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Registration No. 000-54136

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Amendment No. 1

to

FORM 10

GENERAL FORM FOR REGISTRATION OF SECURITIES

Pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934

 

 

CONTANGO ORE, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   27-3431051
(State or other jurisdiction of
incorporation or organization)
  (IRS Employer
Identification No.)

3700 Buffalo Speedway, Suite 960

Houston, Texas 77098

(Address of principal executive offices)

(713) 960-1901

(Registrant’s telephone number, including area code)

Securities to be registered pursuant to Section 12(b) of the Act:

 

Title of each class to be so registered

  

Name of each exchange on which

each class is to be registered

NONE

   N/A

Securities registered pursuant to Section 12(g) of the Act:

COMMON STOCK, $0.01 par value

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨   (Do not check if a smaller reporting company)    Smaller reporting company   x

 

 

 


Table of Contents

 

Item 1.

   BUSINESS      1   

Item 1A.

   RISK FACTORS      10   

Item 2.

   FINANCIAL INFORMATION      18   

Item 3.

   PROPERTIES      21   

Item 4.

   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT      47   

Item 5.

   DIRECTORS AND EXECUTIVE OFFICERS      48   

Item 6.

   EXECUTIVE COMPENSATION      50   

Item 7.

   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE      53   

Item 8.

   LEGAL PROCEEDINGS      53   

Item 9.

   MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS      54   

Item 10.

   RECENT SALES OF UNREGISTERED SECURITIES      54   

Item 11.

   DESCRIPTION OF REGISTRANT’S SECURITIES TO BE REGISTERED      54   

Item 12.

   INDEMNIFICATION OF DIRECTORS AND OFFICERS      55   

Item 13.

   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA      56   

Item 14.

   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE      56   

Item 15.

   FINANCIAL STATEMENTS AND EXHIBITS      56   

All references to the “Company”, “CORE”, “we”, “our” and “us” used in this Registration Statement on Form 10 (“Form 10”) are to Contango ORE, Inc.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Registration Statement contains forward-looking statements regarding the Company that are based on the Company’s current expectations and includes statements regarding estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, the risks associated with exploring for gold and rare earth materials (for example, risks involving unanticipated geological conditions related to exploring and mining; the uncertainty of any reserve estimates; the uncertainty of estimates and projections relating to any future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as the arctic freeze, extremely cold temperatures and natural disasters); uncertainties as to the availability and cost of financing; fluctuations in supply and demand for gold and rare earth elements; inability of our management team to execute its plans to meet its goals, and the possibility that government policies may change or governmental approvals may be delayed or withheld. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made, but they are open to a wide range of uncertainties and business risks, including the risks described under “Item 1A – Risk Factors.” The Company does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.


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Item 1. BUSINESS.

General

The Company was formed on September 1, 2010 as a Delaware corporation registered to do business in Alaska for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. The Company is a wholly-owned subsidiary of Contango Oil & Gas Company (“Contango”).

Contango Mining Company (“Contango Mining”) was formed on October 15, 2009 as a Delaware corporation registered to do business in Alaska for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. Contango Mining is also a wholly-owned subsidiary of Contango. The Company will acquire properties held by Contango Mining, will succeed to the business of Contango Mining, and will assume all assets and liabilities of Contango Mining. As a result, references that describe the operations of the Company, include the operations of Contango Mining.

Contango Mining holds leasehold interests in approximately 647,000 acres from the Tetlin Village Council, the council formed by the governing body for the Native Village of Tetlin, an Alaska Native Tribe (“Tetlin Lease”) and holds 12,000 acres in unpatented mining claims from the State of Alaska for the exploration of gold and associated minerals (together with the Tetlin Lease, the “Gold Properties”). Contango Mining also holds interests in and to 3,520 acres in unpatented Federal mining claims and 97,280 acres in unpatented mining claims from the State of Alaska for the exploration of rare earth elements (the “REE Properties”, and together with the Gold Properties, the “Properties”). Contango Mining acquired a 50% interest in the Properties from Juneau Exploration, L.P., (“JEX”) in exchange for $1 million and a 1% overriding royalty interest under a Joint Exploration Agreement dated as of September 29, 2009 (the “Joint Exploration Agreement”). As of September 15, 2010, Contango Mining acquired the remaining 50% interest in the Properties by increasing the overriding royalty interest in the Properties granted to JEX to 3% pursuant to an Amended and Restated Conveyance of Overriding Royalty Interest (the “Amended ORRI Agreement”), and JEX and Contango Mining terminated the Joint Exploration Agreement.

Distribution of Company Stock

The Company anticipates that Contango will distribute the Company’s common stock to Contango’s stockholders of record as of October 15, 2010, promptly after the effective date of this Form 10 (the “Distribution”) on the basis of one share of common stock for each ten (10) shares of Contango’s common stock then outstanding. Immediately prior to the Distribution, Contango Mining will assign the Properties and related assets and liabilities to Contango, which will contribute the Properties and related assets together with $3.5 million in cash to the Company pursuant to the terms of a Contribution Agreement between Contango and the Company (“Contribution Agreement”).

Our Business

We are a Houston-based company, whose primary business is to explore in the State of Alaska for (i) gold ore and associated minerals, and (ii) rare earth elements. We expect to initially have three part time employees.

We have leased or have control over properties in the State of Alaska totaling approximately 759,800 acres for the exploration of gold and associated minerals and rare earth elements. We anticipate that from time to time we will acquire additional acreage in Alaska for the exploration of gold and

 

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associated minerals and rare earth elements through leases or obtaining additional mining claims. Our exploration strategy is predicated upon two core beliefs: (1) that the only competitive advantage in a commodity-based business is to be among the lowest cost producers and (2) that virtually all the mining industry’s value creation occurs through the discovery of mineral deposits that can be developed to the state of a commercially viable producing mine. While we do not have previous experience in the gold or rare earth element industries, we plan to focus our business strategy on the following elements:

Using our limited capital availability to increase our reward/risk potential on selective prospects . We will concentrate our risk investment capital in our prospects in Alaska. We have leased approximately 647,000 acres and control another 12,000 acres consisting of 126 unpatented State of Alaska mining claims in Eastern Alaska for the exploration of gold and associated minerals. We also own 3,520 acres consisting of 176 unpatented Federal mining claims and 97,280 acres consisting of 608 unpatented State of Alaska mining claims for the exploration of rare earth elements. Exploration prospects are inherently risky as they require large amounts of capital with no guarantee of success.

Our strategic initiatives are to undertake cost efficient and effective exploration activities to discover mineralization and potential mineral reserves which may enhance the value of our properties. If we are successful in our exploration activities, we may consider a joint venture or sales of our Properties to qualified mining companies. Under the terms of the Contribution Agreement, Contango will fund the Company with $3.5 million to pay for exploration and development costs of our gold and rare earth element prospects.

Alliance with JEX . JEX is a private company formed primarily for the purpose of assembling natural gas and oil prospects. Contango has previously contracted with JEX to conduct exploration activities for oil and gas reserves primarily in the Gulf of Mexico. JEX has been responsible in securing and negotiating the Tetlin Lease and assisting in obtaining the Properties and initially engaged Avalon Development Corporation, an Alaska-domiciled domestic corporation (“Avalon”) to conduct mineral exploration activities of the Tetlin Properties. JEX will continue to assist us in acquiring additional acreage in Alaska and provide other consulting services to the Company. We do not have a written agreement with JEX which contractually obligates them to provide us with their services. We anticipate providing JEX with an additional overriding royalty interest in property where JEX assists in the acquisition of such property.

Consulting Services Provided by Avalon. We have entered into a Professional Services Agreement with Avalon to conduct certain geological consulting services and exploration activities on the Properties. Avalon is a Fairbanks, Alaska based mineral exploration consulting firm, which has conducted mineral exploration in Alaska since 1985. Avalon’s mineral exploration services include pre-field planning, in-progress evaluation/modification and post-field critical review. Avalon’s exploration team has identified or conducted discovery drilling on several gold deposits in Alaska and has completed digital geographic information systems (“GIS”) compilations of the Tintina Gold Belt, a regional-scale mineral province stretching from southwestern Alaska to the southern Yukon Territory. Avalon also has experience exploring for copper, nickel and platinum group elements (“Cu-Ni-PGE”) deposits and also created a comprehensive GIS compilation of PGE prospects in Alaska, an internally-owned database that contains data on over 200 PGE occurrences in Alaska. In 2002, Avalon expanded its digital database to the identification and acquisition of rare earth element prospects in Alaska. Avalon will continue to work in conjunction with the Company to identify new properties and will conduct the initial exploration for such properties.

 

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If any exploratory work on the Properties should prove successful, the Company could develop a wholly-owned mining operation entity to conduct mining operations, contract with mining companies to extract mineral ore from our Properties or enter into a joint venture with or sale of our Properties to an established mining company.

Structuring Incentives to Drive Behavior . We believe that equity ownership aligns the interests of our consultants, executives and directors with those of our stockholders. Immediately prior to the Distribution, the Company’s directors and officers will receive restricted shares of common stock equal to 4.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. The Company’s directors and officers initially will not receive any cash compensation for their work for the Company. Following the Distribution, the Company’s directors and executive officers will beneficially own or have voting control over approximately 22% of our common stock. In addition, our major consultant for geological and exploration activities, Avalon will receive restricted shares of our common stock equal to 1.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. All shares of restricted stock will vest over three years, beginning with the one-year anniversary of the date the shares were granted.

Maximize Value Creation per Share . We believe that the primary objective of a business is to maximize value creation per share. As a result, we intend to limit the number of new shares issued in any future fund raising and keep grants of stock options to our directors, officers and Avalon to a minimum.

We are an exploration stage company, and none of the Properties that we own or control contain any known reserves or mineralized material. The Properties are at an early stage of exploration, and even if mineral reserves are discovered, they may not be commercially viable. A significant amount of additional work and at least another two years is likely required in the exploration of our Properties before any determination as to the economic feasibility of a mining venture can be made. Due to the harsh climate in Alaska, our work months are restricted to May through October.

Exploration and Mining Property

Exploration and mining rights in Alaska may be acquired in the following manner: public lands, private fee lands, unpatented Federal or State of Alaska mining claims, patented mining claims, and tribal lands. The primary sources for acquisition of these lands are the United States government, through the Bureau of Land Management and the United States Forest Service, the Alaskan state government, tribal governments, and individuals or entities who currently hold title to or lease government and private lands.

The Federal government owns public lands that are administered by the Bureau of Land Management or the United States Forest Service. Ownership of the subsurface mineral estate can be acquired by staking a twenty (20) acre mining claim granted under the General Mining Law of 1872, as amended (the “General Mining Law”). The Federal government still owns the surface estate even though the subsurface can be controlled with a right to extract through claim staking. Private fee lands are lands that are controlled by fee-simple title by private individuals or corporations. These lands can be controlled for mining and exploration activities by either leasing or purchasing the surface and subsurface rights from the private owner. Patented mining claims are claims that were staked under the General Mining Law, and through application and approval the owners were granted full private ownership of the surface and subsurface estate by the Federal government. These lands can be acquired for exploration and mining through lease or purchase from the owners. In order to acquire a patent, an applicant must, among other things, prove that improvements have been made on the land of not less than $500, pay a fee of five dollars ($5) per acre, and identify and describe the mineral deposit located in the land. Unpatented mining claims located on public land owned by another entity can be controlled by leasing or purchasing the claims outright from the owners.

 

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With respect to unpatented mining claims, the Federal or applicable state government continues to hold the fee interest in real property while allowing private parties to stake claims for exploration, development and commercial extraction of minerals with rights of ingress and egress on the real property. Unpatented claims give the claimant the exclusive right to explore for and to develop the underlying minerals and use the surface for such purpose. However, the claimant does not own title to either the minerals or the surface, and the claim is subject to annual assessment work requirements and the payment of annual rental fees which are established by the governing authority of the land on which the claim is located. Unpatented mining claims are generally considered to be subject to greater title risk than other real property interests because the validity of unpatented mining claims is often uncertain, due to the complex Federal and state laws and regulations that supplement the General Mining Law. Also, unpatented mining claims and related rights, including rights to use the surface are subject to challenges by third parties or contests by the Federal or applicable state government. In addition, there are few public records that definitively determine the issues of validity and ownership of unpatented state mining claims. Our mining claims on land belonging to the State of Alaska have no opportunity to be patented. Rights to deposits of minerals on Alaska state land that is open to claim staking may be acquired by discovery, location and recording as prescribed in Alaska state statutes (AS 38.05.185 – 38.05.280). The State of Alaska requires holders of unpatented mining claims to perform annual assessment work and pay an annual fee on the claims in order to maintain the claimant’s title to the mining rights in good standing. State of Alaska unpatented mining claims are subject to a title reservation of 3% net profits royalty for all mineral production on net mining income of $100,000 or more. Mining claims located on State of Alaska lands cannot be deeded to the claimant.

Tribal lands are those lands that are under control by sovereign Native American tribes or Alaska Native corporations established by the Alaska Native Claims Settlement Act of 1971 (ANSCA). Areas that show promise for exploration and mining can be leased or joint ventured with the tribe controlling the land.

State of Alaska Exploration

Contango Mining was formed October 15, 2009 for the purpose of engaging in mineral exploration in Alaska. JEX entered into the Tetlin Lease in the State of Alaska with the Tetlin Village Council effective as of July 15, 2008 in order to conduct exploration activities for gold ore and other associated minerals and sold a 50% interest in the Tetlin Lease to Contango Mining in exchange for $1 million and a 1% overriding royalty interest. As of September 15, 2010 we acquired the remaining 50% interest in the Tetlin Lease from JEX in exchange for increasing the overriding royalty interest held by JEX to three percent (3%) pursuant to the Amended ORRI Agreement. Following the Distribution, the Company will have an interest in approximately 759,800 acres, 659,000 acres upon which predecessors of the Company commenced conducting gold exploration activities beginning in 2009, and 100,800 acres upon which the Company will conduct rare earth mineral exploration activities. See Item 3 – “Properties” for additional information regarding the Properties.

JEX originally entered into the Tetlin Lease to explore for oil, gas and other mineral reserves. In conducting preliminary drilling work on the Tetlin Properties, JEX began to explore the Tetlin Properties for mineral deposits and engaged Avalon to continue exploratory drilling activities. JEX sold a 50% leasehold interest in the Tetlin Properties to Contango Mining for a purchase price of $1 million.

With respect to the acquisition of our REE Properties, Contango developed an interest in rare earth elements because of the increasing demand for products using rare earth elements, and based upon the preliminary surveys conducted by the United States Geological Survey and subsequently reviewed and analyzed by Avalon, Contango and JEX staked state and federal mining claims and has engaged Avalon to conduct preliminary exploratory activities for rare earth elements in Alaska.

 

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Gold Mining

In 2009, exploration activities were conducted over our leasehold interests in Alaska, which consists of approximately 647,000 acres leased from the Tetlin Village Council (the “Tetlin Properties”), 11,360 acres of State of Alaska unpatented mining claims near Tok, Alaska, which are contiguous with the Tetlin Properties and another 640 acres of State of Alaska unpatented mining claims that are non-contiguous with the Tetlin Properties but are located on the same trend of mineral ore. In our 2009 exploration program, we collected a total of 1,096 rock, soil, pan concentrate and stream silt samples from our Tetlin Properties. Of this total, 348 samples showed measurable amounts of gold with 30 samples showing measured gold of 500 parts per billion (“ppb”) or higher.

In our 2010 exploration program, we collected a total of 1,884 rock, soil, pan concentrate and stream silt samples from our Tetlin Properties. Of this total, 910 samples showed measurable amounts of gold with 54 samples showing gold concentrations greater than 500 ppb. We also ran ground geophysical surveys with induced polarization (IP) which measures the conductivity/resistivity of underlying sub-surface rocks. Conductivity indicates the presence of metals. Based on our geology and IP results, we are reviewing our options for our 2011 exploration program. Our current plan is to fly airborne magnetic, electromagnetic, and radiometrics early next summer.

Gold is used for jewelry, coinage and bullion as well as various industrial and electronic applications. Gold can be readily sold on numerous markets throughout the world. Benchmark prices are generally based on the average London Bullion Market Association price for a specified month near the month of shipment.

Rare Earth Elements

The term “rare earth” is actually a misnomer. Rare earth elements are not in fact rare, as they are found in low concentrations throughout the earth’s crust. There are relatively few locations, however, where rare earth elements (“REEs”) are currently being economically mined and processed outside of China. Our decision to explore for REEs is based on our belief that REEs will become increasingly valuable as the world moves to embrace alternative “green” forms of energy such as wind turbines and advanced batteries which require REEs for component parts.

REEs have unique properties that have applications in several technologies, including:

 

   

Clean-Energy Technologies : hybrid and electric vehicles, and wind turbines

 

   

Defense and Homeland Security Applications : aircraft control, lasers, global positioning systems, radar, sonar, guided missiles and smart bombs

 

   

High-Technology Applications : microwaves, MRI testing, color televisions, motion picture studio lighting and projection

Demand for REEs is expected to increase due to increased demand for existing products that utilize rare earth elements as well as continued development of additional technologies that require application of REEs. Currently, China accounts for over 90% of the global supply for REEs and the oxides produced from REEs, and the Chinese government has begun to restrict exports of REEs and require that manufacturing of rare earth metals take place within China.

 

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Our decision to focus our rare earth element exploration efforts in Alaska is based, in part, upon several surveys performed by the United States Geological Survey in the 1970s and 1980s. The surveys indicated strong uranium deposits as well as deposits of zirconium, beryllium, tantalum, and niobium, which are commonly found near deposits of rare earth elements.

In 2011 we expect to begin exploratory work for rare earth elements over the 100,800 acres we control in Alaska. Our exploration activities will include the following: geological surveying, geochemical sampling, geophysical surveying, geochemical evaluation for rare earth elements and two-dimensional and three-dimensional electromagnetic exploration in order to determine the existence and location of any rare earth elements.

We hold the following federal unpatented mining claims: (i) 49 unpatented mining claims near Stone Rock Bay, Alaska, totaling 980 acres, and (ii) 127 unpatented mining claims near Salmon Bay, totaling 2,540 acres, which are located near Bokan Mountain. We also control 608 State of Alaska unpatented mining claims, totaling 97,280 acres, located in the interior of Alaska. The Company believes that there has been limited exploration targeted specifically at REEs in Alaska historically, with the exception of Bokan Mountain, located on the Prince of Wales Island in Southeast Alaska.

REEs consist of the 15 elements with atomic numbers 57 to 71 (the “Lanthanide Series”), plus the elements Scandium (atomic number 21) and Yttrium (atomic number 39). REEs are separated into two categories, light rare earths (“LREEs”, consisting of atomic numbers 57-62), and heavy rare earths (“HREEs”, consisting of atomic numbers 63-71, plus Yttrium (atomic number 39)).

The following table ranks the REEs in the order of their relative abundance in the earth’s crust:

 

Rare-Earth Element, Symbol

   Abundance
(parts per million)
     Atomic
Number
 

Cerium, Ce

     46.0         58   

Yttrium, Y

     28.0         39   

Neodymium, Nd

     24.0         60   

Lanthanum, La

     18.0         57   

Samarium, Sm

     6.5         62   

Gadolinium, Gd

     6.4         64   

Praseodymium, Pr

     5.5         59   

Scandium, Sc

     5.0         21   

Dysprosium, Dy

     4.5         66   

Ytterbium, Yb

     2.7         70   

Erbium, Er

     2.5         68   

Holmium, Ho

     1.2         67   

Europium, Eu

     1.1         63   

Terbium, Tb

     0.9         65   

Lutetium, Lu

     0.8         71   

Thulium, Tm

     0.2         69   

Promethium, Pm

     0.0         61   

Consulting Services provided by Avalon Development Corporation

The Company is a party to a Professional Services Agreement with Avalon to provide certain geological consulting services and exploration activities with respect to the Properties. In connection with the Distribution, the Company intends to enter into an Amended and Restated Professional Services Agreement with Avalon (the “PSA”). Pursuant to the PSA, Avalon will continue to provide certain

 

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geological consulting services and exploration activities. The Company pays Avalon on a per diem basis and reimburses Avalon for its expenses pursuant to the PSA. As additional compensation, Avalon will also receive restricted shares of common stock equal to 1.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. The shares will vest over three years beginning with the one-year anniversary of the date the shares were granted. Avalon has conducted mineral exploration in Alaska since 1985. Its team of engineers and geoscientists combined with its geographic information systems (GIS) database allows Avalon to synthesize existing geological, geochemical and geophysical data and identify specific target areas for ground evaluation and/or acquisition. Avalon expects to assign approximately 5 engineers and geologists to conduct exploration activities on the Properties. Work schedules will vary widely from a 7 day per week, 30-day minimum schedule for field related geologists and geological engineers to 40-hours per week schedules for geographic information system and management staff. Because the Company does not have experience exploring or evaluating gold or rare earth element prospects in Alaska, we will rely on Avalon’s experience in the State of Alaska to determine whether our exploration activities will be likely to develop commercially viable deposits.

Marketing and Pricing

Should our exploratory drilling activities prove to be successful, the Company expects to mine ore and derive its revenue principally from the sale of gold and associated minerals or rare earth elements. We may also enter into joint ventures or sell some or all of our Properties to qualified mining companies. We do not currently have a market for any minerals that may be derived from our Properties. As a result, the Company’s revenues are expected to be determined, to a large degree, by the success of our exploration and any subsequent mining activities and by prevailing prices for gold and rare earth elements. Market prices are dictated by supply and demand, and the Company cannot predict or control the price it will receive for gold ore and rare earth elements.

Adverse Climate Conditions

Climate conditions will affect the Company’s ability to conduct exploration activities and mine any ore from its Properties in Alaska. While exploratory drilling and related activities may only be conducted from May to October on certain of our Properties, the Company believes development work and any subsequent mining may be conducted year-round.

Competition

We currently face strong competition for the acquisition of exploration-stage properties as well as extraction of any minerals in Alaska. Numerous larger mining companies actively seek out and bid for mining prospects as well as for the services of third party providers and supplies, such as mining equipment and transportation equipment. Our competitors in the exploration, development, acquisition and mining business will include major integrated mining companies as well as numerous smaller mining companies, almost all of which have significantly greater financial resources and in-house technical expertise. In addition, we will compete with others in efforts to obtain financing to explore our mineral properties.

While there are few rare earth mining companies in the United States, the global rare earth mining and processing markets are competitive. China currently accounts for over 90% of rare earth mineral production and manufacturing, and should our rare earth mining efforts prove to be successful, we may not be able to implement the processing technologies and capabilities that our Chinese counterparts have already established. Our Chinese competitors may have greater financial resources, as well as other strategic advantages to maintain, improve and expand their mining programs. In addition, Chinese domestic economic policies may allow domestic companies to produce at relatively lower costs.

 

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Competitive conditions may be substantially affected by various forms of legislation and regulation considered from time to time by the government of the United States and the State of Alaska, as well as factors that we cannot control, including international political conditions, overall levels of supply and demand for minerals, and currency fluctuations.

Government Regulation

Our mineral exploration activities are generally affected by various laws and regulations, including environmental, conservation, tax and other laws and regulations relating to the exploration of minerals. Various Federal and Alaskan laws and regulations often require permits for exploration activities and also cover extraction of minerals. In addition, our Tetlin Properties are located on land leased from the Tetlin Village Council. Federally recognized Native American tribes are independent governments, with sovereign powers, except as those powers may have been limited by treaty or by the United States Congress. Such tribes maintain their own governmental systems and often their own judicial systems and have the right to tax, and to require licenses and to impose other forms of regulation and regulatory fees, on persons and businesses operating on their lands. As sovereign nations, federally recognized Native American tribes are generally subject only to federal regulation. States do not have the authority to regulate them, unless such authority has been specifically granted by Congress, and state laws generally do not directly apply to them and to activities taking place on their lands, unless they have a specific agreement or compact with the state or federal government allowing for the application of state law. We will continue to use our best efforts to ensure that the Company is in compliance with all applicable laws and regulations but the denial of permits required to explore for or mine ore may prevent us from realizing revenues arising from the presence of minerals on our properties.

Environmental Regulation

Mining operations are subject to local, state and federal regulation governing environmental quality and pollution control, including air quality standards, greenhouse gas, waste management, reclamation and restoration of properties, plant and wildlife protection, handling and disposal of radioactive substances, and employee health and safety. Extraction of mineral ore is subject to stringent environmental regulation by state and federal authorities, including the Environmental Protection Agency. Such regulation can increase the cost of planning, designing, installing and operating mining facilities or otherwise delay, limit or prohibit planned operations.

Significant fines and penalties may be imposed for failure to comply with environmental laws. Some environmental laws provide for joint and several strict liability for remediation of releases of hazardous substances. In addition, we may be subject to claims alleging personal injury or property damage as a result of alleged exposure to hazardous substances.

Some REE deposits contain naturally occurring radioactive substances, such as thorium and uranium. The mining of REEs that contain such radioactive substances involves the handling and disposal of such substances, and accordingly we may be subject to extensive safety, health and environmental laws, regulations and permits regarding radioactive substances. Significant costs, obligations or liabilities may be incurred with respect to such requirements, and any future changes in such requirements (or the interpretation or enforcement thereof) may have a material adverse effect on our business or results of operations. Furthermore, our drilling programs may also use hazardous materials and generate hazardous and naturally occurring radioactive wastes. These and similar unforeseen impacts that our operations may have on the environment, as well as human exposure to hazardous or radioactive materials or wastes associated with our operations, could have a material adverse effect on our business, reputation, results of operation and financial condition.

 

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The Federal Mine Safety and Health Act of 1977 and regulations promulgated thereunder as well as the State of Alaska Department of Labor and Workforce Development impose a variety of health and safety standards on numerous aspects of employee working conditions related to mineral extraction and processing operations, including the training of personnel, operating procedures and operating equipment. In addition, the Company may be subject to additional state and local mining standards. The Company believes that it currently is in compliance with applicable mining standards; however, we cannot predict whether changes in standards or the interpretation or enforcement thereof will have a material adverse effect on our business, financial condition or otherwise impose restrictions on our ability to conduct mining operations.

Federal legislation and regulations adopted and administered by the U.S. Environmental Protection Agency, Forest Service, Bureau of Land Management, Fish and Wildlife Service, Mine Safety and Health Administration, and other federal agencies, legislation such as the Federal Clean Water Act, Clean Air Act, National Environmental Policy Act, Endangered Species Act, and Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and various laws and regulations administered by the State of Alaska, have a direct bearing on exploration and mining operations conducted in Alaska. These regulations will make the process for preparing and obtaining approval of a plan of operations much more time-consuming, expensive, and uncertain. Plans of operation will be required to include detailed baseline environmental information and address how detailed reclamation performance standards will be met. In addition, all activities for which plans of operation are required will be subject to a new standard of review by the U.S. Bureau of Land Management, which must make a finding that the conditions, practices or activities do not cause substantial irreparable harm to significant scientific, cultural, or environmental resource values that cannot be effectively mitigated.

CERCLA generally imposes joint and several strict liability for costs of investigation and remediation and for natural resource damages, with respect to the release of hazardous substances (as designated under CERCLA) into the environment. CERCLA also authorizes the EPA, and in some cases, third parties, to take action in response to threats to the public health or the environment and to seek to recover from the potentially responsible parties the costs of such action. Our mining operations may generate wastes that fall within CERCLA’s definition of Hazardous Substances.

Employees

The Company expects to have three part-time employees. Mr. Peak is the Chairman, Chief Executive Officer and President of the Company and will be responsible for the management of the Company. Mr. Castro is the Vice President, Chief Financial Officer and Secretary of the Company and will be responsible for the financial affairs of the Company. Ms. Makalskaya is the Vice President and Controller of the Company and will be responsible for the Company’s accounting. The Company expects that Mr. Peak will devote seven (7) hours per week to the Company’s business and Mr. Castro and Ms. Makalskaya will each devote fifteen (15) hours per week to the Company’s business. The Company also expects to use the services of independent consultants and contractors, including JEX, to perform various professional services, including land acquisition, legal, environmental and tax services. JEX will have two employees who are a land man and an engineer, respectively, and will devote an aggregate of 8 hours per week to the Company’s business. In addition, the Company expects to utilize the services of independent contractors, including Avalon, to perform geological, exploration and drilling operation services and independent third party engineering firms to evaluate any reserves.

 

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Available Information

You may read and copy all or any portion of this registration statement and the exhibits and schedules that were filed with this registration statement without charge at the office of the Securities and Exchange Commission (the “SEC”) in Public Reference Room, 100 F Street NE, Washington, DC, 20549. Copies of the registration statement may be obtained from the SEC at prescribed rates from the Public Reference Section of the SEC at the above address. Information regarding the operation of the public reference rooms may be obtained by calling the SEC at 1-800-SEC-0330. In addition, registration statements and certain other filings made with the SEC electronically are publicly available through the SEC’s website at http://www.sec.gov. This registration statement, including all exhibits and amendments to the registration statement, has been filed electronically with the SEC.

Upon effectiveness of this registration statement, we will become subject to the information and periodic reporting requirements of the Securities and Exchange Act of 1934, as amended, and, in accordance therewith, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection and copying at the public reference facilities and web site of the SEC.

We intend to furnish our stockholders with annual reports on Form 10-K containing audited consolidated financial statements and make available quarterly reports for the first three fiscal quarters of each fiscal year containing unaudited interim consolidated financial information.

 

Item 1A. RISK FACTORS

In addition to other information set forth elsewhere in this Registration Statement, you should carefully consider the following factors when evaluating the Company. An investment in the Company is subject to risks inherent in our business. The trading price of the shares of the Company is affected by the performance of our business relative to, among other things, competition, market conditions and general economic industry conditions. The value of an investment in the Company may decrease, resulting in loss. The risk factors below are not all inclusive.

Risks Relating to Our Business

We have no revenue to date from our mining properties, which may negatively impact our ability to achieve our business objectives.

Since the acquisition of the Properties in the fall of 2009 and spring of 2010, we and our predecessors have conducted only very limited exploration activities and to date have not, discovered any commercially viable mineral deposits. Our ability to become profitable will be dependent on the receipt of revenues from the extraction of minerals greater than our operational expenses. We and our predecessors have carried on our business of exploring our Properties at a loss since our inception and expect to continue to incur losses unless and until such time as one of our Properties enters into commercial production and generates sufficient revenues to fund our continuing operations. The amounts and timing of expenditures will depend on the progress of ongoing exploration, the results of consultants’ analysis and recommendations, the rate at which operating losses are incurred, and other factors, many of which are beyond our control. Whether any mineral deposits we discover would be commercially viable depends on a number of factors, which include, without limitation, the particular attributes of the deposit, market prices for the minerals, and governmental regulations. If we cannot discover commercially viable deposits or commence actual mining operations, we may never generate revenues and will never become profitable.

 

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The Properties in which we have an interest do not have any proven or probable reserves and we may never identify any commercially exploitable mineralization.

None of our Properties have any proven or probable reserves. To date, we have engaged in only limited preliminary exploration activities on the Properties, and our exploration activities of our REE Properties are based upon prior preliminary surveys conducted by the Federal government. Accordingly, we do not have sufficient information upon which to assess the ultimate success of our exploration efforts. There is no assurance that we may ever locate any mineral resources on our Properties or if we find mineral resources, they may not be in economic quantities. Additionally, even if we find minerals in sufficient quantities to warrant recovery, such recovery may not be economically profitable. Mineral exploration is highly speculative in nature, involves many risks and is frequently non-productive. Unusual or unexpected geologic formations and the inability to obtain suitable or adequate machinery, equipment or labor are risks involved in the conduct of exploration programs. If we do not establish reserves, we will be required to curtail or suspend our operations, in which case the market value of our common stock will decline, and you may lose all of your investment.

The probability of an individual prospect ever having reserves is extremely remote.

The probability of finding economic mineral reserves on any of our Properties is extremely small. It is common to spend millions of dollars on a potential project and complete many phases of exploration and still not obtain mineral reserves that can be economically exploited. Therefore, the chances of our Properties ever having mineral reserves and recovering any funds spent on exploration is extremely remote.

Our Properties are located in the remote regions of Alaska and exploration activities may be limited by climate and limited access and existing infrastructure.

Our focus is on the exploration of our Properties in the State of Alaska. The arctic climate limits exploration activities to May to October. In addition, the remote location of our Gold Properties as well as our REE Properties may limit access and increase exploration expenses. Higher costs associated with exploration activities and limitation on the annual periods in which we can carry on exploration activities will increase the costs and time associated with our planned exploration activities and could negatively affect the value of our Properties and securities.

We are highly dependent on the technical services provided by our consultant, Avalon, including the operation and maintenance of the Properties and exploratory drilling activities, and could be seriously harmed if Avalon terminated the services with us or became otherwise unavailable.

Because we expect to have only three part-time employees, none of whom are mineral geoscientists or have experience in the mining industry, we will depend upon our consultant, Avalon, for the success of our exploration projects and expect to remain so for the foreseeable future. Our ability to continue conducting exploration activities is in large part dependent upon the efforts of our consultant. As a result, we have little control over the exploratory operations on the Properties. In addition, highly qualified explorationists and engineers are difficult to attract and retain. As a result, the loss of the services of our consultant could have a material adverse effect on us and could prevent us from pursuing our business plan.

 

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We are dependent on the services provided by JEX, including the acquisition of additional acreage, and could be seriously harmed if JEX terminated its services or became otherwise unavailable.

We are dependent upon JEX for assistance in acquiring additional acreage for our exploration projects in Alaska and expect to remain so for the foreseeable future. We do not have a written agreement with JEX which contractually obligates them to provide us with their services in the future. As a result, the loss of the services of JEX could have a material adverse effect on us and could prevent us from pursuing our business plan.

Our ability to successfully execute our business plan is dependent on our ability to obtain adequate financing.

Our business plan, which includes the drilling of exploration prospects, will require substantial capital expenditures. We will require financing to fund our planned explorations and will soon be required to raise additional capital. Our ability to raise capital will depend on many factors, including the status of our exploration program and the status of various capital and industry markets at the time we seek such capital. Accordingly, we cannot be certain that financing will be available to us on acceptable terms, if at all. In the event additional capital resources are unavailable, we may be required to curtail our exploration and development activities or be forced to sell some of our Properties in an untimely fashion or on less than favorable terms.

Concentrating our capital investment in the State of Alaska increases our exposure to risk.

We expect to focus our capital investments in gold and rare earth mineral prospects in the State of Alaska. However, our exploration prospects in Alaska may not lead to any revenues or we may not be able to drill for mineral deposits at anticipated finding and development costs due primarily to financing and environmental uncertainties. Should we be able to make an economic discovery on our Properties, we would then be solely dependent upon a single mining operation for our revenue and profits.

We will rely on the accuracy of the estimates in reports provided to the Company by outside consultants and engineers.

We have no in house mineral engineering capability, and therefore will rely on the accuracy of reserve reports provided to us by our independent third party consultants. If those reports prove to be inaccurate, our financial reports could have material misstatements. Further, we will use the reports of our independent consultants in our financial planning. If the reports prove to be inaccurate, we may also make misjudgments in our financial planning.

Exploration activities involve a high degree of risk, and our participation in exploratory drilling activities may not be successful.

Our future success will largely depend on the success of our exploration drilling program. Participation in exploration drilling activities involves numerous risks, including the significant risk that no commercially marketable minerals will be discovered. The mining of minerals and the manufacture of mineral products involves numerous hazards, including:

 

   

Ground or slope failures;

 

   

Pressure or irregularities in formations affecting ore or wall rock characteristics;

 

   

Equipment failures or accidents;

 

   

Adverse climate conditions;

 

   

Compliance with governmental requirements and laws, present and future;

 

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Shortages or delays in the availability and delivery of equipment; and

 

   

Lack of adequate infrastructure, including access to roads, electricity and available housing.

Poor results from our drilling activities would materially and adversely affect our future cash flows and results of operations.

We have no assurance of title to our Properties.

We hold approximately 109,280 acres in the form of State of Alaska unpatented mining claims, for both gold and REE exploration. We also hold approximately 3,520 acres in unpatented U.S. federal mining claims. Unpatented mining claims are unique property interests, in that they are subject to the paramount title of, the State of Alaska or the U.S. federal government, as applicable, and rights of third parties to uses of the surface within their boundaries, and are generally considered to be subject to greater title risk than other real property interests. The rights to deposits of minerals lying within the boundaries of the unpatented state claims are subject to Alaska Statues 38.05.185 – 38.05.280, and are governed by Alaska Administrative Code 11 AAC 86.100 – 86.600. The validity of all State of Alaska unpatented mining claims is dependent upon inherent uncertainties and conditions. These uncertainties relate to matters such as:

 

   

The existence and sufficiency of a discovery of valuable minerals;

 

   

Proper posting and marking of boundaries in accordance with state statutes;

 

   

Making timely payments of annual rentals for the right to continue to hold the mining claims in accordance with state statutes;

 

   

Whether sufficient annual assessment work has been timely and properly performed; and

 

   

Possible conflicts with other claims not determinable from descriptions of records.

The validity of an unpatented mining claim also depends on (1) the claim having been located on Alaska state land open to appropriation by mineral location, which is the act of physically going on the land and making a claim by putting stakes in the ground, (2) compliance with all applicable state statutes in terms of the contents of claim location notices or certificates and the timely filing and recording of the same, (3) timely payment of annual claim rental fees, and (4) the timely filing and recording of proof of annual assessment work. In the absence of a discovery of valuable minerals, the ground covered by an unpatented mining claim is open to location by others unless the owner is in actual possession of and diligently working the claim. The unpatented state mining claims we own or control may be invalid, or the title to those claims may not be free from defects. In addition, the validity of our claims may be contested by the Alaska state government or challenged by third parties.

With respect to our Tetlin Properties, we retained title lawyers to conduct a general examination of title to the mineral interest prior to executing the lease. Prior to conducting any mining activity, however, we will obtain a full title review of the applicable lease to identify more fully any deficiencies in title to the lease and, if there are deficiencies, to identify measures necessary to cure those defects to the extent reasonably possible. However, such deficiencies may not be cured by us. It does happen, from time to time, that the examination made by title lawyers reveals that the title to the Properties are defective, having been obtained in error from a person who is not the rightful owner of the mineral interest desired. In these circumstances, we may not be able to proceed with our exploration and development of the lease site or may incur costs to remedy a defect. It may also happen, from time to time, that we may elect to proceed with drilling despite defects to the title identified in a title opinion.

 

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We have entered into the Tetlin Lease with a Native American tribe for the exploration of gold and associated minerals. The enforcement of contractual rights against Native American tribes with sovereign powers may be difficult.

Federally recognized Native American tribes are independent governments with sovereign powers, except as those powers may have been limited by treaty or the United States Congress. Such tribes maintain their own governmental systems and often their own judicial systems and have the right to tax, and to require licenses and to impose other forms of regulation and regulatory fees, on persons and businesses operating on their lands. As sovereign nations, federally recognized Native American tribes are generally subject only to federal regulation. States do not have the authority to regulate them, unless such authority has been specifically granted by Congress, and state laws generally do not directly apply to them and to activities taking place on their lands, unless they have a specific agreement or compact with the state or federal government allowing for the application of state law. Our Tetlin Lease provides that it will be governed by applicable federal law and the law of the State of Alaska. We cannot assure you, however, that this choice of law clause would be enforceable, leading to uncertain interpretation of our rights and remedies under the Tetlin Lease.

Federally recognized Native American tribes also generally enjoy sovereign immunity from lawsuit similar to that of the states and the United States federal government. In order to sue a Native American tribe (or an agency or instrumentality of a Native American tribe), the Native American tribe must have effectively waived its sovereign immunity with respect to the matter in dispute. Moreover, even if a Native American tribe effectively waives its sovereign immunity, there exists an issue as to the forum in which a lawsuit can be brought against the tribe. Federal courts are courts of limited jurisdiction and generally do not have jurisdiction to hear civil cases relating to matters concerning Native American lands or the internal affairs of Native American governments. Federal courts may have jurisdiction if a federal question is raised by the lawsuit, which is unlikely in a typical contract dispute. Diversity of citizenship, another common basis for federal court jurisdiction, is not generally present in a suit against a tribe because a Native American tribe is not considered a citizen of any state. Accordingly, in most commercial disputes with tribes, the jurisdiction of the federal courts, may be difficult or impossible to obtain. Our Tetlin Lease contains a provision in which the Tetlin Village Council expressly waives its sovereign immunity to the limited extent necessary to permit judicial review in the courts in Alaska of certain issues affecting the Tetlin Lease.

Competition in the mineral exploration industry is intense, and the Company is smaller and has a much more limited operating history than most of its competitors.

We will compete with a broad range of mining companies with far greater resources in our exploration activities. Several mining companies concentrate drilling efforts on one type of mineral and thus may enjoy economies of scale and other efficiencies. However, our drilling strategies include both mining of gold ore and rare earth elements. As a result, we may not be able to compete with such companies. We will also compete for the equipment and labor required to operate and to develop our Properties if our exploration activities are successful. Most of our competitors have substantially greater financial resources than we do. These competitors may be able to evaluate, bid for and purchase a greater number of properties and prospects than we can. In addition, most of our competitors have been operating for a much longer time than we have and have substantially larger staffs. Gold and rare earth minerals processing requires complex and sophisticated processing technologies. We have no experience in the minerals processing industry.

We have only owned mining properties since the acquisition by our predecessors of the Properties in 2009 and 2010. Furthermore, no member of our management has any technical training or experience in minerals exploration or mining. Because of our limited operating history, we have limited insight into

 

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trends that may emerge and affect our business. We may make errors in predicting and reacting to relevant business trends and will be subject to the risks, uncertainties and difficulties frequently encountered by early-stage companies in evolving markets such as ours. We may not be able to compete effectively with more experienced companies or in such a highly competitive environment.

With respect to our rare earth mining activities, the Chinese have been exploring for, mining and producing rare earth minerals long before our entry into the industry, and therefore have far greater financial capabilities, as well as other processing technologies and resources to improve and expand their facilities. Additionally, the Chinese have enjoyed economies of scale and favorable domestic policies. We may not be able to overcome any strategic advantages our Chinese competitors may have over us.

The mining industry is historically a cyclical industry and market fluctuations in the prices of minerals could adversely affect our business.

Prices for minerals tend to fluctuate significantly in response to factors beyond our control. These factors include:

 

   

global economic conditions;

 

   

domestic and foreign tax policy;

 

   

the price of foreign imports of gold and rare earth elements, and products derived from the foregoing;

 

   

the cost of exploring for, producing and processing mineral ore;

 

   

available transportation capacity; and

 

   

the overall supply and demand for minerals.

Changes in commodity prices would directly affect revenues and may reduce the amount of funds available to reinvest in exploration and development activities. Reductions in mineral prices not only reduce revenues and profits, but could also reduce the quantities of reserves that are commercially recoverable. Declining metal prices may also impact our operations by requiring a reassessment of the commercial feasibility of any of our drilling programs.

Because our sole source of revenue will be the sale of gold and rare earth minerals if our exploration efforts are successful, changes in demand for, and the market price of, gold and rare earth minerals could significantly affect our profitability. The value and price of our common stock may be significantly affected by declines in the prices of gold and rare earth minerals and products.

Gold prices fluctuate widely and are affected by numerous factors beyond our control such as interest rates, exchange rates, inflation or deflation, fluctuation in the relative value of the United States dollar against foreign currencies on the world market, global and regional supply and demand for gold, and the political and economic conditions of gold producing countries throughout the world.

Demand for rare earth minerals may also be impacted by fluctuations in demand for downstream products incorporating rare earth minerals, including wind power technology and hybrid and electric vehicles. Lack of growth in the clean technology or automotive industries may adversely affect the demand for rare earth minerals. The success of our business also depends on the creation of new products that may incorporate rare earth minerals. A prolonged or significant economic contraction in the United States or worldwide could also put downward pressure on market prices of rare earth minerals and products.

 

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An increase in the global supply of minerals may adversely affect our business.

The pricing and demand for gold and rare earth minerals is affected by a number of factors beyond our control, including global economic conditions and the global supply and demand for gold and rare earth minerals and products. Increases in the amount of gold and rare earth minerals sold by our competitors may result in price reductions, reduced margins and we may not be able to compete effectively against current and future competitors.

We depend upon our management team and our consultant, Avalon.

The successful implementation of our business strategy and handling of other issues integral to the fulfillment of our business strategy depends, in part, on our management team, as well as our consultant, Avalon, and its geoscientists, geologists, engineers and other professionals engaged by Avalon. The loss of key members of our management team or the professional staff at Avalon could have a material adverse effect on our business, financial condition and operating results.

We do not have a loan facility with any financial institutions and as a result may not have sufficient capital to operate our business.

We currently do not have a loan facility with any financial institutions. The Company will have a limited amount of cash to fund its operations. Without additional funds to support the Company’s exploratory drilling activities, we may deplete our cash resources and cease operations.

Risks Related to Environmental Regulation

We are subject to complex laws and regulations, including environmental regulations that can adversely affect the cost, manner or feasibility of doing business.

Our exploratory mining operations are subject to numerous laws and regulations governing our operations and the discharge of materials into the environment, including the Federal Clean Water Act, Clean Air Act, Endangered Species Act, and the Comprehensive Environmental Response, Compensation, and Liability Act. Federal initiatives are often also administered and enforced through state agencies operating under parallel state statutes and regulations. Failure to comply with such rules and regulations could result in substantial penalties and have an adverse effect on us. These laws and regulations may:

 

   

Require that we obtain permits before commencing drilling;

 

   

Restrict the substances that can be released into the environment in connection with drilling activities; and

 

   

Limit or prohibit drilling activities on protected areas.

Under these laws and regulations, we could be liable for personal injury and clean-up costs and other environmental and property damages, as well as administrative, civil and criminal penalties. We maintain only limited insurance coverage for sudden and accidental environmental damages. Accordingly, we may be subject to liability, or we may be required to cease production from properties in the event of environmental damages. These laws and regulations have been changed frequently in the past. In general, these changes have imposed more stringent requirements that increase operating costs or require capital expenditures in order to remain in compliance. Any such changes could have an adverse effect on our business, financial condition and results of operations.

 

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We are subject to the Federal Mine Safety and Health Act of 1977 and regulations promulgated thereto, which impose stringent health and safety standards on numerous aspects of our operations.

Our mining operations in Alaska are subject to the Federal Mine Safety and Health Act of 1977, which impose stringent health and safety standards on numerous aspects of mineral extraction and processing operations, including the training of personnel, operating procedures, operating equipment and other matters. Our failure to comply with these standards could have a material adverse effect on our business, financial condition or otherwise impose significant restrictions on our ability to conduct mining operations.

We may be unable to obtain, maintain or renew permits necessary for the development or operation of any mining activities, which could have a material adverse effect on our business, financial condition or results of operation.

We must obtain a number of permits that impose strict conditions, requirements and obligations relating to various environmental and health and safety matters in connection with our current and future operations. To obtain certain permits, we may be required to conduct environmental studies, collect and present data to governmental authorities and the general public pertaining to the potential impact of our current and future operations upon the environment and take steps to avoid or mitigate the impact. The permitting rules are complex and have tended to become more stringent over time. Accordingly, permits required for our operations may not be issued, maintained or renewed in a timely fashion or at all, or may be conditioned upon restrictions which may impede our ability to operate efficiently. The failure to obtain certain permits or the adoption of more stringent permitting requirements could have a material adverse effect on our business, our plans of operation, and properties in that we may not be able to proceed with our exploration, development or mining programs.

Risks Related to This Offering and Ownership of Our Common Stock

Anti-takeover provisions of our certificate of incorporation, bylaws and Delaware law could adversely affect potential acquisition by third parties.

Our certificate of incorporation, bylaws and the Delaware General Corporation Law contain provisions that may discourage unsolicited takeover proposals. These provisions could have the effect of inhibiting fluctuations in the market price of our common stock that could result from actual or rumored takeover attempts, preventing changes in our management or limiting the price that investors may be willing to pay for shares of common stock. Among other things, these provisions:

 

   

Limit the personal liability of directors;

 

   

Limit the persons who may call special meetings of stockholders;

 

   

Prohibit stockholder action by written consent;

 

   

Establish advance notice requirements for nominations for election of the board of directors and for proposing matters to be acted on by stockholders at stockholder meetings;

 

   

Require us to indemnify directors and officers to the fullest extent permitted by applicable law; and

 

   

Impose restrictions on business combinations with some interested parties.

 

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The market for our common stock is limited.

There is currently no public market for our common stock. We anticipate the trading market for our common stock will be limited. Our common stock is or will be eligible for trading on the OTC Bulletin Board exchange, but is not eligible for trading on any regional securities exchange or the Nasdaq National Market. A more active trading market for our common stock may never develop, or if such a market develops, it may not be sustained.

We anticipate our common stock will be thinly traded following the Distribution.

Following the Distribution, we anticipate that approximately 1.6 million shares of our common stock will be outstanding and held by approximately 5,000 shareholders, with directors and officers owning or have voting control over approximately 22% of our common stock. Since we anticipate our common stock will be thinly traded after the Distribution, the purchase or sale of relatively small common stock positions may result in disproportionately large increases or decreases in the price of our common stock.

We do not intend to pay dividends in the foreseeable future.

For the foreseeable future, we intend to retain any earnings to finance the development of our business, and we do not anticipate paying any cash dividends on our common stock. Any future determination to pay dividends will be at the discretion of our Board of Directors and will be dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors considers relevant. Accordingly, investors must rely on sales of their common stock after any price appreciation, which may never occur, as the only way to realize a return on their investment.

 

Item 2. FINANCIAL INFORMATION.

This “Financial Information” section should be read in conjunction with Item 13 - “Financial Statements and Supplementary Data.”

Selected Historical Financial Data

The Company is a new company that, after the Distribution, expects to hold leases and mining claims for the exploration of gold deposits and associated minerals and rare earth elements. Because we have only recently begun operations, our historical financial information and operating data may not provide an accurate indication of our present financial condition or what the future results of operations are likely to be. The data should be read in conjunction with the financial statements and related notes and other financial information appearing elsewhere in this Registration Statement.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the related notes and other information included elsewhere in this Registration Statement.

Overview

The Company is a Houston-based, independent company which upon completion of the Distribution, expects to hold certain mineral property interests for the conduct of exploratory drilling activities in the State of Alaska. The Company has no operating history and its prospects are subject to the risk and uncertainties frequently encountered by companies in the early stages of development.

 

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The financial data and discussion of our financial condition and results of operations provided herein assume that the Distribution has occurred and the Company holds 100% of the Properties.

Liquidity and Capital Resources

The Company acquired certain interests in prospective gold and rare earth mineral properties located in the State of Alaska from Contango. The Company is in the initial stage of conducting exploration activities on its Properties, and our longer term liquidity could be impaired to the extent our exploration efforts are not successful in generating commercially viable mineral deposits on the Properties.

Liquidity. We expect our initial source of funding to be cash contributed by Contango. Pursuant to the Contribution Agreement, Contango is required to make a capital contribution in the amount of $3.5 million to fund costs and expenses of the Company. In the future, the Company may require additional funding from other funding sources, including possible equity offerings which could cause substantial dilution of our common stock, possible borrowings from financial institutions and possible offerings of debt securities. Any such debt financing would, however, increase our leverage and add to our need for cash to service such debt. Our ability to raise additional capital will depend on the results of our exploration program and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us.

Capital Budget. For the next twelve months, our capital expenditure budget calls for us to invest approximately $2 million for exploratory drilling and other exploration activities on our Gold Properties and on our REE Properties. Our 2011 exploration program will be conducted in three phases as follows:

 

   

Tetlin - Airborne Geophysics: Based on the results of geologic mapping, geochemical sampling and ground-based induced polarization studies completed on the Tetlin Properties in 2009 and 2010, a helicopter-supported airborne geophysical survey is planned for the Tetlin Properties in the spring of 2011. This program will include helicopter-supported airborne magnetics and multi-frequency electromagnetics over portions of the Tetlin Properties where previous exploratory activities have encountered gold and/or copper mineralization. The processed data will be evaluated by one or more geophysical contractors and mineral target prioritization will be completed. These data, in conjunction with previously gathered data, will serve as a basis to define and prioritize exploration drilling targets for follow-up in the summer and fall of 2011. Total estimated all-in cost of the program is budgeted at $500,000, including airborne data collection and reduction, data interpretation, logistical support and final prospect targeting.

 

   

Tetlin - Diamond Drilling: Previous work at Tetlin has defined several drilling targets. Airborne geophysical data will be used to expand the information on these high priority areas and prioritize the targets for exploration drilling. The exploration drilling program, to commence during the summer of 2011, will entail diamond core drilling to determine the depth extent and nature of gold and copper mineralization encountered by surface sampling. All cores will be logged, digitally photographed, split with a Haley core saw and one-half of each interval will be submitted for geochemical analysis. The remaining half core will be retained for future use. All cores will be assayed for gold by fire assay techniques with each sample also analyzed for a multi-element suite by inductively coupled plasma (“ICP”) methods using 4-acid digestion procedures. The estimated cost of this drilling program, including labor, assays, accommodations, heavy equipment rental, drilling, fuel and all consumables is $1 million.

 

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Rare Earth Element - Reconnaissance: A team of Avalon geologists and technicians will conduct first-pass reconnaissance exploration of the REE Properties. As of the date of the Distribution, no field work has been conducted on the Company’s REE Properties. The team will conduct geologic mapping, geochemical sampling and other tasks designed to determine the presence and magnitude of rare earth element mineralization on the REE Properties. All geochemical samples will be assayed for gold by fire assay techniques with each sample also analyzed for a multi-element suite, including the rare earth elements, by inductively coupled plasma-mass spectronomy or equivalent methods using 4-acid digestion procedures. The estimated cost of this program, including labor, assays, accommodations, claim maintenance fees, helicopter and fixed-wing support, fuel and all consumables is $500,000.

We will plan our 2012 and 2013 exploration programs based upon the results of our 2011 exploration program. As of the date of the Distribution, Contango has contributed $3,500,000 to the Company in order to fund our 2011 planned explorations, but the Company may need to raise additional debt and/or equity to fund future minerals exploration programs. There can be no assurance the Company will be able to raise such additional capital.

We will also incur general and administrative expenses, which may include legal fees, audit fees, consultant fees, insurance, and other operating expenses.

Results of Operations

The Company is a newly-formed company that has not commenced mining or producing commercially marketable minerals. To date, we have not generated any revenue from mineral sales or operations. We have no recurring source of revenue and our ability to continue as a going concern is dependent on our ability to raise capital to fund our future exploration and working capital requirements.

In the future, we may generate revenue from a combination of mineral sales and other payments resulting from any commercially recoverable minerals from our properties. We do not expect to generate revenue from mineral sales in the foreseeable future. If our Properties fail to contain any proven reserves, our ability to generate future revenue, and our results of operations and financial position, would be materially adversely affected. Other potential sources of cash, or relief of demand for cash, include external debt, the sale of shares of our stock, joint ventures, or alternative methods such as mergers or sale of our assets. No assurances can be given, however, that we will be able to obtain any of these potential sources of cash. We will need to generate significant revenues to achieve profitability and we may never do so.

Off-Balance Sheet Arrangements

Contractual Obligations

The Tetlin Lease provides for an initial term of ten (10) years, and so long after such initial term as we continue conducting exploration or mining operations on the Tetlin Properties. While the Company is required to spend $350,000 per year annually for ten years in exploration costs pursuant to the Tetlin Lease, the Company anticipates that exploration expenditures through the 2010 exploration program will satisfy this requirement because exploration funds spent in any year in excess of $350,000 are credited toward future years’ exploration cost requirements. The Tetlin Lease also provides that we will pay the Tetlin Village Council a production royalty of from 3% to 5% should we deliver to a purchaser on a commercial basis precious metals, non-precious metals or hydrocarbons derived from the Tetlin Properties.

 

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Critical Accounting Policies

The discussion and analysis of the Company’s financial condition and results of operations is based upon the financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We have identified below the policies that are of particular importance to the portrayal of our financial position and results of operations and which require the application of significant judgment by management. The Company analyzes its estimates, including those related to its mineral reserve estimates, on a periodic basis and bases its estimates on historical experience, independent third party engineers and various other assumptions that management believes to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the Company’s financial statements:

Mineral Property Interests, Exploration and Development Costs: Mineral property interests include interests in the exploration stage mineral properties acquired. The amount capitalized includes costs paid to acquire mineral property interest as well as the costs paid to the State of Alaska to obtain the lease rights. Exploration costs are expensed as incurred. Development costs are expensed as incurred until the Company obtains proven and probable reserves within its commercially minable properties. Costs of abandoned projects are charged to earnings upon abandonment. Properties determined to be impaired are written-down to the estimated fair value. The Company periodically evaluates whether events or changes in circumstances indicate that the carrying value of mineral property interests and related property, plant and equipment may not be recoverable.

Stock-Based Compensation. The Company applies the fair value based method to account for stock-based compensation. Under this method, we will measure and recognize compensation expense for all stock-based payments at fair value. Management is required to make assumptions including stock price volatility and employee turnover that are utilized to measure compensation expense. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model.

 

Item 3. PROPERTIES.

Upon completion of the Distribution, our Properties will be located in the State of Alaska. Our principal properties will consist of mineral leases and unpatented mining claims.

We believe that we hold good title to our Properties in accordance with standards generally accepted in the minerals industry. As is customary in both the gold and rare earths industry, we conduct only a perfunctory title examination at the time we acquire a property. Before we begin any mining activities, however, we will conduct a full title examination and perform curative work on any defects that we deem significant.

Lease with Tetlin Village Council

JEX entered into the Tetlin Lease with the Tetlin Village Council, effective as of June 15, 2008. An undivided 50% leasehold interest was sold to Contango Mining pursuant to the Joint Exploration Agreement dated as of September 29, 2009 in exchange for $1 million and a 1% overriding royalty

 

21


Table of Contents

interest. JEX transferred its remaining 50% leasehold interest to Contango Mining as of September 15, 2010 in exchange for an increased overriding royalty aggregating 3% pursuant to the Amended ORRI Agreement. The Tetlin Lease covers approximately 647,000 acres of land, provides for an initial term of ten (10) years, and so long after such initial term as we continue conducting exploration or mining operations on the Tetlin Properties. While the Company is required to spend $350,000 per year annually for ten years in exploration costs pursuant to the Tetlin Lease, the Company anticipates that exploration expenditures through the 2010 exploration program will satisfy this requirement because exploration funds spent in any year in excess of $350,000 are credited toward future years’ exploration cost requirements. The Tetlin Lease also provides that we will pay the Tetlin Village Council a production royalty should we deliver to a purchaser on a commercial basis precious metals, non-precious metals or hydrocarbons derived from the Tetlin Properties.

Gold Mining Claims

Our State of Alaska unpatented mining claims for gold and associated minerals is set forth in the tables below.

LAD CLAIMS

TRIPLE Z PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   Lad 1    160    18N    15E    3    Copper River    666952

2

   Lad 2    160    18N    15E    2    Copper River    666953

3

   Lad 3    160    18N    15E    10    Copper River    666954

4

   Lad 4    160    18N    15E    11    Copper River    666955

TOK CLAIMS

TETLIN PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   TOK 1    40    16N    13E    9    Copper River    614253

2

   TOK 2    40    16N    13E    9    Copper River    614254

3

   TOK 3    40    16N    13E    9    Copper River    614255

4

   TOK 4    40    16N    13E    9    Copper River    614256

5

   TOK 5    160    16N    13E    8    Copper River    614257

6

   TOK 6    160    16N    13E    9    Copper River    614258

7

   TOK 7    40    16N    13E    9    Copper River    614259

8

   TOK 8    40    16N    13E    9    Copper River    614260

9

   TOK 9    40    16N    13E    9    Copper River    614261

10

   TOK 10    40    16N    13E    9    Copper River    614262

11

   TOK 11    40    16N    13E    10    Copper River    614263

12

   TOK 12    40    16N    13E    10    Copper River    614264

13

   TOK 13    160    16N    12E    13    Copper River    614265

 

22


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

14

   TOK 14    160    16N    13E    18    Copper River    614266

15

   TOK 15    160    16N    13E    18    Copper River    614267

16

   TOK 16    160    16N    13E    17    Copper River    614268

17

   TOK 17    160    16N    13E    17    Copper River    614269

18

   TOK 18    160    16N    13E    16    Copper River    614270

19

   TOK 19    40    16N    13E    16    Copper River    614271

20

   TOK 20    40    16N    13E    16    Copper River    614272

21

   TOK 21    40    16N    13E    15    Copper River    614273

22

   TOK 22    40    16N    13E    16    Copper River    614274

23

   TOK 23    40    16N    13E    16    Copper River    614275

24

   TOK 24    40    16N    13E    15    Copper River    614276

25

   TOK 25    160    16N    12E    14    Copper River    614277

26

   TOK 26    160    16N    12E    13    Copper River    614278

27

   TOK 27    160    16N    12E    13    Copper River    614279

28

   TOK 28    160    16N    13E    18    Copper River    614280

29

   TOK 29    160    16N    13E    18    Copper River    614281

30

   TOK 30    160    16N    13E    17    Copper River    614282

31

   TOK 31    160    16N    13E    17    Copper River    614283

32

   TOK 32    160    16N    13E    16    Copper River    614284

33

   TOK 33    40    16N    13E    16    Copper River    614285

34

   TOK 34    40    16N    13E    16    Copper River    614286

35

   TOK 35    160    16N    12E    23    Copper River    614287

36

   TOK 36    160    16N    12E    23    Copper River    614288

37

   TOK 37    160    16N    12E    24    Copper River    614289

38

   TOK 38    160    16N    12E    24    Copper River    614290

39

   TOK 39    160    16N    13E    19    Copper River    614291

40

   TOK 40    160    16N    13E    19    Copper River    614292

41

   TOK 41    160    16N    13E    20    Copper River    614293

42

   TOK 42    160    16N    13E    20    Copper River    614294

43

   TOK 43    40    16N    13E    21    Copper River    614295

44

   TOK 44    40    16N    13E    21    Copper River    614296

45

   TOK 45    40    16N    13E    21    Copper River    614297

46

   TOK 46    40    16N    13E    21    Copper River    614298

47

   TOK 47    160    16N    12E    22    Copper River    614299

48

   TOK 48    160    16N    12E    23    Copper River    614300

49

   TOK 49    160    16N    12E    23    Copper River    614301

50

   TOK 50    160    16N    12E    24    Copper River    614302

51

   TOK 51    160    16N    12E    24    Copper River    614303

52

   TOK 52    160    16N    13E    19    Copper River    614304

53

   TOK 53    160    16N    13E    19    Copper River    614305

54

   TOK 54    160    16N    13E    20    Copper River    614306

55

   TOK 55    160    16N    13E    20    Copper River    614307

 

23


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

56

   TOK 56    40    16N    13E    21    Copper River    614308

57

   TOK 57    40    16N    13E    21    Copper River    614309

58

   TOK 58    40    16N    13E    21    Copper River    614310

59

   TOK 59    40    16N    13E    21    Copper River    614311

60

   TOK 60    40    16N    13E    21    Copper River    614312

61

   TOK 61    160    16N    12E    27    Copper River    614313

62

   TOK 62    160    16N    12E    27    Copper River    614314

63

   TOK 63    160    16N    12E    26    Copper River    614315

64

   TOK 64    160    16N    12E    26    Copper River    614316

65

   TOK 65    160    16N    12E    25    Copper River    614317

66

   TOK 66    40    16N    12E    25    Copper River    614318

67

   TOK 67    40    16N    12E    25    Copper River    614319

68

   TOK 68    40    16N    12E    25    Copper River    614320

69

   TOK 69    40    16N    12E    25    Copper River    614321

70

   TOK 70    40    16N    13E    30    Copper River    614322

71

   TOK 71    40    16N    13E    30    Copper River    614323

72

   TOK 72    40    16N    13E    30    Copper River    614324

73

   TOK 73    40    16N    13E    30    Copper River    614325

74

   TOK 74    160    16N    13E    30    Copper River    614326

75

   TOK 75    160    16N    13E    29    Copper River    614327

76

   TOK 76    160    16N    13E    29    Copper River    614328

77

   TOK 77    40    16N    13E    28    Copper River    614329

78

   TOK 78    40    16N    13E    28    Copper River    614330

79

   TOK 79    40    16N    13E    28    Copper River    614331

80

   TOK 80    40    16N    13E    28    Copper River    614332

81

   TOK 81    40    16N    13E    28    Copper River    614333

82

   TOK 82    40    16N    13E    28    Copper River    614334

83

   TOK 83    160    16N    12E    28    Copper River    614335

84

   TOK 84    160    16N    12E    27    Copper River    614336

85

   TOK 85    160    16N    12E    27    Copper River    614337

86

   TOK 86    160    16N    12E    26    Copper River    614338

87

   TOK 87    160    16N    12E    26    Copper River    614339

88

   TOK 88    160    16N    12E    25    Copper River    614340

89

   TOK 89    40    16N    12E    25    Copper River    614341

90

   TOK 90    40    16N    12E    25    Copper River    614342

91

   TOK 91    40    16N    13E    29    Copper River    614343

92

   TOK 92    40    16N    13E    29    Copper River    614344

93

   TOK 93    40    16N    13E    29    Copper River    614345

94

   TOK 94    40    16N    13E    29    Copper River    614346

95

   TOK 95    40    16N    13E    28    Copper River    614347

96

   TOK 96    160    16N    12E    33    Copper River    614348

97

   TOK 97    160    16N    12E    33    Copper River    614349

 

24


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

98

   TOK 98    160    16N    12E    34    Copper River    614350

99

   TOK 99    40    16N    12E    34    Copper River    614351

100

   TOK 100    40    16N    12E    34    Copper River    614352

101

   TOK 101    40    16N    12E    34    Copper River    614353

102

   TOK 102    40    16N    12E    34    Copper River    614354

103

   TOK 103    40    16N    12E    35    Copper River    614355

104

   TOK 104    40    16N    12E    35    Copper River    614356

105

   TOK 105    40    16N    12E    35    Copper River    614357

106

   TOK 106    40    16N    12E    35    Copper River    614358

107

   TOK 107    40    16N    12E    35    Copper River    614359

108

   TOK 108    40    16N    12E    35    Copper River    614360

109

   TOK 109    40    16N    12E    35    Copper River    614361

110

   TOK 110    40    16N    12E    36    Copper River    614362

111

   TOK 111    40    16N    12E    36    Copper River    614363

112

   TOK 112    40    16N    12E    36    Copper River    614364

113

   TOK 113    40    16N    12E    36    Copper River    614365

114

   TOK 114    160    16N    12E    32    Copper River    614366

115

   TOK 115    160    16N    12E    32    Copper River    614367

116

   TOK 116    160    16N    12E    33    Copper River    614368

117

   TOK 117    160    16N    12E    33    Copper River    614369

118

   TOK 118    40    16N    12E    34    Copper River    614370

119

   TOK 119    40    16N    12E    34    Copper River    614371

120

   TOK 120    40    16N    12E    34    Copper River    614372

121

   TOK 121    40    16N    12E    34    Copper River    614373

122

   TOK 122    40    16N    12E    34    Copper River    614374

REE Mining Claims

Our State of Alaska and Federal mining claims for rare earth elements are set forth in the tables below.

ALT CLAIMS

ALATNA PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   ALT 1    160    28N    23W    5    Fairbanks    701674

2

   ALT 2    160    28N    23W    5    Fairbanks    701675

3

   ALT 3    160    28N    23W    4    Fairbanks    701676

4

   ALT 4    160    28N    23W    4    Fairbanks    701677

5

   ALT 5    160    28N    23W    3    Fairbanks    701678

6

   ALT 6    160    28N    23W    3    Fairbanks    701679

7

   ALT 7    160    28N    23W    2    Fairbanks    701680

8

   ALT 8    160    28N    23W    8    Fairbanks    701681

 

25


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

9

   ALT 9    160    28N    23W    8    Fairbanks    701682

10

   ALT 10    160    28N    23W    9    Fairbanks    701683

11

   ALT 11    160    28N    23W    9    Fairbanks    701684

12

   ALT 12    160    28N    23W    10    Fairbanks    701685

13

   ALT 13    160    28N    23W    10    Fairbanks    701686

14

   ALT 14    160    28N    23W    11    Fairbanks    701687

15

   ALT 15    160    28N    23W    8    Fairbanks    701688

16

   ALT 16    160    28N    23W    8    Fairbanks    701689

17

   ALT 17    160    28N    23W    9    Fairbanks    701690

18

   ALT 18    160    28N    23W    9    Fairbanks    701691

19

   ALT 19    160    28N    23W    10    Fairbanks    701692

20

   ALT 20    160    28N    23W    10    Fairbanks    701693

21

   ALT 21    160    28N    23W    11    Fairbanks    701694

22

   ALT 22    160    28N    23W    17    Fairbanks    701695

23

   ALT 23    160    28N    23W    17    Fairbanks    701696

24

   ALT 24    160    28N    23W    16    Fairbanks    701697

25

   ALT 25    160    28N    23W    16    Fairbanks    701698

26

   ALT 26    160    28N    23W    15    Fairbanks    701699

27

   ALT 27    160    28N    23W    15    Fairbanks    701700

28

   ALT 28    160    28N    23W    14    Fairbanks    701701

29

   ALT 29    160    28N    23W    17    Fairbanks    701702

30

   ALT 30    160    28N    23W    17    Fairbanks    701703

31

   ALT 31    160    28N    23W    16    Fairbanks    701704

32

   ALT 32    160    28N    23W    16    Fairbanks    701705

33

   ALT 33    160    28N    23W    15    Fairbanks    701706

34

   ALT 34    160    28N    23W    15    Fairbanks    701707

35

   ALT 35    160    28N    23W    14    Fairbanks    701708

36

   ALT 36    160    28N    23W    20    Fairbanks    701709

37

   ALT 37    160    28N    23W    20    Fairbanks    701710

38

   ALT 38    160    28N    23W    21    Fairbanks    701711

39

   ALT 39    160    28N    23W    21    Fairbanks    701712

40

   ALT 40    160    28N    23W    22    Fairbanks    701713

41

   ALT 41    160    28N    23W    22    Fairbanks    701714

42

   ALT 42    160    28N    23W    23    Fairbanks    701715

43

   ALT 43    160    28N    24W    33    Fairbanks    701716

44

   ALT 44    160    28N    24W    33    Fairbanks    701717

45

   ALT 45    160    28N    24W    34    Fairbanks    701718

46

   ALT 46    160    28N    24W    34    Fairbanks    701719

47

   ALT 47    160    28N    24W    35    Fairbanks    701720

48

   ALT 48    160    28N    24W    35    Fairbanks    701721

49

   ALT 49    160    28N    24W    36    Fairbanks    701722

50

   ALT 50    160    27N    25W    2    Fairbanks    701723

 

26


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

51

   ALT 51    160    27N    25W    2    Fairbanks    701724

52

   ALT 52    160    27N    25W    1    Fairbanks    701725

53

   ALT 53    160    27N    25W    1    Fairbanks    701726

54

   ALT 54    160    27N    24W    6    Fairbanks    701727

55

   ALT 55    160    27N    24W    6    Fairbanks    701728

56

   ALT 56    160    27N    24W    5    Fairbanks    701729

57

   ALT 57    160    27N    24W    5    Fairbanks    701730

58

   ALT 58    160    27N    24W    4    Fairbanks    701731

59

   ALT 59    160    27N    24W    4    Fairbanks    701732

60

   ALT 60    160    27N    24W    3    Fairbanks    701733

61

   ALT 61    160    27N    24W    3    Fairbanks    701734

62

   ALT 62    160    27N    24W    2    Fairbanks    701735

63

   ALT 63    160    27N    24W    2    Fairbanks    701736

64

   ALT 64    160    27N    24W    1    Fairbanks    701737

65

   ALT 65    160    27N    25W    2    Fairbanks    701738

66

   ALT 66    160    27N    25W    2    Fairbanks    701739

67

   ALT 67    160    27N    25W    1    Fairbanks    701740

68

   ALT 68    160    27N    24W    6    Fairbanks    701741

69

   ALT 69    160    27N    24W    5    Fairbanks    701742

70

   ALT 70    160    27N    24W    5    Fairbanks    701743

71

   ALT 71    160    27N    24W    4    Fairbanks    701744

72

   ALT 72    160    27N    24W    4    Fairbanks    701745

73

   ALT 73    160    27N    24W    3    Fairbanks    701746

74

   ALT 74    160    27N    24W    3    Fairbanks    701747

75

   ALT 75    160    27N    24W    2    Fairbanks    701748

76

   ALT 76    160    27N    24W    2    Fairbanks    701749

77

   ALT 77    160    27N    24W    1    Fairbanks    701750

78

   ALT 78    160    27N    25W    11    Fairbanks    701751

79

   ALT 79    160    27N    25W    11    Fairbanks    701752

80

   ALT 80    160    27N    25W    12    Fairbanks    701753

81

   ALT 81    160    27N    24W    9    Fairbanks    701754

82

   ALT 82    160    27N    24W    10    Fairbanks    701755

83

   ALT 83    160    27N    24W    10    Fairbanks    701756

84

   ALT 84    160    27N    24W    11    Fairbanks    701757

85

   ALT 85    160    27N    24W    11    Fairbanks    701758

86

   ALT 86    160    27N    24W    12    Fairbanks    701759

87

   ALT 87    160    27N    24W    10    Fairbanks    701760

88

   ALT 88    160    27N    24W    10    Fairbanks    701761

89

   ALT 89    160    27N    24W    11    Fairbanks    701762

90

   ALT 90    160    27N    24W    11    Fairbanks    701763

91

   ALT 91    160    27N    24W    12    Fairbanks    701764

92

   ALT 92    160    21N    26E    16    Kateel River    701765

 

27


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

93

   ALT 93    160    21N    26E    16    Kateel River    701766

94

   ALT 94    160    21N    26E    15    Kateel River    701767

95

   ALT 95    160    21N    26E    15    Kateel River    701768

96

   ALT 96    160    21N    26E    14    Kateel River    701769

97

   ALT 97    160    21N    26E    14    Kateel River    701770

98

   ALT 98    160    21N    26E    21    Kateel River    701771

99

   ALT 99    160    21N    26E    21    Kateel River    701772

100

   ALT 100    160    21N    26E    22    Kateel River    701773

101

   ALT 101    160    21N    26E    22    Kateel River    701774

102

   ALT 102    160    21N    26E    23    Kateel River    701775

103

   ALT 103    160    21N    26E    23    Kateel River    701776

104

   ALT 104    160    21N    26E    21    Kateel River    701777

105

   ALT 105    160    21N    26E    21    Kateel River    701778

106

   ALT 106    160    21N    26E    22    Kateel River    701779

107

   ALT 107    160    21N    26E    22    Kateel River    701780

108

   ALT 108    160    21N    26E    23    Kateel River    701781

109

   ALT 109    160    21N    26E    23    Kateel River    701782

110

   ALT 110    160    21N    26E    28    Kateel River    701783

111

   ALT 111    160    21N    26E    28    Kateel River    701784

112

   ALT 112    160    21N    26E    27    Kateel River    701785

113

   ALT 113    160    21N    26E    27    Kateel River    701786

114

   ALT 114    160    21N    26E    26    Kateel River    701787

115

   ALT 115    160    21N    26E    26    Kateel River    701788

116

   ALT 116    160    21N    26E    28    Kateel River    701789

117

   ALT 117    160    21N    26E    28    Kateel River    701790

118

   ALT 118    160    21N    26E    27    Kateel River    701791

119

   ALT 119    160    21N    26E    27    Kateel River    701792

120

   ALT 120    160    21N    26E    26    Kateel River    701793

121

   ALT 121    160    21N    26E    26    Kateel River    701794

122

   ALT 122    160    21N    26E    33    Kateel River    701795

123

   ALT 123    160    21N    26E    33    Kateel River    701796

124

   ALT 124    160    21N    26E    34    Kateel River    701797

125

   ALT 125    160    21N    26E    34    Kateel River    701798

126

   ALT 126    160    21N    26E    35    Kateel River    701799

127

   ALT 127    160    21N    26E    35    Kateel River    701800

 

28


Table of Contents

 

SPK CLAIMS

SPOOKY PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon and Rampart Recording Districts, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SPK 1    160    11N    18W    27    Fairbanks    615106

2

   SPK 2    160    11N    18W    27    Fairbanks    615107

3

   SPK 3    160    11N    18W    26    Fairbanks    615108

4

   SPK 4    160    11N    18W    26    Fairbanks    615109

5

   SPK 5    160    11N    18W    25    Fairbanks    615110

6

   SPK 6    160    11N    18W    25    Fairbanks    615111

7

   SPK 7    160    11N    17W    30    Fairbanks    615112

8

   SPK 8    160    11N    17W    30    Fairbanks    615113

9

   SPK 9    160    11N    17W    29    Fairbanks    615114

10

   SPK 10    160    11N    17W    29    Fairbanks    615115

11

   SPK 11    160    11N    17W    28    Fairbanks    615116

12

   SPK 12    160    11N    17W    28    Fairbanks    615117

13

   SPK 13    160    11N    18W    27    Fairbanks    615118

14

   SPK 14    160    11N    18W    27    Fairbanks    615119

15

   SPK 15    160    11N    18W    26    Fairbanks    615120

16

   SPK 16    160    11N    18W    26    Fairbanks    615121

17

   SPK 17    160    11N    18W    25    Fairbanks    615122

18

   SPK 18    160    11N    18W    25    Fairbanks    615123

19

   SPK 19    160    11N    17W    30    Fairbanks    615124

20

   SPK 20    160    11N    17W    30    Fairbanks    615125

21

   SPK 21    160    11N    17W    29    Fairbanks    615126

22

   SPK 22    160    11N    17W    29    Fairbanks    615127

23

   SPK 23    160    11N    17W    28    Fairbanks    615128

24

   SPK 24    160    11N    17W    28    Fairbanks    615129

25

   SPK 25    160    11N    18W    32    Fairbanks    615130

26

   SPK 26    160    11N    18W    32    Fairbanks    615131

27

   SPK 27    160    11N    18W    33    Fairbanks    615132

28

   SPK 28    160    11N    18W    33    Fairbanks    615133

29

   SPK 29    160    11N    18W    34    Fairbanks    615134

30

   SPK 30    160    11N    18W    34    Fairbanks    615135

31

   SPK 31    160    11N    18W    35    Fairbanks    615136

32

   SPK 32    160    11N    18W    35    Fairbanks    615137

33

   SPK 33    160    11N    18W    36    Fairbanks    615138

34

   SPK 34    160    11N    18W    36    Fairbanks    615139

35

   SPK 35    160    11N    17W    31    Fairbanks    615140

36

   SPK 36    160    11N    17W    31    Fairbanks    615141

37

   SPK 37    160    11N    17W    32    Fairbanks    615142

38

   SPK 38    160    11N    17W    32    Fairbanks    615143

 

29


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

39

   SPK 39    160    11N    17W    33    Fairbanks    615144

40

   SPK 40    160    11N    17W    33    Fairbanks    615145

41

   SPK 41    160    11N    17W    34    Fairbanks    615146

42

   SPK 42    160    11N    18W    32    Fairbanks    615147

43

   SPK 43    160    11N    18W    32    Fairbanks    615148

44

   SPK 44    160    11N    18W    33    Fairbanks    615149

45

   SPK 45    160    11N    18W    33    Fairbanks    615150

46

   SPK 46    160    11N    18W    34    Fairbanks    615151

47

   SPK 47    160    11N    18W    34    Fairbanks    615152

48

   SPK 48    160    11N    18W    35    Fairbanks    615153

49

   SPK 49    160    11N    18W    35    Fairbanks    615154

50

   SPK 50    160    11N    18W    36    Fairbanks    615155

51

   SPK 51    160    11N    18W    36    Fairbanks    615156

52

   SPK 52    160    11N    17W    31    Fairbanks    615157

53

   SPK 53    160    11N    17W    31    Fairbanks    615158

54

   SPK 54    160    11N    17W    32    Fairbanks    615159

55

   SPK 55    160    11N    17W    32    Fairbanks    615160

56

   SPK 56    160    11N    17W    33    Fairbanks    615161

57

   SPK 57    160    11N    17W    33    Fairbanks    615162

58

   SPK 58    160    11N    17W    34    Fairbanks    615163

59

   SPK 59    160    10N    18W    5    Fairbanks    615164

60

   SPK 60    160    10N    18W    5    Fairbanks    615165

61

   SPK 61    160    10N    18W    4    Fairbanks    615166

62

   SPK 62    160    10N    18W    4    Fairbanks    615167

63

   SPK 63    160    10N    18W    3    Fairbanks    615168

64

   SPK 64    160    10N    18W    3    Fairbanks    615169

65

   SPK 65    160    10N    18W    2    Fairbanks    615170

66

   SPK 66    160    10N    18W    2    Fairbanks    615171

67

   SPK 67    160    10N    18W    1    Fairbanks    615172

68

   SPK 68    160    10N    18W    1    Fairbanks    615173

69

   SPK 69    160    10N    17W    6    Fairbanks    615174

70

   SPK 70    160    10N    17W    6    Fairbanks    615175

71

   SPK 71    160    10N    17W    5    Fairbanks    615176

72

   SPK 72    160    10N    17W    5    Fairbanks    615177

73

   SPK 73    160    10N    17W    4    Fairbanks    615178

74

   SPK 74    160    10N    17W    4    Fairbanks    615179

75

   SPK 75    160    10N    17W    3    Fairbanks    615180

76

   SPK 76    160    10N    17W    3    Fairbanks    615181

77

   SPK 77    160    10N    18W    5    Fairbanks    615182

78

   SPK 78    160    10N    18W    5    Fairbanks    615183

79

   SPK 79    160    10N    18W    4    Fairbanks    615184

80

   SPK 80    160    10N    18W    4    Fairbanks    615185

 

30


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

81

   SPK 81    160    10N    18W    3    Fairbanks    615186

82

   SPK 82    160    10N    18W    3    Fairbanks    615187

83

   SPK 83    160    10N    18W    2    Fairbanks    615188

84

   SPK 84    160    10N    18W    2    Fairbanks    615189

85

   SPK 85    160    10N    18W    1    Fairbanks    615190

86

   SPK 86    160    10N    18W    1    Fairbanks    615191

87

   SPK 87    160    10N    17W    6    Fairbanks    615192

88

   SPK 88    160    10N    17W    6    Fairbanks    615193

89

   SPK 89    160    10N    17W    5    Fairbanks    615194

90

   SPK 90    160    10N    17W    5    Fairbanks    615195

91

   SPK 91    160    10N    17W    4    Fairbanks    615196

92

   SPK 92    160    10N    17W    4    Fairbanks    615197

93

   SPK 93    160    10N    17W    3    Fairbanks    615198

94

   SPK 94    160    10N    17W    3    Fairbanks    615199

95

   SPK 95    160    10N    18W    8    Fairbanks    615200

96

   SPK 96    160    10N    18W    8    Fairbanks    615201

97

   SPK 97    160    10N    18W    9    Fairbanks    615202

98

   SPK 98    160    10N    18W    9    Fairbanks    615203

99

   SPK 99    160    10N    18W    10    Fairbanks    615204

100

   SPK 100    160    10N    18W    10    Fairbanks    615205

101

   SPK 101    160    10N    18W    11    Fairbanks    615206

102

   SPK 102    160    10N    18W    11    Fairbanks    615207

103

   SPK 103    160    10N    18W    12    Fairbanks    615208

104

   SPK 104    160    10N    18W    12    Fairbanks    615209

105

   SPK 105    160    10N    17W    7    Fairbanks    615210

106

   SPK 106    160    10N    17W    7    Fairbanks    615211

107

   SPK 107    160    10N    17W    8    Fairbanks    615212

108

   SPK 108    160    10N    17W    8    Fairbanks    615213

109

   SPK 109    160    10N    17W    9    Fairbanks    615214

110

   SPK 110    160    10N    17W    9    Fairbanks    615215

111

   SPK 111    160    10N    17W    10    Fairbanks    615216

112

   SPK 112    160    10N    17W    10    Fairbanks    615217

113

   SPK 113    160    10N    18W    8    Fairbanks    615218

114

   SPK 114    160    10N    18W    8    Fairbanks    615219

115

   SPK 115    160    10N    18W    9    Fairbanks    615220

116

   SPK 116    160    10N    18W    9    Fairbanks    615221

117

   SPK 117    160    10N    18W    10    Fairbanks    615222

118

   SPK 118    160    10N    18W    10    Fairbanks    615223

119

   SPK 119    160    10N    18W    11    Fairbanks    615224

120

   SPK 120    160    10N    18W    11    Fairbanks    615225

121

   SPK 121    160    10N    18W    12    Fairbanks    615226

122

   SPK 122    160    10N    18W    12    Fairbanks    615227

 

31


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

123

   SPK 123    160    10N    17W    7    Fairbanks    615228

124

   SPK 124    160    10N    17W    7    Fairbanks    615229

125

   SPK 125    160    10N    17W    8    Fairbanks    615230

126

   SPK 126    160    10N    17W    8    Fairbanks    615231

127

   SPK 127    160    10N    17W    9    Fairbanks    615232

128

   SPK 128    160    10N    17W    9    Fairbanks    615233

129

   SPK 129    160    10N    17W    10    Fairbanks    615234

130

   SPK 130    160    10N    17W    10    Fairbanks    615235

131

   SPK 131    160    10N    18W    17    Fairbanks    615236

132

   SPK 132    160    10N    18W    17    Fairbanks    615237

133

   SPK 133    160    10N    18W    16    Fairbanks    615238

134

   SPK 134    160    10N    18W    16    Fairbanks    615239

135

   SPK 135    160    10N    18W    15    Fairbanks    615240

136

   SPK 136    160    10N    18W    15    Fairbanks    615241

137

   SPK 137    160    10N    18W    14    Fairbanks    615242

138

   SPK 138    160    10N    18W    14    Fairbanks    615243

139

   SPK 139    160    10N    18W    13    Fairbanks    615244

140

   SPK 140    160    10N    18W    13    Fairbanks    615245

141

   SPK 141    160    10N    17W    18    Fairbanks    615246

142

   SPK 142    160    10N    17W    18    Fairbanks    615247

143

   SPK 143    160    10N    17W    17    Fairbanks    615248

144

   SPK 144    160    10N    17W    17    Fairbanks    615249

145

   SPK 145    160    10N    17W    16    Fairbanks    615250

146

   SPK 146    160    10N    17W    16    Fairbanks    615251

147

   SPK 147    160    10N    17W    15    Fairbanks    615252

148

   SPK 148    160    10N    17W    15    Fairbanks    615253

149

   SPK 149    160    10N    18W    17    Fairbanks    615254

150

   SPK 150    160    10N    18W    17    Fairbanks    615255

151

   SPK 151    160    10N    18W    16    Fairbanks    615256

152

   SPK 152    160    10N    18W    16    Fairbanks    615257

153

   SPK 153    160    10N    18W    15    Fairbanks    615258

154

   SPK 154    160    10N    18W    15    Fairbanks    615259

155

   SPK 155    160    10N    18W    14    Fairbanks    615260

156

   SPK 156    160    10N    18W    14    Fairbanks    615261

157

   SPK 157    160    10N    18W    13    Fairbanks    615262

158

   SPK 158    160    10N    18W    13    Fairbanks    615263

159

   SPK 159    160    10N    17W    18    Fairbanks    615264

160

   SPK 160    160    10N    17W    18    Fairbanks    615265

161

   SPK 161    160    10N    17W    17    Fairbanks    615266

162

   SPK 162    160    10N    17W    17    Fairbanks    615267

163

   SPK 163    160    10N    17W    16    Fairbanks    615268

164

   SPK 164    160    10N    17W    16    Fairbanks    615269

 

32


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

165

   SPK 165    160    10N    17W    15    Fairbanks    615270

166

   SPK 166    160    10N    17W    15    Fairbanks    615271

WLF CLAIMS

WOLF PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   WLF 1    160    2S    23E    7    Kateel River    701959

2

   WLF 2    160    2S    23E    7    Kateel River    701960

3

   WLF 3    160    2S    23E    8    Kateel River    701961

4

   WLF 4    160    2S    23E    8    Kateel River    701962

5

   WLF 5    160    2S    23E    9    Kateel River    701963

6

   WLF 6    160    2S    23E    9    Kateel River    701964

7

   WLF 7    160    2S    23E    10    Kateel River    701965

8

   WLF 8    160    2S    23E    10    Kateel River    701966

9

   WLF 9    160    2S    23E    11    Kateel River    701967

10

   WLF 10    160    2S    23E    11    Kateel River    701968

11

   WLF 11    160    2S    23E    12    Kateel River    701969

12

   WLF 12    160    2S    23E    12    Kateel River    701970

13

   WLF 13    160    2S    24E    7    Kateel River    701971

14

   WLF 14    160    2S    24E    7    Kateel River    701972

15

   WLF 15    160    2S    24E    8    Kateel River    701973

16

   WLF 16    160    2S    24E    8    Kateel River    701974

17

   WLF 17    160    2S    23E    7    Kateel River    701975

18

   WLF 18    160    2S    23E    7    Kateel River    701976

19

   WLF 19    160    2S    23E    8    Kateel River    701977

20

   WLF 20    160    2S    23E    8    Kateel River    701978

21

   WLF 21    160    2S    23E    9    Kateel River    701979

22

   WLF 22    160    2S    23E    9    Kateel River    701980

23

   WLF 23    160    2S    23E    10    Kateel River    701981

24

   WLF 24    160    2S    23E    10    Kateel River    701982

25

   WLF 25    160    2S    23E    11    Kateel River    701983

26

   WLF 26    160    2S    23E    11    Kateel River    701984

27

   WLF 27    160    2S    23E    12    Kateel River    701985

28

   WLF 28    160    2S    23E    12    Kateel River    701986

29

   WLF 29    160    2S    24E    7    Kateel River    701987

30

   WLF 30    160    2S    24E    7    Kateel River    701988

31

   WLF 31    160    2S    24E    8    Kateel River    701989

32

   WLF 32    160    2S    24E    8    Kateel River    701990

33

   WLF 33    160    2S    23E    18    Kateel River    701991

34

   WLF 34    160    2S    23E    18    Kateel River    701992

 

33


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

35

   WLF 35    160    2S    23E    17    Kateel River    701993

36

   WLF 36    160    2S    23E    17    Kateel River    701994

37

   WLF 37    160    2S    23E    16    Kateel River    701995

38

   WLF 38    160    2S    23E    16    Kateel River    701996

39

   WLF 39    160    2S    23E    15    Kateel River    701997

40

   WLF 40    160    2S    23E    15    Kateel River    701998

41

   WLF 41    160    2S    23E    14    Kateel River    701999

42

   WLF 42    160    2S    23E    14    Kateel River    702000

43

   WLF 43    160    2S    23E    13    Kateel River    702001

44

   WLF 44    160    2S    23E    13    Kateel River    702002

45

   WLF 45    160    2S    24E    18    Kateel River    702003

46

   WLF 46    160    2S    24E    18    Kateel River    702004

47

   WLF 47    160    2S    24E    17    Kateel River    702005

48

   WLF 48    160    2S    24E    17    Kateel River    702006

49

   WLF 49    160    2S    23E    18    Kateel River    702007

50

   WLF 50    160    2S    23E    18    Kateel River    702008

51

   WLF 51    160    2S    23E    17    Kateel River    702009

52

   WLF 52    160    2S    23E    17    Kateel River    702010

53

   WLF 53    160    2S    23E    16    Kateel River    702011

54

   WLF 54    160    2S    23E    16    Kateel River    702012

55

   WLF 55    160    2S    23E    15    Kateel River    702013

56

   WLF 56    160    2S    23E    15    Kateel River    702014

57

   WLF 57    160    2S    23E    14    Kateel River    702015

58

   WLF 58    160    2S    23E    14    Kateel River    702016

59

   WLF 59    160    2S    23E    13    Kateel River    702017

60

   WLF 60    160    2S    23E    13    Kateel River    702018

61

   WLF 61    160    2S    24E    18    Kateel River    702019

62

   WLF 62    160    2S    24E    18    Kateel River    702020

63

   WLF 63    160    2S    24E    17    Kateel River    702021

64

   WLF 64    160    2S    24E    17    Kateel River    702022

65

   WLF 65    160    2S    23E    19    Kateel River    702023

66

   WLF 66    160    2S    23E    19    Kateel River    702024

67

   WLF 67    160    2S    23E    20    Kateel River    702025

68

   WLF 68    160    2S    23E    20    Kateel River    702026

69

   WLF 69    160    2S    23E    21    Kateel River    702027

70

   WLF 70    160    2S    23E    21    Kateel River    702028

71

   WLF 71    160    2S    23E    22    Kateel River    702029

72

   WLF 72    160    2S    23E    22    Kateel River    702030

73

   WLF 73    160    2S    23E    23    Kateel River    702031

74

   WLF 74    160    2S    23E    23    Kateel River    702032

75

   WLF 75    160    2S    23E    24    Kateel River    702033

76

   WLF 76    160    2S    23E    24    Kateel River    702034

 

34


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

77

   WLF 77    160    2S    24E    19    Kateel River    702035

78

   WLF 78    160    2S    24E    19    Kateel River    702036

79

   WLF 79    160    2S    24E    20    Kateel River    702037

80

   WLF 80    160    2S    24E    20    Kateel River    702038

81

   WLF 81    160    2S    23E    19    Kateel River    702039

82

   WLF 82    160    2S    23E    19    Kateel River    702040

83

   WLF 83    160    2S    23E    20    Kateel River    702041

84

   WLF 84    160    2S    23E    20    Kateel River    702042

85

   WLF 85    160    2S    23E    21    Kateel River    702043

86

   WLF 86    160    2S    23E    21    Kateel River    702044

87

   WLF 87    160    2S    23E    22    Kateel River    702045

88

   WLF 88    160    2S    23E    22    Kateel River    702046

89

   WLF 89    160    2S    23E    23    Kateel River    702047

90

   WLF 90    160    2S    23E    23    Kateel River    702048

91

   WLF 91    160    2S    23E    24    Kateel River    702049

92

   WLF 92    160    2S    23E    24    Kateel River    702050

93

   WLF 93    160    2S    24E    19    Kateel River    702051

94

   WLF 94    160    2S    24E    19    Kateel River    702052

95

   WLF 95    160    2S    24E    20    Kateel River    702053

96

   WLF 96    160    2S    24E    20    Kateel River    702054

97

   WLF 97    160    2S    23E    30    Kateel River    702055

98

   WLF 98    160    2S    23E    30    Kateel River    702056

99

   WLF 99    160    2S    23E    29    Kateel River    702057

100

   WLF 100    160    2S    23E    29    Kateel River    702058

101

   WLF 101    160    2S    23E    28    Kateel River    702059

102

   WLF 102    160    2S    23E    28    Kateel River    702060

103

   WLF 103    160    2S    23E    27    Kateel River    702061

104

   WLF 104    160    2S    23E    27    Kateel River    702062

105

   WLF 105    160    2S    23E    26    Kateel River    702063

106

   WLF 106    160    2S    23E    26    Kateel River    702064

107

   WLF 107    160    2S    23E    25    Kateel River    702065

108

   WLF 108    160    2S    23E    25    Kateel River    702066

109

   WLF 109    160    2S    24E    30    Kateel River    702067

110

   WLF 110    160    2S    24E    30    Kateel River    702068

111

   WLF 111    160    2S    24E    29    Kateel River    702069

112

   WLF 112    160    2S    24E    29    Kateel River    702070

113

   WLF 113    160    2S    23E    30    Kateel River    702071

114

   WLF 114    160    2S    23E    30    Kateel River    702072

115

   WLF 115    160    2S    23E    29    Kateel River    702073

116

   WLF 116    160    2S    23E    29    Kateel River    702074

117

   WLF 117    160    2S    23E    28    Kateel River    702075

118

   WLF 118    160    2S    23E    28    Kateel River    702076

 

35


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

119

   WLF 119    160    2S    23E    27    Kateel River    702077

120

   WLF 120    160    2S    23E    27    Kateel River    702078

121

   WLF 121    160    2S    23E    26    Kateel River    702079

122

   WLF 122    160    2S    23E    26    Kateel River    702080

123

   WLF 123    160    2S    23E    25    Kateel River    702081

124

   WLF 124    160    2S    23E    25    Kateel River    702082

125

   WLF 125    160    2S    24E    30    Kateel River    702083

126

   WLF 126    160    2S    24E    30    Kateel River    702084

127

   WLF 127    160    2S    24E    29    Kateel River    702085

128

   WLF 128    160    2S    24E    29    Kateel River    702086

129

   WLF 129    160    2S    23E    31    Kateel River    702087

130

   WLF 130    160    2S    23E    31    Kateel River    702088

131

   WLF 131    160    2S    23E    32    Kateel River    702089

132

   WLF 132    160    2S    23E    32    Kateel River    702090

133

   WLF 133    160    2S    23E    33    Kateel River    702091

134

   WLF 134    160    2S    23E    33    Kateel River    702092

135

   WLF 135    160    2S    23E    34    Kateel River    702093

136

   WLF 136    160    2S    23E    34    Kateel River    702094

137

   WLF 137    160    2S    23E    35    Kateel River    702095

138

   WLF 138    160    2S    23E    35    Kateel River    702096

139

   WLF 139    160    2S    23E    36    Kateel River    702097

140

   WLF 140    160    2S    23E    36    Kateel River    702098

141

   WLF 141    160    2S    24E    31    Kateel River    702099

142

   WLF 142    160    2S    24E    31    Kateel River    702100

143

   WLF 143    160    2S    24E    32    Kateel River    702101

144

   WLF 144    160    2S    24E    32    Kateel River    702102

145

   WLF 145    160    2S    23E    31    Kateel River    702103

146

   WLF 146    160    2S    23E    31    Kateel River    702104

147

   WLF 147    160    2S    23E    32    Kateel River    702105

148

   WLF 148    160    2S    23E    32    Kateel River    702106

149

   WLF 149    160    2S    23E    33    Kateel River    702107

150

   WLF 150    160    2S    23E    33    Kateel River    702108

151

   WLF 151    160    2S    23E    34    Kateel River    702109

152

   WLF 152    160    2S    23E    34    Kateel River    702110

153

   WLF 153    160    2S    23E    35    Kateel River    702111

154

   WLF 154    160    2S    23E    35    Kateel River    702112

155

   WLF 155    160    2S    23E    36    Kateel River    702113

156

   WLF 156    160    2S    23E    36    Kateel River    702114

157

   WLF 157    160    2S    24E    31    Kateel River    702115

158

   WLF 158    160    2S    24E    31    Kateel River    702116

159

   WLF 159    160    2S    24E    32    Kateel River    702117

160

   WLF 160    160    2S    24E    32    Kateel River    702118

 

36


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

161

   WLF 161    160    3S    23E    6    Kateel River    702119

162

   WLF 162    160    3S    23E    6    Kateel River    702120

163

   WLF 163    160    3S    23E    5    Kateel River    702121

164

   WLF 164    160    3S    23E    5    Kateel River    702122

165

   WLF 165    160    3S    23E    4    Kateel River    702123

166

   WLF 166    160    3S    23E    4    Kateel River    702124

167

   WLF 167    160    3S    23E    3    Kateel River    702125

168

   WLF 168    160    3S    23E    3    Kateel River    702126

169

   WLF 169    160    3S    23E    2    Kateel River    702127

170

   WLF 170    160    3S    23E    2    Kateel River    702128

171

   WLF 171    160    3S    23E    1    Kateel River    702129

172

   WLF 172    160    3S    23E    1    Kateel River    702130

173

   WLF 173    160    3S    24E    6    Kateel River    702131

174

   WLF 174    160    3S    24E    6    Kateel River    702132

175

   WLF 175    160    3S    24E    5    Kateel River    702133

176

   WLF 176    160    3S    24E    5    Kateel River    702134

177

   WLF 177    160    3S    23E    6    Kateel River    702135

178

   WLF 178    160    3S    23E    6    Kateel River    702136

179

   WLF 179    160    3S    23E    5    Kateel River    702137

180

   WLF 180    160    3S    23E    5    Kateel River    702138

181

   WLF 181    160    3S    23E    4    Kateel River    702139

182

   WLF 182    160    3S    23E    4    Kateel River    702140

183

   WLF 183    160    3S    23E    3    Kateel River    702141

184

   WLF 184    160    3S    23E    3    Kateel River    702142

185

   WLF 185    160    3S    23E    2    Kateel River    702143

186

   WLF 186    160    3S    23E    2    Kateel River    702144

187

   WLF 187    160    3S    23E    1    Kateel River    702145

188

   WLF 188    160    3S    23E    1    Kateel River    702146

189

   WLF 189    160    3S    24E    6    Kateel River    702147

190

   WLF 190    160    3S    24E    6    Kateel River    702148

191

   WLF 191    160    3S    24E    5    Kateel River    702149

192

   WLF 192    160    3S    24E    5    Kateel River    702150

193

   WLF 193    160    3S    23E    7    Kateel River    702151

194

   WLF 194    160    3S    23E    7    Kateel River    702152

195

   WLF 195    160    3S    23E    8    Kateel River    702153

196

   WLF 196    160    3S    23E    8    Kateel River    702154

197

   WLF 197    160    3S    23E    9    Kateel River    702155

198

   WLF 198    160    3S    23E    9    Kateel River    702156

199

   WLF 199    160    3S    23E    7    Kateel River    702157

200

   WLF 200    160    3S    23E    7    Kateel River    702158

201

   WLF 201    160    3S    23E    8    Kateel River    702159

202

   WLF 202    160    3S    23E    8    Kateel River    702160

 

37


Table of Contents

 

SWF CLAIMS

SWIFT PROJECT, ALASKA

All State of Alaska claims located in the Kuskokwim Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SWF 17    160    17N    28W    24    Seward    701801

2

   SWF 18    160    17N    28W    24    Seward    701802

3

   SWF 19    160    17N    27W    19    Seward    701803

4

   SWF 20    160    17N    27W    19    Seward    701804

5

   SWF 21    160    17N    27W    20    Seward    701805

6

   SWF 22    160    17N    28W    24    Seward    701806

7

   SWF 23    160    17N    28W    24    Seward    701807

8

   SWF 24    160    17N    27W    19    Seward    701808

9

   SWF 25    160    17N    27W    19    Seward    701809

10

   SWF 26    160    17N    27W    20    Seward    701810

11

   SWF 27    160    17N    27W    20    Seward    701811

12

   SWF 28    160    17N    28W    25    Seward    701812

13

   SWF 29    160    17N    28W    25    Seward    701813

14

   SWF 30    160    17N    27W    30    Seward    701814

15

   SWF 31    160    17N    27W    30    Seward    701815

16

   SWF 32    160    17N    27W    29    Seward    701816

17

   SWF 33    160    17N    27W    29    Seward    701817

18

   SWF 34    160    17N    28W    25    Seward    701818

19

   SWF 35    160    17N    28W    25    Seward    701819

20

   SWF 36    160    17N    27W    30    Seward    701820

21

   SWF 37    160    17N    27W    30    Seward    701821

22

   SWF 38    160    17N    27W    29    Seward    701822

23

   SWF 39    160    17N    27W    29    Seward    701823

24

   SWF 40    160    17N    27W    28    Seward    701824

25

   SWF 41    160    17N    28W    36    Seward    701825

26

   SWF 42    160    17N    28W    36    Seward    701826

27

   SWF 43    160    17N    27W    31    Seward    701827

28

   SWF 44    160    17N    27W    31    Seward    701828

29

   SWF 45    160    17N    27W    32    Seward    701829

30

   SWF 46    160    17N    27W    32    Seward    701830

31

   SWF 47    160    17N    27W    33    Seward    701831

32

   SWF 48    160    17N    27W    33    Seward    701832

33

   SWF 49    160    17N    28W    36    Seward    701833

34

   SWF 50    160    17N    28W    36    Seward    701834

35

   SWF 51    160    17N    27W    31    Seward    701835

36

   SWF 52    160    17N    27W    31    Seward    701836

37

   SWF 53    160    17N    27W    32    Seward    701837

38

   SWF 54    160    17N    27W    32    Seward    701838

 

38


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

39

   SWF 55    160    17N    27W    33    Seward    701839

40

   SWF 56    160    17N    27W    33    Seward    701840

41

   SWF 57    160    17N    27W    34    Seward    701841

42

   SWF 145    160    16N    27W    19    Seward    701842

43

   SWF 146    160    16N    27W    19    Seward    701843

44

   SWF 147    160    16N    27W    20    Seward    701844

45

   SWF 148    160    16N    27W    20    Seward    701845

46

   SWF 149    160    16N    27W    21    Seward    701846

47

   SWF 150    160    16N    27W    21    Seward    701847

48

   SWF 151    160    16N    27W    22    Seward    701848

49

   SWF 155    160    16N    28W    22    Seward    701849

50

   SWF 156    160    16N    28W    22    Seward    701850

51

   SWF 157    160    16N    28W    23    Seward    701851

52

   SWF 158    160    16N    28W    23    Seward    701852

53

   SWF 159    160    16N    28W    24    Seward    701853

54

   SWF 160    160    16N    28W    24    Seward    701854

55

   SWF 161    160    16N    27W    19    Seward    701855

56

   SWF 162    160    16N    27W    19    Seward    701856

57

   SWF 163    160    16N    27W    20    Seward    701857

58

   SWF 164    160    16N    27W    20    Seward    701858

59

   SWF 165    160    16N    27W    21    Seward    701859

60

   SWF 166    160    16N    27W    21    Seward    701860

61

   SWF 167    160    16N    27W    22    Seward    701861

62

   SWF 171    160    16N    28W    27    Seward    701862

63

   SWF 172    160    16N    28W    27    Seward    701863

64

   SWF 173    160    16N    28W    26    Seward    701864

65

   SWF 174    160    16N    28W    26    Seward    701865

66

   SWF 175    160    16N    28W    25    Seward    701866

67

   SWF 176    160    16N    28W    25    Seward    701867

68

   SWF 177    160    16N    27W    30    Seward    701868

69

   SWF 178    160    16N    27W    30    Seward    701869

70

   SWF 179    160    16N    27W    29    Seward    701870

71

   SWF 180    160    16N    27W    29    Seward    701871

72

   SWF 181    160    16N    27W    28    Seward    701872

73

   SWF 182    160    16N    27W    28    Seward    701873

74

   SWF 183    160    16N    27W    27    Seward    701874

75

   SWF 187    160    16N    28W    27    Seward    701875

76

   SWF 188    160    16N    28W    27    Seward    701876

77

   SWF 189    160    16N    28W    26    Seward    701877

78

   SWF 190    160    16N    28W    26    Seward    701878

79

   SWF 191    160    16N    28W    25    Seward    701879

80

   SWF 192    160    16N    28W    25    Seward    701880

 

39


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

81

   SWF 193    160    16N    27W    30    Seward    701881

82

   SWF 194    160    16N    27W    30    Seward    701882

83

   SWF 195    160    16N    27W    29    Seward    701883

84

   SWF 196    160    16N    27W    29    Seward    701884

85

   SWF 197    160    16N    27W    28    Seward    701885

86

   SWF 198    160    16N    27W    28    Seward    701886

87

   SWF 199    160    16N    27W    27    Seward    701887

88

   SWF 203    160    16N    28W    34    Seward    701888

89

   SWF 204    160    16N    28W    34    Seward    701889

90

   SWF 205    160    16N    28W    35    Seward    701890

91

   SWF 206    160    16N    28W    35    Seward    701891

92

   SWF 207    160    16N    28W    36    Seward    701892

93

   SWF 208    160    16N    28W    36    Seward    701893

94

   SWF 209    160    16N    27W    31    Seward    701894

95

   SWF 210    160    16N    27W    31    Seward    701895

96

   SWF 211    160    16N    27W    32    Seward    701896

97

   SWF 212    160    16N    27W    32    Seward    701897

98

   SWF 213    160    16N    27W    33    Seward    701898

99

   SWF 214    160    16N    27W    33    Seward    701899

100

   SWF 215    160    16N    27W    34    Seward    701900

101

   SWF 219    160    16N    28W    34    Seward    701901

102

   SWF 220    160    16N    28W    34    Seward    701902

103

   SWF 221    160    16N    28W    35    Seward    701903

104

   SWF 222    160    16N    28W    35    Seward    701904

105

   SWF 223    160    16N    28W    36    Seward    701905

106

   SWF 224    160    16N    28W    36    Seward    701906

107

   SWF 225    160    16N    27W    31    Seward    701907

108

   SWF 226    160    16N    27W    31    Seward    701908

109

   SWF 227    160    16N    27W    32    Seward    701909

110

   SWF 228    160    16N    27W    32    Seward    701910

111

   SWF 229    160    16N    27W    33    Seward    701911

112

   SWF 230    160    16N    27W    33    Seward    701912

113

   SWF 231    160    16N    27W    34    Seward    701913

 

40


Table of Contents

 

SAL CLAIMS

SALMON BAY PROJECT, ALASKA

All unpatented Federal lode claims located in the Petersburg Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   SAL 1    20    64S    78E    11    Copper River    92532

2

   SAL 2    20    64S    78E    11    Copper River    92533

3

   SAL 3    20    64S    78E    10    Copper River    92534

4

   SAL 4    20    64S    78E    11    Copper River    92535

5

   SAL 5    20    64S    78E    10    Copper River    92536

6

   SAL 6    20    64S    78E    11    Copper River    92537

7

   SAL 7    20    64S    78E    11    Copper River    92538

8

   SAL 8    20    64S    78E    10    Copper River    92539

9

   SAL 9    20    64S    78E    11    Copper River    92540

10

   SAL 10    20    64S    78E    11    Copper River    92541

11

   SAL 11    20    64S    78E    11    Copper River    92542

12

   SAL 12    20    64S    78E    10    Copper River    92543

13

   SAL 13    20    64S    78E    11    Copper River    92544

14

   SAL 14    20    64S    78E    11    Copper River    92545

15

   SAL 15    20    64S    78E    11    Copper River    92546

16

   SAL 16    20    64S    78E    12    Copper River    92547

17

   SAL 17    20    64S    78E    14    Copper River    92548

18

   SAL 18    20    64S    78E    13    Copper River    92549

19

   SAL 19    20    64S    78E    13    Copper River    92550

20

   SAL 20    20    64S    78E    14    Copper River    92551

21

   SAL 21    20    64S    78E    13    Copper River    92552

22

   SAL 22    20    64S    78E    14    Copper River    92553

23

   SAL 23    20    64S    78E    13    Copper River    92554

24

   SAL 24    20    64S    78E    13    Copper River    92555

25

   SAL 25    20    64S    78E    14    Copper River    92556

26

   SAL 26    20    64S    78E    13    Copper River    92557

27

   SAL 27    20    64S    78E    13    Copper River    92558

28

   SAL 28    20    64S    78E    14    Copper River    92559

29

   SAL 29    20    64S    78E    13    Copper River    92560

30

   SAL 30    20    64S    78E    13    Copper River    92561

31

   SAL 31    20    64S    78E    14    Copper River    92562

32

   SAL 32    20    64S    78E    13    Copper River    92563

33

   SAL 33    20    64S    78E    13    Copper River    92564

34

   SAL 34    20    64S    78E    13    Copper River    92565

35

   SAL 35    20    64S    78E    14    Copper River    92566

36

   SAL 36    20    64S    78E    14    Copper River    92567

37

   SAL 37    20    64S    78E    13    Copper River    92568

38

   SAL 38    20    64S    78E    13    Copper River    92569

39

   SAL 39    20    64S    78E    13    Copper River    92570

40

   SAL 40    20    64S    78E    14    Copper River    92571

41

   SAL 41    20    64S    78E    14    Copper River    92572

42

   SAL 42    20    64S    78E    13    Copper River    92573

43

   SAL 43    20    64S    78E    13    Copper River    92574

 

41


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

44

   SAL 44    20    64S    78E    13    Copper River    92575

45

   SAL 45    20    64S    78E    14    Copper River    92576

46

   SAL 46    20    64S    78E    14    Copper River    92577

47

   SAL 47    20    64S    78E    13    Copper River    92578

48

   SAL 48    20    64S    78E    13    Copper River    92579

49

   SAL 49    20    64S    78E    13    Copper River    92580

50

   SAL 50    20    64S    78E    23    Copper River    92581

51

   SAL 51    20    64S    78E    23    Copper River    92582

52

   SAL 52    20    64S    78E    24    Copper River    92583

53

   SAL 53    20    64S    78E    24    Copper River    92584

54

   SAL 54    20    64S    78E    24    Copper River    92585

55

   SAL 55    20    64S    78E    23    Copper River    92586

56

   SAL 56    20    64S    78E    23    Copper River    92587

57

   SAL 57    20    64S    78E    24    Copper River    92588

58

   SAL 58    20    64S    78E    24    Copper River    92589

59

   SAL 59    20    64S    78E    24    Copper River    92590

60

   SAL 60    20    64S    78E    23    Copper River    92591

61

   SAL 61    20    64S    78E    23    Copper River    92592

62

   SAL 62    20    64S    78E    24    Copper River    92593

63

   SAL 63    20    64S    78E    24    Copper River    92594

64

   SAL 64    20    64S    78E    24    Copper River    92595

65

   SAL 65    20    64S    78E    23    Copper River    92596

66

   SAL 66    20    64S    78E    23    Copper River    92597

67

   SAL 67    20    64S    78E    24    Copper River    92598

68

   SAL 68    20    64S    78E    24    Copper River    92599

69

   SAL 69    20    64S    78E    24    Copper River    92600

70

   SAL 70    20    64S    78E    25    Copper River    92601

71

   SAL 71    20    64S    78E    25    Copper River    92602

72

   SAL 72    20    64S    78E    25    Copper River    92603

73

   SAL 73    20    64S    79E    30    Copper River    92604

74

   SAL 74    20    64S    78E    25    Copper River    92605

75

   SAL 75    20    64S    78E    25    Copper River    92606

76

   SAL 76    20    64S    78E    25    Copper River    92607

77

   SAL 77    20    64S    79E    30    Copper River    92608

78

   SAL 78    20    64S    78E    25    Copper River    92609

79

   SAL 79    20    64S    78E    25    Copper River    92610

80

   SAL 80    20    64S    78E    25    Copper River    92611

81

   SAL 81    20    64S    79E    30    Copper River    92612

82

   SAL 82    20    64S    78E    25    Copper River    92613

83

   SAL 83    20    64S    78E    25    Copper River    92614

84

   SAL 84    20    64S    78E    25    Copper River    92615

85

   SAL 85    20    64S    79E    30    Copper River    92616

86

   SAL 86    20    64S    79E    30    Copper River    92617

87

   SAL 87    20    64S    78E    25    Copper River    92618

88

   SAL 88    20    64S    78E    25    Copper River    92619

89

   SAL 89    20    64S    78E    25    Copper River    92620

90

   SAL 90    20    64S    79E    30    Copper River    92621

 

42


Table of Contents

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

91

   SAL 91    20    64S    78E    25    Copper River    92622

92

   SAL 92    20    64S    78E    25    Copper River    92623

93

   SAL 93    20    64S    78E    25    Copper River    92624

94

   SAL 94    20    64S    79E    30    Copper River    92625

95

   SAL 95    20    64S    78E    25    Copper River    92626

96

   SAL 96    20    64S    78E    25    Copper River    92627

97

   SAL 97    20    64S    78E    25    Copper River    92628

98

   SAL 98    20    64S    79E    30    Copper River    92629

99

   SAL 99    20    64S    79E    30    Copper River    92630

100

   SAL 100    20    64S    78E    25    Copper River    92631

101

   SAL 101    20    64S    78E    25    Copper River    92632

102

   SAL 102    20    64S    78E    25    Copper River    92633

103

   SAL 103    20    64S    79E    30    Copper River    92634

104

   SAL 104    20    64S    79E    31    Copper River    92635

105

   SAL 105    20    64S    79E    31    Copper River    92636

106

   SAL 106    20    64S    79E    31    Copper River    92637

107

   SAL 107    20    64S    79E    31    Copper River    92638

108

   SAL 108    20    64S    79E    31    Copper River    92639

109

   SAL 109    20    64S    79E    31    Copper River    92640

110

   SAL 110    20    64S    79E    31    Copper River    92641

111

   SAL 111    20    64S    79E    32    Copper River    92642

112

   SAL 112    20    64S    79E    31    Copper River    92643

113

   SAL 113    20    64S    79E    31    Copper River    92644

114

   SAL 114    20    64S    79E    31    Copper River    92645

115

   SAL 115    20    64S    79E    32    Copper River    92646

116

   SAL 116    20    64S    79E    31    Copper River    92647

117

   SAL 117    20    64S    79E    31    Copper River    92648

118

   SAL 118    20    64S    79E    31    Copper River    92649

119

   SAL 119    20    64S    79E    32    Copper River    92650

120

   SAL 120    20    64S    79E    31    Copper River    92651

121

   SAL 121    20    64S    79E    31    Copper River    92652

122

   SAL 122    20    64S    79E    31    Copper River    92653

123

   SAL 123    20    64S    79E    32    Copper River    92654

124

   SAL 124    20    64S    79E    31    Copper River    92655

125

   SAL 125    20    64S    79E    31    Copper River    92656

126

   SAL 126    20    64S    79E    31    Copper River    92657

127

   SAL 127    20    65S    79E    1    Copper River    92658

 

43


Table of Contents

 

GB, MC and SR CLAIMS

STONE ROCK BAY PROJECT, ALASKA

All unpatented Federal lode a claims located in the Ketchikan Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   GB 1    20    81S    90E    21    Copper River    92522

2

   GB 2    20    81S    90E    21    Copper River    92523

3

   GB 3    20    81S    90E    21    Copper River    92524

4

   GB 4    20    81S    90E    21    Copper River    92525

5

   GB 5    20    81S    90E    28    Copper River    92526

6

   GB 6    20    81S    90E    28    Copper River    92527

7

   GB 7    20    81S    90E    28    Copper River    92528

8

   GB 8    20    81S    90E    28    Copper River    92529

9

   GB 9    20    81S    90E    28    Copper River    92530

10

   GB 10    20    81S    90E    28    Copper River    92531

11

   MC 1    20    82S    90E    4    Copper River    92483

12

   MC 2    20    82S    90E    4    Copper River    92484

13

   MC 3    20    82S    90E    4    Copper River    92485

14

   MC 4    20    82S    90E    4    Copper River    92486

15

   MC 5    20    82S    90E    4    Copper River    92487

16

   MC 6    20    82S    90E    4    Copper River    92488

17

   MC 7    20    82S    90E    4    Copper River    92489

18

   MC 8    20    82S    90E    4    Copper River    92490

19

   MC 9    20    82S    90E    4    Copper River    92491

20

   MC 10    20    82S    90E    4    Copper River    92492

21

   MC 11    20    82S    90E    4    Copper River    92493

22

   MC 12    20    82S    90E    4    Copper River    92494

23

   MC 13    20    82S    90E    4    Copper River    92495

24

   MC 14    20    82S    90E    4    Copper River    92496

25

   MC 15    20    82S    90E    4    Copper River    92497

26

   SR 1    20    82S    90E    7    Copper River    92498

27

   SR 2    20    82S    90E    8    Copper River    92499

28

   SR 3    20    82S    90E    7    Copper River    92500

29

   SR 4    20    82S    90E    8    Copper River    92501

30

   SR 5    20    82S    90E    7    Copper River    92502

31

   SR 6    20    82S    90E    8    Copper River    92503

32

   SR 7    20    82S    90E    8    Copper River    92504

33

   SR 8    20    82S    90E    7    Copper River    92505

34

   SR 9    20    82S    90E    8    Copper River    92506

35

   SR 10    20    82S    90E    8    Copper River    92507

36

   SR 11    20    82S    90E    7    Copper River    92508

37

   SR 12    20    82S    90E    8    Copper River    92509

38

   SR 13    20    82S    90E    8    Copper River    92510

39

   SR 14    20    82S    90E    7    Copper River    92511

40

   SR 15    20    82S    90E    8    Copper River    92512

41

   SR 16    20    82S    90E    8    Copper River    92513

42

   SR 17    20    82S    90E    7    Copper River    92514

43

   SR 18    20    82S    90E    8    Copper River    92515

44

   SR 19    20    82S    90E    8    Copper River    92516

 

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No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

45

   SR 20    20    82S    90E    7    Copper River    92517

46

   SR 21    20    82S    90E    8    Copper River    92518

47

   SR 22    20    82S    90E    8    Copper River    92519

48

   SR 23    20    82S    90E    17    Copper River    92520

49

   SR 24    20    82S    90E    17    Copper River    92521

Location and Access of our Properties

Our Gold Properties are located in the eastern interior region of Alaska. Access to the Tetlin Project claims is available by road and access to public power is available. The Triple Z Project claims are accessible via an ATV trail from the public road. There is no commercial power available.

Our REE Properties are located throughout the State of Alaska. The Salmon Bay and Stone Rock Bay Project claims are located in the southeastern region of the state. Salmon Bay and Stone Rock are accessible only by aircraft or sea. No commercial sources of power are available. The Altana, Spooky and Wolf Project claims are located in the interior region and the Swift Project claims are located in western region of Alaska. The Alatna, Spooky, Wolf and Swift claims are accessible by aircraft only and no commercial sources of power are available.

In general, water rights are acquired on an as-needed basis from the State of Alaska Department of Natural Resources, Division of Mining, Land and Water. Potential water sources include both surface and subsurface waters. Water right applications can be either temporary (seasonal rights) or permanent, such as an operating mine would require. We will obtain water rights as necessary to carry out our exploration programs on our Properties. A temporary water use permit will be required as part of the drilling program envisioned for 2011. Such rights normally take approximately one month to acquire via permit.

Prior to JEX’s acquisition of the Properties, to the Company’s knowledge, the Properties had not been previously explored for minerals.

 

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LOGO

Fees

The following tables set forth the annual State of Alaska and Federal mining claim rental holding costs for the Company’s Alaska projects. Federal mining claim rents are due and payable in full by August 31 of each year and State of Alaska mining claim rents are due and payable by November 30 of each year.

 

Gold/Copper Claims:

   Triple Z      Tok/Tetlin      Totals  

# 160 Acre Claims

     4         54         58   

# 40 Acre Claims

     0         68         68   

# 20 Acre Fed claims

     0         0         0   

Total Acres

     640         11461         12,101   

State Claim Rents - 160-acre

   $ 560.00       $ 7,560.00       $ 8,120   

State Claim Rents - 40-acre

   $ 0.00       $ 2,380.00       $ 2,380   

Fed Claim Rents - 20-acre

   $ 0.00       $ 0.00       $ 0   
                          

Totals

   $ 560.00       $ 9,940.00       $ 10,500.00   
                          

 

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REE Claims:

   Stone Rock      Swift River      Spooky      Wolf      Alatna      Salmon Bay      Totals  

# 160 Acre Claims

     0         113         166         202         127         0         608   

# 40 Acre Claims

     0         0         0         0         0         0         0   

# 20 Acre Fed claims

     49         0         0         0         0         127         176   

Total Acres

     980         18080         26560         32320         20320         2540         100,800   

State Claim Rents - 160-acre

   $ 0.00       $ 15,820.00       $ 23,240.00       $ 28,280.00       $ 17,780.00       $ 0.00       $ 85,120   

State Claim Rents - 40-acre

   $ 0.00       $ 0.00       $ 0.00       $ 0.00       $ 0.00       $ 0.00       $ 0   

Fed Claim Rents - 20-acre

   $ 6,860.00       $ 0.00       $ 0.00       $ 0.00       $ 0.00       $ 17,780.00       $ 24,640   
                                                              

Totals

   $ 6,860.00       $ 15,820.00       $ 23,240.00       $ 28,280.00       $ 17,780.00       $ 17,780.00       $ 109,760.00   
                                                              

Acquisition of Other Properties

The Company anticipates from time to time acquiring additional properties in Alaska for exploration. The acquisitions may include leases or similar rights from Alaska Native corporations or may include filing Federal or State of Alaska mining claims by staking claims for exploration and development. Acquiring additional properties will likely result in additional expense to the Company for minimum royalties, minimum rents and annual exploratory work requirements. The Company has entered into a Consulting Agreement with the Chief of the Native Village of Tetlin to assist the Company in acquiring additional properties or other Alaska native lands, as well as facilitating meetings with State of Alaska and Federal officials at a cost of $5,000 per month plus possible bonus payments.

Overriding Royalty Interest

Pursuant to the Amended ORRI Agreement, in consideration of JEX’s assignment of its 50% interest in the Properties to Contango Mining, the Company will convey an overriding royalty interest to JEX which provides that JEX will receive a 3% of 8/8ths overriding royalty interest on all minerals mined from the Properties held by the Company as of the date of the Amended ORRI Agreement.

 

Item 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

Contango currently owns all of our outstanding shares of common stock. The following tables set forth the anticipated beneficial ownership of our common stock immediately following the Distribution by (i) those that we expect to be beneficial owners of more than five percent of our outstanding common stock immediately upon the Distribution, (ii) each of our directors and named executive officers, and (iii) all directors and executive officers as a group, in each case based on (A) information available to us concerning ownership of Contango common stock as of October 15, 2010 and (B) the distribution ratio of one share of our common stock for ten shares of the common stock of Contango. Immediately following the Distribution, we estimate that approximately 1.6 million shares of our common stock will be issued and outstanding, based upon the number of shares of common stock of Contango expected to be outstanding as of the record date.

 

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Our 5% Stockholders

 

Title of Class

  

Name and Address of Beneficial Owner (1)

   Amount of
Ownership (2)
     Percent of
Outstanding
Shares
 

Common Stock

   Kenneth R. Peak      308,290         19

Directors and Executive Officers

 

Title of Class

  

Name and Address of Beneficial Owner (1)

   Amount of
Ownership (2)
     Percent of
Outstanding
Shares
 
   Directors Who Are Not Employees      

Common Stock

   Joseph G. Greenberg      11,250         *   

Common Stock

   Joseph Compofelice      11,250         *   
   Executive Officers      

Common Stock

   Kenneth R. Peak      308,290         19

Common Stock

   Sergio Castro      11,550         *   

Common Stock

   Yaroslava Makalskaya      11,250         *   
   Directors and Executives Combined      

Common Stock

   All current directors and executive officers as a group persons (5 persons)      353,590         22

 

* Less than 1%.
(1) Unless otherwise noted, the address of the members of the Board and our executive officers is 3700 Buffalo Speedway, Suite 960, Houston, Texas 70098.
(2) Beneficial ownership is determined in accordance with the rules of the SEC. Shares of common stock underlying convertible securities, options and warrants that are currently exercisable or exercisable within 60 days of the date of the Distribution are deemed to be outstanding and to be beneficially owned by the person holding such securities, options or warrants for the purpose of computing the percentage ownership of that person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. To the Company’s knowledge, except as set forth in the footnotes to this table and subject to applicable community property laws, each person named in the table has sole voting and investment power with respect to the shares set forth opposite such person’s name.

 

Item 5. DIRECTORS AND EXECUTIVE OFFICERS.

The following table sets forth certain information regarding the directors and executive officers of the Company as of October 15, 2010.

 

Name

   Age   

Position(s)

Kenneth R. Peak

   65    Chairman of the Board, President, Chief Executive Officer and Director

Sergio Castro

   41    Vice President, Chief Financial Officer and Secretary

Yaroslava Makalskaya

   41    Vice President and Controller

Joseph Compofelice

   61    Director

Joseph G. Greenberg

   49    Director

Kenneth R. Peak. Mr. Peak has been Chairman of the Board, Chief Executive Officer and a director of the Company since its inception as a wholly-owned subsidiary of Contango. Mr. Peak founded Contango in 1999 and is currently the Chairman and Chief Executive Officer of Contango. Mr. Peak entered the energy industry in 1973 as a commercial banker and held a variety of financial and executive positions in the oil and gas industry prior to founding Contango in 1999. Mr. Peak served as an

 

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officer in the U.S. Navy from 1968 to 1971. Mr. Peak received a BS in physics from Ohio University in 1967, and a MBA from Columbia University in 1972. He currently serves as a director of Patterson-UTI Energy, Inc., a provider of onshore contract drilling services to exploration and production companies in North America.

Sergio Castro. Mr. Castro has been Vice President, Chief Financial Officer and Secretary of the Company since its inception. Mr. Castro joined Contango in March 2006 as Treasurer, was appointed Vice President and Treasurer in April 2006 and Chief Financial Officer in June 2010. Prior to joining Contango, Mr. Castro was a Consultant for UHY Advisors TX, LP from 2004 to 2006. From 2001 to 2004, Mr. Castro was a lead credit analyst for Dynegy Inc. From 1997 to 2001, Mr. Castro worked as an auditor for Arthur Andersen LLP, where he specialized in energy companies. Mr. Castro was honorably discharged from the U.S. Navy in 1993 as an E-6, where he served onboard a nuclear powered submarine. Mr. Castro received a BBA in Accounting in 1997 from the University of Houston, graduating summa cum laude. Mr. Castro is a Certified Public Accountant and Certified Fraud Examiner.

Yaroslava Makalskaya . Ms. Makalskaya has been Vice President and Controller of the Company since its inception. Ms. Makalskaya has been Vice President and Controller of Contango since June 2010. Prior to joining Contango, Ms. Makalskaya was a director at the Transaction Services practice of PricewaterhouseCoopers from July 2008 to March 2010, where she assisted clients with IPOs, M&A transactions as well as advised clients with complex accounting and financial reporting issues. From 2001 to June 2008, Ms. Makalskaya was in the audit practice of PricewaterhouseCoopers, and from 1996 to 2001, in the audit practice of Arthur Andersen. Ms. Makalskaya holds a MS degree in economics from Novosibirsk State University in Russia. Ms. Makalskaya is a CPA and has over eighteen years of work experience in accounting and finance, including over thirteen years in public accounting.

Joseph Compofelice. Mr. Compofelice has been a director of the Company since its inception. Mr. Compofelice has served as Managing Director of Houston Capital Advisors, a boutique financial advisory, mergers and acquisitions investment service since January 2004. Mr. Compofelice served as Chairman of the Board of Trico Marine Service, a provider of marine support vessels serving the international natural gas and oil industry, from 2004 to 2010 and as its Chief Executive Officer from 2007 to 2010. Mr. Compofelice was President and Chief Executive Officer of Aquilex Services Corp., a service and equipment provider to the power generation industry, from October 2001 to October 2003. From February 1998 to October 2000 he was Chairman and CEO of CompX International Inc., a provider of components to the office furniture, computer and transportation industries. From March 1994 to May 1998 he was Chief Financial Officer of NL Industries, a chemical producer, Titanium Metals Corporation, a metal producer and Tremont Corp. Mr. Compofelice received his BS at California State University at Los Angeles and his MBA at Pepperdine University.

Joseph G. Greenberg. Mr. Greenberg has been a director of the Company since its inception. Mr. Greenberg is founder and President of Alta Resources, L.L.C., an oil and natural gas exploration company. Prior to founding Alta Resources in 1999, Mr. Greenberg worked as an exploration geologist for Shell Oil Company and Edge Petroleum Company. Mr. Greenberg received a BS in Geology and Geophysics from Yale University in 1983, and a Masters in Geological Sciences from the University of Texas at Austin in 1986. He has over twenty-two years of diversified experience in domestic oil and gas exploration.

The Board of Directors is responsible for managing the Company in accordance with the provisions of the Company’s Bylaws and Certificate of Incorporation and applicable law. The number of directors which constitutes the Board of Directors is established by the Board, subject to a minimum of three and a maximum of seven directors. Except as otherwise provided by the Bylaws for filling vacancies on the Company’s Board of Directors, the Company’s directors are elected at the Company’s

 

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annual meeting of stockholders and hold office until their respective successors are elected, or until their earlier resignation or removal. Our executive officers are elected annually by the Board and serve until their successors are duly elected and qualified or until their earlier resignation or removal. There are no family relationships between our directors or executive officers.

The Board of Directors elected Mr. Peak as both Chairman and Chief Executive Officer for a number of reasons. Mr. Peak is the founder of the Company and will own approximately 19% of the Company’s common stock, making him the largest shareholder. Mr. Peak has been an active entrepreneur who founded Contango and built the business into a large successful oil and gas company with a market capitalization of approximately $800 million. However, by combining the position of Chairman and Chief Executive Officer, the Company may lose advantages in having a strong independent Board that is less influenced by the management of the Company.

 

Item 6. EXECUTIVE COMPENSATION.

Compensation Discussion and Analysis

Philosophy

The Company is an exploration stage organization without any source of revenue. It has three part-time employees. The Company will not pay any salaries or other benefits to its executive employees for the foreseeable future and until such time as the business of the Company may require cash compensation. The Company intends to implement an equity compensation program for its executive officers that will provide an incentive for such officers to achieve the Company’s business objectives.

Equity Awards

The Company’s equity compensation program for senior executive employees is expected to include two forms of long-term incentives: restricted stock and stock options. Award size and frequency will be based on each executive’s demonstrated level of performance and Company performance over time. All awards shall be made by the Company’s Compensation Committee (“Compensation Committee”) which shall be composed of independent directors of the Company. The Compensation Committee is expected to grant awards to all executives effective on the date of the Distribution and to review award levels annually thereafter. In making individual awards, the Compensation Committee will consider industry practices, the performance of each executive, the performance of the Company, the value of the executive’s previous awards and the Company’s views on executive retention and succession.

2010 Equity Compensation Plan

The Company’s Board of Directors is expected to adopt the Contango ORE, Inc. Equity Compensation Plan (the “Plan”). Under the Plan, the Compensation Committee can grant stock options, restricted stock awards stock appreciation rights or other stock-based awards to employees, consultants or non-employee directors of the Company. Pursuant to the terms of the Plan, 1,000,000 shares of unissued common stock are authorized and reserved for issue under nonqualified stock options, incentive stock options and restricted stock grants. The maximum aggregate number of shares of common stock of the Company with respect to which all grants may be made to any individual is 100,000 shares during any calendar year.

Options may be granted to employees, consultants and non-employee directors. Incentive stock options may be granted only to employees of the Company or its subsidiaries. Non-qualified stock options may be granted to employees, consultants or non-employee directors. The exercise price of the

 

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option shall be determined by the Compensation Committee and shall be equal to or greater than the fair market value of a share of the Company’s common stock on the date the option was granted. The Compensation Committee shall determine the term of options granted to participants under the Plan but in any event all options must be exercised no later than the ten years from the issue date. All options may only be exercised while a participant is employed as an employee or providing services as a consultant or non-employee director.

The Company may issue stock awards to employees, consultants and non-employee directors. Restricted stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable period of restriction established by the Compensation Committee and specified in the award agreement granting the restricted stock.

Under the Plan, upon a change of control transaction, the Compensation Committee may take the following actions without the consent of any participant:

 

   

Determine that outstanding options and stock appreciation rights are fully exercisable, and that restrictions on stock awards or stock units shall lapse;

 

   

Require that participants surrender their outstanding options in exchange for payment by the Company;

 

   

Terminate all outstanding unexercised options after giving participants an opportunity to exercise them;

 

   

Determine that grants that remain outstanding after a change of control shall be converted to similar grants of the surviving corporation.

Under the Plan a “Change in Control” means any of the following events: (i) any person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) other than Mr. Peak or his affiliates is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of our securities representing twenty-five percent (25%) or more of the combined voting power of our then outstanding securities; (ii) the consummation of a (A) merger or consolidation of the Company where the stockholders of the Company immediately prior to the merger or consolidation will not beneficially own shares entitling the stockholders to more than more than 50% of all votes in the election of directors, (B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the Company, or (iii) directors are elected such that a majority of the members of the Board shall have been members for less than two years.

The Plan provides that no equity securities or options for equity securities may be hedged by executives of the Company.

Equity Award Mechanics

Equity awards are expected to be granted pursuant to the Plan and will be made by the Compensation Committee. Equity awards are expected to typically fall into two categories: annual awards and new hire and promotion awards. New hire and promotion awards are expected to be made on the date of hire or promotion, and annual awards are expected to be made in June. From time to time the Board of Directors may make grants at other times in connection with employee retention or otherwise.

All stock option awards will have a per share exercise price equal to the closing price of our common stock on the grant date. Stock option awards and restricted stock awards vest upon the passage of time. The Compensation Committee has not granted, nor do they intend in the future to grant, equity awards in anticipation of the release of material nonpublic information. Similarly, the Company has not timed, nor does it intend in the future to time, the release of material nonpublic information based upon equity award grant dates.

 

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Deferred Compensation and Retirement Plans

The Company does not have a deferred compensation program, pension benefits, a retirement plan, or any sort of post retirement healthcare plan. Additionally, the Company does not have any potential post-employment payments such as termination or a change in control of the Company.

Perquisites and Other Benefits

The Company will review annually the perquisites that senior executives receive. In general, such perquisites, if any, are limited. The Company’s senior executives are entitled to few benefits, if any, that are not otherwise available to all of its employees.

Regulatory Considerations

It is the Company’s policy to make reasonable efforts to cause executive compensation to be eligible for deductibility under Section 162(m) of the Code. Under Section 162(m), the federal income tax deductibility of compensation paid to the Company’s Chief Executive Officer and to each of its four other most highly compensated executive officers may be limited to the extent that such compensation exceeds $1 million in any one year. Under Section 162(m), the Company may deduct compensation in excess of $1 million if it qualifies as “performance-based compensation”, as defined in Section 162(m).

Employment and Severance Agreements

We have no employment or severance agreement with any executive officer, except with Mr. Peak.

Employment Agreement with Mr. Peak

We expect to enter into a Chairman Agreement (the “Chairman Agreement”) with Mr. Peak prior to the Distribution in conjunction with his appointment as Chairman of the Company. Restricted shares of common stock equal to 1.50% of the aggregate shares of common stock being distributed to the stockholders of Contango will be issued to Mr. Peak as compensation for his services, which will vest over a period of three years, beginning with the one-year anniversary of the date the shares were granted. Mr. Peak will receive no salary or other compensation initially. Mr. Peak’s employment arrangement is for a term of one year, and for month-to-month thereafter, terminable upon 90 days’ written notice, but is reviewed on an annual basis for appropriate changes in salary, benefits or other employment matter. Pursuant to the terms of the Chairman Agreement, Mr. Peak is not permitted to have an ownership interest in any company that competes with the Company.

Compensation of Directors

Directors who are not employees are expected to be compensated initially in the form of Company equity. Effective on the date of Distribution, each outside director will receive restricted shares of common stock equal to .75% of the aggregate shares of common stock being distributed to the stockholders of Contango.

 

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Compensation Review Process for Future Periods

The Compensation Committee will conduct an annual review of each executive officer for purposes of establishing a base salary, bonus or equity awards. The Compensation Committee does not intend to pay executive officers cash compensation unless and until the Company has sufficient cash resources to enable such payment and the business of the Company requires such payment.

Executive Compensation Tables

As of the date of this Registration Statement, no executive or director compensation has been paid by the Company since its inception. Upon the Distribution, the Company plans to issue the following equity awards to its officers:

 

Name

  

Grant Type

   Shares Granted     

Expected Grant Date

Kenneth R. Peak

   Restricted Stock      22,500       November 29, 2010

Sergio Castro

   Restricted Stock      11,250       November 29, 2010

Yaroslava Makalskaya

   Restricted Stock      11,250       November 29, 2010

 

Item 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The following is a description of transactions that the Company intends to enter into, and in which any director, executive officer or holder of more than 5% of the Company’s capital stock will have a direct or indirect material interest. All of the transactions disclosed below will be duly authorized by the then-serving Board of Directors.

Immediately before the Distribution, Contango Mining expects to distribute the Properties to Contango, and Contango expects to contribute the Properties and $3.5 million in cash to the Company in exchange for shares of common stock of the Company in an amount equal to one share of common stock for each ten (10) shares of Contango’s common stock outstanding as of October 15, 2010 pursuant to a Contribution Agreement.

The Company has instituted policies and procedures for the review, approval and ratification of “related person” transactions as defined under SEC rules and regulations. Our Audit Committee Charter requires management to inform the Audit Committee of all related person transactions. In order to identify any such transactions, among other measures, the Company requires its directors and officers to complete questionnaires identifying transactions with any company in which the officer or director or their family members may have an interest. In addition, our Code of Ethics requires that the Audit Committee review and approve any related person transaction before it is consummated.

Each Board member other than Mr. Peak is an independent director as defined in Section 5605 of the Nasdaq listing standards.

 

Item 8. LEGAL PROCEEDINGS.

As of the date of this Form 10, we are not a party to any legal proceedings and we are not aware of any proceeding contemplated against us.

 

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Item 9. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

Market Information

There is no current market for the common stock of the Company.

Holders

As of October 15, 2010, there were 100 shares of our common stock outstanding held solely by Contango.

Dividends

The Company does not intend to declare or pay any dividends and currently intends to retain any available earnings generated by its operations for the development and growth of its business. It does not currently anticipate paying any cash dividends on its outstanding shares of common stock in the foreseeable future. Any future decision to pay dividends on its common stock will be at the discretion of its Board and will depend on its financial condition, results of operations, capital requirements, and other factors the Board may deem relevant.

 

Item 10. RECENT SALES OF UNREGISTERED SECURITIES.

On September 1, 2010, the Company was formed as a Delaware corporation and issued 100 shares of its common stock to Contango. We will rely on the provisions of Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), in claiming exemption for the offering, sale and delivery of such securities from registration under the Securities Act. We anticipate issuing restricted shares of our common stock to directors and officers immediately prior to the Distribution equal to 4.5% of the aggregate shares of common stock being distributed to the stockholders of Contango. In connection with the Distribution, the Company anticipates that it will issue approximately 1.5 million shares of its common stock to Contango for distribution to Contango’s shareholders of record on October 15, 2010 and an additional approximately 67,500 shares to the Company’s officers and directors in the form of restricted stock.

 

Item 11. DESCRIPTION OF REGISTRANT’S SECURITIES TO BE REGISTERED.

Authorized and outstanding capital stock

The Company’s authorized capital stock consists of 30,000,000 shares of common stock and 15,000,000 shares of preferred stock. As of October 15, 2010, 100 shares of common stock were outstanding.

Common Stock

Our certificate of incorporation authorizes us to issue 30,000,000 shares of common stock. As of October 15, 2010, 100 shares of common stock were issued and outstanding, all of which are fully paid and non-assessable.

Holders of common stock are entitled to one vote for each share held of record on all matters to be voted on by stockholders and are not entitled to cumulative voting for the election of directors. Upon the liquidation, dissolution or winding up of our business, after payment of all liabilities and payment of

 

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preferential amounts to the holders of preferred stock, if any, the shares of common stock are entitled to share equally in our remaining assets. Pursuant to our certificate of incorporation, no stockholder has any preemptive rights to subscribe for our securities. The common stock is not subject to redemption.

We do not intend to declare or pay any cash dividends on our common stock. We currently intend to retain future earnings in excess of preferred stock dividends, if any, for operations and to develop and expand our business. We do not anticipate paying any dividends on our common stock in the foreseeable future. Any future determination with respect to the payment of dividends on the common stock will be at the discretion of the Board and will depend on, among other things, operating results, financial condition and capital requirements, the terms of then-existing indebtedness, general business conditions and other factors the Board deems relevant.

Preferred Stock

Our certificate of incorporation authorizes us to issue 15,000,000 shares of preferred stock, par value $0.01 per share, in one or more series with such voting powers, full or limited, or no voting powers and such designations, preferences and relative participation, optional or other special rights, and the qualifications, limitations or restrictions thereof as shall be stated in the resolutions of the Board providing for their issuance. As of October 15, 2010, there were no shares of preferred stock issued and outstanding.

Stock Options and Warrants

As of October 15, 2010, we had not granted any stock options or warrants to purchase shares of common stock. The Company anticipates issuing restricted shares of common stock to certain officers and directors and to Avalon immediately before the Distribution. See Item 4 – “Security Ownership of Certain Beneficial Owners and Management.”

 

Item 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS.

Section 145 of the Delaware General Corporation Law (DGCL) permits the Board of Directors of the Company to indemnify any person against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with any threatened, pending or completed action, suit or proceeding in which such person is made a party by reason of his or her being or having been a director, officer, employee or agent of the Company, as the case may be, in terms sufficiently broad to permit such indemnification under certain circumstances for liabilities (including reimbursement for expenses incurred) arising under the Securities Act of 1933, as amended (the Securities Act). The statute provides that indemnification pursuant to its provisions is not exclusive of other rights of indemnification to which a person may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise.

The Company’s certificate of incorporation and bylaws provide for indemnification of its directors and officers to the fullest extent permitted by law. Article VI of the Company’s bylaws and Article XIII of the Company’s certificate of incorporation provide that the Company shall indemnify directors and officers under certain circumstances for liabilities and expenses incurred by reason of their activities in such capacities. In addition, the Company has insurance policies that provide liability coverage to directors and officers while acting in such capacities and they are also covered by insurance policies indemnifying against certain liabilities, including certain liabilities arising under the Securities Act, which might be incurred by them in such capacities.

 

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Item 13. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements required to be included in this Registration Statement appear at the end of this Registration Statement beginning on page F-1.

 

Item 14. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

 

Item 15. FINANCIAL STATEMENTS AND EXHIBITS.

Index to Financial Statements

See the Index to the Company’s financial statements on page F-1 of this Registration Statement.

Exhibits

 

Exhibit
Number

  

Description

  3.1    Certificate of Incorporation of Contango ORE, Inc.
  3.2    Bylaws of Contango ORE, Inc.
  4.1    Form of Certificate of Contango ORE, Inc. Common Stock
10.1    Mineral Lease, effective as of July 15, 2008, between the Native Village of Tetlin and Juneau Exploration Company, d/b/a Juneau Mining Company, as amended by Amendment No. 1 to Mineral Lease, effective as of October 1, 2009.
10.2    Chairman Agreement dated as of November 1, 2010, between Contango ORE, Inc. and Kenneth R. Peak
10.3    Form of 2010 Equity Compensation Plan
10.4    Contribution Agreement, dated as of November 1, 2010, between Contango Oil & Gas Company and Contango ORE, Inc.
  
10.5    Amended and Restated Professional Services Agreement, dated as of November 1, 2010, between Avalon Development Corporation and Contango ORE, Inc.

 

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SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Company has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 12, 2010     CONTANGO ORE, INC.
    By:   /s/    K ENNETH R. P EAK        
    Name:   Kenneth R. Peak
    Title:   Chief Executive Officer

 

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CONTANGO ORE, INC.

INDEX TO FINANCIAL STATEMENTS

 

     Page  

Contango ORE, Inc.

  

Report of Independent Registered Public Accounting Firm

     F-2   

Balance Sheet, September 24, 2010

     F-3   

Notes to Balance Sheet

     F-4   

Contango Mining Company

  

Financial Statements for the Period from Inception (October 15, 2009) to June 30, 2010:

  

Report of Independent Registered Public Accounting Firm

     F-6   

Balance Sheet

     F-7   

Statement of Operations

     F-8   

Statement of Cash Flows

     F-9   

Statement of Shareholder’s Equity

     F-10   

Notes to Financial Statements

     F-11   

Financial Statements for the quarter ended September 30, 2010 and for the period from Inception (October 15, 2009) to September 30, 2010 (Unaudited):

  

Balance Sheets (Unaudited)

     F-14   

Statements of Operations (Unaudited)

     F-15   

Statements of Cash Flows (Unaudited)

     F-16   

Statement of Shareholder’s Equity (Unaudited)

     F-17   

Notes to Financial Statements (Unaudited)

     F-18   

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholder of Contango ORE, Inc.:

We have audited the accompanying balance sheet of Contango ORE, Inc. (an exploration stage company) (the “Company”) as of September 24, 2010. This balance sheet is the responsibility of the Company’s management. Our responsibility is to express an opinion on this balance sheet based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Contango ORE, Inc. as of September 24, 2010, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ UHY LLP
Houston, Texas
September 24, 2010

 

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CONTANGO ORE, INC.

(An Exploration Stage Company)

BALANCE SHEET

SEPTEMBER 24, 2010

 

     September 24, 2010  
ASSETS   

CURRENT ASSETS:

  

Cash and cash equivalents

   $ 100   

Total current assets

     100   
        

TOTAL ASSETS

   $ 100   
        
LIABILITIES AND SHAREHOLDER’S EQUITY   

SHAREHOLDER’S EQUITY:

  

Common stock, $0.01 par value, 30,000,000 shares authorized, 100 shares issued and 100 shares outstanding at September 24, 2010

   $ 1   

Additional paid-in capital

     99   

Deficit accumulated during exploration stage

     —     

Total shareholder’s equity

     100   
        

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY

   $ 100   
        

The accompanying notes are an integral part of this financial statement.

 

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CONTANGO ORE, INC.

(An Exploration Stage Company)

NOTES TO BALANCE SHEET

As of September 24, 2010

1. Organization and Business

The Company is a Houston-based, independent company. The Company was formed on September 1, 2010 as a Delaware corporation for the purpose of engaging in the exploration and prospecting of gold and associated minerals and rare earth elements in the State of Alaska. The Company has no operating history since inception. The Company is a wholly-owned subsidiary of Contango Oil & Gas Company, a Delaware corporation (“Contango”) and is an exploration stage company as defined by Accounting Standards Codification (“ASC”) 915, “Development Stage Entities.” The Company expects to enter into a series of transactions (the “Distribution”) whereby the Company will acquire from Contango certain leasehold interests and mining claims for the conduct of exploration and development of mineral properties in the State of Alaska plus $3.5 million of cash and Contango will distribute the Company’s common stock to Contango’s stockholders. The Company expects the Distribution to be completed by the end of 2010.

The Company’s fiscal year end is June 30.

2. Cash Equivalents.

Cash equivalents are considered to be highly liquid investment grade debt investments having an original maturity of 90 days or less. As of September 24, 2010, the Company had $100 in cash and cash equivalents.

3. Common Stock

The Company’s certificate of incorporation authorizes us to issue 30,000,000 shares of common stock, $0.01, par value. As of September 24, 2010, 100 shares of common stock were issued and outstanding, all of which are fully paid and non-assessable.

Holders of common stock are entitled to one vote for each share held of record on all matters to be voted on by stockholders and are not entitled to cumulative voting for the election of directors. Upon the liquidation, dissolution or winding up of our business, after payment of all liabilities and payment o preferential amounts to the holders of preferred stock, if any, the shares of common stock are entitled to share equally in our remaining assets. Pursuant to our certificate of incorporation, no stockholder has any preemptive rights to subscribe for our securities. The common stock is not subject to redemption.

We do not intend to declare or pay any cash dividends on our common stock. We currently intend to retain future earnings in excess of preferred stock dividends, if any, for operations and to develop and expand our business. We do not anticipate paying any dividends on our common stock in the foreseeable future. Any future determination with respect to the payment of dividends on the common stock will be at the discretion of the Board and will depend on, among other things, operating results, financial condition and capital requirements, the terms of then-existing indebtedness, general business conditions and other factors the Board deems relevant.

 

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CONTANGO ORE, INC.

(An Exploration Stage Company)

NOTES TO BALANCE SHEET—(Continued)

As of September 24, 2010

 

 

4. Commitments and Contingencies

Pursuant to the terms of the Distribution, the Company will assume any claims, litigation or disputes pending as of the effective date on any matters arising in connection with ownership of the properties prior to the effective date. The Company is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the balance sheet.

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholder of Contango Mining Company:

We have audited the accompanying balance sheet of Contango Mining Company (an exploration stage company) (the “Company”) as of June 30, 2010 and the related statements of operations and cash flows for the period from October 15, 2009 (date of inception) through June 30, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Contango Mining Company as of June 30, 2010 and the results of its operations and its cash flows for the period from October 15, 2009 (date of inception) to June 30, 2010, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ UHY LLP
Houston, Texas
September 24, 2010

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Balance Sheet

June 30, 2010

 

     June 30, 2010  

ASSETS

  

CURRENT ASSETS:

  

Prepaid expenses

   $ 233,268   
        

Total current assets

     233,268   
        

PROPERTY AND EQUIPMENT:

  

Mineral properties

     1,008,886   

Accumulated depreciation, depletion and amortization

     —     
        

Total property and equipment, net

     1,008,886   
        

TOTAL ASSETS

   $ 1,242,154   
        

LIABILITIES AND SHAREHOLDER’S EQUITY

  

CURRENT LIABILITIES:

  

Accrued liabilities

   $ 511,156   
        

Total current liabilities

     511,156   
        

COMMITMENTS AND CONTINGENCIES (NOTE 4)

  

SHAREHOLDER’S EQUITY

  

Capital Stock, 3,000 no-par common shares are authorized, 100 shares issued and outstanding at June 30, 2010

     1,833,634   

Deficit accumulated during exploration stage

     (1,102,636
        

SHAREHOLDER’S EQUITY

     730,998   
        

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY

   $ 1,242,154   
        

The accompanying notes are an integral part of these financial statements

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statement of Operations

Inception (October 15, 2009) to June 30, 2010

 

     Period from
Inception
(October 15, 2009) to
June 30, 2010
 

EXPENSES:

  

Delay Rentals

   $ 192,712   

Exploration expenses

     877,762   

Other operating expenses

     30,485   

General and administrative expense

     1,677   
        

Total expenses

     1,102,636   
        

NET LOSS

   $ 1,102,636   
        

EARNINGS (LOSS) PER SHARE

  

Basic and diluted

   $ (11,026

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

  

Basic and diluted

     100   

The accompanying notes are an integral part of these financial statements

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statement of Cash Flows

Inception (October 15, 2009) to June 30, 2010

 

     Period from
Inception
(October 15, 2009) to
June 30, 2010
 

CASH FLOWS FROM OPERATING ACTIVITIES:

  

Net loss

   $ (1,102,636

Adjustments to reconcile net loss to net cash used in operating activities:

  

Changes in operating assets and liabilities:

  

Increase in prepaid expenses

     (233,268

Increase in accrued liabilities

     511,156   
        

Net cash used in operating activities

     (824,748
        

CASH FLOWS FROM INVESTING ACTIVITIES:

  

Acquisition of mineral properties

     (1,008,886
        

Net cash used in investing activities

     (1,008,886
        

CASH FLOWS FROM FINANCING ACTIVITIES:

  

Shareholder’s contributions

     1,833,634   
        

Net cash provided by financing activities

     1,833,634   
        

NET CHANGE IN CASH AND CASH EQUIVALENTS

     —     

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     —     
        

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ —     
        

The accompanying notes are an integral part of these financial statements

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statement of Shareholder’s Equity

 

     Capital Stock      Deficit
Accumulated
During Exploration
    Total
Shareholder’s
 
     Shares      Amount      Stage     Equity  

Balance at Inception (October 15, 2009)

     —         $ —         $ —        $ —     

Shareholder’s contribution

     100         1,833,634         —          1,833,634   

Net loss for the period

     —           —           (1,102,636     (1,102,636
                                  

Balance at June 30, 2010

     100       $ 1,833,634       $ (1,102,636   $ 730,998   
                                  

The accompanying notes are an integral part of these financial statements

 

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Table of Contents

 

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

1. Organization and Business

Contango Mining Company (“Contango Mining”) was formed on October 15, 2009 for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. Contango Mining is a wholly-owned subsidiary of Contango Oil & Gas Company, a Delaware corporation (“Contango”) and is an exploration stage company as defined by Accounting Standards Codification (“ASC”) 915, “Development Stage Entities.” Contango Mining expects to enter into a series of transactions (the “Contribution”) whereby the assets and liabilities of Contango Mining will be contributed to Contango ORE, Inc. The Contribution is expected to be completed by the end of 2010.

Contango Mining has a 50% ownership interest in 647,000 acres acquired from the Tetlin Village Council (the “Tetlin Properties”), the council formed by the governing body for the Native Village of Tetlin, an Alaskan Native Tribe. Contango Mining also holds 109,280 acres in unpatented mining claims from the State of Alaska and 3,520 acres in unpatented Federal mining claims, for the exploration of gold deposits and rare earth elements.

Contango Mining purchased its 50% interest in the Tetlin Properties pursuant to a Joint Exploration Agreement dated as of September 29, 2009 for $1 million plus an overriding royalty granted to JEX of 1%. If the Tetlin Properties are placed into commercial production, Contango Mining shall pay a production royalty which varies from 1.5% to 2.5%.

2. Basis for Presentation

The accompanying financial statements for the period ended June 30, 2010 provide the activity of Contango Mining since its inception and have been prepared in conformity with accounting principles generally accepted in the United States of America. They include all the information required and in the opinion of management, include all adjustments considered necessary for a fair presentation. All such adjustments are of a normal recurring nature.

3. Summary of Significant Accounting Policies

Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

F-11


Table of Contents

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

continued

 

 

Cash and Cash Equivalents

We consider all highly liquid financial instruments having maturities of three months or less at the date of purchase to be cash equivalents.

Revenue Recognition

Contango Mining has yet to realize any revenues. Expenses are presented on the accrual basis of accounting.

Property and Equipment

Mineral property interests include interests in the exploration stage mineral properties acquired. The amount capitalized includes costs paid to acquire mineral property interest as well as the costs paid to the State of Alaska to obtain the lease rights. Exploration costs are expensed as incurred. Development costs are expensed as incurred until the Company obtains proven and probable reserves within its commercially minable properties. Costs of abandoned projects are charged to earnings upon abandonment. Properties determined to be impaired are written-down to the estimated fair value. The Company periodically evaluates whether events or changes in circumstances indicate that the carrying value of mineral property interests and related property, plant and equipment may not be recoverable.

The amounts shown as costs incurred include 100% of the costs pertaining to the properties, notwithstanding Contango Mining’s 50% interest in the properties prior to September 15, 2010. In accordance with the Joint Exploration Agreement, Contango Mining was responsible for 100% of expenditures related to these mineral properties. During the period ending June 30, 2010, Contango Mining incurred approximately $2.1 million in costs to acquire and explore mineral properties as follows:

 

     Period Ended June 30,
2010
 

Acquisition of Mineral Properties

   $ 1,008,886   

Exploration costs

     1,070,474   
        

Total costs incurred

   $ 2,079,360   
        

4. Commitments and Contingencies

Pursuant to the terms of the Distribution, Contango ORE, Inc. will assume any claims, litigation or disputes pending as of the effective date on any matters arising in connection with ownership of the Properties prior to the effective date. Contango Mining is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Statement of Operations.

 

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Table of Contents

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

continued

 

 

5. Subsequent Events

As of September 15, 2010, Contango Mining acquired the remaining 50% of the Tetlin Properties and the State of Alaska and Federal unpatented mining claims, in exchange for a 2% overriding royalty interest (“ORRI”). Contango Mining was previously committed to a 1% ORRI to this third-party. When combined with the production royalty payable on the Tetlin Properties, Contango Mining is now committed to a 3% ORRI to the third party and a 3% to 5% ORRI to the Tetlin Village Council.

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Balance Sheets

(Unaudited)

 

     September 30,
2010
    June 30,
2010
 

ASSETS

    

CURRENT ASSETS:

    

Prepaid expenses

   $ 70,178      $ 233,268   
                

Total current assets

     70,178        233,268   
                

PROPERTY, PLANT AND EQUIPMENT:

    

Mineral properties

     1,008,886        1,008,886   

Accumulated depreciation, depletion and amortization

     —          —     
                

Total property, plant and equipment, net

     1,008,886        1,008,886   
                

TOTAL ASSETS

   $ 1,079,064      $ 1,242,154   
                

LIABILITIES AND SHAREHOLDER’S EQUITY

    

CURRENT LIABILITIES:

    

Accrued liabilities

   $ 62,811      $ 511,156   
                

Total current liabilities

     62,811        511,156   
                

COMMITMENTS AND CONTINGENCIES (NOTE 4)

    

SHAREHOLDER’S EQUITY:

    

Capital Stock, 3,000 no-par common shares are authorised, 100 shares issued and outstanding at September 30, 2010 and June 30, 2010

     2,981,017        1,833,634   

Deficit accumulated during exploration stage

     (1,964,764     (1,102,636
                

SHAREHOLDER’S EQUITY

     1,016,253        730,998   
                

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY

   $ 1,079,064      $ 1,242,154   
                

The accompanying notes are an integral part of these financial statements

 

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Table of Contents

 

CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statements of Operations

(Unaudited)

 

     Quarter ended
September 30, 2010
    Period from
Inception
(October 15, 2009) to
September 30, 2010
 

EXPENSES:

    

Delay Rentals

   $ 38,524      $ 216,391   

Exploration expenses

     729,904        1,607,666   

Other operating expenses

     53,450        98,780   

General and administrative expense

     40,250        41,927   
                

Total expenses

     862,128        1,964,764   
                

NET LOSS

   $ 862,128      $ 1,964,764   
                

EARNINGS (LOSS) PER SHARE

    

Basic and diluted

   $ (8,621   $ (19,648

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

    

Basic and diluted

     100        100   

The accompanying notes are an integral part of these financial statements

 

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CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statements of Cash Flows

(Unaudited)

 

     Quarter ended
September 30, 2010
    Period from
Inception
(October 15, 2009) to
September 30, 2010
 

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net loss

   $ (862,128   $ (1,964,764

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Changes in operating assets and liabilities:

    

Decrease (increase) in prepaid expenses

     163,090        (70,178

Increase (decrease) in other accrued liabilities

     (448,345     62,811   
                

Net cash used in operating activities

     (1,147,383     (1,972,131
                

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Acquisition of natural gas and oil producing properties

     —          (1,008,886
                

Net cash used in investing activities

     —          (1,008,886
                

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Shareholder’s contributions

     1,147,383        2,981,017   
                

Net cash provided by financing activities

     1,147,383        2,981,017   
                

NET CHANGE IN CASH AND CASH EQUIVALENTS

     —          —     

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     —          —     
                

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ —        $ —     
                

The accompanying notes are an integral part of these financial statements

 

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Table of Contents

 

CONTANGO MINING COMPANY

(An Exploration Stage Company)

Statement of Shareholder’s Equity

(Unaudited)

 

     Capital Stock      Deficit
Accumulated
During
Exploration
    Total
Shareholder’s
 
     Shares      Amount      Stage     Equity  

Balance at Inception (October 15, 2009)

     —         $ —         $ —        $ —     

Shareholder’s contribution

     100         1,833,634           1,833,634   

Net loss for the period

           (1,102,636     (1,102,636
                                  

Balance at June 30, 2010

     100       $ 1,833,634       $ (1,102,636   $ 730,998   
                                  

Shareholder’s contribution

     —           1,147,383           1,147,383   

Net loss for the period

           (862,128     (862,128
                                  

Balance at September 30, 2010

     100       $ 2,981,017       $ (1,964,764   $ 1,016,253   
                                  

The accompanying notes are an integral part of these financial statements

 

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Table of Contents

 

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Business

Contango Mining Company (“Contango Mining”) was formed on October 15, 2009 for the purpose of engaging in exploration in the State of Alaska for (i) gold and associated minerals and (ii) rare earth elements. Contango Mining is a wholly-owned subsidiary of Contango Oil & Gas Company, a Delaware corporation (“Contango”) and is an exploration stage company as defined by Accounting Standards Codification (“ASC”) 915, “Development Stage Entities.” Contango Mining expects to enter into a series of transactions (the “Contribution”) whereby the assets and liabilities of Contango Mining will be contributed to Contango ORE, Inc. The Contribution is expected to be completed by the end of 2010.

Contango Mining has a 100% ownership interest in 647,000 acres acquired from the Tetlin Village Council (the “Tetlin Properties”), the council formed by the governing body for the Native Village of Tetlin, an Alaskan Native Tribe. Contango Mining also holds 109,280 acres in unpatented mining claims from the State of Alaska and 3,520 acres in unpatented Federal mining claims, for the exploration of gold deposits and rare earth elements.

Contango Mining purchased a 50% interest in the Tetlin Properties pursuant to a Joint Exploration Agreement dated as of September 29, 2009 for $1 million plus an overriding royalty granted to JEX of 1%. If the Tetlin Properties are placed into commercial production, Contango Mining shall pay a production royalty which varies from 1.5% to 2.5%. On September 15, 2010, Contango Mining acquired the remaining 50% of the Tetlin Properties and the State of Alaska and Federal unpatented mining claims from JEX, in exchange for increasing JEX’s overriding royalty interest (“ORRI”) on the Tetlin Properties and mining properties to 3%.

2. Basis for Presentation

The accompanying unaudited financial statements for the quarter ended September 30, 2010 and for the period from Inception (October 15, 2009) to September 30, 2010 were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, in the opinion of management, include all adjustments required for a fair statement of such financial statements in accordance with accounting principles generally accepted in the United States of America. All such adjustments are of a normal recurring nature. Such unaudited financial statements should be read in conjunction with the audited financial statements and notes to the financial statements. The results of operations for the three months ended September 30, 2010 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2011.

3. Summary of Significant Accounting Policies

Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

F-18


Table of Contents

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS—(Continued)

(Unaudited)

 

 

Cash and Cash Equivalents

We consider all highly liquid financial instruments having maturities of three months or less at the date of purchase to be cash equivalents.

Revenue Recognition

Contango Mining has yet to realize any revenues. Expenses are presented on the accrual basis of accounting.

Property and Equipment

The amount capitalized includes costs paid to acquire mineral property interest as well as the costs paid to the State of Alaska to obtain the lease rights. Exploration costs are expensed as incurred. Development costs are expensed as incurred until the Company obtains proven and probable reserves within its commercially minable properties. Costs of abandoned projects are charged to earnings upon abandonment. Properties determined to be impaired are written-down to the estimated fair value. The Company periodically evaluates whether events or changes in circumstances indicate that the carrying value of mineral property interests and related property, plant and equipment may not be recoverable.

The amounts shown as costs incurred include 100% of the costs pertaining to the properties, notwithstanding Contango Mining’s 50% interest in the properties prior to September 15, 2010. In accordance with the Joint Exploration Agreement Contango was responsible for 100 % of expenditures related to these mineral properties. During the quarter ended September 30, 2010 we incurred approximately $0.8 million to explore mineral properties. During the period from Inception to September 30, 2010, we incurred approximately $1.0 million to acquire and approximately $1.8 million in costs to explore mineral properties as follows:

 

     Quarter ended
September 30, 2010
     Period from
Inception
(October 15, 2009) to
September 30, 2010
 
     (Unaudited)      (Unaudited)  

Acquisition of Mineral Interests

   $ —         $ 1,008,886   

Exploration costs and delay rentals

     768,428         1,824,057   
                 

Total costs incurred

   $ 768,428       $ 2,832,943   
                 

On September 15, 2010, Contango Mining acquired the remaining 50% of the Tetlin Properties and the State of Alaska and Federal unpatented mining claims from JEX, in exchange for increasing the ORRI in the Tetlin Properties and mining claims to 3%. Contango Mining was previously committed to a 1% ORRI on the Tetlin Properties. When combined with the production royalty payable on the Tetlin Properties, Contango Mining is now committed to a 3% ORRI to the third party and a 3% to 5% ORRI to the Tetlin Village Council.

Reclassifications

Certain reclassifications have been made to the expenses included in the Statement of Operations for the period from Inception (October 15, 2009) to June 30, 2010 in order to conform with the quarter ended September 30, 2010 presentation. These reclassifications were not material.

 

F-19


Table of Contents

CONTANGO MINING COMPANY

(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS—(Continued)

(Unaudited)

 

 

4. Commitments and Contingencies

Pursuant to the terms of the Distribution, Contango ORE, Inc. will assume any claims, litigation or disputes pending as of the effective date on any matters arising in connection with ownership of the Properties prior to the effective date. Contango Mining is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial position or results of operations.

 

F-20

 

Exhibit 3.1

LOGO

I , JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF INCORPORATION OF “CONTANGO ORE, INC .” , FILED IN THIS OFFICE ON THE FIRST DAY OF SEPTEMBER, A. D . 2010, AT 4:27 O’CLOCK P. M.

A FILED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO THE NEW CASTLE COUNTY RECORDER OF DEEDS.

LOGO


 

  State of Delaware
  Secretary of State
  Division of Corporations
  Delivered 04:53 PM 09/01/2010
  FILED 04:27 PM 09/01/2010
  SRV 100878141 – 4867114 FILE

CERTIFICATE OF INCORPORATION

OF

CONTANGO ORE, INC.

 

 

I, the undersigned, for the purpose of incorporating and organizing a corporation under the General Corporation Law of Delaware, do execute this Certificate of Incorporation and do hereby certify as follows:

ARTICLE I

The name of the Corporation is: CONTANGO ORE, INC.

ARTICLE II

 

A. The address of the Corporation’s registered office in the State of Delaware is 2711 Centerville Road, Suite 400, in the City of Wilmington, County of New Castle, 19808 and its registered agent at such address is Corporation Service Company.

 

B.

The name and mailing address of the incorporator is Takako Muramatsu, Morgan, Lewis & Bockius LLP, 300 South Grand Avenue, 22 nd Floor, Los Angeles, California 90071.

ARTICLE III

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.

ARTICLE IV

The Corporation is authorized to issue two classes of shares of stock to be designated common stock (“Common Stock”) and preferred stock (“Preferred Stock”). The number of shares of Common Stock authorized to be issued is thirty million (30,000,000), par value $0.01 per share, and the number of shares of Preferred Stock authorized to be issued is fifteen million (15,000,000), par value $0.01 per share; the total number of shares of stock which the Corporation is authorized to issue is forty-five million (45,000,000).


 

ARTICLE V

All or any of the shares of Preferred Stock shall be issued in one or more series, and consist of such number of shares and have such voting powers, full or limited, or no voting powers, and such designations, preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof, as shall be stated in the resolution or resolutions providing for the issuance of such series adopted by the Board of Directors of the Corporation (the “Board of Directors”), and the Board of Directors is hereby expressly vested with authority, to the full extent now or hereafter provided by law, to adopt any such resolution or resolutions.

ARTICLE VI

In furtherance and not in limitation of the powers conferred by the laws of the State of Delaware, the Board of Directors is expressly authorized to adopt, alter, amend and repeal the Bylaws of the Corporation, in the manner provided in the Bylaws of the Corporation. The stockholders of the Corporation are also authorized to alter or repeal any bylaw whether adopted by them or otherwise; provided, however, that the affirmative vote of 66 and 2/3 percent of the voting power of the capital stock of the Corporation entitled to vote thereon, voting together as a single class, shall be required for stockholders to adopt, amend, alter or repeal any provision of the Bylaws of the Corporation.

ARTICLE VII

Subject to the rights of the holders of any series of Preferred Stock to elect additional directors under specified circumstances, the number of directors of the Corporation shall be fixed from time to time by a Bylaw of the Corporation or amendment thereof duly adopted by the Board of Directors.

ARTICLE VIII

Unless and except to the extent that the Bylaws of the Corporation shall so require, election of directors need not be by written ballot.

ARTICLE IX

 

A. Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws of the Corporation may provide.

 

B. The books of the Corporation may be kept (subject to any provision contained in the laws of the State of Delaware) outside of the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

 

2


 

ARTICLE X

The Board of Directors of the Corporation may make Bylaws and from time to time may alter, amend or repeal Bylaws.

ARTICLE XI

No action that is required or permitted to be taken by the stockholders of the Corporation at any annual or special meeting of stockholders may be effected by written consent of the stockholders in lieu of a meeting of stockholders.

ARTICLE XII

A director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the General Corporation Law of Delaware as the same exists or may hereafter be amended. If the General Corporation Law of Delaware is amended after the date of the filing of this Certificate of Incorporation to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law of Delaware as so amended. Any repeal or modification of this Article by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time, or increase the liability of any director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

ARTICLE XIII

 

A. The Corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person (an “Indemnitee”) who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or Proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he, or a person for whom he is the legal representative, is or was a director or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys’ fees) reasonably incurred by such Indemnitee. Notwithstanding the preceding sentence, except as otherwise provided in Section C of this Article, the Corporation shall be required to indemnify an Indemnitee in connection with a Proceeding (or part thereof) commenced by such Indemnitee only if the commencement of such Proceeding (or part thereof) by the Indemnitee was authorized by the Board of Directors of the Corporation.

 

3


 

B. The Corporation shall pay the expenses (including attorneys’ fees) incurred by an Indemnitee in defending any Proceeding in advance of its final disposition; provided , however , that, to the extent required by law, such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the Indemnitee to repay all amounts advanced if it should be ultimately determined that the Indemnitee is not entitled to be indemnified under this Article or otherwise.

 

C. If a claim for indemnification or payment of expenses under this Article is not paid in full within sixty days after a written claim therefor by the Indemnitee has been received by the Corporation, the Indemnitee may file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any such action the Corporation shall have the burden of proving that the Indemnitee is not entitled to the requested indemnification or payment of expenses under applicable law.

 

D. The rights conferred on any Indemnitee by this Article shall not be exclusive of any other rights which such Indemnitee may have or hereafter acquire under any statute, provision of this Certificate of Incorporation, Bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

 

E. The Corporation’s obligation, if any, to indemnify or to advance expenses to any Indemnitee who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity shall be reduced by any amount such Indemnitee may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or nonprofit enterprise.

 

F. Any repeal or modification of the foregoing provisions of this Article shall not adversely affect any right or protection hereunder of any Indemnitee in respect of any act or omission occurring prior to the time of such repeal or modification.

 

G. This Article shall not limit the right of the Corporation, to the extent and in the manner permitted by law, to indemnify and to advance expenses to persons other than Indemnitees when and as authorized by appropriate corporate action.

ARTICLE XIV

The Corporation hereby reserves the right at any time and from time to time to amend, alter, change, or repeal any provisions contained in this Certificate of Incorporation, and other provisions authorized by the laws of the State of Delaware at the time in force may be added or inserted, in the manner now or hereafter prescribed by law, and all rights, preferences, and privileges of whatsoever nature conferred upon stockholders, directors, or any other persons whomsoever by or pursuant to this Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Article.

 

4


 

IN WITNESS WHEREOF, I have signed this Certificate this 20th day of August, 2010.

 

LOGO

Takako Muramatsu
Incorporator

 

5

 

Exhibit 3.2

BYLAWS

OF

CONTANGO ORE, INC.

****

INCORPORATED UNDER THE LAWS

OF THE

STATE OF DELAWARE

ON

September 1, 2010

****

LAW OFFICES

OF

MORGAN, LEWIS & BOCKIUS LLP

300 SOUTH GRAND AVENUE, 22ND FLOOR

LOS ANGELES, CALIFORNIA 90071-3132


 

TABLE OF CONTENTS

 

         Page  
ARTICLE I    OFFICES AND RECORDS      1   

Section 1.1

 

Delaware Office

     1   

Section 1.2

 

Other Offices

     1   

Section 1.3

 

Books and Records

     1   

ARTICLE II    STOCKHOLDERS

     1   

Section 2.1

 

Annual Meeting

     1   

Section 2.2

 

Special Meetings

     1   

Section 2.3

 

Place of Meeting

     1   

Section 2.4

 

Notice of Meeting

     1   

Section 2.5

 

Quorum and Adjournment

     2   

Section 2.6

 

Proxies

     2   

Section 2.7

 

Notice of Stockholder Business and Nominations

     3   

Section 2.8

 

Procedure for Election of Directors

     5   

Section 2.9

 

Organization of Stockholders Meetings

     5   

Section 2.10

 

Voting

     5   

Section 2.11

 

Inspectors of Elections; Opening and Closing the Polls

     6   

Section 2.12

 

No Action Without Annual or Special Meeting

     6   

ARTICLE III    BOARD OF DIRECTORS

     7   

Section 3.1

 

General Powers

     7   

Section 3.2

 

Number, Tenure, Qualifications and Vacancies

     7   

Section 3.3

 

Place of Meeting

     7   

Section 3.4

 

Regular Meetings

     7   

Section 3.5

 

Special Meetings

     7   

Section 3.6

 

Notice

     8   

Section 3.7

 

Conference Telephone Meetings

     8   

Section 3.8

 

Action Without Meeting

     8   

Section 3.9

 

Quorum

     8   

Section 3.10

 

Organization

     8   

Section 3.11

 

Committees

     8   

Section 3.12

 

Removal

     9   

 

-i-


TABLE OF CONTENTS

(continued)

 

     Page  
ARTICLE IV    OFFICERS      9   

Section 4.1

 

Elected Officers

     9   

Section 4.2

 

Election and Term of Office

     10   

Section 4.3

 

The Chairman of the Board

     10   

Section 4.4

 

Chief Executive Officer

     10   

Section 4.5

 

Chief Operating Officer

     10   

Section 4.6

 

Chief Financial Officer

     10   

Section 4.7

 

The President and Vice Presidents

     11   

Section 4.8

 

The Secretary

     11   

Section 4.9

 

The Treasurer

     11   

Section 4.10

 

Removal

     12   

Section 4.11

 

Additional Officers

     12   

Section 4.12

 

Compensation of Officers

     12   
ARTICLE V    STOCK CERTIFICATES AND TRANSFERS      12   

Section 5.1

 

Certificates and Transfers

     12   

ARTICLE VI    INDEMNIFICATION

     13   

Section 6.1

 

Right to Indemnification

     13   

Section 6.2

 

Prepayment of Expenses

     13   

Section 6.3

 

Claims

     13   

Section 6.4

 

Survival; Preservation of Other Rights

     13   

Section 6.5

 

Other Sources

     14   

Section 6.6

 

Amendment or Repeal

     14   

Section 6.7

 

Other Indemnification and Prepayment of Expenses

     14   
ARTICLE VII    MISCELLANEOUS PROVISIONS      14   

Section 7.1

 

Fiscal Year

     14   

Section 7.2

 

Dividends

     14   

Section 7.3

 

Corporate Seal

     14   

Section 7.4

 

Checks, Notes, Etc.

     14   

Section 7.5

 

Loans

     15   

Section 7.6

 

Waiver of Notice

     15   

Section 7.7

 

Audits

     15   

 

-ii-


TABLE OF CONTENTS

(continued)

 

         Page  

Section 7.8

 

Resignations

     15   

Section 7.9

 

Contracts

     15   

Section 7.10

 

Proxies

     16   

ARTICLE VIII    AMENDMENTS

     16   

Section 8.1

 

Amendments

     16   

 

-iii-


 

BYLAWS

OF

CONTANGO ORE, INC.

(the “Corporation”)

Incorporated under the Laws of the State of Delaware

ARTICLE I

OFFICES AND RECORDS

Section 1.1 Delaware Office . The address of the Corporation’s registered office in the State of Delaware is to be located at 2711 Centerville Road, Suite 400, in the City of Wilmington, County of New Castle, 19808 and its registered agent at such address is Corporation Service Company.

Section 1.2 Other Offices . The Corporation may have such other offices, either within or without the State of Delaware, as the Board of Directors may designate or as the business of the Corporation may from time to time require.

Section 1.3 Books and Records . The books and records of the Corporation may be kept at the Corporation’s office in Houston, Texas or at such other locations within or outside the State of Delaware as may from time to time be designated by the Board of Directors.

ARTICLE II

STOCKHOLDERS

Section 2.1 Annual Meeting . The annual meeting of the stockholders of the Corporation shall be held on such date, at such time and at such place within or without the State of Delaware as may be fixed by resolution of the Board of Directors. The Board of Directors may determine that an annual meeting shall not be held at any place, but shall instead be held solely by means of remote communication.

Section 2.2 Special Meetings . Except as otherwise provided in the Certificate of Incorporation of the Corporation (the “Certificate of Incorporation”), special meetings of the shareholders may be called at any time by the president or a majority of the Board of Directors acting with or without a meeting, or the holder or holders of one-half of all the shares outstanding and entitled to vote thereat.

Section 2.3 Place of Meeting . The Board of Directors may designate the place of meeting for any meeting of the stockholders. If no designation is made by the Board of Directors, the place of meeting shall be the principal office of the Corporation.

Section 2.4 Notice of Meeting .

(A) Except as otherwise provided by law, by the Certificate of Incorporation or by these Bylaws, a written or printed notice, stating the place, day and hour of the meeting and the


purpose or purposes for which the meeting is called, shall be prepared and delivered by the Corporation not less than ten (10) days nor more than sixty (60) days before the date of the meeting, either personally, or by mail, to each stockholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with postage thereon prepaid, addressed to the stockholder at his address as it appears on the stock transfer books of the Corporation. Such further notice shall be given as may be required by law. Meetings may be held without notice if all stockholders entitled to vote are present (except as otherwise provided by law), or if notice is waived by those not present. Any previously scheduled meeting of the stockholders may be postponed and (unless the Certificate of Incorporation otherwise provides) any special meeting of the stockholders may be canceled, by resolution of the Board of Directors upon public notice given prior to the time previously scheduled for such meeting of stockholders. The notice shall state the place, date and hour of the meeting or the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at such meeting, and in the case of a special meeting, the purpose or purposes for which the meeting is called.

(B) The Board of Directors may postpone any meeting of stockholders or cancel any special meeting of stockholders by notice to the stockholders prior to the time scheduled for the meeting.

Section 2.5 Quorum and Adjournment . Except as otherwise provided by law or by the Certificate of Incorporation, the holders of a majority of the voting power of the outstanding shares of the Corporation entitled to vote generally in the election of directors (the “Voting Stock”), represented in person or by proxy, shall constitute a quorum at a meeting of stockholders, except that when specified business is to be voted on by a class or series voting separately as a class or series, the holders of a majority of the voting power of the shares of such class or series shall constitute a quorum for the transaction of such business. The chairman of the meeting or a majority of the shares of Voting Stock so represented may adjourn the meeting from time to time, whether or not there is such a quorum (or, in the case of specified business to be voted on by a class or series, the chairman or a majority of the shares of such class or series so represented may adjourn the meeting with respect to such specified business). No notice of the time and place of adjourned meetings need be given except as required by law. The stockholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. At the adjourned meeting, the stockholders or the holders of any class of stock entitled to vote separately as a class, as the case may be, may transact any business which might have been transacted by them at the original meeting.

Section 2.6 Proxies . At all meetings of stockholders, a stockholder may vote by proxy executed in writing by the stockholder or as may be permitted by law, or by his duly authorized attorney-in-fact. Such proxy must be filed with the Secretary of the Corporation or his representative at or before the time of the meeting.

 

-2-


 

Section 2.7 Notice of Stockholder Business and Nominations.

(A) Annual Meetings of Stockholders

(1) Nominations of persons for election to the Board of Directors of the Corporation and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders (a) pursuant to the Corporation’s notice of meeting delivered pursuant to Section 2.4 of these Bylaws, (b) by or at the direction of the Chairman of the Board or the Board of Directors or (c) by any stockholder of the Corporation who is entitled to vote at the meeting, who complied with the notice procedures set forth in clauses (2) and (3) of this paragraph (A) of this Bylaw and who was a stockholder of record at the time such notice is delivered to the Secretary of the Corporation.

(2) For nominations or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (c) of paragraph (A)(1) of this Bylaw, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such other business must otherwise be a proper matter for stockholder action. To be timely, a stockholder’s notice shall be delivered to the Secretary at the principal executive offices of the Corporation not less than sixty (60) days nor more than ninety (90) days prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than twenty (20) days, or delayed by more than sixty (60) days, from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the ninetieth day prior to such annual meeting and not later than the close of business on the later of the sixtieth day prior to such annual meeting or the tenth day following the day on which such notice of the date of the meeting was mailed or public announcement of the date of such meeting is first made. Such stockholder’s notice shall set forth (a) as to each person whom the stockholder proposes to nominate for election or reelection as a director, all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 14a-11 thereunder, including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected; (b) as to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made; and (c) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such stockholder, as they appear on the Corporation’s books, and of such beneficial owner and (ii) the class and number of shares of the Corporation which are owned beneficially and of record by such stockholder and such beneficial owner. In no event shall the public announcement of an adjournment of an annual meeting commence a new time period for the giving of a stockholder’s notice as described above.

 

-3-


(3) Notwithstanding anything in the second sentence of paragraph (A)(2) of this Bylaw to the contrary, in the event that the number of directors to be elected to the Board of Directors of the Corporation is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board of Directors made by the Corporation at least seventy (70) days prior to the first anniversary of the preceding year’s annual meeting, a stockholder’s notice required by this Bylaw shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be delivered to the Secretary at the principal executive offices of the Corporation not later than the close of business on the tenth day following the day such notice of the meeting was mailed or on which such public announcement is first made by the Corporation.

(B) Special Meetings of Stockholders . Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation’s notice of meeting delivered pursuant to Section 2.4 of these Bylaws. Nominations of persons for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation’s notice of meeting (a) by or at the direction of the Board of Directors or (b) by any stockholder of the Corporation who is entitled to vote at the meeting, who complies with the notice procedures set forth in this Bylaw and who is a stockholder of record at the time such notice is delivered to the Secretary of the Corporation. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any such stockholder may nominate a person or persons (as the case may be), for election to such position(s) as are specified in the Corporation’s Notice of Meeting, if the stockholder’s notice as required by paragraph (A)(2) of this Bylaw shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the ninetieth day prior to such special meeting and not later than the close of business on the later of the sixtieth day prior to such special meeting or the tenth day following the day such notice of the meeting was mailed or on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall the public announcement of an adjournment of a special meeting commence a new time period for the giving of a stockholders notice as described above.

(C) General .

(1) Only persons who are nominated in accordance with the procedures set forth in this Bylaw shall be eligible to serve as directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Bylaw. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in this Bylaw and, if any proposed nomination or business is not in compliance with this Bylaw, to declare that such defective proposal or nomination shall be disregarded.

(2) For purposes of this Bylaw, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

 

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(3) Notwithstanding the foregoing provisions of this Bylaw, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Bylaw. Nothing in this Bylaw shall be deemed to affect any rights of stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act.

Section 2.8 Procedure for Election of Directors . Election of directors at all meetings of the stockholders at which directors are to be elected shall be by written ballot, and, except as otherwise set forth in the Certificate of Incorporation with respect to the right of the holders of any series of preferred stock or any other series or class of stock to elect additional directors under specified circumstances, an affirmative vote of a majority of the votes cast thereat shall elect directors. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, all other matters submitted to the stockholders at any meeting shall be decided by the affirmative vote of a majority of the voting power of the outstanding Voting Stock present in person or represented by proxy at the meeting and entitled to vote thereon.

Section 2.9 Organization of Stockholders Meetings .

(A) Chief Executive Officer . The Chairman of the Board or, in the absence of the Chairman of the Board, the Chief Executive Officer shall call all meetings of the stockholders to order, and shall act as chairman of such meetings. In the absence of the Chairman of the Board and the Chief Executive Officer, the members of the Board of Directors who are present shall elect a chairman of the meeting.

(B) Secretary . The Secretary of the Corporation shall act as secretary of all meetings of the stockholders; and in the absence of the Secretary, the chairman of the meeting may appoint any person to act as secretary of the meeting. It shall be the duty of the Secretary of the Corporation to prepare and make, at least ten days before every meeting of stockholders, a complete list of stockholders entitled to vote at such meeting, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in the name of each stockholder.

Section 2.10 Voting .

(A) Except as otherwise provided by law or by the Certificate of Incorporation, each stockholder shall be entitled to one vote for each share of the stock of the Corporation registered in the name of such stockholder upon the books of the Corporation. Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for him or her by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. When directed by the presiding officer or upon the demand of any stockholder, the vote upon any matter before a meeting of stockholders shall be

 

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by ballot. Subject to the rights of the holders of any series of preferred stock of the Corporation, directors shall be elected by a plurality of the votes cast at a meeting of stockholders by the stockholders entitled to vote in the election. Except as otherwise provided by law or by the Certificate of Incorporation, whenever any corporate action, other than the election of directors, is to be taken at a meeting of stockholders, it shall be authorized by the affirmative vote of a majority of the shares present in person or represented by proxy and entitled to vote thereon.

(B) Shares of the stock of the Corporation belonging to the Corporation or to another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall neither be entitled to vote nor be counted for quorum purposes.

Section 2.11 Inspectors of Elections; Opening and Closing the Polls.

(A) The Board of Directors by resolution shall, in advance of any meeting of stockholders, appoint one or more inspectors, which inspector or inspectors may include individuals who serve the Corporation in other capacities, including, without limitation, as officers, employees, agents or representatives of the Corporation, to act at the meeting and make a written report thereof. One or more persons may be designated as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate has been appointed to act, or if all inspectors or alternates who have been appointed are unable to act, at a meeting of stockholders, the chairman of the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall have the duties prescribed by the General Corporation Law of the State of Delaware. The inspectors shall: (i) ascertain the number of shares outstanding and the voting power of each; (ii) determine the shares represented at the meeting and the validity of proxies and ballots; (iii) count all votes and ballots; (iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by them; and (v) certify their determination of the number of shares represented at the meeting, and their count of all votes and ballots.

(B) The chairman of the meeting shall fix and announce at the meeting the date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting. No ballots, proxies or votes, nor any revocations thereof or changes thereto, shall be accepted by the inspectors after the closing of the polls.

Section 2.12 No Action Without Annual or Special Meeting . Subject to the rights of the holders of any series of preferred stock or any other series or class of stock as set forth in the Certificate of Incorporation with respect to such series or class, any action required or permitted by the General Corporation Law of the State of Delaware to be taken by the stockholders of the Corporation must be effected at an annual or special meeting of the stockholders and may not be effected by any consent in writing in lieu of a meeting by such stockholders.

 

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ARTICLE III

BOARD OF DIRECTORS

Section 3.1 General Powers . The business and affairs of the Corporation shall be managed by or under the direction of its Board of Directors. In addition to the powers and authorities by these Bylaws expressly conferred upon them, the Board of Directors may exercise all such powers of the Corporation and do all such lawful acts and things as are not by law, by the Certificate of Incorporation or by these Bylaws required to be exercised or done by the stockholders.

Section 3.2 Number, Tenure, Qualifications and Vacancies .

(A) The number of directors of the Company shall be at least three (3) and not more than seven (7). Subject to the foregoing limitations, without amendment of these Bylaws, the number of directors may be fixed or changed by resolution adopted by the vote of the majority of directors in office or by the vote of holders of shares representing a majority of the voting power at any annual meeting, or any special meeting called for that purpose; but no reduction of the number of directors shall have the effect of removing any director prior to the expiration of his term of office.

(B) Except as provided in the Certificate of Incorporation, vacancies caused by any such removal or any vacancy caused by the death or resignation of any director or for any other reason, and any newly created directorship resulting from any increase in the authorized number of directors, may be filled by, the affirmative vote of a majority of the directors then in office, although less than a quorum, or by the stockholders, and any director so elected to fill any such vacancy or newly created directorship shall hold office until the director’s successor is elected and qualified or until the director’s earlier resignation or removal.

(C) When one or more directors shall resign effective at a future date, a majority of the directors then in office, including those who have so resigned, or the stockholders shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office as herein provided in connection with the filling of other vacancies.

Section 3.3 Place of Meeting . The Board of Directors may hold its meetings in such place or places in the State of Delaware or outside the State of Delaware as the Board from time to time shall determine.

Section 3.4 Regular Meetings . A regular meeting of the Board of Directors shall be held without notice other than this Bylaw immediately after, and at the same place as, each annual meeting of stockholders. The Board of Directors may, by resolution, provide the time and place for the holding of additional regular meetings without notice other than such resolution.

Section 3.5 Special Meetings . Special meetings of the Board of Directors shall be called at the request of the Chairman of the Board, the President or a majority of the Board of Directors. The person or persons authorized to call special meetings of the Board of Directors may fix the place and time of the meetings.

 

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Section 3.6 Notice . Notice of any special meeting shall be given to each director at his business or residence in writing or by telephone communication. If mailed, such notice shall be deemed adequately delivered when deposited in the United States mails so addressed, with postage thereon prepaid, at least five days before such meeting. If by facsimile transmission, such notice shall be transmitted at least twenty-four hours before such meeting. If by telephone, the notice shall be given at least twelve hours prior to the time set for the meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice of such meeting, except for amendments to these Bylaws as provided under Section 8.1 of Article VIII hereof. A meeting may be held at any time without notice if all the directors are present (except as otherwise provided by law) or if those not present waive notice of the meeting in writing, either before or after such meeting.

Section 3.7 Conference Telephone Meetings . Members of the Board of Directors, or any committee thereof, may participate in a meeting of the Board of Directors or such committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting.

Section 3.8 Action Without Meeting . Any action required or permitted to be taken at a meeting of the Board of Directors or of a committee thereof may be taken without a meeting if all members of the Board of Directors or the committee, as the case may be, consent thereto in writing or by electronic transmission, and the writing or writings and electronic transmission or transmissions are filed with the minutes of proceedings of the Board of Directors or the committee. Such filings shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

Section 3.9 Quorum . A whole number of directors equal to at least a majority of all of the members of the Board of Directors shall constitute a quorum for the transaction of business, but if at any meeting of the Board of Directors there shall be less than a quorum present, a majority of the directors present may adjourn the meeting from time to time without further notice. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

Section 3.10 Organization . The Chairman of the Board or, in the absence of the Chairman of the Board, the Chief Executive Officer shall preside at all meetings of the Board of Directors. In the absence of the Chairman of the Board and the Chief Executive Officer, a Chairman shall be elected from among the directors present. The Secretary of the Corporation shall act as secretary of all meetings of the directors. In the absence of the Secretary of the Corporation, the Chairman may appoint any person to act as secretary of the meeting.

Section 3.11 Committees .

(A) The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board of Directors may

 

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designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of a committee. In the absence or disqualification of a member of the committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent permitted by law and to the extent provided in a resolution of the Board, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and the affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it; but no such committee shall have power or authority in reference to (a) approving or adopting or recommending to the stockholders, any action or matter expressly required by law to be submitted to stockholders for approval, or (b) adopting, amending or repealing these Bylaws.

(B) Unless the Board of Directors otherwise provides, each committee designated by the Board of Directors may make, alter and repeal rules for the conduct of its business. In the absence of such rules each committee shall conduct its business in the same manner as the Board of Directors conducts its business pursuant to these Bylaws.

Section 3.12 Removal . Any director may be removed without cause at any special meeting of shareholders called for such purpose by the vote of the holders of sixty-six and two-thirds (66 2/3%) of the voting power entitling them to elect directors in place of those to be removed, voting as a single class. In case of any such removal, a new director may be elected at the same meeting for the unexpired term of each director removed. Failure to elect a director to fulfill the unexpired term of any director removed shall be deemed to create a vacancy in the Board of Directors. The terms of this Section 3.12 are subject to any contractual provisions binding on the Corporation from time to time, and such contractual provisions shall control to the extent they conflict with the terms hereof.

ARTICLE IV

OFFICERS

Section 4.1 Elected Officers .

(A) The elected officers of the Corporation shall be a Chairman of the Board, a President, a Secretary, a Treasurer, and such other officers as the Board of Directors from time to time may deem proper. The Chairman of the Board shall be chosen from the directors. All officers chosen by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this Article IV. Such officers shall also have powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof.

(B) All officers, agents and employees shall be subject to removal, with or without cause, at any time by the Board of Directors. The removal of an officer without cause shall be without prejudice to his or her contract rights, if any. The election or appointment of an officer shall not of itself create contract rights.

 

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(C) In addition to the powers and duties of the officers of the Corporation as set forth in these Bylaws, the officers shall have such authority and shall perform such duties as from time to time may be determined by the Board of Directors.

Section 4.2 Election and Term of Office . The elected officers of the Corporation shall be elected annually by the Board of Directors at the regular meeting of the Board of Directors held after each annual meeting of the stockholders. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as convenient. Subject to Section 4.10 of these Bylaws, each officer shall hold office until his successor shall have been duly elected and shall have qualified or until his death or until he shall resign.

Section 4.3 The Chairman of the Board . The Board of Directors may elect a Chairman of the Board from among its members. The Chairman of the Board shall preside at all meetings of the Board of Directors and of the stockholders and shall have all powers and shall perform all duties incident to the office of Chairman of the Board which may be required by law and shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors.

Section 4.4 Chief Executive Officer . The Board of Directors may designate one of the officers of the Corporation to be the Chief Executive Officer of the Corporation. Subject to the control of the Board of Directors, the Chief Executive Officer shall have general charge and control of all the business and affairs of the Corporation and shall have all powers and shall perform all duties incident to the position of Chief Executive Officer which may be required by law and such other duties as are required by the Board of Directors. The Chief Executive Officer shall make reports to the Board of Directors and to the stockholders, and shall see that all orders and resolutions of the Board of Directors and of any committee thereof are carried into effect. The Chief Executive Officer shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by resolution of the Board of Directors.

Section 4.5 Chief Operating Officer . The Board of Directors may designate one of the officers of the Corporation to be the Chief Operating Officer of the Corporation. Subject to the control of the Board of Directors and the Chief Executive Officer, the Chief Operating Officer shall have general charge and control of all the operations of the Corporation and shall have all powers and shall perform all duties incident to the position of Chief Operating Officer. The Chief Operating Officer shall act in a general executive capacity and assist the Chief Executive Officer in the administration and operation of the Corporation’s business and general supervision of its policies and affairs. The Chief Operating Officer shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors or the Chief Executive Officer.

Section 4.6 Chief Financial Officer . The Board of Directors may designate one of the officers of the Corporation to be the Chief Financial Officer of the Corporation. Subject to the control of the Board of Directors and the Chief Executive Officer, the Chief Financial Officer shall have general charge and control of the financial affairs of the Corporation and shall have all powers and shall perform all duties incident to the position of Chief Financial Officer. The Chief Financial Officer shall act in a general executive capacity and assist the Chief Executive Officer in the administration and operation of the Corporation’s financial affairs. The Chief Financial Officer shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors or the Chief Executive Officer.

 

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Section 4.7 The President and Vice Presidents . The Board of Directors may elect a President and one or more Vice Presidents of the Corporation. Subject to the direction of the Board of Directors, the President and each Vice President shall have general supervision of and general management over all the property, business, operations and affairs of the Corporation and shall perform all duties incident to their respective offices which may be required by law and shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors or the Chief Executive Officer. The President may sign, alone or with the Secretary, or an Assistant Secretary, or any other proper officer of the Corporation authorized by the Board of Directors, certificates, contracts, and other instruments of the Corporation as authorized by the Board of Directors.

Section 4.8 The Secretary . The Board of Directors may elect a Secretary of the Corporation. The Secretary shall keep the minutes of all meetings of the Board of Directors and the minutes of all meetings of the stockholders in books provided for that purpose. The Secretary shall attend to the giving or serving of all notices of the Corporation; shall have custody of the corporate seal of the Corporation and shall affix the same to such documents and other papers as the Board of Directors or the Chief Executive Officer shall authorize and direct; shall have charge of the stock certificate books, transfer books and stock ledgers and such other books and papers as the Board of Directors or the Chief Executive Officer shall direct, all of which shall at all reasonable times be open to the examination of any director, upon application, at the principal place of business of the Corporation during normal business hours; and whenever required by the Board of Directors or Chief Executive Officer shall render statements of such accounts. The Secretary shall have all powers and shall perform all duties incident to the office of Secretary and shall also have such other powers and shall perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors or the Chief Executive Officer.

Section 4.9 The Treasurer . The Board of Directors may elect a Treasurer of the Corporation who shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the Corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings and shares. The books of account shall at all reasonable times during normal business hours be open to inspection by any director. The Treasurer shall deposit, or cause to be deposited, all money and other valuables in the name and to the credit of the Corporation with such depositories as may be designated by the Board of Directors. The Treasurer shall disburse, or cause to be disbursed, the funds of the Corporation as may be ordered by the Board of Directors, the Chief Executive Officer or the Chief Financial Officer. The Treasurer shall render to the Board of Directors, to the Chief Executive Officer or to the Chief Financial Officer, whenever requested, an account of all of his or her transactions as treasurer and of the financial condition of the Corporation. If required by the Board of Directors, the Treasurer shall give the Corporation a bond for the faithful discharge of his duties in such amount and with such surety as the Board of Directors shall prescribe. The Treasurer shall have all powers and shall perform all duties incident to the position of Treasurer which may be required by law and shall have such other powers and perform such other duties as may from time to time be assigned by these Bylaws or by the Board of Directors, the Chief Executive Officer or the Chief Financial Officer.

 

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Section 4.10 Removal . Any officer elected by the Board of Directors may be removed by the Board of Directors whenever, in their judgment, the best interests of the Corporation would be served thereby. No elected officer shall have any contractual rights against the Corporation for compensation by virtue of such election beyond the date of the election of his successor, his death, his resignation or his removal, whichever event shall first occur, except as otherwise provided in an employment contract or an employee plan.

Section 4.11 Additional Officers . The Board of Directors may from time to time elect such other officers, including a Controller and one or more Assistant Secretaries, Assistant Treasurers and Assistant Controllers, as the Board may deem advisable and such officers shall have such authority and shall perform such duties as may from time to time be assigned to them by the Board of Directors or the Chief Executive Officer.

The Board of Directors, the Chief Executive Officer or the Secretary of the Corporation may from time to time delegate to any Assistant Secretary or Assistant Secretaries any of the powers or duties assigned to the Secretary of the Corporation; and the Board of Directors, the Chief Executive Officer or the Chief Financial Officer may similarly delegate to the Treasurer, the Controller or any Assistant Treasurer or Assistant Controller any of the powers or duties assigned to the Chief Financial Officer.

Section 4.12 Compensation of Officers . The officers of the Corporation shall be entitled to receive such compensation for their services as shall from time to time be determined by the Board of Directors.

ARTICLE V

STOCK CERTIFICATES AND TRANSFERS

Section 5.1 Certificates and Transfers.

(A) The interest of each stockholder of the Corporation shall be evidenced by certificates for shares of stock in such form as the appropriate officers of the Corporation may from time to time prescribe. The shares of the stock of the Corporation shall be transferred on the books of the Corporation by the holder thereof in person or by his attorney, upon surrender for cancellation of certificates for at least the same number of shares, with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, and with such proof of the authenticity of the signature as the Corporation or its agents may reasonably require.

(B) The certificates of stock shall be signed, countersigned and registered in such manner as the Board of Directors may by resolution prescribe, which resolution may permit all or any of the signatures on such certificates to be in facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer, transfer agent or registrar at the date of issue.

 

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ARTICLE VI

INDEMNIFICATION

Section 6.1 Right to Indemnification . The Corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person (an “Indemnitee”) who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he, or a person for whom he is the legal representative, is or was a director or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys’ fees) reasonably incurred by such Indemnitee. Notwithstanding the preceding sentence, except as otherwise provided in Section 6.3, the Corporation shall be required to indemnify an Indemnitee in connection with a proceeding (or part thereof) commenced by such Indemnitee only if the commencement of such proceeding (or part thereof) by the Indemnitee was authorized by the Board of Directors of the Corporation.

Section 6.2 Prepayment of Expenses . The Corporation shall pay the expenses (including attorneys’ fees) incurred by an Indemnitee in defending any proceeding in advance of its final disposition, provided, however , that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the Indemnitee to repay all amounts advanced if it should be ultimately determined that the Indemnitee is not entitled to be indemnified under this Article VI or otherwise.

Section 6.3 Claims . If a claim for indemnification or payment of expenses under this Article VI is not paid in full within sixty days after a written claim therefor by the Indemnitee has been received by the Corporation, the Indemnitee may file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any such action the Corporation shall have the burden of proving that the Indemnitee is not entitled to the requested indemnification or payment of expenses under applicable law.

Section 6.4 Survival; Preservation of Other Rights . The foregoing indemnification provisions shall be deemed to be a contract between the Corporation and each director, officer, employee and agent who serves in any such capacity at any time while these provisions as well as the relevant provisions of the Delaware General Corporation Law are in effect and any repeal or modification thereof shall not affect any right or obligation then existing with respect to any state of facts then or previously existing or any action, suit, or proceeding previously or thereafter brought or threatened based in whole or in part upon any such state of facts. Such a contract right may not be modified retroactively without the consent of such director, officer, employee or agent.

 

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The rights to indemnification and advancement of expenses provided by this Article VI shall not be deemed exclusive of any other rights to which a person seeking indemnification or advancement of expenses may be entitled under any Bylaw, agreement, insurance policy, vote of stockholders or disinterested directors or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. The Corporation may enter into an agreement with any of its directors, officers, employees or agents providing for indemnification and advancement of expenses, including attorneys fees, that may change, enhance, qualify or limit any right to indemnification or advancement of expenses created by this Article VI.

Section 6.5 Other Sources . The Corporation’s obligation, if any, to indemnify or to advance expenses to any Indemnitee who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity shall be reduced by any amount such Indemnitee may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or nonprofit entity.

Section 6.6 Amendment or Repeal . Any repeal or modification of the foregoing provisions of this Article VI shall not adversely affect any right or protection hereunder of any Indemnitee in respect of any act or omission occurring prior to the time of such repeal or modification.

Section 6.7 Other Indemnification and Prepayment of Expenses . This Article VI shall not limit the right of the Corporation, to the extent and in the manner permitted by law, to indemnify and to advance expenses to persons other than Indemnitees when and as authorized by appropriate corporate action.

ARTICLE VII

MISCELLANEOUS PROVISIONS

Section 7.1 Fiscal Year . The fiscal year-end of the corporation shall be such date as may be fixed from time to time by resolution of the Board of Directors.

Section 7.2 Dividends . The Board of Directors may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and its Certificate of Incorporation.

Section 7.3 Corporate Seal . The corporate seal shall have inscribed the name of the Corporation thereon and shall be in such form as may be approved from time to time by the Board of Directors.

Section 7.4 Checks, Notes, Etc.

(A) All checks, drafts, bills of exchange, acceptances, notes or other obligations or orders for the payment of money shall be signed and, if so required by the Board of Directors, countersigned by such officers of the Corporation and other persons as the Board of Directors from time to time shall designate.

 

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(B) Checks, drafts, bills of exchange, acceptances, notes, obligations and orders for the payment of money made payable to the Corporation may be endorsed for deposit to the credit of the Corporation with a duly authorized depository by the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Secretary, the Controller, any Assistant Controller and such other officers or persons, if any, as the Board of Directors from time to time may designate.

Section 7.5 Loans . No loans and no renewals of any loans shall be contracted on behalf of the Corporation except as authorized by the Board of Directors. When authorized so to do, any officer or agent of the Corporation may effect loans and advances for the Corporation from any bank, trust company or other institution or from any firm, corporation or individual, and for such loans and advances may make, execute and deliver promissory notes, bonds or other evidences of indebtedness of the Corporation. When authorized so to do, any officer or agent of the Corporation may pledge, hypothecate or transfer, as security for the payment of any and all loans, advances, indebtedness and liabilities of the Corporation, any and all stocks, securities and other personal property at any time held by the Corporation, and to that end may endorse, assign and deliver the same. Such authority may be general or confined to specific instances.

Section 7.6 Waiver of Notice . Whenever any notice is required to be given to any stockholder or director of the Corporation under the provisions of the General Corporation Law of the State of Delaware, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the stockholders of the Board of Directors need be specified in any waiver of notice of such meeting.

Section 7.7 Audits . The accounts, books and records of the Corporation shall be audited upon the conclusion of each fiscal year by an independent certified public accountant selected by the Board of Directors, and it shall be the duty of the Board of Directors to cause such audit to be made annually.

Section 7.8 Resignations . Any director or any officer, whether elected or appointed, may resign at any time by serving written notice of such resignation on the Chairman of the Board, the President or the Secretary, and such resignation shall be deemed to be effective as of the close of business on the date said notice is received by the Chairman of the Board, the President, or the Secretary or at such later date as is stated therein. No formal action shall be required of the Board of Directors or the stockholders to make any such resignation effective.

Section 7.9 Contracts . Except as otherwise required by law, the Certificate of Incorporation or these Bylaws, any contracts or other instruments may be executed and delivered in the name and on the behalf of the Corporation by such officer or officers of the Corporation as the Board of Directors may from time to time direct. Such authority may be general or confined to specific instances as the Board may determine. The Chairman of the Board, the President or any Vice President may execute bonds, contracts, deeds, leases and other instruments to be made

 

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or executed for or on behalf of the Corporation. Subject to any restrictions imposed by the Board of Directors or the Chairman of the Board, the President or any Vice President of the Corporation may delegate contractual powers to others under such officer’s jurisdiction, it being understood, however, that any such delegation of power shall not relieve such officer of responsibility with respect to the exercise of such delegated power.

Section 7.10 Proxies . Unless otherwise provided by resolution adopted by the Board of Directors, the Chairman of the Board, the President or any Vice President may from time to time appoint an attorney or attorneys or agent or agents of the Corporation, in the name and on behalf of the Corporation, to cast the votes which the Corporation may be entitled to cast as the holder of stock or other securities in any other corporation or other entity, any of whose stock or other securities may be held by the Corporation, at meetings of the holders of the stock or other securities of such other corporation or other entity, or to consent in writing, in the name of the Corporation as such holder, to any action by such other corporation or other entity, and may instruct the person or persons so appointed as to the manner of casting such votes or giving such consent, and may execute or cause to be executed in the name and on behalf of the Corporation and under its corporate seal or otherwise, all such written proxies or other instruments as such officer may deem necessary or proper in the premises.

ARTICLE VIII

AMENDMENTS

Section 8.1 Amendments . These Bylaws may be amended, altered, added to, rescinded or repealed at any meeting of the Board of Directors or of the stockholders, provided notice of the proposed change was given in the notice of the meeting and, in the case of a meeting of the Board of Directors, in a notice given no less than twenty-four hours prior to the meeting; provided, however, that, notwithstanding any other provisions of the Certificate of Incorporation, these Bylaws or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any affirmative vote of the holders of any particular class or series of the capital stock of the Corporation required by law, the Certificate of Incorporation, any Certificate of Designation for any series of Preferred Stock, or these Bylaws, the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of the Voting Stock of the Corporation, voting together as a single class, shall be required in order for stockholders to alter, amend or repeal any provision of these Bylaws or to adopt any additional bylaws. Any amendment, recission, addition or alteration of these Bylaws by the Board of Directors shall require the affirmative vote of at least two-thirds of the members of the Board of Directors.

 

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CERTIFICATE OF ADOPTION OF BYLAWS

OF

CONTANGO ORE, INC.

This is to certify:

That I am the duly elected, qualified and acting Secretary of CONTANGO ORE, INC. (the “Corporation”) and the attached bylaws were adopted as the bylaws of the Corporation as of September 15, 2010 by the Board of Directors of the Corporation.

Dated effective as of the 15 day of September, 2010.

 

/s/ Sergio Castro

Sergio Castro, Secretary

 

Exhibit 4.1

LOGO

 

     CUSIP         XXXXXX XX X   
     Holder ID         XXXXXXXXXX   
Contango ORE, Inc.      Insurance Value         1,000,000.00   
     Number of Shares         123456   
     DTC         12345678 123456789012345   
PO BOX 43004, Providence, RI 02940-3004            
     Certificate Numbers         Num/No.         Denom.         Total   

MR A SAMPLE

     1234567890/1234567890         1         1         1   

DESIGNATION (IF ANY)

     1234567890/1234567890         2         2         2   

ADD 1

     1234567890/1234567890         3         3         3   

ADD 2

     1234567890/1234567890         4         4         4   

ADD 3

     1234567890/1234567890         5         5         5   

ADD 4

     1234567890/1234567890         6         6         6   

 

LOGO

     Total Transaction               7   
           
           

 

Exhibit 10.1

MINERAL LEASE

THIS MINERAL LEASE is made effective the 15th day of July, 2008 (“ Effective Date ”) and entered into as of the Effective Date by and between the NATIVE VILLAGE OF TETLIN also known as the TETLIN VILLAGE COUNCIL (“ Tetlin ”), an Alaska Native Tribe federally recognized and eligible to receive services from the United States Bureau of Indian Affairs, whose address is P.O. Box 797 Tok, AK 99780, and JUNEAU EXPLORATION COMPANY, d/b/a JUNEAU MINING COMPANY, a Texas corporation authorized to do business in Alaska and having its principal place of business at 3700 Buffalo Speedway Ste. 730, Houston, Texas (77098) (“ Juneau ”) .

RECITALS

WHEREAS, to provide for the well being of its tribal members and to provide for its future generations, Tetlin desires to identify potential economic development opportunities;

WHEREAS, On June 6, 2008 Mr. Brad Juneau, principal of Juneau, attended a Tetlin general meeting to present his proposal regarding the exploration for and potential production of precious metals and/or base metals and gems that might be located on Tetlin Lands on such terms and conditions as Tetlin and Juneau may mutually agree;

WHEREAS, at this general meeting of Tetlin’s members held on June 6, 2008, the members of the Tribe without opposition determined to pursue the negotiation of an agreement concerning exploration and, if commercially feasible, production of Tetlin’s mineral resources;

WHEREAS, Tetlin holds fee simple title to surface and subsurface estates in its former reservation lands pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. §§1601-1629 (“ ANCSA ”) based on its refusal of a cash settlement;

WHEREAS, Tetlin desires to lease to Juneau, and Juneau desires to lease from Tetlin the Subject Property, as hereinafter defined, for the purposes of exploration and production as set forth herein;


 

NOW THEREFORE, in consideration of the covenants contained herein, the parties agree as follows:

ARTICLE 1

D EFINITIONS

In addition to terms defined above and elsewhere in the text of this Lease, as used in this Lease:

1.1 Advance Minimum Royalty means payments made by Juneau to Tetlin in accordance with Section 3.2(b) hereof.

1.2 Anniversary Date means each annual anniversary of the Effective Date occurring while this Lease is in effect.

1.3 Affiliate means, in relation to Tetlin or Juneau, any person, partnership, joint venture, corporation or other form of enterprise that directly or indirectly controls, is controlled by, or is under common control with, Tetlin or Juneau as the case requires. For purposes of the preceding sentence, “control” shall mean possession, directly or indirectly, of the power to direct or cause direction of management and policies through ownership of voting securities, contract, voting trust or otherwise.

1.4 Effective Date means July 15th, 2008.

1.5 Land means all of the lands owned by Tetlin (estimated at 780,000 acres) that were formerly known as the Tetlin Indian Reservation as outlined on Exhibit A, excluding, however, those lands described at Section 2.6 and said Exhibit A.

1.6 Gross Returns has the meaning established in Exhibit B.

1.7 Lease means this Mineral Lease.

1.8 Term has the meaning established in Section 2.3.

1.9 Minerals means all minerals and mineral substances (whether hydrocarbons, metallic or non-metallic) in, on or under the Land, including oil, gas, coal, uranium, gold, gems, copper, lead, zinc, and tungsten, among others. The only minerals excluded from this Lease are sand and gravel. In the case that any of the minerals detailed above were found in sand or gravel deposits, said minerals shall constitute Minerals which Juneau may extract pursuant to the terms and conditions of this Lease.

1.10 Net Returns has the meaning established in Exhibit B.

1.11 Subject Property means the Land and the Minerals.

 

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1.12 Work Commitment means all costs and expenses incurred by Juneau for the benefit of the Subject Property for the exploration, evaluation or development of the Minerals, including, without limitation, all salaries and wages and burdens thereon for employees of Juneau and its contractors, travel costs, costs of machinery, equipment, plant, facilities, fixtures and supplies, costs of sampling, assays, analyses, metallurgical testing and pilot plant operation, costs of government permits and approvals, costs of preparing reports, studies and analyses of the potential for development of the Minerals, and an administrative charge of ten percent (10%) of all of the foregoing to compensate Juneau for its home office overhead and administrative costs.

ARTICLE 2

G RANT OF L EASE

2.1 Grant . Tetlin hereby leases unto Juneau, its successors and assigns, all Minerals on, in or under the Land and the appurtenances thereon or thereto, together with the exclusive right to explore, prospect, drill, develop, mine, mill, refine, store, and dispose of minerals and receive the proceeds thereof. It is the intent of the parties that this Lease shall include all of Tetlin’s rights associated with the Minerals that Tetlin possesses on the Effective Date or may hereafter acquire. The rights conveyed include, without limitation, the following:

(a) Uses of Subject Property . Subject to the terms and conditions of this Lease, the exclusive, complete, and unrestricted right to make any use or uses of the Subject Property, to explore for, develop, mine, remove, leach in place, treat, produce, ship and sell, for its own account, all ores and minerals that are or may be found therein or thereon; and of placing and using therein excavations, openings, pits, shafts, ditches and drains, and of constructing, erecting, maintaining, using, and, at its election, removing, any and all buildings, structures, plants, machinery, equipment, railroads, roadways, pipelines, electrical power lines and facilities, stockpiles, waste piles, tailings ponds and facilities, settling ponds, and all other improvements, property and fixtures for mining, removing, beneficiating, concentrating, smelting, extracting, leaching (in place or otherwise), refining and shipping of ores, minerals or products, or for any activities incidental thereto (whether presently contemplated or known to be used in the mining, exploration, production or processing of minerals, water or geothermal resources, or energy resources, or for any of the rights or privileges of Juneau hereunder). Subject to the terms and conditions of this Lease, the rights granted further include the right, insofar as Tetlin lawfully may grant it, to divert streams, to remove lateral and subjacent supports, to cave, subside, use, consume, or destroy the surface of the Subject Property or any part thereof, to deposit earth, rocks, waste, lean ore and materials on any part of the Subject Property, to leach the same, and to commit waste to the extent necessary, usual or customary in carrying out any and all of the above rights, privileges and purposes.

(b) Water Rights . The rights, subject to the regulations of the State of Alaska concerning the appropriation and taking of water and the terms and conditions of this Lease, to use water found on the Lands and to drill wells for the water on the Lands, and lay and maintain all water lines as may be necessary or convenient to Juneau in its operations.

 

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(c) No Obligation to Explore, Develop or Mine . Except as provided in Section 3.2(a) with respect to Minimum Work Commitment, nothing in this Lease shall be deemed to create any obligation or duty on Juneau to perform any exploration, development, mining or other activities on or for the benefit of the Subject Property. Juneau may explore, sample, drill, study, plan, analyze, develop or mine the Subject Property in the manner and to the extent that Juneau, in its sole discretion, deems advisable in accordance with the terms and conditions of this Lease. Juneau shall have no duties or obligations, implied or otherwise, to explore for, develop, or remove Minerals from the Subject Properties, it being agreed that the obligation to incur Minimum Work Commitment pursuant to Section 3.2(a) and the payment of Advance Minimum Royalty provided for in Section 3.2(b) are in lieu of any such express or implied duties or obligations. If, after commencing production, Juneau determines in its sole discretion that it desires to temporarily or permanently decrease, shut down, or cease production for any reason, it shall have the right to do so and may maintain this Lease in full force and effect during the Term by incurring Minimum Work Commitment pursuant to Section 3.2(a) making Advance Minimum Royalty payments due to Tetlin pursuant to Section 3.2(b).

(d) Segregation of Lease . In the event that Juneau’s exploration of the Lands results in a discovery of oil, gas or associated hydrocarbons, the parties shall enter into an oil and gas lease in substantially the form of the oil and gas lease attached hereto as Exhibit C. In the event that Juneau’s exploration of the Lands results in a discovery of mineral deposits for which Juneau determines in its reasonable discretion that a separate mineral lease would be commercially advisable (whether of coal, metallic, non-metallic or industrial minerals), the parties shall enter into such a separate mineral lease in a form generally acceptable in the industry on terms no less favorable to Tetlin than this Lease, including the terms of Exhibit B hereto, as modified to fit the circumstances of the specific mineral to be produced.

2.2 Title . Within 90 days after execution of this Lease, and as a condition precedent to Juneau’s obligations hereunder, Tetlin shall deliver the following items or copies thereof to Juneau (to the extent not previously delivered):

(a) Title Information . Any materials in the custody or control of Tetlin that may assist Juneau in examining Tetlin’s title to the Minerals, including, without limitation, deeds, contracts, title reports and title opinions relating to any part of the Subject Property; and

 

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(b) Environmental Information . All materials in the custody or control of Tetlin that may assist Juneau in evaluating environmental conditions on the Subject Property in order to assess future potential liabilities under State, Federal or local environmental laws.

2.3 Term . The term of this Lease (“ Term ”) shall consist of a primary term and an extended term:

(a) The primary Term shall commence on the Effective Date and shall continue for ten (10) years thereafter, provided that the primary term may be renewed one time by Juneau by giving Tetlin written notice, before the tenth anniversary of the Effective Date, of Juneau’s election to renew the primary term for an additional ten (10) year period, unless the Term is sooner terminated according to the provisions of this Lease. If Juneau elects to renew the primary term as provided herein, Juneau will execute and deliver to Tetlin a written release covering fifty percent (50%) of the Subject Property, thereby terminating any further obligations with respect to that portion of the Subject Property released, other than obligations that survive any termination of this Lease and the terms and conditions hereof, while maintaining the Lease in effect with respect to the portion of the Subject Property not released. Juneau at its sole discretion will determine which portions of the Subject Property will be released. The portions of the Subject Property released do not have to be continuous or connected to each other. The Minimum Work Commitment shall be unaffected by any such release.

(b) The extended Term of this Lease shall continue for so long after the end of the primary Term as Juneau is conducting Operations on the Subject Property. Operations shall include, without limitation, exploration, development or mining activities, and may consist of, among other things, geological, geochemical, and geophysical surveys and sampling of the Minerals, drilling, trenching, assaying, metallurgical testing and other activities performed by or for Juneau that are intended to further the exploration, development or production of the Minerals. Juneau shall be deemed to be “conducting Operations on or for the benefit of the Subject Property,” if such Operations do not cease for a period in excess of one (1) year, excluding any period of Force Majeure.

2.4 Lease Termination . This Lease may be terminated as follows:

(a) The parties may terminate this Lease at any time by a written agreement signed by both parties.

(b) Tetlin may terminate this Lease in the event that:

(i) A court or governmental authority of competent jurisdiction enters an order appointing, without consent by Juneau, a custodian, receiver, trustee, or other officer with similar powers with respect to it or with respect to any substantial part

 

5


of its property, or constituting an order for relief or approving a petition for relief or reorganization, or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of Juneau, or if any such petition shall be filed against a party and such condition is not reversed or such petition shall not be dismissed within thirty (30) days; or

(ii) Juneau defaults or fails to comply substantially with any of the material covenant, term or condition of this Lease other than the timely payment of the Advance Minimum Royalty. Tetlin may give Juneau written notice of any such alleged default, specifying details of the same, and Juneau shall have thirty (30) days after the date such notice is received: (A) to cure or commence to cure such default, or (B) to contest the claim by submitting it to arbitration. If Juneau does not contest a default alleged by Tetlin and fails to cure or commence to cure such default within thirty (30) days after receipt of such notice, Tetlin may terminate this Lease, in which case Juneau shall promptly convey all of its right, title, and interest in the Land to Tetlin, provided that if the nature of the default is such that it cannot be fully cured within thirty (30) days, Juneau shall be deemed to have cured the default if Juneau commences cure within thirty (30) days and thereafter diligently pursues cure to completion. If after Juneau is found to be in default by a court of competent jurisdiction, and if Juneau fails to cure or commence to cure the default within the timeframe specified by such court, Tetlin may terminate this Lease, in which case Juneau shall promptly convey all of its right, title, and interest in the Lands to Tetlin. If Tetlin alleges a default under this Lease, and Juneau, in good faith, disputes the allegation, Juneau shall be allowed to exercise its rights and duties under this Lease until such time as the said dispute is finally resolved. If Juneau fails to timely pay any annual payment of Advance Minimum Royalty, Tetlin shall be entitled to give Juneau written notice of the failure, and if such failure is not remedied within thirty (30) days after Juneau’s receipt of such notice, then this Lease shall be deemed terminated effective on the thirtieth (30th) day after Juneau’s receipt of the notice. Tetlin shall not have the right to terminate this Lease on the basis of an alleged default or on a failure to remedy a default which results from any cause beyond the reasonable control of Juneau, including, without limitation, the Force Majeure provisions herein.

(c) Juneau may terminate this Lease at any time by giving written notice to Tetlin and tendering to Tetlin a written release of this Lease in proper form for recording. Any notice of termination by Juneau shall be effective upon receipt by Tetlin, unless another effective date is specified by Juneau in such notice. If Juneau terminates this Lease, Juneau shall not be required to incur any Minimum Work Commitment after the date of such termination or to make any Advance Minimum Royalty payments or to perform the obligations accruing or coming due after the termination date; but all royalty payments or obligations that accrue before the termination date shall be timely discharged by Juneau. Tender of the release may be made by mailing same to Tetlin at the address provided herein. Juneau may record a duplicate of the release in the Fairbanks Recording District.

 

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2.5 Lease Termination :

(a) Surviving Obligations . Juneau’s and Tetlin’s obligations under this Lease shall cease upon termination under Section 2.4, except for those obligations that by their terms survive this Lease and those obligations the due date or incurrence of which precede the actual date the notice of termination is received by Tetlin.

(b) Reclamation . Juneau shall have the right of access to, across, over and under the Subject Property for as long as necessary after termination for purposes of performing any reclamation or restoration activity or inspections required by law, rules or regulation or any relevant permit, authorization or approval, and the terms and conditions of this Lease. Until Juneau’s reclamation bond has been released, Tetlin shall not resume operations or allow others to resume operations on the Subject Property unless and until any necessary reclamation bond has been posted for such operations by the new operator.

(c) Removal of Equipment on Termination . Juneau shall have one year after termination of the Term to remove from the Subject Property all personal property and all improvements erected or placed by Juneau in or upon the Subject Property and the right (but, unless required by applicable law or the terms and conditions of this Lease, not the obligation) to remove from the Subject Property all broken or stockpiled ore, minerals, concentrates, or other products (subject to the payment of Production Royalty therefor), dumps, tailings, and residue owned by Juneau or placed on or in the Subject Property by Juneau. Juneau may keep one or more watchmen on the Subject Property during such one year period; provided that nothing contained in this Lease shall be construed to prevent Tetlin from assuming immediate possession and control of the Subject Property for the purpose of conducting mineral exploration and development activities thereon or conveying the Subject Property to third parties so that they may conduct such activities.

(d) Cooperation Between the Parties . Juneau shall make such reasonable accommodations with Tetlin concerning the location and relocation of personal property left on the Subject Property, but not abandoned by Juneau, so as not to interfere with the use of the Subject Property by Tetlin as set forth in this Section; provided that if Juneau fails or refuses to relocate any such items within 30 days after notice to do so has been received by Juneau, such personal property may be relocated by Tetlin at Juneau’s sole expense.

(e) Data on Termination . Upon termination of this Lease, Tetlin shall receive copies of all geophysical and geological data in Juneau’s possession or control, which have not previously been delivered to Tetlin, including interpretive materials derived from such data in accordance with Section 5.5. Juneau agrees that it will within

 

7


thirty (30) days after the effective date of said termination deliver to Tetlin a copy of all such data. Juneau shall have no liability on account of any use or reliance upon such data by Tetlin or any other party to whom Tetlin delivers such data, and Juneau shall not be deemed to have made any representation or warranty concerning whatsoever concerning such data, including any representation or warranty concerning its completeness or accuracy, other than that Juneau does not have actual knowledge of any defect or inaccuracy of such data which has not bee communicated to Tetlin.

2.6 Restrictions for Religious and/or Ceremonial Activities; Excluded Lands . Tetlin shall advise Juneau of religious or political holidays or events on which Juneau and its agents shall conduct no activities in specified areas of the Lands or Subject Property. Tetlin may impose restrictions on Juneau’s operations within areas in the Subject Property and Lands as Tetlin may determine necessary or appropriate to preserve traditional and/or cultural properties and interests. Exceptions shall only occur with the express permission of Tetlin, by the minimum required number of Juneau employees or agents, and with a designated Tetlin supervisor with authority to control, limit, or forbid any entry or activity, unless Tetlin elects to waive this provision. A waiver once given by Tetlin does not imply the right to request or expect any subsequent waiver. The Tetlin supervisor need not disclose details or reason for any restriction so imposed, thereby avoiding arguments and challenges to his discretion. This condition is without limitation on the portions of Tetlin’s property, which are excluded from the Lands for cultural, traditional, or social reasons. Tetlin will use its best efforts to identify to Juneau the timing and location of activities and the location of areas in the Subject Property and Lands that Tetlin determines necessary to protect in order to preserve traditional and/or cultural properties and interests. Tetlin will use its best efforts to accomplish this by March 30, 2009. The parties will work together to develop written protocols to assist in the implementation of Article 2.6.

 

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ARTICLE 3

C ONSIDERATION FOR A GREEMENT

3.1 Consideration . In addition to the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged by both parties, Juneau shall provide the following compensation to Tetlin:

3.2 Minimum Work Commitment; Advance Minimum Royalty; and Expense Deposit .

(a) Work Commitment . Subject to Juneau’s right to terminate this Lease pursuant to Section 2.4(c) and the provisions of Section 4.5, Juneau shall incur minimum Work Commitment for the purpose of exploring, evaluating and developing the Minerals during the Term from and after the Effective Date of this Lease on the following schedule:

Before Dec. 31, 2008: Twenty Five Thousand Dollars ($25,000.00).

During Calendar Year 2009: Two Hundred and Fifty Thousand Dollars ($250,000.00).

During Calendar Year 2010 and Each Year thereafter during which this Lease remains in effect: Three Hundred and Fifty Thousand Dollars ($350,000).

Juneau shall deposit into a segregated account at a national bank having a branch in the State of Alaska, before December 31 of each calendar year, funds equal to the amount of the minimum Work Commitment for the upcoming calendar year. Juneau shall provide a copy of the bank statement showing the deposit to Tetlin. Juneau may withdraw from that account funds needed to perform the Work Commitment during the relevant calendar year. Expenditures in any given year which are in excess of the amounts deposited shall be credited toward future years’ work commitments and shall reduce the amounts required for subsequent deposits. Within fifteen (15) days after the end of each calendar quarter, Juneau shall furnish to Tetlin a statement of the Work Commitments actually incurred by Juneau and withdrawn from the account during such quarter. If a positive balance would remain in said account at the end of a calendar year but for the next-required deposit by Juneau, the balance of such account shall be paid to Tetlin (in lieu of Juneau having fulfilled its Work Commitment for that year).

(b) Advance Minimum Royalty . On each Anniversary Date after the Effective Date of this Lease, while this Lease remains in effect, Juneau shall disburse to Tetlin as Advance Minimum Royalty :”

Each Anniversary of Effective Date While this Lease Remains in Effect:

Fifty Thousand Dollars ($50,000); and

Each such payment of Advance Minimum Royalty shall be deemed a payment toward production royalties from the Subject Property. The obligation to make such annual Advance Minimum Royalty payments under this Section 3.2(b) shall terminate upon the commencement of commercial production, provided that Juneau shall be obligated to resume such payments if it subsequently suspends commercial production for more than one hundred eighty (180) consecutive days.

(c) Expense Payment . In recognition of the substantial expenses incurred by Tetlin to negotiate and conclude this Agreement, upon execution of this Agreement, Juneau shall pay to Tetlin the sum of $50,000 (the “Expense Payment”). Tetlin shall not be responsible to Juneau to account for the use of the Expense Payment, and the Expense Payment shall not be applied to production royalties as are Advance Minimum Royalty payments.

 

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(d) Tetlin’s Cooperation . Tetlin agrees to cooperate with Juneau and to take such reasonable actions, execute and deliver such reasonable documents, and otherwise provide such reasonable assistance as may be useful or necessary to permit Juneau to comply with the provisions of this Section 3.2.

3.3 Production Royalty . If the Subject Property is placed into commercial production during the Term, Juneau agrees to pay to Tetlin a royalty from the Land as set forth in more detail in Exhibit B hereto (the Production Royalty ”) . The amount of the Production Royalty will vary as follows:

(a) For gold, silver, platinum, palladium, rhodium, ruthenium, osmium, iridium or any other precious metals or gems the amount of the Production Royalty shall be:

3.0% for the first four years of full scale production from the Subject Lands;

4.0% for the fifth, sixth and seventh years of full scale production from the Subject Lands; and

5.0% for the eighth and following years of full scale production from the Subject Lands;

(b) For all lead, zinc, tungsten or other metallic, non-precious Minerals produced from the Subject Lands, the amount of the Production Royalty shall be 2%;

(c) For uranium or coal produced from the Subject Lands, the amount of the Production Royalty shall be 12.5%; and

(d) For oil, natural gas and related hydrocarbons produced from the Subject Lands, the amount of the Production Royalty shall be 16.6667%.

For the purposes of Article III of this Lease, the Subject Property shall be deemed to be in “commercial production” on the date upon which Minerals derived from the Subject Lands are first delivered to a purchaser on a commercial basis; it being agreed that delivery of products resulting from pilot plant or test operations shall not be considered as deliveries on a commercial basis for the purposes of this Section. Juneau shall promptly notify Tetlin of the date of commercial production if the Subject Property is placed in such production. Any and all payments made to Tetlin pursuant to Section 3.3 of this Lease and all payments of Advance Minimum Royalty made to Tetlin pursuant to Section 3.2(b) hereof shall be a credit against any payment of Production Royalty otherwise due hereunder.

 

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3.4 Method of Payment . Except for the payment due on the execution of this Lease, all payments of Advance Minimum Royalties or Production Royalties shall be made by check or wire transfer paid to the order of Tetlin at a bank to be designated by Tetlin in writing. Tetlin shall instruct the bank as to the deposit and disbursement of such payments and shall bear any and all charges of the bank relating to the receipt and disbursements of the payments. Juneau shall be obligated to deliver only one (1) check for any payment due hereunder, and Juneau shall have no responsibility for disbursement or distribution of any such payment after receipt by the described payee. If the bank should fail, liquidate, or be succeeded by another bank or if for any reason it should not accept any payment, Juneau shall not be in default with respect to any such payment until thirty (30) days after Tetlin has delivered to Juneau an instrument signed by Tetlin and by a new depository bank authorizing such new bank to receive and disburse all payments hereunder.

Tetlin shall be responsible for severance taxes, mining license fees, excise taxes or other taxes levied upon the Tetlin’s portion of production of Minerals, if applicable.

3.5 Payments to Successors . In the event of a transfer of all or a portion of Tetlin’s right to receive Minimum and Production Royalties hereunder, whether by assignment, conveyance, bequest, descent and distribution or otherwise, Juneau shall nevertheless be obligated to make only a single payment of such Minimum or Production Royalties hereunder. Tetlin’s successors or assigns shall provide written notice and evidence reasonably satisfactory to Juneau of such transfer and instructions as to the designated payee on behalf of all parties entitled to receive such payment. Juneau may continue making such payments to Tetlin until it has received notice and evidence satisfactory to it designating where and to whom such payments should be made.

3.6 Liens, Encumbrances, Condition of Subject Property, Indemnification . In the event of the expiration or termination of this Lease, Juneau shall surrender the Subject Property, together with all maps, books, data (including title data furnished to Juneau pursuant to Section 2.2(a) hereof) and records that are related to the Subject Property, to Tetlin free and clear of any liens or encumbrances created by Juneau, and in as good a condition as it was on the Effective Date. Juneau shall indemnify and hold harmless Tetlin from and against any and all claims or liabilities arising out of Juneau’s operations on the Subject Property during the Term.

Juneau agrees to post appropriate notices to contractors and materialmen on the Subject Property advising them of the non-liability of Tetlin for work performed and materials provided to the site.

Nothing contained herein shall prohibit Tetlin from creating a mortgage, lien or other encumbrance upon Tetlin’s royalty interest as provided for in this Lease; provided, however, that such mortgage, lien or other encumbrance may not alter Juneau’s rights or responsibilities under this Lease.

 

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3.7 Real Property Taxes . Juneau shall pay before delinquency all taxes and assessments, general, special, ordinary and extraordinary, during the Term upon Juneau’s leasehold interest in the Subject Property then subject to this Lease, and Tetlin shall pay any other taxes assessed against the Subject Property. Juneau and Tetlin shall upon request furnish to the other duplicate receipts for all such taxes and assessments for which it is responsible when paid. Juneau and Tetlin shall have the right to contest, by judicial or other proceedings, in its own name or in the other’s name, the validity or amount of any such taxes or assessments for which it responsible pursuant to this Section 3.7, or to take such other steps or proceedings as it may deem necessary to secure a cancellation, reduction, re-adjustment or equalization before it shall be required to pay the same. Neither Juneau nor Tetlin shall permit or suffer the Subject Property, any part thereof or any interest therein to be conveyed, as the result of nonpayment of taxes or assessments for which such party is responsible under this Section 3.7.

3.8 Income or Similar Taxes . Any taxes imposed by the State of Alaska on income derived from mining operation shall be borne by the party receiving the income, and each party shall be responsible for its own federal income taxes, if any.

3.9 Taxes on Production . Juneau shall pay all taxes based upon production of minerals, ores, or products from the Subject Property.

ARTICLE 4

R EPRESENTATIONS AND W ARRANTIES

4.1 Representations and Warranties of Juneau . Juneau makes the following representations and warranties to Tetlin with respect to the Subject Property:

(a) Corporate Actions . That Juneau is a corporation organized under the laws of the State of Texas, and has the corporate power and authority to enter into this Lease and to perform its obligations hereunder. The execution, delivery, and performance of this Lease and the consummation of the transactions contemplated hereby have been duly authorized and approved by all necessary corporate actions on the part of Juneau or any Affiliate as the case requires, and no other corporate proceedings on the part of Juneau or any Affiliate as the case requires are necessary to authorize and approve this Lease and the transactions contemplated hereby. This Lease has been duly executed and delivered by, and constitutes the legal, valid and binding obligation of, Juneau, enforceable against Juneau in accordance with its terms.

(b) No Breach of Agreements . That Juneau will not breach any other agreement or arrangement by entering into or performing this Lease.

 

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(c) No Breach of Corporate Obligations . That neither the execution and delivery of this Lease nor the consummation of the transactions contemplated hereby nor compliance by Juneau with any of the provisions hereof will: (i) conflict with or result in a breach of any provision of Juneau’s articles of incorporation or by-laws; (ii) result in a breach or default (or give rise to any right of termination, cancellation, or acceleration of any right to acquire from Juneau any shares of stock of any Subsidiary) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, authorization, franchise, license, permit, agreement or other instrument or obligation to which Juneau, or any corporation of which Juneau owns, directly or indirectly, 50% or more of the outstanding voting securities is a party or by which they or any of their properties or assets may be bound; or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to Juneau, any Subsidiary or any of their properties or assets.

(d) Compliance with Laws . That Juneau has complied with all applicable laws and regulations of any governmental body, federal, state or local, regarding the terms of this Lease and its performance.

(e) Knowledge of Claims, Suits, or Investigations . That to the knowledge of the officer signing this Lease there are no claims or threatened or pending actions, suits, proceedings, arbitrations, governmental investigations, or inquiries that could affect the Subject Property or affect Juneau’s ability to perform the terms of this Lease, and that none arising from Juneau’s actions or inactions shall be in existence at the Effective Date.

(f) Juneau’s Capacity, Right, Power, and Authority . That Juneau has the capacity, right, power and authority to enter into and execute this Lease, to perform its obligations under this Lease, and that no proceedings have been commenced or any orders made in connection with a winding up or liquidation of Juneau.

(g) Commissions; Finder’s Fees . That Juneau has not utilized the services of a broker or a finder in the negotiation and execution of this Lease, and that it has not incurred any obligation to pay a broker’s commission or finder’s fee upon the execution and consummation of this Lease.

(h) Costs . That Juneau shall pay all costs and expenses incurred or to be incurred by it in negotiating and preparing this Lease and in performing the transactions contemplated by this Lease.

(i) Noninterference . That Juneau will not do or permit to be done any act which would or might hinder or impair the rights of the other party granted under this Lease.

(j) Employees, Contractors and Consultants . That Juneau specifically assumes responsibility for all actions taken by it, its employees, contractors and consultants for any environmental liabilities created by Juneau after the Effective Date of this Lease.

 

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4.2 Representations and Warranties of Tetlin . Tetlin makes the following representations and warranties to Juneau:

(a) Ownership/Control/Possession . That Tetlin owns, and is in actual and exclusive possession of the Subject Property described on Exhibit A; that Tetlin owns the entire title to the Minerals and that no other party has any right, title or interest therein; that Tetlin has, and the individuals signing this Lease on its behalf have, the full legal authority and ability to convey to Juneau all of its rights to the Land and Mineral Rights.

(b) Conflicting Right or Interest . That there is no right or interest in the Minerals asserted by others and that there is no right or interest in the Lands asserted by others that would prevent Juneau from exercising the rights granted to it by Tetlin hereunder.

(c) No Defects, Liens or Encumbrances . That there are no defects, liens or encumbrances that affect the Subject Property which would materially hinder or impair Juneau’s rights under this Lease; that during the Term Tetlin shall not commit any act or acts that will encumber or cause a lien, claim, charge or encumbrance to be placed on the Subject Property, or that would materially hinder or impair the rights or ability of Juneau to exercise its rights hereunder except as the same are subject and subordinate to the terms of this Lease.

(d) Compliance with Laws . That Tetlin has complied with all applicable laws and regulations of any governmental body, federal, state or local, regarding the terms of this Lease and its performance.

(e) Knowledge of Claims, Suits, or Investigations . That there are no claims or threatened or pending actions, suits, proceedings, arbitrations, governmental investigations, or inquiries that could affect the Subject Property or affect Tetlin’s ability to perform the terms of this Lease, and that none arising from Tetlin’s actions or inactions shall be in existence at the time of the Effective Date.

(f) Tetlin’s Capacity, Right, Power, and Authority . That Tetlin has the capacity, right, power and authority to enter into and execute this Lease, to lease and convey the Subject Property to Juneau in accordance with the terms and conditions of this Lease, to otherwise perform its obligations under this Lease, and that no proceedings have been commenced or any orders made in connection with a winding up or liquidation of Tetlin.

 

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(g) Corporate Actions . That Tetlin is a federally recognized Alaska Native Tribe and has the power and authority to enter into this Lease, and to perform its obligations hereunder. The execution, delivery, and performance of this Lease and the consummation of the transactions contemplated hereby have been duly authorized and approved by all necessary actions on the part of Tetlin or any Affiliate, as the case requires; and no other proceedings on the part of Tetlin or any Affiliate, as the case requires, are necessary to authorize and approve this Lease and the transactions contemplated hereby. This Lease has been duly executed and delivered by, and constitutes the legal, valid and binding obligation of, Tetlin, enforceable against Tetlin in accordance with its terms.

(h) No Breach of Agreements . That Tetlin will not breach any other agreement or arrangement by entering into or performing this Lease; that the consummation of this Lease will not result in or constitute a default or an event that, with notice or lapse of time or both, would be a default, breach or violation of any lease, license, promissory note, conditional sales contract, commitment, or any other agreement, instrument or arrangement to which Tetlin is a party, or by which it is bound.

(i) No Breach of Legal Obligations . That neither the execution and delivery of this Lease nor the consummation of the transactions contemplated hereby nor compliance by Tetlin with any of the provisions hereof will: (i) conflict with or result in a breach of any provision of Tetlin’s articles of incorporation or by-laws; (ii) result in a breach or default (or give rise to any right of termination, cancellation, or acceleration of any right to acquire from Tetlin any shares of stock of any Subsidiary) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, authorization, franchise, license, permit, agreement or other instrument or obligation to which Tetlin, or any corporation of which Tetlin owns, directly or indirectly, 50% or more of the outstanding voting securities (a “ Subsidiary ”), is a party or by which they or any of their properties or assets may be bound; or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to Tetlin, any Subsidiary or any of their properties or assets.

(j) No Material Facts or Events Exist . That no material facts or events exist that have not previously been disclosed by Tetlin to Juneau, and that none shall be in existence at the time of the Effective Date, affecting Tetlin’s ability to perform its obligations under this Lease or affecting the ability of Juneau to benefit from the rights granted to it under this Lease.

(k) Commissions; Finder’s Fees . Other than its agreement with Mr. Hendry under which Tetlin is solely liable to compensate Mr. Hendry from its royalties pursuant hereto, and with respect to which Tetlin shall save and hold Juneau harmless from any liability, Tetlin has not utilized the services of a broker or a finder in the negotiation and/or execution of this Lease, and that it has not incurred any obligation to pay a broker’s commission or finder’s fee upon the execution and consummation of this Lease.

 

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(l) Costs . That Tetlin shall pay all costs and expenses incurred or to be incurred by it in negotiating and preparing this Lease and in performing the transactions contemplated by this Lease.

(m) Noninterference . That Tetlin will not do or permit to be done any act which would or might hinder or impair the rights of the other party granted under this Lease.

(n) Environmental Conditions . That to the best of Tetlin’s knowledge, information and belief, there is no environmental or physical condition on the Subject Property that is, or would be, a violation of any applicable federal, state or local laws, regulations or ordinances, and that it has not received any notice of any investigation of any such condition or violation.

(o) Toxic or Hazardous Substances . That to the best of Tetlin’s knowledge, information and belief, there are (i) other than the native mineralization, no toxic or hazardous substances on or in the Land; (ii) no discharges of toxic or hazardous substances on or in the Land; (iii) no investigations or proceedings by any federal, state or local government or agency thereof that might lead to the listing of any lands comprising the Land under any law or regulation dealing with the control of toxic hazardous materials; and (iv) no other investigations or proceedings by any federal, state or local government or agency thereof that might lead to the listing of any lands comprising the Land under any law or regulation dealing with the cleanup or remediation of the environment or for damage to the natural resources.

(p) No Royalties . That the Minerals are not subject to any royalties other than the royalties payable to Tetlin set out herein.

4.3 Estoppel Certificate . So long as Juneau is not in default under this Lease, on written request from Juneau, Tetlin will execute and deliver to Juneau a certificate, in form acceptable to Juneau, confirming that the Lease is in full force and effect and that there are no defaults by Juneau under the Lease.

4.4 Remedies for Defects in Title .

(a) Juneau’s Remedies . If Tetlin’s title to the Minerals is defective, or less than herein represented and warranted, Juneau may seek any remedies available to it at law or in equity, including, but not limited to, the restitution of any and all payments made by Juneau pursuant to this Lease with respect to such title defect, recovery of costs incurred by Juneau pursuant to this Lease, rescission of this Lease, the acquisition in Juneau’s name of any adverse interest, and damages incurred by Juneau. Additionally, in the event of Tetlin’s failure to promptly remedy any defects in title or to pay, when due, mortgages or other liens against the Subject Property, Juneau shall have the right, but not the obligation, to remedy such defects or to pay such amounts and if it does so, Juneau shall be subrogated to all the rights of the holder thereof, and Juneau shall have

 

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the right to offset and credit against payments due to Tetlin hereunder all of Juneau’s costs incurred and payments made to remedy such defects or to pay such amounts. If Juneau acts to remedy such defects in the manner provided herein, such action shall not constitute an election of remedies by Juneau.

(b) Lesser Interest in Claims . If Tetlin owns an interest in the Minerals that is less than 100%, the amount of the Minimum Work Commitment provided in Section 3.2(a), the Advance Minimum Royalty provided in Section 3.2(b), and the Production Royalty provided in Section 3.3 of this Lease shall be reduced proportionately in accordance with the nature and extent of Tetlin’s interest so that such Minimum Work Commitment, the Advance Minimum Royalty and Production Royalty shall be paid to Tetlin only in the proportion that Tetlin’s interest bears to a 100% interest in such claims. Any such reduction shall not constitute a measure of damages that may be suffered by Juneau or to in any way limit the rights of Juneau to seek any remedies under this Lease.

(c) Escrow of Payments Pending Dispute . If at any time while this Lease is in force and effect a third party asserts a claim of ownership in the Subject Property or the Minerals Products lying in or under the Subject Property or the lands subject thereto or if Juneau is advised by legal counsel that it appears that a third party may have such a claim, Juneau may deposit any payments that would otherwise be due to Tetlin hereunder into an interest bearing, federally-insured bank account and give notice of such deposit to Tetlin. Such funds shall remain in such account until such third party claim is resolved and shall then be paid to Tetlin if the resolution is in Tetlin’s favor or to Juneau if the resolution is in favor of the third party.

4.5 Remedies for Tetlin’s Breach of Non-Title Representations or Warranties . Should Tetlin breach any of the representations and warranties contained in Section 4.2 at the time of the Effective Date, during the Term, Juneau shall have the right to terminate this Lease and seek damages against Tetlin, subject to the terms and conditions of this Lease, or to cure the circumstance that has resulted in a breach of the representation and warranty and offset any payments made to perform such curative action against any payments that would otherwise be due and owing to Tetlin pursuant to this Lease; provided , however , Tetlin shall have thirty (30) days after notice of any breach of the representations and warranties contained in this Section 4.2 given pursuant to Section 8.1 hereof in which to cure such breach.

4.6 Survival of Representations and Warranties . All representations and warranties contained in Sections 4.1 and 4.2 of this Lease shall survive delivery of any deed or termination of this Lease.

4.7 Waiver . A breach of any one or more of the representations and warranties contained in Sections 4.1 and 4.2 of this Lease may be waived by the party in whose favor they are given in whole or in part at any time without prejudice to that party’s rights in respect of any other breach of the same or any other representation or warranty.

 

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ARTICLE 5

C OVENANTS

5.1 Periodic Reports During the Term . During the Term, Juneau shall deliver from time-to-time, but not less frequently than quarter-annually, to Tetlin a written report that detail Juneau’s operations and expenditures under this Lease. Juneau makes no representations as to the correctness of the data or interpretations thereof in the report, other than that it is presented in good faith and does not contain any material error or omission to Juneau’s actual knowledge, and any use by or reliance by Tetlin of the report or the information contained therein shall be at Tetlin’s sole risk and expense.

5.2 Conduct of Operations During the Term . During the Term, Juneau shall conduct its operations and activities on the Subject Property as follows:

(a) Compliance with Laws . All activities performed on the Subject Property by Juneau during the Term shall conform substantially with the applicable state and federal laws and regulations, including, without limitation, those pertaining to mine safety and health, environmental protection, and operational permits and consents. As requested by Juneau, Tetlin shall cooperate with and assist Juneau in making applications for all permits, licenses, authorizations and approvals deemed appropriate by Juneau to conduct its activities on the Subject Property.

(b) Mining Practices . Juneau shall conduct such work and in such locations on the land as it deems appropriate; provided that Juneau shall conduct all such work in a good and workmanlike fashion in accordance with industry standards and practices. Juneau shall consult with Tetlin with respect to its mining plans and practices not less often than annually, and shall respond to all commercially reasonable comments and questions of Tetlin with respect thereto.

(c) Cross-Mining . Tetlin grants Juneau the right to mine, remove, and process ore, products and materials from the Subject Property through or by means of shafts, openings or pits that may be in or upon adjoining or nearby lands owned or controlled by Juneau. Juneau may use the Subject Property and any shafts, openings, wells, pits, roads, facilities or equipment on the Subject Property for the mining, removal, treatment, processing, transportation, and disposal of ores and materials from adjoining or nearby lands, or for any purpose related thereto. Juneau’s operations on the Subject Property and its operations on other lands may be conducted upon the Subject Property and upon any and all other lands as a single mining operation and in a commercially reasonable manner, to the same extent as if all such properties constituted a single tract.

 

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(d) Adjacent Areas . Subject to the terms and conditions of this Lease, including, without limitation hereof Section 2.6, Tetlin hereby waives any and all rights, statutory and otherwise, to require Juneau to maintain adjacent support for the Subject Property and any contiguous or adjacent property owned, leased, or controlled by Juneau or any other party. Tetlin waives any right to prohibit Juneau from mining within any minimum distance of any boundary of the Subject Property and contiguous or adjacent lands and hereby grants to Juneau the authority to enter agreements with the owners of contiguous or adjacent lands to allow mining of all ores and minerals located on or under the Subject Property or such other lands.

(e) Reclamation . Juneau shall reclaim the Land from the effects of Juneau’s activities to the extent required by applicable law, generally recognized industry practices, and the terms and conditions of this Lease. In addition to any bond it is required to post by the State of Alaska or any other regulatory entity, Juneau shall post an undertaking from an independent surety of commercially reasonable financial substance in an amount and form to ensure that its total bond amount will be sufficient to cover all the reasonable costs and expenses of reclamation required by this Subsection 5.2(e) and any other applicable reclamation requirements. Juneau shall consult with Tetlin with respect to its reclamation plan(s) including bonding, and shall respond to all commercially reasonable questions and comments regarding such plan including the bonding requirement contained herein.

(f) Stockpiling of Ores and Other Materials and Disposal of Waste . Subject to the terms and conditions of this Lease, Juneau shall have the right to stockpile on the Subject Property or on other lands any ore, materials, overburden or wastes mined or produced from the Subject Property, without the obligation to remove them from where stockpiled or to return them to the Subject Property. The stockpiling of ore, materials, overburden or waste from the Subject Property on other lands shall not be deemed a removal or shipment requiring payment of Production Royalty; however, Juneau shall pay Tetlin the royalty due on such stockpiled Minerals pursuant to this Lease when such royalty would otherwise be due upon disposition of such Minerals or upon termination pursuant to Section 2.4 and 2.5. Juneau shall have the right to stockpile on the Subject Property, without obligation to remove the same at any time, any ore, materials, overburden or waste mined or produced by Juneau from other lands. Tetlin agrees to recognize the rights and interests of others in such ores, materials and waste stockpiled on the Subject Property and to permit the removal of such ores, materials or waste by Juneau or the owner thereof.

(g) Commingling . After Minerals from the Subject Property have been sampled and measured or weighed in accordance with industry practices, in such manner as will permit the computation of any Production Royalty payments to be made pursuant to Section 3.3 hereof, Juneau may mix the same with ores, materials or products from other lands.

 

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(h) Treatment and Processing . Juneau shall have the right, but not the obligation, to beneficiate, concentrate, smelt, refine, leach and otherwise treat, in any manner, any ore, product and materials mined or produced from the Subject Property. Such treatment or processing may be conducted wholly or in part at a facility or facilities established or maintained on the Subject Property or on other lands. The tailings and residue from such treatment shall be deemed waste and may be deposited on the Subject Property or on other lands, without obligation to remove the same. Tetlin shall have no right, title or interest in such tailings or residue; provided, however , that any such tailings or residue remaining on the Subject Property for a period of one (1) year after the date on which this Lease has expired, or has been terminated by Juneau as to all of the Subject Property, shall be deemed abandoned by Juneau and thereupon shall become the property of Tetlin to the extent of its interest in the lands on which such tailings or residue are deposited.

(i) Combined Operations . Subject to the terms and conditions of this Lease, Juneau’s operations hereunder, together with its operations on such adjoining or nearby properties may be conducted as a single mining operation, to the same extent as if the Land and all such other properties constituted a single track of land.

(j) Workers’ Compensation Insurance . Juneau shall maintain adequate workers’ compensation insurance meeting all applicable requirements of law.

(k) Public Liability Insurance . Juneau shall carry public liability insurance in an amount not less than one million American Dollars (US $1,000,000) each occurrence, and two million American Dollars (US $2,000,000) aggregate.

(l) Licenses, Permits and Bonds . Juneau shall obtain all licenses, permits, and bonds required by law for the use of or operations on the Subject Property.

5.3 Personnel . Juneau shall endeavor to train and hire Tetlin people; provided that those people shall comply (at Juneau’s entire satisfaction) with the qualifications established by Juneau and that they shall be subject to the same causes of dismissal as any other employee of Juneau.

5.4 Right of Inspection By Tetlin . During the Term, Tetlin and its duly authorized representatives shall, upon reasonable notice to Juneau, be permitted to enter on the working of Juneau on the Subject Property at Tetlin’s sole risk and expense, at reasonable times for the purpose of confirming that Juneau is complying with its obligations under this Lease; but they shall enter on the Subject Property at their own risk and in a manner which does not hinder, delay or interfere with the operations of Juneau, and shall be subject to all safety rules and procedures applicable to the Subject Property. Tetlin shall: (i) indemnify and hold Juneau, its officers, directors, agents, and

 

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employees harmless from any and all damages, claims, demands or costs (including attorneys’ fees and costs of litigation whether pending or threatened) arising out of injury to Tetlin, Tetlin’s agents or representatives or their property in connection with any such inspection activities; and (ii) keep, and shall ensure that its agents, engineers or other persons acting on its behalf keep, confidential all information obtained during inspections, and shall not disclose such information to any other person or entity without the prior written consent of Juneau unless required by law to do so.

5.5 Provision of Geophysical and Geological Date; Confidentiality .

(a) Juneau shall provide to Tetlin during the Term of this Lease any and all geophysical and geological data produced or acquired by Juneau with respect to any of the Lands. For purposes of this Lease, “Geophysical Data” means all data acquired as a result of seismic field operations produced or acquired by Juneau within the Lands during the Term of this Lease, and (2)  “Geological Data” means all subsurface geological information to include but not limited to well logs, borings, surveys, tests, magnetic and gravity surveys produced or acquired by Juneau within the Lands during the Term of this Lease. Tetlin agrees to keep such Geophysical and Geological Data confidential and to use such Geophysical and Geological Data only internally during the Term of this Lease, except to the extent such Data pertains to any portion of the Lands released from the Lease by Juneau pursuant to Subsection 2.3(a). At anytime after the six consecutive month period immediately following the termination of the Term, or to the extent such Data pertains to portions of the Lands released from said Lease pursuant to Subsection 2.3(a), Tetlin may use all data provided by Juneau for its own use and may disclose such data to third parties.

(b) Juneau shall keep a log showing the strata and character of each formation passed through during any mining or drilling conducted on the Lands pursuant to this Lease, and Juneau shall conduct such tests and core sampling as are reasonable within the accepted standards of the mining or oil and gas industry for purposes of evaluating the potential for production from the Lands. All such logs and core sampling shall be made available to Tetlin, and Juneau shall provide Tetlin with copies of all such logs. In addition, Juneau shall furnish Tetlin with copies of daily drilling reports and of any other geological and geophysical reports and mining/well file information, promptly after such data is available.

(c) No person associated with either party shall be entitled to distribution of any written materials, receipt or possession of any documents related to this Lease, or a right of inquiry beyond their need to know and to the extent involved in their daily activities. All documents in the hands of employees during the period of any project shall be returned to the parties by subcontractors and employees upon completion of their duties. The terms of any document, activity, or agreement shall not be disseminated except to those with a duty to know, such as governmental authorities and financial institutions with an interest in either party. Third parties making inquiry

 

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may be told only of the existence of this Lease and its duration, but not its terms and conditions; provided that Juneau may disclose the terms and conditions to potential purchasers or assignees of all or any portion of Juneau’s interests hereunder, so long as such purchasers or assignees agree to be bound by the confidentiality herein. In the event of an accident or emergency, the public, the media, and government officials shall only be told what is necessary to deal with the accident or emergency.

(d) The obligations of this Article 5.5 shall survive any termination of this Lease, subject to and in accordance with the terms of this Section.

5.6 Environmental Matters .

(a) The Parties desire to clarify the environmental obligations of the Parties relative to all activities conducted under this Lease and have therefore included within this Lease this Section 5.6. The inclusion of this Section should not, however, be construed to be an admission against interest as to any third party on the part of either Tetlin or Juneau relating to any matters covered hereby.

(b) As between the Parties, Tetlin hereby assumes any responsibility and liability, for any Environmental Defects involving the Lands which were or are present and existing on or before the Effective Date of this Lease. Subject to the remaining provisions of this Section, as between the Parties, Juneau hereby assumes responsibility and liability for any Environmental Defects involving any Lands which were caused by Juneau, or Juneau’s contractors, agents or employees after the Effective Date of this Lease. As used herein, “Environmental Defects” shall include, but not be limited to: (i) environmental pollution or contamination, including pollution of the soil, groundwater or air; (ii) underground injection activities and waste disposal; (iii) surface and subsurface pollution caused by spills, pits, ponds or lagoons; (iv) failure to comply with applicable land use, surface disturbance, licensing or notification requirements; and (v) violation of any environmental laws or regulations, land use rules or regulations, or any demands or orders of appropriate governmental or regulatory agencies. Normal well and facility abandonment obligations arising in the ordinary course of operations shall not be considered as Environmental Defects for purposes of this Section unless Juneau has failed to timely and properly comply with such obligations and requirements.

(c) Juneau shall indemnify, defend and hold Tetlin harmless from and against any and all claims, either civil, criminal or administrative, related to any Environmental Defect involving Lands subject to this Lease to the extent such Defects are determined to have been caused by activities or operations undertaken by Juneau, its contractors, agents or employees.

(d) The indemnity from Juneau to Tetlin shall survive termination of the Lease for a period of five (5) years from the date of termination.

 

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ARTICLE 6

A SSIGNMENT

6.1 Assignment by Juneau . Juneau shall have the right at any time and from time to time, in its sole discretion, to assign, transfer or encumber all or any portion of its interest in this Lease and/or the Subject Property on such terms and conditions and for such consideration as Juneau shall determined in its sole discretion; provided that the assignee shall have reasonably sufficient financial capacity to perform its obligations hereunder, and Tetlin does not have commercially reasonable objection to such assignee. Any such assignment, transfer or encumbrance shall be subject to all rights of Tetlin hereunder, and upon such assignment or transfer by Juneau, the obligation to make the payments due hereunder shall become the obligation of the transferee.

6.2 Assignment by Tetlin . Tetlin shall have the right to assign or transfer all or any portion of its interest in the Subject Property and/or this Lease, subject to the rights of Juneau provided in this Section 6.2. If Tetlin intends to assign or transfer all or any of its interest in the Subject Property or in this Lease, it shall promptly notify Juneau. The notice shall state the price and all other pertinent terms and conditions of the intended assignment or transfer and shall be accompanied by a copy of the offer or contract. Juneau shall have 30 days from the receipt of such notice to advise Tetlin whether it elects to acquire the interest subject to the notice at the same price and on the same terms and conditions as are set forth in the notice. If Juneau exercises its right to purchase the interest of Tetlin subject to the notice, Juneau shall pay to Tetlin an amount equal to the value of the third party offer upon terms that are economically no less favorable to the Tetlin than the third party offer. If Juneau fails to elect to exercise this right, Tetlin may complete the proposed transaction with the third party on the terms and conditions as described in the notice to Juneau. If Tetlin does not thus complete the proposed transaction within one hundred twenty (120) days after Juneau’s failure to exercise its right of purchase, any subsequent offer or transactions contemplated by Tetlin shall be subject to the terms of this Section 6.2.

ARTICLE 7

I NDEMNIFICATION

7.1 Pre-Effective Date Liability . Tetlin shall indemnify, keep indemnified and hold harmless Juneau for any and all claims or liabilities arising out of any event or circumstance that occurred or existed on or before the Effective Date, including, but not limited to, any environmental liabilities.

 

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7.2 Pre-Agreernent Liability . Each party hereto shall defend, indemnify, and hold the other, its directors, officers, employees and agents and those of its Affiliates harmless from all costs, liability, loss, damage, claim, expense or contribution, including reasonable attorneys’ fees, arising out of or related to any breach of any representation contained in this Lease.

7.3 Liability of Juneau after Effective Date . Juneau shall assume all risk of loss, death, or injury to property or person, which may arise out of or in connection with any accident that may occur on the Subject Property after the Effective Date except to the extent that such loss or injury was caused by the negligent conduct of Tetlin, its agents, representatives or employees or as a result of the presence of Tetlin, its agents, representatives or employees on the Lands in connection with any inspection pursuant to Section 5.8. Juneau shall indemnify, defend and save harmless Tetlin, its employees and agents, and those of his Affiliates:

(a) From all claims, demands, suits, judgments, costs, and expenses on account of any loss or injury, except to the extent that such loss or injury was caused by the negligent conduct of Tetlin, its agents, representatives or employees or as a result of the presence of Tetlin, its agents, representatives or employees on the Lands in connection with any inspection pursuant to Section 5.8; and

(b) From any liability arising from requirements, levies or fines of any type by any local, state or federal governmental bodies that are incurred by Juneau as a result of Juneau’s operations, actions or omissions on the Subject Property, including any violation by Juneau of applicable provisions of federal, state or local law intended to protect the environment.

7.4 Liability of Tetlin after Effective Date . After the Effective Date, Tetlin shall, in addition to the indemnification required under Section 5.4 above, indemnify, defend and save harmless Juneau, its directors, officers, employees and agents, and those of its Affiliates, from all claims, demands, suits, judgments, costs and expenses on account of any loss or injury to the extent that such loss or injury was caused by the negligent conduct of Tetlin, its agents, representatives or employees or those of its Affiliates.

 

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ARTICLE 8

N OTICES

8.1 Notices . Any notice, election, invoice, payment or other correspondence required, permitted or requested hereunder shall be deemed to have been properly given or delivered when made in writing and personally delivered, or made in writing and sent by United States certified or registered mail, by telex or electronic transmission, with all necessary postage or charges fully prepaid, and addressed to the party at the address specified below:

Tetlin: Tetlin Village Council

P.O. Box 797

Tok, AK 99780

Attention: Howard Mermelstein

Juneau: Juneau Mining Company

3700 Buffalo Speedway Ste 730

Houston, TX 77098

Attention: Brad Juneau

Any party may change its address for the purpose of notices or communications hereunder by furnishing notice thereof to the other parties in compliance with this Section 8.1. Notices shall be considered delivered and effective three (3) days following the date of mailing, on the day following telex or electronic transmission, or on the day of personal delivery.

ARTICLE 9

M ISCELLANEOUS

9.1 Confidentiality . The terms and conditions of this Lease and all data and information acquired by Tetlin or Juneau by virtue of this Lease shall be deemed confidential and shall not be disclosed by the recipient party to any third party during the Term, except as may be required to publicly record or protect title to the Subject Property or by the laws and regulations of the United States or any state or local government. Nothing herein shall be deemed to restrict the disclosures made by either party hereto of that party’s own information, including any information relating to its exclusive rights. Each party agrees to hold in confidence all information disclosed to it directly or indirectly by the other party or any of its Affiliates; provided, however, the obligations of confidentiality shall not apply to (i) information that at the time of disclosure is generally available to the public; (ii) information that after disclosure is published or otherwise becomes generally available to the public through no fault of the recipient (but only after, and only to the extent that, it is published or otherwise becomes generally available to the public); (iii) information that the recipient can show already was in the possession of the recipient or its Affiliates at the time of disclosure (except in anticipation of this Lease) and that without breach of any obligation of confidence such recipient is free to disclose to others; or (iv) information that the recipient reasonably believes is required to be disclosed by applicable law or stock exchange rules.

 

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9.2 Construction . The article, section and subsection headings contained in this Lease are inserted for convenience of reference only and should not be taken or construed to define, limit or describe the intent of the Lease, or to affect its terms or provisions. Unless otherwise expressly provided, or unless the context shall otherwise require, words importing the singular shall include the plural and words importing the masculine gender shall include the feminine gender, and vice versa.

9.3 Force Majeure . The respective obligations of the parties under this Lease shall be suspended during the time and to the extent that the party is prevented from compliance or performance, in whole or in part, by war or war conditions, actual or potential, earthquake, fire, flood, strike, labor stoppage, accident, riot, unavoidable casualty, act or restraint, present or future, of any lawful authority, statute, governmental regulation or ordinance, environmental restrictions or conditions, inability to obtain permit or license approvals on reasonably acceptable terms and conditions, act of God, act of public enemy, delays in transportation, or other cause of the same or other character beyond the reasonable control of such party, whether or not foreseeable. A party affected by Force Majeure shall promptly furnish notice of commencement and termination of the Force Majeure to the other party and shall use reasonable diligence to remedy or eliminate the Force Majeure, but shall not be required to settle any labor dispute or contest the validity of any law, regulation or any action or inaction by civil or military authority.

9.4 Governing Law . For all purposes, this Lease shall be deemed to be a contract made in the State of Alaska and shall be governed by applicable federal law and the law of the State of Alaska. Subject to the remainder of this Section 9.4, the Parties hereby submit to the exclusive jurisdiction of the federal and state courts of the State of Alaska.

(a) The parties agree that any adoption or utilization of Alaska law is for purposes of Lease construction and enforcement only, and is not intended to authorize, sanction, or endorse the application of the laws of the State of Alaska to Tetlin for any other purposes, to the extent that such laws would not otherwise apply to Tetlin.

(b) Tetlin hereby expressly waives its sovereign immunity to the limited extent necessary to permit judicial review by a court of competent jurisdiction as provided herein, and shall not raise sovereign immunity as a defense to such proceedings, with respect to the following relief only:

 

  (1) declarations of the parties’ rights, duties, adequacy of performance or breach of or under this Lease;

 

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  (2) interlocutory or final orders directing either party to specifically perform its obligations under this Lease;

 

  (3) orders enforcing a decision or judgment of any court of competent jurisdiction;

 

  (4) Tetlin shall not be liable for attorney’s fees of the other party or any costs;

 

  (5) Tetlin shall only be liable for money damages to the extent that the award can be paid from royalties previously paid to Tetlin and/or future royalty payments under Article 3.3 of this Lease.

9.5 Binding Effect; Inurement . This Lease shall be binding upon and inure to the benefit of each of the parties hereto, and their successors in interest and permitted assigns.

9.6 Entire Agreement . This Lease contains the entire understanding between the parties relating to its subject matter. This Lease supersedes all previous agreements, discussions, statements and understandings, written and oral. There are no terms, consideration, warranties, representations, or covenants, or conditions, express or implied, including any implied obligation of Juneau to explore, mine or otherwise work on the Subject Property, other than stated in this Lease. This Lease may be amended or modified only by an instrument in writing signed by the parties with the same formality as this Lease.

9.7 Area of Interest . Any right or interest in minerals acquired by Tetlin or any party acting for or on behalf of Tetlin during the Term, any portion of which claim is situated in whole or in part within ten (10) miles of the exterior boundaries of the Lands (the Area of Interest ”) shall, upon the election of Juneau become subject to the terms and conditions of this Lease at no increase in the Advance Minimum Royalty payments or the amount of the Minimum Work Commitment. Tetlin shall promptly notify Juneau in writing of its location or acquisition of any land, right or interest within the Area of Interest. If Juneau elects to have any such land or interests made subject to this Lease, it shall so notify Tetlin, and Tetlin shall promptly execute an amendment and ratification of this Lease satisfactory to Juneau adding, at no cost to Juneau, such claims or interests to the Subject Property subject to this Lease.

 

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9.8 Acquisitions by Juneau . The parties hereto expressly acknowledge and agree that this Lease applies only to the Subject Property. Without limiting the foregoing, Tetlin shall have no claim or right with respect to any lands, mining claims or mineral interests of any kind which Juneau may now own or control, or which Juneau may hereafter acquire outside of the Subject Property whether or not any such acquisition may arise or result from Juneau’s review or interpretation of information derived from the Subject Property. Additionally, Tetlin shall have no right to any data, materials or other information that may be generated from, or acquired by Juneau with respect to, lands outside the Subject Property, whether or not such data, materials or information may be relevant or material to the Subject Property.

9.9 Memorandum . At the request of Juneau, Tetlin shall execute a memorandum of this Lease that shall not disclose consideration or other financial information contained herein. Juneau shall be entitled to record the memorandum in the official records of the Fairbanks Recording District, State of Alaska. The execution, recording and filing of the memorandum of this Lease shall not limit, increase or in any manner affect any of the terms hereof, or any rights, interest or obligations of the parties hereto.

9.10 Counterparts . This Lease may be executed in any number of counterparts, each of which shall be considered as original for all purposes, but all of which shall constitute the same Lease; provided , however , this Lease shall not be binding on any party hereto unless and until it or a counterpart has been executed by all parties hereto.

9.11 Further Assurances . Tetlin and Juneau hereby covenant to do, execute and perform all such acts, documents, conveyances, agreements and assurances as are necessary, desirable or requested by another party to give full effect to the provisions of this Lease. In addition, Tetlin will fully cooperate with Juneau in obtaining accommodations from third parties to confirm the validity of the title conveyed by Tetlin to Juneau under this Lease as Juneau may from time-to-time request.

9.12 Relationship of the Parties . Nothing contained herein shall be deemed to constitute either party the partner, venturer, agent or legal representative of the other party, or to create any partnership, mining partnership, joint venture or fiduciary relationship between them, for any purpose whatsoever. Neither Juneau nor any of its employees shall constitute or be deemed to be an employee, servant, agent or representative of Tetlin for any purpose whatsoever. All employees, agents and permitted subcontractors of Juneau shall be under the direct supervision and control of Juneau, including the hours worked by the employee, agent or representative. Juneau agrees that it hereby expressly waives and will make no legal, equitable or administrative claim alleging that it is or may be entitled to receive benefits under any company employee benefit plan or program and will indemnify and hold Tetlin harmless from any claim by Juneau’s employees to the contrary.

 

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9.13 Severability . If any part, term or provision of this Lease is determined to be illegal or in conflict with any law of the United States or any state, the validity of the remaining portions or provisions shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the Lease did not contain the particular part, term or provision held to be invalid.

9.14 Disputes Not to Interrupt Operations . Disputes or differences between the parties hereto shall not interrupt performance of this Lease or the continuation of operations hereunder. In the event of any dispute or difference, operations may be continued and settlements and payments may be made hereunder in the same manner as prior to such dispute or difference.

9.15 The parties will endeavor to avoid disputes and will meet and confer before any disputes are taken to any forum for resolution. The parties will seek mediation before taking any dispute to court.

9.16 Time is of the essence of this Lease.

9.17 All references to money refer to United States Dollars.

IN WITNESS WHEREOF, the parties have executed this LEASE AND OPTION AGREEMENT effective as of the day and year first above written.

 

TETLIN VILLAGE COUNCIL
By:   /s/ Donald Adams
NAME:   Donald Adams
TITLE:   Chief

 

ATTEST:

  /s/ Wilfred Adams
NAME:   Wilfred Adams

 

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AMENDMENT No. 1 TO MINERAL LEASE

THIS AMENDMENT No. 1 TO MINERAL LEASE (“ Amendment No. 1 ) is made effective the 1st. day of October, 2009 (“ Effective Date ”) and entered into as of the Effective Date by and between the TETLIN VILLAGE COUNCIL (“ Tetlin ”), an Alaska Native Village corporation organized pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. §§1601-1629 (“ ANCSA ”), whose address is P.O. Box 797 Tok AK 99789, and JUNEAU EXPLORATION, LP, a Texas limited partnership, d/b/a JUNEAU MINING COMPANY, authorized to do business in Alaska and having its principal place of business at 3700 Buffalo Speedway Ste. 730, Houston, Texas (77098) (“ Juneau ”) .

RECITALS

WHEREAS, Tetlin and Juneau entered into a Mineral Lease effective July 15, 2008 (the Original Lease ”) , for which a Memorandum of Mineral Lease was recorded on September 19, 2008 in the records of the Fairbanks Recording District: 401, State of Alaska, as document number 2008-019032-0;

WHEREAS, the Original Lease contained certain typographical errors that Tetlin and Juneau wish to correct;

WHEREAS, Tetlin and Juneau desire to amend the Original Lease as set forth herein;

NOW THEREFORE, in consideration of the covenants contained herein, the parties agree as follows:

1. Introductory Paragraph:

The introductory paragraph of the Original Lease is hereby deleted and the following paragraph substituted therefor:

THIS MINERAL LEASE is made effective the 15th day of July, 2008 (“ Effective Date ”) and entered into as of the Effective Date by and between the TETLIN VILLAGE COUNCIL, a/k/a the TETLIN TRIBAL COUNCIL (“ Tetlin ”) , an Alaska Native Village corporation organized pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. §§1601-1629 ( ANCSA ), whose address is P.O. Box 797 Tok AK 99789, and JUNEAU EXPLORATION, LP, a Texas limited partnership, d/b/a JUNEAU MINING COMPANY, authorized to do business in Alaska and having its principal place of business at 3700 Buffalo Speedway Ste. 730, Houston, Texas (77098) (“ Juneau ”) .


 

2. The Original Lease stated that Tetlin held fee simple title to surface and subsurface estates in its former reservation lands, and estimated the acreage of those lands as 780,000 acres. The Tetlin Native Corporation (“ TNC ”) objected to the Original Lease insofar as it purported to include lands not conveyed to Tetlin pursuant to a Statutory Quitclaim Deed from TNC to Tetlin. Juneau and Tetlin agree that Juneau shall be given credit for this substantial reduction in acreage under the Original Lease by deleting Paragraphs 1.5 and 2.3(a) of the Original Lease and substituting therefor the following provisions:

1.5 “Land” means all of the lands owned by Tetlin that were formerly known as the Tetlin Indian Reservation as outlined on Exhibit A and granted to the Tetlin Native Corporation (estimated at 780,000 acres), excluding, however, those lands described at Section 2.6 and said Exhibit A, but the term Land shall be specifically limited to the lands were granted to Tetlin by the Tetlin Native Corporation by that certain Statutory Quitclaim Deed recorded on September 5. 1996, in the Fairbanks Recording District, State of Alaska, at Book 0969, Pages 001-002 which is attached as a part of Exhibit A hereto.

2.3 Term . The term of this Lease (“Term”) shall consist of a primary term and an extended term:

(a) The primary Term shall commence on the Effective Date and shall continue for ten (10) years thereafter, provided that the primary term may be renewed one time by Juneau by giving Tetlin written notice, before the tenth anniversary of the Effective Date, of Juneau’s election to renew the primary term for an additional ten (10) year period, unless the Term is sooner terminated according to the provisions of this Lease. If Juneau elects to renew the primary term as provided herein, Juneau will execute and deliver to Tetlin a written release covering fifty percent (50%) of the estimated 780,000 acres described in the Lease prior to this Amendment No. 1 (said release shall include, in the calculation of acreage to be released, the amount of acreage described in the Lease prior to Amendment No. 1 that is owned by Tetlin Village Corporation (“ TNC ”) (estimated to be in excess of 100,000 acres) thus crediting such acreage owned by TNC against the 50% to be released by Juneau as a recognition of Juneau’s inability to use the lands owned by TNC), thereby terminating any further obligations with respect to that portion of the Subject Property released, other than obligations that survive any termination of this Lease and the terms and conditions hereof, while maintaining the Lease in effect with respect to the portion of the Subject Property not released. Juneau at its sole discretion will determine which portions of the Subject Property will be released. The portions of the Subject Property released do not have to be continuous or connected to each other. The Minimum Work Commitment shall be unaffected by any such release.

 

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3. The first sentence of Paragraph 9.1 of the Original Lease is hereby deleted and the following provision substituted therefor

9.1 Confidentiality . The terms and conditions of this Lease and all data and information acquired by Tetlin or Juneau by virtue of this Lease shall be deemed confidential and shall not be disclosed by the recipient party to any third party during the Term without the written consent of the other party, except as may be required to publicly record or protect title to the Subject Property or by the laws and regulations of the United States or any state or local government.

The remainder of paragraph 9.1 of the Original Lease shall remain unchanged and of full force and effect.

4. At the request of Juneau, Tetlin shall execute a Memorandum of Amendment No. 1 to Mineral Lease that shall not disclose consideration or other financial information contained herein. Juneau shall be entitled to record the Memorandum in the official records of the Fairbanks Recording District, State of Alaska. The execution, recording and filing of the Memorandum shall not limit, increase or in any manner affect any of the terms hereof, or any rights, interest or obligations of the parties hereto. This Amendment No. 1 to Mineral Lease shall not be recorded.

5. The remaining terms provisions of the Original Lease shall remain unchanged and of full force and effect, and except as modified herein, the terms and provisions of the Original Lease shall apply to this Amendment No. 1.

IN WITNESS WHEREOF, the parties have executed this AMENDMENT No. 1 TO MINERAL LEASE effective as of the day and year first above written.

 

TETLIN VILLAGE COUNCIL
By:   /s/ Donald Adams
NAME:   Donald Adams
TITLE:   Chief

 

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Exhibit 10.2

CHAIRMAN AGREEMENT

THIS CHAIRMAN AGREEMENT (“Agreement”) is entered into between Contango ORE, Inc., a Delaware corporation (the “Company”), and Kenneth R. Peak (“Mr. Peak”) as of November 1, 2010, to be effective on the date immediately before the distribution of shares of the Company’s common stock to the stockholders of Contango Oil & Gas Company (the “Effective Date”).

WHEREAS, the Company wishes to engage the services of Mr. Peak, and Mr. Peak wishes to accept such an engagement with the Company, on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual agreements contained herein, the Company and Mr. Peak agree as follows:

1. Position and Duties .

(a) The Company hereby engages Mr. Peak as the Chairman of the Board of Directors (the “Board”) of the Company. As such, Mr. Peak shall have the responsibilities, duties and authority reasonably expected of a Chairman of the Board, as more specifically defined in the Bylaws of the Company and as may be further defined by the Board. Mr. Peak hereby accepts this engagement upon the terms and conditions herein contained and agrees to devote as much of Mr. Peak’s professional time, attention, and efforts as necessary to promote and further the business of the Company. Mr. Peak shall faithfully adhere to, execute, and fulfill Mr. Peak responsibilities, duties and authority, and shall comply with all Board directives and policies established or adopted by the Company.

(b) During the term of this Agreement, Mr. Peak shall devote as much of Mr. Peak’s energies, interest, abilities, and productive time to the performance of this Agreement as necessary. However, the Company acknowledges that Mr. Peak may also render services (i) as Chairman and Chief Executive Officer of Contango Oil & Gas Company and its affiliates; (ii) as a Director of other organizations and (iii) as an officer or owner of any other business, and that the services rendered by Mr. Peak to the Company shall be part-time only.

2. Term and Termination .

(a) Mr. Peak’s engagement under this Agreement shall be for a one (1) year period beginning on the Effective Date and for month to month thereafter unless and until either party provides written notice ninety (90) days prior to termination of the engagement (the “Engagement Term”). In addition, Mr. Peak’s engagement shall be terminable by either party prior to the end of the Engagement Term as set forth below. Upon the end of the Engagement Term or the effective date of termination, the Company’s obligations to provide Mr. Peak with Equity Compensation (as defined below) shall end.

(b) The Company shall have the right to terminate Mr. Peak’s engagement at any time, without advance notice, upon the following events: (i) material breach of any term or condition of this Agreement by Mr. Peak; (ii) Mr. Peak’s fraud, breach of trust, dishonesty, misappropriation or similar activity; or (iii) Mr. Peak’s conviction of any felony or of any other crime involving moral turpitude.

 

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(c) Mr. Peak shall have the right to terminate Mr. Peak’s engagement at any time, without advance notice, upon a material breach of any term or condition of this Agreement by the Company.

(d) If Mr. Peak dies during the Engagement Term, this Agreement shall terminate and thereafter the Company shall have no liability or obligation to Mr. Peak, Mr. Peak’s heirs, personal representatives, assigns or any other person claiming under or through Mr. Peak except for unpaid Equity Compensation accrued to the date of Mr. Peak’s death.

3. Compensation .

(a) Equity Compensation . As compensation for Mr. Peak’s services, the Company shall issue Mr. Peak restricted shares of the Company’s common stock on the Effective Date equal to 1.50% of the aggregate shares of common stock being distributed to the stockholders of Contango Oil & Gas Company, which shall vest over three years beginning with the one-year anniversary of the date the shares are issued and annually thereafter ( “Equity Compensation”). Mr. Peak’s Equity Compensation shall be subject to annual review by the Company’s Board if this Agreement is extended beyond the one (1) year period.

4. Benefits . During the Engagement Term, Mr. Peak shall be entitled to any Company benefits, including reimbursement for all ordinary and reasonable out-of-pocket business expenses incurred by Mr. Peak in connection with Mr. Peak’s performance of services for the Company during the Engagement Term (collectively, “Benefits”).

5. Noncompete .

(a) Mr. Peak shall not, during the term of Mr. Peak’s engagement with the Company, directly or indirectly, for himself or on behalf of or in conjunction with any other person, company, partnership, corporation or business, with the exception of Mr. Peak’s continued service to, employment with, and ownership of Contango Oil & Gas Company and its affiliates, have an ownership interest in, provide assistance to or perform services for, as an officer, shareholder, owner, partner, member, joint venturer, employee, independent contractor, consultant or adviser, any person or organization that operates a business that competes with the Company;

(b) Notwithstanding the above, the foregoing covenants shall not be deemed to prohibit Mr. Peak from (i) acquiring as an investment not more than ten percent (10%) of the capital stock of a competing business whose stock is traded on a national securities exchange or over-the-counter, or (ii) serving as a director of any company that competes, in whole or in part, with the Company;

(c) In addition to any other remedies provided for herein, because of the difficulty of measuring economic losses to the Company as a result of a breach of the foregoing covenant, and because of the immediate and irreparable damage that could be caused to the Company for which they would have no other adequate remedy, Mr. Peak agrees that the foregoing covenant may be enforced by the Company in the event of breach by Mr. Peak, by injunctions and restraining orders.

 

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6. Arbitration . Any disputes between Mr. Peak and the Company arising out of this Agreement or Mr. Peak’s engagement by the Company or the termination of Mr. Peak’s engagement, including without limitation any claim of discrimination under state or federal law, shall be resolved by an impartial arbitrator of the American Arbitration Association in Houston, Texas, except for disputes that cannot be compelled to arbitration under the law governing this Agreement. The arbitrator shall be selected by agreement between Mr. Peak and the Company, but if they do not agree on the selection of an arbitrator within 30 days after the date of the request for arbitration, the arbitrator shall be selected pursuant to the rules of that Association. If for any reason the American Arbitration Association declines to accept jurisdiction, the parties shall use the arbitration procedures set forth under Texas state law. The award rendered by the arbitrator shall be conclusive and binding upon Mr. Peak and the Company. Each party shall pay its own expenses for the arbitration and the fee and expenses of the American Arbitration Association and the arbitrator shall be shared equally, except to the extent that the law governing this Agreement requires the Company to pay such fees and expenses.

7. Contents of Agreement; Amendment and Assignment . This Agreement sets forth the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, understandings, or representations between the parties. This Agreement cannot be changed, modified or terminated except upon written amendment duly executed by the parties hereto. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, personal representatives, successors and assigns of the parties hereto, except that (a) the duties and responsibilities of Mr. Peak hereunder are of a personal nature and shall not be assignable in whole or in part by Mr. Peak and (b) the rights and interests of Mr. Peak hereunder shall not be assignable in whole or in part by Mr. Peak.

8. Severability . If an arbitrator or court of competent jurisdiction holds that any provision of this Agreement is void or unenforceable, the remaining provisions shall continue in full force and effect.

9. Notices .

(a) Any notice under this Agreement given by the Company to Mr. Peak shall be personally delivered to Mr. Peak or sent by certified mail to Mr. Peak’s most recent home address as shown in the Company’s records.

(b) Any notice by Mr. Peak to the Company shall be sent by certified mail to the following address:

Contango ORE, Inc.

3700 Buffalo Speedway, Suite 960

Houston, Texas 77098

Attn: Secretary

(c) Any notice sent by certified mail shall be effective when mailed.

 

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10. Applicable Law . This Agreement shall be governed for all purposes by the internal laws of the State of Texas, without reference to the conflict of laws provisions of the State of Texas.

11. Survival of Obligations . Mr. Peak’s and the Company’s obligations to arbitrate disputes set forth in paragraphs 6 shall survive the termination of this Agreement.

12. Board of Directors’ Approval . This Agreement is subject to and conditioned upon the approval of the Company’s Board which, by signatures of its authorized officer hereon, is hereby confirmed.

IN WITNESS WHEREOF, the parties have executed this Agreement.

 

COMPANY:

Contango ORE, Inc.,

a Delaware corporation

By:   /s/ KENNETH R. PEAK
 

Kenneth R. Peak

Chairman, President and Chief Executive Officer

 

/s/ SERGIO CASTRO

Sergio Castro

Vice President, Chief Financial Officer and Secretary

 

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Exhibit 10.3

CONTANGO ORE, INC.

2010 EQUITY COMPENSATION PLAN

 

  1. Purpose

The purpose of the Contango ORE, Inc. 2010 Equity Compensation Plan (the “Plan”) is to provide (i) designated employees of Contango ORE, Inc. (the “Company”) and its subsidiaries, (ii) non-employee members of the board of directors of the Company, and (iii) consultants who perform services for the Company and its subsidiaries with the opportunity to receive grants of stock options, stock units, stock awards, stock appreciation rights and other stock-based awards. The Company believes that the Plan will encourage the participants to contribute materially to the growth of the Company, thereby benefiting the Company’s stockholders, and will align the economic interests of the participants with those of the stockholders. The Plan shall be effective immediately prior to the distribution of the common stock of the Company to the stockholders of Contango Oil & Gas Company, subject to approval by the stockholders of the Company.

 

  2. Definitions

Whenever used in this Plan, the following terms will have the respective meanings set forth below:

(a) “ Affiliate” means, with respect to a person, any entity that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with such person. For this purpose, “control” means the direct or indirect ownership of fifty percent (50%) or more of the outstanding capital stock or other equity interests having ordinary voting power.

(b) “Board” means the Company’s Board of Directors.

(c) “Change of Control” shall be deemed to have occurred if:

(i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) other than Mr. Kenneth R. Peak or an Affiliate of Mr. Peak becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 25% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors;

(ii) The consummation of (i) a merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors, (ii) a sale or other disposition of all or substantially all of the assets of the Company, or (iii) a liquidation or dissolution of the Company; or

 

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(iii) After the Effective Date, directors are elected such that a majority of the members of the Board shall have been members of the Board for less than two years, unless the election or nomination for election of each new director who was not a director at the beginning of such two-year period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period.

(d) “Code” means the Internal Revenue Code of 1986, as amended.

(e) “Committee” means (i) with respect to Grants to Employees and Consultants, the Compensation Committee of the Board or another committee appointed by the Board to administer the Plan, (ii) with respect to Grants made to Non-Employee Directors, the Board, and (iii) with respects to Grants that are intended to be “qualified performance-based compensation” under section 162(m) of the Code, a committee that consists of two or more persons appointed by the Board, all of whom shall be “outside directors” as defined under section 162(m) of the Code and related Treasury regulations.

(f) “Company” means Contango ORE, Inc. and any successor corporation.

(g) “Company Stock” means the common stock of the Company.

(h) “Consultant” means an advisor or consultant who performs services for the Employer.

(i) “Dividend Equivalent” means an amount calculated with respect to a Stock Unit, which is determined by multiplying the number of shares of Company Stock subject to the Stock Unit by the per-share cash dividend, or the per-share fair market value (as determined by the Committee) of any dividend in consideration other than cash, paid by the Company on its Company Stock. If interest is credited on accumulated dividend equivalents, the term “Dividend Equivalent” shall include the accrued interest.

(j) “ Effective Date ” of the Plan means the date immediately prior to the distribution of the common stock of the Company to the stockholders of Contango Oil & Gas Company, subject to approval of the Plan by the stockholders of the Company.

(k) “Employee” means an employee of the Employer (including an officer or director who is also an employee), but excluding any person who is classified by the Employer as a “contractor” or “consultant,” no matter how characterized by the Internal Revenue Service, other governmental agency or a court. Any change of characterization of an individual by the Internal Revenue Service or any court or government agency shall have no effect upon the classification of an individual as an Employee for purposes of this Plan, unless the Committee determines otherwise.

(l) “Employer” means the Company and its subsidiaries.

 

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(m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(n) “Exercise Price” means the per share price at which shares of Company Stock may be purchased under an Option, as designated by the Committee.

(o) “Fair Market Value” of Company Stock means, unless the Committee determines otherwise with respect to a particular Grant, (i) if the principal trading market for the Company Stock is a national securities exchange, the last reported sale price of Company Stock on the relevant date or (if there were no trades on that date) the latest preceding date upon which a sale was reported, (ii) if the Company Stock is not principally traded on such exchange, the mean between the last reported “bid” and “asked” prices of Company Stock on the relevant date, as reported on the OTC Bulletin Board, or (iii) if the Company Stock is not publicly traded or, if publicly traded, is not so reported, the Fair Market Value per share shall be as determined by the Committee.

(p) “Grant” means an Option, Stock Unit, Stock Award, SAR or Other Stock-Based Award granted under the Plan.

(q) “Grant Agreement” means the written instrument that sets forth the terms and conditions of a Grant, including all amendments thereto.

(r) “Incentive Stock Option” means an Option that is intended to meet the requirements of an incentive stock option under section 422 of the Code.

(s) “Non-Employee Director” means a member of the Board who is not an employee of the Employer.

(t) “Nonqualified Stock Option” means an Option that is not intended to be taxed as an incentive stock option under section 422 of the Code.

(u) “Option” means an option to purchase shares of Company Stock, as described in Section 7.

(v) “Other Stock-Based Award” means any Grant based on, measured by or payable in Company Stock (other than an Option, Stock Unit, Stock Award or SAR), as described in Section 10.

(w) “Participant” means an Employee, Consultant or Non-Employee Director designated by the Committee to participate in the Plan.

(x) “Plan” means this Contango ORE, Inc. 2010 Equity Compensation Plan, as in effect from time to time.

(y) “SAR” means a stock appreciation right as described in Section 10.

(z) “Stock Award” means an award of Company Stock as described in Section 9.

 

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(aa) “Stock Unit” means an award of a phantom unit representing a share of Company Stock, as described in Section 8.

 

  3. Administration

(a) Committee . The Plan shall be administered and interpreted by the Committee. Ministerial functions may be performed by an administrative committee comprised of Company employees appointed by the Committee.

(b) Committee Authority . The Committee shall have the sole authority to (i) determine the Participants to whom Grants shall be made under the Plan, (ii) determine the type, size and terms and conditions of the Grants to be made to each such Participant, (iii) determine the time when the Grants will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms and conditions of any previously issued Grant, subject to the provisions of Section 18 below, and (v) deal with any other matters arising under the Plan.

(c) Committee Determinations . The Committee shall have full power and express discretionary authority to administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion. The Committee’s interpretations of the Plan and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated Participants.

 

  4. Grants

(a) Grants under the Plan may consist of Options as described in Section 7, Stock Units as described in Section 8, Stock Awards as described in Section 9, and SARs or Other Stock-Based Awards as described in Section 10. All Grants shall be subject to such terms and conditions as the Committee deems appropriate and as are specified in writing by the Committee to the Participant in the Grant Agreement.

(b) All Grants shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Grant, that all decisions and determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under such Grant. Grants under a particular Section of the Plan need not be uniform as among the Participants.

 

  5. Shares Subject to the Plan

(a) Shares Authorized . The total aggregate number of shares of Company Stock that may be issued under the Plan is 1,000,000 shares, subject to adjustment as described in subsection (d) below.

 

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(b) Source of Shares; Share Counting . Shares issued under the Plan may be authorized but unissued shares of Company Stock or reacquired shares of Company Stock, including shares purchased by the Company on the open market for purposes of the Plan. If and to the extent Options or SARs granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having been exercised, and if and to the extent that any Stock Awards, Stock Units, or Other Stock-Based Awards are forfeited or terminated, or otherwise are not paid in full, the shares reserved for such Grants shall again be available for purposes of the Plan. Shares of Stock surrendered in payment of the Exercise Price of an Option, and shares withheld or surrendered for payment of taxes, shall not be available for re-issuance under the Plan. If SARs are granted, the full number of shares subject to the SARs shall be considered issued under the Plan, without regard to the number of shares issued upon exercise of the SARs and without regard to any cash settlement of the SARs. To the extent that a Grant of Stock Units or Other Stock-Based Awards is designated in the Grant Agreement to be paid in cash, and not in shares of Company Stock, such Grants shall not count against the share limits in subsection (a).

(c) Individual Limits . All Grants under the Plan shall be expressed in shares of Company Stock. The maximum aggregate number of shares of Company Stock with respect to which all Grants may be made under the Plan to any individual during any calendar year shall be 100,000 shares, subject to adjustment as described in subsection (d) below. The individual limits of this subsection (c) shall apply without regard to whether the Grants are to be paid in Company Stock or cash. All cash payments (other than with respect to Dividend Equivalents) shall equal the Fair Market Value of the shares of Company Stock to which the cash payments relate. A Participant may not accrue Dividend Equivalents during any calendar year in excess of $500,000.

(d) Adjustments . If there is any change in the number or kind of shares of Company Stock outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation, (iii) by reason of a reclassification or change in par value, or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Company Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is substantially reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number of shares of Company Stock available for issuance under the Plan, the maximum number of shares of Company Stock for which any individual may receive Grants in any year, the kind and number of shares covered by outstanding Grants, the kind and number of shares issued and to be issued under the Plan, and the price per share or the applicable market value of such Grants shall be equitably adjusted by the Committee to reflect any increase or decrease in the number of, or change in the kind or value of, the issued shares of Company Stock to preclude, to the extent practicable, the enlargement or dilution of rights and benefits under the Plan and such outstanding Grants; provided, however, that any fractional shares resulting from such adjustment shall be eliminated. In addition, in the event of a Change of Control of the Company, the provisions of Section 15 of the Plan shall apply. Any adjustments to outstanding Grants shall be consistent with section 409A or 424 of the Code, to the extent applicable. Any adjustments determined by the Committee shall be final, binding and conclusive.

 

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  6. Eligibility for Participation

(a) Eligible Persons . All Employees, including Employees who are officers or members of the Board, Consultants, and all Non-Employee Directors shall be eligible to participate in the Plan.

(b) Selection of Participants . The Committee shall select the Employees, Consultants, and Non-Employee Directors to receive Grants and shall determine the number of shares of Company Stock subject to each Grant.

 

  7. Options

(a) General Requirements. The Committee may grant Options to an Employee, Consultant or Non-Employee Director upon such terms and conditions as the Committee deems appropriate under this Section 7. The Committee shall determine the number of shares of Company Stock that will be subject to each Grant of Options to Employees, Consultants and Non-Employee Directors.

(b) Type of Option, Price and Term .

(i) The Committee may grant Incentive Stock Options or Nonqualified Stock Options or any combination of the two, all in accordance with the terms and conditions set forth herein. Incentive Stock Options may be granted only to Employees of the Company or its parents or subsidiaries, as defined in section 424 of the Code. Nonqualified Stock Options may be granted to Employees, Consultants or Non-Employee Directors.

(ii) The Exercise Price of Company Stock subject to an Option shall be determined by the Committee and may be equal to or greater than the Fair Market Value of a share of Company Stock on the date the Option is granted. However, an Incentive Stock Option may not be granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary, as defined in section 424 of the Code, unless the Exercise Price per share is not less than 110% of the Fair Market Value of the Company Stock on the date of grant.

(iii) The Committee shall determine the term of each Option, which shall not exceed ten years from the date of grant. However, an Incentive Stock Option that is granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary, as defined in section 424 of the Code, may not have a term that exceeds five years from the date of grant.

(c) Exercisability of Options.

(i) Options shall become exercisable in accordance with such terms and conditions as may be determined by the Committee and specified in the Grant Agreement. The Committee may grant Options that are subject to achievement of performance goals or other conditions. The Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason.

 

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(ii) The Committee may provide in a Grant Agreement that the Participant may elect to exercise part or all of an Option before it otherwise has become exercisable. Any shares so purchased shall be restricted shares and shall be subject to a repurchase right in favor of the Company during a specified restriction period, with the repurchase price equal to the lesser of (A) the Exercise Price or (B) the Fair Market Value of such shares at the time of repurchase, or such other restrictions as the Committee deems appropriate.

(iii) Options granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such Options may become exercisable, as determined by the Committee, upon the Participant’s death, disability or retirement, or upon a Change of Control or other circumstances permitted by applicable regulations).

(d) Termination of Employment or Service . Except as provided in the Grant Agreement, an Option may only be exercised while the Participant is employed as an Employee or providing service as a Consultant or Non-Employee Director. The Committee shall determine in the Grant Agreement under what circumstances and during what time periods a Participant may exercise an Option after termination of employment or service.

(e) Exercise of Options . A Participant may exercise an Option that has become exercisable, in whole or in part, by delivering a notice of exercise to the Company. The Participant shall pay the Exercise Price for the Option (i) in cash, (ii) if permitted by the Committee, by delivering shares of Company Stock owned by the Participant and having a Fair Market Value on the date of exercise equal to the Exercise Price or by attestation to ownership of shares of Company Stock having an aggregate Fair Market Value on the date of exercise equal to the Exercise Price, (iii) if permitted by the Committee, by tendering shares of Company Stock subject to the exercisable Option and having a Fair Market Value on the date of exercise equal to the Exercise Price, (iv) by payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (v) by such other method as the Committee may approve. Shares of Company Stock used to exercise an Option shall have been held by the Participant for the requisite period of time to avoid adverse accounting consequences to the Company with respect to the Option. Payment for the shares pursuant to the Option, and any required withholding taxes, must be received by the time specified by the Committee depending on the type of payment being made, but in all cases prior to the issuance of the Company Stock.

(f) Limits on Incentive Stock Options . Each Incentive Stock Option shall provide that, if the aggregate Fair Market Value of the stock on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year, under the Plan or any other stock option plan of the Company or a parent or subsidiary, as defined in section 424 of the Code, exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any person who is not an Employee of the Company or a parent or subsidiary, as defined in section 424 of the Code.

 

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  8. Stock Units

(a) General Requirements . The Committee may grant Stock Units to an Employee, Consultant or Non-Employee Director, upon such terms and conditions as the Committee deems appropriate under this Section 8. Each Stock Unit shall represent the right of the Participant to receive a share of Company Stock or an amount based on the value of a share of Company Stock. All Stock Units shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan.

(b) Terms of Stock Units . The Committee may grant Stock Units that are payable on terms and conditions determined by the Committee, which may include payment based on achievement of performance goals. Stock Units may be paid at the end of a specified vesting or performance period, or payment may be deferred to a date authorized by the Committee. The Committee shall determine the number of Stock Units to be granted and the requirements applicable to such Stock Units.

(c) Payment With Respect to Stock Units . Payment with respect to Stock Units shall be made in cash, in Company Stock, or in a combination of the two, as determined by the Committee. The Grant Agreement shall specify the maximum number of shares that can be issued under the Stock Units.

(d) Requirement of Employment or Service . The Committee shall determine in the Grant Agreement under what circumstances a Participant may retain Stock Units after termination of the Participant’s employment or service, and the circumstances under which Stock Units may be forfeited.

(e) Dividend Equivalents . The Committee may grant Dividend Equivalents in connection with Stock Units, under such terms and conditions as the Committee deems appropriate. Dividend Equivalents may be paid to Participants currently or may be deferred. All Dividend Equivalents that are not paid currently shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. Dividend Equivalents may be accrued as a cash obligation, or may be converted to additional Stock Units for the Participant, and deferred Dividend Equivalents may accrue interest, all as determined by the Committee. The Committee may provide that Dividend Equivalents shall be payable based on the achievement of specific performance goals. Dividend Equivalents may be payable in cash or shares of Company Stock or in a combination of the two, as determined by the Committee.

 

  9. Stock Awards

(a) General Requirements . The Committee may issue shares of Company Stock to an Employee, Consultant or Non-Employee Director under a Stock Award, upon such terms and conditions as the Committee deems appropriate under this Section 9. Shares of Company Stock issued pursuant to Stock Awards may be issued for cash consideration or for no cash consideration, and subject to restrictions or no restrictions, as determined by the Committee. The Committee may establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such other criteria as the Committee deems appropriate, including restrictions based upon the achievement of specific performance goals. The Committee shall determine the number of shares of Company Stock to be issued pursuant to a Stock Award.

 

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(b) Requirement of Employment or Service . The Committee shall determine in the Grant Agreement under what circumstances a Participant may retain Stock Awards after termination of the Participant’s employment or service, and the circumstances under which Stock Awards may be forfeited.

(c) Restrictions on Transfer . While Stock Awards are subject to restrictions, a Participant may not sell, assign, transfer, pledge or otherwise dispose of the shares of a Stock Award except upon death as described in Section 14(a). If certificates are issued, each certificate for a share of a Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant. The Participant shall be entitled to have the legend removed when all restrictions on such shares have lapsed. The Company may retain possession of any certificates for Stock Awards until all restrictions on such shares have lapsed.

(d) Right to Vote and to Receive Dividends . The Committee shall determine to what extent, and under what conditions, the Participant shall have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares during the restriction period. The Committee may determine that dividends on Stock Awards shall be withheld while the Stock Awards are subject to restrictions and that the dividends shall be payable only upon the lapse of the restrictions on the Stock Awards, or on such other terms as the Committee determines. Dividends that are not paid currently shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. Accumulated dividends may accrue interest, as determined by the Committee, and shall be paid in cash, shares of Company Stock, or in such other form as dividends are paid on Company Stock, as determined by the Committee.

 

  10. Stock Appreciation Rights and Other Stock-Based Awards

(a) SARs . The Committee may grant SARs to an Employee, Consultant or Non-Employee Director separately or in tandem with an Option. The following provisions are applicable to SARs:

(i) General Requirements . The Committee shall establish the number of shares, the terms and the base amount of the SAR at the time the SAR is granted. The base amount of each SAR shall be not less than the Fair Market Value of a share of Company Stock as of the date of Grant of the SAR.

(ii) Tandem SARs . The Committee may grant tandem SARs either at the time the Option is granted or at any time thereafter while the Option remains outstanding; provided, however, that, in the case of an Incentive Stock Option, SARs may be granted only at the date of the grant of the Incentive Stock Option. In the case of tandem SARs, the number of SARs granted to a Participant that shall be exercisable during a specified period shall not exceed the number of shares of Company Stock that the Participant may purchase upon the exercise of the related Option during such period. Upon the exercise of an Option, the SARs relating to the Company Stock covered by such Option shall terminate. Upon the exercise of SARs, the related Option shall terminate to the extent of an equal number of shares of Company Stock.

 

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(iii) Exercisability . An SAR shall become exercisable in accordance with such terms and conditions as may be specified. The Committee may grant SARs that are subject to achievement of performance goals or other conditions. The Committee may accelerate the exercisability of any or all outstanding SARs at any time for any reason. The Committee shall determine in the Grant Agreement under what circumstances and during what periods a Participant may exercise an SAR after termination of employment or service. A tandem SAR shall be exercisable only while the Option to which it is related is exercisable.

(iv) Grants to Non-Exempt Employees . SARs granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such SARs may become exercisable, as determined by the Committee, upon the Participant’s death, Disability or retirement, or upon a Change of Control or other circumstances permitted by applicable regulations).

(v) Exercise of SARs . When a Participant exercises SARs, the Participant shall receive in settlement of such SARs an amount equal to the value of the stock appreciation for the number of SARs exercised. The stock appreciation for an SAR is the amount by which the Fair Market Value of the underlying Company Stock on the date of exercise of the SAR exceeds the base amount of the SAR as specified in the Grant Agreement.

(vi) Form of Payment . The Committee shall determine whether the stock appreciation for an SAR shall be paid in the form of shares of Company Stock, cash or a combination of the two. For purposes of calculating the number of shares of Company Stock to be received, shares of Company Stock shall be valued at their Fair Market Value on the date of exercise of the SAR. If shares of Company Stock are to be received upon exercise of an SAR, cash shall be delivered in lieu of any fractional share.

(b) Other Stock-Based Awards . The Committee may grant other awards not specified in Sections 7, 8 or 9 above that are based on or measured by Company Stock to Employees, Consultants and Non-Employee Directors, on such terms and conditions as the Committee deems appropriate. Other Stock-Based Awards may be granted subject to achievement of performance goals or other conditions and may be payable in Company Stock or cash, or in a combination of the two, as determined by the Committee in the Grant Agreement.

 

  11. Qualified Performance-Based Compensation

(a) Designation as Qualified Performance-Based Compensation . The Committee may determine that Stock Units, Stock Awards, Dividend Equivalents or Other Stock-Based Awards granted to an Employee shall be considered “qualified performance-based compensation” under section 162(m) of the Code, in which case the provisions of this Section 11 shall apply.

 

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(b) Performance Goals . When Grants are made under this Section 11, the Committee shall establish in writing (i) the objective performance goals that must be met, (ii) the period during which performance will be measured, (iii) the maximum amounts that may be paid if the performance goals are met, and (iv) any other conditions that the Committee deems appropriate and consistent with the requirements of section 162(m) of the Code for “qualified performance-based compensation.” The performance goals shall satisfy the requirements for “qualified performance-based compensation,” including the requirement that the achievement of the goals be substantially uncertain at the time they are established and that the performance goals be established in such a way that a third party with knowledge of the relevant facts could determine whether and to what extent the performance goals have been met. The Committee shall not have discretion to increase the amount of compensation that is payable, but may reduce the amount of compensation that is payable, pursuant to Grants identified by the Committee as “qualified performance-based compensation.”

(c) Criteria Used for Objective Performance Goals . The Committee shall use objectively determinable performance goals based on one or more of the following criteria either in absolute terms or in comparison to publicly available industry standards or indices: stock price, earnings per share, price-earnings multiples, net earnings, operating earnings, revenue, increase in gold or rare earth mineral reserves, EBITDAX (earnings before interest, taxes, depreciation, amortization, geological and geophysical expenses, finding and development costs, tax-effected finding and development costs, impairments, dry hole expenses, and lease expiration and relinquishment expenses), return on assets, stockholder return, return on equity, return on capital employed, relative performance to a comparison group designated by the Committee and increase in gold or rare earth mineral reserves per share. The performance goals may relate to one or more business units or the performance of the Company and its subsidiaries as a whole, or any combination of the foregoing. Performance goals need not be uniform as among Participants.

(d) Timing of Establishment of Goals . The Committee shall establish the performance goals in writing either before the beginning of the performance period or during a period ending no later than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on which 25% of the performance period has been completed, or such other date as may be required or permitted under applicable regulations under section 162(m) of the Code.

(e) Certification of Results . The Committee shall certify the performance results for the performance period specified in the Grant Agreement after the performance period ends. The Committee shall determine the amount, if any, to be paid pursuant to each Grant based on the achievement of the performance goals and the satisfaction of all other terms of the Grant Agreement.

(f) Death, Disability or Other Circumstances . The Committee may provide in the Grant Agreement that Grants under this Section 11 shall be payable, in whole or in part, in the event of the Participant’s death or disability, a Change of Control or under other circumstances consistent with the Treasury regulations and rulings under section 162(m) of the Code.

 

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  12. Deferrals

The Committee may permit or require a Participant to defer receipt of the payment of cash or the delivery of shares that would otherwise be due to the Participant in connection with any Grant. The Committee shall establish rules and procedures for any such deferrals, consistent with applicable requirements of section 409A of the Code.

 

  13. Withholding of Taxes

(a) Required Withholding . All Grants under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements. The Company may require that the Participant or other person receiving or exercising Grants pay to the Company the amount of any federal, state or local taxes that the Company is required to withhold with respect to such Grants, or the Company may deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such Grants.

(b) Election to Withhold Shares . If the Committee so permits, shares of Company Stock may be withheld to satisfy the Company’s tax withholding obligation with respect to Grants paid in Company Stock, at the time such Grants become taxable, up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.

 

  14. Transferability of Grants

(a) Restrictions on Transfer . Except as described in subsection (b) below, only the Participant may exercise rights under a Grant during the Participant’s lifetime, and a Participant may not transfer those rights except by will or by the laws of descent and distribution. When a Participant dies, the personal representative or other person entitled to succeed to the rights of the Participant may exercise such rights. Any such successor must furnish proof satisfactory to the Company of his or her right to receive the Grant under the Participant’s will or under the applicable laws of descent and distribution.

(b) Transfer of Nonqualified Stock Options to or for Family Members . Notwithstanding the foregoing, the Committee may provide, in a Grant Agreement, that a Participant may transfer Nonqualified Stock Options to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with the applicable securities laws, according to such terms as the Committee may determine; provided that the Participant receives no consideration for the transfer of an Option and the transferred Option shall continue to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer.

 

  15. Consequences of a Change of Control

(a) Change of Control . In the event of a Change of Control, the Committee may take any one or more of the following actions with respect to all outstanding Grants, without the consent of any Participant: (i) the Committee may determine that outstanding Options and SARs shall be fully exercisable, and restrictions on outstanding Stock Awards, Stock Units and Other Stock-Based Awards shall lapse, as of the date of the Change of Control or at such other time as

 

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the Committee determines, (ii) the Committee may require that Participants surrender their outstanding Options and SARs for cancellation in exchange for one or more payments by the Company, in cash or Company Stock as determined by the Committee, in an amount equal to the amount, if any, by which the then Fair Market Value of the shares of Company Stock subject to the Participant’s unexercised Options and SARs exceeds the Exercise Price or base amount, as applicable, and on such terms as the Committee determines, (iii) after giving Participants an opportunity to exercise their outstanding Options and SARs, the Committee may terminate any or all unexercised Options and SARs at such time as the Committee deems appropriate, (iv) with respect to Participants holding Stock Units, Other Stock-Based Awards or Dividend Equivalents, the Committee may determine that such Participants shall receive one or more payments in settlement of such Stock Units, Other Stock-Based Awards or Dividend Equivalents, in such amount and form and on such terms as may be determined by the Committee, or (v) the Committee may determine that Grants that remain outstanding after the Change of Control shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving corporation). Without limiting the foregoing, if the per share Fair Market Value of the Company Stock does not exceed the per share Exercise Price or base price of an Option or SAR, as applicable, the Company shall not be required to make any payment to the Grantee upon surrender of the Option or SAR. Any acceleration, surrender, termination, settlement or conversion shall take place as of the date of the Change of Control or such other date as the Committee may specify.

(b) Other Transactions . The Committee may provide in a Grant Agreement that a sale or other transaction involving a subsidiary or other business unit of the Company shall be considered a Change of Control for purposes of a Grant, or the Committee may establish other provisions that shall be applicable in the event of a specified transaction.

 

  16. Requirements for Issuance of Shares

No Company Stock shall be issued in connection with any Grant hereunder unless and until all legal requirements applicable to the issuance of such Company Stock have been complied with to the satisfaction of the Committee. The Committee shall have the right to condition any Grant made to any Participant hereunder on such Participant’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Committee shall deem necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions. Certificates representing shares of Company Stock issued under the Plan will be subject to such stop-transfer orders and other restrictions as may be required by applicable laws, regulations and interpretations, including any requirement that a legend be placed thereon. No Participant shall have any right as a stockholder with respect to Company Stock covered by a Grant until shares have been issued to the Participant.

 

  17. Amendment and Termination of the Plan

(a) Amendment . The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without approval of the stockholders of the Company if such approval is required in order to comply with the Code or applicable laws, or to comply with applicable stock exchange requirements. No amendment or termination of this Plan shall, without the consent of the Participant, materially impair any rights or obligations under any

 

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Grant previously made to the Participant under the Plan, unless such right has been reserved in the Plan or the Grant Agreement, or except as provided in Section 18(b) below. Notwithstanding anything in the Plan to the contrary, the Board may amend the Plan in such manner as it deems appropriate in the event of a change in applicable law or regulations.

(b) No Repricing Without Stockholder Approval . Notwithstanding anything in the Plan to the contrary, the Committee may not reprice Options or SARs, nor may the Board amend the Plan to permit repricing of Options or SARs, unless the stockholders of the Company provide prior approval for such repricing. The term “repricing” shall have the meaning given to that term in the rules of the principal stock exchange on which the Company’s shares are listed, or in the absence of such an exchange, the New York Stock Exchange, and shall not include adjustments pursuant to Section 5(d) of the Plan.

(c) Stockholder Approval for “Qualified Performance-Based Compensation .” If Grants are made under Section 11 above, the Plan must be reapproved by the Company’s stockholders no later than the first stockholders meeting that occurs in the fifth year following the year in which the stockholders previously approved the provisions of Section 11, if additional Grants are to be made under Section 11 and if required by section 162(m) of the Code or the regulations thereunder.

(d) Termination of Plan . The Plan shall terminate on the day immediately preceding the tenth anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or is extended by the Board with the approval of the stockholders. The termination of the Plan shall not impair the power and authority of the Committee with respect to an outstanding Grant.

 

  18. Miscellaneous

(a) Grants in Connection with Corporate Transactions and Otherwise . Nothing contained in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any corporation, firm or association, including Grants to employees thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of the Company to grant stock options or make other stock-based awards outside of this Plan. Without limiting the foregoing, the Committee may make a Grant to an employee of another corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving the Company in substitution for a grant made by such corporation. The terms and conditions of the Grants may vary from the terms and conditions required by the Plan and from those of the substituted stock incentives, as determined by the Committee

(b) Compliance with Law . The Plan, the exercise of Options or SARs and the obligations of the Company to issue or transfer shares of Company Stock under Grants shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required. With respect to persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. In addition, it is the intent of the Company that Incentive Stock Options comply with the applicable provisions of section 422

 

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of the Code, that Grants of “qualified performance-based compensation” comply with the applicable provisions of section 162(m) of the Code and that, to the extent applicable, Grants comply with the requirements of section 409A of the Code or an exception from such requirements. To the extent that any legal requirement of section 16 of the Exchange Act or section 422, 162(m) or 409A of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange Act or section 422, 162(m) or 409A of the Code, that Plan provision shall cease to apply. The Committee may revoke any Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation. The Committee may also adopt rules regarding the withholding of taxes on payments to Participants. The Committee may, in its sole discretion, agree to limit its authority under this Section.

(c) Section 409A . This Plan and Grants under the Plan are intended to comply with section 409A of the Code and its corresponding regulations, or an exemption, and payments may only be made upon an event and in a manner permitted by section 409A, to the extent applicable. Notwithstanding anything in a Grant Agreement to the contrary, if required by section 409A, if a Participant is considered a “specified employee” for purposes of section 409A and if payment of any amounts under the Grant Agreement is required to be delayed for a period of six months after separation from service pursuant to section 409A, payment of such amounts shall be delayed as required by section 409A, and the accumulated amounts shall be paid in a lump sum payment within ten days after the end of the six-month period (or within 60 days after the death of the Participant, if the Participant dies during the postponement period). Under a Grant that is subject to section 409A, all payments to be made upon a termination of employment may only be made upon a “separation from service” under section 409A and, unless the Grant Agreement provides otherwise, the right to a series of installment payments shall be treated as a right to a series of separate payments. In no event may a Participant, directly or indirectly, designate the calendar year of a payment other than in accordance with section 409A.

(d) Prohibition on Hedging; Application of Company Clawback Policy .

(i) No Hedging . Except to the extent that the Board provides otherwise in an applicable written policy as may be effect from time to time, no Employee, Non-Employee Director or Consultant, or any of their designees, may engage in any transaction that is designed to hedge or offset any decrease in the market value of the Company’s equity securities with respect to any Company Stock issued under the Plan or any Company Stock subject to a Grant under the Plan.

(ii) Clawback Policy . All Grants under the Plan are subject to the applicable provisions of the Company’s clawback or recoupment policy approved by the Board, as such policy may be in effect from time to time.

(e) Enforceability . The Plan shall be binding upon and enforceable against the Company and its successors and assigns.

(f) Funding of the Plan; Limitation on Rights . This Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Grants under this Plan. Nothing contained in the Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary

 

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relationship between the Company and any Participant or any other person. No Participant or any other person shall under any circumstances acquire any property interest in any specific assets of the Company. To the extent that any person acquires a right to receive payment from the Company hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company.

(g) Rights of Participants . Nothing in this Plan shall entitle any Employee, Consultant, Non-Employee Director or other person to any claim or right to receive a Grant under this Plan. Neither this Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained by or in the employment or service of the Employer.

(h) No Fractional Shares . No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan or any Grant. The Committee shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

(i) Employees Subject to Taxation Outside the United States . With respect to Participants who are subject to taxation in countries other than the United States, the Committee may make Grants on such terms and conditions as the Committee deems appropriate to comply with the laws of the applicable countries, and the Committee may create such procedures, addenda and subplans and make such modifications as may be necessary or advisable to comply with such laws.

(j) Governing Law . The validity, construction, interpretation and effect of the Plan and Grant Agreements issued under the Plan shall be governed and construed by and determined in accordance with the laws of the state of Delaware, without giving effect to the conflict of laws provisions thereof.

 

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Exhibit 10.4

CONTRIBUTION AGREEMENT

DATED AS OF NOVEMBER 1, 2010

BY AND BETWEEN

CONTANGO OIL & GAS COMPANY

AND

CONTANGO ORE, INC.


 

CONTRIBUTION AGREEMENT

This Contribution Agreement (“Agreement”) is entered into as of November 1, 2010 to be effective on the date immediately before the distribution of shares of the Company’s common stock to the stockholders of Contango (the “Effective Date”), by and between Contango Oil & Gas Company, a Delaware corporation (“Contango”), and Contango ORE, Inc., a Delaware corporation (“Company”). Contango and Company are hereinafter sometimes referred to collectively as the “Parties” and individually as a “Party.”

RECITALS

WHEREAS, the Company was formed for the purpose of engaging in the exploration and development of gold and associated minerals and rare earth elements and related activities.

WHEREAS, Contango is the present owner of interests in certain mineral leases in the State of Alaska and related agreements, patent claims and other assets(collectively, the “Properties”) described in Exhibit A attached hereto and made a part hereof.

WHEREAS, Contango desires to contribute its interest in the Properties, together with associated obligations, and cash to the Company in exchange for all the shares of common stock, $.01 par value, of Company (“Common Stock”), except for shares issued to three executives and two directors of the Company and to Avalon Development Corporation (“Restricted Shares”), but subject to the Amended and Restated Conveyance of Overriding Royalty Interest dated as of September 15, 2010 between Contango Mining Company, previously known as Contango ORE Company and Juneau Exploration, L.P., a Texas limited partnership and the Conveyance of Overriding Royalty Interest in Mining Claims dated as of September 15, 2010 between Contango Mining Company and Juneau Exploration, L.P. (together, the “Conveyances”).

NOW, THEREFORE, in consideration of the provisions and the respective covenants and agreements set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

CONTRIBUTIONS

1.1 Contribution . Upon the terms contained herein, and subject to the conditions, and in reliance on the representations, warranties and covenants set forth herein, Contango agrees to contribute the Properties, together with associated obligations, and $3,500,000 to the Company, but subject to the Conveyances, and, in exchange, Company agrees to issue approximately 1,500,000 shares of Common Stock of the Company, constituting all the shares outstanding of the Company (except for the Restricted Shares), which Contango will distribute to its shareholders pursuant to a Registration Statement on Form 10 originally filed with the SEC on September 29, 2010 and amended to the date of its effectiveness with the SEC (“Form 10”).


 

ARTICLE II

COMPANY’S REPRESENTATIONS AND WARRANTIES

2.1 Representations and Warranties . Company represents and warrants to each other Party as follows:

(a) Company is a corporation duly organized, validly existing and in good standing under the laws of Delaware, and has all requisite corporate power and authority to own property and to carry on its business as now as presently conducted.

(b) The authorized capital stock of Company consists of 30,000,000 shares of Common Stock, of which 100 shares of Common Stock are issued and outstanding and held by Contango, and 15,000 shares of preferred stock, $.01 par value, of which no shares of preferred stock are issued or outstanding. All of the shares of Common Stock to be issued hereunder will be duly authorized and validly issued and will be fully paid and nonassessable. Company has no other shares of Common Stock or preferred stock reserved for issuance except for the Restricted Shares as described in the Form 10. There are no preemptive or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements, calls, puts, commitments or rights of any kind that obligate Company to issue, purchase or sell any shares of capital stock or other equity securities of Company or any securities or obligations convertible or exchangeable into or exercisable for, or giving any person a right to sell to, subscribe for or acquire from Company, any equity securities of Company, and no securities or obligations of Company evidencing those rights are authorized, issued or outstanding except for the Restricted Shares as described in the Form 10.

(c) Company has the requisite corporate power and authority to, and has taken all corporate action necessary to, execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by Company and is a valid and binding agreement of Company, enforceable against Company in accordance with its terms, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to creditors’ rights generally and (ii) the availability of injunctive relief and other equitable remedies. The Board of Directors of Company and the sole stockholder of Company have unanimously adopted resolutions approving this Agreement and the other transactions contemplated hereby.

(d) No consent, approval, order, license, permit or authorization of, or registration, declaration, notice or filing with, any governmental entity is necessary or required to be obtained or made by or with respect to Company in connection with the execution and delivery of this Agreement, the performance by Company of its obligations under this Agreement and the consummation by Company of the transactions contemplated hereby.

 

2


 

ARTICLE III

CONTANGO REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties . Contango represents and warrants to Company as follows:

(a) Contango is an organization duly organized, validly existing, and in good standing under the laws of its place of organization and has all requisite power and authority to own, lease, and operate the Properties and to carry on its business as presently conducted.

(b) Contango has the power and authority to, and has taken all action necessary to, execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by the governing authority of Contango and no other proceedings on the part of Contango are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by Contango, and constitutes a valid and binding agreement of Contango, enforceable against Contango in accordance with its terms, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting or relating to creditors’ rights generally and (ii) the availability of injunctive relief and other equitable remedies.

(c) The execution and delivery of this Agreement by Contango, and the consummation by Contango of the transactions contemplated hereby, do not:

(i) conflict with or result in any breach of Contango’s governing documents, including any certificate of incorporation, bylaw, members operating agreement or partnership agreement;

(ii) result in a default (including with notice, lapse of time, or both), or give rise to any right of termination, cancellation, or acceleration, under any of the terms, conditions, or provisions of any note, bond, mortgage, indenture, agreement, lease or other instrument or obligation to which Contango is a party or by which Contango, or any of the Properties may be bound;

(iii) violate any law or order applicable to Contango, or any of the Properties; and

(iv) require any declaration, filing, or registration with, or notice to, or authorization, consent, or approval of any governmental entity.

(d) Contango represents and warrants that it is an “accredited investor” within the meaning of Regulation D under the Securities Act.

 

3


 

(e) Contango acknowledges its understanding that the offering and sale of the Common Stock pursuant to this Agreement is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) of the Securities Act and the provisions of Rule 506 of Regulation D promulgated thereunder.

ARTICLE IV

CLOSING

4.1 Closing . The closing of the exchange pursuant to this Agreement for shares of the Common Stock of Company, as provided herein (the “Closing”) shall occur at the office of Morgan, Lewis & Bockius LLP, 1000 Louisiana Street, Suite 1300, Houston, Texas 77002, on the Effective Date, or at such other time and place as the Parties may mutually agree (such date and time of Closing being herein referred to collectively as the “Closing Date”). At the Closing, Company shall deliver share certificates to the Contango, evidencing the number of shares of Common Stock of Company to be delivered hereunder, in such names and amounts as Contango may require to enable Contango to distribute to its shareholders shares of Common Stock as described in the Form 10.

ARTICLE V

COVENANTS OF THE PARTIES

5.1 Public Statements . Each Party will consult with the other Parties prior to issuing any press release or otherwise making public announcements with respect to the transactions contemplated by this Agreement, except (a) as may be required by law or by obligations pursuant to any listing agreement with or rules of any national securities exchange or any self-regulatory organization and (b) for any consultation that would not be reasonably practicable as a result of requirements of law.

5.2 Tax Matters . All transfer, documentary, stamp, registration, sales and use taxes, including real property conveyance taxes (“Transfer Taxes”), incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by Company. To the extent required by applicable law, Company shall, at its own expense, file all necessary tax returns and other documentation with respect to all such Transfer Taxes.

5.3 Execution of Additional Documents . Each Party will at any time, and from time to time before and after the Closing, upon request of any other Party, execute, acknowledge and deliver all such further assignments, transfers, conveyances, powers of attorney and assurances, and take all such further action, as may be required to carry out the intent and purpose of this Agreement, and to transfer and vest title to any asset being contributed hereunder, and to protect the right, title and interest in and enjoyment of all of the assets contributed, assigned, transferred, delivered and conveyed pursuant hereto.

5.4 Costs and Expenses . Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Company.

5.5 Consents and Approvals . Each Party (a) shall, at its cost and expense, use reasonable efforts to obtain all necessary authorizations, consents, waivers, and approvals of all governmental and regulatory authorities, and of all other persons or entities required in connection with the execution, delivery and performance by it of this Agreement, including the

 

4


registration pursuant to Form 10 and (b) shall reasonably assist and cooperate with Company and the other Parties in preparing and filing all documents, including permits, transfers, modifications and applications required to be submitted by Company and Contango to any third party (including any governmental or regulatory authority) in connection with such transactions and in obtaining any governmental consents, waivers, authorizations or approvals which may be required to be obtained by Company and the other Parties in connection with such transactions, including the registration pursuant to Form 10.

ARTICLE VI

CONDITIONS TO CLOSING

6.1 Parties’ Conditions of Closing . The obligations of each Party to consummate the transactions contemplated hereby shall be subject to and conditioned upon, at such Party’s option, the satisfaction at the Closing of each of the following conditions:

(a) All representations and warranties of the Parties contained herein shall be true and correct at and as of the Closing Date with the same effect as though made as of the Closing Date and all Parties shall have performed all agreements and covenants and satisfied all conditions on its part to be performed or satisfied by the Closing Date pursuant to the terms hereof.

(b) The Parties shall have taken all of the actions required to be taken by it pursuant to Article IV .

ARTICLE VII

MISCELLANEOUS

7.1 Amendment and Modification . This Agreement may be amended, modified, or supplemented only by a written agreement executed and delivered by all the Parties.

7.2 Waiver of Compliance . Except as otherwise provided in this Agreement, any failure of a Party to comply with any obligation, covenant, agreement, or condition herein may be waived by the party entitled to the benefits thereof only by a written instrument signed by the Party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement, or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

 

5


 

7.3 Notices . Notices, requests, instructions or other documents to be given under this Agreement must be in writing and will be deemed given, (a) when sent if sent by facsimile, provided that the fax is promptly confirmed by telephone confirmation thereof, (b) when delivered, if delivered personally to the intended recipient and (c) one (1) business day later, if sent by overnight delivery via a national courier service, and in each case, addressed to a Party at the following address for such Party:

 

If to Contango:

   Contango Oil & Gas Company
  

3700 Buffalo Speedway, Suite 960

Houston, Texas 77098

Attn: Kenneth R. Peak

Fax: 713.960.1065

Tel: 713.960.1901

If to Company:    Contango ORE, Inc.
  

3700 Buffalo Speedway, Suite 730

Houston, Texas 77098

Attn: Kenneth R. Peak

Fax: 713.960.1065

Tel: 713.960.1901

or to those other persons or addresses as may be designated in writing by the Party to receive the notice as provided above.

7.4 Assignment . This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests, or obligations hereunder may be assigned by any Party, without the prior written consent of the other Parties, nor is this Agreement intended to confer upon any other person except the Parties any rights or remedies hereunder.

7.5 No Third Party Beneficiaries . This Agreement is not intended to, and does not, confer upon any person other than the Parties any rights or remedies hereunder. Without limiting the generality of the foregoing, no provision of this Agreement creates any third party beneficiary rights in any other person.

7.6 Governing Law And Venue; Waiver Of Jury Trial .

(a) THIS AGREEMENT WILL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE CONFLICTS OF RULES THEREOF. The Parties hereby irrevocably submit exclusively to the jurisdiction of the State of Delaware and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by such courts, and each Party irrevocably agrees that all claims with respect to such action or proceeding will be heard and determined in Delaware state court. Each Party hereby consents to and grants any such court jurisdiction over such Party and over the subject matter of such dispute and agrees that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 7.3 or in such other manner as may be permitted by law, will be valid and sufficient service thereof.

 

6


 

(b) EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT THE PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

7.7 Severability . Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

7.8 Entire Agreement . This Agreement will be a valid and binding agreement of the Parties only if and when it is fully executed and delivered by the Parties, and until such execution and delivery no legal obligation will be created by virtue hereof. This Agreement embodies the entire agreement and understanding of the Parties hereto in respect of the transactions contemplated by this Agreement, and supersedes all prior agreements, understandings, representations and warranties, both written and oral, between or among the Parties or any of them with respect to the transactions contemplated herein.

7.9 No Consequential Damages . Notwithstanding anything to the contrary elsewhere in this Agreement or provided for under any applicable law, no Party will, in any event, be liable to any other Party, either in contract, in tort or otherwise, for any consequential, incidental, indirect, special, or punitive damages of such other Party whether or not the possibility of such damages has been disclosed to such other Party in advance or could have been reasonably foreseen by such other Party.

7.10 Counterparts . This Agreement, and any certificates and instruments delivered under or in accordance herewith, may be executed in any number of counterparts (including by facsimile or other electronic transmission), each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same instrument, it being understood that all of the Parties need not sign the same counterpart.

[Signature Page Follows]

 

7


 

IN WITNESS WHEREOF, the Parties have caused this Contribution Agreement to be signed by their respective duly authorized officers as of the date first above written.

 

CONTANGO OIL & GAS COMPANY
By:   /s/ KENNETH R. PEAK
Name:   Kenneth R. Peak
Title:   Chairman and Chief Executive Officer
CONTANGO ORE, INC.
By:   /s/ KENNETH R. PEAK
Name:   Kenneth R. Peak
Title:   Chairman, President and CEO

Signature Page to Contribution Agreement


 

EXHIBIT A

GOLD PROPERTIES

Mineral Lease, effective as of July 15, 2008, between the Native Village of Tetlin and Juneau Exploration, L.P., d/b/a Juneau Mining Company, as amended by Amendment No. 1 to Mineral Lease, effective as of October 1, 2009, as assigned to Contango ORE, Inc.

LAD CLAIMS

TRIPLE Z PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   Lad 1    160    18N    15E    3    Copper River    666952

2

   Lad 2    160    18N    15E    2    Copper River    666953

3

   Lad 3    160    18N    15E    10    Copper River    666954

4

   Lad 4    160    18N    15E    11    Copper River    666955


 

[Exhibit A continued]

TOK CLAIMS

TETLIN PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   TOK 1    40    16N    13E    9    Copper River    614253

2

   TOK 2    40    16N    13E    9    Copper River    614254

3

   TOK 3    40    16N    13E    9    Copper River    614255

4

   TOK 4    40    16N    13E    9    Copper River    614256

5

   TOK 5    160    16N    13E    8    Copper River    614257

6

   TOK 6    160    16N    13E    9    Copper River    614258

7

   TOK 7    40    16N    13E    9    Copper River    614259

8

   TOK 8    40    16N    13E    9    Copper River    614260

9

   TOK 9    40    16N    13E    9    Copper River    614261

10

   TOK 10    40    16N    13E    9    Copper River    614262

11

   TOK 11    40    16N    13E    10    Copper River    614263

12

   TOK 12    40    16N    13E    10    Copper River    614264

13

   TOK 13    160    16N    12E    13    Copper River    614265

14

   TOK 14    160    16N    13E    18    Copper River    614266

15

   TOK 15    160    16N    13E    18    Copper River    614267

16

   TOK 16    160    16N    13E    17    Copper River    614268

17

   TOK 17    160    16N    13E    17    Copper River    614269

18

   TOK 18    160    16N    13E    16    Copper River    614270


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

19

   TOK 19    40    16N    13E    16    Copper River    614271

20

   TOK 20    40    16N    13E    16    Copper River    614272

21

   TOK 21    40    16N    13E    15    Copper River    614273

22

   TOK 22    40    16N    13E    16    Copper River    614274

23

   TOK 23    40    16N    13E    16    Copper River    614275

24

   TOK 24    40    16N    13E    15    Copper River    614276

25

   TOK 25    160    16N    12E    14    Copper River    614277

26

   TOK 26    160    16N    12E    13    Copper River    614278

27

   TOK 27    160    16N    12E    13    Copper River    614279

28

   TOK 28    160    16N    13E    18    Copper River    614280

29

   TOK 29    160    16N    13E    18    Copper River    614281

30

   TOK 30    160    16N    13E    17    Copper River    614282

31

   TOK 31    160    16N    13E    17    Copper River    614283

32

   TOK 32    160    16N    13E    16    Copper River    614284

33

   TOK 33    40    16N    13E    16    Copper River    614285

34

   TOK 34    40    16N    13E    16    Copper River    614286

35

   TOK 35    160    16N    12E    23    Copper River    614287

36

   TOK 36    160    16N    12E    23    Copper River    614288

37

   TOK 37    160    16N    12E    24    Copper River    614289

38

   TOK 38    160    16N    12E    24    Copper River    614290

39

   TOK 39    160    16N    13E    19    Copper River    614291

40

   TOK 40    160    16N    13E    19    Copper River    614292


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

41

   TOK 41    160    16N    13E    20    Copper River    614293

42

   TOK 42    160    16N    13E    20    Copper River    614294

43

   TOK 43    40    16N    13E    21    Copper River    614295

44

   TOK 44    40    16N    13E    21    Copper River    614296

45

   TOK 45    40    16N    13E    21    Copper River    614297

46

   TOK 46    40    16N    13E    21    Copper River    614298

47

   TOK 47    160    16N    12E    22    Copper River    614299

48

   TOK 48    160    16N    12E    23    Copper River    614300

49

   TOK 49    160    16N    12E    23    Copper River    614301

50

   TOK 50    160    16N    12E    24    Copper River    614302

51

   TOK 51    160    16N    12E    24    Copper River    614303

52

   TOK 52    160    16N    13E    19    Copper River    614304

53

   TOK 53    160    16N    13E    19    Copper River    614305

54

   TOK 54    160    16N    13E    20    Copper River    614306

55

   TOK 55    160    16N    13E    20    Copper River    614307

56

   TOK 56    40    16N    13E    21    Copper River    614308

57

   TOK 57    40    16N    13E    21    Copper River    614309

58

   TOK 58    40    16N    13E    21    Copper River    614310

59

   TOK 59    40    16N    13E    21    Copper River    614311

60

   TOK 60    40    16N    13E    21    Copper River    614312

61

   TOK 61    160    16N    12E    27    Copper River    614313

62

   TOK 62    160    16N    12E    27    Copper River    614314


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

63

   TOK 63    160    16N    12E    26    Copper River    614315

64

   TOK 64    160    16N    12E    26    Copper River    614316

65

   TOK 65    160    16N    12E    25    Copper River    614317

66

   TOK 66    40    16N    12E    25    Copper River    614318

67

   TOK 67    40    16N    12E    25    Copper River    614319

68

   TOK 68    40    16N    12E    25    Copper River    614320

69

   TOK 69    40    16N    12E    25    Copper River    614321

70

   TOK 70    40    16N    13E    30    Copper River    614322

71

   TOK 71    40    16N    13E    30    Copper River    614323

72

   TOK 72    40    16N    13E    30    Copper River    614324

73

   TOK 73    40    16N    13E    30    Copper River    614325

74

   TOK 74    160    16N    13E    30    Copper River    614326

75

   TOK 75    160    16N    13E    29    Copper River    614327

76

   TOK 76    160    16N    13E    29    Copper River    614328

77

   TOK 77    40    16N    13E    28    Copper River    614329

78

   TOK 78    40    16N    13E    28    Copper River    614330

79

   TOK 79    40    16N    13E    28    Copper River    614331

80

   TOK 80    40    16N    13E    28    Copper River    614332

81

   TOK 81    40    16N    13E    28    Copper River    614333

82

   TOK 82    40    16N    13E    28    Copper River    614334

83

   TOK 83    160    16N    12E    28    Copper River    614335

84

   TOK 84    160    16N    12E    27    Copper River    614336


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

85

   TOK 85    160    16N    12E    27    Copper River    614337

86

   TOK 86    160    16N    12E    26    Copper River    614338

87

   TOK 87    160    16N    12E    26    Copper River    614339

88

   TOK 88    160    16N    12E    25    Copper River    614340

89

   TOK 89    40    16N    12E    25    Copper River    614341

90

   TOK 90    40    16N    12E    25    Copper River    614342

91

   TOK 91    40    16N    13E    29    Copper River    614343

92

   TOK 92    40    16N    13E    29    Copper River    614344

93

   TOK 93    40    16N    13E    29    Copper River    614345

94

   TOK 94    40    16N    13E    29    Copper River    614346

95

   TOK 95    40    16N    13E    28    Copper River    614347

96

   TOK 96    160    16N    12E    33    Copper River    614348

97

   TOK 97    160    16N    12E    33    Copper River    614349

98

   TOK 98    160    16N    12E    34    Copper River    614350

99

   TOK 99    40    16N    12E    34    Copper River    614351

100

   TOK 100    40    16N    12E    34    Copper River    614352

101

   TOK 101    40    16N    12E    34    Copper River    614353

102

   TOK 102    40    16N    12E    34    Copper River    614354

103

   TOK 103    40    16N    12E    35    Copper River    614355

104

   TOK 104    40    16N    12E    35    Copper River    614356

105

   TOK 105    40    16N    12E    35    Copper River    614357

106

   TOK 106    40    16N    12E    35    Copper River    614358


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

107

   TOK 107    40    16N    12E    35    Copper River    614359

108

   TOK 108    40    16N    12E    35    Copper River    614360

109

   TOK 109    40    16N    12E    35    Copper River    614361

110

   TOK 110    40    16N    12E    36    Copper River    614362

111

   TOK 111    40    16N    12E    36    Copper River    614363

112

   TOK 112    40    16N    12E    36    Copper River    614364

113

   TOK 113    40    16N    12E    36    Copper River    614365

114

   TOK 114    160    16N    12E    32    Copper River    614366

115

   TOK 115    160    16N    12E    32    Copper River    614367

116

   TOK 116    160    16N    12E    33    Copper River    614368

117

   TOK 117    160    16N    12E    33    Copper River    614369

118

   TOK 118    40    16N    12E    34    Copper River    614370

119

   TOK 119    40    16N    12E    34    Copper River    614371

120

   TOK 120    40    16N    12E    34    Copper River    614372

121

   TOK 121    40    16N    12E    34    Copper River    614373

122

   TOK 122    40    16N    12E    34    Copper River    614374


 

[Exhibit A continued]

REE PROPERTIES

ALT CLAIMS

ALATNA PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   ALT 1    160    28N    23W    5    Fairbanks    701674

2

   ALT 2    160    28N    23W    5    Fairbanks    701675

3

   ALT 3    160    28N    23W    4    Fairbanks    701676

4

   ALT 4    160    28N    23W    4    Fairbanks    701677

5

   ALT 5    160    28N    23W    3    Fairbanks    701678

6

   ALT 6    160    28N    23W    3    Fairbanks    701679

7

   ALT 7    160    28N    23W    2    Fairbanks    701680

8

   ALT 8    160    28N    23W    8    Fairbanks    701681

9

   ALT 9    160    28N    23W    8    Fairbanks    701682

10

   ALT 10    160    28N    23W    9    Fairbanks    701683

11

   ALT 11    160    28N    23W    9    Fairbanks    701684

12

   ALT 12    160    28N    23W    10    Fairbanks    701685

13

   ALT 13    160    28N    23W    10    Fairbanks    701686

14

   ALT 14    160    28N    23W    11    Fairbanks    701687

15

   ALT 15    160    28N    23W    8    Fairbanks    701688

16

   ALT 16    160    28N    23W    8    Fairbanks    701689

17

   ALT 17    160    28N    23W    9    Fairbanks    701690

18

   ALT 18    160    28N    23W    9    Fairbanks    701691

19

   ALT 19    160    28N    23W    10    Fairbanks    701692

20

   ALT 20    160    28N    23W    10    Fairbanks    701693

21

   ALT 21    160    28N    23W    11    Fairbanks    701694

22

   ALT 22    160    28N    23W    17    Fairbanks    701695

23

   ALT 23    160    28N    23W    17    Fairbanks    701696

24

   ALT 24    160    28N    23W    16    Fairbanks    701697

25

   ALT 25    160    28N    23W    16    Fairbanks    701698

26

   ALT 26    160    28N    23W    15    Fairbanks    701699

27

   ALT 27    160    28N    23W    15    Fairbanks    701700

28

   ALT 28    160    28N    23W    14    Fairbanks    701701

29

   ALT 29    160    28N    23W    17    Fairbanks    701702

30

   ALT 30    160    28N    23W    17    Fairbanks    701703

31

   ALT 31    160    28N    23W    16    Fairbanks    701704

32

   ALT 32    160    28N    23W    16    Fairbanks    701705

33

   ALT 33    160    28N    23W    15    Fairbanks    701706


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

34

   ALT 34    160    28N    23W    15    Fairbanks    701707

35

   ALT 35    160    28N    23W    14    Fairbanks    701708

36

   ALT 36    160    28N    23W    20    Fairbanks    701709

37

   ALT 37    160    28N    23W    20    Fairbanks    701710

38

   ALT 38    160    28N    23W    21    Fairbanks    701711

39

   ALT 39    160    28N    23W    21    Fairbanks    701712

40

   ALT 40    160    28N    23W    22    Fairbanks    701713

41

   ALT 41    160    28N    23W    22    Fairbanks    701714

42

   ALT 42    160    28N    23W    23    Fairbanks    701715

43

   ALT 43    160    28N    24W    33    Fairbanks    701716

44

   ALT 44    160    28N    24W    33    Fairbanks    701717

45

   ALT 45    160    28N    24W    34    Fairbanks    701718

46

   ALT 46    160    28N    24W    34    Fairbanks    701719

47

   ALT 47    160    28N    24W    35    Fairbanks    701720

48

   ALT 48    160    28N    24W    35    Fairbanks    701721

49

   ALT 49    160    28N    24W    36    Fairbanks    701722

50

   ALT 50    160    27N    25W    2    Fairbanks    701723

51

   ALT 51    160    27N    25W    2    Fairbanks    701724

52

   ALT 52    160    27N    25W    1    Fairbanks    701725

53

   ALT 53    160    27N    25W    1    Fairbanks    701726

54

   ALT 54    160    27N    24W    6    Fairbanks    701727

55

   ALT 55    160    27N    24W    6    Fairbanks    701728

56

   ALT 56    160    27N    24W    5    Fairbanks    701729

57

   ALT 57    160    27N    24W    5    Fairbanks    701730

58

   ALT 58    160    27N    24W    4    Fairbanks    701731

59

   ALT 59    160    27N    24W    4    Fairbanks    701732

60

   ALT 60    160    27N    24W    3    Fairbanks    701733

61

   ALT 61    160    27N    24W    3    Fairbanks    701734

62

   ALT 62    160    27N    24W    2    Fairbanks    701735

63

   ALT 63    160    27N    24W    2    Fairbanks    701736

64

   ALT 64    160    27N    24W    1    Fairbanks    701737

65

   ALT 65    160    27N    25W    2    Fairbanks    701738

66

   ALT 66    160    27N    25W    2    Fairbanks    701739

67

   ALT 67    160    27N    25W    1    Fairbanks    701740

68

   ALT 68    160    27N    24W    6    Fairbanks    701741

69

   ALT 69    160    27N    24W    5    Fairbanks    701742

70

   ALT 70    160    27N    24W    5    Fairbanks    701743

71

   ALT 71    160    27N    24W    4    Fairbanks    701744

72

   ALT 72    160    27N    24W    4    Fairbanks    701745

73

   ALT 73    160    27N    24W    3    Fairbanks    701746

74

   ALT 74    160    27N    24W    3    Fairbanks    701747


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

75

   ALT 75    160    27N    24W    2    Fairbanks    701748

76

   ALT 76    160    27N    24W    2    Fairbanks    701749

77

   ALT 77    160    27N    24W    1    Fairbanks    701750

78

   ALT 78    160    27N    25W    11    Fairbanks    701751

79

   ALT 79    160    27N    25W    11    Fairbanks    701752

80

   ALT 80    160    27N    25W    12    Fairbanks    701753

81

   ALT 81    160    27N    24W    9    Fairbanks    701754

82

   ALT 82    160    27N    24W    10    Fairbanks    701755

83

   ALT 83    160    27N    24W    10    Fairbanks    701756

84

   ALT 84    160    27N    24W    11    Fairbanks    701757

85

   ALT 85    160    27N    24W    11    Fairbanks    701758

86

   ALT 86    160    27N    24W    12    Fairbanks    701759

87

   ALT 87    160    27N    24W    10    Fairbanks    701760

88

   ALT 88    160    27N    24W    10    Fairbanks    701761

89

   ALT 89    160    27N    24W    11    Fairbanks    701762

90

   ALT 90    160    27N    24W    11    Fairbanks    701763

91

   ALT 91    160    27N    24W    12    Fairbanks    701764

92

   ALT 92    160    21N    26E    16    Kateel River    701765

93

   ALT 93    160    21N    26E    16    Kateel River    701766

94

   ALT 94    160    21N    26E    15    Kateel River    701767

95

   ALT 95    160    21N    26E    15    Kateel River    701768

96

   ALT 96    160    21N    26E    14    Kateel River    701769

97

   ALT 97    160    21N    26E    14    Kateel River    701770

98

   ALT 98    160    21N    26E    21    Kateel River    701771

99

   ALT 99    160    21N    26E    21    Kateel River    701772

100

   ALT 100    160    21N    26E    22    Kateel River    701773

101

   ALT 101    160    21N    26E    22    Kateel River    701774

102

   ALT 102    160    21N    26E    23    Kateel River    701775

103

   ALT 103    160    21N    26E    23    Kateel River    701776

104

   ALT 104    160    21N    26E    21    Kateel River    701777

105

   ALT 105    160    21N    26E    21    Kateel River    701778

106

   ALT 106    160    21N    26E    22    Kateel River    701779

107

   ALT 107    160    21N    26E    22    Kateel River    701780

108

   ALT 108    160    21N    26E    23    Kateel River    701781

109

   ALT 109    160    21N    26E    23    Kateel River    701782

110

   ALT 110    160    21N    26E    28    Kateel River    701783

111

   ALT 111    160    21N    26E    28    Kateel River    701784

112

   ALT 112    160    21N    26E    27    Kateel River    701785

113

   ALT 113    160    21N    26E    27    Kateel River    701786

114

   ALT 114    160    21N    26E    26    Kateel River    701787

115

   ALT 115    160    21N    26E    26    Kateel River    701788


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

116

   ALT 116    160    21N    26E    28    Kateel River    701789

117

   ALT 117    160    21N    26E    28    Kateel River    701790

118

   ALT 118    160    21N    26E    27    Kateel River    701791

119

   ALT 119    160    21N    26E    27    Kateel River    701792

120

   ALT 120    160    21N    26E    26    Kateel River    701793

121

   ALT 121    160    21N    26E    26    Kateel River    701794

122

   ALT 122    160    21N    26E    33    Kateel River    701795

123

   ALT 123    160    21N    26E    33    Kateel River    701796

124

   ALT 124    160    21N    26E    34    Kateel River    701797

125

   ALT 125    160    21N    26E    34    Kateel River    701798

126

   ALT 126    160    21N    26E    35    Kateel River    701799

127

   ALT 127    160    21N    26E    35    Kateel River    701800


 

[Exhibit A continued]

SPK CLAIMS

SPOOKY PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon and Rampart Recording Districts, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SPK 1    160    11N    18W    27    Fairbanks    615106

2

   SPK 2    160    11N    18W    27    Fairbanks    615107

3

   SPK 3    160    11N    18W    26    Fairbanks    615108

4

   SPK 4    160    11N    18W    26    Fairbanks    615109

5

   SPK 5    160    11N    18W    25    Fairbanks    615110

6

   SPK 6    160    11N    18W    25    Fairbanks    615111

7

   SPK 7    160    11N    17W    30    Fairbanks    615112

8

   SPK 8    160    11N    17W    30    Fairbanks    615113

9

   SPK 9    160    11N    17W    29    Fairbanks    615114

10

   SPK 10    160    11N    17W    29    Fairbanks    615115

11

   SPK 11    160    11N    17W    28    Fairbanks    615116

12

   SPK 12    160    11N    17W    28    Fairbanks    615117

13

   SPK 13    160    11N    18W    27    Fairbanks    615118

14

   SPK 14    160    11N    18W    27    Fairbanks    615119

15

   SPK 15    160    11N    18W    26    Fairbanks    615120

16

   SPK 16    160    11N    18W    26    Fairbanks    615121

17

   SPK 17    160    11N    18W    25    Fairbanks    615122

18

   SPK 18    160    11N    18W    25    Fairbanks    615123

19

   SPK 19    160    11N    17W    30    Fairbanks    615124

20

   SPK 20    160    11N    17W    30    Fairbanks    615125

21

   SPK 21    160    11N    17W    29    Fairbanks    615126

22

   SPK 22    160    11N    17W    29    Fairbanks    615127

23

   SPK 23    160    11N    17W    28    Fairbanks    615128

24

   SPK 24    160    11N    17W    28    Fairbanks    615129

25

   SPK 25    160    11N    18W    32    Fairbanks    615130

26

   SPK 26    160    11N    18W    32    Fairbanks    615131

27

   SPK 27    160    11N    18W    33    Fairbanks    615132

28

   SPK 28    160    11N    18W    33    Fairbanks    615133

29

   SPK 29    160    11N    18W    34    Fairbanks    615134

30

   SPK 30    160    11N    18W    34    Fairbanks    615135

31

   SPK 31    160    11N    18W    35    Fairbanks    615136

32

   SPK 32    160    11N    18W    35    Fairbanks    615137

33

   SPK 33    160    11N    18W    36    Fairbanks    615138

34

   SPK 34    160    11N    18W    36    Fairbanks    615139

35

   SPK 35    160    11N    17W    31    Fairbanks    615140


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

36

   SPK 36    160    11N    17W    31    Fairbanks    615141

37

   SPK 37    160    11N    17W    32    Fairbanks    615142

38

   SPK 38    160    11N    17W    32    Fairbanks    615143

39

   SPK 39    160    11N    17W    33    Fairbanks    615144

40

   SPK 40    160    11N    17W    33    Fairbanks    615145

41

   SPK 41    160    11N    17W    34    Fairbanks    615146

42

   SPK 42    160    11N    18W    32    Fairbanks    615147

43

   SPK 43    160    11N    18W    32    Fairbanks    615148

44

   SPK 44    160    11N    18W    33    Fairbanks    615149

45

   SPK 45    160    11N    18W    33    Fairbanks    615150

46

   SPK 46    160    11N    18W    34    Fairbanks    615151

47

   SPK 47    160    11N    18W    34    Fairbanks    615152

48

   SPK 48    160    11N    18W    35    Fairbanks    615153

49

   SPK 49    160    11N    18W    35    Fairbanks    615154

50

   SPK 50    160    11N    18W    36    Fairbanks    615155

51

   SPK 51    160    11N    18W    36    Fairbanks    615156

52

   SPK 52    160    11N    17W    31    Fairbanks    615157

53

   SPK 53    160    11N    17W    31    Fairbanks    615158

54

   SPK 54    160    11N    17W    32    Fairbanks    615159

55

   SPK 55    160    11N    17W    32    Fairbanks    615160

56

   SPK 56    160    11N    17W    33    Fairbanks    615161

57

   SPK 57    160    11N    17W    33    Fairbanks    615162

58

   SPK 58    160    11N    17W    34    Fairbanks    615163

59

   SPK 59    160    10N    18W    5    Fairbanks    615164

60

   SPK 60    160    10N    18W    5    Fairbanks    615165

61

   SPK 61    160    10N    18W    4    Fairbanks    615166

62

   SPK 62    160    10N    18W    4    Fairbanks    615167

63

   SPK 63    160    10N    18W    3    Fairbanks    615168

64

   SPK 64    160    10N    18W    3    Fairbanks    615169

65

   SPK 65    160    10N    18W    2    Fairbanks    615170

66

   SPK 66    160    10N    18W    2    Fairbanks    615171

67

   SPK 67    160    10N    18W    1    Fairbanks    615172

68

   SPK 68    160    10N    18W    1    Fairbanks    615173

69

   SPK 69    160    10N    17W    6    Fairbanks    615174

70

   SPK 70    160    10N    17W    6    Fairbanks    615175

71

   SPK 71    160    10N    17W    5    Fairbanks    615176

72

   SPK 72    160    10N    17W    5    Fairbanks    615177

73

   SPK 73    160    10N    17W    4    Fairbanks    615178

74

   SPK 74    160    10N    17W    4    Fairbanks    615179

75

   SPK 75    160    10N    17W    3    Fairbanks    615180

76

   SPK 76    160    10N    17W    3    Fairbanks    615181


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

77

   SPK 77    160    10N    18W    5    Fairbanks    615182

78

   SPK 78    160    10N    18W    5    Fairbanks    615183

79

   SPK 79    160    10N    18W    4    Fairbanks    615184

80

   SPK 80    160    10N    18W    4    Fairbanks    615185

81

   SPK 81    160    10N    18W    3    Fairbanks    615186

82

   SPK 82    160    10N    18W    3    Fairbanks    615187

83

   SPK 83    160    10N    18W    2    Fairbanks    615188

84

   SPK 84    160    10N    18W    2    Fairbanks    615189

85

   SPK 85    160    10N    18W    1    Fairbanks    615190

86

   SPK 86    160    10N    18W    1    Fairbanks    615191

87

   SPK 87    160    10N    17W    6    Fairbanks    615192

88

   SPK 88    160    10N    17W    6    Fairbanks    615193

89

   SPK 89    160    10N    17W    5    Fairbanks    615194

90

   SPK 90    160    10N    17W    5    Fairbanks    615195

91

   SPK 91    160    10N    17W    4    Fairbanks    615196

92

   SPK 92    160    10N    17W    4    Fairbanks    615197

93

   SPK 93    160    10N    17W    3    Fairbanks    615198

94

   SPK 94    160    10N    17W    3    Fairbanks    615199

95

   SPK 95    160    10N    18W    8    Fairbanks    615200

96

   SPK 96    160    10N    18W    8    Fairbanks    615201

97

   SPK 97    160    10N    18W    9    Fairbanks    615202

98

   SPK 98    160    10N    18W    9    Fairbanks    615203

99

   SPK 99    160    10N    18W    10    Fairbanks    615204

100

   SPK 100    160    10N    18W    10    Fairbanks    615205

101

   SPK 101    160    10N    18W    11    Fairbanks    615206

102

   SPK 102    160    10N    18W    11    Fairbanks    615207

103

   SPK 103    160    10N    18W    12    Fairbanks    615208

104

   SPK 104    160    10N    18W    12    Fairbanks    615209

105

   SPK 105    160    10N    17W    7    Fairbanks    615210

106

   SPK 106    160    10N    17W    7    Fairbanks    615211

107

   SPK 107    160    10N    17W    8    Fairbanks    615212

108

   SPK 108    160    10N    17W    8    Fairbanks    615213

109

   SPK 109    160    10N    17W    9    Fairbanks    615214

110

   SPK 110    160    10N    17W    9    Fairbanks    615215

111

   SPK 111    160    10N    17W    10    Fairbanks    615216

112

   SPK 112    160    10N    17W    10    Fairbanks    615217

113

   SPK 113    160    10N    18W    8    Fairbanks    615218

114

   SPK 114    160    10N    18W    8    Fairbanks    615219

115

   SPK 115    160    10N    18W    9    Fairbanks    615220

116

   SPK 116    160    10N    18W    9    Fairbanks    615221

117

   SPK 117    160    10N    18W    10    Fairbanks    615222


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

118

   SPK 118    160    10N    18W    10    Fairbanks    615223

119

   SPK 119    160    10N    18W    11    Fairbanks    615224

120

   SPK 120    160    10N    18W    11    Fairbanks    615225

121

   SPK 121    160    10N    18W    12    Fairbanks    615226

122

   SPK 122    160    10N    18W    12    Fairbanks    615227

123

   SPK 123    160    10N    17W    7    Fairbanks    615228

124

   SPK 124    160    10N    17W    7    Fairbanks    615229

125

   SPK 125    160    10N    17W    8    Fairbanks    615230

126

   SPK 126    160    10N    17W    8    Fairbanks    615231

127

   SPK 127    160    10N    17W    9    Fairbanks    615232

128

   SPK 128    160    10N    17W    9    Fairbanks    615233

129

   SPK 129    160    10N    17W    10    Fairbanks    615234

130

   SPK 130    160    10N    17W    10    Fairbanks    615235

131

   SPK 131    160    10N    18W    17    Fairbanks    615236

132

   SPK 132    160    10N    18W    17    Fairbanks    615237

133

   SPK 133    160    10N    18W    16    Fairbanks    615238

134

   SPK 134    160    10N    18W    16    Fairbanks    615239

135

   SPK 135    160    10N    18W    15    Fairbanks    615240

136

   SPK 136    160    10N    18W    15    Fairbanks    615241

137

   SPK 137    160    10N    18W    14    Fairbanks    615242

138

   SPK 138    160    10N    18W    14    Fairbanks    615243

139

   SPK 139    160    10N    18W    13    Fairbanks    615244

140

   SPK 140    160    10N    18W    13    Fairbanks    615245

141

   SPK 141    160    10N    17W    18    Fairbanks    615246

142

   SPK 142    160    10N    17W    18    Fairbanks    615247

143

   SPK 143    160    10N    17W    17    Fairbanks    615248

144

   SPK 144    160    10N    17W    17    Fairbanks    615249

145

   SPK 145    160    10N    17W    16    Fairbanks    615250

146

   SPK 146    160    10N    17W    16    Fairbanks    615251

147

   SPK 147    160    10N    17W    15    Fairbanks    615252

148

   SPK 148    160    10N    17W    15    Fairbanks    615253

149

   SPK 149    160    10N    18W    17    Fairbanks    615254

150

   SPK 150    160    10N    18W    17    Fairbanks    615255

151

   SPK 151    160    10N    18W    16    Fairbanks    615256

152

   SPK 152    160    10N    18W    16    Fairbanks    615257

153

   SPK 153    160    10N    18W    15    Fairbanks    615258

154

   SPK 154    160    10N    18W    15    Fairbanks    615259

155

   SPK 155    160    10N    18W    14    Fairbanks    615260

156

   SPK 156    160    10N    18W    14    Fairbanks    615261

157

   SPK 157    160    10N    18W    13    Fairbanks    615262

158

   SPK 158    160    10N    18W    13    Fairbanks    615263


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

159

   SPK 159    160    10N    17W    18    Fairbanks    615264

160

   SPK 160    160    10N    17W    18    Fairbanks    615265

161

   SPK 161    160    10N    17W    17    Fairbanks    615266

162

   SPK 162    160    10N    17W    17    Fairbanks    615267

163

   SPK 163    160    10N    17W    16    Fairbanks    615268

164

   SPK 164    160    10N    17W    16    Fairbanks    615269

165

   SPK 165    160    10N    17W    15    Fairbanks    615270

166

   SPK 166    160    10N    17W    15    Fairbanks    615271


 

[Exhibit A continued]

WLF CLAIMS

WOLF PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   WLF 1    160    2S    23E    7    Kateel River    701959

2

   WLF 2    160    2S    23E    7    Kateel River    701960

3

   WLF 3    160    2S    23E    8    Kateel River    701961

4

   WLF 4    160    2S    23E    8    Kateel River    701962

5

   WLF 5    160    2S    23E    9    Kateel River    701963

6

   WLF 6    160    2S    23E    9    Kateel River    701964

7

   WLF 7    160    2S    23E    10    Kateel River    701965

8

   WLF 8    160    2S    23E    10    Kateel River    701966

9

   WLF 9    160    2S    23E    11    Kateel River    701967

10

   WLF 10    160    2S    23E    11    Kateel River    701968

11

   WLF 11    160    2S    23E    12    Kateel River    701969

12

   WLF 12    160    2S    23E    12    Kateel River    701970

13

   WLF 13    160    2S    24E    7    Kateel River    701971

14

   WLF 14    160    2S    24E    7    Kateel River    701972

15

   WLF 15    160    2S    24E    8    Kateel River    701973

16

   WLF 16    160    2S    24E    8    Kateel River    701974

17

   WLF 17    160    2S    23E    7    Kateel River    701975

18

   WLF 18    160    2S    23E    7    Kateel River    701976

19

   WLF 19    160    2S    23E    8    Kateel River    701977

20

   WLF 20    160    2S    23E    8    Kateel River    701978

21

   WLF 21    160    2S    23E    9    Kateel River    701979

22

   WLF 22    160    2S    23E    9    Kateel River    701980

23

   WLF 23    160    2S    23E    10    Kateel River    701981

24

   WLF 24    160    2S    23E    10    Kateel River    701982

25

   WLF 25    160    2S    23E    11    Kateel River    701983

26

   WLF 26    160    2S    23E    11    Kateel River    701984

27

   WLF 27    160    2S    23E    12    Kateel River    701985

28

   WLF 28    160    2S    23E    12    Kateel River    701986

29

   WLF 29    160    2S    24E    7    Kateel River    701987

30

   WLF 30    160    2S    24E    7    Kateel River    701988

31

   WLF 31    160    2S    24E    8    Kateel River    701989

32

   WLF 32    160    2S    24E    8    Kateel River    701990

33

   WLF 33    160    2S    23E    18    Kateel River    701991

34

   WLF 34    160    2S    23E    18    Kateel River    701992

35

   WLF 35    160    2S    23E    17    Kateel River    701993

36

   WLF 36    160    2S    23E    17    Kateel River    701994


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

37

   WLF 37    160    2S    23E    16    Kateel River    701995

38

   WLF 38    160    2S    23E    16    Kateel River    701996

39

   WLF 39    160    2S    23E    15    Kateel River    701997

40

   WLF 40    160    2S    23E    15    Kateel River    701998

41

   WLF 41    160    2S    23E    14    Kateel River    701999

42

   WLF 42    160    2S    23E    14    Kateel River    702000

43

   WLF 43    160    2S    23E    13    Kateel River    702001

44

   WLF 44    160    2S    23E    13    Kateel River    702002

45

   WLF 45    160    2S    24E    18    Kateel River    702003

46

   WLF 46    160    2S    24E    18    Kateel River    702004

47

   WLF 47    160    2S    24E    17    Kateel River    702005

48

   WLF 48    160    2S    24E    17    Kateel River    702006

49

   WLF 49    160    2S    23E    18    Kateel River    702007

50

   WLF 50    160    2S    23E    18    Kateel River    702008

51

   WLF 51    160    2S    23E    17    Kateel River    702009

52

   WLF 52    160    2S    23E    17    Kateel River    702010

53

   WLF 53    160    2S    23E    16    Kateel River    702011

54

   WLF 54    160    2S    23E    16    Kateel River    702012

55

   WLF 55    160    2S    23E    15    Kateel River    702013

56

   WLF 56    160    2S    23E    15    Kateel River    702014

57

   WLF 57    160    2S    23E    14    Kateel River    702015

58

   WLF 58    160    2S    23E    14    Kateel River    702016

59

   WLF 59    160    2S    23E    13    Kateel River    702017

60

   WLF 60    160    2S    23E    13    Kateel River    702018

61

   WLF 61    160    2S    24E    18    Kateel River    702019

62

   WLF 62    160    2S    24E    18    Kateel River    702020

63

   WLF 63    160    2S    24E    17    Kateel River    702021

64

   WLF 64    160    2S    24E    17    Kateel River    702022

65

   WLF 65    160    2S    23E    19    Kateel River    702023

66

   WLF 66    160    2S    23E    19    Kateel River    702024

67

   WLF 67    160    2S    23E    20    Kateel River    702025

68

   WLF 68    160    2S    23E    20    Kateel River    702026

69

   WLF 69    160    2S    23E    21    Kateel River    702027

70

   WLF 70    160    2S    23E    21    Kateel River    702028

71

   WLF 71    160    2S    23E    22    Kateel River    702029

72

   WLF 72    160    2S    23E    22    Kateel River    702030

73

   WLF 73    160    2S    23E    23    Kateel River    702031

74

   WLF 74    160    2S    23E    23    Kateel River    702032

75

   WLF 75    160    2S    23E    24    Kateel River    702033

76

   WLF 76    160    2S    23E    24    Kateel River    702034

77

   WLF 77    160    2S    24E    19    Kateel River    702035


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

78

   WLF 78    160    2S    24E    19    Kateel River    702036

79

   WLF 79    160    2S    24E    20    Kateel River    702037

80

   WLF 80    160    2S    24E    20    Kateel River    702038

81

   WLF 81    160    2S    23E    19    Kateel River    702039

82

   WLF 82    160    2S    23E    19    Kateel River    702040

83

   WLF 83    160    2S    23E    20    Kateel River    702041

84

   WLF 84    160    2S    23E    20    Kateel River    702042

85

   WLF 85    160    2S    23E    21    Kateel River    702043

86

   WLF 86    160    2S    23E    21    Kateel River    702044

87

   WLF 87    160    2S    23E    22    Kateel River    702045

88

   WLF 88    160    2S    23E    22    Kateel River    702046

89

   WLF 89    160    2S    23E    23    Kateel River    702047

90

   WLF 90    160    2S    23E    23    Kateel River    702048

91

   WLF 91    160    2S    23E    24    Kateel River    702049

92

   WLF 92    160    2S    23E    24    Kateel River    702050

93

   WLF 93    160    2S    24E    19    Kateel River    702051

94

   WLF 94    160    2S    24E    19    Kateel River    702052

95

   WLF 95    160    2S    24E    20    Kateel River    702053

96

   WLF 96    160    2S    24E    20    Kateel River    702054

97

   WLF 97    160    2S    23E    30    Kateel River    702055

98

   WLF 98    160    2S    23E    30    Kateel River    702056

99

   WLF 99    160    2S    23E    29    Kateel River    702057

100

   WLF 100    160    2S    23E    29    Kateel River    702058

101

   WLF 101    160    2S    23E    28    Kateel River    702059

102

   WLF 102    160    2S    23E    28    Kateel River    702060

103

   WLF 103    160    2S    23E    27    Kateel River    702061

104

   WLF 104    160    2S    23E    27    Kateel River    702062

105

   WLF 105    160    2S    23E    26    Kateel River    702063

106

   WLF 106    160    2S    23E    26    Kateel River    702064

107

   WLF 107    160    2S    23E    25    Kateel River    702065

108

   WLF 108    160    2S    23E    25    Kateel River    702066

109

   WLF 109    160    2S    24E    30    Kateel River    702067

110

   WLF 110    160    2S    24E    30    Kateel River    702068

111

   WLF 111    160    2S    24E    29    Kateel River    702069

112

   WLF 112    160    2S    24E    29    Kateel River    702070

113

   WLF 113    160    2S    23E    30    Kateel River    702071

114

   WLF 114    160    2S    23E    30    Kateel River    702072

115

   WLF 115    160    2S    23E    29    Kateel River    702073

116

   WLF 116    160    2S    23E    29    Kateel River    702074

117

   WLF 117    160    2S    23E    28    Kateel River    702075

118

   WLF 118    160    2S    23E    28    Kateel River    702076


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

119

   WLF 119    160    2S    23E    27    Kateel River    702077

120

   WLF 120    160    2S    23E    27    Kateel River    702078

121

   WLF 121    160    2S    23E    26    Kateel River    702079

122

   WLF 122    160    2S    23E    26    Kateel River    702080

123

   WLF 123    160    2S    23E    25    Kateel River    702081

124

   WLF 124    160    2S    23E    25    Kateel River    702082

125

   WLF 125    160    2S    24E    30    Kateel River    702083

126

   WLF 126    160    2S    24E    30    Kateel River    702084

127

   WLF 127    160    2S    24E    29    Kateel River    702085

128

   WLF 128    160    2S    24E    29    Kateel River    702086

129

   WLF 129    160    2S    23E    31    Kateel River    702087

130

   WLF 130    160    2S    23E    31    Kateel River    702088

131

   WLF 131    160    2S    23E    32    Kateel River    702089

132

   WLF 132    160    2S    23E    32    Kateel River    702090

133

   WLF 133    160    2S    23E    33    Kateel River    702091

134

   WLF 134    160    2S    23E    33    Kateel River    702092

135

   WLF 135    160    2S    23E    34    Kateel River    702093

136

   WLF 136    160    2S    23E    34    Kateel River    702094

137

   WLF 137    160    2S    23E    35    Kateel River    702095

138

   WLF 138    160    2S    23E    35    Kateel River    702096

139

   WLF 139    160    2S    23E    36    Kateel River    702097

140

   WLF 140    160    2S    23E    36    Kateel River    702098

141

   WLF 141    160    2S    24E    31    Kateel River    702099

142

   WLF 142    160    2S    24E    31    Kateel River    702100

143

   WLF 143    160    2S    24E    32    Kateel River    702101

144

   WLF 144    160    2S    24E    32    Kateel River    702102

145

   WLF 145    160    2S    23E    31    Kateel River    702103

146

   WLF 146    160    2S    23E    31    Kateel River    702104

147

   WLF 147    160    2S    23E    32    Kateel River    702105

148

   WLF 148    160    2S    23E    32    Kateel River    702106

149

   WLF 149    160    2S    23E    33    Kateel River    702107

150

   WLF 150    160    2S    23E    33    Kateel River    702108

151

   WLF 151    160    2S    23E    34    Kateel River    702109

152

   WLF 152    160    2S    23E    34    Kateel River    702110

153

   WLF 153    160    2S    23E    35    Kateel River    702111

154

   WLF 154    160    2S    23E    35    Kateel River    702112

155

   WLF 155    160    2S    23E    36    Kateel River    702113

156

   WLF 156    160    2S    23E    36    Kateel River    702114

157

   WLF 157    160    2S    24E    31    Kateel River    702115

158

   WLF 158    160    2S    24E    31    Kateel River    702116

159

   WLF 159    160    2S    24E    32    Kateel River    702117


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

160

   WLF 160    160    2S    24E    32    Kateel River    702118

161

   WLF 161    160    3S    23E    6    Kateel River    702119

162

   WLF 162    160    3S    23E    6    Kateel River    702120

163

   WLF 163    160    3S    23E    5    Kateel River    702121

164

   WLF 164    160    3S    23E    5    Kateel River    702122

165

   WLF 165    160    3S    23E    4    Kateel River    702123

166

   WLF 166    160    3S    23E    4    Kateel River    702124

167

   WLF 167    160    3S    23E    3    Kateel River    702125

168

   WLF 168    160    3S    23E    3    Kateel River    702126

169

   WLF 169    160    3S    23E    2    Kateel River    702127

170

   WLF 170    160    3S    23E    2    Kateel River    702128

171

   WLF 171    160    3S    23E    1    Kateel River    702129

172

   WLF 172    160    3S    23E    1    Kateel River    702130

173

   WLF 173    160    3S    24E    6    Kateel River    702131

174

   WLF 174    160    3S    24E    6    Kateel River    702132

175

   WLF 175    160    3S    24E    5    Kateel River    702133

176

   WLF 176    160    3S    24E    5    Kateel River    702134

177

   WLF 177    160    3S    23E    6    Kateel River    702135

178

   WLF 178    160    3S    23E    6    Kateel River    702136

179

   WLF 179    160    3S    23E    5    Kateel River    702137

180

   WLF 180    160    3S    23E    5    Kateel River    702138

181

   WLF 181    160    3S    23E    4    Kateel River    702139

182

   WLF 182    160    3S    23E    4    Kateel River    702140

183

   WLF 183    160    3S    23E    3    Kateel River    702141

184

   WLF 184    160    3S    23E    3    Kateel River    702142

185

   WLF 185    160    3S    23E    2    Kateel River    702143

186

   WLF 186    160    3S    23E    2    Kateel River    702144

187

   WLF 187    160    3S    23E    1    Kateel River    702145

188

   WLF 188    160    3S    23E    1    Kateel River    702146

189

   WLF 189    160    3S    24E    6    Kateel River    702147

190

   WLF 190    160    3S    24E    6    Kateel River    702148

191

   WLF 191    160    3S    24E    5    Kateel River    702149

192

   WLF 192    160    3S    24E    5    Kateel River    702150

193

   WLF 193    160    3S    23E    7    Kateel River    702151

194

   WLF 194    160    3S    23E    7    Kateel River    702152

195

   WLF 195    160    3S    23E    8    Kateel River    702153

196

   WLF 196    160    3S    23E    8    Kateel River    702154

197

   WLF 197    160    3S    23E    9    Kateel River    702155

198

   WLF 198    160    3S    23E    9    Kateel River    702156

199

   WLF 199    160    3S    23E    7    Kateel River    702157

200

   WLF 200    160    3S    23E    7    Kateel River    702158


No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

201

   WLF 201    160    3S    23E    8    Kateel River    702159

202

   WLF 202    160    3S    23E    8    Kateel River    702160


 

[Exhibit A continued]

SWF CLAIMS

SWIFT PROJECT, ALASKA

All State of Alaska claims located in the Kuskokwim Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SWF 17    160    17N    28W    24    Seward    701801

2

   SWF 18    160    17N    28W    24    Seward    701802

3

   SWF 19    160    17N    27W    19    Seward    701803

4

   SWF 20    160    17N    27W    19    Seward    701804

5

   SWF 21    160    17N    27W    20    Seward    701805

6

   SWF 22    160    17N    28W    24    Seward    701806

7

   SWF 23    160    17N    28W    24    Seward    701807

8

   SWF 24    160    17N    27W    19    Seward    701808

9

   SWF 25    160    17N    27W    19    Seward    701809

10

   SWF 26    160    17N    27W    20    Seward    701810

11

   SWF 27    160    17N    27W    20    Seward    701811

12

   SWF 28    160    17N    28W    25    Seward    701812

13

   SWF 29    160    17N    28W    25    Seward    701813

14

   SWF 30    160    17N    27W    30    Seward    701814

15

   SWF 31    160    17N    27W    30    Seward    701815

16

   SWF 32    160    17N    27W    29    Seward    701816

17

   SWF 33    160    17N    27W    29    Seward    701817

18

   SWF 34    160    17N    28W    25    Seward    701818

19

   SWF 35    160    17N    28W    25    Seward    701819

20

   SWF 36    160    17N    27W    30    Seward    701820

21

   SWF 37    160    17N    27W    30    Seward    701821

22

   SWF 38    160    17N    27W    29    Seward    701822

23

   SWF 39    160    17N    27W    29    Seward    701823

24

   SWF 40    160    17N    27W    28    Seward    701824

25

   SWF 41    160    17N    28W    36    Seward    701825

26

   SWF 42    160    17N    28W    36    Seward    701826

27

   SWF 43    160    17N    27W    31    Seward    701827

28

   SWF 44    160    17N    27W    31    Seward    701828

29

   SWF 45    160    17N    27W    32    Seward    701829

30

   SWF 46    160    17N    27W    32    Seward    701830

31

   SWF 47    160    17N    27W    33    Seward    701831

32

   SWF 48    160    17N    27W    33    Seward    701832

33

   SWF 49    160    17N    28W    36    Seward    701833

34

   SWF 50    160    17N    28W    36    Seward    701834

35

   SWF 51    160    17N    27W    31    Seward    701835

36

   SWF 52    160    17N    27W    31    Seward    701836


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

37

   SWF 53    160    17N    27W    32    Seward    701837

38

   SWF 54    160    17N    27W    32    Seward    701838

39

   SWF 55    160    17N    27W    33    Seward    701839

40

   SWF 56    160    17N    27W    33    Seward    701840

41

   SWF 57    160    17N    27W    34    Seward    701841

42

   SWF 145    160    16N    27W    19    Seward    701842

43

   SWF 146    160    16N    27W    19    Seward    701843

44

   SWF 147    160    16N    27W    20    Seward    701844

45

   SWF 148    160    16N    27W    20    Seward    701845

46

   SWF 149    160    16N    27W    21    Seward    701846

47

   SWF 150    160    16N    27W    21    Seward    701847

48

   SWF 151    160    16N    27W    22    Seward    701848

49

   SWF 155    160    16N    28W    22    Seward    701849

50

   SWF 156    160    16N    28W    22    Seward    701850

51

   SWF 157    160    16N    28W    23    Seward    701851

52

   SWF 158    160    16N    28W    23    Seward    701852

53

   SWF 159    160    16N    28W    24    Seward    701853

54

   SWF 160    160    16N    28W    24    Seward    701854

55

   SWF 161    160    16N    27W    19    Seward    701855

56

   SWF 162    160    16N    27W    19    Seward    701856

57

   SWF 163    160    16N    27W    20    Seward    701857

58

   SWF 164    160    16N    27W    20    Seward    701858

59

   SWF 165    160    16N    27W    21    Seward    701859

60

   SWF 166    160    16N    27W    21    Seward    701860

61

   SWF 167    160    16N    27W    22    Seward    701861

62

   SWF 171    160    16N    28W    27    Seward    701862

63

   SWF 172    160    16N    28W    27    Seward    701863

64

   SWF 173    160    16N    28W    26    Seward    701864

65

   SWF 174    160    16N    28W    26    Seward    701865

66

   SWF 175    160    16N    28W    25    Seward    701866

67

   SWF 176    160    16N    28W    25    Seward    701867

68

   SWF 177    160    16N    27W    30    Seward    701868

69

   SWF 178    160    16N    27W    30    Seward    701869

70

   SWF 179    160    16N    27W    29    Seward    701870

71

   SWF 180    160    16N    27W    29    Seward    701871

72

   SWF 181    160    16N    27W    28    Seward    701872

73

   SWF 182    160    16N    27W    28    Seward    701873

74

   SWF 183    160    16N    27W    27    Seward    701874

75

   SWF 187    160    16N    28W    27    Seward    701875

76

   SWF 188    160    16N    28W    27    Seward    701876

77

   SWF 189    160    16N    28W    26    Seward    701877


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

78

   SWF 190    160    16N    28W    26    Seward    701878

79

   SWF 191    160    16N    28W    25    Seward    701879

80

   SWF 192    160    16N    28W    25    Seward    701880

81

   SWF 193    160    16N    27W    30    Seward    701881

82

   SWF 194    160    16N    27W    30    Seward    701882

83

   SWF 195    160    16N    27W    29    Seward    701883

84

   SWF 196    160    16N    27W    29    Seward    701884

85

   SWF 197    160    16N    27W    28    Seward    701885

86

   SWF 198    160    16N    27W    28    Seward    701886

87

   SWF 199    160    16N    27W    27    Seward    701887

88

   SWF 203    160    16N    28W    34    Seward    701888

89

   SWF 204    160    16N    28W    34    Seward    701889

90

   SWF 205    160    16N    28W    35    Seward    701890

91

   SWF 206    160    16N    28W    35    Seward    701891

92

   SWF 207    160    16N    28W    36    Seward    701892

93

   SWF 208    160    16N    28W    36    Seward    701893

94

   SWF 209    160    16N    27W    31    Seward    701894

95

   SWF 210    160    16N    27W    31    Seward    701895

96

   SWF 211    160    16N    27W    32    Seward    701896

97

   SWF 212    160    16N    27W    32    Seward    701897

98

   SWF 213    160    16N    27W    33    Seward    701898

99

   SWF 214    160    16N    27W    33    Seward    701899

100

   SWF 215    160    16N    27W    34    Seward    701900

101

   SWF 219    160    16N    28W    34    Seward    701901

102

   SWF 220    160    16N    28W    34    Seward    701902

103

   SWF 221    160    16N    28W    35    Seward    701903

104

   SWF 222    160    16N    28W    35    Seward    701904

105

   SWF 223    160    16N    28W    36    Seward    701905

106

   SWF 224    160    16N    28W    36    Seward    701906

107

   SWF 225    160    16N    27W    31    Seward    701907

108

   SWF 226    160    16N    27W    31    Seward    701908

109

   SWF 227    160    16N    27W    32    Seward    701909

110

   SWF 228    160    16N    27W    32    Seward    701910

111

   SWF 229    160    16N    27W    33    Seward    701911

112

   SWF 230    160    16N    27W    33    Seward    701912

113

   SWF 231    160    16N    27W    34    Seward    701913


 

[Exhibit A continued]

SAL CLAIMS

SALMON BAY PROJECT, ALASKA

All unpatented Federal lode claims located in the Petersburg Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   SAL 1    20    64S    78E    11    Copper River    92532

2

   SAL 2    20    64S    78E    11    Copper River    92533

3

   SAL 3    20    64S    78E    10    Copper River    92534

4

   SAL 4    20    64S    78E    11    Copper River    92535

5

   SAL 5    20    64S    78E    10    Copper River    92536

6

   SAL 6    20    64S    78E    11    Copper River    92537

7

   SAL 7    20    64S    78E    11    Copper River    92538

8

   SAL 8    20    64S    78E    10    Copper River    92539

9

   SAL 9    20    64S    78E    11    Copper River    92540

10

   SAL 10    20    64S    78E    11    Copper River    92541

11

   SAL 11    20    64S    78E    11    Copper River    92542

12

   SAL 12    20    64S    78E    10    Copper River    92543

13

   SAL 13    20    64S    78E    11    Copper River    92544

14

   SAL 14    20    64S    78E    11    Copper River    92545

15

   SAL 15    20    64S    78E    11    Copper River    92546

16

   SAL 16    20    64S    78E    12    Copper River    92547

17

   SAL 17    20    64S    78E    14    Copper River    92548

18

   SAL 18    20    64S    78E    13    Copper River    92549

19

   SAL 19    20    64S    78E    13    Copper River    92550


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

20

   SAL 20    20    64S    78E    14    Copper River    92551

21

   SAL 21    20    64S    78E    13    Copper River    92552

22

   SAL 22    20    64S    78E    14    Copper River    92553

23

   SAL 23    20    64S    78E    13    Copper River    92554

24

   SAL 24    20    64S    78E    13    Copper River    92555

25

   SAL 25    20    64S    78E    14    Copper River    92556

26

   SAL 26    20    64S    78E    13    Copper River    92557

27

   SAL 27    20    64S    78E    13    Copper River    92558

28

   SAL 28    20    64S    78E    14    Copper River    92559

29

   SAL 29    20    64S    78E    13    Copper River    92560

30

   SAL 30    20    64S    78E    13    Copper River    92561

31

   SAL 31    20    64S    78E    14    Copper River    92562

32

   SAL 32    20    64S    78E    13    Copper River    92563

33

   SAL 33    20    64S    78E    13    Copper River    92564

34

   SAL 34    20    64S    78E    13    Copper River    92565

35

   SAL 35    20    64S    78E    14    Copper River    92566

36

   SAL 36    20    64S    78E    14    Copper River    92567

37

   SAL 37    20    64S    78E    13    Copper River    92568

38

   SAL 38    20    64S    78E    13    Copper River    92569

39

   SAL 39    20    64S    78E    13    Copper River    92570

40

   SAL 40    20    64S    78E    14    Copper River    92571

41

   SAL 41    20    64S    78E    14    Copper River    92572


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

42

   SAL 42    20    64S    78E    13    Copper River    92573

43

   SAL 43    20    64S    78E    13    Copper River    92574

44

   SAL 44    20    64S    78E    13    Copper River    92575

45

   SAL 45    20    64S    78E    14    Copper River    92576

46

   SAL 46    20    64S    78E    14    Copper River    92577

47

   SAL 47    20    64S    78E    13    Copper River    92578

48

   SAL 48    20    64S    78E    13    Copper River    92579

49

   SAL 49    20    64S    78E    13    Copper River    92580

50

   SAL 50    20    64S    78E    23    Copper River    92581

51

   SAL 51    20    64S    78E    23    Copper River    92582

52

   SAL 52    20    64S    78E    24    Copper River    92583

53

   SAL 53    20    64S    78E    24    Copper River    92584

54

   SAL 54    20    64S    78E    24    Copper River    92585

55

   SAL 55    20    64S    78E    23    Copper River    92586

56

   SAL 56    20    64S    78E    23    Copper River    92587

57

   SAL 57    20    64S    78E    24    Copper River    92588

58

   SAL 58    20    64S    78E    24    Copper River    92589

59

   SAL 59    20    64S    78E    24    Copper River    92590

60

   SAL 60    20    64S    78E    23    Copper River    92591

61

   SAL 61    20    64S    78E    23    Copper River    92592

62

   SAL 62    20    64S    78E    24    Copper River    92593

63

   SAL 63    20    64S    78E    24    Copper River    92594


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

64

   SAL 64    20    64S    78E    24    Copper River    92595

65

   SAL 65    20    64S    78E    23    Copper River    92596

66

   SAL 66    20    64S    78E    23    Copper River    92597

67

   SAL 67    20    64S    78E    24    Copper River    92598

68

   SAL 68    20    64S    78E    24    Copper River    92599

69

   SAL 69    20    64S    78E    24    Copper River    92600

70

   SAL 70    20    64S    78E    25    Copper River    92601

71

   SAL 71    20    64S    78E    25    Copper River    92602

72

   SAL 72    20    64S    78E    25    Copper River    92603

73

   SAL 73    20    64S    79E    30    Copper River    92604

74

   SAL 74    20    64S    78E    25    Copper River    92605

75

   SAL 75    20    64S    78E    25    Copper River    92606

76

   SAL 76    20    64S    78E    25    Copper River    92607

77

   SAL 77    20    64S    79E    30    Copper River    92608

78

   SAL 78    20    64S    78E    25    Copper River    92609

79

   SAL 79    20    64S    78E    25    Copper River    92610

80

   SAL 80    20    64S    78E    25    Copper River    92611

81

   SAL 81    20    64S    79E    30    Copper River    92612

82

   SAL 82    20    64S    78E    25    Copper River    92613

83

   SAL 83    20    64S    78E    25    Copper River    92614

84

   SAL 84    20    64S    78E    25    Copper River    92615

85

   SAL 85    20    64S    79E    30    Copper River    92616


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

86

   SAL 86    20    64S    79E    30    Copper River    92617

87

   SAL 87    20    64S    78E    25    Copper River    92618

88

   SAL 88    20    64S    78E    25    Copper River    92619

89

   SAL 89    20    64S    78E    25    Copper River    92620

90

   SAL 90    20    64S    79E    30    Copper River    92621

91

   SAL 91    20    64S    78E    25    Copper River    92622

92

   SAL 92    20    64S    78E    25    Copper River    92623

93

   SAL 93    20    64S    78E    25    Copper River    92624

94

   SAL 94    20    64S    79E    30    Copper River    92625

95

   SAL 95    20    64S    78E    25    Copper River    92626

96

   SAL 96    20    64S    78E    25    Copper River    92627

97

   SAL 97    20    64S    78E    25    Copper River    92628

98

   SAL 98    20    64S    79E    30    Copper River    92629

99

   SAL 99    20    64S    79E    30    Copper River    92630

100

   SAL 100    20    64S    78E    25    Copper River    92631

101

   SAL 101    20    64S    78E    25    Copper River    92632

102

   SAL 102    20    64S    78E    25    Copper River    92633

103

   SAL 103    20    64S    79E    30    Copper River    92634

104

   SAL 104    20    64S    79E    31    Copper River    92635

105

   SAL 105    20    64S    79E    31    Copper River    92636

106

   SAL 106    20    64S    79E    31    Copper River    92637

107

   SAL 107    20    64S    79E    31    Copper River    92638


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

108

   SAL 108    20    64S    79E    31    Copper River    92639

109

   SAL 109    20    64S    79E    31    Copper River    92640

110

   SAL 110    20    64S    79E    31    Copper River    92641

111

   SAL 111    20    64S    79E    32    Copper River    92642

112

   SAL 112    20    64S    79E    31    Copper River    92643

113

   SAL 113    20    64S    79E    31    Copper River    92644

114

   SAL 114    20    64S    79E    31    Copper River    92645

115

   SAL 115    20    64S    79E    32    Copper River    92646

116

   SAL 116    20    64S    79E    31    Copper River    92647

117

   SAL 117    20    64S    79E    31    Copper River    92648

118

   SAL 118    20    64S    79E    31    Copper River    92649

119

   SAL 119    20    64S    79E    32    Copper River    92650

120

   SAL 120    20    64S    79E    31    Copper River    92651

121

   SAL 121    20    64S    79E    31    Copper River    92652

122

   SAL 122    20    64S    79E    31    Copper River    92653

123

   SAL 123    20    64S    79E    32    Copper River    92654

124

   SAL 124    20    64S    79E    31    Copper River    92655

125

   SAL 125    20    64S    79E    31    Copper River    92656

126

   SAL 126    20    64S    79E    31    Copper River    92657

127

   SAL 127    20    65S    79E    1    Copper River    92658


 

[Exhibit A continued]

GB, MC and SR CLAIMS

STONE ROCK BAY PROJECT, ALASKA

All unpatented Federal lode a claims located in the Ketchikan Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   GB 1    20    81S    90E    21    Copper River    92522

2

   GB 2    20    81S    90E    21    Copper River    92523

3

   GB 3    20    81S    90E    21    Copper River    92524

4

   GB 4    20    81S    90E    21    Copper River    92525

5

   GB 5    20    81S    90E    28    Copper River    92526

6

   GB 6    20    81S    90E    28    Copper River    92527

7

   GB 7    20    81S    90E    28    Copper River    92528

8

   GB 8    20    81S    90E    28    Copper River    92529

9

   GB 9    20    81S    90E    28    Copper River    92530

10

   GB 10    20    81S    90E    28    Copper River    92531

11

   MC 1    20    82S    90E    4    Copper River    92483

12

   MC 2    20    82S    90E    4    Copper River    92484

13

   MC 3    20    82S    90E    4    Copper River    92485

14

   MC 4    20    82S    90E    4    Copper River    92486

15

   MC 5    20    82S    90E    4    Copper River    92487

16

   MC 6    20    82S    90E    4    Copper River    92488

17

   MC 7    20    82S    90E    4    Copper River    92489

18

   MC 8    20    82S    90E    4    Copper River    92490

19

   MC 9    20    82S    90E    4    Copper River    92491


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

20

   MC 10    20    82S    90E    4    Copper River    92492

21

   MC 11    20    82S    90E    4    Copper River    92493

22

   MC 12    20    82S    90E    4    Copper River    92494

23

   MC 13    20    82S    90E    4    Copper River    92495

24

   MC 14    20    82S    90E    4    Copper River    92496

25

   MC 15    20    82S    90E    4    Copper River    92497

26

   SR 1    20    82S    90E    7    Copper River    92498

27

   SR 2    20    82S    90E    8    Copper River    92499

28

   SR 3    20    82S    90E    7    Copper River    92500

29

   SR 4    20    82S    90E    8    Copper River    92501

30

   SR 5    20    82S    90E    7    Copper River    92502

31

   SR 6    20    82S    90E    8    Copper River    92503

32

   SR 7    20    82S    90E    8    Copper River    92504

33

   SR 8    20    82S    90E    7    Copper River    92505

34

   SR 9    20    82S    90E    8    Copper River    92506

35

   SR 10    20    82S    90E    8    Copper River    92507

36

   SR 11    20    82S    90E    7    Copper River    92508

37

   SR 12    20    82S    90E    8    Copper River    92509

38

   SR 13    20    82S    90E    8    Copper River    92510

39

   SR 14    20    82S    90E    7    Copper River    92511

40

   SR 15    20    82S    90E    8    Copper River    92512

41

   SR 16    20    82S    90E    8    Copper River    92513


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

42

   SR 17    20    82S    90E    7    Copper River    92514

43

   SR 18    20    82S    90E    8    Copper River    92515

44

   SR 19    20    82S    90E    8    Copper River    92516

45

   SR 20    20    82S    90E    7    Copper River    92517

46

   SR 21    20    82S    90E    8    Copper River    92518

47

   SR 22    20    82S    90E    8    Copper River    92519

48

   SR 23    20    82S    90E    17    Copper River    92520

49

   SR 24    20    82S    90E    17    Copper River    92521

 

Exhibit 10.5

AMENDED AND RESTATED

PROFESSIONAL SERVICES AGREEMENT

THIS AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT (the “ Agreement ”) dated as of November 1, 2010 to be effective on the date of distribution of shares of the Client’s common stock to the stockholders of Contango Oil & Gas Company (the “ Effective Date ”) is entered into by and between CONTANGO ORE, INC., a Delaware corporation (“ Client ”) and AVALON DEVELOPMENT CORPORATION, an Alaska corporation (“ Consultant ”). Each of Client and Consultant is sometimes referred to herein individually as a “ Party ” and collectively, as the “ Parties .”

RECITALS

A. Avalon Development Corporation and Juneau Exploration, L.P. (“ Juneau ”) entered into a Professional Services Agreement dated as of June 9, 2008 which was supplemented by a Fee Agreement dated June 7, 2010 among Juneau, Consultant and Contango Mining Company, formerly Contango ORE Company (“ Contango Mining ”) (the “ Original Agreement ”).

B. Juneau has assigned its interest in the Original Agreement to Contango Mining and Contango Mining is assigning its interest in the Original Agreement as well as its interest in the Gold Properties and REE Properties to Client and Client and Consultant wish to expand the scope and nature of services provided by Consultant to Client by amending, restating and replacing the Original Agreement as provided herein.

1. Definitions . As used herein, the following terms shall have the following meanings:

Additional Indemnitees ” means Affiliates and their respective representatives, agents, managers, directors, officers and employees.

Affiliate ” means, with respect to any Person, each Person that directly or indirectly controls, is controlled by, or is under common control with such designated Person. For purposes of this definition, “control” (including, with correlative meanings, the phrases “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

Agreement ” has the meaning set forth in the preamble to this Agreement and includes all exhibits and any amendments hereto.

Applicable Law ” means all laws, statutes, codes, acts, treaties, ordinances, orders, judgments, writs, decrees, injunctions, rules, regulations, governmental approvals, permits, directives, and requirements of all Governmental Authorities (including with respect to the environment) having jurisdiction over a Person (as to that Person), this Agreement, the Services or a Project, as applicable.

 

-1-


 

Application for Payment ” has the meaning set forth in Section 5.1 .

Claims ” means demands, claims, suits, proceedings, judgments or actions of any kind and nature.

Confidential Information ” has the meaning set forth in Section 11.1 .

Daily Fees ” has the meaning set forth in Section 4.1 .

Dispute ” has the meaning set forth in Section 16 .

Effective Date ” has the meaning set forth in the Preamble.

Gold Properties ” means those properties where Client wishes to explore for, and mine if commercially feasible, gold reserves and associated minerals listed on Exhibit B attached hereto as such list may be modified from time to time by the Parties.

Governmental Authority ” means (1) any federal, state, local, municipal, tribal or other government, (2) any governmental, regulatory or administrative agency, commission or other authority lawfully exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, and (3) any court or governmental tribunal, in each case having jurisdiction over the matter or Person in question.

Information ” has the meaning set forth in Section 10.1

Juneau ” has the meaning set forth in the Recitals.

Liens ” has the meaning set forth in Section 8 .

Losses ” means loss, damage or liability (including reasonable attorneys’, consultants’ and experts’ fees and disbursements incurred in investigating, defending against, settling or prosecuting any Claim).

Original Agreement ” has the meaning set forth in the Recitals.

Owner’s Representative ” has the meaning set forth in Section 2.2 .

Party ” and “ Parties ” each has the meaning set forth in the preamble to this Agreement.

Person ” means an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority, limited liability company, or any other entity of whatever nature.

 

-2-


 

Project ” means providing geological consulting services and exploration activities with respect to the Gold Properties and REE Properties for the purpose of finding, developing and exploiting commercial mineral deposits.

Property ” has the meaning set forth in Section 10.2 .

Prudent Industry Practices ” means those practices, methods, acts, equipment, specifications and standards of safety and performance, as the same may change from time to time, which a prudent provider in the United States of services of a type, size and complexity similar to the Services would use or follow to accomplish the desired objectives and results lawfully, reliably and safely. Notwithstanding the foregoing, “Prudent Industry Practices” are not intended to be limited to the optimum practices, methods, acts, equipment, specifications or standards of safety and performance to the exclusion of all others but rather to be acceptable practices, methods, acts, equipment, specifications and standards of safety and performance generally accepted in the applicable industry.

REE Properties ” means those properties where Client wishes to explore for, and mine if commercially feasible, rare earth minerals and associated minerals listed on Exhibit C attached hereto as such list may be modified from time to time by the Parties.

Reimbursable Costs ” has the meaning set forth in Section 4.2 .

Representatives ” means a Party’s and its Affiliates’ officers, managers, directors, partners, employees, trustees, contractors and advisors (including attorneys, accountants, underwriters, lenders, and consultants).

Services ” has the meaning set forth in Section 2.1 .

Warranty ” has the meaning set forth in Section 6.4 .

2. Appointment .

2.1 General . Client hereby retains Consultant to provide certain services in connection with the Project. Consultant hereby agrees to provide to Client, in accordance with the terms and conditions of this Agreement, those services more particularly described on Exhibit A attached hereto and such other services as may reasonably be requested from time to time by Client and which services Consultant is qualified to perform (collectively, the “ Services ”).

2.2 Owner’s Representative . In performing the Services, Consultant shall take direction from Owner’s authorized representatives (“ Owner’s Representative ”), who shall initially be John B. Juneau and Kenneth R. Peak. Owner may, from time to time, change its authorized representatives responsible for this Agreement by giving Consultant notice of such change in accordance with Section 15 .

 

-3-


 

3. Term .

3.1 Term . The term of this Agreement shall commence on the Effective Date and continue to the later of (i) December 31, 2011, or (ii) the date that is thirty (30) days after written notice from Client to Consultant.

3.2 Termination . Upon termination of this Agreement, Client shall pay to Consultant the Daily Fees for the number of days worked by Consultant up to the effective day of termination. Client shall also pay and reimburse Consultant for expenses incurred prior to the effective date of termination upon receipt of documentation by Consultant for such expenses in accordance with Section 5 of this Agreement.

4. Daily Fee; Reimbursable Costs .

4.1 Daily Fee . Client shall pay Consultant (i) a daily fee in performing the Services in the field and not in the office by Curtis J. Freeman in accordance with this Agreement an amount equal to $550 per day, or hourly pro rata share thereof for Services performed and (ii) amounts agreed by the Parties for other employees of Consultant and subcontractors to Consultant for services performed both in the field and in the office by such employees and subcontractors (the “ Monthly Fees ”).

4.2 Reimbursable Costs . In addition to Client’s payment of the Daily Fees, Client shall reimburse Consultant for Consultant’s direct out-of-pocket third party costs and expenses incurred in connection with Consultant’s performance of the Services plus a 12% surcharge for third party reimbursable expenses, including Consultant’s employee costs and expenses (collectively, the “ Reimbursable Costs ”). Notwithstanding the foregoing, in no event shall Consultant be entitled to payment or reimbursement for benefit costs, overhead, general administration expenses or profit.

4.3 Restricted Stock . In addition to Client’s payment of Daily Fees and Reimbursable Costs, Client shall issue to Consultant on the Effective Date restricted stock pursuant to the 2010 Equity Compensation Plan of Client equal to 1.5% of the aggregate shares of common stock of the Client being distributed to the stockholders of Contango Oil & Gas Company. The shares will vest over three years beginning with the one-year anniversary of the date the shares are issued.

5. Application for Payment .

5.1 Application . Consultant shall, no more frequently than once a month, prepare and submit to Client an application for payment specifying (1) the Services which have been completed, the associated Daily Fees and any Reimbursable Costs which have been incurred and for which payment is then being requested and (2) the aggregate amount of the payment then being requested (each, an “ Application for Payment ”). Each Application for Payment shall include any applicable documentation supporting the applicable portion of the Services and the Reimbursable Costs incurred.

 

-4-


 

5.2 Certificate for Payment . Within fifteen (15) business days after the receipt of each Application for Payment, Client shall (1) review the Application for Payment to certify the relevant Services and the Reimbursable Costs incurred, and (2) issue to Consultant a written “certificate for payment” for such amount as Client determines is properly due. If the amount so determined by Client is less than the amount requested by Consultant in the Application for Payment, Client’s “certificate for payment” shall indicate the specific reasons for so withholding all or a portion of the amount requested. If Client determines that a portion of the amount requested is not due, Client shall nevertheless approve payment for the remaining portion of the Application for Payment.

5.3 Payment . Within fifteen (15) business days after issuance of a written “certificate for payment”, Client shall pay directly to the account of Consultant, the undisputed amount due with respect to each such Application for Payment.

5.4 Interest . Interest shall be charged on any due but unpaid amount at one and one-half percent (1.5%) per month until payment in full is made.

6. Standard of Performance; Remedy .

6.1 Standard of Care . Consultant shall, and shall cause its personnel and subcontractors to, perform all of its duties and obligations under this Agreement in accordance with Applicable Law, Prudent Industry Practices and this Agreement. Consultant shall additionally comply with, and shall take such actions as are reasonably practicable to cause Client, the Services, and all Consultant personnel and subcontractors to comply with, the insurance coverage in effect from time to time. In performance of the Services, Consultant shall exercise such skill and care and shall act as promptly and diligently as a prudent business entity engaged in tasks comparable in type, size and complexity similar to the Services would exercise for the advancement and protection of its own economic interests.

6.2 Personnel . Consultant shall, at all times, employ or retain qualified, properly trained subcontractors and personnel to perform the Services and shall pay all wages, taxes and benefits required by Applicable Law or contract. Consultant shall be responsible for all matters relating to labor relations, working conditions, training, employee benefits, safety programs, environmental protection programs and related matters pertaining to its subcontractors and personnel. Consultant and Consultant’s subcontractors and personnel shall observe all regulations and rules which may be in effect at an applicable Project regarding entry and exit, passes, badges, safety and proper conduct on such Project. Consultant shall have responsibility for the hiring, retaining and terminating of all permanent and temporary personnel and subcontractors employed by Consultant or its agents in connection with the Services. All such personnel shall be (1) professional and technically competent, (2) qualified, skilled and adequately trained to perform the Services to be rendered, (3) licensed to perform the Services as appropriate

 

-5-


under Applicable Law and Prudent Industry Practices, and (4) knowledgeable of proper safety and environmental protection practices. Client shall have the right to review the hiring, retaining and terminating of such personnel and subcontractors; provided , however , that Consultant shall be responsible for all final decisions relating thereto. Consultant shall, if reasonably requested by Client, at Consultant’s expense, remove from a Project any personnel or subcontractor that Client believes is a detriment to the Services being provided or performed or to other work of Client and such personnel or subcontractor shall not again be employed at such Project or in connection with this Agreement.

6.3 Subcontractors . Consultant shall have the right to engage one or more subcontractors in the performance of the Services under this Agreement. Consultant shall remain fully responsible and liable for the performance of the Services under this Agreement as well as the performance of its subcontractors, and for ensuring that all of its subcontractors comply with this Agreement, Applicable Law, Prudent Industry Practices and insurance requirements. Consultant further agrees to provide Client with specific notice identifying the people or companies who will perform (either before, or, if not reasonably possible, after such performance) Services on behalf of Consultant under this Agreement.

6.4 Warranty . Consultant warrants to Client that the Services shall (1) fully conform to the requirements, characteristics and specifications of this Agreement and all other documents governing or specifying the specific tasks being performed by Consultant, (2) be in accordance with Applicable Law, Prudent Industry Practices and this Agreement and (3) be performed in a clean, safe, efficient, diligent and competent manner (collectively, the “ Warranty ”). The Warranty shall expire one (1) year after completion of the performance, delivery or provision of the applicable Services. If Client gives Consultant notice within a reasonable time after Client’s discovery of any failure of the Services to meet any of the Warranties set forth herein, Consultant shall promptly re-perform the Services as necessary to remedy the failure and pay or absorb the costs thereof.

6.5 C onsultant Liability . Consultant shall have no liability for defects in Consultant’s Services attributable to Consultant’s reasonable reliance upon or use of data, design criteria, drawings, or other information furnished by Client; provided , however , that Consultant shall in all events remain liable for defects arising from or relating to negligence or willful misconduct of Consultant or its subcontractors, agents, employees, or personnel.

7. Consultations; Cooperation with Investors and Prospective Investors . Consultant shall cooperate with Client, any investors in Client, any prospective investors in Client, and any other service providers in or to a related Project, and their agents and consultants, to make available to such Persons designated by Client and subject to appropriate confidentiality agreements that shall be the responsibility of Client (1) all information, reports, and other documents concerning the Services, and (2) Consultant’s personnel for consultation with such Persons, in each case as reasonably requested by Client. Except as otherwise directed by Client, Consultant shall provide such information, reports and other documents and take such other actions as may be reasonably requested by Client in accordance with this Agreement.

 

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8. Liens . For so long as undisputed amounts owing to Consultant under this Agreement shall have been paid in accordance with this Agreement, Consultant shall not, directly or indirectly, create, incur or cause any lien, claim of lien or other encumbrance (collectively, “ Liens ”) to be asserted against any portion of the Project. Consultant will also assist with any reasonable request of Client to remove any Lien or other encumbrance on any portion of a Project. In addition, if (1) any Liens are filed or asserted by Consultant’s subcontractors or personnel on any real or personal property of Client, and (2) Client has paid to Consultant all amounts with respect to the Services to which such Lien relates that are due and payable under this Agreement at such time, then at Client’s request, Consultant will immediately take all actions necessary to cause any such Liens to be removed or otherwise fully released or extinguished within thirty (30) days after its receipt of such notice. Such actions may include Consultant’s obtaining, at its sole cost and expense, a lien bond which is (1) issued by a surety company reasonably acceptable by Client, (2) in form and substance reasonably satisfactory to Client, and (3) in an amount not less than one hundred fifty percent (150%) of such Lien claim. If Consultant fails to remove, release or otherwise extinguish such Lien within such thirty (30) day period, then Client may take such actions as are reasonably necessary to release or extinguish any such Lien and thereafter withhold and retain an amount equal to the cost and expense of removing, releasing or extinguishing such Lien from any payments due to Consultant under this Agreement.

9. Termination .

9.1 Effect of Termination or Expiration . Neither Party shall be relieved from any obligations or liabilities that accrued prior to the effective date of any expiration or termination of this Agreement. The applicable provisions of this Agreement shall continue in effect after such expiration or termination to the extent necessary to provide for final payments, payment adjustments and any other final expense reimbursements from acts or events that occurred prior to the date of such expiration or termination; provided , however , that Client shall only be obligated to pay Consultant for Services that have been completed as of the date of such termination or expiration. Without limiting the foregoing, upon expiration or termination of this Agreement:

(1) Subject to Section 25 , Consultant shall have no obligation to perform additional Services; and

(2) At the request of Client, Consultant shall (a) assist in making, at Client’s expense, a smooth transition to a new consultant and, without limiting the generality of the foregoing, Consultant shall promptly provide to Client copies of Consultant’s then-current list of subcontractors and service providers relating to the Services, access and control to all records, reports, data, manuals, and any other items that were furnished by Client or Consultant at Client’s cost, and (b) cooperate with any independent engineer retained by CLIENT in connection with the Services.

 

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9.2 Offset . Notwithstanding anything in this Agreement to the contrary, Client may deduct and set-off against any sum due or to become due to Consultant under, or in connection with, this Agreement or any amounts due from Consultant to Client under or in connection with this Agreement.

10. Competition and Confidentiality .

10.1 Non-Exclusive . Consultant and Client expressly agree and understand that this Agreement is non-exclusive and that either Party may enter into similar agreements with other persons or entities as long as the terms of such agreements do not constitute a breach of the terms of this Agreement. Client acknowledges that Consultant’s services are offered on a non-exclusive basis. Consultant covenants that, in the event Consultant submits to Client data regarding a mineral property (hereafter the “ Information ”), Consultant will neither seek to acquire any interest in the property for himself or any other person or entity, nor reveal said Information to another person or entity for ninety days from the date Information is submitted to Client or until Client informs Consultant that Client is not interested in acquiring an interest in the property, whichever occurs first.

10.2 Mineral Property . Client and Consultant agree that in the event Consultant makes Client aware of a mineral property, including Gold Properties and REE Properties (hereafter the “ Property ”) and in the event Client subsequently acquires an interest in the Property and is the operator of geological exploration and development programs conducted thereon, Client agrees to offer to utilize the services of Consultant on the Property, to conduct mineral exploration and any other such services as Consultant is qualified to provide, at commercially competitive rates, for two calendar years following the acquisition date of the Property. Nothing in this section or in this Agreement shall preclude Client from utilizing the services of its in-house and/or contract staff to assist in mineral exploration of the Property. This section of this Agreement shall survive expiration or termination of this Agreement and will terminate one calendar year following the expiration or earlier termination of this Agreement.

10.3 No Competition . Subject to confidentiality requirements, during the term of this Agreement and for one year following the termination thereof, Consultant shall not locate mining claims or acquire interests in leases of property or mineral rights in competition with Client within five miles of properties owned or controlled by Client and its Affiliates without the prior written consent of Client. In the event that Consultant stakes claims or otherwise acquires any mining interest in contravention of the preceding clause, Consultant shall divulge the fact of the acquisition to Client and, upon verbal request, which shall be made not later than thirty (30) days after the initial notification, shall quit claim or assign the property, as appropriate, to Client unless Client informs Consultant that Client does not wish to acquire an interest in the property, whichever occurs first.

 

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11. Confidential Information .

11.1 Non-Disclosure of Confidential Information . Except as may otherwise be required by Applicable Law, all information and data provided by Client to Consultant relating to its business and all information developed by Consultant related to the Project (collectively, “ Confidential Information ”) shall be treated as confidential and proprietary material of Client and shall be kept confidential by Consultant and used solely for purposes relating to this Agreement. The Parties agree that this Agreement and the commercial terms set forth herein constitute Confidential Information of Client, and that Client’s Confidential Information includes, but is not limited to, all data and other information provided to Consultant by Client pursuant to this Agreement, and all Consultant deliverables to which Client takes title pursuant to Section 14 . Consultant shall limit the disclosure of any Confidential Information to only those of its Representatives with responsibility for using such information in connection with this Agreement. Consultant shall be responsible for any breach of the terms of this Agreement by Consultant or any one or more of its Representatives.

11.2 Exclusions from Definition . Confidential Information does not include information which (1) is or becomes publicly available through no act of Consultant in violation of this Agreement, (2) is approved for release by written authorization of Client, (3) is or becomes available to Consultant on a non-confidential basis (to Consultant’s actual knowledge at the time of receipt) prior to its disclosure by Client or its Representatives, or (4) was independently developed by Consultant without use of Client’s Confidential Information.

11.3 Permitted Disclosures . Notwithstanding anything to the contrary in this Agreement, Consultant may provide Client’s Confidential Information (1) any Governmental Authority or in other litigation or regulatory proceedings arising from or related to this Agreement, (2) to any Person with review rights specified in other provisions of this Agreement, and (3) on a need-to-know basis to its Representatives, provided , however , that in the case of item (3) above, such Persons have been advised of the confidential nature of the information and have agreed to maintain the confidentiality thereof in accordance with this Agreement or an agreement acceptable to Client. If Consultant is required by Applicable Law ( e.g. , SEC disclosure requirements or pursuant to clause (1)) or pursuant to the rules of, or a listing agreement with, any national securities exchange, or is requested in any proceeding to disclose any of Client’s Confidential Information (including pursuant to clauses, (1) and (2) above), then Consultant shall use commercially reasonable efforts to avoid and, if not avoidable, to minimize disclosure of such Confidential Information or information, as applicable, and to the extent permitted by Applicable Law, give Client prompt notice of such requirement or request so that Client may seek an appropriate protective order, including any appeals at the expense of Client. If, in the absence of a protective order, Consultant reasonably determines that it is nonetheless required to disclose the Confidential Information or information, as applicable, then Consultant may disclose such Confidential Information or information, as applicable, without liability hereunder, provided that Consultant promptly (1) notifies, to the extent permitted by Applicable Law, Client of any such disclosure, (2) uses reasonable efforts to ensure that all Confidential Information and other information, as applicable, that is so disclosed will be accorded confidential treatment, and (3) furnishes only that portion of the Confidential Information or other information, as applicable, which it is advised by counsel is legally required.

 

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11.4 Return or Destruction . Upon the written request of Client, Consultant will promptly return to Client or destroy all copies of Client’s Confidential Information (other than copies of this Agreement), whether in written or electronic form, which is in the possession or control of Consultant or its Representatives and will not retain any copies or other reproductions in whole or in part of such material, except to the extent required by Applicable Law. All other documents, memoranda, notes, summaries, analyses, extracts, compilations, studies or other material whatsoever prepared by Consultant or any of its Representatives based on Client’s Confidential Information (other than copies of this Agreement) will also be destroyed. Consultant shall be deemed to have destroyed any Confidential Information that is provided by Client or maintained by Consultant in electronic form on computers if such information is deleted from local hard drives so long as no attempt is made to recover such information from servers or back up sources, and so long as information is also deleted from other electronic or storage devices. Upon the request of Client, Consultant shall deliver to Client a certificate executed by an officer of Consultant certifying that all such materials have been delivered to Client or destroyed in accordance with this Agreement. Notwithstanding the return or destruction or required retention of Confidential Information, Consultant and its Representatives shall continue to be bound by their respective obligations of confidentiality and other obligations hereunder for a period of two (2) years from the effective date of such expiration or termination. Notwithstanding anything to the contrary contained herein, Consultant shall not be required to return or destroy Confidential Information necessary for the resolution of a Dispute in accordance with Section 16 .

11.5 Publicity . Consultant shall not refer to Client or any Client Affiliate, or any aspect of the Project, in any advertising or other publication without the prior written approval of Client. Consultant shall refer to Client any inquiry from the news media concerning the Project or the Services prior to response and shall reflect Client’s comments in any such response.

11.6 Remedies . The Parties agree that money damages may not be a sufficient remedy for any breach of this Agreement and that Client or Consultant shall be entitled to seek injunctive or other equitable relief to remedy or prevent any breach or threatened breach of this Agreement. Such remedy shall not be the exclusive remedy for any breach of this Agreement, but shall be in addition to all other rights and remedies available at law or in equity. In the event of a Dispute relating to this Section, if a court or arbitration panel of competent jurisdiction determines that Client or Consultant has breached this Agreement, the breaching Party shall be liable to the aggrieved Party for the amount of the reasonable legal fees incurred in connection with such litigation, including any appeal therefrom.

 

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12. Insurance . Consultant shall obtain and maintain on and after the Effective Date, the insurance described below, with insurers reasonably acceptable to Client, and shall provide Client with evidence of such insurance upon request:

(1) Worker’s compensation insurance in forms required by Applicable Law with limits of not less than $1,000,000 per accident, $1,000,000 for disease, and $1,000,000 for each employee;

(2) Comprehensive general liability insurance (excluding automobile liability) covering personal injury and property damage to third parties with limits of not less than $5,000,000 per occurrence and $5,000,000 in the aggregate;

(3) Automobile liability insurance covering owned and leased vehicles used in the performance of Services pursuant to this Agreement covering personal injury and property damage to third parties with limits of not less than $5,000,000 per occurrence; and

(4) Professional liability insurance (errors and omissions) for professional services with a minimum single limit of $5,000,000 to cover claims arising out of Consultant’s Services.

13. Indemnification .

13.1 General Indemnification . Consultant shall indemnify, defend and hold harmless Client and its Additional Indemnitees from and against all Losses resulting from Claims that arise out of or are in connection with the performance by Consultant of the Services or its other obligations under this Agreement, in each case to the extent caused by or to the extent arising out of any negligent (including strict liability), wanton or intentional act or omission of Consultant, any of its subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts anyone of them may be liable, in any way associated or connected with the performance of the obligations under this Agreement, in whatever manner the same may be caused, and whether or not the same be caused by or arise out of the joint, concurrent or contributory negligence of any Person.

13.2 Intellectual Property Indemnification . Consultant shall indemnify, defend, and hold harmless Client and its Additional Indemnitees from and against all Losses resulting from Claims against Client or its Additional Indemnitees that any Services furnished by Consultant, directly or indirectly, in connection with this Agreement constitute an infringement of any patent, trademark, copyright of the United States or a breach of any trade secret or other registered proprietary interest of any third party. Consultant shall pay all costs and expenses of investigation, defense, and settlement or judgment of any such Claim and shall remove said Services and refund the applicable purchase price, the performance costs thereof and all other amounts, including any sales and use taxes, paid by Client in connection with such Services. Client shall reasonably cooperate in any effort by Consultant to defend against such Claim. Without limiting the generality of the above, this provision shall apply where the combination of Services provided by Consultant with other services, equipment, components, materials, apparatus, items or processes (regardless of whether such other services, equipment, components, materials, apparatus, items or processes were furnished by Consultant) under this Agreement is the basis for a Claim of such infringement or breach.

 

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14. Title to Documents . Title to all information, documents, materials, drawings and specifications prepared or provided by Consultant as part of the Services shall vest in Client upon delivery of the same to Client and Client shall have the unfettered right to use the same. All information, documents and materials relating to any Project obtained or reviewed by Consultant in performing its obligations pursuant to this Agreement shall be and remain the property of Client, and Consultant shall use the same only for performance of the Services and shall not duplicate the same, in whole or in part, except as reasonably required in performing the Services. If and to the extent Client is required to have a license to utilize or process the information proposed or provided by Consultant and Consultant holds such a license or may provide such a license, Consultant hereby provides to Client such a license or provides a sublicense to Client for the purpose of allowing Client to utilize or process the information prepared or provided by Consultant. In addition, all Services are hereby deemed “work made for hire”.

15. Notices . Any notice or other communication required, permitted or contemplated hereunder (including billing statements and related communications) shall be in writing, and shall be addressed to the Party to be notified at the address set forth below or at such other address as a Party may designate for itself from time to time by notice hereunder:

 

If to Consultant:

VIA U.S. Mail

Avalon Development Corporation

P.O. Box 80268

Fairbanks, AK 99708

Attention: Curtis Freeman

Tel: 907-457-5159

Fax: 907-455-8069

  

VIA Courier (Fedex/UPS/DHL)

Avalon Development Corporation

130 Goldstream Road

Fairbanks, AK 99712

Attention: Curtis Freeman

Tel: 907-457-5159

Fax: 907-455-8069

If to Client:

 

Contango ORE, Inc.

3700 Buffalo Speedway

Suite 960

Houston, Texas 77098

Attention: Kenneth R. Peak

Tel: 713.960.1901

Fax: 713.960.1065

  

Each notice required, permitted, or contemplated hereunder shall be deemed to have been validly served, given or delivered as follows: (1) if sent by first class, registered, or certified United States mail or overnight delivery service, return receipt requested, postage prepaid, upon

 

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receipt by the receiving Party; (2) if sent by a regularly scheduled overnight delivery carrier with delivery fees either prepaid or paid through an arrangement with such carrier, the next business day after the same is delivered by the sending Party to such carrier; (3) if sent by fax and if concurrently with the transmittal of such fax the sending Party contacts the receiving Party at the phone number set forth above to indicate such fax has been sent (which indication by phone may be done by leaving a voicemail for the receiving Party at such phone number), at the time such fax is transmitted by the sending Party as shown by the fax transmittal confirmation of the sending Party; or (4) if delivered in person, upon receipt by the receiving Party. Either Party may from time to time change any of the recipients or its address by giving the other Party notice of the change in accordance with this Section. Notwithstanding the foregoing, “copy to” notices are provided for convenience only, and a failure to deliver a copy of any notice to the persons listed under “with a copy to” shall not affect the validity of any notice delivered under this Agreement or constitute a default hereunder.

16. Dispute Resolution . The Parties shall attempt to resolve all disputes arising out of or in connection with the interpretation or application of any of the provisions of this Agreement or in connection with the determination of any other matters arising under this Agreement (each, a “ Dispute ”) by mutual agreement in accordance with this Section.

16.1 Negotiation Period . If any Dispute arises between the Parties, then the disputing Party shall promptly notify the non-disputing Party of the Dispute and each Party shall cause a mid-level officer of its management with decision-making authority to meet at the offices of the non-disputing Party, or at any other mutually agreed location, and to negotiate and attempt to resolve the Dispute on an amicable basis within twenty (20) days of the non-disputing Party’s receipt of notice of the Dispute. If the Parties fail to resolve the Dispute for any reason within the twenty (20) day period identified above, then each Party shall, within five (5) days after the expiration of such period, nominate a senior officer of its management with decision-making authority to meet at the offices of the non-disputing Party, or at any other mutually agreed location, to negotiate and attempt to resolve the Dispute on an amicable basis. If the Parties are unable to resolve the Dispute to their mutual satisfaction for any reason within twenty (20) days after the nomination of such senior officers or, failing any such nomination of a mid-level or senior officer, within sixty (60) days following the date of delivery of the initial notice of Dispute, then each Party shall be free to pursue any right or remedy available at law or in equity, subject to and in accordance with this Agreement.

16.2 Continuation of Performance . Unless otherwise agreed in writing, the Parties shall continue to perform their respective obligations under this Agreement during any proceeding by the Parties in accordance with this Section.

16.3 Consent to Jurisdiction . In any judicial proceeding arising from or related to any Dispute, each of the Parties irrevocably consents and agrees that any legal action or proceedings with respect to this Agreement may be brought in any of the state or federal courts having jurisdiction over this Agreement and located in Anchorage, Alaska, and that, by execution and delivery of this Agreement, each Party (1) accepts the exclusive jurisdiction of the aforesaid

 

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courts, (2) irrevocably agrees to be bound by any final judgment (after any and all appeals) of any such court, (3) irrevocably waives, to the fullest extent permitted by Applicable Law, any objection which it may now or hereafter have to the laying of venue of any suit, action, or proceedings with respect to this Agreement brought in any such court, and further irrevocably waives, to the fullest extent permitted by Applicable Law, any claim that any such suit, action, or proceeding brought in any such court has been brought in any inconvenient forum, (4) agrees that service of process in any such action may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Party at its notice address set forth herein, or at such other address of which the other Party hereto shall have been notified, and (5) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by Applicable Law.

16.4 Waiver of Jury Trial . Should any Dispute result in a judicial proceeding, each of the Parties knowingly, voluntarily, and intentionally waives, to the extent permitted by Applicable Law, any right it may have to a trial by jury in respect of any such proceeding. Furthermore, each of the Parties waives any right to consolidate any action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived. This provision is a material inducement for the Parties to enter into this Agreement.

16.5 Governing Law . THIS AGREEMENT SHALL BE INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ALASKA, EXCLUDING ANY CHOICE OF LAW OR CONFLICTS OF LAW RULES THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF A DIFFERENT JURISDICTION.

17. Counterparts; Facsimile Delivery; Imaged Documents . This Agreement may be executed in one or more counterparts, each of which shall be an original but all of which, taken together, shall constitute only one legal instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than one counterpart. The delivery of an executed counterpart of this Agreement by facsimile shall be deemed to be valid delivery thereof. Each document generated by the Parties regarding this Agreement, including this Agreement, may be imaged and stored electronically and (1) such imaged documents may be introduced as evidence in any proceeding as if such were original business records, and (2) no Party shall contest the admissibility of such imaged documents as evidence in any proceeding.

18. Headings, Captions . All indexes, titles, subject headings, section titles and similar items are provided for the purpose of reference and convenience and are not intended to affect the meaning, content or scope of this Agreement.

19. Severability . If any provision of this Agreement is determined to be void, unlawful, or otherwise unenforceable, that provision shall be severed from the remainder of this Agreement, and replaced automatically by a provision containing terms as nearly like the void, unlawful, or unenforceable provision as possible, or otherwise modified in such fashion as to preserve, to the maximum extent possible, the original intent of the Parties, and this Agreement, as so modified, shall continue to be in full force and effect.

 

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20. Taxes . Consultant shall pay when due all of its own United States national, state, local, municipal, provincial, provisional or other government entity income, sales, excise, value added, use or other similar taxes currently in effect or that come into effect during Consultant’s performance of the Services. Consultant shall be solely liable for any of its own taxes and contributions for unemployment insurance, old age retirement benefits, life pensions, annuities and similar benefits, which may now or hereafter be imposed by Applicable Law or collective bargaining agreements with respect to Persons employed by Consultant to perform the Services.

21. Assignment .

21.1 Assignment by Consultant . Consultant acknowledges and agrees that this Agreement is personal to Consultant and Consultant shall not assign or transfer, directly or indirectly, or by any power of attorney or otherwise, the whole or any part of this Agreement or any of Consultant’s rights or obligations hereunder without first obtaining Client’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Nothing in this Section shall restrict Consultant from subcontracting portions of its work as provided herein.

21.2 Assignment by Client . Client shall not assign, novate or transfer, directly or indirectly, or by any power of attorney or otherwise the whole or any part of this Agreement or any of Client’s rights or obligations hereunder without first obtaining Consultant’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned; provided , however , that Client shall have the right to freely assign, novate or transfer all or any portion of this Agreement and its rights, obligations and duties hereunder at any time and from time to time without prior notice to or consent of Consultant (1) to an Affiliate; (2) for purposes of providing collateral security in connection with any financing transaction, and (3) to a purchaser of the Project or any portion thereof or interest therein. Except with respect to assignments pursuant to clause (2) above, (1) Client shall cause any permitted assignee, novatee or transferee of Client’s interests in, to or under this Agreement to assume all applicable existing and future obligations of Client to be performed under this Agreement, and (2) upon any permitted assignment, novation or transfer of this Agreement, the assigning, novating or transferring Party shall be, without further action by either Party, released and discharged from all obligations under this Agreement arising after the effective date of such assignment, novation or transfer.

21.3 Prohibited Assignments Void . Any purported assignments, novations or other transfers of this Agreement, in whole or in part, not in compliance with this Section shall be void. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the Parties and their permitted successors and assigns.

22. Relationship of the Parties . This Agreement shall not be interpreted or construed to (1) create an association, joint venture, partnership, agency, trust, lease of property or similar arrangement or relationship between the Parties, or (2) impose any partnership, agency, fiduciary, trust or similar type of obligation or duty on either Party. Except as specifically set forth in this Agreement, neither Party shall have any right, power or authority to enter into any

 

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agreement or undertaking for, or act on behalf of, or act as or be an agent or representative of, or otherwise bind, the other Party. Consultant shall at all times be deemed an independent contractor and none of its employees or the employees of its subcontractors shall be considered employees of Client.

23. Entire Agreement . This Agreement and any amendments to this Agreement contain the complete agreement between Client and Consultant with respect to the subject matter of this Agreement and supersede all other agreements and understandings, including the Original Agreement, whether written or oral, with respect to the matters contained in this Agreement, including any letters of intent, term sheets or similar proposals exchanged by the Parties.

24. Time . Time is of the essence of this Agreement and each provision hereof.

25. Survival . All provisions of this Agreement that must survive the expiration or earlier termination of this Agreement in order to give full force and effect to the intent of the Parties (including the Warranty, indemnity and confidentiality provisions) shall remain in effect and be enforceable to such extent for (1) the period specifically forth in this Agreement, or (2) if no such period is specified, a period equal to the shorter of (a) five (5) years from the earlier to occur of such expiration or termination or (b) the applicable statute of limitations period; provided , however , that Consultant’s lien warranty and intellectual property indemnity set forth in Sections 8 and 13 shall survive indefinitely.

26. Amendment . No modification, amendment, or other change to this Agreement shall be effective unless agreed to in a writing signed by each of the Parties.

27. No Waiver . Failure or forbearance by any Party to exercise any of its rights or remedies under this Agreement shall not constitute a waiver of such rights or remedies in that or any other instance. No Party shall be deemed to have waived any right or remedy resulting from such failure to perform unless it has made such waiver specifically in writing.

28. No Third Party Beneficiaries . Except with respect to the rights of indemnitees under Section 13 , (1) nothing in this Agreement nor any action taken hereunder shall be construed to create any duty, liability or standard of care to any Person that is not a Party, (2) no Person that is not a Party shall have any rights or interest, direct or indirect, in this Agreement or the Services to be performed hereunder and (3) this Agreement is intended solely for the benefit of the Parties, and the Parties expressly disclaim any intent to create any rights in any third party as a third party beneficiary to this Agreement or the Services to be performed hereunder.

29. Further Assurances . The Parties agree to provide such information, execute and deliver such instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party which are not inconsistent with the provisions of this Agreement and which do not involve the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of the Parties.

 

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30. Joint Preparation . The Parties have jointly prepared this Agreement, with access to counsel, and none of the provisions hereof shall be construed against one Party on the ground that such Party is the author of this Agreement or any part hereof. Because both Parties have participated in the negotiation and drafting of this Agreement, the usual rule of contract construction that resolves ambiguities against the drafter shall not apply.

 

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement.

CLIENT:

 

CONTANGO ORE, INC.,

a Delaware corporation

By:   /s/ KENNETH R. PEAK
  Kenneth R. Peak

CONSULTANT:

 

AVALON DEVELOPMENT CORPORATION,

an Alaska corporation

By:   /s/ CURT FREEMAN
  EIN: 920104738

 

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EXHIBIT A

SERVICES

Consultant shall provide services to Client with respect to the following:

1. Geological services directed primarily toward the generation and exploration of metallic mineral exploration properties within Alaska, or other locations and geological work as may be assigned from time to time by the Client.

2. Participation in ad hoc exploration groups as may be set up from time to time by Client to generate exploration targets within metallogenic terrains anywhere in the world.

3. Mineral exploration management services, including but not limited to mineral property identification, pre-field budgeting, planning and logistical implementation, field exploration program management, claim staking, mining claim maintenance services, exploration permitting, prject accounting, data analysis and report preparation and presentation as shall be specified on an individual property basis by the Client’s representative or his delegate.

4. All other services requested by Client and which Consultant is qualified and willing to perform.

 

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EXHIBIT B

GOLD PROPERTIES

Mineral Lease, effective as of July 15, 2008, between the Native Village of Tetlin and Juneau Exploration, L.P., d/b/a Juneau Mining Company, as amended by Amendment No. 1 to Mineral Lease, effective as of October 1, 2009, as assigned to Contango ORE, Inc.

LAD CLAIMS

TRIPLE Z PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   Lad 1    160    18N    15E    3    Copper River    666952

2

   Lad 2    160    18N    15E    2    Copper River    666953

3

   Lad 3    160    18N    15E    10    Copper River    666954

4

   Lad 4    160    18N    15E    11    Copper River    666955

 

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[Exhibit B continued]

TOK CLAIMS

TETLIN PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   TOK 1    40    16N    13E    9    Copper River    614253

2

   TOK 2    40    16N    13E    9    Copper River    614254

3

   TOK 3    40    16N    13E    9    Copper River    614255

4

   TOK 4    40    16N    13E    9    Copper River    614256

5

   TOK 5    160    16N    13E    8    Copper River    614257

6

   TOK 6    160    16N    13E    9    Copper River    614258

7

   TOK 7    40    16N    13E    9    Copper River    614259

8

   TOK 8    40    16N    13E    9    Copper River    614260

9

   TOK 9    40    16N    13E    9    Copper River    614261

10

   TOK 10    40    16N    13E    9    Copper River    614262

11

   TOK 11    40    16N    13E    10    Copper River    614263

12

   TOK 12    40    16N    13E    10    Copper River    614264

13

   TOK 13    160    16N    12E    13    Copper River    614265

14

   TOK 14    160    16N    13E    18    Copper River    614266

15

   TOK 15    160    16N    13E    18    Copper River    614267

16

   TOK 16    160    16N    13E    17    Copper River    614268

17

   TOK 17    160    16N    13E    17    Copper River    614269

18

   TOK 18    160    16N    13E    16    Copper River    614270

19

   TOK 19    40    16N    13E    16    Copper River    614271

20

   TOK 20    40    16N    13E    16    Copper River    614272

21

   TOK 21    40    16N    13E    15    Copper River    614273

22

   TOK 22    40    16N    13E    16    Copper River    614274

23

   TOK 23    40    16N    13E    16    Copper River    614275

24

   TOK 24    40    16N    13E    15    Copper River    614276

25

   TOK 25    160    16N    12E    14    Copper River    614277

26

   TOK 26    160    16N    12E    13    Copper River    614278

27

   TOK 27    160    16N    12E    13    Copper River    614279

28

   TOK 28    160    16N    13E    18    Copper River    614280

29

   TOK 29    160    16N    13E    18    Copper River    614281

30

   TOK 30    160    16N    13E    17    Copper River    614282

31

   TOK 31    160    16N    13E    17    Copper River    614283

32

   TOK 32    160    16N    13E    16    Copper River    614284

33

   TOK 33    40    16N    13E    16    Copper River    614285

34

   TOK 34    40    16N    13E    16    Copper River    614286

 

-21-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

35

   TOK 35    160    16N    12E    23    Copper River    614287

36

   TOK 36    160    16N    12E    23    Copper River    614288

37

   TOK 37    160    16N    12E    24    Copper River    614289

38

   TOK 38    160    16N    12E    24    Copper River    614290

39

   TOK 39    160    16N    13E    19    Copper River    614291

40

   TOK 40    160    16N    13E    19    Copper River    614292

41

   TOK 41    160    16N    13E    20    Copper River    614293

42

   TOK 42    160    16N    13E    20    Copper River    614294

43

   TOK 43    40    16N    13E    21    Copper River    614295

44

   TOK 44    40    16N    13E    21    Copper River    614296

45

   TOK 45    40    16N    13E    21    Copper River    614297

46

   TOK 46    40    16N    13E    21    Copper River    614298

47

   TOK 47    160    16N    12E    22    Copper River    614299

48

   TOK 48    160    16N    12E    23    Copper River    614300

49

   TOK 49    160    16N    12E    23    Copper River    614301

50

   TOK 50    160    16N    12E    24    Copper River    614302

51

   TOK 51    160    16N    12E    24    Copper River    614303

52

   TOK 52    160    16N    13E    19    Copper River    614304

53

   TOK 53    160    16N    13E    19    Copper River    614305

54

   TOK 54    160    16N    13E    20    Copper River    614306

55

   TOK 55    160    16N    13E    20    Copper River    614307

56

   TOK 56    40    16N    13E    21    Copper River    614308

57

   TOK 57    40    16N    13E    21    Copper River    614309

58

   TOK 58    40    16N    13E    21    Copper River    614310

59

   TOK 59    40    16N    13E    21    Copper River    614311

60

   TOK 60    40    16N    13E    21    Copper River    614312

61

   TOK 61    160    16N    12E    27    Copper River    614313

62

   TOK 62    160    16N    12E    27    Copper River    614314

63

   TOK 63    160    16N    12E    26    Copper River    614315

64

   TOK 64    160    16N    12E    26    Copper River    614316

65

   TOK 65    160    16N    12E    25    Copper River    614317

66

   TOK 66    40    16N    12E    25    Copper River    614318

67

   TOK 67    40    16N    12E    25    Copper River    614319

68

   TOK 68    40    16N    12E    25    Copper River    614320

69

   TOK 69    40    16N    12E    25    Copper River    614321

70

   TOK 70    40    16N    13E    30    Copper River    614322

71

   TOK 71    40    16N    13E    30    Copper River    614323

72

   TOK 72    40    16N    13E    30    Copper River    614324

73

   TOK 73    40    16N    13E    30    Copper River    614325

74

   TOK 74    160    16N    13E    30    Copper River    614326

75

   TOK 75    160    16N    13E    29    Copper River    614327

 

-22-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

76

   TOK 76    160    16N    13E    29    Copper River    614328

77

   TOK 77    40    16N    13E    28    Copper River    614329

78

   TOK 78    40    16N    13E    28    Copper River    614330

79

   TOK 79    40    16N    13E    28    Copper River    614331

80

   TOK 80    40    16N    13E    28    Copper River    614332

81

   TOK 81    40    16N    13E    28    Copper River    614333

82

   TOK 82    40    16N    13E    28    Copper River    614334

83

   TOK 83    160    16N    12E    28    Copper River    614335

84

   TOK 84    160    16N    12E    27    Copper River    614336

85

   TOK 85    160    16N    12E    27    Copper River    614337

86

   TOK 86    160    16N    12E    26    Copper River    614338

87

   TOK 87    160    16N    12E    26    Copper River    614339

88

   TOK 88    160    16N    12E    25    Copper River    614340

89

   TOK 89    40    16N    12E    25    Copper River    614341

90

   TOK 90    40    16N    12E    25    Copper River    614342

91

   TOK 91    40    16N    13E    29    Copper River    614343

92

   TOK 92    40    16N    13E    29    Copper River    614344

93

   TOK 93    40    16N    13E    29    Copper River    614345

94

   TOK 94    40    16N    13E    29    Copper River    614346

95

   TOK 95    40    16N    13E    28    Copper River    614347

96

   TOK 96    160    16N    12E    33    Copper River    614348

97

   TOK 97    160    16N    12E    33    Copper River    614349

98

   TOK 98    160    16N    12E    34    Copper River    614350

99

   TOK 99    40    16N    12E    34    Copper River    614351

100

   TOK 100    40    16N    12E    34    Copper River    614352

101

   TOK 101    40    16N    12E    34    Copper River    614353

102

   TOK 102    40    16N    12E    34    Copper River    614354

103

   TOK 103    40    16N    12E    35    Copper River    614355

104

   TOK 104    40    16N    12E    35    Copper River    614356

105

   TOK 105    40    16N    12E    35    Copper River    614357

106

   TOK 106    40    16N    12E    35    Copper River    614358

107

   TOK 107    40    16N    12E    35    Copper River    614359

108

   TOK 108    40    16N    12E    35    Copper River    614360

109

   TOK 109    40    16N    12E    35    Copper River    614361

110

   TOK 110    40    16N    12E    36    Copper River    614362

111

   TOK 111    40    16N    12E    36    Copper River    614363

112

   TOK 112    40    16N    12E    36    Copper River    614364

113

   TOK 113    40    16N    12E    36    Copper River    614365

114

   TOK 114    160    16N    12E    32    Copper River    614366

115

   TOK 115    160    16N    12E    32    Copper River    614367

116

   TOK 116    160    16N    12E    33    Copper River    614368

 

-23-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

117

   TOK 117    160    16N    12E    33    Copper River    614369

118

   TOK 118    40    16N    12E    34    Copper River    614370

119

   TOK 119    40    16N    12E    34    Copper River    614371

120

   TOK 120    40    16N    12E    34    Copper River    614372

121

   TOK 121    40    16N    12E    34    Copper River    614373

122

   TOK 122    40    16N    12E    34    Copper River    614374

 

-24-


 

EXHIBIT C

REE PROPERTIES

ALT CLAIMS

ALATNA PROJECT, ALASKA

All State of Alaska claims located in the Fairbanks Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

1

   ALT 1    160    28N    23W    5    Fairbanks    701674

2

   ALT 2    160    28N    23W    5    Fairbanks    701675

3

   ALT 3    160    28N    23W    4    Fairbanks    701676

4

   ALT 4    160    28N    23W    4    Fairbanks    701677

5

   ALT 5    160    28N    23W    3    Fairbanks    701678

6

   ALT 6    160    28N    23W    3    Fairbanks    701679

7

   ALT 7    160    28N    23W    2    Fairbanks    701680

8

   ALT 8    160    28N    23W    8    Fairbanks    701681

9

   ALT 9    160    28N    23W    8    Fairbanks    701682

10

   ALT 10    160    28N    23W    9    Fairbanks    701683

11

   ALT 11    160    28N    23W    9    Fairbanks    701684

12

   ALT 12    160    28N    23W    10    Fairbanks    701685

13

   ALT 13    160    28N    23W    10    Fairbanks    701686

14

   ALT 14    160    28N    23W    11    Fairbanks    701687

15

   ALT 15    160    28N    23W    8    Fairbanks    701688

16

   ALT 16    160    28N    23W    8    Fairbanks    701689

17

   ALT 17    160    28N    23W    9    Fairbanks    701690

18

   ALT 18    160    28N    23W    9    Fairbanks    701691

19

   ALT 19    160    28N    23W    10    Fairbanks    701692

20

   ALT 20    160    28N    23W    10    Fairbanks    701693

21

   ALT 21    160    28N    23W    11    Fairbanks    701694

22

   ALT 22    160    28N    23W    17    Fairbanks    701695

23

   ALT 23    160    28N    23W    17    Fairbanks    701696

24

   ALT 24    160    28N    23W    16    Fairbanks    701697

25

   ALT 25    160    28N    23W    16    Fairbanks    701698

26

   ALT 26    160    28N    23W    15    Fairbanks    701699

27

   ALT 27    160    28N    23W    15    Fairbanks    701700

28

   ALT 28    160    28N    23W    14    Fairbanks    701701

29

   ALT 29    160    28N    23W    17    Fairbanks    701702

30

   ALT 30    160    28N    23W    17    Fairbanks    701703

31

   ALT 31    160    28N    23W    16    Fairbanks    701704

32

   ALT 32    160    28N    23W    16    Fairbanks    701705

33

   ALT 33    160    28N    23W    15    Fairbanks    701706

 

-25-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

34

   ALT 34    160    28N    23W    15    Fairbanks    701707

35

   ALT 35    160    28N    23W    14    Fairbanks    701708

36

   ALT 36    160    28N    23W    20    Fairbanks    701709

37

   ALT 37    160    28N    23W    20    Fairbanks    701710

38

   ALT 38    160    28N    23W    21    Fairbanks    701711

39

   ALT 39    160    28N    23W    21    Fairbanks    701712

40

   ALT 40    160    28N    23W    22    Fairbanks    701713

41

   ALT 41    160    28N    23W    22    Fairbanks    701714

42

   ALT 42    160    28N    23W    23    Fairbanks    701715

43

   ALT 43    160    28N    24W    33    Fairbanks    701716

44

   ALT 44    160    28N    24W    33    Fairbanks    701717

45

   ALT 45    160    28N    24W    34    Fairbanks    701718

46

   ALT 46    160    28N    24W    34    Fairbanks    701719

47

   ALT 47    160    28N    24W    35    Fairbanks    701720

48

   ALT 48    160    28N    24W    35    Fairbanks    701721

49

   ALT 49    160    28N    24W    36    Fairbanks    701722

50

   ALT 50    160    27N    25W    2    Fairbanks    701723

51

   ALT 51    160    27N    25W    2    Fairbanks    701724

52

   ALT 52    160    27N    25W    1    Fairbanks    701725

53

   ALT 53    160    27N    25W    1    Fairbanks    701726

54

   ALT 54    160    27N    24W    6    Fairbanks    701727

55

   ALT 55    160    27N    24W    6    Fairbanks    701728

56

   ALT 56    160    27N    24W    5    Fairbanks    701729

57

   ALT 57    160    27N    24W    5    Fairbanks    701730

58

   ALT 58    160    27N    24W    4    Fairbanks    701731

59

   ALT 59    160    27N    24W    4    Fairbanks    701732

60

   ALT 60    160    27N    24W    3    Fairbanks    701733

61

   ALT 61    160    27N    24W    3    Fairbanks    701734

62

   ALT 62    160    27N    24W    2    Fairbanks    701735

63

   ALT 63    160    27N    24W    2    Fairbanks    701736

64

   ALT 64    160    27N    24W    1    Fairbanks    701737

65

   ALT 65    160    27N    25W    2    Fairbanks    701738

66

   ALT 66    160    27N    25W    2    Fairbanks    701739

67

   ALT 67    160    27N    25W    1    Fairbanks    701740

68

   ALT 68    160    27N    24W    6    Fairbanks    701741

69

   ALT 69    160    27N    24W    5    Fairbanks    701742

70

   ALT 70    160    27N    24W    5    Fairbanks    701743

71

   ALT 71    160    27N    24W    4    Fairbanks    701744

72

   ALT 72    160    27N    24W    4    Fairbanks    701745

73

   ALT 73    160    27N    24W    3    Fairbanks    701746

74

   ALT 74    160    27N    24W    3    Fairbanks    701747

 

-26-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

75

   ALT 75    160    27N    24W    2    Fairbanks    701748

76

   ALT 76    160    27N    24W    2    Fairbanks    701749

77

   ALT 77    160    27N    24W    1    Fairbanks    701750

78

   ALT 78    160    27N    25W    11    Fairbanks    701751

79

   ALT 79    160    27N    25W    11    Fairbanks    701752

80

   ALT 80    160    27N    25W    12    Fairbanks    701753

81

   ALT 81    160    27N    24W    9    Fairbanks    701754

82

   ALT 82    160    27N    24W    10    Fairbanks    701755

83

   ALT 83    160    27N    24W    10    Fairbanks    701756

84

   ALT 84    160    27N    24W    11    Fairbanks    701757

85

   ALT 85    160    27N    24W    11    Fairbanks    701758

86

   ALT 86    160    27N    24W    12    Fairbanks    701759

87

   ALT 87    160    27N    24W    10    Fairbanks    701760

88

   ALT 88    160    27N    24W    10    Fairbanks    701761

89

   ALT 89    160    27N    24W    11    Fairbanks    701762

90

   ALT 90    160    27N    24W    11    Fairbanks    701763

91

   ALT 91    160    27N    24W    12    Fairbanks    701764

92

   ALT 92    160    21N    26E    16    Kateel River    701765

93

   ALT 93    160    21N    26E    16    Kateel River    701766

94

   ALT 94    160    21N    26E    15    Kateel River    701767

95

   ALT 95    160    21N    26E    15    Kateel River    701768

96

   ALT 96    160    21N    26E    14    Kateel River    701769

97

   ALT 97    160    21N    26E    14    Kateel River    701770

98

   ALT 98    160    21N    26E    21    Kateel River    701771

99

   ALT 99    160    21N    26E    21    Kateel River    701772

100

   ALT 100    160    21N    26E    22    Kateel River    701773

101

   ALT 101    160    21N    26E    22    Kateel River    701774

102

   ALT 102    160    21N    26E    23    Kateel River    701775

103

   ALT 103    160    21N    26E    23    Kateel River    701776

104

   ALT 104    160    21N    26E    21    Kateel River    701777

105

   ALT 105    160    21N    26E    21    Kateel River    701778

106

   ALT 106    160    21N    26E    22    Kateel River    701779

107

   ALT 107    160    21N    26E    22    Kateel River    701780

108

   ALT 108    160    21N    26E    23    Kateel River    701781

109

   ALT 109    160    21N    26E    23    Kateel River    701782

110

   ALT 110    160    21N    26E    28    Kateel River    701783

111

   ALT 111    160    21N    26E    28    Kateel River    701784

112

   ALT 112    160    21N    26E    27    Kateel River    701785

113

   ALT 113    160    21N    26E    27    Kateel River    701786

114

   ALT 114    160    21N    26E    26    Kateel River    701787

115

   ALT 115    160    21N    26E    26    Kateel River    701788

 

-27-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL_#

116

   ALT 116    160    21N    26E    28    Kateel River    701789

117

   ALT 117    160    21N    26E    28    Kateel River    701790

118

   ALT 118    160    21N    26E    27    Kateel River    701791

119

   ALT 119    160    21N    26E    27    Kateel River    701792

120

   ALT 120    160    21N    26E    26    Kateel River    701793

121

   ALT 121    160    21N    26E    26    Kateel River    701794

122

   ALT 122    160    21N    26E    33    Kateel River    701795

123

   ALT 123    160    21N    26E    33    Kateel River    701796

124

   ALT 124    160    21N    26E    34    Kateel River    701797

125

   ALT 125    160    21N    26E    34    Kateel River    701798

126

   ALT 126    160    21N    26E    35    Kateel River    701799

127

   ALT 127    160    21N    26E    35    Kateel River    701800

 

-28-


 

[Exhibit C continued]

SPK CLAIMS

SPOOKY PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon and Rampart Recording Districts, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SPK 1    160    11N    18W    27    Fairbanks    615106

2

   SPK 2    160    11N    18W    27    Fairbanks    615107

3

   SPK 3    160    11N    18W    26    Fairbanks    615108

4

   SPK 4    160    11N    18W    26    Fairbanks    615109

5

   SPK 5    160    11N    18W    25    Fairbanks    615110

6

   SPK 6    160    11N    18W    25    Fairbanks    615111

7

   SPK 7    160    11N    17W    30    Fairbanks    615112

8

   SPK 8    160    11N    17W    30    Fairbanks    615113

9

   SPK 9    160    11N    17W    29    Fairbanks    615114

10

   SPK 10    160    11N    17W    29    Fairbanks    615115

11

   SPK 11    160    11N    17W    28    Fairbanks    615116

12

   SPK 12    160    11N    17W    28    Fairbanks    615117

13

   SPK 13    160    11N    18W    27    Fairbanks    615118

14

   SPK 14    160    11N    18W    27    Fairbanks    615119

15

   SPK 15    160    11N    18W    26    Fairbanks    615120

16

   SPK 16    160    11N    18W    26    Fairbanks    615121

17

   SPK 17    160    11N    18W    25    Fairbanks    615122

18

   SPK 18    160    11N    18W    25    Fairbanks    615123

19

   SPK 19    160    11N    17W    30    Fairbanks    615124

20

   SPK 20    160    11N    17W    30    Fairbanks    615125

21

   SPK 21    160    11N    17W    29    Fairbanks    615126

22

   SPK 22    160    11N    17W    29    Fairbanks    615127

23

   SPK 23    160    11N    17W    28    Fairbanks    615128

24

   SPK 24    160    11N    17W    28    Fairbanks    615129

25

   SPK 25    160    11N    18W    32    Fairbanks    615130

26

   SPK 26    160    11N    18W    32    Fairbanks    615131

27

   SPK 27    160    11N    18W    33    Fairbanks    615132

28

   SPK 28    160    11N    18W    33    Fairbanks    615133

29

   SPK 29    160    11N    18W    34    Fairbanks    615134

30

   SPK 30    160    11N    18W    34    Fairbanks    615135

31

   SPK 31    160    11N    18W    35    Fairbanks    615136

32

   SPK 32    160    11N    18W    35    Fairbanks    615137

33

   SPK 33    160    11N    18W    36    Fairbanks    615138

34

   SPK 34    160    11N    18W    36    Fairbanks    615139

35

   SPK 35    160    11N    17W    31    Fairbanks    615140

 

-29-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

36

   SPK 36    160    11N    17W    31    Fairbanks    615141

37

   SPK 37    160    11N    17W    32    Fairbanks    615142

38

   SPK 38    160    11N    17W    32    Fairbanks    615143

39

   SPK 39    160    11N    17W    33    Fairbanks    615144

40

   SPK 40    160    11N    17W    33    Fairbanks    615145

41

   SPK 41    160    11N    17W    34    Fairbanks    615146

42

   SPK 42    160    11N    18W    32    Fairbanks    615147

43

   SPK 43    160    11N    18W    32    Fairbanks    615148

44

   SPK 44    160    11N    18W    33    Fairbanks    615149

45

   SPK 45    160    11N    18W    33    Fairbanks    615150

46

   SPK 46    160    11N    18W    34    Fairbanks    615151

47

   SPK 47    160    11N    18W    34    Fairbanks    615152

48

   SPK 48    160    11N    18W    35    Fairbanks    615153

49

   SPK 49    160    11N    18W    35    Fairbanks    615154

50

   SPK 50    160    11N    18W    36    Fairbanks    615155

51

   SPK 51    160    11N    18W    36    Fairbanks    615156

52

   SPK 52    160    11N    17W    31    Fairbanks    615157

53

   SPK 53    160    11N    17W    31    Fairbanks    615158

54

   SPK 54    160    11N    17W    32    Fairbanks    615159

55

   SPK 55    160    11N    17W    32    Fairbanks    615160

56

   SPK 56    160    11N    17W    33    Fairbanks    615161

57

   SPK 57    160    11N    17W    33    Fairbanks    615162

58

   SPK 58    160    11N    17W    34    Fairbanks    615163

59

   SPK 59    160    10N    18W    5    Fairbanks    615164

60

   SPK 60    160    10N    18W    5    Fairbanks    615165

61

   SPK 61    160    10N    18W    4    Fairbanks    615166

62

   SPK 62    160    10N    18W    4    Fairbanks    615167

63

   SPK 63    160    10N    18W    3    Fairbanks    615168

64

   SPK 64    160    10N    18W    3    Fairbanks    615169

65

   SPK 65    160    10N    18W    2    Fairbanks    615170

66

   SPK 66    160    10N    18W    2    Fairbanks    615171

67

   SPK 67    160    10N    18W    1    Fairbanks    615172

68

   SPK 68    160    10N    18W    1    Fairbanks    615173

69

   SPK 69    160    10N    17W    6    Fairbanks    615174

70

   SPK 70    160    10N    17W    6    Fairbanks    615175

71

   SPK 71    160    10N    17W    5    Fairbanks    615176

72

   SPK 72    160    10N    17W    5    Fairbanks    615177

73

   SPK 73    160    10N    17W    4    Fairbanks    615178

74

   SPK 74    160    10N    17W    4    Fairbanks    615179

75

   SPK 75    160    10N    17W    3    Fairbanks    615180

76

   SPK 76    160    10N    17W    3    Fairbanks    615181

 

-30-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

77

   SPK 77    160    10N    18W    5    Fairbanks    615182

78

   SPK 78    160    10N    18W    5    Fairbanks    615183

79

   SPK 79    160    10N    18W    4    Fairbanks    615184

80

   SPK 80    160    10N    18W    4    Fairbanks    615185

81

   SPK 81    160    10N    18W    3    Fairbanks    615186

82

   SPK 82    160    10N    18W    3    Fairbanks    615187

83

   SPK 83    160    10N    18W    2    Fairbanks    615188

84

   SPK 84    160    10N    18W    2    Fairbanks    615189

85

   SPK 85    160    10N    18W    1    Fairbanks    615190

86

   SPK 86    160    10N    18W    1    Fairbanks    615191

87

   SPK 87    160    10N    17W    6    Fairbanks    615192

88

   SPK 88    160    10N    17W    6    Fairbanks    615193

89

   SPK 89    160    10N    17W    5    Fairbanks    615194

90

   SPK 90    160    10N    17W    5    Fairbanks    615195

91

   SPK 91    160    10N    17W    4    Fairbanks    615196

92

   SPK 92    160    10N    17W    4    Fairbanks    615197

93

   SPK 93    160    10N    17W    3    Fairbanks    615198

94

   SPK 94    160    10N    17W    3    Fairbanks    615199

95

   SPK 95    160    10N    18W    8    Fairbanks    615200

96

   SPK 96    160    10N    18W    8    Fairbanks    615201

97

   SPK 97    160    10N    18W    9    Fairbanks    615202

98

   SPK 98    160    10N    18W    9    Fairbanks    615203

99

   SPK 99    160    10N    18W    10    Fairbanks    615204

100

   SPK 100    160    10N    18W    10    Fairbanks    615205

101

   SPK 101    160    10N    18W    11    Fairbanks    615206

102

   SPK 102    160    10N    18W    11    Fairbanks    615207

103

   SPK 103    160    10N    18W    12    Fairbanks    615208

104

   SPK 104    160    10N    18W    12    Fairbanks    615209

105

   SPK 105    160    10N    17W    7    Fairbanks    615210

106

   SPK 106    160    10N    17W    7    Fairbanks    615211

107

   SPK 107    160    10N    17W    8    Fairbanks    615212

108

   SPK 108    160    10N    17W    8    Fairbanks    615213

109

   SPK 109    160    10N    17W    9    Fairbanks    615214

110

   SPK 110    160    10N    17W    9    Fairbanks    615215

111

   SPK 111    160    10N    17W    10    Fairbanks    615216

112

   SPK 112    160    10N    17W    10    Fairbanks    615217

113

   SPK 113    160    10N    18W    8    Fairbanks    615218

114

   SPK 114    160    10N    18W    8    Fairbanks    615219

115

   SPK 115    160    10N    18W    9    Fairbanks    615220

116

   SPK 116    160    10N    18W    9    Fairbanks    615221

117

   SPK 117    160    10N    18W    10    Fairbanks    615222

 

-31-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

118

   SPK 118    160    10N    18W    10    Fairbanks    615223

119

   SPK 119    160    10N    18W    11    Fairbanks    615224

120

   SPK 120    160    10N    18W    11    Fairbanks    615225

121

   SPK 121    160    10N    18W    12    Fairbanks    615226

122

   SPK 122    160    10N    18W    12    Fairbanks    615227

123

   SPK 123    160    10N    17W    7    Fairbanks    615228

124

   SPK 124    160    10N    17W    7    Fairbanks    615229

125

   SPK 125    160    10N    17W    8    Fairbanks    615230

126

   SPK 126    160    10N    17W    8    Fairbanks    615231

127

   SPK 127    160    10N    17W    9    Fairbanks    615232

128

   SPK 128    160    10N    17W    9    Fairbanks    615233

129

   SPK 129    160    10N    17W    10    Fairbanks    615234

130

   SPK 130    160    10N    17W    10    Fairbanks    615235

131

   SPK 131    160    10N    18W    17    Fairbanks    615236

132

   SPK 132    160    10N    18W    17    Fairbanks    615237

133

   SPK 133    160    10N    18W    16    Fairbanks    615238

134

   SPK 134    160    10N    18W    16    Fairbanks    615239

135

   SPK 135    160    10N    18W    15    Fairbanks    615240

136

   SPK 136    160    10N    18W    15    Fairbanks    615241

137

   SPK 137    160    10N    18W    14    Fairbanks    615242

138

   SPK 138    160    10N    18W    14    Fairbanks    615243

139

   SPK 139    160    10N    18W    13    Fairbanks    615244

140

   SPK 140    160    10N    18W    13    Fairbanks    615245

141

   SPK 141    160    10N    17W    18    Fairbanks    615246

142

   SPK 142    160    10N    17W    18    Fairbanks    615247

143

   SPK 143    160    10N    17W    17    Fairbanks    615248

144

   SPK 144    160    10N    17W    17    Fairbanks    615249

145

   SPK 145    160    10N    17W    16    Fairbanks    615250

146

   SPK 146    160    10N    17W    16    Fairbanks    615251

147

   SPK 147    160    10N    17W    15    Fairbanks    615252

148

   SPK 148    160    10N    17W    15    Fairbanks    615253

149

   SPK 149    160    10N    18W    17    Fairbanks    615254

150

   SPK 150    160    10N    18W    17    Fairbanks    615255

151

   SPK 151    160    10N    18W    16    Fairbanks    615256

152

   SPK 152    160    10N    18W    16    Fairbanks    615257

153

   SPK 153    160    10N    18W    15    Fairbanks    615258

154

   SPK 154    160    10N    18W    15    Fairbanks    615259

155

   SPK 155    160    10N    18W    14    Fairbanks    615260

156

   SPK 156    160    10N    18W    14    Fairbanks    615261

157

   SPK 157    160    10N    18W    13    Fairbanks    615262

158

   SPK 158    160    10N    18W    13    Fairbanks    615263

 

-32-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

159

   SPK 159    160    10N    17W    18    Fairbanks    615264

160

   SPK 160    160    10N    17W    18    Fairbanks    615265

161

   SPK 161    160    10N    17W    17    Fairbanks    615266

162

   SPK 162    160    10N    17W    17    Fairbanks    615267

163

   SPK 163    160    10N    17W    16    Fairbanks    615268

164

   SPK 164    160    10N    17W    16    Fairbanks    615269

165

   SPK 165    160    10N    17W    15    Fairbanks    615270

166

   SPK 166    160    10N    17W    15    Fairbanks    615271

 

-33-


 

[Exhibit C continued]

WLF CLAIMS

WOLF PROJECT, ALASKA

All State of Alaska claims located in the Fort Gibbon Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   WLF 1    160    2S    23E    7    Kateel River    701959

2

   WLF 2    160    2S    23E    7    Kateel River    701960

3

   WLF 3    160    2S    23E    8    Kateel River    701961

4

   WLF 4    160    2S    23E    8    Kateel River    701962

5

   WLF 5    160    2S    23E    9    Kateel River    701963

6

   WLF 6    160    2S    23E    9    Kateel River    701964

7

   WLF 7    160    2S    23E    10    Kateel River    701965

8

   WLF 8    160    2S    23E    10    Kateel River    701966

9

   WLF 9    160    2S    23E    11    Kateel River    701967

10

   WLF 10    160    2S    23E    11    Kateel River    701968

11

   WLF 11    160    2S    23E    12    Kateel River    701969

12

   WLF 12    160    2S    23E    12    Kateel River    701970

13

   WLF 13    160    2S    24E    7    Kateel River    701971

14

   WLF 14    160    2S    24E    7    Kateel River    701972

15

   WLF 15    160    2S    24E    8    Kateel River    701973

16

   WLF 16    160    2S    24E    8    Kateel River    701974

17

   WLF 17    160    2S    23E    7    Kateel River    701975

18

   WLF 18    160    2S    23E    7    Kateel River    701976

19

   WLF 19    160    2S    23E    8    Kateel River    701977

20

   WLF 20    160    2S    23E    8    Kateel River    701978

21

   WLF 21    160    2S    23E    9    Kateel River    701979

22

   WLF 22    160    2S    23E    9    Kateel River    701980

23

   WLF 23    160    2S    23E    10    Kateel River    701981

24

   WLF 24    160    2S    23E    10    Kateel River    701982

25

   WLF 25    160    2S    23E    11    Kateel River    701983

26

   WLF 26    160    2S    23E    11    Kateel River    701984

27

   WLF 27    160    2S    23E    12    Kateel River    701985

28

   WLF 28    160    2S    23E    12    Kateel River    701986

29

   WLF 29    160    2S    24E    7    Kateel River    701987

30

   WLF 30    160    2S    24E    7    Kateel River    701988

31

   WLF 31    160    2S    24E    8    Kateel River    701989

32

   WLF 32    160    2S    24E    8    Kateel River    701990

33

   WLF 33    160    2S    23E    18    Kateel River    701991

34

   WLF 34    160    2S    23E    18    Kateel River    701992

35

   WLF 35    160    2S    23E    17    Kateel River    701993

36

   WLF 36    160    2S    23E    17    Kateel River    701994

 

-34-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

37

   WLF 37    160    2S    23E    16    Kateel River    701995

38

   WLF 38    160    2S    23E    16    Kateel River    701996

39

   WLF 39    160    2S    23E    15    Kateel River    701997

40

   WLF 40    160    2S    23E    15    Kateel River    701998

41

   WLF 41    160    2S    23E    14    Kateel River    701999

42

   WLF 42    160    2S    23E    14    Kateel River    702000

43

   WLF 43    160    2S    23E    13    Kateel River    702001

44

   WLF 44    160    2S    23E    13    Kateel River    702002

45

   WLF 45    160    2S    24E    18    Kateel River    702003

46

   WLF 46    160    2S    24E    18    Kateel River    702004

47

   WLF 47    160    2S    24E    17    Kateel River    702005

48

   WLF 48    160    2S    24E    17    Kateel River    702006

49

   WLF 49    160    2S    23E    18    Kateel River    702007

50

   WLF 50    160    2S    23E    18    Kateel River    702008

51

   WLF 51    160    2S    23E    17    Kateel River    702009

52

   WLF 52    160    2S    23E    17    Kateel River    702010

53

   WLF 53    160    2S    23E    16    Kateel River    702011

54

   WLF 54    160    2S    23E    16    Kateel River    702012

55

   WLF 55    160    2S    23E    15    Kateel River    702013

56

   WLF 56    160    2S    23E    15    Kateel River    702014

57

   WLF 57    160    2S    23E    14    Kateel River    702015

58

   WLF 58    160    2S    23E    14    Kateel River    702016

59

   WLF 59    160    2S    23E    13    Kateel River    702017

60

   WLF 60    160    2S    23E    13    Kateel River    702018

61

   WLF 61    160    2S    24E    18    Kateel River    702019

62

   WLF 62    160    2S    24E    18    Kateel River    702020

63

   WLF 63    160    2S    24E    17    Kateel River    702021

64

   WLF 64    160    2S    24E    17    Kateel River    702022

65

   WLF 65    160    2S    23E    19    Kateel River    702023

66

   WLF 66    160    2S    23E    19    Kateel River    702024

67

   WLF 67    160    2S    23E    20    Kateel River    702025

68

   WLF 68    160    2S    23E    20    Kateel River    702026

69

   WLF 69    160    2S    23E    21    Kateel River    702027

70

   WLF 70    160    2S    23E    21    Kateel River    702028

71

   WLF 71    160    2S    23E    22    Kateel River    702029

72

   WLF 72    160    2S    23E    22    Kateel River    702030

73

   WLF 73    160    2S    23E    23    Kateel River    702031

74

   WLF 74    160    2S    23E    23    Kateel River    702032

75

   WLF 75    160    2S    23E    24    Kateel River    702033

76

   WLF 76    160    2S    23E    24    Kateel River    702034

77

   WLF 77    160    2S    24E    19    Kateel River    702035

 

-35-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

78

   WLF 78    160    2S    24E    19    Kateel River    702036

79

   WLF 79    160    2S    24E    20    Kateel River    702037

80

   WLF 80    160    2S    24E    20    Kateel River    702038

81

   WLF 81    160    2S    23E    19    Kateel River    702039

82

   WLF 82    160    2S    23E    19    Kateel River    702040

83

   WLF 83    160    2S    23E    20    Kateel River    702041

84

   WLF 84    160    2S    23E    20    Kateel River    702042

85

   WLF 85    160    2S    23E    21    Kateel River    702043

86

   WLF 86    160    2S    23E    21    Kateel River    702044

87

   WLF 87    160    2S    23E    22    Kateel River    702045

88

   WLF 88    160    2S    23E    22    Kateel River    702046

89

   WLF 89    160    2S    23E    23    Kateel River    702047

90

   WLF 90    160    2S    23E    23    Kateel River    702048

91

   WLF 91    160    2S    23E    24    Kateel River    702049

92

   WLF 92    160    2S    23E    24    Kateel River    702050

93

   WLF 93    160    2S    24E    19    Kateel River    702051

94

   WLF 94    160    2S    24E    19    Kateel River    702052

95

   WLF 95    160    2S    24E    20    Kateel River    702053

96

   WLF 96    160    2S    24E    20    Kateel River    702054

97

   WLF 97    160    2S    23E    30    Kateel River    702055

98

   WLF 98    160    2S    23E    30    Kateel River    702056

99

   WLF 99    160    2S    23E    29    Kateel River    702057

100

   WLF 100    160    2S    23E    29    Kateel River    702058

101

   WLF 101    160    2S    23E    28    Kateel River    702059

102

   WLF 102    160    2S    23E    28    Kateel River    702060

103

   WLF 103    160    2S    23E    27    Kateel River    702061

104

   WLF 104    160    2S    23E    27    Kateel River    702062

105

   WLF 105    160    2S    23E    26    Kateel River    702063

106

   WLF 106    160    2S    23E    26    Kateel River    702064

107

   WLF 107    160    2S    23E    25    Kateel River    702065

108

   WLF 108    160    2S    23E    25    Kateel River    702066

109

   WLF 109    160    2S    24E    30    Kateel River    702067

110

   WLF 110    160    2S    24E    30    Kateel River    702068

111

   WLF 111    160    2S    24E    29    Kateel River    702069

112

   WLF 112    160    2S    24E    29    Kateel River    702070

113

   WLF 113    160    2S    23E    30    Kateel River    702071

114

   WLF 114    160    2S    23E    30    Kateel River    702072

115

   WLF 115    160    2S    23E    29    Kateel River    702073

116

   WLF 116    160    2S    23E    29    Kateel River    702074

117

   WLF 117    160    2S    23E    28    Kateel River    702075

118

   WLF 118    160    2S    23E    28    Kateel River    702076

 

-36-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

119

   WLF 119    160    2S    23E    27    Kateel River    702077

120

   WLF 120    160    2S    23E    27    Kateel River    702078

121

   WLF 121    160    2S    23E    26    Kateel River    702079

122

   WLF 122    160    2S    23E    26    Kateel River    702080

123

   WLF 123    160    2S    23E    25    Kateel River    702081

124

   WLF 124    160    2S    23E    25    Kateel River    702082

125

   WLF 125    160    2S    24E    30    Kateel River    702083

126

   WLF 126    160    2S    24E    30    Kateel River    702084

127

   WLF 127    160    2S    24E    29    Kateel River    702085

128

   WLF 128    160    2S    24E    29    Kateel River    702086

129

   WLF 129    160    2S    23E    31    Kateel River    702087

130

   WLF 130    160    2S    23E    31    Kateel River    702088

131

   WLF 131    160    2S    23E    32    Kateel River    702089

132

   WLF 132    160    2S    23E    32    Kateel River    702090

133

   WLF 133    160    2S    23E    33    Kateel River    702091

134

   WLF 134    160    2S    23E    33    Kateel River    702092

135

   WLF 135    160    2S    23E    34    Kateel River    702093

136

   WLF 136    160    2S    23E    34    Kateel River    702094

137

   WLF 137    160    2S    23E    35    Kateel River    702095

138

   WLF 138    160    2S    23E    35    Kateel River    702096

139

   WLF 139    160    2S    23E    36    Kateel River    702097

140

   WLF 140    160    2S    23E    36    Kateel River    702098

141

   WLF 141    160    2S    24E    31    Kateel River    702099

142

   WLF 142    160    2S    24E    31    Kateel River    702100

143

   WLF 143    160    2S    24E    32    Kateel River    702101

144

   WLF 144    160    2S    24E    32    Kateel River    702102

145

   WLF 145    160    2S    23E    31    Kateel River    702103

146

   WLF 146    160    2S    23E    31    Kateel River    702104

147

   WLF 147    160    2S    23E    32    Kateel River    702105

148

   WLF 148    160    2S    23E    32    Kateel River    702106

149

   WLF 149    160    2S    23E    33    Kateel River    702107

150

   WLF 150    160    2S    23E    33    Kateel River    702108

151

   WLF 151    160    2S    23E    34    Kateel River    702109

152

   WLF 152    160    2S    23E    34    Kateel River    702110

153

   WLF 153    160    2S    23E    35    Kateel River    702111

154

   WLF 154    160    2S    23E    35    Kateel River    702112

155

   WLF 155    160    2S    23E    36    Kateel River    702113

156

   WLF 156    160    2S    23E    36    Kateel River    702114

157

   WLF 157    160    2S    24E    31    Kateel River    702115

158

   WLF 158    160    2S    24E    31    Kateel River    702116

159

   WLF 159    160    2S    24E    32    Kateel River    702117

 

-37-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

160

   WLF 160    160    2S    24E    32    Kateel River    702118

161

   WLF 161    160    3S    23E    6    Kateel River    702119

162

   WLF 162    160    3S    23E    6    Kateel River    702120

163

   WLF 163    160    3S    23E    5    Kateel River    702121

164

   WLF 164    160    3S    23E    5    Kateel River    702122

165

   WLF 165    160    3S    23E    4    Kateel River    702123

166

   WLF 166    160    3S    23E    4    Kateel River    702124

167

   WLF 167    160    3S    23E    3    Kateel River    702125

168

   WLF 168    160    3S    23E    3    Kateel River    702126

169

   WLF 169    160    3S    23E    2    Kateel River    702127

170

   WLF 170    160    3S    23E    2    Kateel River    702128

171

   WLF 171    160    3S    23E    1    Kateel River    702129

172

   WLF 172    160    3S    23E    1    Kateel River    702130

173

   WLF 173    160    3S    24E    6    Kateel River    702131

174

   WLF 174    160    3S    24E    6    Kateel River    702132

175

   WLF 175    160    3S    24E    5    Kateel River    702133

176

   WLF 176    160    3S    24E    5    Kateel River    702134

177

   WLF 177    160    3S    23E    6    Kateel River    702135

178

   WLF 178    160    3S    23E    6    Kateel River    702136

179

   WLF 179    160    3S    23E    5    Kateel River    702137

180

   WLF 180    160    3S    23E    5    Kateel River    702138

181

   WLF 181    160    3S    23E    4    Kateel River    702139

182

   WLF 182    160    3S    23E    4    Kateel River    702140

183

   WLF 183    160    3S    23E    3    Kateel River    702141

184

   WLF 184    160    3S    23E    3    Kateel River    702142

185

   WLF 185    160    3S    23E    2    Kateel River    702143

186

   WLF 186    160    3S    23E    2    Kateel River    702144

187

   WLF 187    160    3S    23E    1    Kateel River    702145

188

   WLF 188    160    3S    23E    1    Kateel River    702146

189

   WLF 189    160    3S    24E    6    Kateel River    702147

190

   WLF 190    160    3S    24E    6    Kateel River    702148

191

   WLF 191    160    3S    24E    5    Kateel River    702149

192

   WLF 192    160    3S    24E    5    Kateel River    702150

193

   WLF 193    160    3S    23E    7    Kateel River    702151

194

   WLF 194    160    3S    23E    7    Kateel River    702152

195

   WLF 195    160    3S    23E    8    Kateel River    702153

196

   WLF 196    160    3S    23E    8    Kateel River    702154

197

   WLF 197    160    3S    23E    9    Kateel River    702155

198

   WLF 198    160    3S    23E    9    Kateel River    702156

199

   WLF 199    160    3S    23E    7    Kateel River    702157

200

   WLF 200    160    3S    23E    7    Kateel River    702158

 

-38-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

201

   WLF 201    160    3S    23E    8    Kateel River    702159

202

   WLF 202    160    3S    23E    8    Kateel River    702160

 

-39-


 

[Exhibit C continued]

SWF CLAIMS

SWIFT PROJECT, ALASKA

All State of Alaska claims located in the Kuskokwim Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

1

   SWF 17    160    17N    28W    24    Seward    701801

2

   SWF 18    160    17N    28W    24    Seward    701802

3

   SWF 19    160    17N    27W    19    Seward    701803

4

   SWF 20    160    17N    27W    19    Seward    701804

5

   SWF 21    160    17N    27W    20    Seward    701805

6

   SWF 22    160    17N    28W    24    Seward    701806

7

   SWF 23    160    17N    28W    24    Seward    701807

8

   SWF 24    160    17N    27W    19    Seward    701808

9

   SWF 25    160    17N    27W    19    Seward    701809

10

   SWF 26    160    17N    27W    20    Seward    701810

11

   SWF 27    160    17N    27W    20    Seward    701811

12

   SWF 28    160    17N    28W    25    Seward    701812

13

   SWF 29    160    17N    28W    25    Seward    701813

14

   SWF 30    160    17N    27W    30    Seward    701814

15

   SWF 31    160    17N    27W    30    Seward    701815

16

   SWF 32    160    17N    27W    29    Seward    701816

17

   SWF 33    160    17N    27W    29    Seward    701817

18

   SWF 34    160    17N    28W    25    Seward    701818

19

   SWF 35    160    17N    28W    25    Seward    701819

20

   SWF 36    160    17N    27W    30    Seward    701820

21

   SWF 37    160    17N    27W    30    Seward    701821

22

   SWF 38    160    17N    27W    29    Seward    701822

23

   SWF 39    160    17N    27W    29    Seward    701823

24

   SWF 40    160    17N    27W    28    Seward    701824

25

   SWF 41    160    17N    28W    36    Seward    701825

26

   SWF 42    160    17N    28W    36    Seward    701826

27

   SWF 43    160    17N    27W    31    Seward    701827

28

   SWF 44    160    17N    27W    31    Seward    701828

29

   SWF 45    160    17N    27W    32    Seward    701829

30

   SWF 46    160    17N    27W    32    Seward    701830

31

   SWF 47    160    17N    27W    33    Seward    701831

32

   SWF 48    160    17N    27W    33    Seward    701832

33

   SWF 49    160    17N    28W    36    Seward    701833

34

   SWF 50    160    17N    28W    36    Seward    701834

35

   SWF 51    160    17N    27W    31    Seward    701835

36

   SWF 52    160    17N    27W    31    Seward    701836

 

-40-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

37

   SWF 53    160    17N    27W    32    Seward    701837

38

   SWF 54    160    17N    27W    32    Seward    701838

39

   SWF 55    160    17N    27W    33    Seward    701839

40

   SWF 56    160    17N    27W    33    Seward    701840

41

   SWF 57    160    17N    27W    34    Seward    701841

42

   SWF 145    160    16N    27W    19    Seward    701842

43

   SWF 146    160    16N    27W    19    Seward    701843

44

   SWF 147    160    16N    27W    20    Seward    701844

45

   SWF 148    160    16N    27W    20    Seward    701845

46

   SWF 149    160    16N    27W    21    Seward    701846

47

   SWF 150    160    16N    27W    21    Seward    701847

48

   SWF 151    160    16N    27W    22    Seward    701848

49

   SWF 155    160    16N    28W    22    Seward    701849

50

   SWF 156    160    16N    28W    22    Seward    701850

51

   SWF 157    160    16N    28W    23    Seward    701851

52

   SWF 158    160    16N    28W    23    Seward    701852

53

   SWF 159    160    16N    28W    24    Seward    701853

54

   SWF 160    160    16N    28W    24    Seward    701854

55

   SWF 161    160    16N    27W    19    Seward    701855

56

   SWF 162    160    16N    27W    19    Seward    701856

57

   SWF 163    160    16N    27W    20    Seward    701857

58

   SWF 164    160    16N    27W    20    Seward    701858

59

   SWF 165    160    16N    27W    21    Seward    701859

60

   SWF 166    160    16N    27W    21    Seward    701860

61

   SWF 167    160    16N    27W    22    Seward    701861

62

   SWF 171    160    16N    28W    27    Seward    701862

63

   SWF 172    160    16N    28W    27    Seward    701863

64

   SWF 173    160    16N    28W    26    Seward    701864

65

   SWF 174    160    16N    28W    26    Seward    701865

66

   SWF 175    160    16N    28W    25    Seward    701866

67

   SWF 176    160    16N    28W    25    Seward    701867

68

   SWF 177    160    16N    27W    30    Seward    701868

69

   SWF 178    160    16N    27W    30    Seward    701869

70

   SWF 179    160    16N    27W    29    Seward    701870

71

   SWF 180    160    16N    27W    29    Seward    701871

72

   SWF 181    160    16N    27W    28    Seward    701872

73

   SWF 182    160    16N    27W    28    Seward    701873

74

   SWF 183    160    16N    27W    27    Seward    701874

75

   SWF 187    160    16N    28W    27    Seward    701875

76

   SWF 188    160    16N    28W    27    Seward    701876

77

   SWF 189    160    16N    28W    26    Seward    701877

 

-41-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   ADL #

78

   SWF 190    160    16N    28W    26    Seward    701878

79

   SWF 191    160    16N    28W    25    Seward    701879

80

   SWF 192    160    16N    28W    25    Seward    701880

81

   SWF 193    160    16N    27W    30    Seward    701881

82

   SWF 194    160    16N    27W    30    Seward    701882

83

   SWF 195    160    16N    27W    29    Seward    701883

84

   SWF 196    160    16N    27W    29    Seward    701884

85

   SWF 197    160    16N    27W    28    Seward    701885

86

   SWF 198    160    16N    27W    28    Seward    701886

87

   SWF 199    160    16N    27W    27    Seward    701887

88

   SWF 203    160    16N    28W    34    Seward    701888

89

   SWF 204    160    16N    28W    34    Seward    701889

90

   SWF 205    160    16N    28W    35    Seward    701890

91

   SWF 206    160    16N    28W    35    Seward    701891

92

   SWF 207    160    16N    28W    36    Seward    701892

93

   SWF 208    160    16N    28W    36    Seward    701893

94

   SWF 209    160    16N    27W    31    Seward    701894

95

   SWF 210    160    16N    27W    31    Seward    701895

96

   SWF 211    160    16N    27W    32    Seward    701896

97

   SWF 212    160    16N    27W    32    Seward    701897

98

   SWF 213    160    16N    27W    33    Seward    701898

99

   SWF 214    160    16N    27W    33    Seward    701899

100

   SWF 215    160    16N    27W    34    Seward    701900

101

   SWF 219    160    16N    28W    34    Seward    701901

102

   SWF 220    160    16N    28W    34    Seward    701902

103

   SWF 221    160    16N    28W    35    Seward    701903

104

   SWF 222    160    16N    28W    35    Seward    701904

105

   SWF 223    160    16N    28W    36    Seward    701905

106

   SWF 224    160    16N    28W    36    Seward    701906

107

   SWF 225    160    16N    27W    31    Seward    701907

108

   SWF 226    160    16N    27W    31    Seward    701908

109

   SWF 227    160    16N    27W    32    Seward    701909

110

   SWF 228    160    16N    27W    32    Seward    701910

111

   SWF 229    160    16N    27W    33    Seward    701911

112

   SWF 230    160    16N    27W    33    Seward    701912

113

   SWF 231    160    16N    27W    34    Seward    701913

 

-42-


 

[Exhibit C continued]

SAL CLAIMS

SALMON BAY PROJECT, ALASKA

All unpatented Federal lode claims located in the Petersburg Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   SAL 1    20    64S    78E    11    Copper River    92532

2

   SAL 2    20    64S    78E    11    Copper River    92533

3

   SAL 3    20    64S    78E    10    Copper River    92534

4

   SAL 4    20    64S    78E    11    Copper River    92535

5

   SAL 5    20    64S    78E    10    Copper River    92536

6

   SAL 6    20    64S    78E    11    Copper River    92537

7

   SAL 7    20    64S    78E    11    Copper River    92538

8

   SAL 8    20    64S    78E    10    Copper River    92539

9

   SAL 9    20    64S    78E    11    Copper River    92540

10

   SAL 10    20    64S    78E    11    Copper River    92541

11

   SAL 11    20    64S    78E    11    Copper River    92542

12

   SAL 12    20    64S    78E    10    Copper River    92543

13

   SAL 13    20    64S    78E    11    Copper River    92544

14

   SAL 14    20    64S    78E    11    Copper River    92545

15

   SAL 15    20    64S    78E    11    Copper River    92546

16

   SAL 16    20    64S    78E    12    Copper River    92547

17

   SAL 17    20    64S    78E    14    Copper River    92548

18

   SAL 18    20    64S    78E    13    Copper River    92549

19

   SAL 19    20    64S    78E    13    Copper River    92550

20

   SAL 20    20    64S    78E    14    Copper River    92551

21

   SAL 21    20    64S    78E    13    Copper River    92552

22

   SAL 22    20    64S    78E    14    Copper River    92553

23

   SAL 23    20    64S    78E    13    Copper River    92554

24

   SAL 24    20    64S    78E    13    Copper River    92555

25

   SAL 25    20    64S    78E    14    Copper River    92556

26

   SAL 26    20    64S    78E    13    Copper River    92557

27

   SAL 27    20    64S    78E    13    Copper River    92558

28

   SAL 28    20    64S    78E    14    Copper River    92559

29

   SAL 29    20    64S    78E    13    Copper River    92560

30

   SAL 30    20    64S    78E    13    Copper River    92561

31

   SAL 31    20    64S    78E    14    Copper River    92562

32

   SAL 32    20    64S    78E    13    Copper River    92563

33

   SAL 33    20    64S    78E    13    Copper River    92564

34

   SAL 34    20    64S    78E    13    Copper River    92565

35

   SAL 35    20    64S    78E    14    Copper River    92566

36

   SAL 36    20    64S    78E    14    Copper River    92567

37

   SAL 37    20    64S    78E    13    Copper River    92568

38

   SAL 38    20    64S    78E    13    Copper River    92569

39

   SAL 39    20    64S    78E    13    Copper River    92570

40

   SAL 40    20    64S    78E    14    Copper River    92571

 

-43-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

41

   SAL 41    20    64S    78E    14    Copper River    92572

42

   SAL 42    20    64S    78E    13    Copper River    92573

43

   SAL 43    20    64S    78E    13    Copper River    92574

44

   SAL 44    20    64S    78E    13    Copper River    92575

45

   SAL 45    20    64S    78E    14    Copper River    92576

46

   SAL 46    20    64S    78E    14    Copper River    92577

47

   SAL 47    20    64S    78E    13    Copper River    92578

48

   SAL 48    20    64S    78E    13    Copper River    92579

49

   SAL 49    20    64S    78E    13    Copper River    92580

50

   SAL 50    20    64S    78E    23    Copper River    92581

51

   SAL 51    20    64S    78E    23    Copper River    92582

52

   SAL 52    20    64S    78E    24    Copper River    92583

53

   SAL 53    20    64S    78E    24    Copper River    92584

54

   SAL 54    20    64S    78E    24    Copper River    92585

55

   SAL 55    20    64S    78E    23    Copper River    92586

56

   SAL 56    20    64S    78E    23    Copper River    92587

57

   SAL 57    20    64S    78E    24    Copper River    92588

58

   SAL 58    20    64S    78E    24    Copper River    92589

59

   SAL 59    20    64S    78E    24    Copper River    92590

60

   SAL 60    20    64S    78E    23    Copper River    92591

61

   SAL 61    20    64S    78E    23    Copper River    92592

62

   SAL 62    20    64S    78E    24    Copper River    92593

63

   SAL 63    20    64S    78E    24    Copper River    92594

64

   SAL 64    20    64S    78E    24    Copper River    92595

65

   SAL 65    20    64S    78E    23    Copper River    92596

66

   SAL 66    20    64S    78E    23    Copper River    92597

67

   SAL 67    20    64S    78E    24    Copper River    92598

68

   SAL 68    20    64S    78E    24    Copper River    92599

69

   SAL 69    20    64S    78E    24    Copper River    92600

70

   SAL 70    20    64S    78E    25    Copper River    92601

71

   SAL 71    20    64S    78E    25    Copper River    92602

72

   SAL 72    20    64S    78E    25    Copper River    92603

73

   SAL 73    20    64S    79E    30    Copper River    92604

74

   SAL 74    20    64S    78E    25    Copper River    92605

75

   SAL 75    20    64S    78E    25    Copper River    92606

76

   SAL 76    20    64S    78E    25    Copper River    92607

77

   SAL 77    20    64S    79E    30    Copper River    92608

78

   SAL 78    20    64S    78E    25    Copper River    92609

79

   SAL 79    20    64S    78E    25    Copper River    92610

80

   SAL 80    20    64S    78E    25    Copper River    92611

81

   SAL 81    20    64S    79E    30    Copper River    92612

82

   SAL 82    20    64S    78E    25    Copper River    92613

83

   SAL 83    20    64S    78E    25    Copper River    92614

84

   SAL 84    20    64S    78E    25    Copper River    92615

85

   SAL 85    20    64S    79E    30    Copper River    92616

86

   SAL 86    20    64S    79E    30    Copper River    92617

 

-44-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

87

   SAL 87    20    64S    78E    25    Copper River    92618

88

   SAL 88    20    64S    78E    25    Copper River    92619

89

   SAL 89    20    64S    78E    25    Copper River    92620

90

   SAL 90    20    64S    79E    30    Copper River    92621

91

   SAL 91    20    64S    78E    25    Copper River    92622

92

   SAL 92    20    64S    78E    25    Copper River    92623

93

   SAL 93    20    64S    78E    25    Copper River    92624

94

   SAL 94    20    64S    79E    30    Copper River    92625

95

   SAL 95    20    64S    78E    25    Copper River    92626

96

   SAL 96    20    64S    78E    25    Copper River    92627

97

   SAL 97    20    64S    78E    25    Copper River    92628

98

   SAL 98    20    64S    79E    30    Copper River    92629

99

   SAL 99    20    64S    79E    30    Copper River    92630

100

   SAL 100    20    64S    78E    25    Copper River    92631

101

   SAL 101    20    64S    78E    25    Copper River    92632

102

   SAL 102    20    64S    78E    25    Copper River    92633

103

   SAL 103    20    64S    79E    30    Copper River    92634

104

   SAL 104    20    64S    79E    31    Copper River    92635

105

   SAL 105    20    64S    79E    31    Copper River    92636

106

   SAL 106    20    64S    79E    31    Copper River    92637

107

   SAL 107    20    64S    79E    31    Copper River    92638

108

   SAL 108    20    64S    79E    31    Copper River    92639

109

   SAL 109    20    64S    79E    31    Copper River    92640

110

   SAL 110    20    64S    79E    31    Copper River    92641

111

   SAL 111    20    64S    79E    32    Copper River    92642

112

   SAL 112    20    64S    79E    31    Copper River    92643

113

   SAL 113    20    64S    79E    31    Copper River    92644

114

   SAL 114    20    64S    79E    31    Copper River    92645

115

   SAL 115    20    64S    79E    32    Copper River    92646

116

   SAL 116    20    64S    79E    31    Copper River    92647

117

   SAL 117    20    64S    79E    31    Copper River    92648

118

   SAL 118    20    64S    79E    31    Copper River    92649

119

   SAL 119    20    64S    79E    32    Copper River    92650

120

   SAL 120    20    64S    79E    31    Copper River    92651

121

   SAL 121    20    64S    79E    31    Copper River    92652

122

   SAL 122    20    64S    79E    31    Copper River    92653

123

   SAL 123    20    64S    79E    32    Copper River    92654

124

   SAL 124    20    64S    79E    31    Copper River    92655

125

   SAL 125    20    64S    79E    31    Copper River    92656

126

   SAL 126    20    64S    79E    31    Copper River    92657

127

   SAL 127    20    65S    79E    1    Copper River    92658

 

-45-


 

[Exhibit C continued]

GB, MC and SR CLAIMS

STONE ROCK BAY PROJECT, ALASKA

All unpatented Federal lode a claims located in the Ketchikan Recording District, Alaska

 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

1

   GB 1    20    81S    90E    21    Copper River    92522

2

   GB 2    20    81S    90E    21    Copper River    92523

3

   GB 3    20    81S    90E    21    Copper River    92524

4

   GB 4    20    81S    90E    21    Copper River    92525

5

   GB 5    20    81S    90E    28    Copper River    92526

6

   GB 6    20    81S    90E    28    Copper River    92527

7

   GB 7    20    81S    90E    28    Copper River    92528

8

   GB 8    20    81S    90E    28    Copper River    92529

9

   GB 9    20    81S    90E    28    Copper River    92530

10

   GB 10    20    81S    90E    28    Copper River    92531

11

   MC 1    20    82S    90E    4    Copper River    92483

12

   MC 2    20    82S    90E    4    Copper River    92484

13

   MC 3    20    82S    90E    4    Copper River    92485

14

   MC 4    20    82S    90E    4    Copper River    92486

15

   MC 5    20    82S    90E    4    Copper River    92487

16

   MC 6    20    82S    90E    4    Copper River    92488

17

   MC 7    20    82S    90E    4    Copper River    92489

18

   MC 8    20    82S    90E    4    Copper River    92490

19

   MC 9    20    82S    90E    4    Copper River    92491

20

   MC 10    20    82S    90E    4    Copper River    92492

21

   MC 11    20    82S    90E    4    Copper River    92493

22

   MC 12    20    82S    90E    4    Copper River    92494

23

   MC 13    20    82S    90E    4    Copper River    92495

24

   MC 14    20    82S    90E    4    Copper River    92496

25

   MC 15    20    82S    90E    4    Copper River    92497

26

   SR 1    20    82S    90E    7    Copper River    92498

27

   SR 2    20    82S    90E    8    Copper River    92499

28

   SR 3    20    82S    90E    7    Copper River    92500

29

   SR 4    20    82S    90E    8    Copper River    92501

30

   SR 5    20    82S    90E    7    Copper River    92502

31

   SR 6    20    82S    90E    8    Copper River    92503

32

   SR 7    20    82S    90E    8    Copper River    92504

33

   SR 8    20    82S    90E    7    Copper River    92505

34

   SR 9    20    82S    90E    8    Copper River    92506

35

   SR 10    20    82S    90E    8    Copper River    92507

36

   SR 11    20    82S    90E    7    Copper River    92508

37

   SR 12    20    82S    90E    8    Copper River    92509

38

   SR 13    20    82S    90E    8    Copper River    92510

39

   SR 14    20    82S    90E    7    Copper River    92511

40

   SR 15    20    82S    90E    8    Copper River    92512

 

-46-


 

No.

  

Claim Name

   Acres    Township    Range    Section   

Meridian

   AA #

41

   SR 16    20    82S    90E    8    Copper River    92513

42

   SR 17    20    82S    90E    7    Copper River    92514

43

   SR 18    20    82S    90E    8    Copper River    92515

44

   SR 19    20    82S    90E    8    Copper River    92516

45

   SR 20    20    82S    90E    7    Copper River    92517

46

   SR 21    20    82S    90E    8    Copper River    92518

47

   SR 22    20    82S    90E    8    Copper River    92519

48

   SR 23    20    82S    90E    17    Copper River    92520

49

   SR 24    20    82S    90E    17    Copper River    92521

 

-47-