NOTE 11 - COMMITMENTS AND CONTINGENCIES On October 11, 2007, we entered into a lease agreement with GoldLand, under which we leased its mineral rights on War Eagle Mountain. Under the lease, we are responsible for all mining activities on War Eagle Mountain, and we are obligated to pay GoldLand annual lease payments of $1,000,000, payable on a monthly basis, a monthly non-accountable expense reimbursement of $10,000 during any month in which minerals are mined from the leased premises, and a royalty of 15% of all amounts we receive from the processing of minerals mined from tailing piles on the premises or through shafts or adits located on the premises. The lease provides that lease payments must commence April 1, 2008. By agreement with GoldLand, we extended the commencement date to July 1, 2010, in which event the lease term was extended by an equal amount of time. In the first quarter of 2011, we amended the above-described lease with GoldLand. The amendment provided that the annual lease payments would be deferred for a fifteen month period from October 2010 to December 2011, and the term of the Lease would be extended for an equal amount of time. We remained obligated to pay any royalties or the nonaccountable fee that accrues during the deferral period. On June 4, 2012, we issued a convertible promissory note to JMJ Financial in the original principal amount of $315,000 (the "June Note"). On July 12, 2012, we issued a convertible promissory note to JMJ Financial in the original principal amount of $525,000 (the "July Note" and with the June Note, the "Notes"). The Notes are convertible into Class A Common Stock at a conversion price equal to 80% of the three lowest daily average trading prices of the Common Stock during the 15 trading days preceding the conversion. On November 30, 2012, JMJ submitted a conversion request for $54,079.20 of indebtedness under the June Note, which by JMJ's calculations would have required us to issue JMJ 3,000,000 shares of Class A Common Stock. On December 12, 2012, JMJ subm