Section 4: RENEWAL OF LICENCE

Upon written application by the Companies prior to the expiration of the licence the Companies shall be entitled to the renewal of the Licence for a further period of one year under the same terms and conditions provided that the companies are not then in default under any of the terms and conditions of the Licence or this Agreement. The Companies are alternately entitled to receive a renewal of the Licence for a further period of five (5) years but under terms and conditions to be agreed upon. But the said renewal for a further five years will only be granted if the Companies have applied for a Mining Lease under Clause 5 of this Agreement.