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                                 MUTUAL RELEASE

         This Mutual Release (the "Release"), effective July 18, 2000, is
between Marlowe Harvey, an individual, Aarvark Agencies, Inc., a Washington
corporation, Calais Resources Colorado, Inc., a Nevada corporation, Calais
Resources, Inc., a British Columbia corporation (collectively referred to herein
as "Defendants"), on the one part, and Thomas S. Hendricks ("Hendricks"), on the
other part, to settle all disputes between these parties including, but not
limited to, those that were or could have been raised in Hendricks v. Harvey et
al, Boulder District Court Case No. 2000 CV 336, Div. 2 (referred to herein as
the "Disputes").

         In compromise of the Disputes, and in consideration of the mutual
promises described below, and for other valuable consideration, the receipt and
sufficiency of which are acknowledges, the parties agree as follows:

   1.    The parties stipulate to a dismissal of the above-named case with
prejudice with the parties to bear costs and attorneys' fees as set forth in
paragraph 1(c) of the June 8, 2000 agreement, a copy of which is attached
hereto. The stipulation for such dismissal is attached hereto and, upon the
execution of this Release, will be signed by Hendricks and by the counsel of
record in the Boulder action for Calais Resources Colorado, Inc. and Calais
Resources, Inc. and filed with the Boulder, Colorado District Court.

   2.    The Defendants, each on its own behalf and each for its respective
agents, representatives, successors, and assigns, agrees to release and
discharge Hendricks and Hendricks' agents, representatives, successors, heirs
and assigns, from all claims, demand, actions and causes of action of any type
or nature based on any fact, event, action, omission or circumstance existing on
or before the effective date of this Release, whether known or unknown.

   3.    Hendricks, on his own behalf and for his agents, representatives,
successors, heirs and assigns, agrees to release and discharge each of the
Defendants and their respective heirs, agents, representatives, successors and
assigns, from all claims, demands, actions and causes of action of any type or
nature based on any fact, event, action, omission or circumstance existing on or
before the effective date of this Release, whether known or unknown.

   4.    The parties expressly agree that this Release will be governed by
Colorado law and that they are aware they may hereafter discover facts in
addition to or different from those which they now believe to be true with
respect to the Disputes, but it is their intent to release all claims and
differences, known and unknown, which now exist, may exist, and hereafter exist
on any fact, event, action, omission or circumstance existing on or before the
effective date of this Release, and in furtherance of such intention, the
released herein given will be and remain in effect notwithstanding the discovery
or existence of any such express waiver and each party hereby agrees that they
shall not seek in any manner to hold the other party responsible for any
injuries, damages, losses, or liability that may hereafter be incurred by each
party with respect to the Disputes.

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   5.    The parties each acknowledge that they have every right to consult a
licensed attorney to represent their separate interests, and that they have done
so to the extent of their desires, and that they each execute this Release
voluntarily, without being pressured or influenced by any statement or
representation of any person acting on behalf of any party or their agents,
employees or attorneys.

   6.    This Release may be executed simultaneously in counterparts, each of
which will be deemed an original, but all of which constitutes one and the same
written instrument. This Release may also be executed by facsimile copy.

EXECUTED BY:
____________________________
Thomas S. Hendricks
P.O. Box 653-Caribou
Nederland, CO  80466-0653
____________________________
Marlowe Harvey

AARVARK AGENCIES, INC.

By:__________________________
Title:_______________________

CALAIS RESOURCES COLORADO, INC.

By:___________________________
Title: _______________________

CALAIS RESOURCES, INC.

By:___________________________
Title:________________________

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          THE FOLLOWING SERVES AS A FINAL SETTLEMENT AGREEMENT BETWEEN
             TOM HENDRICKS, MARLOWE HARVEY, AARDVARK AGENCIES INC.
                            AND CALAIS RESOURCES INC.

Tom Hendricks dismisses the case without prejudice and lifts the lis pendens
upon the completion of the following:

   1.

         a.  A mutual waiver and release will be entered into between Hendricks,
             Aardvark and Calais upon completion of the following terms of
             paragraphs 1 through 7.

         b.  Hendricks will receive an amount equal to Harvey (20%) of proceeds
             of sale of Knelson Concentrators against total debt owing him.

         c.  Calais Resources Inc. agrees to pay Hendricks on half of legal
             costs incurred in lawsuit up to and no later than June 10, 2000.

   2.    Defendants use their best efforts to sell the Mexico equipment located
         in the U.S., the proceeds to satisfy:

         a.  The remaining 60% of the sale proceeds to be dispersed between
             Canada and US debt by negotiations between Hendricks and Art Daher.

   3.

         a.  Transfer all claims, surface mineral rights and facilities
             presently owned by Aardvark Agencies Inc. to Calais Resources Inc.
             under the following terms:

                  1.       A debenture will be issued to Harvey representing US
                           $1,753,464 (the amount Aardvark advanced to Calais).
                           This amount represents Cdn. $2,628,963 (exchange rate
                           1.505). The price of the shares for the purposes of
                           this debenture is Cdn. $1.23.

                  2.       A cash amount equal to pay the capital gains
                           triggered by this transfer (approximately US
                           $750,000.) will be advanced to Aardvark prior to the
                           transfer taking place. This amount will be deducted
                           from the US $1,753,464 of the debenture. Aardvark
                           will retain its right to refuse this advance (the IRS
                           portion) and keep its rights under the debenture if
                           it is able to satisfy the IRS portion of taxes for
                           this transfer on its own.

                  3.       Calais will have an unlimited time limit to exercise
                           its option for this transfer.

         b.  Calais Resources Inc. will provide proof that Calais Resources Inc.
              is 100% owner of Calais Resources
                  Colorado Inc.

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         c.  Calais Resources will honor its previous agreement to grant and
             complete the 2% NSR royalty on the Caribou district claims to the
             Hendricks group within the 2 mile radius from survey corner number
             4 Cross Mill Site Claim, in accord with documentation previously
             prepared.

         d.  Calais will issue to Harvey (and group) a debenture under the same
             conditions as the Aardvark debenture for the balance of funds
             advanced by Harvey and group to Calais. The Board of Directors
             (including Hendricks) will verify the exact amount owed before such
             debenture is issued.

         e.  Harvey and group will assign a portion of its debt to Hendricks.
             The cost of this transfer will be Cdn. $1.00.  This amount would
             equal Cdn. $984,000, which represents 800,000 shares under the
             terms of the debenture.

         f.  Calais will issue all the debentures, royalty agreement with
             Hendricks and any other item covered in this agreement within 45
             days of signing this agreement.

         g.  Harvey and group will issue a portion of his debenture for debt to
             Hendricks within 10 days of receipt of its debenture.

   4.    Hendricks to negotiate a management work contract to manage the
         Colorado Properties from Board of Directors.

   5.    Calais will issue a public news release informing the public and
         shareholders that the Mexican operation has been shut down and
         terminated. Calais will write this operation off on its books and
         financial statements.

   6.    Tom Hendricks will approve and work diligently with Calais and
         Aardvark on the efforts to rapidly complete a debt financing loan on
         the Colorado properties under the following agreement:

         a.  Hendricks has a mutual right with Calais to approve the terms of
             the loan, the amount of the loan and the dispersal of the loan
             proceeds.

         b.  Loan proceeds to be used for (in addition to the sale of Calais
             equipment)

                  1.       Payment of all creditor debt listed on the May 15,
                           2000 accounts payable list for Calais Colorado in the
                           amount of $369,321.57, less any amounts paid down by
                           equipment sales, above mentioned. (Attached as
                           Exhibit A dated May 15, 2000).

                  2.       Payment of a general liability insurance policy for
                           the Colorado properties.

                  3.       To pay overhead cost incurred in ordinary course of
                           business, per a planned budget.

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                  4.       To pre-pay interest on the loan from the loan
                           proceeds for a two year period, with an option to
                           renew the loan for one additional year with interest
                           only payment.

                  5.       To pay the current accounts payable owed by Calais on
                           the Nevada properties in the amount of $9,000.

                  6.       To pay the current accounts payable owed by Calais
                           for the Chilliwack office in the amount of
                           $141,802.22.

                  7.       To pay Phil McLean and Marlowe Harvey the approximate
                           amount of $8,500.00 for the recent Phil McLean
                           expenses in Mexico.

                  8.       To budget approximately $150,000 to negotiate at
                           least two payments to Jeff Kramer of Nevada Manhattan
                           for a settlement.

                  9.       To budget and pay 2 year BLM payments and property
                           tax payments on the Colorado and Nevada properties in
                           the approximate amount of $65,000.00

                  10.      To pay Judy Harvey the amount of $187,000 to apply
                           toward the Harvey capital account.

                  11.      To pay Judy Harvey/Aardvark the amount of $53,000 for
                           the taxes on the sale of the Fairfax and Hillstreet
                           properties (to apply toward capital account?).

   7.    Harvey will resign as CEO and President of Calais Resources, Inc. for
         an undetermined time. Hendricks will accept these positions and will be
         reviewed at each Annual General Meeting. All directors nominations will
         be approved by the Board. Harvey will remain a director until he is
         satisfied that the company is operating in a manner beneficial to all
         shareholders.

Accepted by:
         Tom Hendricks______________Witness____________________________
                                    on this 8th day of June, 2000

Accepted by the Board of Directors of Calais Resources Inc.

Marlowe Harvey______________________Witness_______________________

Art Daher___________________________Witness_______________________

Mel Martin__________________________Witness_______________________
                                    on this 8th day of June, 2000.