14 1 0 C o m m it m ent s a nd c o nt i ng ent l i a bil i t ies a T h e C o mpa n y h a s e s ti ma t e d a n n u a l l e a s e c o mmit m e n ts for its c o r po r a te h e a d offic e o f a ppr ox ima te l y 3 0 0 w h ic h e xpi r e in 2 0 2 1 a n d c u r r e n t ope r a tin g l e a s e c ommi tm e n ts of 3 3 l on g t e r m op e r a tin g l e a s e c ommit me n ts o f 3 6 T h e C ompa n y a l s o h a s l a n d opti on a n d o th e r pa y me n ts of a pp r o xi ma te l y 8 0 du e i n 2 0 1 3 a n d 1 0 1 d u e b e t w e e n 2 0 1 4 a n d 2 0 1 5 b T h e C ompa n y s min i n g pr o pe r tie s a r e s u b je c t to a v a r i e ty of pr od u c tion N S R r oy a l tie s o r N e t Pr ofi t I n te r e s t N PI r oy a l t ie s is s u e d to th i r d pa r ti e s D u r in g th e th r e e a n d s ix mo n t h s e n de d J u n e 3 0 2 0 1 3 3 0 1 2 2 0 1 2 3 0 4 6 a n d 6 3 8 2 2 0 1 2 5 9 6 8 r e s p e c tiv e l y in r oy a l ty e xp e n s e w a s in c u r r e d a n d r e c or d e d in e a r n i n gs I n a ddi tion 1 1 2 0 1 2 n il of r oy a l ty e x pe n s e w a s in c u r r e d a n d r e c or de d i n e xpl or a t ion a n d e v a l u a tion a s s e ts c C a s h of 1 7 1 8 a t J u n e 3 0 2 0 1 3 D e c e mb e r 3 1 2 0 1 2 1 6 9 5 is c ol l a te r a l iz e d w ith a b a n k for ou ts ta n di n g l e tte r s o f c r e dit is s u e d d F r om tim e to tim e th e C om pa n y is s u e d fl ow th r ou gh s h a r e s to fin a n c e its on g oin g e xpl or a tio n a n d min e d e v e l op me n t p r og r a m I n 1 9 9 6 th e C om pa n y e n t e r e d i n to a fl ow th r ou gh fin a n c i n g a r r a n g e m e n t i n w h ic h it r e n ou n c e d to u n r e l a te d i n v e s tor s c e r ta in mi n e r a l de v e l opm e n t e xp e n ditu r e s i n 1 9 9 6 for ta x pu r pos e s in th e a mou n t of 1 9 8 5 0 f or tota l c a s h of 1 9 8 5 0 T h e mi n e r a l de v e l op me n t e x pe n ditu r e s w h ic h w e r e r e n ou n c e d to th e in v e s to r s w e r e b a s e d i n pa r t on i n d e p e n d e n t v a l u a tion s of c e r ta in r e l a te d mi n e r a l pr ope r ti e s C a n a da R e v e n u e A ge n c y C R A h a s c h a l l e n ge d c e r t a in of th os e v a l u a tion s a n d a c c or din gl y th e a mou n t r e n ou n c e d to th e i n v e s tor s T h e C o mpa n y ma y b e c o n ti n g e n tl y l ia b l e fo r c e r ta i n l os s e s or da ma ge s to th e in v e s t or s if a n y th a t ma y r e s u l t if C R A is u l tima te l y s u c c e s s fu l in its c h a l l e n ge s T h e dis pu t e h a s n ot b e e n a c tiv e s in c e 2 0 0 0