----

| A. | Ryan is the recorded and beneficial owner of 100% of those mining claims situated in the Dawson Mining District, Yukon Territory, more particularly described in Schedule “A” attached hereto, which are generally known and described as the “Ballarat Property” (collectively, the “Property”); and |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The Optionee desires to obtain an option from Ryan, and Ryan has agreed to grant to the Optionee an option to acquire an undivided 100% right, title and interest in and to the Property. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | “Advance Royalty” has the meaning set forth in Section 12. |
|--------|-----|------------------------------------------------------------------------|

|   | (b) | “Area of Interest” has the meaning set forth in Section 7; |
|--------|-----|------------------------------------------------------------------------|

|   | (c) | “Commercial Production” means, and is deemed to have been achieved, when the concentrator processing ores, for other than testing purposes, has operated for a period of 30 consecutive production days at an average rate of not less than 60% of design capacity or, if a concentrator is not erected on the Property, when ores have been produced for a period of 30 consecutive production days at the rate of not less than 60% of the mining rate specified in a feasibility study recommending placing the Property in Commercial Production; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | “Exchange” means the OTC Bulletin Exchange; |
|--------|-----|---------------------------------------------------------|

----

|   | (e) | “Expenditures” means all costs and expenses actually incurred by a party on or with respect to the Property, including, without limitation, monies expended in doing geophysical, geochemical and geological surveys, drilling, drifting and other surface and underground work, assaying and metallurgical testing and engineering; in preparing engineering or technical reports; in acquiring facilities for the Property and equipping the Property for and commencing Commercial Production, including, without limitation, all taxes, management, legal and land fees associated to the management of the Property, net smelter returns royalty and/or net profits interest payments or pre-payments as the case may be; in paying the fees, wages, salaries, travelling expenses, and fringe benefits (whether or not required by law) of all persons engaged in work with respect to and for the benefit of the Property; in paying for the food, lodging and other reasonable needs of such persons and including all costs at prevailing charge out rates for any personnel who from time to time are engaged directly in work on the Property, such rates to be in accordance with industry standards; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | "Lien” means any lien, security interest, mortgage, charge, encumbrance, or other claim of a third party, whether registered or unregistered, and whether arising by agreement, statute or otherwise; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | “Net Smelter Returns" means actual proceeds received by the Optionee from any mint, smelter, refinery or other purchaser from the sale of minerals, concentrates, metals (including bullion) or products from the Property and sold, after deducting from such proceeds the following charges levied by third parties to the extent that they are not deducted by a smelter, a milling facility or other purchaser in computing payment: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | reasonable cost of transportation and handling of the minerals, concentrates, metals (including bullion) or products from the Property to such smelter, milling facility or other purchaser; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any smelting, milling and refining charges, including penalties; and |
|--------|------|----------------------------------------------------------------------|

|   | (iii) | marketing and insurance on such minerals, concentrates, metals (including bullion) or products from the Property; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------|

|   | (h) | “Operator” means the party responsible for carrying out, or causing to be carried out, all work in respect of the Property during the currency of the Option; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | “Option” means the option granted to the Optionee by Ryan in accordance with Section 3.1. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (i) | he is of the age of majority and has full power, authority and capacity to enter into this Agreement and to carry out his obligations under this Agreement and is qualified to carry on business in the Yukon Territory; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the claims comprising the Property were properly recorded and filed with appropriate governmental agencies; (ii) all assessment work required to hold the claims comprising the Property has been performed and all governmental fees have been paid and all filings required to maintain the claims comprising the Property in good standing have been properly and timely recorded or filed with appropriate governmental agencies; (iii) he has no knowledge of conflicting mining claims; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | the Property is properly and accurately described in Schedule "A" hereto; |
|--------|-------|---------------------------------------------------------------------------|

|   | (iv) | Ryan is the owner of a 100% registered and beneficial interest in the Property and the Property is free and clear of all Liens and third party interests; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there has been no known spill, discharge, deposit, leak, emission or other release of any contaminant, pollutant, dangerous or toxic substance, or hazardous waste on, into, under or affecting the Property and no such contaminant, pollutant, dangerous or toxic substance, or hazardous waste is stored in any type of container on, in or under the Property, except as necessary to carry on exploration on the Property; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | there are no pending or threatened actions, suits, claims or proceedings regarding the Property. |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | (a) | it is a corporation duly incorporated and organised and validly existing under the BusinessCorporations Act (Nevada); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (b) | it has full corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement and is qualified to carry on business in its jurisdiction of incorporation; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | it has been duly authorized to enter into, and to carry out its obligations under, this Agreement and no obligation of it in this Agreement conflicts with or will result in the breach of any term in: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | its notice of articles or articles; or |
|--------|-----|----------------------------------------|

|   | (ii) | any other agreement to which it is a party. |
|--------|------|---------------------------------------------|

| 3.2 | In order to maintain the Option in good standing, the Optionee must: |
|-----|----------------------------------------------------------------------|

|   | (a) | pay to Ryan a total of $400,000: |
|--------|-----|----------------------------------|

|   | (i) | $25,000, no later than Mar.15th, 2010; |
|--------|-----|----------------------------------------|

|   | (ii) | $50,000 on or before Feb.15th, 2011; |
|--------|------|--------------------------------------|

|   | (iii) | $75,000 on or before Feb.15th, 2012; |
|--------|-------|--------------------------------------|

----

|   | (iv) | $100,000 on or before Feb.15th, 2013; and |
|--------|------|-------------------------------------------|

|   | (v) | $150,000 on or before Feb.15th, 2014; |
|--------|-----|---------------------------------------|

|   | (b) | incur a total of $1,260,000 in Expenditures: |
|--------|-----|----------------------------------------------|

|   | (i) | in the amount of $10,000 on or before March 31st, 2010; |
|--------|-----|---------------------------------------------------------|

|   | (ii) | in the additional amount of $100,000 on or before Feb.15th,2011; |
|--------|------|------------------------------------------------------------------|

|   | (iii) | in additional amount of $250,000 on or before Feb.15th, 2012; |
|--------|-------|---------------------------------------------------------------|

|   | (iv) | in the additional amount of $400,000 on or before Feb.15th, 2013; and |
|--------|------|-----------------------------------------------------------------------|

|   | (v)  | in the additional amount of $500,000 on or before Feb.15th, 2014 |
|--------|-----------|------------------------------------------------------------------|

|   | (i) | 250,000 common shares of the Optionee on or before Feb.15th, 2010; |
|--------|-----|--------------------------------------------------------------------|

|   | (ii) | an additional 250,000 common shares of the Optionee on or before Feb.15th, 2011; |
|--------|------|----------------------------------------------------------------------------------|

|   | (iii) | an additional 250,000 common shares of the Optionee on or before Feb.15th, 2012; |
|--------|-------|----------------------------------------------------------------------------------|

|   | (iv) | an additional 250,000 common shares of the Optionee on or before Feb.15th, 2013; and |
|--------|------|--------------------------------------------------------------------------------------|

|   | (v) | an additional 250,000 common shares of the Optionee on or before Feb.15th, 2014. |
|--------|-----|----------------------------------------------------------------------------------|

|   | A bonus of 500,000 common shares of the Optionee must be issued to Ryan if exploration costs exceed $2,500,000 Canadian dollars. The shares must be issued within 30 days of this expenditure total being reached. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | not do any other act or thing which would or might in any way adversely affect the rights of the Optionee hereunder; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (b) | make available to the Optionee and its representatives all available relevant technical data, geotechnical reports, maps, digital files and other data with respect to the Property in Ryan’s possession or control, including soil samples, and all records and files relating to the Property and permit the Optionee and its representatives at their own expense to take abstracts therefrom and make copies thereof; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | promptly provide the Optionee with any and all notices and correspondence received by Ryan from government agencies in respect of the Property; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | cooperate fully with the Optionee in obtaining any surface and other rights on or related to the Property as the Optionee deems desirable; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | grant to the Optionee, its employees, agents and independent contractors, the sole and exclusive right and option to: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (iii) | do such prospecting, exploration, development or other mining work thereon and thereunder as the Optionee in its sole discretion may consider advisable; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | bring and erect upon the Property such equipment and facilities as the Optionee may consider advisable; and |
|--------|------|-------------------------------------------------------------------------------------------------------------|

|   | (v) | remove from the Property and dispose of material for the purpose of testing. |
|--------|-----|------------------------------------------------------------------------------|

----

|   | (a) | keep the Property free and clear of all Liens arising from its operations hereunder (except liens for taxes not yet due, other inchoate liens or liens contested in good faith by the Optionee) and proceed with all diligence to contest or discharge any Lien that is filed; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | pay or cause to be paid all workers and wage earners employed by it or its contractors on the Property, and pay for all materials, services and supplies purchased or delivered in connection with its activities on or with respect to the Property; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | permit Ryan, or its representatives duly authorized by it in writing, at its own risk and expense, access to the Property at all reasonable times and to all records and reports, if any, prepared by the Optionee in connection with work done on or with respect to the Property, and furnish Ryan within 60 days of the completion of a program on the Property with a report with respect to the work carried out by the Optionee on or with respect to said program and material results obtained; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | conduct all work on or with respect to the Property in a careful and minerlike manner and in compliance with all applicable federal, provincial and local laws, rules, orders and regulations, and indemnify and save Ryan harmless from any and all claims, suits, demands, losses and expenses including, without limitation, with respect to environmental matters, made or brought against it as a result of work done or any act or thing done or omitted to be done by the Optionee on or with respect to the Property; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | provide to Ryan within 60 days of the end of each calendar quarter during which any Expenditures have been incurred comprehensive written reports showing the operations carried out and the results obtained and detailing the Expenditures incurred together with evidence of payment thereof. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | leave the Property: |
|--------|-----|---------------------|

|   | (i) | in good standing and free and clear of all Liens arising from its operations hereunder, |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (ii) | in a safe and orderly condition, and |
|--------|------|--------------------------------------|

|   | (iii) | in a condition which is in compliance with all rules and orders of governmental authorities with respect to reclamation and rehabilitation of all disturbances resulting from the Optionee's use and occupancy of the Property; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | deliver to Ryan, within 90 days of a written request therefor, a report on all work carried out by the Optionee on the Property (limited to factual matters only) together with copies of all sample location maps, drillhole assay logs, assay results and other technical data compiled by the Optionee or its representatives with respect to the Property; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | have the right (and, if requested by Ryan within 90 days of the effective date of termination, the obligation) to remove from the Property within one year of termination of this Agreement all facilities erected, installed or brought upon the Property by or at the instance of Optionee, failing which, the facilities shall become the property of Ryan. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the arbitration shall be conducted by one arbitrator. Within seven (7) days of written notice to the other party of a dispute, the parties shall attempt to agree upon the person who is to act as the arbitrator. If the parties fail to agree on the arbitrator within this time period, such arbitrator shall be appointed by a Justice of the Yukon Supreme Court; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | the arbitrator shall have such technical and other qualifications as may be reasonably necessary to enable the arbitrator to properly adjudicate upon the dispute; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the arbitrator shall have the power to obtain the assistance, advice or opinion of any expert as the arbitrator may think fit and shall have the discretion to act upon any assistance, advice or opinion so obtained; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the arbitrator shall be instructed that time is of the essence in proceeding with his or her determination of the dispute; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | (v) | unless otherwise decided by the arbitrator, each party shall be responsible for any costs associated with its legal and other advisors. The costs associated with the arbitrator, including any expert retained by the arbitrator, and any facility in which the arbitration takes place, shall be shared equally by the parties; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the arbitration shall take place in Whitehorse, Yukon; and |
|--------|------|------------------------------------------------------------|

|   | (vii) | the arbitration decision shall be given in writing and shall be final and binding on the Parties, and shall deal with questions of the costs of the arbitration and all matters related thereto. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                      | Witness:                                                           |
|-------------------------------------------|-------------------------------------------------------------------------|
| _______________________________SHAWN RYAN | _______________________________(Signature)                         |
|                                      | _______________________________(Print Name)                        |
|                                      | _______________________________(Address)_______________________________ |

----

| District | GrantNumber | RegType | ClaimName | ClaimNbr | Status | NTS MapNumber |
|----------|-------------|---------|-----------|----------|--------|---------------|
| Dawson   | YC89473     | Quartz  | Rat       | 1        | Active | 115J15        |
| Dawson   | YC89474     | Quartz  | Rat       | 2        | Active | 115J15        |
| Dawson   | YC89475     | Quartz  | Rat       | 3        | Active | 115J15        |
| Dawson   | YC89476     | Quartz  | Rat       | 4        | Active | 115J15        |
| Dawson   | YC89477     | Quartz  | Rat       | 5        | Active | 115J15        |
| Dawson   | YC89478     | Quartz  | Rat       | 6        | Active | 115J15        |
| Dawson   | YC89479     | Quartz  | Rat       | 7        | Active | 115J15        |
| Dawson   | YC89480     | Quartz  | Rat       | 8        | Active | 115J15        |
| Dawson   | YC89481     | Quartz  | Rat       | 9        | Active | 115J15        |
| Dawson   | YC89482     | Quartz  | Rat       | 10       | Active | 115J15        |
| Dawson   | YC89483     | Quartz  | Rat       | 11       | Active | 115J15        |
| Dawson   | YC89484     | Quartz  | Rat       | 12       | Active | 115J15        |
| Dawson   | YC89485     | Quartz  | Rat       | 13       | Active | 115J15        |
| Dawson   | YC89486     | Quartz  | Rat       | 14       | Active | 115J15        |
| Dawson   | YC89487     | Quartz  | Rat       | 15       | Active | 115J15        |
| Dawson   | YC89488     | Quartz  | Rat       | 16       | Active | 115J15        |
| Dawson   | YC89489     | Quartz  | Rat       | 17       | Active | 115J15        |
| Dawson   | YC89490     | Quartz  | Rat       | 18       | Active | 115J15        |
| Dawson   | YC89491     | Quartz  | Rat       | 19       | Active | 115J15        |
| Dawson   | YC89492     | Quartz  | Rat       | 20       | Active | 115J15        |
| Dawson   | YC89493     | Quartz  | Rat       | 21       | Active | 115J15        |
| Dawson   | YC89494     | Quartz  | Rat       | 22       | Active | 115J15        |
| Dawson   | YC89495     | Quartz  | Rat       | 23       | Active | 115J15        |
| Dawson   | YC89496     | Quartz  | Rat       | 24       | Active | 115J15        |
| Dawson   | YC89497     | Quartz  | Rat       | 25       | Active | 115J15        |
| Dawson   | YC89498     | Quartz  | Rat       | 26       | Active | 115J15        |
| Dawson   | YC89499     | Quartz  | Rat       | 27       | Active | 115J15        |
| Dawson   | YC89500     | Quartz  | Rat       | 28       | Active | 115J15        |
| Dawson   | YC95581     | Quartz  | Rat       | 29       | Active | 115J15        |
| Dawson   | YC95582     | Quartz  | Rat       | 30       | Active | 115J15        |
| Dawson   | YC95583     | Quartz  | Rat       | 31       | Active | 115J15        |
| Dawson   | YC95584     | Quartz  | Rat       | 32       | Active | 115J15        |
| Dawson   | YC95585     | Quartz  | Rat       | 33       | Active | 115J15        |
| Dawson   | YC95586     | Quartz  | Rat       | 34       | Active | 115J15        |
| Dawson   | YC95587     | Quartz  | Rat       | 35       | Active | 115J15        |
| Dawson   | YC95588     | Quartz  | Rat       | 36       | Active | 115J15        |
| Dawson   | YC95589     | Quartz  | Rat       | 37       | Active | 115J15        |
| Dawson   | YC95590     | Quartz  | Rat       | 38       | Active | 115J15        |

----

----