Exhibit 10.1


 


MINERAL LEASE AGREEMENT


 


THIS MINERAL LEASE
AGREEMENT (hereinafter the “Mineral Lease”) is made and entered into as of this 23rd day of January, 2012, by and between
Can Cal Resources, Ltd., a Nevada corporation, as Lessor (hereinafter referred to as “Can-Cal”
or “Lessor”) and GoodCorp Inc., as Lessee, (hereinafter referred to as “GoodCorp” or “Lessee”).


 


W I T N E S S E T H :


 


WHEREAS,
Can-Cal is the owner of that certain property situated 45 miles east of the city of Barstow, CA, containing 120 acres, more
or less, which property, including all Ore and Minerals (as hereinafter defined) situated therein, thereon and thereunder and all
improvements thereon and appurtenances thereto, is hereinafter referred to as the “Property” and is more fully described
on Exhibit A, attached hereto;


 


WHEREAS, GoodCorp desires
to enter this Mineral Lease Agreement for the Property from Can-Cal, in order to separate
the available Fines, and Can-Cal desires to enter into this Mineral Lease Agreement in order to enable GoodCorp the opportunity
for the separation of the Fines situated thereon the Property, for the mutual benefit of GoodCorp and Can-Cal;


 


NOW,
THEREFORE, in consideration of ten dollars ($10.00) in hand paid to Can-Cal, the receipt
and sufficiency of which are hereby acknowledged, and further in consideration of the covenants hereinafter set forth, Can-Cal
and GoodCorp agree as follows:


 


1. DEMISE.
Lessor does hereby lease and demise the Property to GoodCorp for the Term and upon
the covenants and conditions set forth in this Mineral Lease for the purposes of extracting, separating and removing the
Fines contained within the gravel lying upon such Property and for other purposes set forth
herein.


 


2. DEFINITIONS.
The following words and terms wherever used in this Mineral Lease are defined as follows:


 


“Environmental
Laws” means all federal, state, county, territorial, regional, municipal and local laws, statutes, ordinances, codes,
rules and regulations related to protection of the environment or the handling, use, generation, treatment, storage, transportation
or disposal of Hazardous Materials.


 


“Fines”
means that portion of the Ore that is separated using 40 mesh or greater separating equipment.


 


“Hazardous Materials”
means any hazardous or toxic substance, material or waste that is regulated by any federal, state, county, territorial,
regional, municipal or local governmental authority under any Environmental Law now or hereafter
effective, including, without limitation, any waste, pollutant, hazardous substance, toxic substance, hazardous waste,
special waste, petroleum or petroleum-derived substance or waste, or any constituent of any such substance or waste.


 




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“Minerals”
shall mean all minerals as set forth in Exhibit B that are included in the Fines and
mineral substances of whatsoever nature and character, including any Precious Metals that are
not specifically listed in Exhibit B, now known to exist or which may be subsequently discovered
or subsequently classified as minerals or mineral substances, irrespective of whether at
the time of the execution of this Mineral Lease any said mineral or substance was considered in connection with the Property.


 


“Ore” shall mean the gravel,
rock, sediments, and other materials currently stockpiled on the Property.


 


“Tailings”
shall mean the material and residue of Ore after extracting and separating the Fines.


 


“Term” shall mean the initial
term of this Mineral Lease and any extension and renewal thereof.


 


“Waste
Material” shall mean Fines extracted and separated by GoodCorp which does not have commercial value for its mineral
content.


 


3. 
RIGHTS OF LESSEE. Can-Cal grants unto GoodCorp the following rights and privileges on the Property:


 


(a) The
exclusive right and privilege during the Term of this Mineral Lease to extract and separate Fines which may be found upon
the Property, in such manner as GoodCorp, in its sole discretion, deems advisable; the rights set forth in the preceding sentence
shall be exclusive to GoodCorp for the stated purposes of this lease, but limited by the following proviso clause; provided,
however, that GoodCorp is specifically prohibited from the sale, transfer or removal of any Ore other than Fines from
the Property without expressed agreement by Can-Cal;


 


(b) The
non-exclusive right to use and affect the surface of the Property, as may be necessary or incidental to the exercise of
the rights herein granted;


 


(c) The
exclusive right to stockpile Fines, from the Property, on the Property so long as this Mineral Lease is in effect, provided such
stockpiles are in compliance with all applicable Environmental Laws;


 


(d) The
non-exclusive right to deposit Tailings on the Property following the separation process;


 


(e) The
exclusive right, to construct, assemble, erect, use, maintain, improve, repair, replace,
rebuild, remove and relocate in or upon the Property such machinery, equipment, and such other improvements and services,
including roads, inclines, drifts, entry ways, pipelines, telephone lines, electric transmission lines, railroads, or conveyors,
as may be necessary or incidental to the extraction and separation of Fines and the sale and disposition of Minerals produced
from the Fines. In the event that Can-Cal and GoodCorp mutually agree that access to
a railroad spur should be available, all costs with respect to gaining access to the railroad spur will be shared equally
between Can-Cal and GoodCorp;





 




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(f) The
non-exclusive right to use, subject to applicable laws, rules and regulations and in compliance
with all Environmental Laws, any surface or ground water situated within or upon the
Property in connection with GoodCorp's operations hereunder; provided, however, that GoodCorp
shall not take water from Lessor's existing wells, tanks or surface reservoirs without the written consent of Lessor, which
consent shall not be unreasonably withheld;


 


(g) The non-exclusive
right, to be exercised in connection with GoodCorp's operations hereunder, to cut and use timber
situated upon the Property, subject to the provisions of Paragraph 5 below; and


 


(h) all
other rights and privileges which are necessary to GoodCorp in the exercise of any or all of the rights hereinabove set
forth which are not in conflict with Lessor’s rights under this Mineral Lease or with
applicable state, federal or local laws, ordinances and regulations including, without limitation, all Environmental Laws.


 


4. TERM.
The Term of this Mineral Lease shall commence on the date of this Mineral Lease, and
as first set forth above and shall, subject to GoodCorp's right to terminate as set forth in Paragraph 16 below, and to
Lessor's right to terminate as set forth in Paragraph 17 below, continue for an initial period of ten (10) years from said date,
unless extended pursuant to the terms hereof. The Lessee shall have the option to extend the Term of this Mineral Lease for an
additional five (5) year period exercisable at any time no less than three (3) months prior to the expiry
of the initial term, provided that the Lessee and the Lessor shall renegotiate the Production Payments,
which negotiations the Lessee and the Lessor shall enter into and pursue in good faith.


 


5. DAMAGES.
GoodCorp shall pay Lessor reasonable compensation for any damages to fences, existing
structures or other tangible improvements, timber, crops or livestock resulting from
GoodCorp's operations on the Property, but GoodCorp shall not be liable for consequential,
special or incidental damages such as, but not limited to, loss of opportunity or loss
of future profits. The determination of reasonable compensation for damages shall be mutually agreed upon by the parties
hereto; but if the parties are unable to agree, then each shall appoint at its own expense
a qualified appraiser to separately appraise the applicable amount of damages. The average of three (3) independent appraisals
mutually agreed upon by both parties and shall be the basis of compensation.


 


6. PRODUCTION PAYMENT.
In the event that GoodCorp shall extract, separate and remove from the property Fines in accordance
with this Agreement, GoodCorp shall pay to Lessor a production fee (“Production
Payment”), within thirty (30) days of such separation or removal, equal to:


 


(i) Twelve United States dollars (US$12.00)
per ton of Fines removed from the Property for the initial 20,000 tons of Fines removed from the Property;


 


(ii)
Eleven United States dollars and fifty cents (US$11.50) per ton of Fines removed from the Property in excess of 20,000
tons up to and including 40,000 tons of Fines removed from the Property;


 




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(iii) Eleven
United States dollars (US$11.00) per ton of Fines removed from the Property in excess of 40,000 tons up to and including
60,000 tons of Fines removed from the Property;


 


(iv) Ten
United States dollars and fifty cents (US$10.50) per ton of Fines removed from the Property
in excess of 60,000 tons up to and including 80,000 tons of Fines removed from the Property;


 


(v) Ten United States dollars
(US$10.00) per ton of Fines removed from the Property in excess of 80,000 tons up to and including
100,000 tons of Fines removed from the Property; and


 


7. TAILINGS
AND WASTE MATERIAL. Lessee agrees that it will stockpile all Waste Material and Tailings
on the Property and agrees that such stockpiles will be made and maintained in compliance with all applicable Environmental
Laws.


 


8. BOOKS
AND RECORDS: INSPECTION


 


(a) GoodCorp
shall keep books and records necessary to document the quantity and quality of all Fines extracted and separated on the
Property and all Minerals produced from the Fines. Each month GoodCorp would provide an elemental analysis of the material produced
provided by an independent laboratory and the results will be forwarded to Can-Cal.


 


(b) Lessee
shall install and maintain a bucket scale or truck scale to weigh all Fines extracted
and separated immediately prior to their removal from the Property. Lessee shall weigh
all Fines extracted on the property by use of a bucket scale or truck scale to determine and record
the net weight of all Fines that have been extracted from the property. Scale tickets or other
automatic means shall be used to record the net weight of all such Fines. For the purpose of
permitting verification by Lessor of any amounts due hereunder, Lessee will keep and preserve supporting documentation
and records which shall disclose in reasonable detail all information required to permit
Lessor to verify the Production Payment calculations under this Lease. Upon reasonable
advance notice to Lessee, Lessor or its agents shall have the right, during Lessee’s regular
business hours, to examine or audit such supporting documentation and records. Lessee shall
retain such supporting documentation and records for a period of one (1) year following the termination or expiration of
this Lease.


 


(c) On or before the
25th day of the month following commencement of operations by the lessee and for
each full month of this Lease, Lessee shall forward to Lessor, at the address herein given or at such other place or places
as Lessor shall from time to time designate in writing, monthly reports indicating thereof
the quantity of Fines extracted and dispatched from the Property during the previous month, as well as a computation of
the Production Payment due thereon, and a check in payment of the total amount due thereon.


 




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(d)
In the event that Lessor and GoodCorp cannot agree as to the accuracy of the calculation
of the Production Payment, then either party may refer the matter to arbitration under Paragraph 19 hereof.


 


9. PERFORMANCE OBLIGATIONS


 


(a) Operations and
Reclamation. GoodCorp shall conduct its operations (including all reclamation work) on the Property in a careful and workmanlike
manner and in compliance with all applicable laws, ordinances and regulations of all governmental
authorities having jurisdiction over the Property or GoodCorp's operations including,
without limitation all Environmental Laws.


 


(b) Notice
of Discovery. GoodCorp shall notify in writing Can-Cal in the event that GoodCorp discovers Precious Metals, as set forth
in Exhibit C, on the Property.


 


(c) Pledge
Not to Compete. GoodCorp and Cal-Cal shall not, and each shall cause its affiliates
and associates to not, conduct its business in a manner which is in competition with the other parties business.


 


10. TAXES AND UTILITIES.


 


(a) Lessee
shall pay prior to delinquency all personal property taxes applicable to Lessee’s
personal property, fixtures, furnishing and equipment located on the Property, as well as
all production or severance taxes computed or based upon removal by Lessee of Materials from the Property. If Lessee shall in good
faith desire to contest the validity or amount of any tax, assessment, levy, or other
governmental charge herein agreed to be paid by Lessee, Lessee shall be permitted to do so, and to defer payment of such
tax or charge, until final determination of the contest. If the outcome of such contest is
unfavorable to Lessee, Lessee shall immediately pay all taxes, charges, interest and penalties determined to be due.


 


(b) Lessee agrees
to pay all expenses for heat, electricity, lighting, telephone, waste management fees and charges for water assessed against the
Leased Premises after Lessee takes physical possession of the Leased Premises, arising from Lessee’s activities thereon,
at such time as said charges become due. After the Lessee takes physical possession of the
Leased Premises and is in the production phase, the Lessor agrees that it will not
allow any third party to occupy the Property/Leased Premises without the prior written approval of the Lessee.


 


11. PERMITS.


 


(a)
Lessee shall use its good faith efforts to cause all permits associated with its operations
on the Property to be issued in the names of Lessee and Lessor provided, however, that
the parties agree and acknowledge that such permits are only applicable for activities associated with the extraction, separation
and removal of Fines. Lessee shall pay for any fees or costs associated with obtaining and maintaining such permits.


 


(b) In the event that
Lessee's permits are terminated or not renewed as a result of Lessor's actions, Lessee may, in its sole discretion, either (i)
terminate this Lease with no further obligations hereunder; or (ii) suspend the term of this
Lease until Lessee reinstates such permits, up to a maximum period of two (2) years. During such suspension period, Lessee
shall have no obligation to make any Production Payments. In the event Lessee's permits are
not reinstated prior to the expiration of such two (2) year period, or in the event Lessee notifies Lessor that it has abandoned
its efforts to reinstate such permits, this Lease shall terminate, and Lessee shall have no
further obligations hereunder. In the event that Lessee reinstates such permits within such two (2) year period, the applicable
term of this Lease shall be extended for the period of suspension.


 




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12. LESSOR’S RESERVED
RIGHTS


 


(a) The
rights of Lessee granted hereby shall be subject to Lessor's reserved concurrent right
to use the Property for the purpose of exploration, development and mining of Minerals other
than from Fines and the use of any surface or underground water or water rights occurring on
or appurtenant to the Property; so long as Lessor's use does not interfere with the rights granted
Lessee herein. Lessee shall be entitled to compensation for any damages caused to Lessee by Lessor's use of the Property.


 


(b) Lessor
shall not conduct its operations in any way which would adversely affect Lessee's use of the Property in accordance with
this Agreement.


 


(c)
Lessor agrees that for so long as this Lease is in effect, it will not use (and subject to section
22, will cause any subsequent lessee or sub-lessee to not use) any Minerals from the Property
in any manner which is in competition with Lessee's operations in accordance with this Agreement.


 


13.
INSURANCE. Each party shall, at its sole cost and expense, commencing no later than the date upon which the Lessee commences
operations on the Property, and continuing throughout the duration of this Lease, obtain, keep, and maintain in full force and
effect comprehensive general public liability insurance against claims for personal injury,
bodily injury, death, or property damage occurring in, upon, or about the Property in
an amount of not less than Five Million United States Dollars (US$5,000,000.00) in respect to injury or death of one person
and to the limit of not less than Five Million United States Dollars (US$5,000,000.00) in respect
to any one accident, and to the limit of not less than Five Million United States Dollars (US$5,000,000.00)
in respect to property damage with respect to the use of the Property. Each party shall
deliver to the other party certificates of insurance, which shall declare that the respective
insurer may not cancel the same, in whole or in part, without giving each party written notice of its intention to do so
at least thirty (30) days' prior written notice.


 


14. INDEMNIFICATION.


 


(a) Lessee shall pay, defend and indemnify
and hold Lessor and its officers, directors, shareholders, agents and employees (“Lessor Indemnified Parties,” individually
a “Lessor Indemnified Party”) harmless from and against any and all claims of
liability for injury or damage to any person or property arising from the use of the
Property by Lessee, or from the conduct of Lessee's business, or from any activity,
work or thing done, permitted or suffered by Lessee or Lessee's invitees, licensees,
agents, contractors or employees in or about the Property or elsewhere. Lessee shall further pay, defend, indemnify and
hold the Lessor Indemnified Parties harmless from and against any and all claims arising from
any breach of any representation, warranty or covenant hereunder, or default in the performance of any obligation on Lessee's
part to be performed under this Lease, or arising from any negligence of Lessee or Lessee's invitees, licensees, agents, contractors
or employees, and from and against all costs, attorneys' fees, expenses and liabilities incurred
in the defense of any such claim or action or proceeding brought thereon. In the event
any action or proceeding is brought against any Lessor Indemnified Party by reason of any such claim, Lessee, upon notice from
such Lessor Indemnified Party, shall defend the same at Lessee's expense by counsel
reasonably satisfactory to such Lessor Indemnified Party.





 




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(b) Lessor shall pay,
defend and indemnify and hold Lessee and its officers, directors, shareholders, agents and employees (“Lessee Indemnified
Parties,” individually a “Lessee Indemnified Party”) harmless from and against
any and all claims of liability for injury or damage to any person or property arising from the use of the Property by Lessor,
or from the conduct of Lessor's business, or from any activity, work or thing done, permitted or suffered by Lessor or Lessor's
invitees, licensees, agents, contractors or employees in or about the Property or elsewhere. Lessor shall further pay, defend,
indemnify and hold the Lessee Indemnified Parties harmless from and against any and all claims
arising from any breach of any representation, warranty or covenant hereunder or default
in the performance of any obligation on Lessor's part to be performed under this Lease, or arising from any negligence of
Lessor or Lessor's invitees, licensees, agents, contractors or employees, and from and against all costs, attorneys' fees, expenses
and liabilities incurred in the defense of any such claim or action or proceeding brought thereon.
In the event any action or proceeding is brought against any Lessee Indemnified Party by
reason of any such claim, Lessor, upon notice from such Lessee Indemnified Party, shall defend
the same at Lessor's expense by counsel reasonably satisfactory to such Lessee indemnified Party.


 


15.
LIENS. If any liens or claims of mechanics, laborers, or material men shall be filed against the
Property or any part or parts thereof, for any work, labor, or materials furnished or claimed to be furnished to Lessee,
or on behalf of Lessee, then Lessee shall cause such lien to be discharged within thirty (30) days after the date such lien is
filed; or if such lien is disputed by Lessee and Lessee contests the same in good faith,
Lessee shall cause such lien to be discharged within thirty (30) days after the date
of any judgment by any court of competent jurisdiction shall become final.


 


16. LESSEE’S RIGHT TO TERMINATE. GoodCorp
may terminate this Mineral Lease:


 


(i) With
the prior written consent of Can-Cal;


 


(ii) If
any court of competent jurisdiction or any governmental, administrative or regulatory authority, agency or body shall have issued
an order, decree or ruling or taken any other action permanently enjoining, restraining
or otherwise prohibiting the transactions contemplated by this Agreement;


 




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(iii) In
the event that Can-Cal files a petition in bankruptcy or be adjudicated a bankrupt
or insolvent, or make an assignment for the benefit of creditors or an arrangement pursuant
to any bankruptcy law, or discontinue or dissolve its business, or if a receiver is appointed for Can-Cal’s business
and such receiver is not discharged within thirty (30) days; or


 


(iv) If
Can-Cal breaches any of its representations or warranties hereof or fails to perform
in any material respect any of its covenants, agreements or obligations under this Mineral Lease, without curing such failure with
ten (10) days written notice thereof (or moving to cure such failure is the event of such failure cannot be feasibly cured
within such period);


 


(v) If
there is a change of control of Can-Cal, including a change in the majority of the board of directors of Can-Cal;


 


17. LESSOR’S RIGHT TO TERMINATE.
Can-Cal may terminate this Mineral Lease:


 


(i) With the written consent of GoodCorp;


 


(ii) If
any court of competent jurisdiction or any governmental, administrative or regulatory
authority, agency or body shall have issued an order, decree or ruling or taken any other
action permanently enjoining, restraining or otherwise prohibiting the transactions contemplated by this Agreement;


 


(iii) If
GoodCorp breaches any of its representations or warranties hereof or fails to perform
in any material respect any of its covenants, agreements or obligations under this Mineral
Lease, without curing such failure within thirty (30) or longer if necessary given the situation)
days written notice thereof (or moving to cure such failure is the event of such failure cannot be feasibly cured within
such period


 


(iv) In
the event that GoodCorp fails to obtain or maintain sufficient property liability insurance, which policies shall be made available
to Can-Cal upon GoodCorp’s commencement of mining, excavation or construction, of any kind whatsoever, on the Property, without
curing such failure with thirty (30) days written notice thereof; provided, however, that during such notice period
GoodCorp shall cease any and all activity on the Property until such cure (or termination);


 


(v)
In the event that GoodCorp files a petition in bankruptcy or be adjudicated a bankrupt or insolvent, or make an assignment
for the benefit of creditors or an arrangement pursuant to any bankruptcy law, or discontinue
or dissolve its business, or if a receiver is appointed for GoodCorp’s business
and such receiver is not discharged within thirty (30) days;


 




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(vi)
In the event that GoodCorp (i) fails to notify Can-Cal of its discovery of any Precious
Metals, as set forth in Exhibit C, on the Property or (ii) sells, transfers or removes Precious
Metals, as set forth in Exhibit C, from the Property without the prior written consent of Can-Cal, this Mineral Lease
shall at Can-Cal’s option terminate upon written notice by Can-Cal to GoodGorp.


 


18. EXPROPRIATION.


 


(a)
In the event a part of the Property shall be taken, by eminent domain for any public or quasi-public
purpose, or transferred by agreement in connection with such public or quasi-public use, with or without any expropriation
or condemnation proceeding being instituted, and such taking does not materially affect Lessee's operations, only the Lease on
the portion taken shall then expire, on the date when title to such portion of the Property
vests in the appropriate authority or on the date possession is required to be surrendered, whichever is earlier. The compensation
or damages for this taking shall be apportioned by and between the Lessor and Lessee taking
into consideration the residual value of the land and surface rights to Lessor, the value
of this Lease and the unseparated Fines at the time of taking to the Lessee, and the future anticipated royalties to the
Lessor.


 


(b) In the event
that all or substantially all of the Property shall be taken by eminent domain for any public or quasi-public purpose such that
Lessee's operations are no longer economically feasible, then this Lease shall expire on the
date when title to the Property vests in the appropriate authority or on the date possession
is required to be surrendered, whichever is earlier. The compensation or damages for this taking shall be apportioned by
and between the Lessor and Lessee taking into consideration the residual value of the land and surface rights to Lessor,
the value of this Lease and the unseparated Fines at the time of taking to the Lessee, and the future anticipated royalties
to the Lessor.


 


(c) A
voluntary sale or conveyance under threat of expropriation or condemnation but in lieu thereof, shall be deemed an appropriation
or taking under the power of eminent domain.


 


19. ARBITRATION.
Any disagreement between the Lessor and the Lessee shall be referred to arbitration before a single arbitrator pursuant to the
rules and regulations of the American Arbitration Association. The decision of any such arbitrator shall be final and binding on
the parties and the costs and fees relating thereto shall be borne and paid in the manner
the arbitrator determines to be fair and equitable.


 


20. SUBORDINATION.
This Lease at Lessor's option shall be subject and subordinate to the lien of any
mortgages or deeds of trust in any amount whatsoever now or in the future placed on or against the Property; provided, however,
that as long as Lessee is not in default hereunder, any lien or encumbrance shall provide that the holder thereof will recognize
Lessee's rights under this Lease notwithstanding foreclosure of such lien or encumbrance.


 


21. NOTICES. Any notice or other communication which may be permitted or required under this Lease shall be in writing and shall
be delivered personally or sent by United States registered or certified mail, postage prepaid,
addressed as follows, or to any other address as either party may designate by notice
to the other party:


 




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	If to Lessor	
        Can-Cal Resources Ltd.

        

        8205 Aqua Spray Avenue, Las
        Vegas, NV 89128

         

        Las Vegas, Nevada 89128 USA

         

	With a copy to:	
        Davis LLP

        1000, 250 2nd Street S.W. Calgary,
        Alberta T2P 0C1

        Attention: Roy H. Hudson

         

	If to Lessee:	
        GoodCorp Inc.

        715 Sunset Blvd, Suite 100

        Los Angeles CA
90046

        Attention Mr. Chandler Warren

         



 


 


22. ASSIGNMENT. Lessee shall not assign or transfer this Lease, or sublet the Property or
any part thereof, without Lessor's prior written consent, which consent will not be unreasonably
withheld or delayed; except that such consent shall not be required if such sublease, assignment, or transfer by Lessee
is to an affiliate of Lessee.


 


23. BINDING ON SUCCESSORS AND ASSIGNS. All covenants, agreements, provisions, and conditions
of this Lease shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives,
successors, and assigns.


 


24. PARTIAL
INVALIDITY. If any term or provision of this Lease shall to any extent be held invalid or unenforceable, then the remaining terms
and provisions of this Lease shall not be affected thereby, but each term and provision
of this Lease shall be valid and be enforced to the fullest extent permitted by law. In the event that any provision of
Agreement relating to the time periods and/or geographic areas of any restriction shall be
declared by a court of competent jurisdiction to exceed the maximum time period or areas that such court deems reasonable
and enforceable, the time period and/or geographic areas of restriction deemed reasonable and enforceable by the court shall become
and thereafter be the maximum time period and/or geographic areas.


 


25. GOVERNING
LAW. This Lease shall be governed by the laws of the State of California.


 




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26. CAPTIONS.
The captions of this Lease are for convenience only and are not to be construed as
part of this Lease and shall not be construed as defining or limiting in any way the scope or intent of the provisions of
this Lease.


 


27. NO
WAIVER. No waiver of any covenant or condition contained in this Lease or of any breach of any such covenant or condition shall
constitute a waiver of any subsequent breach of such covenant or condition by either party
or justify or authorize the non-observance on any other occasion of the same or any other covenant or condition.


 


28. ENTIRE AGREEMENT;
MODIFICATION. This Lease represents the entire understanding and agreement between the parties
and supersedes all prior written instruments or memoranda with respect thereto. No modification of this Lease shall be binding
unless it is in writing and executed by an authorized representative of Lessor and Lessee.


 


29. COUNTERPARTS.
This Lease may be executed in one or more counterparts which, together, shall constitute an original and binding agreement on
the parties hereto.


 


30. RELATIONSHIP
OF THE PARTIES. Nothing contained in this Lease shall be deemed or construed by the parties hereto, nor by any third party,
as creating the relationship of principal and agent, partnership, or joint venture between
the parties hereto, it being understood and agreed that no provision contained in this Lease nor any acts of the parties
hereto shall be deemed to create any relationship other than the relationship of landlord and tenant.


 


31. INCORPORATION
OF EXHIBITS. This Lease shall be deemed to have incorporated by reference all of the Exhibits referred to herein to the
same extent as if such Exhibits were fully set forth herein.


 


32.
ATTORNEYS’ FEES. If either party takes any steps or brings any action to compel performance of or to recover for breach
of any term of this Lease, the losing party shall pay reasonable attorneys' fees of the prevailing
party, in addition to the amount of any judgment and costs.


 


IN WITNESS WHEREOF, the
parties have hereunto set their hands and seals as of the day and year first above written.


 




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Executed
on January 23, 2012 LESSEE:


 


GOODCORP INC.


 


 


 


_________________________________ 


By: A. Chandler Warren, Executive Vice President


 


 


LESSOR:


 


CAN-CAL RESOURCES, LTD.


 


By: G. Michael Hogan,
President & CEO


 




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Exhibit A


 


The
Pisgah Mine Project is located in San Bernardino County, 72 kilometers (45 miles) east of the city of Barstow, California,
and 307 kilometers (192 miles) south-southeast of Las Vegas, Nevada, United States. Barstow lies near the southwest border of California,
east of the junction of Interstate 15, Interstate 40 and U.S. Route 66. The Project is centered at Latitude 34o 44'
47” North, Longitude 116o 22' 29” West, or UTM (metric) co-ordinates
55700 E/384500 N in Zone 11, datum point NAD 27. It lies within Section 32, Township 8 North, Range 6 East from San Bernardino
Meridian. It has an area of 48.4 hectares (120.2 acres). In 1997 Can-Cal Resources Ltd., a Las Vegas, NV based exploration company,
gained 100% ownership of the claim which covers the Pisgah property.


 


Access
to the Pisgah Project is by the paved 2-lane paved road from the junction of Interstate 15 and
Interstate 40 just east of Barstow, California travel east along Interstate 40 for 52 kilometers (32.5 miles). Take the
Hector Rd. Exit and turn right onto Hector Rd. From here turn left onto Historic Route 66 for
7.4 kilometers (4.6 miles), and then turn right (south) onto the Pisgah Crater road. Follow this road for 3.2 kilometers
(2.0 miles) to the Pisgah Crater workings.


 


The Pisgah Mining Property lies near the south end
of the Mojave Desert. The region forms the southwestern extent of Precambrian continental
North America and rests at the present plate edge formed by the San Andreas transform fault. An oceanic plate has bordered
the region since late Precambrian time. Starting in late Miocene time the Mojave Desert area
was dissected by NW-trending right-lateral strike-slip faults with local areas of
E-trending left-lateral strike-slip faults.


 




 


 






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Exhibit B - Minerals 


1.Lithium


2.Boron


3.Sodium


4.Magnesium


5.Aluminium


6.Potassium


7.Calcium


8.Scandium


9.Chromium


10.Vanadium


11.Manganese


12.Cobalt


13.Nickel


14.Zinc


15.Copper


16.Arsenic


17.Selenium


18.Strontium


19.Rubidium


20.Yttrium


21.Zirconium


22.Niobium


23.Molybdenum


24.Cadmium


25.Tin


26.Antimony


27.Barium


28.Caesium


29.Lanthanum


30.Cerium


31.Praseodymium


32.Neodymium


33.Samarium


34.Europium


35.Gadolinium


36.Terbium


37.Dysprosium


38.Holmium




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39.Erbium


40.Thulium


41.Ytterbium


42.Lutetium


43.Hafnium


44.Tantalum


45.Tungsten


46.Thallium


47.Lead


48.Thorium
49. Uranium




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Exhibit C—Precious Metals


1.Platinum


2.Rhodium


3.Gold


4.Iridium


5.Osmium


6.Palladium


7.Rhenium


8.Ruthenium


9.Silver




 


 






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