AGREEMENT


     THIS AGREEMENT,  dated effective this 30th day of October,  1997 is entered
into by and between ALASKA GOLD COMPANY, whose address is 340 Hardscrabble Road,
Helper,   Utah  84526  ("AGC")  and  SlLVERADO  GOLD  MINES,  INC.,  an  Alaskan
corporation,  whose  address is Suite 505 - 1111 W. Georgia  Street,  Vancouver,
B.C. V6E4M3 ("Silverado" or "Purchaser").

                                     RECITAL

     AGC is the owner of a gold dredge  located in the Sheep Creek area,  Alaska
and  Silverado  desires  to  purchase  the dredge  together  with  certain  real
property,  and AGC is  willing  to sell the  same on the  terms  and  conditions
hereinafter set forth.

     NOW, THEREFORE, the parties agree as follows:

     A. For the consideration hereafter set forth, AGC agrees:

          (1) to sell to Sllverado  all of its right,  title and interest in and
     to the  following  property  situated  in  Township 1 North,  Range 2 West,
     Fairbanks Meridian:

               (a)  Gold  Dredge  #6  together  with  attached   equipment  (the
          "Dredge") located on the Independence Association Placer Mining Claim,
          M.S. #2197; and

               (b) Independence Association Placer Mining Claim, M.S. #2197; and

               (c) State of Alaska Leases:

                         ADL 524262
                         ADL 524263
                         ADL 524988
                         ADL 524989

          (2) to  warrant  that  AGC has  good  title to the  Dredge  and  other
     described  property  and  that  it is  free  and  clear  of any  liens  and
     encumbrances  but AGC  does not in any way  warrant  the  condition  of the
     Dredge  nor  any  part   thereof  nor  does  AGC   warrant   the   Dredge's
     merchantability  or fitness for a particular  purpose,  it being understood
     that  Sllverado  is  acquainted  with and  accepts the Dredge and the other
     described property "as is" and "where is" in their present condition.

<PAGE>

     B. Silverado agrees to purchase the Dredge and the other described property
for a total purchase price of One Hundred Twenty Thousand  Dollars  (US$120,000)
payable to AGC as follows:

          (1) $40,000 in cash on the closing of this transaction; and

          (2) a  Promissory  Note for the balance of the  purchase  price in the
     amount of $80,000 payable in two (2) equal  installments of $40,000 each on
     the  anniversary  of the  closing  of this  transaction  and  secured  by a
     mortgage or deed of trust satisfactory to AGC.

     C. Silverado also agrees:

          (1) to assume all obligations  and  liabilities  respecting the Dredge
     and the other  described  property and, except as may be provided by law to
     the contrary,  to indemnify,  defend and hold harmless AGC from and against
     any damage, loss, claim, demand or liability arising out of or resulting in
     any way from Silverado's  ownership,  use,  operation,  dismantling  and/or
     removal of the Dredge  and/or from  failure of Silverado to perform all its
     obligations under this Agreement; and

          (2) to carry at all times during the term of this  Agreement and until
     completion  of all  payments  under the  Promissory  Note,  with  insurance
     companies  satisfactory to AGC, the following minimum insurance  coverages:
     
               (i)  Workmen's  compensation  insurance  (including  occupational
          disease insurance) as required by law;

               (ii) Employer's  liability insurance with limits of not less than
          Five  Hundred  Thousand  Dollars  ($500,000)  each  accident or bodily
          injury by accident or Five Hundred  Thousand  Dollars  ($500,000) each
          employee for bodily injury or disease;

               (iii) Commercial  general liability  insurance (CGL) with a limit
          of not less than Two Million Dollars ($2,000,000) each occurrence.  If
          such CGL insurance  contains a general aggregate limit, it shall apply
          separately to the other described property location; and

               (iv) Business automobile  liability insurance with a limit of not
          less  than  One  Million  Dollars  ($1,000,000)  each  accident.  Such
          insurance  shall  cover  liability   arising  out  of  any  automobile
          (including own, hired and non-owned autos).

          Policies  providing coverage under this Agreement shall not be subject
     to  cancellation  or  material  change  except  upon thirty (30) days prior
     written  notice to AGC. AGC shall be named as an additional  insured on all
     policies providing  coverage under this Agreement.  Silverado shall provide

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<PAGE>

     evidence in the form of a certificate of such insurance  promptly following
     the execution of this  Agreement,  annually  thereafter,  and at such other
     times as AGC may reasonably request.

     D. The parties  mutually  agree that as soon as possible but not later than
thirty (30) days from the date of this Agreement, the transaction shall close on
a date and place convenient to the parties at which the following shall occur:

          (1) AGC shall execute, acknowledge and deliver to Silverado conveyance
     instruments  in the forms of the Deed and the Bill of Sale attached  hereto
     as Exhibits A and B respectively; and

          (2) Silverado shall deliver to AGC:

               -    Cash payment of  US$40,000  by certified  check or bank wire
                    transfer;

               -    Promissory  Note in the form of  Exhibit  C  hereto  for the
                    balance of the purchase price; and

               -    Security document satisfactory to AGC.

          (3) Parties will execute such other  documents as are  appropriate  to
     complete this transaction.

     Upon  delivery of documents  and the  purchase  price,  Silverado  shall be
responsible  for  any and all  obligations  relating  to the  dredge  and  other
described property and deemed to have assumed possession and orderly supervision
thereafter.

     IN WITNESS WHEREOF,  the parties have executed this Agreement this 30th day
of October, 1997.

                                                             ALASKA GOLD COMPANY

                                                           /s/ Michael P. Watson
                                                           ---------------------
                                                 By: Michael P. Watson V.P. Land
                                                     ---------------------------
    
                                                      SlLVERADO GOLD MINES, INC.

                                                            /s/ Garry L. Anselmo
                                                            --------------------
                                                     By: Garry L. Anselmo C.E.O.
                                                     ---------------------------

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