Exhibit 10.1

AMENDMENT TO MINING LEASE AND AGREEMENT

This Amendment to Mining Lease and Agreement is entered into this 15th day of
February, 2006 by and between Sunshine Precious Metals, Inc., a Delaware
corporation (hereinafter referred to as “Sunshine”) and Sterling Mining Company,
an Idaho corporation (hereinafter referred to as “Sterling”).

RECITALS:

 

  A. Sterling and Sunshine entered into a Mining Lease and Agreement
(hereinafter “Lease”) with an effective date of June 6, 2003; and,

 

  B. Section 9.3.1 of said Lease provided that if Sterling increases its
authorized capital and subsequently offers by applicable exemption additional
common shares of Sterling, Sunshine would have certain rights to purchase an
amount of exempted placement at the same cost offered to the other offerees;
and,

 

  C. Sterling and Sunshine desire to amend Section 9.3.1 to provide for
additional common stock to be transferred from Sterling to Sunshine; and,

 

  D. Sterling and Sunshine also desire to clarify Sterling’s right to use of
tailings ponds, including the ConSil tailings impoundment pond and provide
consideration for said clarification.

NOW THEREFORE in consideration for the mutual covenants and conditions contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

 

1. That Section 9.3.1 of the Lease shall be amended to read as follows:

“9.3.1 As additional consideration, Sterling shall also transfer 100,000 shares
of Sterling restricted common stock to Sunshine or its assignee. Said transfer
shall be subject to all SEC rules, regulations and restrictions.”

 

2. As consideration for the Amendment to Section 9.3.1, Sterling shall pay
Sunshine Fifty Thousand Dollars ($50,000.00) within thirty (30) days of
execution of this Amendment.

 

3. In Section 3.5 of the Lease, Sterling was allowed the right to use certain
areas retained by Sunshine, including but not limited to use of tailings ponds.
Sunshine, in previous agreements with Formation Capital (now Formation Chemical)
retained certain rights with respect to the tailings impoundment ponds at Big
Creek. It is hereby confirmed that Sunshine assigned to Sterling, as a part of
the Lease, Sterling’s rights to use the Big Creek Pond, as said right was
retained by Sunshine. Sunshine agrees to execute a notice of assignment to be
prepared by Sterling, Sunshine, at the Effective Date of the Lease, also owned
the ConSil tailings impoundment pond and granted Sterling the right to use the
pond. See Sections 1.3, 3.5 and Exhibit “D-1”.

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  3.1 Sterling and Sunshine hereby agree that Sterling may use the ConSil
tailings impoundment pond for the discharge of any tailings which are generated
from the mining of ore from the ConSil and/or Sunshine Mine or any ores mined
from the Property the subject of the Lease. This right shall survive termination
of the Lease in the event Sterling exercises its Option to Purchase the
Property.

 

  3.2 As consideration for the clarification set forth in Section 3.1, Sterling
shall transfer 100,000 shares of Sterling’s restricted common stock to Sunshine
or its assignee and said transfer shall be subject to all SEC rules, regulations
and restrictions.

 

4. American Reclamation, Inc. (ARI) hereby consents and approves of this
Amendment to the Lease.

 

5. Diversified Machine Technology, Inc., a Nevada corporation (DMT) also
consents and approves this Amendment to the Lease. DMT is the assignee of
Sunshine and/or ARI for some of the property, or an interest therein, the
subject of the Lease.

 

6. All other terms and conditions in the Lease shall remain in full force and
effect.

IN WITNESS WHEREOF the parties hereto have executed this Amendment to Mining
Lease and Agreement on the date set forth below.

DATED this          day of                 , 2006.

 

SUNSHINE PRECIOUS METALS, INC. By:   /s/ Robert Mori   Robert Mori Title:  
President STERLING MINING COMPANY By:   /s/ Raymond DeMotte   Raymond DeMotte
Title:   President AMERICAN RECLAMATION, INC. By:   /s/ Robert Mori   Robert
Mori Title:   President

 

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DIVERSIFIED MACHINE TECHNOLOGY, INC. By:      

Printed Name:      

Title:      

 

STATE OF

  _________________________   )     : ss.

COUNTY OF 

  _________________________   )

On this          day of                     , 2006, before me the undersigned, a
Notary Public in and for the state aforesaid, personally appeared ROBERT MORI,
known or identified to me to be the President of SUNSHINE PRECIOUS METALS, INC.,
and he executed the foregoing instrument on behalf of said corporation, and
acknowledged to me that such corporation executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand an affixed my Notarial seal the
day and year in this certificate first above written.

 

_____________________________________________

Notary Public in and for the State of  _______________

Residing at:  __________________________________

My Commissions expires:  _______________________

 

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STATE OF

  _________________________   )     : ss.

COUNTY OF 

  _________________________   )

On this          day of                     , 2006, before me the undersigned, a
Notary Public in and for the state aforesaid, personally appeared RAYMOND De
MOTTE, known or identified to me to be the President of STERLING MINING COMPANY,
and he executed the foregoing instrument on behalf of said corporation, and
acknowledged to me that such corporation executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand an affixed my Notarial seal the
day and year in this certificate first above written.

 

_____________________________________________

Notary Public in and for the State of  _______________

Residing at:  __________________________________

My Commissions expires:  _______________________

 

STATE OF

  _________________________   )     : ss.

COUNTY OF

  _________________________   )

On this          day of                     , 2006, before me the undersigned, a
Notary Public in and for the state aforesaid, personally appeared ROBERT MORI,
known or identified to me to be the President of AMERICAN RECLAMATION, INC., and
he executed the foregoing instrument on behalf of said corporation, and
acknowledged to me that such corporation executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand an affixed my Notarial seal the
day and year in this certificate first above written.

 

_____________________________________________

Notary Public in and for the State of  _______________

Residing at:  __________________________________

My Commissions expires:  _______________________

 

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STATE OF

  _________________________   )     : ss.

COUNTY OF 

  _________________________   )

On this          day of                     , 2006, before me the undersigned, a
Notary Public in and for the state aforesaid, personally appeared
                    , known or identified to me to be the                     
of DIVERSIFIED MACHINE TECHNOLOGY, INC., and he executed the foregoing
instrument on behalf of said corporation, and acknowledged to me that such
corporation executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand an affixed my Notarial seal the
day and year in this certificate first above written.

 

_____________________________________________

Notary Public in and for the State of  _______________

Residing at:  __________________________________

My Commissions expires:  _______________________

 

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NOTICE OF ASSIGNMENT

Notice is hereby provided that Sunshine Precious Metals, Inc., (Sunshine)
entered into a Mining Lease and Agreement (Lease) with Sterling Mining Company
(Sterling) on June 6, 2003.

Pursuant to the Lease Sterling acquired and is assigned Sunshine’s rights to use
the Big Creek tailings impoundment ponds, as said right was retained in
Section 3.19 of the agreement between Sunshine and Formation Capital Corporation
U.S. (now Formation Chemical) dated August 16, 2001. The assignment to Sterling
Sunshine is subject to all the terms and conditions set forth in Section 3.19.

DATED this 25th day of January, 2006.

 

SUNSHINE PRECIOUS METALS, INC. By:   /s/ Robert Mori   Robert Mori Title:  
President

 

STATE OF

  _________________________   )     : ss.

COUNTY OF

  _________________________   )

On this          day of                     , 2006, before me the undersigned, a
Notary Public in and for the state aforesaid, personally appeared ROBERT MORI,
known or identified to me to be the President of SUNSHINE PRECIOUS METALS, INC.,
and he executed the foregoing instrument on behalf of said corporation, and
acknowledged to me that such corporation executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand an affixed my Notarial seal the
day and year in this certificate first above written.

 

_____________________________________________

Notary Public in and for the State of  _______________

Residing at:  __________________________________

My Commissions expires:  _______________________

 

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