or removed from the owned mineral interests contained on the Premises.

 

2. The “value” of the Uranium Concentrates for purposes of this Lease shall be determined based upon the price for which such Uranium Concentrates oar sold, provided that if no sale occurs within six (6) months after receipt of Uranium Concentrates, the value shall be determined base upon the weighted average price for spot market sales of United States source uranium for the calendar quarter in which the recovery of Uranium Concentrates from ore produced from the Premises occurs. Such spot market price shall he that reported in the Uranium Exchange or other appropriate index and averaged for the subject calendar quarter. Once such Uranium Concentrates have been sold, the royalty shall be adjusted accordingly, whereupon LESSEE shall pay LESSOR any additional royalty owned.

 

B. Settlement Regarding Production Royalties

 

LESSEE shall pay to LESSOR any and all production royalties earned hereunder within forty five (45) days following receipt of the proceeds from the sale of the Uranium Concentrates or six (6) months after receipt of the processed Uranium Concentrates whichever first occurs. All payments hereunder shall be accompanied by a statement showing weights and sales price or value of the Uranium Concentrates. LESSOR or his agent or representative shall have the right to inspect and audit the production records of this project not more than once per calendar year during normal business hours for the purpose of verifying the calculation and payment of production royalties. Any such audit shall he conducted with appropriate notification and shall be explicitly designed not to interrupt normal production operations of LESSEE.

 

C. Inspections

 

LESSOR and LESSOR’s agents, duly authorized in writing, may enter upon the Premises to inspect the same, during normal business hours and at such times and upon such notice to LESSEE as shall not unreasonably hinder or interrupt the operations and activities. Upon the written request of LESSOR, and to the extent not already produced by LESSEE, LESSEE will make available to LESSOR all records of drilling, assay reports, weight tickets, or othe factual data pertaining to operations on the Premises under this Lease. LeSSEE shall not be obligated to furnish LESSOR with access to any

 

 

interpretative data that deals with geologic concepts or other internal proprietary data, information or analysis. LESSEE shall facilitate and assist such inspections by LESSOR in every reasonable way, but LESSOR shall enter upon the Premises at LESSOR’s own risk and expense and shall indemnify and hold LESSEE harmless from any damage. claim, or demand by reason of the presence of or injury to LESSOR, LESSOR’s agents, representatives, licensees, or guests or any of them on the Premises or approaches thereto.

 

D. Confidentiality

 

LESSOR agrees to treat all information acquired hereunder as confidential and hereby agrees that LESSOR shall not use the name of LESSEE, its subsidiaries or affiliates in any document or press release or disclose any information LESSOR may obtain hereunder to third parties or to the public without first having obtained the written approval of LESSEE. LESSOR further agrees and warrants that in the event LESSOR should acquire any knowledge or information relating to internal proprietary techniques or methods used by LESSEE for purposes of geological information of LESSEE, such proprietary information will not be used by LESSOR or sold, given, disclosed, or otherwise made available to third parties or to the public while this Lease is in effect

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]