APPENDIX "D" Contract No. AT(05-1)-737 For the purposes of this contract, the lands listed in paragraph 1 of this Appendix shall, in the aggregate, constitute one mining property, and the lands listed in paragraph of this Appendix shall, in the aggregate, constitute one mining property, for the purpose of determining those mining properties from which the Commission will be obligated to purchase during any year not more than one million (1,000,000) pounds of U30g in acceptable concentrate under the provisions of paragraph 3 of Article I of this contract. 1. The Contractor owns or controls the uranium mining rights with respect to the lands listed below in this paragraph 1, located in the Ambrosia Lake area of McKinley County, New Mexico, which lands and the uranium mining rights therein shall constitute one mining property hereunder. The Contractor agrees that during the term of this contract it will not, except as provided in paragraph 3 of this Appendix, dispose of or encumber, or permit such disposal or encumbrance of its right to prospect for, mine, and remove uranium-bearing ores from any of such lands. Section 28 Township 14 North, Range 9 West, N.M.P.M. Township 15 North, Range 11 West, N.M.P.M. 2. The Contractor owns or controls certain undivided interests in the uranium mining rights with respect to the lands listed below in this paragraph 2, located in the Ambrosia Lake area of McKinley County, New Mexico, which lands and the uranium mining rights therein shall constitute one mining property hereunder. The Contractor agrees to make every reasonable effort to obtain the interests in such properties which it does not own or control, or to obtain the dedication of the ores produced under such property interests, to processing in the plant. The Contractor agrees that during the term of this contract it will not, except as provided in paragraph 3 of this Appendix, permit its interests to be diminished. The Contractor retains the right, upon written notification to the Commission, to exchange any such interest for an interest of approximately equal value with respect to uranium ore in lands located within fifteen (15) miles of the plant, and such new properties or interests therein will be included in the listing of lands below. The Contractor may, upon written notification to the Commission, add other lands located within fifteen (15) miles of the plant, to the following listed lands: 3. The Contractor agrees that during the term of this contract it will retain all rights and interests it has as of the date of execution of this contract, in and to the lands listed in paragraphs 1 and 2 of this Appendix and the rights to prospect for, mine, remove, and receive uranium ore from said lands except as such rights should be lost to the Contractor by reason of defect of title, actions involving or arising out of contracts in respect of said rights, or other causes beyond the Contractor's control, or because the Contractor has determined that mining or further exploration on any of such lands will be economically unfeasible and therefore releases or disposes of such lands, receiving not more than nominal compensation for such release or disposal, provided, that at such time as the Contractor has developed three million four hundred thousand (3,400,000) tons of uranium ore in the mining property described in paragraph 2 of this Appendix, it may sell, transfer, or otherwise dispose of any of the lands described in said paragraph 2, provided that such disposal of lands shall not reduce the total measured ore reserves in the lands described in paragraph 2 which are retained by the Contractor, to less than three million four hundred thousand (3,400,000) tons of uranium ore, except as such tonnage may have been reduced by feeding ores produced from said mining properties to process in the plant during the term of this contract, and further provided, that the Contractor may sell or otherwise dispose of its interests in any or all of said lands listed in paragraph 2 hereof, provided that the uranium ores produced from the mining property described in paragraph 2 above during the term of this contract which make up any Appendix "D", continued part of the three million four hundred thousand (3,400,000) ton limitation set out above, are required under the terms of such disposal to be dedicated to processing in the plant under the terms of this contract. Nothing herein shall be construed to prohibit the Contractor from placing a mortgage on any of said lands or any of the lands listed in paragraph 1 of this Appendix, for the purpose of obtaining funds for use in carrying out the provisions of this contract. The Contractor agrees to notify the Commission in writing immediately of the loss, transfer, or disposition of any of said lands. Should any ores produced from the mining property described in paragraph 2 of this Appendix be processed in uranium ore processing plants other than that of the Contractor during the term of this contract, the Commission's obligation to purchase U308 in concentrate produced in the plant from ores mined from said properties during the year in which such ores are processed in other plants, shall be reduced by an amount equal to the amount of U308 which would have been produced from such ores if such ores had been processed in the plant, provided, that the amount of such reduction shall in no event exceed five hundred thousand (500,000) pounds of U308. For the purposes of this paragraph, measured uranium ore reserves developed in the mining properties will be deposits of uranium-bearing materials amenable to the plant processing system, as determined and measured on the following basis: Blocked out by generally acceptable drilling and/or mine Maximum lateral projection of ore from any ore intersection to be one hundred (100) feet. Minimum thickness and grade of any ore intersection to be four feet and 0.15% U308 or its equivalent uranium content in a lesser thickness. Minimum cubic footage per ton to be sixteen (16). Grade to be derived from chemical assays or generally accept- Aggregate at least twenty thousand (20,000) tons per one APPENDIX "E" Contract No. AT(05-1)-737 The sum of Two Hundred and Twenty-five Thousand Dollars ($225,000.00) to be included in the Contractor's applicable investment in plant and equipment, as set forth in paragraph 6.b. of Article V of this contract, shall consist of full and complete reimbursement for the following: 6. Payroll expenses incurred prior to the effective - i |