Document:

Exhibit 10.7

 

 

 

OPTION AGREEMENT FOR

PURCHASE AND SALE

(Pinal County, Arizona)

 

 

 

 

THIS
OPTION AGREEMENT FOR PURCHASE AND SALE (“Agreement”) is made and entered into as of this 16th day
of August, 2021 (the “Effective Date”), by and between DRH ENERGY, INC., a Colorado corporation, with
an address of 1341 Horton Circle, Arlington, Texas 76011 (“Seller”), and CENTRAL ARIZONA RESOURCES, LLC, an
Arizona limited liability company, with an address of 151 East Broadway, Suite 1600, Tucson,
AZ 85711 (“Buyer”).

 

RECITALS

 

WHEREAS, pursuant to the terms
of those certain Special Warranty Deeds and Reservations of Surface Rights, dated November 1, 2007, and recorded in the records of
Pinal County, State of Arizona, as Document No. 2007-121818, Document No. 2007-121819, and dated as of November 30, 2007,
and recorded in the records of Pinal County, State of Arizona as Document No. 2007-121163, Document No. 2007-131164, Document
No. 2007-131165 and Document No. 2007-131166 (the “2007 Deeds”), Seller acquired rights, to the extent
not previously reserved or conveyed, to all uranium, metals (including, without limitation, copper) and minerals, coal, lignite, and geothermal
energy and geothermal substances on, under or within certain real property situated in Pinal County, State of Arizona, as such real property
is described in Exhibit A attached hereto (collectively, the “Minerals"). Seller also acquired rights
to all oil, gas, petroleum, natural gas and other hydrocarbons within the real property described in Exhibit A (collectively,
the “Hydrocarbons”). The defined term “Minerals” as used in this Agreement expressly excludes the
Hydrocarbons.

 

WHEREAS, Seller’s rights
under the 2007 Deeds also include, to the extent not previously reserved or conveyed, all right, title and interest, if any, in and to
the rights, rentals, royalties and other benefits accruing or to accrue under any lease or leases of the Minerals and rights to receive
all bonuses, rents, royalties, production payments or monies of any nature accrued in the past or future with respect to the Minerals
(excluding all payment rights and royalties between Buyer and Seller pursuant to the terms of this Agreement) (“Additional
Mineral Rights”, and along with the Minerals, the “DRHE Property”).

 

WHEREAS, DRH Phoenix East
Construction, Inc, f/k/a CHI Construction Company, an Arizona corporation and an affiliate of Seller (“DRH Construction”),
entered into that certain Agreement dated effective as of October 28, 2004 (the “Unpatented Mining Claim Agreement”)
by and among DRH Construction, ASARCO Santa Cruz, Inc. (“ASARCO”) and Freeport Copper Company, attached
hereto as Exhibit F, wherein ASARCO agreed to assign certain federal unpatented mining claims set forth on Exhibit A
(the “Unpatented Mining Claims”) to that Unpatented Mining Claim Agreement to DRH Construction, all under the
terms and conditions of the Unpatented Mining Claim Agreement.

 

WHEREAS, DRH Construction
owns the surface estate of the lands described on Exhibit G, which consists of 3 separate parcels (the “Retained
Parcels”), which, as part of the Purchase Price, the parties have agreed to value at THREE HUNDRED FIFTY THOUSAND DOLLARS
($350,000.00).

 

WHEREAS, Legends Property,
LLC, a Delaware limited liability company (“Legends”), and DRH Construction, executed a Contract of Sale dated
October 8, 2007 (the “Legends Contract”) wherein DRH Construction sold the surface estate depicted on Exhibit A,
expressly excluding the Retained Parcels, the Minerals and the Hydrocarbons. Pursuant to Section 11 of the Legends Contract, DRH
Construction was granted a right of first refusal (the “Right of First Refusal”) with respect to any sale of
fee simple title, including without limitation, any lease with an option to purchase (a “ROFR Transfer”), of
all or any portion of the land more particularly described on Exhibit H attached hereto (the “ROFR Land”).
Pursuant to the Legends Contract, DRH Construction recorded a Memorandum of Right of First Refusal on November 1, 2007 in the records
of Pinal County, State of Arizona, as Document No. 2007-121824 (the “Memorandum of ROFR”).

 

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WHEREAS, DRH Construction,
through numerous assignments, currently holds certain rights with respect to minerals as set forth in that certain Mining Lease dated
August 4, 1978 between Ida May Coggin, as Lessor, and Casa Grande Copper Company, Lessee (the “Coggin Mining Lease”,
and along with the Unpatented Mining Claims, the Retained Parcels and the Right of First Refusal, the “DRH Construction Property”).
The parties acknowledge that DRH Construction does not currently hold the Unpatented Mining Claims but is working with ASARCO to have
them transferred as soon as possible. If for any reason ASARCO does not transfer the Unpatented Mining Claims prior to the Closing, Seller
will cause DRH Construction to assign it’s rights to enforce the Unpatented Mining Claim Agreement against ASARCO (the “ASARCO
Chose in Action”) and the definition of DRH Construction Property shall be automatically amended to delete the Unpatented
Mining Claims and to add the ASARCO Chose in Action.

 

WHEREAS, the DRHE Property
and the DRH Construction Property are referred to herein collectively as the “Subject Property.”).

 

WHEREAS, the Subject Property
is subject to certain surface and mineral rights reservations described more fully in the 2007 Deeds.

 

WHEREAS, Buyer desires to
have an option to acquire Seller’s right, title and interest in the Subject Property from Seller and DRH Construction and Seller
desires to grant the option and, if that option is exercised, quitclaim Seller’s and DRH Construction’s right, title and interest
in the Subject Property, as appropriate, to Buyer, all in accordance with the terms and conditions of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing premises, the mutual covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by the parties, Seller and Buyer agree as follows:

 

1.            Option
for Purchase and Sale; Option Period; Exercise of Option; Reservation of Hydrocarbons. Seller hereby grants to Buyer, from and after
the Effective Date, the exclusive and irrevocable option to purchase the Subject Property, exercisable by Buyer in its sole discretion
(the “Option”). Subject to and upon the terms and conditions of this Agreement, upon the timely and proper exercise
of the Option by Buyer, Seller hereby agrees to quitclaim to Buyer, and to cause DRH Construction to quitclaim and assign to Buyer, and
Buyer hereby agrees to acquire from Seller and DRH Construction, the Subject Property. Unless terminated pursuant to Section 18,
the Option shall expire at 5:00 p.m. Pacific time on the date that is the third anniversary of the Effective Date (the “Option
Period”). The Option may be exercised by Buyer by delivery to Seller of a written notice of election to exercise the Option
at any time prior to the expiration of the Option Period (the date such notice is received by Seller being referred to hereinafter as
the “Exercise Date”). The transaction contemplated hereby expressly excludes the Hydrocarbons, and Seller expressly
reserves and retains, all right, title and interest in and to the Hydrocarbons. During the Option Period, Seller shall not sell, convey,
assign, lease or otherwise transfer all or any part of the Subject Property, or cause or permit any new liability, encumbrance or obligation
to be placed or imposed upon all or any part of the Subject Property.

 

2.            Option
Payments; Purchase Price. The aggregate amount to be paid by Buyer to Seller for the Option and the acquisition of the Subject Property
in accordance with the terms and conditions of this Agreement shall be TWENTY-SEVEN MILLION EIGHT HUNDRED SEVENTY THOUSAND FIVE HUNDRED
AND NO/100 DOLLARS ($27,870,500.00) (the “Purchase Price”). The Purchase Price shall be payable as follows:

 

a.            On
the Effective Date, Buyer shall pay to Seller FIVE HUNDRED TWENTY THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($520,500.00)(the “Initial
Payment”); and

 

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b.            Within
five (5) days following of the expiration of the Due Diligence Period, Buyer shall pay to Seller FOUR MILLION EIGHT HUNDRED FIFTY
THOUSAND AND 00/100 DOLLARS ($4,850,000.00) (the “Due Diligence Payment”); and

 

c.            On
or before the first anniversary of the Effective Date, Buyer shall pay to Seller SIX MILLION TWO HUNDRED AND FIFTY THOUSAND AND 00/100
DOLLARS ($6,250,000.00) (the “First Payment”); and

 

d.            On
or before the second anniversary of the Effective Date, Buyer shall pay to Seller SIX MILLION TWO HUNDRED AND FIFTY THOUSAND AND 00/100
DOLLARS ($6,250,000.00) (collectively with the Initial Payment, the Due Diligence Payment and the First Payment, the “Option
Payments”).

 

e.            Following
exercise of the Option and upon the Closing Date (as hereafter defined), Buyer shall pay to Seller TEN MILLION AND 00/100 DOLLARS ($10,000,000.00)
(the “Closing Payment”).

 

In addition to the Purchase Price, upon presentation
of a statement of and documentation regarding such costs and expenses, at the Closing Buyer shall reimburse Seller for the actual costs
and expenses incurred by Seller for annual maintenance of the Unpatented Mining Claims from and after the date of this Agreement (the
 “Unpatented Maintenance Costs”). Neither the Option Payments nor the Closing Payment (collectively, the “Payments”)
shall accrue interest. Buyer may prepay any part(s) or all of the Payments at any time without penalty. Excess payments or prepayments
of Payments will be credited against future scheduled Payments. The Payments that comprise the total Purchase Price shall be non-refundable
to Buyer upon payment to Seller except as contemplated in the last sentence of Section 3.

 

3.            Due
Diligence and Closing Date. Buyer shall have sixty (60) days following the Effective Date (the “Due Diligence Period”),
to examine and inspect, with the cooperation of Seller as contemplated hereunder, the Subject Property and the terms and conditions regarding
the exercise of the Option for the purchase and sale thereof pursuant to this Agreement; provided, that, upon written notice to
Seller on or before the expiration of the Due Diligence Period that Buyer does not intend to exercise the Option to purchase the Subject
Property pursuant to this Agreement (as determined by Buyer in its sole discretion), this Agreement shall terminate, Seller shall retain
the Initial Payment, and neither Seller nor Buyer shall have any further obligation to each other under or by reason of this Agreement,
with exception of those obligations set forth under Sections 18(d) and 20 of this Agreement. In accordance with the
provisions of Section 4, any physical access to the Subject Property by Buyer shall be subject to Buyer reaching agreement
regarding access with the surface owner of the real property within the boundaries of the Subject Property and, prior to entering the
Subject Property, complying with the insurance requirements set forth in Section 4. Buyer shall have to right to extend the
Due Diligence Period for an additional thirty (30) days upon payment of FIFTY THOUSAND DOLLARS ($50,000.00), which amount would not be
credited towards the Option Payments or the Purchase Price. Notwithstanding any term or condition of this Agreement, nothing herein shall
constitute an obligation of Buyer to initiate or complete or to cause to be initiated or completed any report, evaluation or analysis
of the Subject Property during the Due Diligence Period or otherwise. Except as and to the extent caused by Seller, Buyer shall reclaim
the Subject Property and indemnify Seller for any damage to the Subject Property caused by or at the direction of Buyer, personal injury
caused by Buyer’s activities on the Subject Property or other claims resulting from Buyer’s activities on the Subject Property
prior to the Closing Date. If Buyer identifies a title defect in the Subject Property during the Due Diligence Period, then Buyer may
give written notice to Seller within two (2) business days of Buyer’s identification of such with sufficient detail and documentation
to identify the title defect (“Notice of Title Defect”). Within five (5) business days after receipt of
the Notice of Title Defect, Seller may, by written notice to Buyer, either (i) elect to cure the identified title defect at its sole
cost or expense; or (ii) terminate this Agreement, whereupon, Seller shall refund to Buyer all Payments received prior to the date
of termination.

 

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4.            Access
to Subject Property; Subject Property Information; Obligations and Cooperation of Seller. During the Due Diligence Period, and subject
to Buyer reaching agreement regarding access with the surface owner of the real property within the boundaries of the Subject Property,
Seller shall allow Buyer and its representatives access to the Subject Property to enable Buyer to determine, at Buyer’s sole cost
and expense, the compliance of the Subject Property with applicable laws, rules and regulations, and the physical condition of the
Subject Property. Prior to entering the Subject Property, Buyer will provide to Seller: (i) evidence of general liability insurance
with a carrier and coverage that is reasonably acceptable to Seller; (ii) a Certificate of Insurance naming Seller an additional
insured under such policy; and (iii) upon request by Seller, a full and complete copy of such insurance policy. Buyer’s due
diligence during the Due Diligence Period may include mineral exploration and title examinations, including reviews and inspections of
all matters pertaining to the Subject Property, and the evaluation of all environmental, endangered species and compliance matters and
conditions respecting the Subject Property (collectively, “Investigations”), which may include, without limitation:
(i) undertaking physical investigations and mineral exploration of the Subject Property; (ii) examining title to the Subject
Property; (iii) entering into discussions with any applicable governing and regulatory bodies regarding mine permitting, environmental,
endangered species and land use issues; and (iv) performing phase 1 environmental assessments of the Subject Property. Buyer’s
inspection, testing and evaluation of the Subject Property, including the Investigations, and Buyer’s review and/or approval of
any documents, instruments, title commitments, surveys, reports or other matters shall be solely for Buyer’s benefit.

 

Within five (5) days following the Effective
Date, and to the extent not already delivered to Buyer, Seller shall deliver to Buyer, or caused to be delivered to Buyer, or make available
to Buyer for review, or cause to be made available to Buyer for review, originals or copies of the following documentation, information
and data that is related to the DRHE Property only, but, in addition to other limitations set forth below, excluding Seller’s market
analysis related information and reports (collectively, the “Subject Property Information”), as and to the extent
that (i) Seller has the right to deliver such Subject Property Information absent any obligation of confidentiality (and for greater
certainty, where any obligation of confidentiality permits an exception to allow Seller to deliver such Subject Property Information to
Buyer, Seller shall utilize such exception), (ii) such Subject Property Information is in existence and in the possession of Seller,
or reasonably available or accessible by or to Seller, (iii) such Subject Property Information was not acquired or received by Seller
from a third party seeking to acquire the DRHE Property, or (iv) the Subject Property Information is not already a matter of public
record or to which reference is made in any public record:

 

a.            any
geotechnical, geological, engineering or similar studies or assessments for all or any part of the DRHE Property;

 

b.            all
drill core, samples and other geological information gathered by physical exploration or evaluation activities of the DRHE Property;

 

c.            any
documents, information, reports, photographs or recordings concerning or relating to the environmental condition of all or any part of
the DRHE Property, provided, that, notwithstanding anything to the contrary contained herein, all environmental reports and information
that may be provided to Buyer are provided by Seller only with Buyer’s understanding that such reports and information (i) were
obtained in connection with Seller’s acquisition of the DRHE Property, (ii) that Seller is providing them to Buyer for its
information only, (iii) that Buyer is not relying on such reports and information, (iv) that Seller makes no representation
or warranty with respect thereto, including without limitation the accuracy or completeness thereof, (v) that Buyer will conduct
its own environmental due diligence with respect to all matters pertaining to the Subject Property and will rely solely on its own due
diligence review of the Subject Property; and (vi) the reports and information provided to Seller during its acquisition of the DRHE
Property will not be disclosed or used by Buyer in any public filing without meeting the requirements of Section 19; and

 

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d.            to
the extent known and possessed by Seller as of the Effective Date, any agreements, contracts or leases, warranties, permits, licenses,
guaranties, soils reports, real property surveys, or appraisals relating to the DRHE Property that are not a matter of public record or
to which reference is made in any public record.

 

If in connection with the obligations set forth
in this Section 4 Seller provides to Buyer any document or information that it had no right to disclose or provide, Buyer
will return the document or information to Seller upon demand. If Buyer becomes aware that any Subject Property Information is lawfully
or unlawfully in the possession of a third party, Seller will assist Buyer in seeking to obtain such Subject Property Information, but
provided all such efforts shall be at Buyer’s sole cost and expense.

 

In connection with Seller’s acquisition
of the Subject Property and the surface estate that is within the boundaries set forth on Exhibit A, Seller was given access
to the items listed on Exhibit E (Schedule 6.3.1 - Summary of Relevant Previous Investigations Conducted in or Adjacent to
the Santa Cruz Joint Venture 85-Acre Option Property Area) for its review; provided, however Seller does not have copies of all
of the items set forth on Exhibit E but, pursuant to this Section 4, Seller will make available to Buyer what
Seller has in its files.

 

Until the Closing Date, Buyer shall keep all such
Subject Property Information provided by Seller confidential. Following the Closing Date, to the extent that such Subject Property Information
is transferrable by Seller, all of Seller’s rights or interests in and to the Subject Property Information, if any, shall transfer
to Buyer, but specifically excluding all environmental information prepared for Buyer in connection with its acquisition of the surface
and minerals and subsequent sale of the surface pursuant to the Legends Contract even though provided to Buyer as part of the Subject
Property Information, it being understood that Seller is reserving and retaining all ownership or other rights in such environmental information
regarding the Subject Property. If the Agreement is terminated in accordance with the terms hereof, Buyer will return or destroy (as directed
by Seller) all Subject Property Information provided by Seller under this Section 4.

 

5.            The
Closing. The closing (the “Closing”) of the transaction contemplated by this Agreement shall held within
five (5) days after the Exercise Date (the “Closing Date”). The date upon which the Closing actually takes
place, or, if more than one (1) day is required to complete the Closing, the date upon which the Closing is actually accomplished,
shall be deemed and considered the “Closing Date.” At the Closing on the Closing Date:

 

a.            Seller
shall execute and deliver to Buyer a fully executed (and acknowledged) quitclaim deed for the DRHE Property (the “Minerals
Quitclaim Deed”), substantially in the form attached as Exhibit B-1. Buyer shall be responsible for recording
the Minerals Quitclaim Deed in the records of Pinal County.

 

b.            Seller
shall cause DRH Construction to execute and deliver to Buyer a fully executed (and acknowledged) quitclaim deed for the Retained Parcels
and the Unpatented Mining Claims (the “DRH Construction Quitclaim Deed”), substantially in the form attached
as Exhibit B-2. Buyer shall be responsible for recording the DRH Construction Quitclaim Deed in the records of Pinal County.

 

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c.            Seller
shall cause DRH Construction to execute and deliver to Buyer a fully executed assignment and assumption agreement for the rights and obligations
of DRH Construction under the Coggin Lease and Section 11 of the Legends Contract (the “DRH Construction Assignment”),
substantially in the form attached as Exhibit B-3.

 

d.            Buyer
shall deliver to Seller the Closing Payment, any Option Payments not already paid by Buyer to Seller and any Unpatented Maintenance Costs.

 

e.            Seller
shall deliver to Buyer a certificate and affidavit certifying that Seller is not a “foreign corporation,” “foreign partnership,”
 “foreign trust,” “foreign estate,” or “foreign person” as defined in Section 1445 of the Internal
Revenue Code of 1986, as amended, substantially in the form attached as Exhibit C-1.

 

f.             Seller
shall cause DRH Construction to deliver to Buyer a certificate and affidavit certifying that DRH Construction is not a “foreign
corporation,” “foreign partnership,” “foreign trust,” “foreign estate,” or “foreign person”
as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, substantially in the form attached as Exhibit C-2.

 

g.            Seller
and Buyer shall execute such documents and, further, take such other actions as are reasonably necessary and appropriate to effectuate
the Closing in accordance with this Agreement.

 

h.            Buyer
shall take the Subject Property subject to all matters of record or to which reference is made in any public record, any and all conditions,
easements, encroachments, rights-of way, or restrictions which a physical inspection or accurate survey would reveal and applicable zoning
and use regulations of any municipality, county, state or the United States (collectively, the “Title Exceptions”),
and will assume all obligations under those Title Exceptions, including, without limitation: (i) the obligations and restrictions
of the “Declarant” related to the Coggin Mining Lease under that certain Declaration Waiving Certain Mineral and Surface Entry
Rights dated November 1, 2007 and recorded November 1, 2007 in the records of Pinal County, State of Arizona, as Document No. 2007-121820
(the “Coggin Declaration”), that certain Warranty
Deed dated June 29, 1978, and recorded on August 4. 1978 in the records of Pinal County, State of Arizona at Docket 926, Page 805
(the “Coggin Deed”), the matters set forth in that certain Special Warranty Deed dated October 28,
2004 and recorded November 2, 2004 in the records of Pinal County, State of Arizona, as Document No. 2004- 088679 (the “2004
ASARCO Deed”), the Memorandum of ROFR, the as of yet unrecorded Partial Termination of Right of First Refusal delivered
into escrow on behalf of Legends (the “Partial Termination of ROFR”), the obligations of the “Declarant”
set forth in that Declaration of Restrictive Covenant dated and recorded on November 1,
2007 in the records of Pinal County, State of Arizona, at Document No. 2007-121821
(the “Water Well Declaration”), the matters set forth in that certain Special Warranty Deed dated April 12,
2007 and recorded April 13, 2007 in the records of Pinal County, State of Arizona, as Document No. 2007-045221 (the “2007
ASARCO Deed”), the 2004 Royalty Deed and 2007 Royalty Deed (as each is defined in Exhibit D) (collectively hereafter,
the Coggin Declaration, the Coggin Deed, the 2004 ASARCO Deed, Memorandum of ROFR, the Partial Termination of ROFR, the Water Well Declaration,
the 2007 ASARCO DEED, the 2004 Royalty Deed and the 2007 Royalty Deed are collectively referred to as the “Specific Recorded
Property Documents”) (ii) those royalty obligations set forth on Exhibit D; and (iii) that certain
Mining Lease dated August 4, 1978 between Ida May Coggin, as Lessor, and Casa Grande Copper Company, and predecessor in interest
to Seller, as Lessee (the “Coggin Mining Lease”).

 

6.            Possession;
Risk of Loss. Until the Closing, Seller shall bear all risk of loss
to the Subject Property. Seller shall deliver the Subject Property to Buyer in substantially the same condition on the Closing Date as
it was on the Exercise Date, ordinary wear and tear and any damage caused by Buyer excepted. Possession of, risk of loss to, and
responsibility for the Subject Property shall be delivered to Buyer on the Closing Date.

 

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7.            Prorations
and Credits. Any recording costs and closing costs shall be divided equally between Seller and Buyer. Prorations shall be made as
of the Closing Date, and appropriate credit shall be given for real property taxes, assessments and other similar matters for the Subject
Property.

 

8.            Liens
and Encumbrances; Further Acknowledgment and Release. Except as specifically provided in this Agreement, Buyer shall not assume or
be deemed to have assumed, without limitation (i) any consensual lien or financial mortgage , (ii) any obligation to pay or
reimburse for goods received by or services performed or rendered to Seller prior to the Closing Date, or (iii) any liability of
Seller for any federal, state, county, local or other property taxes, or any other taxes of any kind or description with respect to Seller’s
ownership of the Subject Property prior to the Closing Date which creates a statutory or consensual lien against the Subject Property
(collectively, “Liens”). In the event that any Liens shall hereafter accrue against the Subject Property by
reason of any acts, omissions or neglect of Seller, then (provided that Seller shall have thirty (30) days following notice from
Buyer thereof to cure the same), if Seller’s contest is unsuccessful and Seller does not discharge the Lien within an additional
thirty (30) days, or such longer period of time as is necessary to cure or contest same so long as Seller is diligently pursuing the cure
or contest of same, Buyer may, at Buyer’s option, pay and discharge the same and, in such event, shall immediately be reimbursed
by Seller for any such payment, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by
Seller, anything contained in this Agreement to the contrary notwithstanding.

 

9.            Additional
Mineable Reserve Copper Payment. Buyer and Seller acknowledge that it is currently estimated that two (2) billion pounds (“2B
lb”) of historic copper inferred resource exists within the boundaries of the Subject Property, which amount must be upgraded
to a Mineable Reserve. In addition, Buyer must identify significant additional Mineable Reserves through further exploration to support
its project economics, all at significant exploration cost to Buyer. In connection therewith, and in addition to the Purchase Price, Buyer,
or any successor in interest to Buyer, shall pay to Seller a payment of One- and One-Half Cents ($0.015) per pound of copper for every
pound of Additional Mineable Reserve Copper over 2B lb (the “AMRC Payment”) as determined by the Definitive
Feasibility Study (“DFS”) to be prepared by Buyer. Buyer will have the DFS prepared and completed no later than
the sixth anniversary of the Effective Date. The AMRC Payment shall be payable by Buyer to Seller in five equal annual installments by
Buyer commencing one (1) year following the commencement of commercial mining operations at the Subject Property. The decision to
proceed with commercial mining operations shall be at the sole discretion and determination of Buyer. For example, if the DFS identifies
an Additional Mineable Reserve Copper of 1 billion pounds over 2B lb, Buyer would pay to Seller a total AMRC Payment of Fifteen Million
Dollars ($15,000,000.00), payable in such five equal annual installments. The provisions of this Section 9 shall be binding
upon Buyer and any of its successors in interest, directly or indirectly, to the Subject Property and be included in the Quitclaim Deed.
Additionally, concurrent with the Closing, Seller and Buyer shall enter into a deed of trust, in a form to be agreed to by the parties,
securing Buyer’s obligations under this Section 9.

 

10.          Generational
Payment. Buyer shall pay to Seller an amount equal to One- and One-Half Cents ($0.015) per pound of copper as an Additional Mineable
Reserve Copper payment (adjusted using the Consumer Price Index for All Urban Consumers (CPI-U)(Series title: All items in U.S. city
average, all urban consumers)) for every pound of copper produced from the Subject Property over and above the copper reserves estimated
in the DFS (the “Generational Payment”). Following the date when commercial mining operations have produced
copper from the Subject Property over and above the copper reserves estimated in the DFS, and the Generational Payment then becomes payable
by Buyer to Seller, the Generational Payment shall be required to be paid by Buyer to Seller annually in arrears on the last day of the
calendar month in which copper was first produced from the Subject Property over and above the copper reserves estimated in the DFS commencing
one (1) year after such date, and then annually thereafter. The provisions of this Section 10 shall be binding upon Buyer
and any of its successors in interest, directly or indirectly, to the Subject Property and be included in the Quitclaim Deed. Additionally,
concurrent with the Closing, Seller and Buyer shall enter into a deed of trust, in a form to be agreed to by the parties, securing Buyer’s
obligations under this Section 10.

 

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11.          Rights
of First Refusal. Seller hereby grants to Buyer a right of first refusal to purchase the AMRC Payment (the “AMRC ROFR”)
and/or the Generational Payment (the “GP ROFR”). In the event Seller proposes to accept a bona fide offer to
purchase all or any portion of the AMRC Payment and/or the Generational Payment from a third party, before it shall complete any such
transaction, Seller shall first provide written notice of the offer to Buyer along with a copy of the third party offer, together with
its own offer to Buyer to purchase all or the same portion of the AMRC payment and/or Generational Payment that Seller proposes to sell
on the same terms and conditions as the third party offer. Buyer shall then have ten (10) days to accept Seller offer to acquire
all or the same portion of the AMRC Payment and/or the Generational Payment that Seller proposes to sell. If Buyer does not accept Seller
offer within such ten (10) day period, Seller shall then have ninety (90) days to complete the sale to the third party on the same
terms and conditions that Buyer notified to Seller, and if such transaction is not completed within such ninety (90) day period, the AMRC
ROFR and/or the GP ROFR shall then apply to any subsequent proposed purchase of the AMRC payment and/or the Generational Payment by a
third party. If only a portion or part of the AMRC Payment and/or Generational Payment is sold to a third party by Seller, then for greater
certainty, the AMRC ROFR and GP ROFR shall continue to apply to the remaining AMRC Payment and/or the Generational Payment then remaining
owned by Seller. The provisions of this Section 11 shall be binding upon Buyer and any of its successors in interest, directly
or indirectly, to the Subject Property and be included in the Quitclaim Deed.

 

12.          Optional
Stock Consideration. By written notice delivered by Seller to Buyer prior to the time such obligations are due (the “IVNE
Stock Payment Election”), each component of the Payments comprising the Purchase Price as well as any portion of
the AMRC Payment and the Generational Payment shall be payable in cash, or, at the sole option and election of Seller, in whole or in
part of common stock of Ivanhoe Electric Inc. (“IVNE”) as follows:

 

a.            If
Seller elects payment in IVNE common stock and such election is prior to the effective date of the completion of IVNE’s initial
public offering, the common stock will only be issued concurrent with the initial public offering closing and valued at a 10% discount
to the initial public offering price per share of common stock, and in such case Seller will agree to lock-up all of the IVNE common stock
it receives hereunder (“IVNE Shares”) on the same terms as those required by the underwriters of IVNE
in connection with its initial public offering from directors, officers and significant shareholders of IVNE, or

 

b.            If
Seller elects payment in IVNE Shares and such election is after the effective date of the completion of IVNE’s initial public offering,
the IVNE Shares will be issued at a 10% discount to the five (5) day volume weighted average trading price on the principal stock
exchange where such common stock is then trading, but subject to stock exchange rules.

 

c.            If
Seller delivers the IVNE Stock Payment Election, Seller shall be provided with customary registration rights with respect to the IVNE
Shares, including a demand right providing for the registration of the IVNE Shares (but provided the amount of registrable securities
is not less than TEN MILLION DOLLARS ($10,000,000) and piggyback registration rights with respect to any subsequent registered offerings
by IVNE of its common stock, such registration rights to remain in effect until such time as all of the IVNE Shares have been sold. Buyer
shall procure that IVNE becomes party to the covenant in this Section 12 in favor of Seller, and on and after the IVNE Stock
Payment Election shall deliver a joinder or other assurance of such acceptance by IVNE of this covenant as is reasonably acceptable to
Seller (“IVNE Joinder”). For certainty, this Section 12 does not compel IVNE to complete an initial
public offering, and if such initial public offering is not completed by the third anniversary of the Effective Date, any election made
by Seller prior to such date to receive IVNE Shares shall be deemed null and void and all such amounts shall be due and owing and paid
by Buyer in cash.

 

    8

     

    

 

13.          Seller’s
Representations and Warranties. Seller hereby represents and warrants to Buyer (with the understanding that Buyer is relying on said
representations, warranties and covenants in purchasing the Subject Property in accordance with this Agreement), as of the Effective Date
and the Closing Date, as follows:

 

a.            Seller
has not, and to Seller’s Knowledge, DRH Construction has not, previously granted, conveyed, sold, mortgaged, pledged, hypothecated
or otherwise transferred any interest in the Subject Property to any other person or entity except for the Title Exceptions, including,
without limitation, the Specific Recorded Property Documents.

 

b.            Seller
has not received written notice of any claims, actions, suits, or other proceedings pending or, to the actual knowledge of either Paten
Morrow or Jonathan Holmes (“Seller’s Knowledge”), threatened by any governmental department or agency,
or any other entity or person, pertaining to the DRHE Property.

 

c.            To
Seller’s Knowledge and other than the Title Exceptions, there are no leases, contracts or agreements pertaining to the maintenance,
acquisition, management, use or possession of all or any part of the DRHE Property or any rights or options to acquire or use any part
or all of the DRHE Property, except for the Coggin Mining Lease, the obligations set forth on Exhibit D and the Specific Recorded
Property Documents and all of the contracts or agreements by which Seller or its predecessors or affiliates acquired, transferred, assigned
or sold the Subject Property.

 

d.            The
execution, delivery, and performance by Seller of this Agreement does not and will not conflict with, or result in the breach or termination
of any provision of, or constitute a default by Seller under, any indenture, mortgage, deed of trust, lease, contract, or other instrument
or agreement or any order, judgment, award, or decree to which Seller or the DRHE Property is subject or by which may be bound, or result
in the creation of a lien, charge, or encumbrance upon the DRHE Property.

 

e.            Seller
has the full right, legal capacity and means to transfer the DRHE Property, and to Seller’s Knowledge, DRH Construction has the
full right, legal capacity and means to transfer the DRH Construction Property, without obtaining the consent or approval of any governmental
authority or any other person or entity to which Seller, DRH Construction or any of Seller’s or DRH Construction’s property
may be subject; provided, however that Seller makes no warranty or representation about the consent rights of ASARCO for DRH Construction
to assign the ASARCO Chose in Action.

 

f.             Other
than any general real property taxes assessed but not yet due and owing by Seller and those arising under the Title Exceptions, the Specific
Recorded Property Documents, the Coggin Mining Lease and the obligations set forth on Exhibit D, if any, there are no liabilities
or obligations related to the DRHE Property that Seller is obligated to satisfy on or before the Closing or any such liabilities and obligations
that Buyer may be obligated to satisfy after the Closing and which arise by, through or under Seller.

 

g.            To
Seller’s Knowledge and subject to the Title Exceptions, the Coggin Mining Lease and the Specific Recorded Property Documents, (i) there
is no pending adverse claim or challenge against or to the ownership of the DRHE Property nor is there any basis therefor, (ii) there
are no outstanding agreements or rights or options to acquire or purchase the DRHE Property or any portion thereof, (iii) no person,
firm or corporation has any proprietary or possessory interest in the DRHE Property other than Seller and Buyer pursuant to this Agreement,
and (iv) no person is entitled to any royalty or other payment in the nature of rent or royalty on any mineral products therefrom
except as set forth on Exhibit D.

 

    9

     

    

 

h.            To
Seller’s Knowledge, all documents delivered to Buyer by Seller pursuant to this Agreement are complete and correct copies of originals.
Seller does not make, and shall not be deemed to have made, any representation or warranty with respect to any part or all of the Subject
Property Information. The parties acknowledge that a Memorandum of Real Estate Purchase Option Agreement by and between Legends and Sustainable
Property Holdings, LLC, dated June 18 2020, was inadvertently recorded by Legends in Fee No. 20200101218, Records of Pinal County,
Arizona, as to Exception Area No. 1 on Exhibit G, and will be released as to such parcel prior to the Closing.

 

i.             There
are no existing prior assessments of any kind or nature due or payable on or prior to the date hereof against the DRHE Property or any
part thereof, and, to Seller’s Knowledge (except as may be described by the Subject Property Information), there are not presently
pending any special assessment or condemnation actions against the DRHE Property or any part thereof, and Seller has not received any
notice of any assessment or condemnation actions being contemplated; provided that any assessment which is or becomes a Lien against the
DRHE Property prior to the Closing shall be satisfied by Seller prior to or at the Closing, except as set forth in this Agreement or otherwise
agreed in writing by Seller and Buyer.

 

j.             To
Seller’s Knowledge, and except: (i) as may be disclosed on Exhibit D or elsewhere in connection with this Agreement,
(ii) the Title Exceptions, (iii) the Specific Recorded Property Documents, (iv) the Coggin Mining Lease, and (v) the
contracts or agreements by which Seller or its predecessors or affiliates acquired the Subject Property, there are no leases, contracts,
permits, warranties, licenses, or bonds to which the DRHE Property will be subject to following the Closing (collectively, the “Contracts”);
provided however, that, in the event of any such Contracts, and if Buyer elects to assume such Contracts, the same shall be transferred,
assigned and/or conveyed to Buyer, to the extent such Contracts are transferrable, assignable or conveyable, upon the Closing for no additional
consideration; provided further that nothing in this subparagraph shall be deemed to create any liability or duty of Buyer to accept and/or
assume any such Contract; provided further, however, Buyer shall accept and assume all matters of record including without limitation
the obligations regarding royalty interests and other obligations contained on Exhibit D, the Coggin Mining Lease and the
Specific Recorded Property Documents.

 

Seller
and any of Seller’s officers, directors, shareholders, employees, representatives or agents, do not make
and expressly disclaim, any representations or warranties regarding the Subject Property or the Subject Property Information except as
set forth in this Section 13, whether in writing or communicated orally, and the Subject Property is sold “AS-IS,
WHERE-IS AND WITH ALL FAULTS.”

 

14.          Buyer’s
Representations and Warranties. Buyer represents and warrants to Seller (with the understanding that Seller is relying on said representations,
warranties and covenants in selling the Subject Property in accordance with this Agreement), as of the Effective Date and the Closing
Date, as follows:

 

a.            The
execution, delivery, and performance by Buyer of this Agreement does not and will not conflict with, or result in the breach or termination
of any provision of, or constitute a default under, any indenture, mortgage, deed of trust, lease, contract, or other instrument or agreement
or any order, judgment, award, or decree to which Buyer is subject or by which the assets of Buyer may be bound.

 

b.            Buyer
has the requisite right, power and authority to enter into this Agreement without obtaining the consent or approval of any governmental
authority or any other person or entity to which Buyer may be subject.

 

    10

     

    

 

c.            EXCEPT
AS OTHERWISE PROVIDED IN SECTION 13 OF THIS AGREEMENT, IT
IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND SPECIFICALLY DISCLAIMS ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER,
EXPRESS OR IMPLIED, WITH RESPECT TO THE SUBJECT PROPERTY, INCLUDING,
BUT NOT LIMITED TO, WARRANTIES OR REPRESENTATIONS AS TO THE MATTERS OF
TITLE, ZONING, MINERALIZATION, SIZE,
DIMENSIONS, TAX CONSEQUENCES, PHYSICAL OR ENVIRONMENTAL CONDITIONS, AVAILABILITY OF ACCESS, INGRESS OR EGRESS, OPERATING HISTORY
OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, GOVERNMENTAL REGULATIONS OR ANY OTHER MATTER OR THING RELATING TO OR AFFECTING THE
SUBJECT PROPERTY, INCLUDING, WITHOUT LIMITATION, THE VALUE, CONDITION, MERCHANTABILITY, MARKETABILITY, PROFITABILITY, SUITABILITY
OR FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE SUBJECT PROPERTY. BUYER
HAS NOT RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER, ANY OFFICER,
DIRECTOR, EMPLOYEE OF SELLER, OR ANY REPRESENTATIVE OR AGENT OF
SELLER. BUYER REPRESENTS THAT IT IS A SOPHISTICATED AND KNOWLEDGEABLE MINING PROFESSIONAL AND THAT IT IS RELYING ON ITS OWN EXPERTISE
AND THAT OF BUYER’S CONSULTANTS IN PURCHASING THE
SUBJECT PROPERTY. BUYER HAS CONDUCTED SUCH INSPECTIONS AND INVESTIGATIONS OF THE
SUBJECT PROPERTY AS BUYER DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, THE ACCESS,
MINERALIZATION, PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND IS RELYING ON AND SHALL RELY UPON SAME (AND NOT ON ANY REPRESENTATION, INFORMATION
OR DOCUMENTATION RECEIVED FROM SELLER) IN ENTERING INTO THIS AGREEMENT AND MAKING ANY OF THE PAYMENTS HEREUNDER AND EXERCISING THE OPTION.
UPON CLOSING, BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY BUYER’S INSPECTIONS
AND INVESTIGATIONS. IT IS FURTHER AGREED THAT SELLER DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES RELATING IN ANY WAY TO THE
SUBJECT PROPERTY REGARDING ANY HAZARDOUS SUBSTANCE, AS SUCH TERM IS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION
AND LIABILITY ACT OF 1980, AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER OR REGARDING ANY OTHER ENVIRONMENTAL CONDITION OR VIOLATION
ON, ABOUT OR UNDER THE SUBJECT PROPERTY, AS MAY BE DESCRIBED IN ANY
STATE, LOCAL OR FEDERAL LAW, RULE, ACT, REGULATION, OR ORDER. BUYER HEREBY ASSUMES ALL RISK AND LIABILITY (AND AGREES THAT SELLER SHALL
NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL, OR OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATING TO THE OWNERSHIP,
USE, CONDITION, LOCATION, MAINTENANCE, REPAIR OR OPERATION OF THE SUBJECT PROPERTY.
BUYER ACKNOWLEDGES THAT IT KNOWS THAT THE SUBJECT PROPERTY AND THE SURFACE WAS PREVIOUSLY OWNED AND/OR CONTROLLED BY COMPANIES THAT CONDUCTED
MINERAL EXPLORATION AND DEVELOPMENT ACTIVITIES ON THE SUBJECT PROPERTY (THE “PRIOR ACTIVITIES”) AND BUYER ACKNOWLEDGES
AND AGREES THAT SELLER MAKES NO REPRESENTATION OR WARRANTY AND HAS NO LIABILITY TO BUYER RELATED TO OR REGARDING THE PRIOR ACTIVITIES.
BUYER ACKNOWLEDGES AND AGREES THAT UPON CLOSING, SELLER SHALL QUITCLAIM TO
BUYER AND BUYER SHALL ACCEPT THE SUBJECT PROPERTY “AS IS, WHERE
IS, WITH ALL FAULTS” AND BUYER IS RELYING ON ITS OWN INVESTIGATION
AND ANALYSIS. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT THERE ARE NO ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS, COLLATERAL TO OR
AFFECTING THE SUBJECT PROPERTY MADE TO BUYER BY SELLER, ANY OFFICER,
DIRECTOR, EMPLOYEE OF SELLER, OR ANY REPRESENTATIVE OR AGENT OF
SELLER OR ANY THIRD PARTY AND BUYER HEREBY RELEASES SELLER FROM ANY AND ALL LIABILITY RELATING TO ANY WARRANTIES OR REPRESENTATIONS THAT
MAY HAVE BEEN PREVIOUSLY PROVIDED (WHETHER ORAL OR WRITTEN) TO BUYER BY SELLER, ANY OFFICER,
DIRECTOR, EMPLOYEE OF SELLER, OR ANY REPRESENTATIVE OR AGENT OF
SELLER OR BY THIRD PARTIES. THE TERMS AND CONDITIONS OF THIS SECTION 14.c SHALL EXPRESSLY SURVIVE THE
CLOSING AND NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR
WRITTEN STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING TO THE
SUBJECT PROPERTY FURNISHED BY ANY AGENT, OFFICER, DIRECTOR, EMPLOYEE, OR OTHER PERSON REPRESENTING
SELLER, UNLESS THE SAME ARE SPECIFICALLY SET FORTH OR REFERRED TO IN SECTION 13
OF THIS AGREEMENT. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT THE PROVISIONS OF THIS SECTION 14.c
WERE A MATERIAL FACTOR IN THE DETERMINATION OF THE PURCHASE PRICE FOR THE SUBJECT
PROPERTY.

 

    11

     

    

 

d.            Except
with respect to Seller’s representations and
warranties contained in Section 13, and
the covenants and indemnities of Seller set forth in this Agreement,
as of the Closing, Buyer irrevocably and unconditionally waives, releases,
discharges and forever acquits Seller and its past, present and future employees, officers, directors, agents, representatives, members,
managers, shareholders and affiliates and their respective successors and assigns (collectively, “Seller
Parties”) for, from and against all claims, actions, causes
of action, suits, liens, demands, liabilities, damages, costs, penalties, forfeitures, losses and expenses, including, without limitation,
reasonable attorneys’ fees and costs and the costs and expenses
of enforcing any indemnification, defense or hold harmless obligation under this
Agreement (“Claims”)
of any nature whatsoever known or unknown, suspected or unsuspected, fixed or contingent, which Buyer now has, owns, holds or claims to
have, own or hold, or at any time heretofore had, owned, held or claimed to have, own or hold, against Seller and the Seller Parties,
relating to this Agreement, the Subject
Property, the physical condition of the Subject Property, the entitlements
for the Subject Property, the condition of the Subject
Property, any Hazardous Materials that may be on or within the Subject
Property, and any other matter relating to the Seller or the Subject Property.
Buyer agrees that the waivers and releases set forth above extend to all Claims of any nature and kind whatsoever, known or unknown, suspected
or not suspected. For purposes hereof, “Hazardous Materials”
means any liquid, substance, material, waste, gas or particulate matter which is regulated under any applicable present or future federal,
state or local law, statute, regulation or ordinance, and any judicial or administrative order or judgment thereunder, pertaining to health,
industrial hygiene or the environmental or ecological conditions by any local governmental authority, the State of Arizona, or the United
States Government, including, but not limited to, any liquid, material, substance, waste, gas or particulate matter which is: (a) defined
as a “hazardous waste,”
 “hazardous material,” “hazardous substance, “extremely
hazardous waste,” “restricted hazardous waste”
or “pollutant”
under any provision of Arizona law, rule or regulation; (b) a petroleum product; (c) asbestos; (d) urea formaldehyde
form insulation; (e) polychlorinated biphenyls; (f) radioactive material; (g) designated as a “hazardous
substance” pursuant to Section 311 of the Clean Water Act,
33 U.S.C. § 1251 et seq. (33 U.S.C. § 1321); (h) defined as a “hazardous
waste” pursuant to Section 1004 of the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903); or (i) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive Environmental
Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. The terms and conditions of this section 14.d shall expressly
survive the closing and not merge with the provisions of any closing documents..
Buyer further acknowledges and agrees that the provisions of this Section 14.d
were a material factor in the determination of the Purchase Price for the Subject
Property.

 

15.          Survival
of Covenants and Related Matters. The representations and warranties made and set forth in this Agreement shall not survive the Closing.
All covenants and agreements, including the covenants and agreements relating to the AMRC Payment, the Generational Payment, the AMRC
ROFR and the GP ROFR shall be binding on the successors and assigns of Buyer and shall survive indefinitely until performed in accordance
with their terms.

 

16.          No
Successor; No Assumption. Buyer is not and is not deemed to be a successor of Seller, it being understood that Buyer is acquiring
only the Subject Property; and it is expressly understood and agreed, except for the Title Exceptions, that Buyer has not and does not
hereby assume or agree to assume any liability whatsoever of Seller and Buyer does not assume or agree to assume any obligation of Seller
under any contract, agreement, indenture, or any other document to which Seller may be a party or by which Seller are or may be bound,
or which in any manner affect the Subject Property or any part thereof, except as expressly agreed to by Buyer in this Agreement.

 

    12

     

    

 

17.          Notices.
All communications, consents, and other notices provided for in this Agreement shall be in writing and shall be effective on the date
hand delivered, sent by electronic email (with receipt confirmation), or mailed by registered or certified mail, return receipt requested,
postage prepaid, and addressed as follows:

 

If to Seller, to
Seller’s Representative:

 

DRH Energy, Inc.

1341 Horton Circle

Arlington, Texas 76011

Attn: Bill W. Wheat, Executive Vice President
and Chief Financial Officer

Email: APMorrow@foundersoil.com

 

With a copy to:

 

Fennemore Craig, P.C.

2394 East Camelback Road, Suite 600

Phoenix, Arizona 85016

Attn: Sarah A. Strunk

E-mail: sstrunk@fennemorelaw.com

 

or to such other address as
Seller may designate to Buyer, in writing.

 

If to Buyer, to:

 

Central Arizona Resources,
LLC

151 East Broadway, Suite 1600

Tucson, AZ 85711

Attn: Andrew J. Russell

Email: ajrussell@russellmining.com

 

or to such other address as Buyer may
designate to Seller, in writing.

 

18.          Default
and Termination.

 

a.            Buyer
may terminate this Agreement at any time during the Option Period in its sole discretion by giving Seller written notice of termination,
and this Agreement shall be deemed terminated immediately upon receipt by Seller of the notice of termination.

 

b.            Seller
may terminate this Agreement if Buyer breaches any material covenant or obligation under this Agreement and such has not been cured within
the earlier of thirty (30) days after written notice by Seller. If any breach identified by Seller can be cured but cannot reasonably
be cured within the earlier of thirty (30) day notice period, Buyer’s cure period shall be extended so long as Buyer is proceeding
with diligence and in good faith to cure such breach but not longer than ninety (90) days of the Effective Date.

 

c.            If,
on the Closing Date, the representations and warranties of Seller under this Agreement are inaccurate in any material respect as of such
date, then Buyer may, as its sole and exclusive remedy and in its sole discretion, terminate this Agreement. If, on the Closing Date,
the representations and warranties of Buyer under this Agreement are inaccurate in any material respect as of such date, then Seller may,
as its sole and exclusive remedy and in its sole discretion, terminate this Agreement.

 

d.            If
this Agreement is terminated as set forth in this Section 18 prior to the Closing Date, only the obligations of the parties
which accrued before the termination date shall survive such termination and be timely discharged by the obligated party, including any
Payments that had accrued or are past due as of the date of termination but not yet made by Buyer. All Purchase Price payments made by
Buyer to Seller prior to such termination shall be non-refundable to Buyer and shall be retained by Seller except as contemplated in the
last sentence of Section 3.

 

    13

     

    

 

19.          Confidentiality.
Seller and Buyer shall not disclose the terms or any other information related to this Agreement, the transactions contemplated thereby
or Subject Property Information provided to Buyer by Seller pursuant to Section 4, to anyone other than their respective officers,
directors, managers, legal counsel, staff, advisors, lenders, affiliates, and investors or prospective investors, or other parties having
a bona fide need to know, without the consent of the other party, except as may otherwise be required by law. Neither party shall make
a public announcement concerning the Agreement in the absence of prior written consent of the other party. Notwithstanding the foregoing,
following the Closing Date, Seller consents to the disclosure by Buyer and/or IVNE of the terms of this Agreement and the transactions
contemplated hereby and the Subject Property Information provided to Buyer by Seller pursuant to Section 4 in connection with
the filing of any registration statement, information memorandum or other public offering document if and to the extent that counsel to
IVNE advises that such disclosure is required; provided, however, that Seller shall have the right to review and comment on such
disclosure, with reasonable comments made by Seller to be incorporated by Buyer in any such disclosure and provided further, that
Seller makes no representation or warranty as to either the receipt of, or the need for, consent by any third party to the disclosure
of Subject Property Information prepared or provided by such third party.

 

20.          Miscellaneous.
In addition to the foregoing, the parties to this Agreement agree as follows:

 

a.            This
Agreement, including the attached exhibits, constitutes the entire agreement between the parties pertaining to the subject matter contained
in it and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral,
with respect thereto. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all parties.
No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or
not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed, in writing, by the party
making the waiver.

 

b.            The
recitals stated above and the exhibits attached to this Agreement shall be and hereby are incorporated in and an integral part of this
Agreement by this reference.

 

a.            This
Agreement shall be binding upon, and shall inure to the benefit of the parties and their respective successors and assigns. Only Buyer
shall be entitled to assign its rights and obligations hereunder to a third party only: (i) after written notice and sufficient and
reasonable detail regarding the assignee is given to Seller and (ii) upon the prior written consent of Seller, which shall not be
unreasonably withheld, delayed or conditioned. Upon the written consent of Seller to the assignment by Buyer, this Agreement shall continue
in full force and effect between Seller and Buyer’s assignee. Any assignment by either party shall be made expressly subject to
all terms and conditions herein and each assignee shall agree to be bound hereby in any such assignment document.

 

c.            In
any litigation or other proceeding relating to the breach of any representation, warranty or covenant of Seller or Buyer, as the case
may be, in this Agreement, the prevailing party shall be entitled to recover its out-of-pocket costs and reasonable attorneys’ fees,
including those incurred at trial or on appeal.

 

d.            Nothing
in this Agreement is or shall be intended to provide or convey any actionable right or benefit to or upon any person or persons other
than Seller and Buyer. Except as otherwise specifically provided herein, each party shall bear its own costs and expenses (including legal
and consulting fees) in connection with this Agreement and the negotiation of all agreements and preparation of documents contemplated
by this Agreement.

 

    14

     

    

 

e.            This
Agreement shall be construed and enforced in accordance with the laws (except the conflicts laws) of the State of Arizona.

 

f.            The
parties agree from time to time to execute such additional documents as are necessary to effect the intent of the parties as manifested
by this Agreement.

 

g.            Buyer
may record a memorandum of this Agreement subject to the reasonable approval of Seller.

 

h.            Neither
party will be liable to the other party for any special, indirect, incidental, consequential, exemplary or punitive damages, including,
without limitation, those based upon lost goodwill, lost profits, work stoppages, impairment of other goods or breach of another contract,
whether or not the other party had reason to know of such potential damages incurred by the other party.

 

i.            This
Agreement may be signed in any number of counterparts, each of which shall be deemed an original and, when taken together, shall constitute
one and the same instrument.

 

[Signatures on Following Page]

 

    15

     

    

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the Effective Date.

 

	 	SELLER:
	 	 
	 	DRH ENERGY, INC.,
	 	a Colorado corporation
	 	 
	 	/s/ Bill W. Wheat
	 	Name: 	Bill W. Wheat
	 	Title: 	Executive Vice President and Chief Financial
Officer
	 	 	 
	 	 	Dated this ____ day of August, 2021.
	 	 
	 	BUYER:
	 	 
	 	CENTRAL ARIZONA RESOURCES, LLC,
	 	an Arizona limited liability company
	 	 
	 	/s/ Andrew J. Russell
	 	Name:	Andrew J. Russell
	 	Title: 	Manager
	 	 	 
	 	 	Dated this ____ day of August, 2021.

 

    16

     

    

____________

 

EXHIBIT A

___________

 

DESCRIPTION OF THE REAL PROPERTY 

CONTAINING THE MINERALS

 

This exhibit has been omitted pursuant to Item
601(a)(5) of Regulation S-K because the information contained herein is not material and is not otherwise publicly disclosed. The registrant
undertakes to furnish supplementally a copy of this schedule to the Securities and Exchange Commission upon request.

 

     

     

    

 

 

 

EXHIBIT B-1

 

 

 

(Minerals Quitclaim Deed)

 

[attached]

 

    1

     

    

 

____________

 

EXHIBIT B-1

 

___________

 

(DRH Construction Quitclaim Deed)

 

[attached]

 

    1

     

    

 

_________

 

Exhibit A 

to
DRH Construction Quitclaim Deed

_________

 

DESCRIPTION OF THE UNPATENTED MINING CLAIMS

 

[attached]

 

    4

     

    

 

	_________
                                            

                                            

                                            Schedule B 

                                            to DRH Construction Quitclaim Deed

                                            _________ 

                                            

                                            DESCRIPTION OF THE REAL PROPERTY 

                                            ENCOMPASSING THE RETAINED PARCELS

                                            

                                            [attached]

 

     

     

    

 

 

 

EXHIBIT B-3 

 

 

 

(Assignment and Assumption
Agreement) 

 

[attached] 

 

    1 

     

    

 

 

 

EXHIBIT C-1

 

 

 

(Seller’s Form of NonForeign Status
Certificate)

 

[attached]

 

    1 

     

    

 

 

 

EXHIBIT C-2

 

 

 

(DRH Construction’s Form of NonForeign
Status Certificate)

 

[attached]

 

    2 

     

    

 

 

 

EXHIBIT D

 

 

 

(Subject Property Royalties)

 

This exhibit has been omitted pursuant to Item 601(a)(5) of Regulation
S-K because the information contained herein is not material and is not otherwise publicly disclosed. The registrant undertakes to furnish
supplementally a copy of this schedule to the Securities and Exchange Commission upon request.

 

    1 

     

    

 

 

 

EXHIBIT E  

 

 

 

(Schedule 6.3.1)

 

[attached]

 

    1

     

    

 

 

 

EXHIBIT F

 

 

 

UNPATENTED MINING CLAIM AGREEMENT

 

[attached]

 

    1

     

    

 

 

 

EXHIBIT G

 

 

 

DESCRIPTION OF THE REAL PROPERTY

ENCOMPASSING THE RETAINED PROPERTY

 

[attached]

 

    1

     

    

 

 

 

EXHIBIT H

 

 

 

DESCRIPTION OF THE REAL PROPERTY

ENCOMPASSING THE ROFR LAND

 

[attached]

 

    1Exhibit 10.8

 

SURFACE USE AGREEMENT

 

THIS SURFACE USE AGREEMENT
(the “Agreement”) is made and entered into effective as of this 3rd day of August, 2021 (the
 “Effective Date”), by and between Legends Property, LLC, a Delaware limited liability company, whose address
is c/o The Wolff Company, 6710 E. Camelback Rd., Scottsdale, AZ 85251 (hereinafter referred to as “Legends”),
and Central Arizona Resources Mining Associates LLC, a Nevada limited liability company, whose address is 5151 East Broadway, Suite 1600,
Tucson, AZ 85711 (hereinafter referred to as “CAR”). Each of Legends and CAR may be hereinafter referred to
individually as a “Party” and they may be collectively referred to as the “Parties.”

 

RECITALS

 

A.            Legends
owns the surface estate in certain fee lands consisting of approximately 7,000 acres of land, situated in Pinal County, Arizona, as more
particularly described in Exhibit A-1 attached hereto and depicted on the map attached as Exhibit A-2 (the “Surface
Premises”), subject to encumbrances, easements, restrictions, mineral reservations, and burdens appearing in the records
of the Pinal County Recorder. The Surface Premises, along with the corresponding severed mineral estate, are referred to herein collectively
as the “Subject Property.”

 

B.            DRH
Energy, Inc. (“DRHE”) is the owner of the mineral estate within the Subject Property. Pursuant to a separate
agreement between CAR and DRHE, CAR will acquire the right, subject to the terms and conditions of this Agreement, to explore for, develop,
mine, process, remove and sell the minerals within the Subject Property (the “Mineral Lease”). It is anticipated
that Mineral Lease will be executed concurrently with this Agreement.

 

C.            The
Parties desire to enter into this Agreement to give CAR the right to access and use so much of the Surface Premises as is reasonably necessary
for the exploration for, and the analysis of, the mineral deposits located within the Subject Property.

 

AGREEMENT

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in consideration of the recitals, covenants,
and the mutual promises herein contained, the Parties agree as follows:

 

1.            Definitions.
For the purpose of this Agreement the following terms shall have the following meanings:

 

(a)            “CGL”
shall have the meaning set forth in Section 5(j) hereof.

 

     

     

    

 

(b)            “Claims”
means any and all claims (including those for damage to property, bodily injury, personal injury, illness, disease, maintenance, cure,
loss of parental or spousal consortium, wrongful death, loss of support, death, and wrongful termination of employment), damages (including
damages to property that result from pollution as well as the damages that result from the control, removal, restoration and cleanup of
pollution or contamination), liabilities (including plugging liability), losses, demands, known or unknown, contingent or otherwise, liens,
encumbrances, fines, penalties, causes of action of any kind, obligations, costs, judgments, interest and awards (including payment of
reasonable attorneys’ fees and costs of litigation) or amounts, of any kind or character, whether under judicial proceedings, administrative
proceedings or otherwise, or conditions on the Surface Premises or attributable to any person or persons, a Party, or any of its Related
Parties, breach of representation or warranty (expressed or implied), under any theory of tort, contract, breach of contract (including
any claims which arise by reason of indemnification or assumption of liability contained in other contracts entered into by a Party or
any of its Related Parties) arising out of, or incident to or in connection with this Agreement or any operation, activity, facility or
occupancy of the Surface Premises, and any and all Losses incurred in connection therewith.

 

(c)            “Consequential
Damages” shall have the meaning set forth in Section 9(d) hereof.

 

(d)            “DRHE”
shall have the meaning set forth in the Recitals.

 

(e)            “Drilling”
shall have the meaning set forth in Section 2(b) hereof.

 

(f)             “Drilling
Area” shall have the meaning set forth in Section 2(b) hereof.

 

(g)            “Environmental
Law” means any applicable statute, code, enactment, ordinance, rule, regulation, permit, consent, approval, authorization,
license, judgment, order, writ, common law rule (including the common law with respect to nuisance and tortious liability), decree,
injunction, or other requirement having the force and effect of law, whether local, state, tribal or federal, at any time in force or
effect relating to: (1) emissions, discharges, spills, releases or threatened releases of Hazardous Material into ambient air, surface
water, ground water, watercourses, subsurface strata, publicly owned treatment works, drains, sewer systems, wetlands, septic systems
or onto land; (2) the use, treatment, storage, disposal, handling, manufacturing, transportation or shipment of Hazardous Material;
(3) the regulation of storage tanks; and (4) otherwise relating to pollution or protection of human health, safety or the environment
including, but not limited to, the following federal statutes (as amended or renewed) and their state law counterparts, as well as their
implementing rules and regulations: the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§
9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et seq., the Federal Insecticide,
Fungicide and Rodenticide Act, 7 U.S.C. §§ 136k et seq., the Emergency Planning and Community Right-to-Know Act, 42 U.S.C.
 §§ 11011, et seq., the Toxic Substance Control Act, 15 U.S.C. §§ 2601, et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. §§ 5101, et seq., the Clean Water Act, 33 U.S.C. §§ 1251, et seq.,
the Clean Air Act, 42 U.S.C. §§ 7401, et seq., the Safe Drinking Water Act, 42 U.S.C. §§ 300f, et seq.,
the National Environmental Policy Act, 42 U.S.C. §§ 4231, et seq., and the Mine Safety and Health Act, 30 U.S.C. §§
801, et seq.

 

(h)            “Fourth
Year Payment” shall have the meaning set forth in Section 3(b) hereof.

 

(i)             “Geophysical
Testing” shall have the meaning set forth in Section 2(a) hereof.

 

    2

     

    

 

(j)             “Hazardous
Material” means at any time any substance, waste, pollutant, contaminant or materials, in solid, liquid or gaseous form,
which: (a) is a substance regulated, defined or designated as hazardous, extremely hazardous, imminently hazardous, dangerous or
toxic under any Environmental Law or (b) is a substance so regulated, defined or designated with respect to which a governmental
authority may require investigation, monitoring, reporting, record keeping, or remediation. including (i) petroleum and petroleum
products including crude oil and any fraction thereof; (ii) natural gas, synthetic gas, and any mixtures thereof; (iii) radioactive
substances; (iv) asbestos; and (v) polychlorinated biphenyls.

 

(k)            “Indemnifying
Party” and “Indemnified Party” shall have the meaning set forth in Section 9(c) hereof.

 

(l)             “Knowledge”
means to the actual knowledge, as of the Effective Date, of Timothy M. Wolff, without imputation of knowledge or further duty of investigation
or inquiry, and will not be construed to refer to the knowledge of any other owners (direct and indirect), control persons, employees,
agents, consultants, contractors, or representatives of Legends.

 

(m)           “Law”
means any applicable statute, code, enactment, ordinance, rule, regulation, permit, consent, approval, authorization, license, judgement,
order, writ, common law rule (including the common law with respect to nuisance and tortious liability), decree, injunction, or other
requirement having the force and effect of law, whether local, state, tribal, or federal.

 

(n)            “Liens”
shall have the meaning set forth in Section 5(f) hereof.

 

(o)            “Losses”
means reasonable attorneys’, consultants’, and experts’ fees; remedial, removal or response costs; court costs; costs
incurred in connection with injunctive relief sought on behalf of any governmental authority or private party; and litigation expenses
of whatever kind and nature.

 

(p)            "Mineral
Lease” shall have the meaning set forth in the Recitals.

 

(q)            “NPDES”
shall have the meaning set forth in Section 5(b) hereof.

 

(r)             “Option
Agreement” shall have the meaning set forth in Section 2(g) hereof.

 

(s)            “Permits”
shall have the meaning set forth in Section 5(b) hereof.

 

(t)             “Personal
Property” shall have the meaning set forth in Section 5(j) hereof.

 

(u)            “Prime
Rate” means the interest rate publicly announced by Citibank, N.A. (or such other financial institution as the Parties may
mutually agree), as available for loans to its commercial customers, in effect at the time that interest rate is applied to an amount
owing under this Agreement.

 

(v)            “Related
Party” or “Related Parties” means, with respect to either Party, (i) its parent company and
its subsidiaries, (ii) an entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with that Party, (iii) its affiliates, or (iv) its partners or joint venturers.

 

(w)           “SPH”
shall have the meaning set forth in Section 2(g)(iii) hereof.

 

    3

     

    

 

(x)            “SPH
Consent” shall have the meaning set forth in Section 2(g) hereof.

 

(y)            “Subject
Property” shall have the meaning set forth in the Recitals.

 

(z)            “Surface
Use Payments” shall have the meaning set forth in Section 4 hereof.

 

(aa)          “Trigger
Date” shall have the meaning set forth in Section 3(a) hereof.

 

2.            Grant
of Rights.

 

For and in consideration of
the terms and conditions of this Agreement, including CAR’s payment obligations set forth in Section 4 hereof, Legends
hereby grants to CAR, so long as CAR is not in default hereunder, the following rights:

 

(a)            Geophysical
Testing. Legends hereby grants to CAR the exclusive right to enter upon all or any portion of the Surface Premises for the purposes
of above-ground, noninvasive, geophysical testing (the “Geophysical Testing”). The purpose of this Geophysical
Testing is to identify, validate, and quantify the extent of below-ground mineralization. No drilling or development shall be permitted
as part of the Geophysical Testing. No construction, installation, use, or maintenance of any permanent or temporary improvements, structures,
or equipment shall be permitted as part of the Geophysical Testing. No storage of products shall be permitted as part of the Geophysical
Testing. Any disturbance caused to the Surface Premises by the Geophysical Testing shall be reclaimed, restored, and remediated by CAR
to the satisfaction of Legends. For purposes of this Section 2(a), “exclusive” means that CAR will be the only
party granted the right to enter upon the Surface Premises to conduct above-ground, noninvasive, geophysical testing, but such right shall
be subject to other uses of the Surface Premises, including those rights specifically set forth in Section 2(g) hereof.

 

(b)            Drilling.
Legends hereby grants to CAR the exclusive right to enter upon and conduct drilling operations on the portion (and only on the portion)
of the Surface Premises designated as the “Drilling Area” on Exhibit A-2. For purposes of this Agreement, “drilling
operations” shall include the use of truck- or track-mounted drill rigs, drilling, core drilling, hand sampling, bulk sampling,
and the use of proper equipment to recover drill cuttings and spoil from the drill hole (“Drilling”), but shall
not include any activities described in Section 2(d) hereof. For the avoidance of doubt, CAR may also conduct Geophysical
Testing within the Drilling Area. Notwithstanding deed restrictions associated with the Surface Premises, Legends acknowledges that Drilling
activities are expressly authorized and will not endanger, impair or affect surface support of the real property. CAR confirms that Drilling
activities each year during the term of this Agreement will be conducted generally in accordance with the drilling program appended as
Exhibit C, and which drilling program is indicative of the Drilling activity but does not lessen CAR’s right to conduct Drilling
activities under this Agreement. Any disturbance caused to the Surface Premises by the Drilling shall be reclaimed, restored, and remediated
by CAR to the satisfaction of Legends. For purposes of this Section 2(b), “exclusive” means that CAR will be the
only party granted the right to enter upon the Surface Premises to conduct drilling operations, but such right shall be subject to other
uses of the Surface Premises, including those rights specifically set forth in Section 2(g) hereof.

 

    4

     

    

 

(c)            Expansion
of Drilling Area. If CAR desires to expand the Drilling Area, it must provide written notice to Legends of its desire to expand the
Drilling Area. Such notice shall provide (i) a description of the proposed expanded area; (ii) the date on which such expansion
is proposed to occur, which date shall be no less than fifteen (15) days from the date of such notice. Legends shall have ten (10) days
to review the request and shall allow such expansion provided it will not unreasonably interfere with or restrict the current or anticipated
operations and business of Legends on, in, under, or above the Surface Premises.

 

(d)            Development
of Mining Rights Excluded. This Agreement does not grant any right to develop, mine (by any method), remove, extract, produce, store,
mill, process, refine, save, care for, treat, transport, market, sell, or otherwise use any minerals, tailing, waste materials, overburden,
surface stripping materials, process solutions, or other materials other than as described in Section 2(b) hereof. This
Agreement does not grant any right to construct works, wells, buildings, plants, waterways, reservoirs, pipelines, roads, railroads, bridges,
haulageways, communication lines, power lines, tipples, hoists, tanks, power stations, ventilation shafts, production shafts, telephone
lines, electric lines, transmission lines, or any other structures, improvements, equipment, or facilities commonly associated with generally
accepted mining operations other than as described in Section 2(b) hereof. If CAR desires to conduct any of the activities
described in this Section 2(d) on the Surface Premises, CAR must enter into a separate written agreement with Legends
on terms and conditions mutually agreed to by the Parties, including payment provisions in connection with the use and occupancy of the
Surface Premises. Such payment mechanisms may include royalty, purchase, lease, lease-purchase option, equity participation or other forms
of remuneration.

 

(e)            Access
Rights.

 

(i)            CAR
shall have a non-exclusive right to use the existing roads and trails on the Surface Premises as necessary or convenient to conduct the
Geophysical Testing, Drilling, or reclamation as described in this Agreement. CAR must use existing roads or trails whenever reasonably
practicable and must restore such roads and trails if CAR’s usage of such roads or trials materially alters such roads or trails.
If CAR desires to upgrade an existing road or trail or desires to construct a new road or trial, CAR shall first design such new road
or trail in accordance with applicable Laws, then CAR must present such design to Legends together with a commitment to provide sufficient
financial surety running to Legends to reclaim or restore the affected area, then CAR must consult with Legends regarding the proposed
new road or trail, and, upon written approval from Legends, construct such new road or trail in accordance with applicable Laws after
posting sufficient financial surety. Any such new or upgraded roads or trails shall be reclaimed and restored to the satisfaction of Legends
at CAR’s sole cost and expense, unless otherwise directed by Legends. If CAR fails to reclaim and restore any such new or upgraded
road or trail, Legends has the right but not the obligation, in its sole discretion, to reclaim and restore such new or upgraded road
or trail using the financial surety posted by CAR. If the amount of surety is insufficient to cover the costs of such reclamation and
restoration, all additional costs shall be reimbursed to Legends by CAR upon written notice, with interest from the date stated in the
notice at the Prime Rate plus two (2) percent.

 

    5

     

    

 

(f)            Water
Rights. This Agreement does not grant to CAR any water rights of any kind. Should CAR appropriate water and drill and complete water
wells on the Surface Premises necessary for CAR’s operations, any such rights obtained by CAR shall be tendered to Legends, without
payment or other consideration therefor upon termination of this Agreement.

 

(g)            Limitations
on Rights Granted.  It is expressly understood that the rights herein granted to the Surface Premises shall in no event
exceed those possessed by Legends. The rights herein granted are without covenant of title or quiet enjoyment and are subject to:

 

(i)            all
outstanding rights, easements, rights-of-way, and interests in the Surface Premises that are of record or discoverable upon reasonable
inspection of the Surface Premises respecting the use of the Surface Premises;

 

(ii)           the
right of Legends to renew and extend the term of such rights and easements;

 

(iii)          the
terms and conditions of that certain Real Estate Purchase Option Agreement by and between Legends and Sustainable Property Holdings, LLC
(“SPH”) dated June 18, 2020, as amended (the “Option Agreement”);

 

(iv)          the
terms and conditions of that certain Agricultural Lease with a term ending on December 31, 2024 (the “Agricultural Lease”)
and

 

(v)           the
terms and conditions of the Mineral Lease.

 

(h)            All
of the rights granted to CAR with respect to the Surface Premises under this Section 2 may be used by CAR only in connection
with its activities under the Mineral Lease.

 

(i)             CAR,
at its sole cost and expense, shall enter into a separate agreement with SPH providing SPH’s consent to CAR’s access and use,
under the terms of this Agreement, to the portions of the Surface Premises subject to the Option Agreement (the “SPH Consent”).
CAR shall not exercise its rights under this Agreement on the portions of the Surface Premises subject to the Option Agreement until CAR
has obtained the SPH Consent.

 

3.            Term.

 

(a)            Initial
Term. This Agreement shall be in force and effect for a term of thirty-six (36) months unless terminated sooner according to the provisions
of this Agreement, which term shall commence upon the earlier of (i) 90 days following the Effective Date or (ii) the date on
which CAR enters the Surface Premises pursuant to this Agreement (the “Trigger Date”).

 

(b)            Extension
Period. CAR may extend the term of this Agreement for an additional 12 months, for a total term of 48 months, by, no later than 35
months after the Trigger Date: (i) providing written notice to Legends of its intent to extend the term of this Agreement for an
additional 12 months, for a total term of 48 months; and (ii) paying to Legends an amount equal to Nine Hundred and Twenty Thousand
Dollars ($920,000.00) (the “Fourth Year Payment”). In the event that a purchase agreement for the Surface Premises
be agreed upon between CAR and Legends within 12 months following the termination or expiration of this Agreement, the Fourth Year Payment,
but not any of the other Surface Use Payments, shall be applied to the purchase price under any such separate agreement.

 

    6

     

    

 

(c)            Termination.
This Agreement shall terminate or expire, as the case may be, in accordance with the provisions of Section 12 hereof.

 

4.            Surface
Use Payments.

 

(a)            Compensation.
In consideration of the rights granted hereunder, CAR will pay to Legends the amount of:

 

		•	Year 1 Payment – One Million Dollars ($1,000,000.00) to be paid as follows:

 

		o	Eight Hundred Thousand Dollars ($800,000.00) within five (5) days following the Effective Date.

 

		o	Two Hundred Thousand Dollars within five (5) days following the Trigger Date.

 

		•	Year 2 Payment - Six Hundred Thousand Dollars ($600,000.00), due on or before the first anniversary
of the Trigger Date.

 

		•	Year 3 Payment - Eight Hundred Thousand Dollars ($800,000.00), due on or before the second anniversary
of the Trigger Date.

 

(collectively with the Fourth Year Payment, the
 “Surface Use Payments”). If any scheduled payment date falls on a day which is not a business day in the State
of Arizona, then the due date for such payment shall be extended to the next business day. The Surface Use Payments shall be non-refundable
to CAR in the event this Agreement expires or is terminated, unless Legends is in default or breach of this Agreement. The Surface Use
Payments shall be paid in advance, not in arrears.

 

The Parties acknowledge that SPH may exercise
its option under the Option Agreement, and hereby agree that in such event, the Surface Use Payments shall not be reduced but shall remain
the same as described herein.

 

(b)            Compensation
for Loss of Livestock or Agriculture and Damages to Improvements. CAR acknowledges that the Agricultural Lease provides for reimbursement
to the Tenant under the Agricultural Lease “for any interference with the agricultural operations conducted on the Leased Property
under the terms of this Lease arising from exploration, drilling or mining operations.” Agricultural Lease at ¶ 32. CAR shall
pay Legends, or its lessees, sublessees, or invitees, for the fair market value of livestock or agriculture lost or destroyed because
of CAR’s operations hereunder. CAR shall not intentionally disturb, directly or indirectly, any improvement, structure, fixture,
device, property, enclosure, equipment, or similar such item existing on the Surface Premises, including, by way of example only, fences,
corrals, water tanks, water wells, ponds, ditches, pipelines, power and telephone poles and lines, and buildings now upon or hereafter
placed or constructed upon any portion of the surface of the Surface Premises, until such time as CAR has either (i) made payment
to Legends of an amount equal to the cost of replacement of such disturbed improvement, or an amount equal to the difference in the fair
market value of the improvements of Legends prior to such improvement disturbance and the fair market value of the improvements of Legends
after such disturbance, whichever is greater; or (ii) constructed or furnished an alternative or substitute improvement capable of
performing the same function or functions as the original improvement, in a location approved by Legends (such approval not to be unreasonably
withheld or delayed), all to the reasonable satisfaction of Legends. In the event that appraisals are necessary to determine amounts payable
as above set forth, each of Legends and CAR shall select an appraiser who will together select a third appraiser who will independently
determine, without the input of the appraisers selected by Legends or CAR, the amounts payable as set forth above. The fees payable to
any such appraisers shall be split evenly between Legends and CAR.

 

    7

     

    

 

(c)            Method
of Payment. All payments CAR makes to Legends under this Section 4 shall be made by wire transfer pursuant to written
wire transfer instructions provided by Legends.

 

(d)            Untimely
Payments. Any payment that CAR is required to make under this Section 4 that is not timely made shall, in addition to
all other remedies as set forth in this Agreement and available under applicable law, bear interest at the Prime Rate plus two (2) percent.

 

5.            Conditions
Applicable to CAR’s Surface Use.

 

(a)            Conduct
of Operations. CAR shall not utilize the Surface Premises for any unlawful purposes, and agrees to conduct all of its operations on
the Surface Premises in a good and workmanlike manner and in compliance with all applicable Laws, including Environmental Laws, Laws regarding
reclamation and restoration of the Surface Premises, pollution control, groundwater protection, and all other applicable Laws. CAR shall
be obligated to modify its operating, reclamation, and restoration procedures from time to time to comply with statutes, ordinances, the
development of new regulations, or new interpretations of presently effective statutes, regulations, or ordinances applicable to CAR’s
operations on the Surface Premises. Upon request, CAR shall promptly furnish to Legends a copy of any requested permits, licenses, regulatory
approvals, rights-of-way, maps, or plans for reclamation and restoration of the Surface Premises, which CAR is required to file from time
to time with any applicable governmental agency. CAR agrees to use commercially reasonable efforts to keep all gates on the Surface Premises
open or closed as found. CAR agrees to limit access to the Surface Premises, including distribution of keys to any locks, to only those
employees, agents, lessees, contractors or subcontractors of CAR who are engaged in CAR’s activities at the Surface Premises, as
well as other third parties with whom CAR may enter into contracts for the conduct of Geophysical Testing, Drilling, or restoration or
reclamation activities at the Surface Premises. CAR further agrees to use reasonable efforts to limit vehicular traffic to the shortest
practicable routes and to utilize existing roads or previously utilized routes as often as is reasonably practicable in order to minimize
surface disturbance. CAR shall use good faith efforts to ensure that the speed of all vehicles shall be kept to a reasonable rate and
to ensure reasonable further precautions on the Surface Premises. CAR shall take such precautions as may be reasonable to avoid any damage,
other than normal wear and tear, to gates, bridges, roads, culverts, cattle guards, fences, dams, dikes or other stock watering facilities.
All damage in excess of ordinary wear and tear to the above-named facilities shall be reported to Legends within twenty-four (24) hours
of its being discovered and shall be repaired promptly at CAR’s sole expense, as nearly as reasonably practicable to the condition
existing prior to CAR’s operation. Any public hazard, such as a damaged bridge or culvert, caused by operations of CAR, shall be
properly marked or barricaded and proper steps shall be taken for the repair thereof.

 

    8

     

    

 

(b)            Permits.
CAR shall, at CAR’s sole expense, obtain all federal, state and local licenses, approvals, development agreements, certificates,
permits, and consents necessary and appropriate for its operations on the Surface Premises (collectively, together with all orders and
amendments pursuant to the same, the “Permits”), including Permits for Geophysical Testing, Drilling, energy
usage, air emissions and quality, surface water and groundwater monitoring and impacts (including those required under the Safe Drinking
Water Act, 42 U.S.C. §§ 300f, et seq., and the Clean Water Act National Pollution Discharge Elimination System,
 “NPDES”), wetland impacts and construction, installation of any improvements, and Legends shall have no responsibility
whatsoever in this regard. Legends, at no out-of-pocket cost to Legends, shall cooperate with CAR in its efforts to obtain the Permits,
and shall promptly sign any permit applications required to be signed by Legends, but no Permit shall impose any financial or other obligation
on Legends, or constitute a lien, burden, imposition or encumbrance on the Surface Premises or on or with respect to any other real property
owned or controlled by Legends, if and where applicable. Copies of all Permits, reports, studies and other documents related to CAR’s
operations on the Surface Premises shall be available at all reasonable times during the term of this Agreement for review and copying
by Legends (such copying to be at Legends’s expense). If CAR’s operations, or any portion of CAR’s operations, do not
require a Permit (for example, for surface disturbance less than five acres), CAR shall post an adequate reclamation bond payable to Legends
prior to any activity that would impact the Surface Premises in any way. The posting of such bond shall be made under the reasonable terms
and conditions specified by Legends, and shall, at a minimum, cover costs for the reclamation, restoration, and remediation of any impacts
to the Surface Premises caused by CAR’s operations or the operations of CAR’s authorized agents, contractors, employees, and
assigns. The release of any such private reclamation bond, and the release of any reclamation bond associated with any Permit, shall be
conditioned upon approval by Legends, which approval shall not be unreasonably withheld. CAR shall provide to Legends proof of adequate
bonding on or before the Trigger Date.

 

(c)            Aquifer
Protection. CAR acknowledges that there is a significant underground water aquifer underlying the Surface Premises. CAR shall, at
CAR’s sole expense, obtain all federal, state, and local Permits relating to protection of such aquifer and shall employ best industry
practices during CAR’s operations so that no pollution or other damage of any kind is caused to the aquifer.

 

(d)            Utilities.
CAR shall obtain and pay for water, sewer, gas, electricity, heat, power, telephone, and other communication services and any other utilities
supplied to the Surface Premises in connection with CAR’s operations on the Surface Premises. CAR shall obtain such service in its
own name and shall timely pay all charges directly to the provider. Legends shall not be responsible or liable for any interruption in
such services, nor shall such interruption relieve CAR from fulfilling its obligations under this Agreement.

 

    9

     

    

 

(e)            Ancillary
Operations. None of CAR’s employees, contractors, or agents (other than licensed security personnel in accordance with applicable
Laws) shall be permitted to carry firearms on the Surface Premises and none shall be permitted to hunt or fish there without the prior
written consent of Legends. CAR shall construct no roads, drillsites, or carry out other operations within 100 feet of any dwelling,
without the prior written consent of Legends (such consent not to be unreasonably withheld or delayed). CAR shall refrain from drilling
or blasting within 100 feet of any water well or dwelling without the prior written consent of Legends (such consent not to be unreasonably
withheld or delayed).

 

(f)             Liens.
CAR shall keep the Surface Premises free and clear of liens, charges, claims, encumbrances and demands (collectively, “Liens”)
arising from or in connection with CAR’s operations under this Agreement and shall promptly pay for all labor performed on the Surface
Premises and for all supplies, materials, and equipment used or placed on the Surface Premises. If any Lien for such labor performed or
such supplies, materials, or equipment used or placed on or supplied to the Surface Premises is filed against all or any portion of the
Surface Premises or Legends’s or CAR’s interest therein or any public improvement bond, other than Liens arising solely as
a result of Legends’s acts, then CAR shall cause the same to be discharged of record within ten (10) days after notice of such
filing, subject to the provisions of Section 5(f). CAR, at its sole expense, shall defend the Surface Premises and Legends
against all suits for the enforcement of any such Lien or any bond in lieu of such Lien, and CAR, subject to the provisions of Section 9(d),
hereby agrees to defend and indemnify Legends against any and all Claims and/or Losses arising from or related to any such Lien or suit.
Should CAR fail to so discharge any such Lien, Legends may do so by payment, bond, or otherwise on ten (10) days’ written notice
to CAR, and the amount paid or incurred therefor by Legends shall be reimbursed to Legends by CAR upon demand, with interest from the
date of demand at the Prime Rate plus two (2) percent.

 

(g)            Right
to Contest. CAR shall have the right to contest in good faith any such mechanic’s or other Lien claim filed against the Surface
Premises or any part thereof if CAR notifies Legends in writing of its intention to do so, diligently prosecutes any such contest, at
all times effectually stays or prevents any official or judicial sale of the Surface Premises under execution or otherwise, and pays or
otherwise satisfies any final judgment adjudicating or enforcing such contested mechanic’s or other lien and thereafter promptly
procures and records a satisfaction and release of same.

 

(h)            Subcontractors.
Except in relation to Legends’s own activities, nothing in this Agreement shall be deemed to constitute the consent or request of
Legends to any contractor, subcontractor, or material supplier for the performance of any labor or the furnishing of any supplies, materials,
or equipment for any specific improvement to the Surface Premises. Notice is given by this paragraph that Legends has assumed no obligation
on behalf of CAR and shall not be liable or responsible for or in connection with any labor or supplies, materials, or equipment hereafter
furnished to CAR, or to any other party, whether on credit, or otherwise, and that no mechanic’s or other lien for any such labor
or supplies, materials or equipment shall attach to or affect the Surface Premises or Legends’s interest and estate therein.

 

(i)             Notice
of Non-Responsibility. Legends may post on the Surface Premises and record in Pinal County a notice of non-responsibility with
respect to CAR’s activities under this Agreement.

 

    10

     

    

 

(j)             Insurance.

 

(i)            CAR
shall procure and keep in effect, at its expense during the term of this Agreement, insurance as described in subparagraphs (A) –
(E) below. The policy or policies procured by CAR shall provide minimum limits as follows:

 

(A)            Property
Insurance. Insurance against loss or damage to all structures, equipment, machinery, facilities, and other improvements CAR has placed
on the Surface Premises (“Personal Property”) with coverage for perils as set forth under the “Causes
of Loss-Special Form” or equivalent property insurance policy in an amount equal to the full insurable replacement cost of such
Personal Property. In the event of an insured loss, CAR shall be solely responsible for the amount of any deductible or co-insurance.

 

(B)            Commercial
General Liability Insurance. Occurrence-based commercial general liability insurance (“CGL”) covering claims
arising from operations under this Agreement, with minimum limits of $1 million combined single limit per occurrence and $5 million annual
aggregate including contractual liability (including liability under this Agreement), coverage for “Action Over” claims, premises/‌operations,
products/‌completed operations, and sudden and accidental seepage and pollution. CAR may use umbrella or excess policies to
achieve these limits of insurance, to be written on a “follow-on” form basis that provides coverage at least as broad as the
primary CGL policy. CAR shall maintain coverage in effect for at least one (1) year after the expiration or earlier termination of
this Agreement.

 

(C)            Business
Automobile Liability Insurance. Occurrence-based business automobile liability insurance with liability minimum limits of $1 million
combined single limit per accident/‌occurrence for bodily injury liability and property damage liability. Coverage shall apply to
all owned, hired, rented, and non-owned automobiles.

 

(D)            Workers’
Compensation Insurance. Workers’ compensation insurance in compliance with all statutory requirements of the State of Arizona.

 

(E)            Employer’s
Liability Insurance. Employer’s Liability Insurance with minimum limits of $1 million bodily injury by disease per
employee; $1 million bodily injury by disease aggregate; and $1 million each accident, and including a borrowed
servant/‌alternate employer endorsement.

 

(ii)            Upon
request from Legends, CAR shall supply Legends with current certificates of such insurance.

 

(iii)          CAR
shall require each of its contractors, consultants, sublessees, and licensees entering onto the Surface Premises to carry and maintain
insurances at its own expense in amounts deemed necessary to cover the risks inherent to the work or services to be performed by the contractor,
consultant, sublessee, or licensee. Every such insurance policy shall contain a waiver on the part of the insurance carrier of all rights,
by subrogation or otherwise, against Legends. Legends shall also be named as an additional insured in each policy, but only with respect
to Claims and/or Losses arising under this Agreement. Such insurance shall be primary over any insurance maintained by Legends, but only
with respect to Claims and/or Losses arising under this Agreement.

 

    11

     

    

 

(iv)          The
following applies to all insurance policies described in this Section 5(j): (a) all policies, through endorsement (including
self-insurance programs if applicable), must state that the policy is primary and any insurance maintained by Legends is excess and non-contributory
to the extent of the liabilities assumed by CAR herein (the certificates of insurance, endorsements or policy must reflect that this wording
is included in the required policies); (b) for all policies required, CAR shall provide prompt written notice to Legends that the
policy is canceled, materially changed, or non-renewed (and in the event CAR, without lapse in coverage, does not obtain a substitute
insurance policy providing coverage terms equivalent or superior to those required under this Agreement and promptly provide evidence
of the substitute policy to Legends, then CAR must immediately suspend all operations on the Surface Premises until such substitute coverage
is in place); (c) all policies shall be written by a reputable, nationally-recognized insurance company authorized to do business
in Arizona; (d) all policies shall include a waiver of subrogation in favor of CAR to the extent of the liabilities assumed by CAR
herein; and (e) limit requirements may be met through a combination of primary and umbrella or Excess policy limits. All deductible
amounts, premiums, franchise amounts or other charges due with respect to CAR’s required insurance hereunder shall be the sole obligation
of CAR. Maintaining such insurance shall not relieve CAR of any other obligation under this Agreement.

 

(v)           Following
the termination or expiration of this Agreement, with respect to any Claims related to the Surface Premises, which have been raised prior
to the date of such termination that would be covered by CAR’s insurance policies, the Parties agree that those policies shall continue
to apply to those Claims until such Claims are resolved.

 

(k)            Taxes
and Assessments. If any taxes and assessments are lawfully levied against the Subject Premises or otherwise, in connection with or
as a result of any structures, improvements, equipment, and other property constructed or installed and used by CAR in connection with
this Agreement, CAR shall pay such taxes or assessments before the same become delinquent. CAR shall also be responsible for the incremental
amounts of any increases in ad valorem taxes assessed against the Surface Premises based on CAR’s uses or planned uses thereof.
CAR, at its sole expense, shall have the right to contest the validity or amount of any such taxes or assessments and Legends shall cooperate
in all reasonable respects with CAR in connection therewith at no expense to Legends. Upon termination or expiration of this Agreement,
CAR shall pay its proportionate share of the taxes for which it is responsible under this Section 5(k) in the year in
which such termination or expiration occurs, including for any period it retains possession of the Surface Premises during which there
is a dispute between the Parties as contemplated by Section 12(d).

 

(l)             CAR
shall be solely responsible for construction and maintenance of fences to keep livestock or other intruders away from CAR’s equipment
and facilities.

 

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6.            Legends’s
Surface Operations.

 

(a)            Legends’s
Use of Surface Premises. It is understood that this Agreement is limited specifically to the uses and purposes set forth in Section 2,
and Legends and its lessees, licensees, successors, and assigns shall have the right to use the Surface Premises for any purpose not inconsistent
with the rights herein granted to CAR, however, that such use by Legends and its lessees, licensees, successors, and assigns shall not
unreasonably interfere with or restrict the current or anticipated operations and business of CAR pursuant to this Agreement on, in, under,
or above the Surface Premises, or pursuant to the Mineral Lease. CAR’s rights to use the Surface Premises under this Agreement are
expressly subject to Legends’s right to use and occupy, and permit others to use and occupy, the Surface Premises, or any part thereof,
for ranching and grazing livestock, and other purposes, together with all rights reasonably necessary to accomplish those purposes, so
long as such use and occupancy by Legends or others does not unreasonably interfere with or restrict the current or anticipated operations
and business of CAR pursuant to this Agreement on, in, under, or above the Surface Premises, or pursuant to the Mineral Lease.

 

7.            Reclamation.
After CAR’s operations have been completed on the Surface Premises, CAR shall reclaim those portions of the Surface Premises disturbed
by its operations in accordance with applicable Laws, Permits, and this Agreement. CAR’s obligations under this Section 7
shall survive termination of this Agreement, until the proper governmental authorities certify and release CAR from all such obligations.
Nothing herein, including termination of the Agreement, shall relieve CAR from the requirement to make Surface Use Payments, as applicable,
until reclamation activities are complete in accordance with applicable Laws, Permits, and this Agreement to the reasonable satisfaction
of Legends.

 

8.            Environmental
Conditions.

 

(a)            Conditions.
Legends has no Knowledge:

 

(i)            That
Hazardous Material from any source (mining or otherwise, other than naturally occurring materials) has been released on or within the
Surface Premises in a quantity that would reasonably be expected to result in a violation of Environmental Law; or

 

(ii)           That
the Surface Premises or any part thereof are in violation of any Environmental Law; or

 

(iii)          That
any part of the Surface Premises has been studied or proposed for study by the U.S. Environmental Protection Agency and/or any state environmental
regulatory agency; or

 

(iv)          That
any reclamation obligations for prior operations on the Surface Premises are unsatisfied.

 

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(b)            Limitations
on Environmental Representations and Warranties.  Other than as set forth in Section 8(a), Legends makes no
representation or warranty as to the environmental or other condition of the Surface Premises. CAR has independently performed all inspections,
reviews, investigations, and audits as it deems necessary, appropriate, and consistent with good commercial practice, and is fully aware
of and accepts the environmental and other condition of the Surface Premises, including all utilities and improvements located on, above
or beneath the Surface Premises. CAR acknowledges and agrees that Legends is leasing the Surface Premises to CAR in its “AS IS,
WHERE-IS, WITH ALL FAULTS” condition. Nothing contained herein nor any information furnished by Legends to CAR shall be construed
as a warranty as to the environmental or any other condition of the Surface Premises.

 

(c)            Disposal
of Hazardous Material. CAR shall make such provisions for the disposal of solution, waste, refuse, Hazardous Material, drilling byproducts,
and similar materials from and beneath the Surface Premises so that the same shall not be a nuisance to or injure any persons, the Surface
Premises (except as expressly allowed herein), or the lands of others, nor obstruct any stream, right-of-way, or other means of transportation
or travel on the Surface Premises (except as expressly allowed herein) or the lands of others, and, subject to Section 9(d),
CAR shall defend, indemnify, and hold harmless Legends from and against any and all Claims resulting from the disposal of such solution,
waste, refuse, Hazardous Material, drilling byproducts, and similar materials.

 

(d)            Presence
of Hazardous Material. Except as otherwise provided herein, CAR shall not cause or permit any Hazardous Material to be brought upon,
generated, treated, leaked, emitted, discharged, disposed, stored or otherwise kept or used in, on, or about the Surface Premises by CAR,
its contractors, subcontractors, licensees, invitees, sub-lessees and Related Parties, if any. The prohibition in the foregoing sentence
shall not apply to any of the foregoing actions allowed under Permits issued to CAR, and/or allowed by Law, and deemed by CAR to be necessary
or useful in CAR’s operations on the Surface Premises, but only during the term of this Agreement.

 

(e)            Compliance
with Environmental Laws. CAR hereby agrees to comply with all Environmental Laws and Permits governing the use, storage, generation,
treatment, transportation, release, disposal, or handling of any Hazardous Material on the Surface Premises, if any, including all reporting
and monitoring requirements therein. CAR shall promptly provide to Legends copies of any communications (including electronic communications)
CAR receives from any governmental agency asserting the breach by CAR of any Environmental Laws, and any communications (including electronic
communications) from CAR responding to such assertions or agreeing to address any issue raised by that governmental agency in such communications.

 

(f)             Installation
Activities. In connection with the installation of any improvements on the Surface Premises, upon Legends’s request, CAR shall
provide to Legends all documents evidencing CAR’s compliance with an NPDES and/or State Disposal System Stormwater Permit for Construction
Activity requirements, including the Stormwater Pollution Prevention Plan (SWPPP) and associated maintenance records at a pre-installation
meeting and during the course of installation.

 

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(g)            Indemnity
for Hazardous Material and Environmental Laws. CAR shall, subject to the provisions of Section 9(d), defend, indemnify
and hold harmless Legends and Related Parties to Legends, and its and their respective officers, agents, and employees, from and against
any and all Claims, arising out of or related to (a) the presence, disposal, release or threatened release of any Hazardous Material
brought onto or kept on the Surface Premises by CAR in, on, under or from the Surface Premises or the soil, water, groundwater, subsurface
strata, biota, buildings or personal property thereon; (b) any bodily injury (including wrongful death) or property damage (real
or personal) arising out of or relating in any way to CAR, or CAR’s contractors, subcontractors, licensees, invitees, sub-lessees,
and Related Parties, if any, and their use, treatment, storage, disposal, handling, generation, manufacturing, transportation or shipment
of Hazardous Material; (c) any lawsuit brought or threatened, or any settlement reached by CAR, its contractors, subcontractors,
licensees, invitees, sub-lessees, and Related Parties, if any, or any government order arising out of or relating in any way to their
use, treatment, storage, disposal, handling, generation, manufacturing, transportation or shipment of Hazardous Material; or (d) any
violation by CAR or its contractors, subcontractors, licensees, invitees, sub-lessees and any CAR Related Party, of any Environmental
Laws. THE PROVISIONS OF THIS SECTION 8 SHALL BE IN ADDITION TO ANY OTHER OBLIGATIONS AND LIABILITIES CAR MAY HAVE
TO LEGENDS AT LAW OR IN EQUITY AND SHALL SURVIVE THE TRANSACTIONS CONTEMPLATED HEREIN AND SHALL SURVIVE THE TERMINATION OR EXPIRATION
OF THIS AGREEMENT.

 

(h)            Preexisting
Conditions. Notwithstanding any other provision of this Agreement, CAR shall not be responsible for and shall have no obligations
with respect to any prior operations or preexisting environmental conditions on the Surface Premises. All reclamation bonds of any kind
provided by CAR shall revert to CAR upon release of the same by the applicable regulatory agency.

 

9.            Indemnity.

 

(a)            Activities
of CAR. CAR assumes all risk of loss of or damage to the surface of, and buildings or contents on the Surface Premises, and of or
to other property brought thereon by CAR, and of or to property in proximity to the Surface Premises when connected with or incidental
to the occupation thereof, and any incidental loss or injury to the business of CAR.

 

(b)            Indemnity.
Notwithstanding anything to the contrary in the other provisions of this Agreement (but still subject to the provisions of Section 9(d)),
CAR agrees to defend, release, indemnify, and hold Legends and Related Parties to Legends, and its and their respective officers, agents,
and employees harmless from and against any and all Claims and/or Losses, including damages associated with unauthorized surface subsidence,
failure of lateral support or other claims related to surface damages along with reclamation requirements pertaining to the surface to
the extent required by Law and/or agreements with surface owners in addition to any claims, demands, and causes of action to which any
insurer may be subrogated, to the extent arising from or related to (i) CAR’s operations conducted under this Agreement, (ii) the
condition of the Surface Premises from and after the Effective Date (except any condition caused by or resulting from any operations or
activity of Legends on or affecting the Surface Premises), or (iii) failure of CAR, its contractors, subcontractors, licensees, invitees,
sub-CARs, assignees, and Related Parties of CAR, if any, to perform any obligation or covenant contained in this Agreement, except to
the extent that such Losses are the result of gross negligence or willful misconduct of Legends or of any Related Party, officer, agent,
or employee of Legends or other third party authorized solely by Legends or a related party of Legends. THE PROVISIONS OF THIS SECTION 9
SHALL BE IN ADDITION TO ANY OTHER OBLIGATIONS AND LIABILITIES CAR MAY HAVE TO LEGENDS AT LAW OR IN EQUITY AND SHALL SURVIVE THE TRANSACTIONS
CONTEMPLATED HEREIN AND SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS AGREEMENT.

 

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(c)            Procedure.
Either Party, within thirty (30) days after the service of process upon it in a lawsuit, including any notices of any court action or
administrative action (or any other type of action or proceeding), or promptly after it, to its knowledge, shall become subject to, or
possess actual knowledge of, any Losses and/or Claims to which any of the indemnification provisions set forth in this Agreement relate,
shall give written notice to the other Party (for purposes of this Section 9(c) the “Indemnifying Party”)
setting forth the facts relating to the Losses and/or Claims, if available, and the estimated amount of the same, provided that the failure
to promptly notify the Indemnifying Party shall not operate to waive, reduce, or extinguish the rights of the Party or any Related Party
(collectively, for purposes of this Section 9(c), the “Indemnified Party”) hereunder unless such
failure materially prejudices the Indemnifying Party. Upon receipt of such notice relating to a lawsuit, the Indemnified Party shall be
entitled to (i) participate at its own expense in the defense or investigation of any claim or lawsuit or (ii) assume the defense
thereof, in which event the Indemnifying Party shall not be liable to the Indemnified Party for legal or attorney fees thereafter incurred
by such Indemnified Party in defense of such action or claim; provided, that if the Indemnified Party may have any unindemnified liability
out of such claim, it shall have the right to approve the counsel selected by the Indemnifying Party, which approval shall not be unreasonably
withheld or delayed. If the Indemnified Party does not participate at its own expense in the defense or investigation of the claim or
lawsuit or assume the defense thereof, the Indemnifying Party shall assume the defense thereof, all costs of defense of such claim or
lawsuit shall thereafter be borne by the Indemnifying Party, and the Indemnifying Party shall have the authority to compromise and settle
such claim or lawsuit, or to appeal any adverse judgment or ruling with the cost of such appeal to be paid by the Indemnifying Party;
provided, however, if the Indemnified Party may have any unindemnified liability arising out of such claim or lawsuit the Indemnifying
Party shall have the authority to compromise and settle each such claim or lawsuit only with the written consent of the Indemnified Party,
which shall not be unreasonably withheld or delayed. The Indemnified Party may continue to participate in any litigation at its expense
after the Indemnifying Party assumes the defense of such action. In the event the Indemnifying Party does not elect to assume the defense
of a claim or lawsuit, the Indemnified Party shall have authority to compromise and settle such claim or lawsuit, or to appeal any adverse
judgment or ruling, with all costs, fees, and expenses indemnifiable under this Agreement to be paid by the Indemnifying Party. Upon the
Indemnified Party’s furnishing to the Indemnifying Party an estimate of any Losses to which the indemnification provisions of this
Agreement relate, the Indemnifying Party shall pay the amount of such estimate to the Indemnified Party within thirty (30) days of receipt
of such estimate, unless the Indemnifying Party in good faith disputes its liability with respect to any such claim in writing. Upon the
Indemnifying Party’s failure to make payment within thirty (30) days, or provide the Indemnified Party with notice of a good faith
dispute in writing, interest shall accrue on the amount of such estimate at the Prime Rate plus two (2) percent.

 

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(d)            Limitations. Notwithstanding
any provision in this Agreement to the contrary, this Agreement does not authorize one Party to sue for or collect from the other
Party its own or its Related Parties’ special, indirect, or consequential losses or damages, or damages for lost profits, loss
of revenue, loss of savings, loss or deferment of production, loss of use, loss of contract, or business interruption (collectively,
 “Consequential Damages”), and each Party hereby waives on behalf of itself and its Related Parties any and
all Claims it may have against the other Party for Consequential Damages, WITHOUT REGARD TO THE CAUSE OR CAUSES OF ANY
CLAIM, INCLUDING CLAIMS CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT, CONCURRENT, COMPARATIVE,
CONTRIBUTORY, ACTIVE, PASSIVE, GROSS OR OTHERWISE), STRICT LIABILITY, OR OTHER FAULT, OF EITHER PARTY OR RELATED PARTY, AND/OR
INVITEES OR THIRD PARTIES AND WHETHER OR NOT CAUSED BY A PRE-EXISTING CONDITION.

 

10.            Notice
of Litigation. CAR shall promptly notify Legends in writing of the institution of any litigation
to which CAR is a party involving the rights granted by this Agreement, and in the event the title of Legends or any of its Related Parties
to the Surface Premises is a subject matter of such litigation, then Legends may, at its option, and at its expense, intervene in such
litigation to the extent of its title interest. Similarly, Legends shall notify CAR in writing of the institution of any litigation to
which Legends or any Related Party of Legends is a party involving the title of Legends or such Related Party to the Surface Premises,
and CAR may, at its option, intervene in such litigation to the extent of its interest.

 

11.            Default.
In addition to any other rights either Party may have, upon the failure of Legends or CAR to (a) make or cause to be made any payment
herein provided for, or (b) to keep or perform any other covenant or obligation on its part to be kept and performed according to
the terms and provisions hereof, the other Party at its election may, (i) if such default relates to a payment or amount due that
is not being disputed in good faith, impose interest on only the amount in default at the Prime Rate, plus two percent (2.0%), and/or
(ii) terminate this Agreement; provided, however, that the terminating Party shall give to the defaulting Party twenty-one (21) days’
advance written notice of its intention to so terminate, specifying in particular the default or defaults asserted. With respect to any
default other than failure to make any required payment hereunder, the defaulting Party shall have such twenty-one (21) days after receipt
of such notice in which to cure or commence the cure of such default or defaults that do not relate to a payment or amount due that is
being disputed in good faith, and if such default or defaults are in due course fully cured, then the Agreement shall not be terminated.
With respect to a failure to make any required payment under this Agreement, the defaulting Party shall have ten (10) days to cure
such a default; provided, however, that if interest has been imposed during such cure period, the defaulting Party must pay such interest
in order to fully cure the default. No waiver of and no failure or neglect on the part of either Party to take action with respect to
a default shall affect any subsequent default or impair such Party’s rights resulting therefrom. In the event either Party disputes
in writing the existence of an alleged default, this Agreement shall not be terminated until such dispute has been resolved by the Parties
or, in the event of litigation, until such litigation results in an un-appealable final order confirming the alleged default, and in that
event the defaulting Party shall have a reasonable amount of time thereafter in which to cure the judicially confirmed default. Legends
shall have no right to terminate this Agreement except as expressly provided in this Section 11.

 

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12.            Termination
and Expiration.

 

(a)            This
Agreement shall terminate or expire automatically, without further action by CAR or Legends, upon the earliest of the following, subject
to the provisions of this Section 12: (i) the failure of CAR to timely make any of the Surface Use Payments described
in Section 4 of this Agreement; (ii) 36 months following the Trigger Date, if CAR has not timely paid the Fourth Year
Payment; or (iii) 48 months following the Trigger Date, if CAR has timely paid the Fourth Year Payment. This Agreement shall not
endure beyond 48 months following the Trigger Date.

 

(b)            Termination
by Legends. Should CAR be in default of any of its respective obligations under this Agreement, determined as provided in Section 11
hereof, then Legends may, at its election, terminate this Agreement in accordance with the provisions of Section 11.

 

(c)            Termination
by CAR. CAR shall have the right to terminate this Agreement in whole or in part at any time by giving Legends thirty (30) days’
prior written notice of its intention to terminate. At the end of such thirty (30)-day period this Agreement shall terminate as to the
Surface Premises identified in such notice. Notwithstanding any other provisions in this Agreement, no termination shall be effective
until final reclamation activities are complete, in accordance with Section 7.

 

(d)            Surrender
of Possession and Renewal of Property.

 

(i)            Upon
termination or expiration of this Agreement for any cause, CAR shall promptly quit and surrender possession of the Surface Premises without
delay or hindrance, subject to the provisions of Section 12(d)(ii) hereof, and subject to CAR’s obligation to complete
all required reclamation as required by applicable Law, and Legends shall have the right immediately upon such termination to enter upon
the Surface Premises and to take immediate possession thereof without declaration of forfeiture, act of re-entry, or process of law; provided,
however, that, if the right to terminate this Agreement is in dispute, then without prejudicing any rights Legends may have, CAR, at its
option, may continue in possession of the Surface Premises for the purposes of this Agreement until such dispute has been resolved by
the Parties or, in the event of litigation, until such litigation results in an un-appealable final order requiring termination of this
Agreement. Notwithstanding the foregoing, upon termination of this Agreement CAR shall have a continuing right to enter upon the Surface
Premises to complete required reclamation in accordance with all applicable Environmental Laws and Permits until such reclamation is fully
completed.

 

(ii)            Upon
termination of this Agreement and for a reasonable period of time thereafter, CAR shall have the right to remove from the Surface Premises
all improvements, structures, equipment, machinery, facilities, and other property which CAR has placed or caused to be placed thereon.
Any such property not timely removed from the Surface Premises shall, at Legends’s option, become the property of Legends, or else
Legends may remove the same from the Surface Premises to a storage area of Legends’s choosing, and all removal and storage costs
incurred by Legends shall be reimbursed to Legends by CAR upon demand, with interest from the date of demand at the Prime Rate plus two
(2) percent.

 

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(e)            Upon
termination of this Agreement, all right, title and interest of CAR under this Agreement shall terminate with respect to the Surface Premises
affected. CAR shall be relieved of all further obligations set forth in this Agreement as to the Surface Premises affected except (i) those
obligations, if any, that have accrued prior to such termination and remain unsatisfied, and (ii) those obligations that expressly
survive the termination of this Agreement. Any taxes, assessments, and governmental charges for which CAR was responsible prior to termination
shall remain the obligation of CAR and shall not be prorated as of the termination date. Upon any termination of the Agreement, CAR shall
evidence such termination by recordable document, surrender possession of all workings in, on, or under the Surface Premises affected,
subject to its right to remove its Personal Property. CAR shall pay all bills or other obligations incurred by it in connection therewith
and all other payments due to Legends hereunder up to the date of such termination. Upon such termination no further obligations shall
accrue to Legends or CAR hereunder; however, CAR shall continue to be liable for any obligation or liabilities hereunder accrued and unpaid
or unsatisfied or performance for restoration and reclamation on the date this Agreement is terminated, whether the same are due to Legends,
governmental agencies, or other third parties.

 

13.            Sale,
Transfer or Assignment.

 

(a)            CAR
shall have the right to assign its rights and delegate its obligations under this Agreement, in whole or in part, to any third party (but
not to sublease all or portions of the Surface Premises) at any time during the term hereof, upon receiving the prior written consent
of Legends, such consent not to be unreasonably conditioned, withheld, or delayed; provided, however, any such assignment shall be expressly
made subject to, and the assignee shall expressly agree in writing to be bound by, all of the terms, conditions, and covenants of this
Agreement. For avoidance of doubt, Legends’s consent to a proposed assignment shall not be deemed to be unreasonably withheld if
the proposed assignee is unable to satisfy any of the terms or conditions set forth in this Agreement, in other agreements to which Legends
is or may be a party, or in any Laws, as may be amended from time to time, applicable to the then-existing and planned activities on the
Surface Premises. No consent shall be required for an assignment or sublease by CAR of its interest in this Agreement to a Related Party
of CAR, provided that (i) CAR and the assignee shall remain jointly and severally liable for all of the obligations of CAR and such
assignees under this Agreement, and (ii) such assignee shall remain a Related Party of CAR. If a controlling interest in that Related
Party assignee is subsequently conveyed to a third party that is not a Related Party of CAR, Legends’s consent to such assignment
in accordance with the provisions of this Section 13(a) shall be required.

 

(b)            Any
conveyance by Legends of any interest in the Surface Premises shall be subject to this Agreement and shall be binding upon CAR provided
the assignee or transferee agrees in writing to be bound by and comply with all of the terms and conditions of this Agreement.

 

(c)            Subject
to the provisions of Section 13(a), nothing in this Agreement shall restrict CAR from pledging, mortgaging, or otherwise encumbering
its leasehold rights hereunder for financing purposes.

 

(d)            Any
transfer or assignment of this Agreement by CAR not authorized by this Section 13, whether voluntary, by operation of law
or otherwise, without the consent in writing required by this Section shall be absolutely void and shall constitute an event of default
by CAR under Section 11.

 

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(e)            In
the event that Legends desires to sell, transfer, or encumber the Surface Premises or any part thereof, Legends shall notify in writing
the prospective purchaser, transferee, or mortgagee of the existence of this Agreement, sending a copy of such notice to CAR. Any sale,
transfer or encumbrance of the Surface Premises by Legends shall be made subject to this Agreement.

 

14.            Corporate
Authority.

 

(a)            As
of the Effective Date, each Party represents and warrants to the other as follows:

 

(i)            it
is a corporation duly incorporated and in good standing in its state of incorporation, and is qualified to do business and is in good
standing in those states where necessary in order to carry out the purposes of this Agreement, including the State of Arizona;

 

(ii)            it
has the capacity to enter into and perform this Agreement and all transactions contemplated herein and that all corporate and other actions
required to authorize it to enter into and perform this Agreement have been properly taken;

 

(iii)           it
will not breach any other agreement or arrangement by entering into or performing this Agreement; and

 

(iv)          this
Agreement has been duly executed and delivered by it and is valid and binding upon it in accordance with its terms; provided, however,
that no representation is made as to (i) the remedy of specific performance or other equitable remedies for the enforcement of this
Agreement or any other agreement contemplated hereby or (ii) rights to indemnity under this Agreement for securities law liability.
Additionally, this representation is limited by applicable bankruptcy, insolvency, moratorium, and other similar laws affecting generally
the rights and remedies of creditors and secured parties.

 

(b)            The
Parties further acknowledge and agree they have read this Agreement and have had the opportunity to consult with counsel of their choosing,
that they are fully cognizant of the terms and conditions and legal effect of this Agreement, and upon signing this Agreement they are
not relying upon any representation other than the terms stated herein.

 

15.            Mutual
Cooperation. Legends shall execute all documents and otherwise cooperate with CAR as reasonably
needed in connection with the conduct of CAR’s operations on the Surface Premises, as the case may be, including the acquisition
of Permits, reclamation approvals, water rights, and other rights and privileges related to operations on or near the Surface Premises
and reclamation thereof. Legends shall not protest, challenge or otherwise oppose, directly or indirectly, any water right or Permit filings
that CAR may make to facilitate operations or proposed operations on or in connection with the Surface Premises, so long as the operations
or actions are consistent with the terms of this Agreement, the terms of any other agreement to which Legends is or may be a party, and
any Laws, as may be amended from time to time.

 

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16.            Notices.
Any notice required or authorized to be given under this Agreement shall be deemed sufficiently given if in writing and shall be effective
when personally delivered to the Party to whom addressed or sent by registered or certified mail, postage prepaid, or by reputable overnight
courier, billed to the sender, addressed to such Party as follows:

 

		CAR:	Central Arizona Resources Mining Associates LLC

151 East Broadway, Suite 1600
	 	 	Tucson, AZ 85711
	 	 	Attn: Andy Russell
	 	 	Email: ajrussell@russellmining.com

 

		Legends:	Legends Property, LLC

c/o The Wolff Company

6710 E. Camelback Rd.

Scottsdale, AZ 85251

Attention: Tim Wolff
	 	 	Email: twolff@awolff.com

 

with a copy to:

 

Legends Property, LLC

c/o The Wolff Company

6710 E. Camelback Rd.

Scottsdale, AZ 85251

Attention: Chief Transaction Counsel

Email: jhafen@awolff.com; legal@awolff.com

 

or to such other address or addresses as either
Party may from time to time designate by such notice.

 

17.            Relationship
of Parties. Nothing contained herein shall be deemed to constitute either Party, in its capacity
as such, the partner, agent, or legal representative of the other Party, or to create any joint venture, partnership, mining partnership,
or other partnership relationship, or fiduciary relationship between them, for any purpose whatsoever. Each Party shall have the free,
unrestricted and independent right to engage in and receive the full benefits of any and all business endeavors of any sort whatsoever
outside the Surface Premises or outside the scope of this Agreement, whether or not competitive with the endeavors contemplated herein,
without consulting the other or inviting or allowing the other therein.

 

18.            No
Waiver Implied. Either Party’s waiver of any breach, or failure to enforce the terms,
conditions, or covenants of this Agreement, at any time, shall not in any way affect, limit or waive such Party’s right thereafter
to enforce and compel strict compliance with every term, condition, and covenant hereof.

 

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19.            Binding
Effect. Subject to the provisions of Section 13 above, this Agreement shall inure
to the benefit of and be binding upon the Parties and their respective successors and assigns.

 

20.            Memorandum
of Agreement for Recording. Upon execution of this Agreement, the Parties shall also execute
a memorandum of this Agreement substantively in the form attached hereto as Exhibit B for public notice purposes, which memorandum
shall be recorded by CAR with the Pinal County Recorder’s Office within thirty (30) days after full execution of this Agreement.
CAR shall provide a copy of the recorded memorandum to Legends within ten (10) days of recording. This Agreement shall not be recorded
by either Party. The execution and recording of the memorandum shall not limit, increase or in any manner affect any of the terms of this
Agreement, or any rights, interests or obligations of the Parties.

 

21.            Entire
Agreement. This Agreement, including all Exhibits hereto, contains the entire agreement and
understanding between the Parties with respect to the matters covered hereby and no representation, correspondence, or other statements
made by any Party prior to the Effective Date shall form a part of this Agreement. Any representations, correspondence, or other statements
made by any Party prior to the Effective Date, relating to the matters covered hereby, shall be superseded by the terms of this Agreement
including all Exhibits. Except for obligations of good faith and fair dealing, there are no terms or conditions, express or implied, other
than herein stated. No modification, alteration, or amendment of this Agreement shall be effective unless in writing and signed by the
Party against whom the modification, alteration, or amendment is asserted or sought to be enforced.

 

22.            Construction.
This Agreement shall be construed as though both Parties jointly drafted it. The Section headings contained in this Agreement are
inserted for convenience of reference only and shall be disregarded in construing and enforcing this Agreement. This Agreement shall be
construed, interpreted and governed by the laws of the State of Arizona without regard for choice of laws or conflict of laws principles
that would require or permit the application of the laws of any other jurisdiction.

 

23.            Rule against
Perpetuities. The Parties do not intend or desire for this Agreement to violate the common
law Rule against Perpetuities or any analogous statutory provision or any other statutory or common law rule imposing time limits
on the vesting or termination of estates in land. If any provision of this Agreement does or would violate the Rule against Perpetuities
or any analogous statutory provision or any other statutory or common law rule imposing time limits on the vesting or termination
of estates in land, then this Agreement shall not be deemed void or voidable, but shall be interpreted in such a way as to maintain and
carry out the Parties’ objectives to the fullest extent possible by law.

 

24.            Disputes
Not to Interrupt Operations. Disputes or differences between the Parties shall not interrupt
performance of this Agreement or the continuation of operations hereunder; provided, however, that the provisions of this Section 24
shall not prohibit either Party from seeking a preliminary injunction or temporary restraining order with respect to any asserted breach
of the terms and provisions of this Agreement by the other Party. In the event of any dispute or difference, operations may be continued
and payments may be made hereunder in the same manner as prior to such dispute or difference. In case of suit, adverse claim, dispute,
or question brought or asserted by any third party as to the ownership of the Surface Premises or entitlement to payments, or of any interest
therein or hereunder, CAR may, in its sole discretion, deposit the payment (or the portion of the payment in dispute, if less than the
whole payment is in dispute) into an escrow account and CAR shall not be held in default in payment thereof until such suit, claim, dispute
or question has been finally resolved.

 

    22

     

    

 

25.            Dispute
Resolution. The Parties hereby agree that any dispute arising under this Agreement shall
be subject to the informal dispute resolution procedure set forth in this Section 25. The Party asserting the existence of
a dispute as to the interpretation of any provision of this Agreement or the performance by the other Party of any of its obligations
hereunder shall notify the other Party of the nature of the asserted dispute. Within seven (7) business days after receipt of such
notice, a designated representative of Legends and a designated representative of CAR shall arrange for a personal or telephone conference
in which they use good faith efforts to resolve such dispute. If those individuals are unable to resolve the dispute, they shall each
prepare and, within seven (7) business days after their conference, circulate to the designated representative of Legends and the
designated representative of CAR a memorandum outlining in reasonable detail the nature of the dispute. Within five (5) business
days after receipt of the memoranda, the individuals to whom the memoranda were addressed shall arrange for a personal or telephone conference
in which they attempt to resolve such dispute. If those individuals are unable to resolve the dispute, either Party may proceed with any
legal or equitable remedy available to it; provided, however, that the Parties agree that any statement made as to the subject matter
of the dispute in any of the conferences or memoranda referred to in this Section 25 shall not be used in any legal proceeding
against the Party that made such statement. None of the provisions of this Section 25 shall prohibit either Party from seeking
a preliminary injunction or temporary restraining order with respect to any asserted breach of the terms and provisions of this Agreement
by the other Party.

 

26.            Interpretation.
As used in this Agreement, (a) the masculine (or neuter) pronoun and the singular number shall include the masculine, feminine and
neuter genders and the singular and plural number; (b) references to Sections refer to and Sections, respectively, of this Agreement;
(c) the words “include,” “including” and the like mean “including without limitation” and, when
followed by any specific item(s), are deemed to refer to examples rather than to be words of limitation; (d) the word “person”
includes a natural person, a partnership, a corporation, a limited liability company, an association and any other form of business association
or entity; (e) a reference to a document or agreement includes that document or agreement, together with all schedules, exhibits
and annexes attached thereto, as the same may be supplemented, amended, assigned, or novated; (f) any reference to any law, statute,
rule, code or regulation or to any specified provision of any law, statute, rule, code or regulation is a reference to such law, statute,
rule, code or regulation as amended, substituted, or re-enacted or any successor thereto; and (g) the words “herein”
or “hereunder” refer to the entire Agreement, not just the section or subsection of the Agreement in which they are used.

 

27.            Survival.
The provisions of Sections 2(b), 3(b), 4(d), 5(b), 5(f), 5(g), 5(j)(v), 5(k), 7, 8, 9, 11, 12(c), 12(d), 12(e), 27, and 29 shall survive
the termination of this Agreement; provided, however, that the provisions of Sections 5(g) and 8 shall survive the termination of
this Agreement only for a period of two (2) years.

 

    23

     

    

 

28.            Time
is of the Essence. Notwithstanding anything to the contrary stated herein, time is of the
essence of all matters in this Agreement.

 

29.            Inspection
Rights.

 

(a)            Rights.
Legends shall have the right, through its duly authorized representatives, with reasonable advance written notice to CAR, to enter upon
the surface of the Surface Premises and CAR’s workings thereon from time to time to inspect CAR’s operations at the Surface
Premises. Such entry and inspection shall be at Legends’s risk and expense, and its representatives shall observe all standard rules covering
safety and other procedures promulgated by CAR while they are on the Surface Premises.

 

(b)            Indemnity.
Subject to the provisions of Section 9(d), Legends, on behalf of itself and its agents, shall protect, defend, indemnify and
hold harmless CAR and its Related Parties, officers, agents and employees from and against any and all Claims and/or Losses, arising from
or related to the actions of Legends and its agents in conducting the audit and inspection rights allowed under this Agreement, except
to the extent such Claims arise out of the gross negligence or willful misconduct of CAR.

 

(c)            Reports.
CAR shall provide regular written progress reports regarding its activities on the Surface Premises. Such reports shall be provided on
a monthly basis, and shall include all regulatory, communications, and operational matters such as permitting, locations of actual drill
holes, hole-by-hole drill operations reports which include dates of commencement and completion, grouting, remediation of drill pads,
and any other information that would be pertinent or relevant to Legends pertaining to this Agreement. For the avoidance of doubt CAR
would not provide reports or data regarding mineralization or economic feasibility unless Legends and CAR enter into a separate agreement
providing for an interest by Legends in the mining project.

 

30.            Legends
Sale of Surface Premises. If Legends desires to sell any of the Surface Premises during the
term of this Agreement, it shall notify CAR of such desire and give CAR a reasonable amount of time to submit a bid on the purchase of
such portion of the Surface Premises, although Legends shall have no obligation to accept any such bid.

 

31.            Execution.
This Agreement may be executed in multiple counterparts, which taken together shall constitute one and the same document, but no Party
shall be bound to this Agreement unless and until both Parties have executed a counterpart or the original of this Agreement. This Agreement
may be executed and delivered by PDF transmission, and in such event shall be deemed the equivalent of a document with original signatures.

 

    24

     

    

 

IN WITNESS WHEREOF, the Parties hereby have duly
executed and delivered this Agreement effective as of the Effective Date.

 

		Legends Property,
                                              LLc, a Delaware limited liability company
	 	 
	 	By:	/s/ Tim Wolff
	 	Name:	Tim Wolff
	 	Title:	 
	 	 
	 	CENTRAL ARIZONA RESOURCES MINING ASSOCIATES, LLC, a Nevada
limited liability company
	 	 
	 	By:	/s/ Andy Russell
	 	Name:	Andy Russell
	 	Title: 	Manager

 

    25

     

    

 

EXHIBIT A-1

TO SURFACE USE AGREEMENT

 

THE SURFACE PREMISES

 

This exhibit has been omitted pursuant to
Item 601(a)(5) of Regulation S-K because the information contained herein is not material and is not otherwise publicly disclosed. The
registrant undertakes to furnish supplementally a copy of this schedule to the Securities and Exchange Commission upon request.

 

     

     

    

 

EXHIBIT A-2

TO SURFACE USE AGREEMENT

 

     

     

    

 

 EXHIBIT B

TO SURFACE USE AGREEMENT

 

MEMORANDUM OF SURFACE USE AGREEMENT

 

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