Section 4: RENEWAL OF LICENCE

Upon written application by the Companies not later than six months prior to the expiration of the licence the Companies shall be entitled to the renewal of the licence for a further period of two years from and after such expiration date upon revised terms and cond tions provided that the Companies are not then in default under any of the terms and conditions of the Licence for this Agreement. But the said renewal for a further two years will only be granted if the Companies have applied foran Oil mining Lease under this Agree ment. Ifatthe end of the exploration period no commercial exploitable field shall have been discovered, this Agreement shall be deemed to have terminated. 5 MINING LEASE (1)The Companies, observing and performing the terms and condi tions herein shall have a right at anytime during the tern of any exploration licence issued pursuant to this Agreement or any renewal thereof upon written request to the grant, of an oil mining lease (hereinafter called the Lease ") covering all or any of the Exploration area as described in the Company's request. The provisions of the Mining (Mineral Oil) Act and Regulations relating to mining leases shall apply to the Lease except to the extent inconsistent with the special provisions incorporated in this Agreement. (2) The term of the Lease shall cover a period of twenty-five years from the date of issue. The Companies may by at least six (6) months previous notice in writing to the Government given prior to the expiration of the period of the Lease, request the Govern ment to grant them a new Lease for a further minimum term of five (5) years on terms and conditions to be agreed upon between iiit the parties. 3)The Government shall during the terms of the Lease indemnify the Companies against all claims by owners or occupiers (includ ing Chiefdom Councillors) in respect of the Mining Areas other than ciaims for compensation payable in accordance with the provisions of the Mining (Mineral Oil) Act and Regulations and terms and conditions pursuant to this Agreement. 4) The Companies may surrender any part or parts, but not all, 00,EZof the Mining Areas at any time during the term of the Lease by notice in writing to the Government to that effect and upon such surrender the lands surrendered shall cease to be comprised în or subject to the provisions of. the Lease. 6 No. 2 Exploration, Mining anl Phocessing Mineral (5) The Companies shall have the right to terminate the Lease at any time giving not less than (6) months notice in writing to the Government to that effect. (6) Upon the surrender or other termination of the Lease or of any other Lease granted hereunder, or of any portion thereof, the Companies shall be granted a period of not less than one (1) year, or such longer period as the Director of Mines may specify, immediately following such expiration or termination in which to remove all or any of their buildings, structures, piant, machinery equipment or effects from areas covered by the Lease or portion of the Lease surrendered or terminated. Any of the Companies' buildings, structures, plant, machinery or effects which are not removed in accordance with the provisions of this sub-clause (6) within the period stated herein, or such longer periods as the Director of Mines may specify, shall at the expiration of such period become the property of the Govern ment. Nothing in this sub-clause (6) contained shall prejudice the right of the Government to take possession of any building. plant machinery or other effects which are the property of the Companies and which on the expiration, surrender or other termination of any lease are left upon the area of such lease if the Companies are knowingly in default in payment due to the Government in respect of such lease.