NOTE 6 ? COMMITMENT AND CONTINGENCIES Mining Lease The Company is required under the terms of our property lease to make annual lease payments. The Company is also required to make annual claim maintenance payments to Federal Bureau of Land Management and to the county in which its property is located in order to maintain its rights to explore and, if warranted, to develop its property. If the Company fails to meet these obligations, it will lose the right to explore for gold on its property. The Company?s property lease is for an initial period of ten years from May 2007 and may be extended in five year increments for up to a total term of 99 years. The Company may terminate this lease at any time. Until production is achieved, the Company?s lease payments (deemed ?advance minimum royalties?) consist of an initial payment of $5,000, which was made upon the effectiveness of the lease, followed by annual payments according to the following schedule: Due Date of Advance Minimum Royalty Payment Amount of Advance Minimum Royalty Payment January 15, 2008 (paid) $ 10,000 January 15, 2009 (paid) $ 15,000 January 15, 2010 (paid) $ 30,000 January 15, 2011 (paid) $ 45,000 January 15, 2012 and annually thereafter during the term of the lease The greater of $60,000 or the dollar equivalent of 90 ounces of gold. In the event that the Company produces gold or other minerals from the leased Tempo claims, the Company?s lease payments will be the greater of (i) the advance minimum royalty payments according to the table above, or (ii) a production royalty equal to 4% of the gross sales price of any gold, silver, platinum or palladium that we recover plus 2% of the gross sales price of any other minerals that the Company recovers. The Company?s lease expressly states that we have no rights to any oil, gas, hydrocarbons and geothermal resources that may be found on the property. Under certain conditions, the lessor may elect to take its production royalty in cash rather than in kind. In the event that the Company produces gold or o