<FONT SIZE=2>
<U><P ALIGN="CENTER">Exhibit 10.1</P>
</U><P ALIGN="JUSTIFY">THE SECURITIES TO BE ISSUED BY SANTOS RESOURCE CORP. PURSUANT TO THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A "U.S. PERSON" (AS DEFINED IN REGULATION S UNDER THE 1933 ACT) UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE.</P>
<P ALIGN="JUSTIFY">THE TRANSFER OF THE SAID SECURITIES IS PROHIBITED EXCEPT (I) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH RULE 905, AND PRELIMINARY NOTES), PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED; (II) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED; OR (III) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED.</P>
</FONT><B><FONT SIZE=5><P ALIGN="CENTER">MINERAL PROPERTY OPTION AGREEMENT</B></FONT><FONT FACE="Arial" SIZE=2> <BR>
</P>
</FONT><FONT SIZE=4><B><P>THIS AGREEMENT </B>is<B> </B></FONT><FONT SIZE=2>dated the <U>   25      </U>  day of  <U>       June    </U>  2007.</FONT><FONT FACE="Arial" SIZE=2> </P>
</FONT><FONT SIZE=2>
<B>
<P>BETWEEN:</P>
<blockquote>
	<blockquote>
		<P>STARFIRE MINERALS INC.</B>, a company duly incorporated in the Province of British Columbia, having an office at 520 - 355 Burrard Street, Vancouver, BC  V6C 2G8</P>
		<P>("<B>Starfire</B>")<br>
		(the<B> </B>"<B>Owner</B>")</P>
	</blockquote>
</blockquote>
</FONT><B><FONT SIZE=2><P ALIGN="RIGHT">OF THE FIRST PART</P>
<P>AND:</B>  </P>
</FONT><FONT FACE="Arial" SIZE=2>

</FONT><FONT SIZE=2><B>
<blockquote>
	<blockquote>
		<P>SANTOS RESOURCES CORP.</B>, a Nevada corporation having an office at 11450 - 201A Street, Maple Ridge, British Columbia   V2X 0Y4</P>
		<B>
		<P>(</B>"<B>Santos</B>"<B>)<br>
		(</B>the<B> </B>"<B>acquiring party</B>"<B>)</P>
	</blockquote>
</blockquote>
</B>

<P ALIGN="RIGHT">OF THE SECOND PART</P>
<B>
<P> </P>
</B>
<P>WHEREAS </P>
<div class="Section1">
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	A.            The Owner owns certain mineral
	property interests (commonly referred to as the "<i>Lordeau property"</i>)
	located in upper part of Quebec, which mineral property interests are more
	particularly described in Schedule "A" attached hereto and forming a
	material part of this Agreement; and</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	B.            The Owner wishes to grant an
	option to Santos to acquire a seventy five percent (75%) interest in and to
	the Property (as hereinafter defined), and Santos wishes to acquire the same
	on the terms and conditions set forth herein.</p>
	<p align="left" style="margin-top: 0; margin-bottom: 0"> </p>
	<p align="left" style="margin-top: 0; margin-bottom: 0"> </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify"><b>
	NOW THEREFORE THIS AGREEMENT WITNESSES</b>
	that in consideration of the mutual covenants and agreements herein
	contained, the parties agree as follows: </p>
	<p align="left" style="margin-top: 0; margin-bottom: 0"> </p>
	<p align="left" style="margin-top: 0; margin-bottom: 0"> </p>
	<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid"><b>
	1.             
	<u>DEFINITIONS</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
		1.1           In this Agreement and in the
	Schedules and the recitals hereto, unless the context otherwise requires,
	the following expressions shall have the following meanings: </p>
	</FONT>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2">                "Acquiring Party"
	has the meaning ascribed to it in section 10.1 below.</font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2">                "Area of Mutual Interest" has the meaning ascribed to it in section
	10.1 below.</font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><font size="2">                "Exchange"
	means any stock exchange or bulletin board
	that Santos may be listed on from time to time;</font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><font size="2">                "Execution Date"
	means the date the parties hereto have executed this Agreement. </font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><b>            </b><font size="2">"Expenditures"
	means all expenses, obligations and liabilities of whatever kind or nature
	spent or incurred directly or indirectly by Starfire from the date hereof in
	connection with the exploration and development of the Property; including
	monies expended in maintaining the Property in good standing and in applying
	for and securing all necessary leases or permits; monies expended toward all
	taxes, fees and rentals; monies expended in doing and filing assessment
	work; monies expended in staking or acquiring claims in the Area of Mutual
	Interest; expenses paid for or incurred in connection with any program of
	surface or underground prospecting, exploring, geophysical, geochemical and
	geological surveying, drilling and drifting, raising and other underground
	work, assaying and metallurgical testing and engineering, environmental
	studies, data preparation and analysis; costs of acquiring or preparing
	research materials, technical or geological reports and data; costs of
	paying the fees, wages, salaries and traveling expenses of all persons
	engaged directly in work with respect to and for the benefit of the
	Property, in paying for the food, lodging and other reasonable needs of such
	persons; and including a charge in lieu of overhead, management and other
	unallowable costs equal to ten (10%) percent of all such expenditures for
	contracts of less than $100,000, and five (5%) percent for contracts of
	$100,000 or more.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">                "Option" has the meaning
	ascribed to it in section 2.1 below.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><font size="2">                "Property"
	means those mineral claims described in Schedule "A" hereto, together with
	all prospecting, research, exploration, exploitation, operating and mining
	permits, licenses and leases associated therewith, mineral, surface, water
	and ancillary or appurtenant rights attached or accruing thereto, and any
	mining license or other form of substitute or successor mineral title or
	interest granted, obtained or issued in connection with or in place of or in
	substitution for any such Property (including, without limitation, any
	property issued to cover any internal gaps or fractions in respect of such
	ground, and any land or mineral title or interest acquired in the Area of
	Mutual Interest pursuant to section 10 hereof). </font></p>
	<p class="MsoNormal"><font size="2">                 "NSR Royalty" has the meaning
	ascribed to it in section 2.6 below.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><font size="2">                "Shares"
	mean common shares in the capital of Santos or any successor company
	resulting from any merger, amalgamation or other corporate reorganization(s).</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">                "Title Dispute" shall
	have the meaning ascribed to it in section 13.1 below. </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b> </b></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b><font size="2">2.            
	<u>GRANT OF OPTION</u></font></b><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.1           The Owner hereby gives and grants
	to Santos the sole and exclusive right and option (the "<b>Option</b>") to
	acquire from the Owner a seventy five percent (75%) undivided interest in
	and to the Property (subject to the NSR Royalty reserved to the Owner as
	referred to in section 2.6) in accordance with the terms of this Agreement.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.2           In order to exercise the Option
	and to earn its interest in the Property, Starfire shall:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2">                (a)           issue and deliver to the Owner a total of
	75,000 Shares as follows:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(i)           
	75,000 Shares within ten business days of the date of approval of this
	Agreement by the board of directors of Santos; </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2">                (b)           make cash payments to the Owner of a total of
	$10,000 as follows:</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><font size="2"> (i)          
	ten thousand ($10,000) dollars on the Execution Date, which sum is
	non-refundable and the receipt of which is hereby acknowledged by the Owner;</font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)          subject to section 2.4 below, incur
	at least fifty thousand ($50,000) dollars of Expenditures on the Property,
	as follows:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(i)           
	twenty five thousand ($25,000) dollars on or before September 30, 2008; and</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(ii)         
	an additional twenty five thousand ($25,000) dollars with in one year from
	July 25, 2008 expiry July 25, 2009.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">                The issuance of 75,000 Shares,
	the cash payments totaling $10,000 and the requisite $50,000 in Expenditures
	required to exercise the Option, all as set out above, are herein
	collectively referred to as the "<b>Option Price</b>".</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.3           Any Shares delivered, cash
	payments made, or Expenditures incurred toward the Option Price that is over
	and above that required to be made during a particular time period in
	section 2.2 shall be carried forward and applied against the required
	payment in the subsequent period(s).</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.4           In the event Santos fails to incur
	the full amount of Expenditures in any given year within the periods
	required under section 2.2, then Santos may, within 45 days after the end of
	such period, pay to the Owner an amount equal to the outstanding balance to
	be incurred for that specific year by way of 50% cash and 50% Shares,
	subject to Exchange approval if required at the time, or if such Exchange
	approval is required but not granted then 100% cash, whereupon deliverance
	of the cash and Shares to the Owner the Option shall remain in good
	standing.  For the purpose of this section, Shares shall be valued at the
	weighted average trading price per Share during the 10 trading days
	preceding the period end date (subject to any minimum price per Share
	required by policies of the Exchange).  </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.5           Upon the failure of Santos to
	deliver the consideration comprising the Option Price within the time
	periods set forth herein, the Owner shall provide Santos with written notice
	of default and Santos shall have a period of 30 days following receipt of
	such notice of default to rectify the same, failing which the Option and
	this Agreement shall automatically terminate at the end of such 30 day
	notice period without further notice from the Owner.</font><font size="2"> </font><font size="2">
	</font>
</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">2.6           The purchase and sale of the
	Property is subject to a 3% net smelter return royalty ("<b>NSR Royalty</b>")
	in favour of the Owner, which NSR Royalty shall be calculated in accordance
	with the formula set out in Schedule "B" attached hereto and forming a
	material part of this Agreement.  Santos may purchase in the aggregate up to
	three-quarters (i.e., 2% NSR Royalty) of the NSR Royalty on the basis of one
	hundred thousand dollars for each one-tenth percent of the NSR Royalty
	(i.e., $100,000 per 0.1% NSR Royalty) acquired on the first one-half of the
	NSR Royalty (i.e, the first 1.0% NSR Royalty), and one hundred fifty
	($150,000) dollars for each one-tenth percent of the NSR Royalty (i.e.,
	$150,000 per 0.1% NSR Royalty) thereafter for the remaining NSR Royalty
	(i.e., the remaining 0.5% NSR Royalty).  To exercise its option to purchase
	the NSR Royalty or any portion thereof, Santos must provide the Owner with
	at least 30 days advance written notice of its intention to do so, and must
	close upon each purchase within 60 days of each notice.</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2"> </font></b></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b><font size="2">3.            
	</font> <u><font size="2">ACQUISITION OF INTEREST IN
	THE PROPERTY</font></u></b></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b><font size="2"> </font></b></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">3.1           At such time as Santos has paid
	to the Owner the Option Price in accordance with section 2.2 above, within
	the time periods specified therein, the Option shall be deemed to have been
	exercised by Santos and Santos shall have thereby, without any further act,
	acquired a seventy five percent (75%) undivided interest in and to the
	Property.</font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">3.2           In the event that Santos has
	earned a 75% interest in the Property pursuant to section 3.1, the Owner and
	Santos agree to negotiate in good faith the terms and conditions of entering
	into a joint venture agreement to carry out further exploration and mining
	activities on the Property, with the intention that all costs and profits
	will be split proportionately by the parties according to their ownership of
	the Property.</font></p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="text-align: justify; page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b><font size="2">4.            </font><u><font size="2">REGISTRATION AND TRANSFER OF
	PROPERTY INTERESTS</font></u></b></p>
	<p style="text-align: justify; page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">4.1           Upon the request of Santos after
	execution of the Agreement and at any time during the term of this
	Agreement, the Owner shall assist Santos to record this Agreement with the
	appropriate mining recorder. </font> </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">4.2           The Owner shall further provide
	Santos with such recordable transfers as Santos and its counsel shall
	require to record its due interests in respect of the Property.</font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2"> </font></b></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2"> </font></b></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2">5.            <u>REPRESENTATIONS AND WARRANTIES</u></font></b><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2">5.1           Santos represents and warrants to the Owner that:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(a)           it has full power and authority to
	enter into and perform its obligations under this Agreement and any
	agreement or instrument referred to or contemplated by this Agreement;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(b)           all necessary corporate approvals
	have been obtained and are in effect with respect to the transactions
	contemplated hereby;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)           neither the execution and delivery
	of this Agreement nor any of the agreements contemplated hereby, nor the
	consummation of the transactions hereby contemplated conflict with, result
	in the breach of or accelerate the performance required by any agreement to
	which it is a party; 
	and</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(d)           upon issuance, the Shares shall be
	validly issued as fully paid and non-assessable common shares of the
	Company. </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><font size="2"> </font></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2">5.2           The Owner hereby represents and
	warrants to Santos that: </font></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2"> </font></p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2">(a)           it has full power, capacity and
	authority to enter into and perform its obligations under this Agreement and
	any agreement or instrument referred to or contemplated herein;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(b)           neither the execution and delivery
	of this Agreement nor any of the agreements referred to herein or
	contemplated hereby, nor the consummation of the transactions hereby
	contemplated conflict with, result in the breach of or accelerate the
	performance required by any agreement to which he is a party;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)           it is the legal and beneficial
	owner of all of the mineral interests comprising the Property, free and
	clear of all liens, charges and encumbrances and no taxes or rentals are due
	with respect to the Property;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(d)           the Property is accurately
	described in Schedule "A" attached hereto and forming a material part of
	this Agreement; </font> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(e)           each of the mineral claims
	comprising the Property has been duly and validly granted to or staked by
	the Owner, and is properly located and recorded with the appropriate mining
	authorities pursuant to all applicable laws and regulations of the
	jurisdiction in which the Property is situate </font> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(f)            to the best of its knowledge,
	there are no restrictions on exploration and development on the Property or
	of the removal of minerals from the Property;</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(g)           the Owner has the exclusive right
	to enter into this Agreement and has all necessary authority to dispose of
	his interests in and to the Property in accordance with the terms of this
	Agreement; </font>
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(h)           t</font><font size="2">o the best of its
	knowledge, there is no adverse claim or challenge against or to the
	ownership of or title to any of the mineral interests comprising the
	Property or which may impede development, nor to the knowledge of the Owner
	is there any basis for any potential claim or challenge, and there are no
	outstanding agreements or options to acquire or purchase the Property or any
	portion thereof, and no persons have any royalty, net profits or other
	interests whatsoever in production from any of the mineral interests
	comprising the Property; </font> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(i)            there are no pending or
	threatened actions, suits, claims or proceedings regarding the Property or
	any portion thereof of which the Owner is aware; </font> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(j)            t</font><font size="2">he Owner has the full
	right and authority to exercise the Owner's rights and remedies under this
	Agreement, to waive any default of Santos under this Agreement, to exercise
	any and all claims which the Owner may have as against Santos under this
	Agreement and to collect, distribute and account for any and all payments
	and issuances made by Santos to the Owner under this Agreement;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in"><u>
	<font size="2">Shares Representations</font></u></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(k)           <u>Offer not made in U.S.</u>  The
	offer to acquire the Shares was not made to the Owner when the Owner was in
	the United States and at the time the Owner's buy order was made, the Owner
	was outside the United States;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(l)            <u>Execution and Delivery of
	Agreement Outside U.S.</u>  The Owner was outside the United States at the
	time this Agreement was executed and delivered;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(m)          <u>Not a U.S. Person</u>.  The
	Owner is not a U.S. Person, as that term is defined in Regulation S,
	promulgated under </font> <font size="2">the United States Securities Act of 1933, as
	amended (the "1933 Act")</font><font size="2">.  The Owner
	acknowledges that a "U.S. Person" is defined by Regulation S to be any
	person who is:</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(i)            
	any natural person resident in the United States;</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(ii)           
	any partnership or corporation organized or incorporated under the laws of
	the United States;</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(iii)          
	any estate of which any executor or administrator is a U.S. person;</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(iv)          
	any trust of which any trustee is a U.S. person;</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(v)           
	any agency or branch of a foreign entity located in the United States;</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(vi)         
	any non-discretionary account or similar account (other than an estate or
	trust) held by a dealer or other fiduciary organized, incorporate, or (if an
	individual) resident in the United States; and</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(vii)        
	any partnership or corporation if:</font></p>
	<p style="margin-left:2.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(A)         
	organized or incorporated under the laws of any foreign jurisdiction; and</font></p>
	<p style="margin-left:2.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(B)         
	formed by a U.S. person principally for the purpose of investing in
	securities not registered under the 1933 Act, unless it is organized or
	incorporated, and owned, by accredited investors [as defined in Section
	230.501(a) of the 1933 Act] who are not natural persons, estates or trusts;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(n)           <u>Not Acquiring for a U.S. Person</u>. 
	The Owner is not and will not be acquiring, the Shares are not being
	acquired directly or indirectly, for the account or benefit of a U.S. Person
	or a person in the United States and the Owner does not have any agreement
	or understanding (either written or oral) with any U.S. Person or a person
	in the United States respecting:</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(i)           
	the transfer or assignment of any rights or interest in any of the Shares;
	</font>
	</p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(ii)          
	the division of profits, losses, fees, commissions, or any financial stake
	in connection with this subscription; or</font></p>
	<p style="margin-left:1.5in;text-align:justify;text-indent:-.5in">
	<font size="2">(iii)         
	the voting of the Shares;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(o)           <u>No Directed Selling Efforts</u>. 
	The Owner will not engage in any Directed Selling Efforts, as that term is
	defined in Regulation S, in respect of the Shares; </font> </p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(p)           <u>Distribution Compliance Period</u>. 
	The Owner agrees not the resell the Shares in the United States or to a U.S.
	Person during the distribution compliance period, which is one year from the
	date the Shares are issued; </font> </p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(q)           <u>Restrictions on Resale</u>. 
	The Owner acknowledges that there are restrictions on the resale of the
	Shares, agrees not to resell or distribute the Shares to the public and
	agrees to comply with the Shares laws of the United States and the Shares
	laws of the residence of the Owner.  The Owner agrees not to engage in
	hedging transactions with regard to the Shares prior to the expiration of
	the one-year distribution compliance period unless in compliance with the
	1933 Act;</font></p>
	<p style="margin-left:1.0in;text-align:justify;text-indent:-.5in">
	<font size="2">(r)            <u>Securities Not Registered</u>. 
	The Owner acknowledges that the Shares have not been registered under any
	securities laws, including US federal or state securities laws.  The Owner
	also understands that Santos is under no obligation and has no intention to
	register the Shares or to take any actions to make available exemptions from
	the registration requirements of state and federal securities laws and the
	securities laws of the jurisdiction of in which the Owner is a resident, and
	that the Shares cannot be sold or otherwise distributed in the United States
	in the absence of an exemption from such registration requirements;</font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(s)           <u>Santos May Refuse Transfer</u>. 
	The Owner acknowledges that Santos shall refuse to register any transfer of
	the Shares not made in accordance with the provisions of Regulation S,
	pursuant to registration under the 1933 Act, or pursuant to an available
	exemption from registration under the 1933 Act; provided, however, that if
	the Shares are in bearer form or foreign law prevents Santos from refusing
	to register Shares transfers, other reasonable procedures are implemented to
	prevent any transfer of the Shares not made in accordance with the
	provisions of Regulation S; and</font></p>
	<p style="margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(t)            <u>Legends on Share Certificates</u>. 
	The Owner hereby consents to the placement of restrictive legends on all
	certificates representing the Shares, in substantially the following form:</font></p>
	<p style="margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
1.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><i>
	<font size="2">              
	"The securities represented by this certificate have not
	been registered under the U.S. Securities Act of 1933, as amended, or other
	applicable securities laws.  These securities have been acquired for
	investment and not with a view to distribution or resale and may not be
	offered, sold, pledged or otherwise transferred except (i) in
	accordance with the provisions of Regulation S (Rule 901 through Rule 905,
	and preliminary notes), promulgated under the Securities Act of 1933, as
	amended; (ii) pursuant to registration under the Securities Act of 1933, as
	amended; or (iii) pursuant to an available exemption from registration. 
	Hedging transactions involving these securities may not be conducted unless
	in compliance with the Securities Act of 1933, as amended.</font></i></p>
	<p style="margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
1.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"><i>
	<font size="2">              
	"Unless permitted under securities legislation, the holder of this security
	must not trade the security before the date that is 4 months and a day after
	the later of (i) [the distribution date], and (ii) the date the Company
	became a reporting issuer in any Canadian province or territory."</font></i></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">5.3           The representations and warranties
	hereinbefore set out are conditions on which the parties have relied in
	entering into this Agreement and shall survive the acquisition of any
	interest in the Property by Santos and each of the parties shall indemnify
	and save the other harmless from all loss, damage, costs, actions and suits
	arising out of or in connection with any breach of any representation,
	warranty, covenant, agreement or condition made by it and contained in this
	Agreement.</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2"> </font></b></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	<font size="2"> </font></b></p>
	<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid"><b>
	<font size="2">6.            <u>COVENANTS OF THE OWNER</u></font></b><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">6.1           While the Option remains
	outstanding, the Owner covenants and agrees with Santos to:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(a)          for so long as Santos is not in
	default hereunder, not do any act or thing which would in any way adversely
	affect the rights of Santos hereunder;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(b)          make available to Santos and its
	representatives all records, maps, reports, drill core and files in its
	possession relating to the Property and permit Santos and its
	representatives at their own risk and expense to take abstracts there from
	and make copies thereof;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)           co-operate as reasonably necessary
	with Santos in obtaining any access, surface and other rights on or related
	to the Property as Santos reasonably deems desirable; and</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(d)           promptly provide Santos with any
	and all notices and correspondence received by the Owner from the any
	relevant government agencies in respect of the Property.</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b><font size="2">7.             <u>PRE-EXERCISE ACTIVITIES</u></font></b><font size="2"> </font></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2"> </font></p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: .5in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<font size="2">7.1           Prior to exercise of the Option,
	Santos shall have full right, power and authority to do everything necessary
	or desirable in accordance with good mining practice in connection with the
	exploration and development of the Property, including without limiting the
	generality of the foregoing, the exclusive right to:</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(a)           enter the Property and have
	exclusive and quiet possession of the Property, to regulate access to the
	Property, as well as the use and enjoyment thereof without interruption by
	or disturbance from the Owner, or any person claiming by, through or under
	the Owner;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(b)          do such prospecting, exploration,
	development, exploitation and other mining work thereon and thereunder as
	Santos may in its sole discretion consider advisable or desirable subject to
	the approval of all applicable laws and regulations;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)           bring and erect upon the Property
	such equipment and facilities as Santos may in its sole discretion consider
	advisable or desirable;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(d)           remove materials from the Property
	for the purposes of assaying and testing, bulk sampling or otherwise as
	Santos may in its sole discretion consider advisable or desirable, and
	dispose of such materials by way of sale or otherwise as Santos may in its
	sole discretion consider advisable or desirable; and</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(e)           participate with the Owner in
	negotiating such agreements as may be necessary or in Santos best interests
	with the owners of and other persons having interests in the Property
	concerning surface or access rights affecting the Property, provided that if
	and to the extent that the Owner has any such rights affecting the Property,
	such rights are hereby included in the Property and are subject to the
	Option hereunder.</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">7.2           Prior to exercise of the Option,
	Santos shall have the following duties and obligations:</font><font size="2"> </font></p>
	<p style="margin:0in;margin-bottom:.0001pt">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(a)           To manage, direct and control all
	exploration, development and production operations in, on and under the
	Property in a prudent and workmanlike manner, and in compliance with all
	applicable laws, rules, orders and regulations;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(b)           Subject to the terms and
	conditions of this Agreement, to pay all taxes, rentals and maintenance fees
	on the Property as may be necessary to keep the Property in good standing
	and free and clear of liens, charges and encumbrances of every character
	arising from operations hereunder (except liens for taxes not yet due, and
	other claims and liens contested in good faith by Santos) and to proceed
	with all diligence to contest or discharge any lien that is filed;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(c)           file all applicable work for
	assessment credits against the respective claims comprising the Property. 
	Any excess work shall be applied equally to the portable assessment credit
	account of Santos and the Owner;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(d)           to obtain and maintain, or cause
	any contractor engaged to obtain and maintain, adequate insurance coverage
	with respect to activities on or with respect to the Property;</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(e)           to perform its duties and
	obligations in a manner consistent with good exploration and mining
	practices; </font>
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(f)            defend, indemnify and save the
	Owner and its directors, officers and employees harmless from any and all
	losses, damages, expenses, claims, suits, actions or demands of any kind or
	nature whatsoever in any way referable to or arising out of any work done by
	Santos on or with respect to the Property; </font>
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(g)           prior to commencing any operations
	or activities on the Property, obtain all necessary operating and
	environmental permits and post any required reclamation or other bonds or
	safekeeping agreements required by any governmental agency; and</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in">
	<font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2">(h)           Santos shall permit the Owner, or
	his representatives duly authorized in writing, to visit and inspect the
	Property at all reasonable times and intervals, and inspect all data
	obtained by Santos as a result of its operations thereon, subject to such
	confidentiality arrangements as Santos may reasonably consider appropriate.</font><font size="2"> </font></p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	<font size="2"> </font></p>
	<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
	<font size="2">7.3           Until such time as the Option is exercised in
	full, Santos agrees to offer all contracts to undertake Exploration work on
	the Property to Integrated Minerals Management Inc. ("Integrated"), provided
	that the rates quoted by Integrated are competitive commercial rates and
	Integrated can provide the services in a timely manner, to the satisfaction
	of Santos. </font></p>
	<FONT SIZE=2>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid"><b>
	8.             <u>TERMINATION OF OPTION</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	8.1           This Agreement, except for the
	provisions of sections 9 and 11, and the Option shall (unless otherwise
	agreed by the Owner in writing) terminate: </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	(a)           at the end of the 30 day notice
	period set out in section 2.5, if the outstanding Option Price required to
	be paid by Santos pursuant to this Agreement has not been paid by Santos to
	the Owner by such date;</p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt">
	                (b)           if Santos gives notice to the Owner in
	accordance with section 8.2; or </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	(c)           upon Santos being or becoming in
	default of any other material obligation hereunder, and upon Santos failing
	to rectify the same within 30 days following receipt from the Owner of
	notice of such default.
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	8.2           At any time prior to the exercise
	of the Option, Santos shall have the right to terminate this Agreement and
	the Option by giving not less than thirty (30) days' notice to that effect
	to the Owner. </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b>9.              <u>OBLIGATIONS OF SANTOS ON
	TERMINATION OF THE OPTION</u></b> </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	 </p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: .5in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	9.1           If this Agreement is terminated
	for any reason whatsoever prior to the exercise of the Option, this
	Agreement, including the Option, (but excluding this section 9 and section
	11 which shall both continue in full force and effect for so long as is
	required to give full effect to the same) shall be of no further force and
	effect except that Santos shall: </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt">
	                (a)           vacate the Property, and leave the Property: </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in">(i)             in
	good standing and in accordance with the applicable laws and regulations,
	with a minimum of six months of assessment credits filed against the same; </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	(ii)            free and clear of all liens, charges and encumbrances
	arising from this Agreement or its operations hereunder; </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	(iii)           in a safe and orderly condition; and </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	(iv)           in a condition which is in compliance with all applicable
	rules and orders of governmental authorities with respect to reclamation and
	restoration of the surface to the Property; </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.5in;
margin-bottom:.0001pt;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	(b)           deliver to the Owner, within
	ninety (90) days of termination, a report on all work carried out by Santos
	on the Property together with copies of all maps, drillhole logs, assay
	results, reports and other information compiled or prepared by or on behalf
	of Santos with respect to work on or with respect to the Property, and make
	available to the Owner (at the place of storage) all core, samples and
	sample pulps and rejects; </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	(c)           unless otherwise agreed by the
	Owner, remove from the Property within six months of the effective date of
	termination all materials, equipment and facilities erected, installed or
	brought upon the Property by or at the instance of Santos.  If the same is
	not completely removed, then the Owner may, at his option, retain the same
	as the Owner's property, or remove the same from the Property at Santos's
	expense; and </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	(d)           deliver to the Owner a duly
	executed quitclaim of all right, title and interest of  Santos in and to the
	Property in favour of the Owner.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b>10.          AREA OF MUTUAL INTEREST</b></p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	10.1         An area of mutual interest (the "<b>Area
	of Mutual Interest</b>") shall exist for all lands within that area being
	two kilometers from the outer boundaries of the Property.  If either party
	(the "<b>Acquiring Party</b>") acquires any mineral interest covered by the
	lands within the Area of Mutual Interest, or the Acquiring Party enters into
	any type of agreement by which such an interest may be earned or otherwise
	acquired, then the Acquiring Party shall promptly notify the other party of
	such acquisition or of such agreement, and this Agreement shall apply
	thereto, and such lands or interests within the Area of Mutual Interest
	shall form part of the Property, without cost to the non-Acquiring Party. 
	Any interest acquired by a party in the lands outside the Area of Mutual
	Interest shall not be subject to the terms hereof.  The Area of Mutual
	Interest shall exist only for so long as the Option remains unexercised.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt;text-align:justify"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid"><b>
	11.           <u>CONFIDENTIAL NATURE OF
	INFORMATION</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	11.1         Each party agrees that all
	information obtained hereunder shall be the exclusive property of the
	parties and not publicly disclosed or used other than for the activities
	contemplated hereunder except as required by law or by the rules and
	regulations of any regulatory authority or stock exchange having
	jurisdiction or with the written consent of the other party, such consent
	not to be unreasonably withheld. </p>
	<p style="margin:0in;margin-bottom:.0001pt"><b> </b></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b> </b></p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	12.           <u>ASSIGNMENT</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	12.1         Either party may at any time assign
	or transfer any or all of its interest herein, provided such assignee agrees
	to abide by and be bound by the terms of this Agreement in the same manner
	and to the same effect as if an original signatory hereto.
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt"><b>
	13.          <u>NOTICES</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	13.1        Any notice, direction or other
	instrument required or permitted to be given under this Agreement shall be
	in writing and may be given by the delivery of the same or by mailing the
	same by prepaid registered or certified mail or by sending the same by
	facsimile in each case addressed to the address first listed above or the
	following facsimile numbers: </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt">
	                (a)                If to the Owner at facsimile no.(604) 596
	8592; and </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt">
	                (b)                If to Santos at facsimile no.: (604)
	648 8052.</p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	13.2         Any party may at any time give to
	the others notice in writing of any change of address of the party giving
	such notice and from and after the giving of such notice the address or
	addresses therein specified shall be deemed to be the address of such party
	for the purposes of giving notice hereunder. </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b>14.          <u>FORCE MAJEURE</u></b> </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	 </p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: .5in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">14.1         Santos shall not be deemed to be in
	default hereunder for failure or delay to perform any of its covenants
	pursuant to this Agreement including payments toward the Option Price, if
	prior to the requirement to perform such covenant any event of force majeure
	arises which precludes Santos from undertaking work on the Property (except
	for Santos's lack of funds or inability to raise funds), or a material
	dispute arises as to the ownership or title to any part of the Property or
	to the minerals therein, including land claims by indigenous people (a "<b>Title
	Dispute"</b>). </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	14.2         Should Santos seek to rely on the
	provisions of subsection 13.1 it shall promptly give written notice to the
	Owner of the particulars thereof and all time limits imposed by this
	Agreement shall be extended from the date of delivery of such notice by a
	period equivalent to the period of delay resulting from such event of force
	majeure or Title Dispute. </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	<b>15.           <u>ARBITRATION</u></b> </p>
	<p style="page-break-after: avoid; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	 </p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: .5in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
	15.1         If any question, difference or dispute shall arise between the
	parties in respect of any matter arising under this Agreement or in relation
	to the construction hereof, the same shall be referred to a mutually
	acceptable mediator.  If an agreement is not settled within 30 days of the
	referral, the award of one arbitrator shall determine the dispute.  The
	decision of the arbitrator shall be made within 30 days after the
	selection.  The expense of the arbitration shall be borne equally by the
	parties to the dispute.  The arbitration shall be conducted in accordance
	with the provisions of the <i>Commercial Arbitration Act</i> (British
	Columbia), as amended, and the decision of the arbitrator shall be
	conclusive and binding upon the parties.  The rules and procedures for the
	arbitration shall be procedures established by the B.C. Arbitrators
	Institute.  The place of arbitration shall be Vancouver, British Columbia,
	Canada. </p>
	<p style="text-align: justify; text-indent: -.5in; page-break-after: avoid; margin-left: .5in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify"><b>
	16.          <u>GENERAL</u></b> </p>
	<p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.1        The parties shall execute such
	further and other documents and do such further and other things as may be
	necessary or convenient to carry out and give effect to the intent of this
	Agreement. </p>
	<p style="margin:0in;margin-bottom:.0001pt;text-align:justify">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.2        All references to dollar amounts in
	this Agreement shall be to lawful currency of Canada, unless specifically
	provided to the contrary.  All payments to be made to any party hereunder
	may be made by cheque or bank draft mailed or delivered to such party at its
	address for notice purposes as provided herein, or deposited for the account
	of such party at such bank or banks in Canada as such party may designate
	from time to time by notice to the paying party.
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.3        This Agreement shall ensue to the
	benefit of and be binding upon the parties hereto and their respective
	successors and assigns. </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin:0in;margin-bottom:.0001pt">
	16.4         Time shall be of the essence hereof. </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.5         This Agreement shall constitute the
	entire agreement between the parties and, except as hereafter set out,
	replaces and supersedes all prior agreements, memoranda, correspondence,
	communications, negotiations and representations, whether oral or written,
	express or implied, statutory or otherwise between the parties with respect
	to the subject matter herein.
	 </p>
	<p style="margin:0in;margin-bottom:.0001pt"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">16.6         Any
	modification of this Agreement will be effective only if it is in writing
	and signed by both parties hereto.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.7         This Agreement shall be governed by
	and construed according to the laws of British Columbia and the laws of
	Canada applicable therein.  All actions arising from this Agreement shall be
	commenced and maintained in the Supreme Court of British Columbia.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.8         This Agreement is subject to
	regulatory approval and the parties agree to make any reasonable amendments
	hereto as may be required by any regulatory authorities.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	 </p>
	<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
	16.9         The parties have not created a partnership and nothing
	contained in this Agreement shall in any manner whatsoever constitute any
	party the partner, agent or legal representative of any other party, nor
	create any fiduciary relationship between them for any purpose whatsoever. 
	No party shall have any authority to act for, or to assume any obligations
	or responsibility on behalf of, any other party except as may be, from time
	to time, agreed upon in writing between the parties or as otherwise
	expressly provided.</p>
	<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
	16.10       No consent or waiver expressed or implied by either party in
	respect of any breach or default by the other in the performance by such
	other of its obligations hereunder shall be deemed or construed to be a
	consent to or a waiver of any other breach or default.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
	16.11      If any provision to this
	Agreement is held by a court of competent jurisdiction to be invalid, void
	or unenforceable, the remaining provisions shall nevertheless continue in
	full force without being impaired or invalidated in any way.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">16.12       If any
	one or more of the provisions contained herein should be invalid, illegal or
	unenforceable in any respect in any jurisdiction, the validity, legality and
	enforceability of such provision shall not in any way be affected or
	impaired thereby in any other jurisdiction, and the validity, legality and
	enforceability of the remaining provisions contained herein shall not in any
	way be affected or impaired thereby.</p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in"> </p>
	<p style="margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;
margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">16.13       This
	Agreement may be executed in any number of counterparts, each of which when
	delivered, either in original or facsimile form, shall be deemed to be an
	original and all of which together shall constitute one and the same
	document.</p>
	<p class="MsoNormal"><b>IN WITNESS WHEREOF</b>
	the parties hereto have executed these presents as of the date first above
	written. </p>
	<p class="MsoNormal"> </p>
	<p class="MsoNormal"><b>STARFIRE MINERALS INC.</b></p>
	<p class="MsoNormal">per:         <u>/s/
	(signed)                                         <br>
	</u>                Authorized Signatory</p>
	<p class="MsoNormal"> </p>
	<p class="MsoNormal"><b>SANTOS RESOURCE CORP</b></p>
	<p class="MsoNormal">per:         <u>/s/ Richard
	Pierce                                <br>
	</u><b>                </b>
	Authorized Signatory</p>
	</FONT>
	<p class="MsoNormal"><font size="1">[2367/110q/PropOp-Agr]</font></div>
<FONT SIZE=2>
<br clear="all" style="page-break-before: always">
 <FONT FACE="Arial" SIZE=2><hr noshade color="#808080">
</FONT>
	<div class="Section2">
		<p class="MsoNormal" align="center" style="text-align:center"><b>
		SCHEDULE "A"</b></p>
	<p class="MsoNormal"><b>  </b></p>
	<p class="MsoNormal"><b>THIS IS SCHEDULE "<i>A</i>"</b> to the Mineral
	Property Option Agreement dated the <u>     </u> day of<u>   June        </u>
	, 2007, between Starfire Minerals Inc. and Santos Resource Corp. .</p>
	<p class="MsoNormal"> This scheduled includes additional properties acquired
	since May 12, 2005</p>
	<p class="MsoNormal"> </p>
	<p class="MsoNormal" align="center" style="text-align:center"><b>MINERAL
	CLAIMS COMPRISING THE PROPERTY</b></p>
	<p class="MsoNormal">  </p>
	<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><b><font size="2">TITLE #</font></b></p>
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2"> </font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><b><font size="2">Row/Block</font></b></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><b><font size="2">LOT</font></b></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><b><font size="2">SURFACE AREA</font></b></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87500</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">23</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">1</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.02</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87501</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">23</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">2</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.03</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87502</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">23</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">3</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.03</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87503</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">23</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">4</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.03</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87504</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">23</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">5</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.03</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87505</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">22</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">1</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.04</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87506</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">22</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">2</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.04</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87507</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">22</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">3</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.04</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87508</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">22</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">4</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.04</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87509</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">22</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">5</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.04</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87510</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">1</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87511</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">2</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87512</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">3</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87513</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">4</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87514</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">5</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87515</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">6</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87516</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">7</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
		<tr>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">87517</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">21</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">8</font></td>
			<td width="148" valign="top" style="width:110.7pt;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoBodyText" align="center" style="margin:0in;margin-bottom:.0001pt;
  text-align:center"><font size="2">51.05</font></td>
		</tr>
	</table>
	<p class="MsoNormal"> </div>

<br clear="all" style="page-break-before: always">
 <p class="MsoNormal"> </p>
<FONT FACE="Arial" SIZE=2>
<hr noshade color="#808080">
</FONT>
<p class="MsoNormal" align="center" style="text-align:center"><b>SCHEDULE "B"</b></p>
<p class="MsoNormal"><b> </b></p>
<p class="MsoNormal"><b>THIS IS SCHEDULE "<i>B</i>"</b> to the Mineral Property
Option Agreement dated the <u>     </u> day of  <u>    June     </u> , 2007,
between Starfire Minerals Inc. and Santos Resources Corp.</p>
<p class="MsoNormal" align="center" style="text-align:center"><b>NET SMELTER
RETURN ROYALTY<br>
(NSR ROYALTY)</b></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
1.             Pursuant to the Mineral Property
Option Agreement to which this Schedule "B" is attached, the Owner (the "<b>Recipient</b>")
may receive a Net Smelter Return royalty (the "<b>NSR Royalty</b>") based on
proceeds received by Santos (the "<b>Producer</b>") from production from the
Property as described in Schedule "A" of the Agreement, free and clear of all
costs of development and operations.</p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
2.             "<b>Net Smelter Return</b>" shall
mean the actual proceeds received by the Producer from any mint, smelter, or
other purchaser for the sale of ores, metals or concentrated products ("<b>Product</b>")
from the Property derived from commercial production (and not from bulk
sampling, pilot plant operations or preliminary production) and sold after
deducting from such proceeds the following charges to the extent that they were
not deducted from such proceeds by the purchaser in computing payment: smelting
and refining charges; penalties; cost of transportation of ores, metals or
concentrates from the Property to any mint, smelter or other purchaser; cost of
insurance of the products; and any export and import taxes on said ores, metals
or concentrates levied by the country into which such ore, metals or
concentrates are imported, if such charges or costs are deducted from the
proceeds received.</p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
3.             Payment of the NSR Royalty shall be
made quarterly within 45 days after the end of each fiscal quarter of the
Producer, on actual proceeds received by the Producer from the sale of Product
from the Property, and shall be accompanied by unaudited calculations and
statements pertaining to the operations carried out on the Property.  Within 120
days after the end of each fiscal year of the Producer in which the NSR Royalty
is payable, the records relating to the calculation of Net Smelter Return for
such year shall be audited and any resulting adjustments in the payment of the
NSR Royalty payable shall be made forthwith. A copy of the said audit shall be
delivered to the Recipient within 30 days of the end of such 120-day period. </p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
4.             Each annual audit shall be final and
not subject to adjustment unless the Recipient delivers to the Producer written
exceptions in reasonable detail within three months after the Recipient receives
the report.  The Recipient, or its representative duly authorized in writing,
shall at its expense have the right to audit the books and records of the
Producer related to the Net Smelter Return to determine the accuracy of the
report, but shall not have access to any other books and records of the
Producer.  The audit shall be conducted by a chartered or certified public
accountant of recognized standing (the "<b>Auditor</b>").  The Producer shall
have the right to restrict access to its books and records until execution of a
written agreement by the Auditor that all information shall be held in
confidence and used solely for purposes of audit and resolution of any disputes
related to the report.  A copy of the Auditor's report shall be delivered to the
Producer and the amount, which should have been paid according to the Auditor's
report, shall be paid forthwith, one party to the other.  In the event that the
said discrepancy is to the detriment of the Recipient and exceeds 5.0% of the
amount actually paid by the Producer, then the Producer shall pay the entire
cost of the audit.</p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify;text-indent:-.5in">
5.             In the event smelting or refining are
carried out in facilities owned or controlled, in whole or in part, by the
Producer, charges, costs and penalties with respect to such operations,
excluding transportation, shall mean reasonable charges, costs and penalties for
such operations but not in excess of the amounts that the Producer would have
incurred if such operations were carried out at facilities not owned or
controlled by the Producer then offering comparable custom services.</p>
<p class="MsoNormal"> </p>
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