9. Accrued Expenses

Accrued expenses at September 30, 2012 and December 31, 2011 consisted of the following:

In July 2012, the Company placed a $4.67 million reclamation surety bond, through the Lexon Surety Group ("Lexon") with the State of Nevada's Bureau of Mining Regulation Reclamation ("BMRR"). The bond insures for the estimated costs required to safely reclaim the natural environment to the regulatory standards established by the State of Nevada's Division of Environmental Protection with the purposes of ensuring public safety, protecting the waters of the state, and providing for post mining land use. As part of the surety agreement, the Company agreed to pay a 2.5% annual bonding fee and has signed a corporate guarantee. The initial cash collateral percentage due to Lexon is 50% of the total state bond amount of $4.67 million. Other accrued expenses include $2.3 million or approximately 50% of the bonding requirement to be funded to Lexon by December 31, 2012 per the terms of the agreement.