Common use of Work Commitment Clause in Contracts

Work Commitment. As a condition to the continued effectiveness of this Agreement, Lessee must expend during the term of this Agreement on or for the exploration and development of the Property the sums described below. The work commitment expenditures may consist of expenses incurred as follows: geochemical, geological and geophysical surveys and sampling of the Property, salaries and wages spent directly on field related expense on the project , travel and lodging expenses, consultants' and contractors' fees, drilling, sample and assay costs, location, amendment and relocation of unpatented mining claims, and all other expenses reasonably incurred by Lessee to explore and develop the Property. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. Lessee shall deliver annually within 30 days of the effective anniversary date documentary evidence sufficient to prove the work commitment expenditures. The work commitment expenditures are as follows: Lease Year Amount First Lease Year $10,000.00 Second Lease Year $25,000.00 Third Lease Year $50,000.00 Fourth Lease Year $100,000.00 Fifth Lease Year and thereafter $250,000.00 All work expenditures made by Lessee during any Lease Year in excess of the work commitment expenditures required for such Lease Year shall be credited, as far as they will go, against work commitment requirements for any subsequent Lease Year. For any work commitment expenditure not fulfilled with the above work commitment time frames, the difference between the actual expenditure and the minimum work commitment expenditures shall be paid to Owner at a rate of 75% of the remaining expenditure in US dollars as the fulfillment of lessee’s obligation and lessee shall be entitled to keep (and not expend) 25% of such remaining expenditure.

Work Commitment. As a condition to the continued effectiveness of this Agreement, Lessee must expend during the term of this Agreement on or for the exploration and development of the Property the sums described below. The work commitment expenditures may consist of expenses incurred as follows: geochemical, geological and geophysical surveys and sampling of the Property, salaries and wages spent directly on field related expense on the project , travel and lodging expenses, consultants' and contractors' fees, drilling, sample and assay costs, location, amendment and relocation of unpatented mining claims, and all other expenses reasonably incurred by Lessee to explore and develop the Property. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. On Owner’s written demand, Lessee shall deliver annually within 30 days of the effective anniversary date produce documentary evidence sufficient to prove the work commitment expenditures. The work commitment expenditures are as follows: Lease Year Amount First Lease Year $10,000.00 Nil Second Lease Year $$ 25,000.00 Third Lease Year $$ 50,000.00 Fourth Lease Year $and each year thereafter $ 100,000.00 Fifth Lease Year and thereafter $250,000.00 All work expenditures made by Lessee during any Lease Year in excess of the work commitment expenditures required for such Lease Year shall be credited, as far as they will go, against work commitment requirements for any subsequent Lease Year. For any work commitment expenditure not fulfilled with the above work commitment time frames, the difference between the actual expenditure and the minimum work commitment expenditures shall be paid to Owner at a rate of 75% of the remaining expenditure in US dollars as the fulfillment of lessee’s obligation and lessee shall be entitled to keep (and not expend) 25% of such remaining expenditure.

Work Commitment. As a condition to During the continued effectiveness of this Agreement, Lease Years indicated below Lessee must shall expend during the term of this Agreement on or sums described below for the exploration and for, development of the Property the sums described below. The work commitment expenditures may consist or mining of expenses incurred as follows: geochemical, geological and geophysical surveys and sampling of the Property, salaries and wages spent directly minerals on field related expense on the project , travel and lodging expenses, consultants' and contractors' fees, drilling, sample and assay costs, location, amendment and relocation of unpatented mining claims, and all other expenses reasonably incurred by Lessee to explore and develop the Property. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. Lessee shall deliver annually within 30 days of the effective anniversary date documentary evidence sufficient to prove the Lessee's cumulative work commitment expenditures. The work commitment expenditures are as followsobligation shall be: Lease Year Work Commitment Period Amount First Lease Year $10,000.00 25,000.00 Second Lease Year $25,000.00 Third Lease Year $50,000.00 Fourth Lease Year $100,000.00 50,000.00 Fifth Lease Year and thereafter subsequent Lease Year $250,000.00 All work 50,000.00 Lessee's qualified expenditures made by Lessee during any Lease Year work commitment period in excess of the work commitment expenditures required obligation for such Lease Year period shall be credited, as far as they will go, against credited in favor of Lessee to Lessee's subsequent work commitment requirements obligations. Qualified expenditures shall include those expenditures described in Exhibit B. Lessee shall be given credit for any subsequent Lease Yearwork accomplished on property that lies within the Area of Interest (as defined in Exhibit D, attached hereto) and is situate within one thousand (1,000) feet of the Property. For any On Lessee's completion of its work commitment expenditure not fulfilled with the above obligation, Lessee shall deliver to Owner a summary statement of Lessee's expenditures. On Owner's request, Lessee shall deliver to Owner invoices, vouchers and other documentary evidence to substantiate Lessee's work, commitment expenditures, Lessee's failure to timely complete and perform its work commitment time frames, obligations shall constitute a default under this Agreement which Lessee may cure by payment to Owner within thirty (30) days after the work commitment obligation deadline of an amount equal to the difference between the actual expenditure work commitment obligation amount and the minimum qualified expenditures actually incurred by Lessee. If Lessee does not properly and timely complete its work commitment expenditures obligation or make payment in lieu thereof, Owner may terminate this Agreement by delivering notice of termination to Lessee, subject to the notice of default and curative provisions provided in Section 7 of this Agreement. The amount of any payment by Lessee to Owner in lieu of Lessee's work commitment obligation shall be paid to Owner at considered a rate of 75% of qualified expenditure incurred during the remaining expenditure in US dollars as the fulfillment of lessee’s obligation and lessee shall be entitled to keep (and not expend) 25% of such remaining expenditure.Lease Year for which it is paid. SECTION FOURTEEN Commingling

Work Commitment. As a condition Lessee is obligated to expend the continued effectiveness amounts (the “Work Commitment Expenditures”) listed below on Exploration and Development Operations (as defined below) by the end of this Agreement, Lessee must expend during the term of this Agreement on or for the exploration and development of the Property the sums described each Lease year as set forth below. The work commitment expenditures may consist of expenses incurred as follows: geochemicalAdvanced Royalty Payments, geological and geophysical surveys and sampling of the Propertystock issuances, salaries and wages spent directly on field related expense on the project , travel and lodging expenses, consultants' and contractors' fees, drilling, sample and assay costs, location, amendment and relocation of unpatented mining claims, and all other expenses reasonably incurred by Lessee to explore and develop the Property. Federal and County Annual Mining Claim Maintenance and Holding Fees and staking and filing fees assigned interests are not expenses expenditures that Lessee may expense be applied towards the Work CommitmentCommitment Expenditures. Lessee shall deliver annually within 30 days of the effective anniversary date documentary evidence sufficient to prove the work commitment expenditures. The work commitment expenditures are as follows: Lease Year Amount First 1st Lease Year $5,000.00 2nd Lease Year $10,000.00 Second Lease Year $25,000.00 Third Lease Year $50,000.00 Fourth Lease Year $100,000.00 Fifth 3rd Lease Year and each Lease Year thereafter $250,000.00 50,000.00 All work expenditures Work Commitment Expenditures made by Lessee during any Lease Year in excess of the work commitment expenditures Work Commitment Expenditures required for such Lease Year shall be credited, as far as they will go, credited and applied against work commitment requirements Work Commitment Expenditures for any subsequent Lease Year or Years, which shall be reduced in the amount of the excess of such Work Commitment Expenditures made by Lessee over the required Work Commitment Expenditures required for such Lease Year. For any work commitment expenditure not fulfilled with In the event Lessee is unable to fulfill the required Work Commitment Expenditure within the above required work commitment time frames, then the difference between the actual expenditure expenditures made and the minimum work commitment expenditures shall required Work Commitment Expenditure may be paid to Owner at a rate of 75% of the remaining expenditure in US dollars as the fulfillment of lesseeLessee’s obligation and lessee under this Section within 30 days of the delinquent date or this Agreement shall be entitled immediately terminated, null and void and Lessee shall have no rights, titles or interests to keep (and not expend) 25% of such remaining expenditurethis Agreement or the Property.