11. COMMITMENTS AND CONTINGENCIES

The Company's uranium recovery operations are subject to federal and state regulations for the protection of the environment, including water quality. These laws are constantly changing and generally becoming more restrictive. The ongoing costs of complying with such regulations have not been significant to the Company's annual operating costs. Future closure and reclamation costs are provided for as each pound of uranium is produced on a unit-of-production basis. The Company reviews its reclamation obligations each year and determines the appropriate unit charge. The Company also evaluates the status of current environmental laws and their potential impact on their accrual for costs. The Company believes its operations are in compliance with current environmental regulations.

The Company is from time to time involved in various legal proceedings of a character normally incident to its business. Management believes it has meritorious defenses in all such proceedings and is not aware of any material adverse effect on the Company's financial condition or results of operations from such proceedings.

			Payment Due by Period

Operating Leases	Total		Less than 1 year		1 - 3 years		4 - 5 years		More than 5 years
Office space		1,072,471		273,307		708,733		90,431		—


	$	1,072,471	$	273,307	$	708,733	$	90,431	$	—

Temporary Access Agreement

In July 2012, the Company through its subsidiary HRI, and the Nation entered into a Temporary Access Agreement (the "Agreement"). Under the terms of the Agreement, HRI and its contractors may now access Section 8 through either Section 9 or 17 to support site visits by the NRC and to satisfy other administrative permitting and licensing requirements related to the Churchrock project. The Agreement does not extend to construction-related or earth-disturbing activities. HRI has further agreed to remediate any radioactive contamination now existing on Sections 8 and 17 surface lands created by prior operators prior to commencing ISR operations on Section 8. Under the terms and for the duration of this Agreement, HRI has agreed to the jurisdiction of the Nation with respect to the subject matter of the Agreement. HRI and the Nation are now actively engaged in settlement negotiations in order to determine effective compliance with the remediation requirement included in the Agreement, including applicable clean-up standards, enforcement, and waste disposal, and to address longer-term surface access to the entire licensed Churchrock project site consistent with applicable law. If further agreement with the Nation is not reached, our development plan could be materially adversely affected.

Dispute with Thomas Ehrlich

On August 2, 2013, Thomas H. Ehrlich, the Company's former chief financial officer, filed a complaint against the Company in the District Court of Denton County, Texas, Cause No. 2013-61011-393. The complaint alleges that the Company breached a compensation agreement between the Company and Mr. Ehrlich that provided for certain payments to Mr. Ehrlich upon certain change in control events. On August 13, 2013, the Company filed a general denial of the allegations contained in the complaint. On November 4, 2013, Mr. Ehrlich moved for partial summary judgment and the Company cross-moved on November 22, 2013. On December 13, 2013, the District Court heard the parties' motions, denied summary judgment for both parties, and directed discovery to commence. The Judge also ruled that Mr. Ehrlich was entitled to his litigation costs and expenses, including attorney fees, under the indemnification provisions of the compensation agreement, but he did not award any specific costs, expenses or fees. The Company intends to vigorously defend any assertions related to the lawsuit. The Company estimates the lawsuit could take approximately one year to be resolved and recognized a possible loss contingency of $285,000 as of December 31, 2013.

On January 28, 2014, the Company invoked the Texas statutory settlement procedures, and, thereafter, a series of confidential settlement communications began between the Company and Mr. Ehrlich. On February 27, 2014, the Company and Mr. Ehrlich participated in a confidential mediation session designed to settle the case. Confidential settlement negotiations are continuing.

In connection with our May 2008 private placement, the Company executed a registration rights agreement pursuant to which the shares issued in the private placement were registered. The registration rights agreement provides for penalties in the event the registration statement fails to remain effective. At December 31, 2013, the Company's registration statement was and remains effective.

Compensation Agreements

The Company has entered into Compensation Agreements with the certain of the Executive Officers of the Company (the "Compensation Agreements"), that provide that, in the event of a change in control, such officers will have certain rights and benefits for a period of twenty-four months following such change in control. The Compensation Agreements provide that the executive's base salary payments shall be made on a monthly basis for the duration of the term and any incentive payments shall be paid annually until the obligation to make such payments expires.