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EXHIBIT 10.4

MINING LEASE AGREEMENT

The Mining Lease Agreement (Agreement) is made and entered
  into by and between Shoshone Silver Mining Co.,an Idaho corporation,
  and Sterling Mining Co., an Idaho corporation.

RECITALS

|A. | Shoshone is the owner of and in possession of certain unpatented
      mining claims situated in Shoshone County, Idaho described in Exhibit A
      attached to and by this reference incorporated in this agreement.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                       
|B. | Shoshone desires to grant to Sterling certain rights in and to a
      portion of two (2) unpatented mining claims.                                                                                                   
|   |                                                                                                                                                                                                                       
|C. | Sterling desires to examine the mineral potential of a portion of two
      (2) unpatented mining claims and possibly to develop commercial mines
      thereon.                                                      

NOW, THEREFORE, in consideration of their mutual promises, the
parties agree as follows:

|1. | Definitions: The following defined terms, wherever
      used in this Agreement, shall have the meanings described below:
|-- | -------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                          
|   | 1.1.                                                                                                                     
|   |                                                                                                                          
|   | 1.2.                                                                                                                     
|   |                                                                                                                          
|   | 1.3.                                                                                                                     
|   |                                                                                                                          
|   | 1.4.                                                                                                                     
|   |                                                                                                                          
|   | 1.5.                                                                                                                     
|   |                                                                                                                          
|   | 1.6.                                                                                                                     
|   |                                                                                                                          
|   | 1.7.                                                                                                                     
|   |                                                                                                                          
|   | 1.8.                                                                                                                     

1

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| | 1.9.  | Product shall mean: (a) all Ore shipped and sold prior to
      treatment; and (b) all concentrates, precipitates and products produced
      by or for Sterling from Ore.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                             
| | 1.10. | Property shall mean a portion of an unpatented mining claim
      described in Exhibit A of this Agreement.                                                               
| |       |                                                                                                                                                                             
| | 1.11. | Waste shall mean all earth, rock or any other material mined
      or removed from the Property during the term of this Agreement, but which
      is not Ore.            

|2. | Grant of Exploration Privilege, Leases, Uses and Water Rights:
|-- | --------------------------------------------------------------
|   |                                                               
|   | 2.1.                                                          
|   |                                                               
|   | 2.2.                                                          
|   |                                                               
|   | 2.3.                                                          

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|   |                                                                                                                                                                                                                                   | granted the right, insofar as Shoshone lawfully may
      grant the right, to divert streams, to remove lateral and subjacent
      supports, to use, cave, subside, consume, or destroy the surface of any
      part thereof, to deposit earth, rocks, waste lean Ore and materials on any
      part of the Property, to leach the same, and to commit waste.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 2.4.                                                                                                                                                                                                                              | Water Rights: Shoshone leases to Sterling all of Shoshones
      water rights appurtenant to the Property. Subject to the regulations of
      the state in which the Property is situated concerning the appropriation
      and taking of water, Sterling shall have the right to appropriate and use
      water, to drill wells for the water on the Property and to lay and
      maintain all necessary water lines as may be required by Sterling in its
      operations on the Property.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|3. | Relationship of the Parties:                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 3.1.                                                                                                                                                                                                                              | Limitation: Sterlings performance of its duties and
      obligations under this Agreement shall not obligate Sterling to perform
      any additional services to Shoshone. Sterling may, without notice to
      Shoshone, explore, conduct geological, geochemical and geophysical
      investigations, sample, drill or otherwise explore for, in the manner and
      to the extent that Sterling, in its sole discretion, deems advisable, to
      locate and develop Ores, Minerals and Metal in and on the Property.
      Sterling may, in its sole discretion and without notice to Shoshone
      terminate its exploration, development, mining, and processing activities
      on the Property and commence reclamation as required by applicable laws,
      regulations and the terms and conditions of any governmental plan of
      operations, permit, license or approval. Only the express duties and
      obligations described in this Agreement are binding upon Sterling.
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 3.2.                                                                                                                                                                                                                              | No Partnership: This Agreement shall not be deemed to
      constitute any party, in its capacity as such, the partner, agent or legal
      representative of any other party, or to create any partnership, mining
      partnership or other partnership relationship, or fiduciary relationship
      between them, for any purpose whatsoever.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 3.3.                                                                                                                                                                                                                              | Competition: Except as expressly provided in this Agreement
      each party shall have the free and unrestricted right independently to
      engage in and receive the full benefits of any and all business endeavors
      of any sort whatsoever outside the Property or outside the scope of this
      Agreement whether or not competitive with the endeavors contemplated
      herein without consulting the other or inviting or allowing the other
      therein. In particular, without limiting the foregoing, neither party to
      this Agreement shall have any obligation to the other as to any
      opportunity to acquire any money, property, interest or right offered to
      it outside the scope of this Agreement.                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4. | Term: The term of this Agreement shall be from the
      Effective Date for twenty (20) years unless terminated or canceled, and
      for so long thereafter as Sterling produces or processes minerals from the
      Property.
|   |                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|5. | Minimum Work Obligations:                                                                                                                                                                                                        

3

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|   | 5.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Sterling shall undertake a four (4) year Exploration and Mining
      Operation project, in such manner as Sterling in its sole discretion shall
      determine, on the Property. Such Exploration and Mining Operations shall
      begin within five (5) years of the Effective Date of this Agreement. The
      minimum amount of expenditures shall be $50,000 in the first year, $75,000
      in the second year and $100,000 in each of the third and fourth years.
      Sterling may choose to forego Exploration and Mining Operation in any or
      all years provided cash payments equal to the minimum expenditures are
      tendered to Shoshone by the end of the Lease Year in which Exploration and
      Mining Operation would have been performed.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|6. | Payments: Sterling shall make the following payment
      to Shoshone:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | 6.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Production Royalty: Sterling shall pay to Shoshone a production
      royalty equal to ten percent (10%) of the Net Proceeds from the production
      of Minerals from the Property and $1,000 per year minimum Net Proceed
      Royalty. Payment of Net Proceed Royalty shall commence at the beginning of
      the fifth Lease Year. Payments of the Net Proceeds shall be made in
      accordance with the provisions of Exhibit B hereto.                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | 6.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Method of Payment: All payments made by Sterling to Shoshone
      shall be paid in accordance with the provisions of Exhibit B hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | 6.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Audit: Shoshone or its authorized agents shall have a right to
      audit and inspect Sterlings accounts and records used in calculating
      production royalty payments, which right may be exercised as to each
      payment at any reasonable time during a period of ninety (90) days from
      the date on which the payment was made by Sterling. If no such audit is
      performed during such period, such accounts, records and payments shall be
      conclusively deemed to be true, accurate and correct.                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|7. | Compliance with the Law: The exercise by Sterling of
      any rights, privileges, grants and uses under this Agreement shall confirm
      at all times with the applicable laws and regulations of the state in
      which the Property is situated and the United States of America. Sterling
      shall be fully responsible for compliance with all applicable federal,
      state and local reclamation statutes, regulations and ordinances relating
      to such work, all at Sterlings cost, and Sterling shall indemnify and
      hold harmless Shoshone from any and all claims, assessments, fines and
      actions arising from Sterlings failure to perform the foregoing
      obligations. Shoshone agrees to cooperate with Sterling in Sterlings
      application for governmental licenses, permits and approvals, the costs of
      which shall be borne by Sterling.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|8. | Mining Practices; Inspection of Data: Reports:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | 8.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Inspection of Data: During the term of this Agreement, Sterling
      shall have the right to examine non-interpretive factual data regarding
      the Property in Sterlings possession during reasonable business hours and
      upon prior notice, provided, however, that the rights of Shoshone to
      examine such data shall be exercised in a manner such that such inspection
      does not unreasonable interfere with the operations of Sterling.                                                                                                                                                                                                                                                                                                          

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|    | 8.2.                                                                                                                                                                                                                                 | Reports: Sterling shall deliver to Shoshone, on or before the
      nineteenth (19th) day after the end of each calendar year, a
      summary report of all exploration or development work conducted by
      Sterling on the Property for the previous year. Notwithstanding the
      foregoing, Sterling shall not be required in its reports to disclose
      proprietary information or information concerning, or which might tend to
      reveal, processes, techniques or equipment which Sterling is under a
      contractual obligation not to reveal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 8.3.                                                                                                                                                                                                                                 | Measurement Analysis: Sterling shall measure Ore and grade and
      take and analyze samples in accordance with industry practice, and shall
      keep accurate records thereof as a basis for computing the production
      royalty payments. These records shall be available for inspection and copy
      by Shoshone at all reasonable times subject to the provisions of this
      Agreement regarding accounts, records and payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|9.  | Measurement Analysis: Sterling shall keep accurate
      records of the sale or shipment of Product from the Property, and these
      records shall be available for inspection and copy by Shoshone at all
      reasonable times.
|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|10. | Consolidation of Operations:                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 10.1.                                                                                                                                                                                                                                | Cross Mining: Sterling is granted the right to mine and remove
      Ore, Minerals, Product and materials from the Property through or by means
      of shafts, openings or pits which may be in or upon adjoining or nearby
      lands owned or controlled by Sterling. Sterling may use the Property and
      any shafts, openings and pits on the Property for the mining, removal,
      treatment and transportation of ores and materials from adjoining or
      nearby lands, or for any purpose connected with such activities. Sterling
      shall have the right to treat or process, in any manner (including in situ
      or solution mining), any Ore, Minerals, material and products mined or
      produced from the Property and from other lands. Such treatment may be
      conducted wholly or in part at facilities established or maintained on the
      Property of on other lands. The tailings and residue from such treatments
      shall be deemed waste and may be deposited on the property or on other
      lands and Sterling shall have no obligation to remove such waste from the
      property, nor to return to the property waste resulting from the
      processing of ores or materials from the property.
|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 10.2.                                                                                                                                                                                                                                | Unitization: Sterlings operations on the Property and its
      operations on other lands may be conducted upon the Property and upon any
      and all such other lands as a single mining operation, to the same extent
      as if all such properties constituted a single tract of land.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 10.3.                                                                                                                                                                                                                                | Boundary Areas: Shoshone waives all rights, statutory and
      otherwise, to require Sterling to maintain adjacent support for the
      Property and any contiguous property owned, leased, or controlled by
      Sterling or any other party. Shoshone waives its right to prohibit
      Sterling from mining within any minimum distance of any boundary line of
      the Property and contiguous lands and grants to Sterling the authority to
      enter agreements with the owners of contiguous properties so as to allow
      mining of all ores located on or under the boundary of the Property.
      Sterling shall secure the necessary consents and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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|    | agreements from the owners of contiguous properties and the
      requisite approvals of any governmental authorities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|11. | Stockpiling:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | 11.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | 11.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|12. | Mixing: Sterling shall have the right to commingle
      Ore from the Property or from other properties. Before commingling, the
      Ore from the Property and other ore shall be measured and sampled by
      Sterling in accordance with sound mining and metallurgical practice for
      mineral content. Representative samples of Ore and other ores shall be
      retained by Sterling, and assays of these samples shall be made before
      commingling to determine the mineral content of each ore. Detailed records
      shall be kept by Sterling showing measurements, assays of mineral content
      and gross mineral content of the Ore and other ore and such records shall
      be made available to Shoshone at all reasonable times for examination and
      copy.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13. | Treatment: Sterling shall have the right, but shall
      not be required, to beneficiate, concentrate, smelt, refine, leach and
      otherwise treat, in any manner, any Ore, Product and materials mined or
      produced from the Property and from other lands. Such treatment may be
      conducted wholly or in part at a plant or plants established or maintained
      on the Property or on other lands. The tailings and residue from such
      treatment may be deposited on the property or on other lands. Shoshone
      shall have no right, title or interest in said tailings or residue.                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|14. | Scope of Agreement: This Agreement shall extend to
      and include only the Property described in this Agreement, and the
      Exhibits of this Agreement and all covenants, obligations, representations
      and warranties as herein provided for.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|15. | Compliance with Federal Land Policy and Management Act,
      Annual Assessment Work, Patent Application, and Conversion of Claims:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | 15.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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|      | the mining claims are subject to invalidation or forfeiture as a
      result of any failure to comply with the Federal Land Policy and
      Management Act of October 21, 1976 (as amended) (FLPMA) and the
      regulations promulgated there under or a result of any other act or
      omission of Shoshone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|15.2. | Annual Assessment Work: Beginning with the annual assessment
      work period ending September 1, and for each annual assessment work period
      commencing during the term of this Agreement, Sterling shall perform for
      the benefit of the Property work of a type customarily deemed applicable
      as assessment work and of sufficient value to satisfy the annual
      assessment work requirements of all applicable federal, state and local
      laws, regulations and ordinances, and shall prepare evidence of the same
      in a form proper for recordation and filing, and shall timely record
      and/or file such evidence in the appropriate federal, state and local
      office as required by applicable federal, state and local laws,
      regulations and ordinances, provided that if Sterling elects to terminate
      this Agreement before July 1 of any year, it shall have no further
      obligation hereunder to perform annual assessment work no to prepare,
      record and/or file evidence of the same with respect to that year.                                                                                                                                                                                 
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|15.3. | Patent Application: Sterling may, at its expense, seek to
      patent, in Shoshones name, any and all of the unpatented mining claims
      part of the Property. Shoshone pledges full cooperation to Sterling in
      executing any documents necessary to accomplish patenting if so desired by
      Sterling. If Sterling begins patent proceedings and Sterling desires to
      discontinue them, or if this Agreement is terminated while patent
      proceedings are pending, Sterling shall have no further obligation with
      respect thereto, except to pay any unpaid expenses accrued in such
      proceedings prior to its request to discontinue, or prior to termination,
      whichever occurs first. If the patent application results in cancellation
      of any unpatented claims, Sterling shall not be liable for any claims,
      losses or damages resulting from such cancellation. Shoshone appoints
      Sterling as Shoshones lawful attorney-in-fact for the purpose of patent
      applications. All patents shall be part of the Property and the parties
      will promptly after issuance of each patent execute and deliver an
      addendum to this Agreement and a memorandum of this Agreement to such
      effect.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|15.4. | Conversion of Claims: If the mining laws applicable to the
      unpatented mining claims subject to this Agreement are amended or
      repealed, and in either case the interests of Shoshone in the unpatented
      mining claims are converted or authorized to be converted, the interest of
      Sterling in the unpatented mining claims, as amended or converted, shall
      be subject to and shall constitute the Property subject to this Agreement.
      If pursuant to any amendment of the mining laws Shoshone is granted the
      right to convert its interest in the unpatented mining claims comprising
      the Property to a permit, license, lease, or other right or interest,
      Sterling may, in Sterlings discretion and in Shoshones name, elect such
      conversion. Shoshone shall bear the cost of the application for such
      conversion, however, Sterling shall, during the term of this Agreement,
      pay all periodic payments required to preserve or maintain such converted
      interest, including, without limitation, permit, license, lease,                                                                                                                                                                

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|    | holding fees, or other periodic payments. Any and all production
      royalties or fees based on or assessed against production of Minerals from
      the Property which are paid by Sterling to the United States shall be credited
      in Sterlings favor against Sterlings production royalty payment
      obligations owed to Shoshone. On the grant or issuance of such converted
      interest or rights the parties shall execute and deliver an addendum to
      this Agreement by which such converted interest or rights are expressly
      made subject to this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|16. | Liens and Notices of Non-Responsibility: Shoshone and
      Sterling agree to keep the Property at all times free and clear of all liens,
      charges and encumbrances of any and every nature and description done, made
      or caused by them, and to pay all indebtedness and liabilities incurred
      by or for them which may or might become a lien, charge or encumbrance against
      the Property before such indebtedness and liabilities shall become a lien,
      charge or encumbrance; except that Sterling need not discharge or release
      any such lien, charge or encumbrance so long as Sterling is contesting the
      same. The parties agree that Shoshone shall be informed immediately of the
      execution of this Agreement by Sterling in order that Shoshone can property
      and timely record a notice of non-responsibility in the office of the county
      recorder of the county in which the Property is located. Nothing herein
      shall be construed to prevent Sterling from Assigning, pledging, encumbering
      or otherwise transferring its interest in this Agreement or the Property
      for the purpose of acquiring financing for its activities or operations
      on the Property, or for any other purpose, which acts are expressly authorized.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|17. | Taxes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | 17.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | 17.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | 17.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | 17.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|18. | Inspection: Shoshone or Shoshones duly authorized
      representatives shall be permitted to enter on the Property, and the workings
      of Sterling thereon at all reasonable times for the purpose of inspection
      and Shoshone shall have the right to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

8

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|    | take samples of material from the Property for the purpose
      of assuring property and accurate determination and payment of the
      production royalty, but they shall enter on the Property at their own risk
      and in such a manner as no to unreasonably hinder, delay or interfere with
      the operations of Sterling. Shoshone shall indemnify and hold Sterling
      harmless from any and all damages, claims or demands arising out of injury
      to Shoshone, Shoshones agents or representatives, or any of them, on the
      Property or on the approaches thereto.                   
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|19. | Title Information and Data: At any time during the
      term hereof, upon written request by Sterling, Shoshone forthwith shall
      obtain and deliver to Sterling copies of all title documents affecting the
      Property which Shoshone has in its possession or available to it,
      including copies of any plats and field notes of surveys of the Property.
      Shoshone agrees to make available to Sterling copies of any exploration
      data, assays, logs, maps, geological, geochemical and geophysical surveys
      and reports that Shoshone may have in its possession, without charge.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|20. | Representation of Title:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | 20.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | 20.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|21. | Covenant, Warranties and Representations: Each of the
      parties covenants, warrants and represents for itself as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | 21.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

9

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|    | 21.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | No Pending Proceedings: That there are no lawsuits or
      proceedings pending or threatened which affect its ability to perform the
      terms of this Agreement.                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 21.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Authority: That it has the full right, title and authority to
      enter into this Agreement and to perform the same in accordance with
      terms, and neither this Agreement, nor its performance, violates or
      constitutes a default under the provisions of any other agreement to which
      it is a party or to which it is bound.                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 21.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Commissions: Finders Fees: That it has not utilized the
      services of a broker or a finder in the negotiation and/or execution of
      this Agreement, and that it has not incurred any obligation to pay a
      brokers commission or finders fee upon the execution and consummation
      hereof.                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 21.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Costs: That it shall pay all costs and expenses incurred or to
      be incurred by it in negotiating and preparing this Agreement and in
      closing and carrying out the transactions contemplated by this Agreement.                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|22. | Shoshones Covenants, Representations and Warranties:
      Shoshone covenants, represents and warrants as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 22.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Noninterference: Shoshone hereby covenants that Shoshone will
      not do or permit to be done any act, which would or might hinder or impair
      the rights of Sterling to exercise any right granted to Sterling under
      this Agreement or to acquire all right, title and interest in and to the
      Property.                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 22.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Estoppel Certificate: On written request from Sterling, and so
      long as Sterling is not in default under this Agreement, Shoshone will
      execute and deliver to Sterling an estoppel certificate, in form
      acceptable to Sterling, whereby Shoshone confirms that the Agreement is in
      full force and effect and that there are no defaults by Shoshone or
      Sterling under the lease.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 22.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Environmental Conditions: Shoshone is not aware of nor has it
      received notice from any governmental agency of any condition existing on
      the Property or created by Shoshone which is or might be a violation of
      any applicable law, regulation or ordinance.                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|    | 22.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Non-Foreign Status: Shoshone is not a foreign person as
      defined under Section 1445(f) of the Internal Revenue Code.                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                              
|23. | Termination by Shoshone: In the event of any default
      or failure by Sterling to comply with any of the covenants, terms or
      conditions of this Agreement, Shoshone shall be entitled to give Sterling
      written notice of the default, specifying details of the same. If such
      default is not remedied within sixty (60) days after receipt of the notice
      provided the same can reasonably be done within that time, or, if not, if
      Sterling has not within that time commenced action to cure the same or
      does not after such commencement diligently prosecute such action to
      completion, then this Agreement shall be deemed canceled and terminated
      effective on the sixtieth (60th) day after the receipt of the
      notice, provided, that Shoshone, prior to the expiration of said sixty
      (60) day notice period, has re-conveyed the Property to the original
      owners, their heirs or assigns. Termination shall not be based on default
      or on a failure to remedy the same,

10

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|    | which results from any cause beyond the reasonable control of
      Sterling, including, without limitation, the force major provisions of
      this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|24. | Termination by Sterling: Sterling may terminate this Agreement
      at any time, for any reason by giving written notice to Shoshone. Sterling
      agrees that upon termination it shall make any and all required payments
      and remunerations to Shoshone based on a full Lease Year and not on a
      pro-rated basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|25. | Removal of Equipment: Sterling shall have six (6) months after
      termination of this Agreement to remove from the Property all buildings,
      structures, and equipment, and to restore or diligently act to restore the
      property to an environmentally acceptable state as may be required by
      local, state or Federal authorities. Any buildings, structures or
      equipment, including personal property, remaining on the Property after
      the time described in this Section shall be deemed to be owned by Shoshone
      with no further action on part of the parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|26. | Data: Upon termination of this Agreement Shoshone shall have
      the right to request a copy of all non-interpretive factual data regarding
      the Property in Sterlings possession at the time of termination. Sterling
      agrees that it will within thirty (30) days after receipt of a timely
      written demand by Shoshone deliver to Shoshone a copy of all such
      non-interpretive factual data. Sterling shall have no liability on account
      of any such information received or acted on by Shoshone or any other
      party to whom Shoshone delivers such information. Shoshone must exercise
      its right to request the information referred to herein in writing and
      must give such written request within thirty (30) days after termination
      of this Agreement, and absent such timely written demand, Sterling shall
      have no obligation under this Section to provide such information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|27. | Confidentiality: The data and information, including the terms
      of this Agreement, coming into the possession of Shoshone by virtue of
      this Agreement, shall be deemed confidential and shall not be disclosed to
      outside third parties except as may be required to publicly record or
      protect title to the Property or to publicly announce and disclose
      information under the laws and regulations of the United States or any
      state or local government or any country, or under the rules land
      regulations of any stock exchange on which stock of any party, or the
      parent or affiliates of any party, is listed. Shoshone agrees with respect
      to any public announcements (other than those exceptions set forth in the
      preceding sentence) including the announcement of the execution of this
      Agreement, if any, to inform Sterling of the content of the announcement
      or disclosure if the other parties so desire, except that in the event any
      party anticipates selling or assigning all or a portion of its interest or
      negotiations to procure loans from third parties are undertaken, such
      party shall have the right to furnish information-nation to the party to
      which such conveyance or assignment is anticipated or with whom such
      negotiations for loans are undertaken, upon obtaining from such party an
      agreement to hold confidential any information so furnished. Nothing in
      this Agreement shall limit or restrict the right of Sterling to provide,
      deliver or release to parent companies, companies with a common parent,
      subsidiary companies, affiliated or related companies and/or co-venturers
      the data and information, including the terms of this Agreement, coming
      into the possession of Sterling by virtue of this Agreement.

11

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|28. | Force Majeure: The respective obligations of either party,
      except Sterlings obligation to maintain the insurance and perform the
      annual assessment work required under this Agreement, shall be suspended
      during the time and to the extent that such party is prevented from
      compliance, in whole or in part, by war or war conditions, actual or
      potential, earthquake, fire, flood, strike, labor stoppage, accident,
      riot, unavoidable casualty, act or restraint, present or future, of any
      lawful authority, statute, governmental regulation or ordinance,
      environmental restrictions or conditions, permit or license approvals, act
      of God, act of public enemy, delays in transportation, or other cause of
      the same or other character beyond the reasonable control of such party.                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|29. | Disputes not to Interrupt Operations: Disputes or differences
      between the parties shall not interrupt performance of this Agreement or
      the continuation of Sterlings operations. In the event of any dispute or
      difference, operations may be continued, and settlements and payments may
      be made in the same manner as before such dispute or difference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|30. | Memorandum Agreement:Upon execution of this Agreement, the
      parties shall execute and cause to be delivered a short form of this
      Agreement which shall be recorded in the office of the recorder of each
      county wherein all or part of the Property is located. The execution and
      recording of the memorandum of agreement shall not limit, increase or in
      any manner affect any of the terms of this Agreement, or any rights,
      interest or obligations of the parties.                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|31. | Notices:Any notices required or authorized to be given by this
      Agreement shall be in written form. Any notices required or authorized to
      be given by this Agreement may be sent by registered or certified
      delivery, postage prepaid and return receipt requested, addressed to the
      property party at the following address or such address as the party shall
      have designated to the other parties in accordance with this Section. Any
      notice required or authorized to be given by this Agreement shall be
      deemed to have been sufficiently given or served in written form if mailed
      as provided herein, personally delivered to the proper party, or sent by
      telex, telegraph, facsimile or other wire service, and actually received
      by such party. Such notice shall be effective on the date of receipt by
      the addressee party.

If to Shoshone:

Shoshone Silver Mining Co. P.O. Box
686 Wallace, ID 83873

If to Sterling:

Sterling Mining Co.P.O. Box
2838Coeur dAlene, ID 83816

|32. | Binding Effect of Obligations:This Agreement shall be binding
      upon and insure to the benefit of the respected parties and their heirs,
      successors and assigns.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                           
|33. | Whole Agreement:The parties agree that the whole agreement
      between them is written in this Agreement and in a memorandum of agreement
      of even date which is   

12

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|    | intended to be recorded. There are no terms or conditions, express or
      implied, other than expressly stated in this Agreement. This Agreement may
      be amended or modified only by an instrument in writing, signed by the
      parties with the same formality as this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|34. | Governing Law: This Agreement shall be construed and enforced
      in accordance with the laws of the state of Idaho.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|35. | Multiple Counterparts:This Agreement may be executed in any
      number of counterparts, each of which shall be deemed to be an original,
      but all of which shall constitute the same Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|36. | Severability:If any part, term or provision of this Agreement
      is held by a court of competent jurisdiction to be illegal or in conflict
      with any law of the United states or any state, the validity of the
      remaining portions or provisions shall not be affected and the rights and
      obligations of the parties shall be construed and enforced as if the
      Agreement did not contain the particular part, term or provision held to
      be invalid.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|37. | Bankruptcy or Insolvency Proceedings by Sterling:If Sterling
      be adjudged bankrupt or insolvent or shall make an assignment for benefit
      of creditors, this Agreement shall thereupon immediately terminate, and it
      being further understood and agreed that this Agreement shall not be
      assignable by any process of law, nor be treated as an asset of Sterling
      in any bankruptcy or insolvency proceedings, nor shall it pass under the
      control of any trustee or assignee of Sterling by virtue of any
      proceedings in bankruptcy or insolvency, or under any assignment by
      Sterling for the benefit of creditors.                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|38. | Assignment:Upon providing written notice to the other party in
      accordance with the terms of this Agreement, either party may assign its
      respective rights and obligations under this Agreement, provided that the
      assignee executes an assumption of all of the assignors obligations
      hereunder and agrees to be bound by all the terms and conditions of this
      Agreement. No such assignment shall in any way enlarge or diminish the
      right or obligations of Sterling or Shoshone hereunder. Upon the
      assumption by the assignee of the assignors obligations, the assigning
      party shall be fully released from and shall not be liable or responsible
      to the non-assigning party in any way or any duties, costs, payments or
      other liabilities or obligations that thereafter arise or accrue directly
      or indirectly under this Agreement. A fully executed memorandum of
      assignment in recordable form shall be provided to the non-assigning party
      by the assigning party.

13

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IN WITNESS WHEREOF, the parties have executed this Agreement
effective as of the Effective Date.

|Shoshone Silver Mining Co:   | Sterling Mining Co.:               
|---------------------------- | -----------------------------------
|                             |                                    
|                             |                                    
|                             |                                    
|By:
      /s/Lex
      Smith | By: /s/
      Raymond
      Demotte

STATE OF IDAHOCOUNTY OF ___________________________

On this  __________ day of ________________________, 2004,
before me, the undersigned, a Notary Public in and for the State of Idaho duly
commissioned and sworn, personally appeared ______________________ known to me
or proven to me to be the person who acknowledged to me that he executed the
above Mining Lease Agreement, as indicated above.

| | _________________________________      
| | ---------------------------------------
| | Notary Public                          
| | My Commission expires:
  ______________

STATE OF IDAHOCOUNTY OF ___________________________

On this ________day of __________________, 2004, before me, the
undersigned, a Notary Public in and for the State of Idaho duly commissioned and
sworn, personally appeared _______________________ known to me or proven to me
to be the person who acknowledged to me that he executed the above Mining Lease
Agreement, as indicated above.

| | _________________________________      
| | ---------------------------------------
| | Notary Public                          
| | My Commission expires:
  ______________

14

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