Lithium Lease Agreement Terms

Put this in ****nglish terms ‘ I hope you can appreciate that it has taken me a bit of time to get up to speed counter conversations with Brian, your initial offer, Brian's counter offer and your Having reviewed the documentation on the discussions so far and having discussed with family members, I submit the following as terms for a lease, with our rational for our terms following Lease term - 5 years Bonus Payment - $* per acre Rental - $* per acre per year of lease First right / option to negotiate an additional term to lease upon expiry of original lease. Royalty Rate - *% Royalty rate at well head (no deductions for transport, refine, disposal, etc) Royalty payments on a monthly basis Mineral to mined - Lithium Zone to be mined from - Wymark All other zones and minerals are excluded from the lease. The above are the main items with very little negotiating room, Other minor items in the lease will be addressed if we can reach an agreement on the above. Back in the *'s when Oil and Gas exploration was in its infancy, many land owners got trapped in bad lease situations. Lithium exploration is in its We do not see a lot of difference between Oil and Gas and Lithium production. While we understand that Lithium exploration is in its infancy, long lease duration is not a favourable situation for us. Tying up our land for 5 years is more than we would ever do for oil exploration. A lease for more than 5 years is out of the question. Once a lease is activated, the lease is no longer required and Royalty payment portion takes over. We will absolutely refuse to accept a royalty based on the royalty rate established by the Government. Governments notoriously undervalue the selling of leases and royalty payments in order to provide an economic gain. Prime example is typical Govt royalty rate for oil and gas at * to *%, when freehold rates are * to *%. Governments typically give breaks on Lease values and Royalty rate as an incentive to improve economic positions of the province or country. We, as a family, are not in a position to bolster or support the economy of either the province or country. Your proposal for us to pay transportation, refining costs with a *% royalty would leave us with absolutely nothing. We do not see a difference for Royalty payments for oil, gas or any other minerals retrieved from our property. If we receive *% for a $* of oil, we believe we should receive *% for I hope you can appreciate that it has taken me a bit of time to get up to speed counter conversations with Brian, your initial offer, Brian's counter offer and your Having reviewed the documentation on the discussions so far and having discussed with family members, I submit the following as terms for a lease, with our rational for our terms following Lease term - 5 years Bonus Payment - $* per acre Rental - $* per acre per year of lease First right / option to negotiate an additional term to lease upon expiry of original lease. Royalty Rate - *% Royalty rate at well head (no deductions for transport, refine, disposal, etc) Royalty payments on a monthly basis Mineral to mined - Lithium Zone to be mined from - Wymark All other zones and minerals are excluded from the lease. The above are the main items with very little negotiating room, Other minor items in the lease will be addressed if we can reach an agreement on the above. Back in the *'s when Oil and Gas exploration was in its infancy, many land owners got trapped in bad lease situations. Lithium exploration is in its We do not see a lot of difference between Oil and Gas and Lithium production. While we understand that Lithium exploration is in its infancy, long lease duration is not a favourable situation for us. Tying up our land for 5 years is more than we would ever do for oil exploration. A lease for more than 5 years is out of the question. Once a lease is activated, the lease is no longer required and Royalty payment portion takes over. We will absolutely refuse to accept a royalty based on the royalty rate established by the Government. Governments notoriously undervalue the selling of leases and royalty payments in order to provide an economic gain. Prime example is typical Govt royalty rate for oil and gas at * to *%, when freehold rates are * to *%. Governments typically give breaks on Lease values and Royalty rate as an incentive to improve economic positions of the province or country. We, as a family, are not in a position to bolster or support the economy of either the province or country. Your proposal for us to pay transportation, refining costs with a *% royalty would leave us with absolutely nothing. We do not see a difference for Royalty payments for oil, gas or any other minerals retrieved from our property. If we receive *% for a $* of oil, we believe we should receive *% for $* of lithium. Using the prospectus for one of the Viewfield Lithium projects: Startup cost pegged at $571M with operating costs of $40M per year. Payback of operating costs are pegged at *.1 years which provides a yearly return of $271M. The lifetime of the project is expected to be 23 years for a total return of $*.76B after startup and operational costs are deducted. A royalty payout of *% would be a paltry $*.8M. These numbers also fall in line with the Kindersley Project.

Saskatchewan

Is this a good deal or not and is it split between three people

Is the division of earning included in these lease terms