ThompsonCreek METALS COMPANY INC

 

 

METALS  COMPANY  INC

 

 

April 21, 2011

 

VIA EMAIL

 

U.S. Energy Corp.

877 North 8111  West

Riverton, WY 82501

Steve Youngbauer, General Counsel, ***@***

 

 

Dear Messrs. Larsen and Youngbauer:

 

Reference is made to that certain Exploration, Development and Mine Operating Agreement (the "Agreement") dated as of August 19, 2008, by and between U.S. Energy Corp. and Mt. Emmons Moly Company ("MEMCO").   All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement.

 

In accordance with Section 6.3(b) of the Agreement, MEMCO hereby terminates the Agreement.  MEMCO hereby acknowledges its obligation to fulfill its obligations set forth in Section 6.4 of the Agreement.  MEMCO also acknowledges that, pursuant to Section 6.l(b) of the Agreement, USE is entitled to all Advance Payments and interest, if any, remaining in escrow.

 

USE hereby acknowledges and agrees that, other than the obligation to fulfill its obligations under Section 6.4 of the Agreement, MEMCO shall have no further obligations to USE under the Agreement.

 

 

Best regards,

 

 

/s/Kevin Loughrey

 

Kevin Loughrey

President and CEO

Mt. Emmons Moly Company

 

 

U.S. Energy Corp.

April 21, 2011

Page Two

 

 

 

Agreed and acknowledged:

 

 

 

/s/Robert Scott Lorimer

Name:  Robert Scott Lorimer

Title:  CFO/V.P. Finance

Date:  4/21/11

Davis Graham & Stubbs LLP

1550 Seventeenth   St., Suite 500

Denver, CO 80206

Attention:  Scot Anderson, Esq.,  ***@***

 

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