<PAGE>

                                                                 EX. 10.5


                               EMPLOYMENT AGREEMENT


THIS AGREEMENT made as of the 22nd day of May 1997
BETWEEN:

                                ARCTIC PRECIOUS METALS, INC.
                                5501 Lakeview Drive
                                Kirkland, Washington 98033
                                (Fax No. 206-822-3552)
                                (hereinafter called "Arctic")

                                                       OF THE FIRST PART 

                                - and -

                                EDMUND SZOL

                                4206 E. Lake Sammamish Parkway S.E.
                                Issaquah, WA 88029
                                (hereinafter called the "Employee")

                                                       OF THE SECOND PART
                                - and -

                                ROYAL OAK MINES INC.
                                BCE Place, Suite 2500
                                181 Bay Street
                                Toronto, Ontario
                                M5J2T7
                                (Fax No. 416-365-1719)
                                (hereinafter called "Royal Oak")

                                                       OF THE THIRD PART

WHEREAS Arctic and the Employee wish to enter into a written agreement to 
record the terms and conditions of the Employee's continued employment with 
Arctic.

AND WHEREAS Arctic's parent company, Royal Oak, has agreed to assume certain 
obligations herein and to guarantee the performance by Arctic of its 
obligations to the Employee hereunder;

NOW THEREFORE, in consideration of the mutual covenants and agreements herein 
set out, the parties agree as follows:


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                                      2

1. EMPLOYMENT

Employee commenced employment with Arctic on February 27, 1995 and hereby 
accepts continued employment with Arctic from and after May 22, 1997 on the 
terms and subject to the conditions herein set forth.

2. DUTIES

Subject to instructions which may be received from time to time by the 
Employee from the Chief Executive Officer of Arctic, the Employee is 
hereafter engaged by Arctic as Executive Vice-President and Chief Operating 
Officer and in such other executive capacities as may be determined by the 
Chief Executive Officer of Arctic from time to time; and, in furtherance of 
his duties, the Employee shall do the following:

     (a) serve Arctic faithfully;

     (b) observe all policies of Arctic and perform all services associated 
with his position to the best of his ability;

     (c) devote substantially all of his working time and attention to the 
business of Arctic, except to the extent otherwise permitted by the Chief 
Executive Officer;

     (d) carry out all lawful instructions given to him by the Chief 
Executive Officer; and

     (e) endeavour to further the best interests of Arctic.

The Employee will be based in Kirkland, Washington but may from time to time 
be called upon and hereby agrees to perform services elsewhere.

3. TERM

The term of this Agreement shall commence May 22, 1997 and continue 
thereafter indefinitely unless earlier terminated in accordance with the 
provisions of this Agreement.

4. ANNUAL SALARY AND BONUS

In consideration for services rendered hereunder, Arctic shall pay to the 
Employee the following:

     (a) Salary: Employee's salary shall be US$200,000 per annum. Arctic 
agrees to review the salary at least every twelve (12)months and may make


<PAGE>

                                   3


adjustments, in its discretion, based on changes in market pay rates 
for jobs similar to the Employee's, cost of living and such other 
factors as Arctic deems relevant.

    (b) Bonus: Employee will be eligible for an annual bonus award to a 
maximum value of 50 percent of the salary unless Arctic, in its discretion, 
determines to pay a higher maximum value. The amount of the bonus is based on 
achievement of predetermined annual performance objectives set for the 
Employee by the Chief Executive Officer of Arctic and communicated to the 
Employee at the beginning of the year.

5. OTHER BENEFITS

In addition to the annual salary and bonus award provided in paragraph 4 of 
this Agreement, Arctic shall provide the following benefits to the Employee:

    (a) Fringe Benefits

Arctic shall furnish to the Employee at Arctic's expense such insurance 
(including, without limitation, medical, dental, vision, hospitalization, 
life and disability insurance), pension, and other benefits as are provided 
to senior executives by Arctic including participation in the Company's 
supplementary executive retirement plan and/or split dollar life insurance 
program.

    (b) Stock Options 

The Employee shall be entitled upon execution of this Agreement to receive 
65,000 new options to purchase shares of Arctic's parent company, Royal Oak, 
which options are exercisable following shareholder approval on a one-third 
(1/3) basis per year commencing on the first anniversary of the date of this 
Agreement and valid for a term of seven years with the price of those options 
fixed at US $2.50. The terms of the option shall be stipulated by Royal Oak 
in a separate Stock Option Agreement to be executed by Royal Oak and the 
Employee prior to any options being exercised thereunder. The Employee shall 
also be eligible for future grants of stock options for shares in Royal Oak 
on terms applicable to other senior officers of Arctic.

    (c) Business Expenses 

Arctic agrees to reimburse the Employee quarterly for all ordinary and 
necessary business expenses incurred by the Employee in the performance of 
his duties under this Agreement and the Employee shall provide vouchers and 
statements in respect of all such expenses in a timely manner.

    (d) Membership

Arctic agrees to provide the employee with one reasonably priced business

<PAGE>
                                       4

club membership for the purposes of personal and family use and for 
entertaining. All meals and sundry expenses for personal use will be to the 
account of the employee, with Arctic responsible for and paying all 
reasonable expenses incurred by the Employee for the purpose of entertaining 
clients and business associates.

    (e) Vacation

The Employee shall be entitled to four weeks of paid vacation during each 
full calendar year in which he is employed by Arctic pursuant to this 
Agreement, the timing of such vacation being mutually agreed upon between the 
Employee and Arctic. Vacation entitlement is non-cumulative and must be taken 
in the year in which it is earned unless otherwise agreed to in writing by 
the Chief Executive Officer.

    (f) Demand Loan

The Employee will be eligible to borrow from Arctic an aggregate maximum 
amount of US $90,000.00 interest free for the purpose of financing a home.  
Repayment of such loan in the amount of US $15,000.00 per year shall be 
guaranteed by the Employee and security, in the form of a second mortgage on 
the said home, shall be provided by the Employee to secure repayment of the 
loan to Arctic.  The terms of the loan shall be stipulated by Arctic in a 
separate written Loan Agreement to be executed by the Employee and Arctic 
prior to any advances being made thereunder and shall include a requirement 
for repayment of any amount then outstanding within 120 days of cessation of 
the Employee's employment hereunder for any reason whatsoever.


6. TERMINATION AND COMPENSATION AT TERMINATION

Notwithstanding anything herein contained to the contrary, this Agreement 
shall terminate in the following manner and the Employee shall be compensated 
as indicated:

    (a) Termination by Arctic for Cause 

This Agreement and the employment of the Employee may be terminated effective 
immediately for cause by the giving of written notice of dismissal by Arctic 
to the Employee.  As used herein, "cause" includes, but shall not be limited 
to, competing with or publicly denigrating the business of Arctic, 
unauthorized disclosure or use of Confidential Information in breach of 
paragraph 7 herein, repetition of conduct subject and subsequent to 
progressive discipline, gross misconduct or gross negligence by the Employee 
in the performance of his duties hereunder, the commission by the Employee of 
an act of theft, dishonesty, embezzlement or vandalism against Arctic, its 
parent Royal Oak or any of their respective related, associated or subsidiary 
companies, or the conviction of the Employee for

<PAGE>

                                   5


any indictable criminal offence or a felony or criminal offense of moral 
turpitude.

If this Agreement is terminated by Arctic for cause, the Employee shall 
continue to accrue and receive his salary and benefits through to the date of 
termination indicated in the notice of dismissal only.  No additional 
compensation or payment shall or need be made by Arctic to the Employee.

    (b) Termination by Arctic Without Cause

This Agreement and the employment of the Employee hereunder may be terminated 
by Arctic effective at any time without cause by giving the Employee at least 
24 months' prior written notice of termination.  In the event such notice is 
given, the employment of the Employee shall terminate on the date specified 
in the said notice.  In lieu of notice, Arctic may, in its discretion, 
terminate the employment of the Employee immediately by making payments to 
the Employee of all salary and bonus, equal to the salary and bonus received 
by the Employee with respect to the last completed fiscal year of Arctic 
prior to such notice and continuing (if possible, and in accordance with 
applicable statutory provisions, or if not, paying the present value of) all 
benefits which would have accrued to the benefit of the Employee to the date 
of termination had the period of notice of termination required by this 
Agreement been given.  The parties hereto acknowledge that this Agreement and 
the period of notice referred to herein are fair and reasonable in all the 
circumstances.

The Employee hereby acknowledges and agrees that, should Arctic or its parent 
company, Royal Oak, subsequently take over or otherwise acquire control of 
additional properties and/or projects which substantially increases the 
duties and responsibilities of the position of Executive Vice-President and 
Chief Operating Officer herein assumed, then any reassignment of the Employee 
by Arctic to the position of Chief Operating Officer of North American 
Operations or some like position, at a salary and benefits comparable to 
those held by the Employee prior to any such takeover or acquisition, will 
not constitute or be deemed to constitute constructive dismissal or 
termination of the employment of the Employee hereunder.

    (c) Termination of Change of Control

For purposes of this Agreement, "Change in Control" means any one or more of 
the following:

        (i) the acquisition by any person or group of related persons or 
persons acting jointly or in concert of more than 30% of the issued and 
outstanding common shares of Arctic or its parent company Royal Oak 
(calculated on a non-diluted basis), whether acquired in a single transaction 
or a series of transactions, whether or not one or more of those transactions 
occurred before the date hereof;
       
<PAGE>
                                       6


        (ii) the election to the Board of Directors of Arctic or its parent 
company Royal Oak of persons employed by or representing any one person or 
group of related persons or persons acting jointly or in concert and 
constituting 40 percent or more of the Board.

Should a Change of Control occur, the Employee's employment with Arctic or 
any successor corporation shall be hereby guaranteed to age 62 in such senior 
management or consulting capacity as may be determined by Arctic or its 
successor corporation at a salary and bonus equal to the salary and bonus 
received by the Employee with respect to the last completed fiscal year of 
Arctic, and benefits (on a fully vested basis) comparable to those accorded 
the Employee prior to such Change of Control.

Should the Employee elect to pursue such guaranteed employment to age 62, he 
hereby agrees to fully and capably perform all duties assigned to him by 
Arctic or its successor corporation and waives any subsequent right to or 
claim for constructive dismissal during the course of such employment and 
compensation on termination after age 62 beyond the minimum required by law.

Conversely, should the Employee elect to reject such guarantee of employment 
to age 62 and to terminate his employment with Arctic or its successor 
corporation within the period for election specified below, then the Employee 
shall be entitled to the compensation and benefit package outlined in 
subparagraph (b) above and shall be further given the right to immediately 
exercise all approved outstanding options, subject to confirmation of 
Exchange approval as specified in each Stock Option Agreement.

The Employee shall have three (3) months from the date of any Change of 
Control to make the election whether to pursue or reject the aforesaid 
guarantee of employment.

The parties hereto acknowledge that this Agreement and the compensation 
packages proposed in lieu of notice in subparagraphs (b) and (c) herein are 
fair and reasonable in all the circumstances.

    (d) Termination by the Employee

This Agreement and the employment of the Employee hereunder may be terminated 
by the Employee upon at least three (3) months' prior written notice to 
Arctic given at any time. If the Employee so terminates this Agreement and 
his employment hereunder, he shall continue to accrue and will receive his 
annual salary and benefits (excluding bonus entitlement) through the date 
specified in his notice of termination and no more. Upon receipt of such 
notice, Arctic may, in its discretion, immediately terminate the employment 
of the Employee by making payment to the Employee of all salary and continue 
(if possible, and in accordance with applicable statutory provisions, or if 
not possible, paying the present value

<PAGE>
                                            7


of) all benefits which would have accrued to the benefit of the Employee to 
the date of termination specified in his notice of termination.

    (e) Termination by Mutual Agreement


This Agreement and the employment of the Employee hereunder may be terminated 
by mutual agreement in writing of the parties hereto. The Employee shall 
continue to accrue and receive his annual salary and benefits through to the 
date of termination settled upon pursuant to such mutual agreement.

The fact of termination of the Employee's employment in accordance with 
subparagraphs (d) and (e) herein and the terms of such termination shall be 
maintained as confidential by the Employee and shall not be disclosed to 
anyone other than Employee's legal and financial advisors until the Employee 
is so authorized by the Chief Executive Officer of Arctic.

    (f) Termination by Death

The Agreement and the employment of the Employee hereunder shall be 
terminated by the death of the Employee. All compensation to the Employee 
shall cease at his death.

    (g) Termination by Permanent Disability

For the purpose of this Agreement, "Permanent Disability" means:

    the Employee is unable to perform any and every duty of his employment, 
and such disability may reasonably be expected to exceed a period of six 
months.

If the Employee's employment is terminated due to Permanent Disability, the 
following compensation shall be paid:

1. salary shall stop at the end of the month in which termination occurs;

2. all employee benefits, except Arctic sponsored medical, accidental and 
life insurance, shall cease with termination. The medical insurance (with 
premium waiver for accidental and life insurance) shall continue for the 
Employee and his dependents for two (2) years under the same cost sharing 
arrangement as between Arctic and its other employees. Accidental and life 
coverage shall continue for as long as the Employee remains disabled under 
the disability plan. The Employee will be given the option, consistent with 
then existing legislation, to convert medical coverage upon cessation thereof 
to an individual policy;

3. the bonus payable under paragraph 4 (b) of this Agreement will be payable 
at year end on a pro rata basis based on the period of employment as a

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                                       8


percentage of the full year.

If the parties cannot mutually agree upon whether the Employee has a 
Permanent Disability or when the Employee became Permanently Disabled for the 
purposes of this Agreement, then Arctic and the Employee shall each appoint 
one doctor of medicine licensed to practice in the State of Washington and 
the two doctors so appointed shall determine if the Employee has a Permanent 
Disability, and the time at which he became so Permanently Disabled for the 
purposes of this Agreement.  If the two doctors so appointed cannot agree 
upon whether the Employee is or when the Employee became Permanently 
Disabled, they shall appoint a third doctor of medicine licensed to practice 
in the State of Washington and the decision of the majority shall be binding 
on both parties hereto and shall not be subject to appeal.

7. CONFIDENTIAL INFORMATION AND TRADE SECRETS

The Employee acknowledges that he has a fiduciary obligation to Arctic and 
that, in the course of providing services hereunder, he will be entrusted 
with confidential information and trade secrets ("Confidential Information") 
concerning the present and contemplated projects, services and techniques 
involved and used by Arctic, its parent company Royal Oak and their 
respective associated, related and subsidiary companies in connection with 
their respective businesses, the disclosure of any of which to competitors of 
Arctic, Royal Oak or the general public would be highly detrimental to the 
best interests of Arctic and not compensable by damages.  The Employee 
further acknowledges that the right to maintain all such Confidential 
Information as confidential constitutes a proprietary right which Arctic, its 
parent company Royal Oak and their respective associated, related and 
subsidiary companies are entitled to protect by way of injunctive relief in 
addition to other remedies available to each on breach of such 
confidentiality.

The Employee further acknowledges that the restrictions and prohibitions set 
out herein are reasonable and proper based on the nature of the business of 
Arctic, its parent company Royal Oak and their respective associated, related 
and subsidiary companies, which businesses as of the date hereof are to a 
significant extent carried on in Canada and the United States.  Accordingly, 
the Employee agrees that:

    (a) he will not, during the term of this Agreement or at any time 
thereafter, disclose any of such Confidential Information to any person or 
use any of such Confidential Information for any purpose other than those of 
Arctic and Royal Oak; and 

    (b) he will not, during the term of this Agreement or at any time 
thereafter, disclose any information concerning the business of Arctic, its 
parent company Royal Oak or their respective associated, related and 
subsidiary companies which could adversely affect the image or reputation of 
any of them.
    
<PAGE>

                                        9

The Employee agrees that the provisions of this paragraph 7 will, in their 
entirety, survive termination of this Agreement by any party for any reason 
and in any manner whatsoever.

8. PERFORMANCE GUARANTEE

In consideration of the Employee agreeing to transfer to and continue his 
employment with Arctic, Royal Oak hereby guarantees to the Employee the full 
performance of Arctic of each and every obligation hereunder assumed by 
Arctic and further indemnifies and agrees to hold harmless the Employee from 
and against any and all loss, damage, injury and expense (including recovery 
of all legal fees and disbursements) incurred by the Employee as a result of 
any breach by Arctic of its obligations hereunder or in enforcing and 
securing to the Employee all of his rights and entitlement hereunder.

9. NOTICES

Wherever this Agreement requires or permits any consent, approval, notice, 
request or demand from any party to another, the consent, approval, notice, 
request or demand (including, without limitation, telecopied communications) 
must be in writing to be effective and shall be deemed to have been given on 
the earlier of receipt or five business days after it is enclosed in any 
envelope, addressed to the party to be notified at the address first above 
written (or such other addresses as may be designated by written notice from 
time to time), properly stamped, sealed and deposited in the mail system, in 
the case of Arctic, to the attention of the Chief Executive Officer and in 
the case of Royal Oak to the attention of Mr. W. J. V. Sheridan, Secretary.  
Any consent, approval, notice, request or demand aforesaid if delivered or 
telecopied shall be deemed to have been given on the day of such delivery or 
telecopied transmission.  Any such delivery shall be sufficient, if left with 
any person at the above address of the Employee in the case of the Employee, 
and with the receptionist at the above addresses of Arctic and Royal Oak in 
the case of Arctic and Royal Oak respectively.

10. ENTIRE AND BINDING AGREEMENT

The provisions contained herein and in any Stock Option Agreement or Loan 
Agreement created in accordance with paragraphs 5 (b) and (f) herein 
constitute the entire Agreement between the parties and supersede all 
previous communications, representations, understandings and agreements, 
whether oral or written, between the parties with respect to the subject 
matter hereof.

Subject to the provisions hereof, this Agreement shall be binding upon and 
shall enure to the benefit of the parties hereto and upon their respective 
heirs, legal representatives, successors and permitted assigns.

<PAGE>

                                      10

11. AMENDMENTS

No alteration or amendment to this Agreement will take effect unless the same 
is in writing duly executed by each of the parties in the same manner as this 
Agreement.

12. WAIVERS

One or more consents to or waivers of any breach of the terms or provisions 
of this Agreement by any party shall not be construed as a consent or waiver 
of a subsequent breach of the same term or provision, nor shall it be 
considered a consent to or waiver of any other then existing or subsequent 
breach of a different term or provision. The consent or waiver by any party 
to or of any act by any other party requiring such consent or waiver shall be 
deemed not to waive or render unnecessary consent to or waiver of any 
subsequent similar act.  No custom or practice of any party shall constitute 
a waiver of any other party's right to insist upon strict compliance with the 
terms and provisions hereof.

15. SEVERABILITY

If any term or provision of this Agreement shall be or shall become illegal 
or unenforceable, the remaining terms and provisions shall nevertheless be 
valid, binding, and subsisting.

16. INTERPRETATION

For purposes of this Agreement, "person" includes any body corporate, 
government or any subdivision or department thereof, trust, unincorporated 
association, joint venture and/or partnership.

17. HEADINGS

Headings are for convenience of reference only and shall not affect the 
interpretation of this Agreement.

18. ASSIGNMENT

Neither the rights nor obligations under this Agreement shall be assigned or 
otherwise disposed of without the prior written consent of the non-assigning 
party, except that Arctic may assign this Agreement to any successor or 
related corporation without such consent. 

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                                       11

19. APPLICABLE LAW

Whether pursuant to court proceedings or otherwise, the rights and 
obligations of the parties under and pursuant to this Agreement shall be 
construed under and governed by the laws of State of Washington and the 
parties hereby agree to submit to the exclusive jurisdiction of its courts.

IN WITNESS WHEREOF this Agreement is executed by the parties as of the date 
first above written.


                                              ARCTIC PRECIOUS METALS, INC.




                                              By:  /s/ M. K. Witte          c/s
                                                   -------------------------
                                                   (authorized signing officer)


SIGNED, SEALED AND DELIVERED
IN THE PRESENCE OF:



/s/ Illegible                                      /s/ Edmund Szol          I/S
------------------------                           -------------------------
   Witness                                         Edmund Szol

Notary Public for
the state of Washington



                                                ROYAL OAK MINES INC 




                                              By:  /s/ M. K. Witte       I/S
                                                   -------------------------
                                                   (authorized signing officer)

<PAGE>

                         ARCTIC PRECIOUS METALS, INC.
                             5501 Lakeview Drive
                          Kirkland, Washington 98033
                   Phone: (206) 822-8992 Fax: (206) 822-3552




August 1, 1997



Mr. Edmund Szol
4206 E. Lake Sammamish Parkway SE
Issaquah, WA 98029

Dear Mr. Szol:

By written agreement made the 22nd day of May, 1997, the Company agreed to 
lend to you the maximum aggregate sum of Ninety Thousand US Dollars 
(US$90,000.00) on an interest free basis for the purpose of financing a home 
in the Washington Area.

Prior thereto, you had borrowed from Arctic Precious Metals, Inc., upon 
commencement of your employment therewith, the sum of Twenty-five Thousand US 
Dollars (US$25,000.00) for such a purpose. Seventeen Thousand US Dollars 
(US$17,000.00) presently remains outstanding on the said loan, which 
indebtedness is secured by a written loan agreement made between you and the 
Company on the 26th day of June, 1995. You elected not to move from your 
residence (municipally identified as 4206 E. Lake Sammamish Parkway SE).

You have, however, now advised the Company that, pursuant to the terms and 
conditions of paragraph 5(f) of your Employment Agreement made the 22nd day 
of May, 1997, you wish to borrow the further sum of Seventy-three Thousand US 
Dollars (US$73,000.00) for purposes of a home equity loan - which sum takes 
you to the maximum aggregate amount specified in your Employment Agreement 
aforesaid. You have proposed a second mortgage on your residence as security 
for the full indebtedness of Ninety Thousand US Dollars (US$90,000.00).

In consideration of your past performance and ongoing commitment as Chief 
Operating Officer of the Company and for other good and valuable 
consideration (the sufficiency and receipt of which are hereby acknowledged), 
the Company is pleased to grant your request and agrees to amend the first 
sentence of paragraph 5(f) of your Employment Agreement to read as follows:

    "The Employee will be eligible to borrow from Arctic, during the course 
of his employment therewith, an aggregate maximum amount of Ninety Thousand 
US Dollars

<PAGE>


(US$90,000.00), interest free, by way of a home equity loan secured against 
his principal residence at 4206 E. Lake Sammamish Parkway SE, Issaquah, WA 
98029 (the "Home")."

In addition, for and in reliance on the aforesaid consideration, we propose a
further amendment to paragraph 5(f) of your Employment Agreement to add, 
after the first two sentences thereof, the words:

    "Any amounts repaid by the Employee may be borrowed again from time to 
time by way of a home equity loan secured against the Home, provided that the 
principal amount of the loan outstanding at any one time shall not exceed the 
aggregate maximum amount of US$90,000.00."

The remainder of paragraph 5(f) and of all the other terms and conditions set 
forth in your Employment Agreement shall remain in full force and effect 
without variation.

If your concur in the amendments outlined above, please execute this document 
in the space provided below.

Yours truly,


ARCTIC PRECIOUS METALS, INC.


/s/ Margaret K. Witte
-------------------------
Margaret K. Witte
Chairman & President



I, Edmund Szol, hereby agree to and accept to be bound by the preceding 
amendments to paragraph 5(f) of my Employment Agreement made the 22nd day of 
May, 1997.

Dated the 5th day of August, 1997.


Witness:


/s/ Illegible                                  /s/ Edmund Szol
-------------------------------------         -------------------------------
                                                       Edmund Szol