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FIRST AMENDMENT TO LETTER AGREEMENT

This First Amendment to the Letter Agreement dated November 22, 2006 between
Searchlight Minerals Corp. (“SMC”), Verde River Iron Company, LLC (“VRIC”),
Harry B. Crockett (“Crockett”) and Gerald A. Lembas (“Lembas”) (the "Letter
Agreement") is made and entered into effective as of the 15th day of February,
2007, between SMC, VRIC, Crockett and Lembas.

WHEREAS:

A. SMC, VRIC, Crockett and Lembas entered into the Letter Agreement whereby SMC
agreed to acquire Transylvania International, Inc. (“TI”), a wholly owned
subsidiary of VRIC, upon the terms and conditions set forth in the Letter
Agreement.

B. Pursuant to the terms of the Letter Agreement, VRIC was to retain the
following assets (the “Assets”):

  (i)

Several parcels of vacant land comprising approximately Six Hundred (600) acres,
commonly described as Yavapai County Assessor Parcel Numbers:

  400-01-007E   400-02-001   400-01-007F   400-05-017D   400-06-001Y  
400-05-006A   400-06-002C   400-05-013F   400-05-013G   400-05-001E  
400-05-001F

  (ii)

A commercial building located at 919 Main Street, Clarkdale, commonly described
as Yavapai County Assessor Parcel Number ###-##-####.

C. VRIC has now agreed to sell the Assets to SMC in consideration of which SMC
has agreed to pay an additional $100,000 in cash to VRIC and to issue an
additional 825,000 shares of the common stock of SMC to VRIC or VRIC’s nominees.

D. SMC, VRIC, Crockett and Lembas have agreed to amend the terms of the Letter
Agreement on the terms and conditions set forth in this agreement.

NOW, THEREFORE, in consideration of covenants and agreements set out herein and
for other good and valuable consideration, the parties agree to amend the terms
of the Letter Agreement as follows:

1.

Definitions. Except as otherwise set out herein, capitalized terms used in this
Agreement shall have the same meaning as specified in the Letter Agreement.

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2.

Amendment. The Letter Agreement is hereby amended as follows:

  (i) Section 3(a) of the Letter Agreement is replaced in its entirety with the
following:           “(a) pay $10,100,000 in cash to VRIC; and”           (ii)
Section 3(b) of the Letter Agreement is replaced in its entirety with the
following:           “(b) issue to VRIC or its designates 16,825,000 shares (the
SMC Shares) of the common stock of SMC, subject to applicable exemptions; and.”

(iii)

Section 7 of the Letter Agreement is deleted in its entirety; and

      (iv)

Schedule “B” of the Letter Agreement is deleted in its entirety.

      3.

No Other Modification. The parties confirm that the terms, covenants and
conditions of the Letter Agreement remain unchanged and in full force and
effect, except as modified by this Agreement.

      4.

Indemnity. VRIC, Crockett and Lembas shall indemnify, defend and hold harmless
SMC and Clarkdale Minerals LLC (“SMC Sub”) from and against any and all costs,
expenses, losses, damages and liabilities (including attorneys’ fees and
expenses) incurred by SMC Sub or TI in respect of any federal, state, local,
foreign and other taxes, charges, fees, duties, levies, penalties or other
assessments, including, without limitation, income, gross receipts, excise,
profits, value added, real and personal property, sales, use, transfer,
severance, stamp, occupation or other taxes, imposed by any government authority
and shall include any interest penalties or additions to tax attributable to any
of the foregoing, whether disputed or not, owing or assessed in the future in
respect of matters up to the date hereof. This Section 4 shall survive closing
and the merger of TI with SMC Sub on February 15, 2007, with SMC Sub as the sole
surviving corporation, and continue until the fourth anniversary of the closing.

      5.

Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall constitute an original, but all of which, when taken together,
shall constitute but one instrument, and shall become effective when one or more
counterparts have been signed by each party hereto and delivered to the other
parties.

      6.

Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

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7.

Entire Agreement. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject hereof.

IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement
as of the date first written above.

SEARCHLIGHT MINERALS CORP           /s/ Ian McNeil     Per: Ian McNeil    
President                 VERDE RIVER IRON COMPANY, LLC.           /s/ Harry B.
Crockett     Per: Harry B. Crockett     Manager                 /s/ Harry B.
Crockett   /s/ Gerald A. Lembas Harry B. Crockett   Gerald A. Lembas

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