The Company is required to pay taxes in Mexico in order to maintain mining concessions owned by DynaMexico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions and are adjusted annually for inflation. Based on Managements recent business activities and current and forward plans and considering expenditures on mining concessions since 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMexico will have any difficulties meeting the minimum annual expenditures for the concessions ($388  $2,400 Mexican Pesos per hectare). DynaMexico retains sufficient carry-forward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). In addition to the surface rights held by DynaMexico pursuant to the Mining Act of Mexico and its Regulations ( Ley Minera y su Reglamento ), DynaMineras maintains access and surface rights to the SJG Project pursuant to the 20-year Land Lease Agreement. The 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracia was dated January 6, 2014 and continues through 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG and provides for annual lease payments by DynaMineras of $1,359,443 Pesos (approx. $72,000 USD), commencing in 2014. The Land Lease Agreement provides DynaMineras with surface access to the core resource areas of SJG (4,399 hectares) and allows for all permitted mining and exploration activities from the owners of the surface rights (Santa Maria Ejido community). The Company leases office space for its corporate headquarters in Irving, Texas. In September 2017, the Company entered into a sixty-six-month extension of the lease through 2023. As part of the agreement the Company received six months free rent as a finish out allowance. The Company capitalized the leasehold improvement costs and amortized them over the rent abatement period as rent expense The Company incurred rent expense of $86,011 and $71,399 for the office lease in the years ended December 31, 2018 and 2017, respectively. Future minimum lease obligations are as follow for the years ending December 31: YEAR AMOUNT 2019 $ 82,474 2020 $ 84,280 2021 $ 86,086 2022 $ 87,892 2023 $ 14,849 TOTAL $ 355,581 Other Contingencies The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. Damages Awarded to DynaMexico in Mexico Litigation On October 5, 2015, DynaResource de Mexico SA de C.V. (DynaMexico), was awarded in excess of $48 M USD (Forty-Eight Million Dollars) in damages from Goldgroup Resources, Inc. (the Goldgroup Damages) by virtue of a Sentencia Definitiva (the Definitive Sentence) issued by the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of Mexico (Tribunal Superior de Justicia del Distrito Federal), File number 1120/2014. The Definitive Sentence included the considerations and resolutions by the Court, and additional Resolutions were also ordered in favor of DynaMexico (together the Goldgroup Damages and the additional Resolutions are referred to as, the Oct. 5, 2015 Resolution). The October 5, 2015 Resolution is described in Part II, Item 1. Legal Proceedings. As of December 31, 2018, the decision remains under appeal. Litigation The Company believes that no material adverse change will occur as a result of the legal actions taken, and the Company further believes that there is little to no potential for the assessment of a material monetary judgment against the Company for legal actions it has filed in Mexico. Further, the Company believes there is no legal basis for which to conduct arbitration proceedings. (See Item 3. Legal Proceedings. And, see Item 7. Managements Discussion and Analysis of Financial Conditions and Results of Operations).