MINING LEASE  CVN CLAIMS
 th
 RECITALS
  Claim Name
     
     County Book/Page
     
     BLM NumberCVN 1-14
     
     Bk 356 - P014-027
     
     836897-836910CVN 19-32
     
     Bk 356 - P028-041
     
     836911-836924CVN 15-18
     
     Bk 375 - P123-126
     
     862055-862058CVN 33-76
     
     Bk 375 - P127-170
     
     862059-862102
  -1-


THEREFORE,
 SECTION ONELease Term
and Royalties
 Term
of Lease.
 -2-


Lease
Payments.
   Anniversary of Effective Date of Agreement
     
     Annual Lease PaymentYears 1 through 4
     
     $13,333.33Years 5 through 9
     
     $26,666.66Years 10 and all years thereafter
     
     $43,333.32
  -3-


Production
Royalties. greater
    -4-


Specimen
Gold.
 -5-


Option
to Purchase Gold Royalty Interest.
 Average Price of Gold for Preceding 30 Days
     
     Price Per Royalty Point$300.00 per ounce and lower
     
     $2,000,000.00$300.01 to 400.00 per ounce
     
     $2,500,000.00$400.01 to 500.00 per ounce
     
     $3,000,000.00$500.01 to 600.00 per ounce
     
     $4,000,000.00$600.01 to 700.00 per ounce
     
     $5,000,000.00$700.01 to 800.00 per ounce
     
     $6,000,000.00$800.01 to 900.00 per ounce
     
     $7,000.,000.00
 -6-


Price perRoyalty Point
   Area
of Interest.
 Township 30 North, Range 51
East, MDM
  Township 31 North, Range 51
East, MDM
  -7-


Claim Name
     
     County Book/Page
     
     BLM NumberCVN 77-151
     
     Not recorded
     
     Not recorded
 Delivery
of Data.
 SECTION TWOMining Operations
 Right
to Explore, Develop and Mine.
 -8-


Conduct
of Work
 Liability
 Liens.
 -9-


Installation
of Equipment.
 Acquisition
of Permits.
 Commingling
of Ore.
 -10-


Drill
Logs, Assays, and Maps.
 SECTION THREE
Inspection by Owner
 Inspection
of Property.
 3.2   Inspection
of Accounts.
 -11-


SECTION FOURTaxes
  SECTION FIVE
Maintenance of Claims
 Claim
Maintenance Fees.
 -12-


Assessment
Work.
 Relocation,
Amendment, and Patent.
 Mineral
Leasing.
 -13-


SECTION SIXTermination
and Default
 Termination.
 Default.
 Obligations
Following Termination.
 -14-


SECTION SEVENNotices
and Payments
 Notices.
 TO OWNER:
     KM Exploration Ltd
109 Fir Street
Elko, Nevada 89801-3023KM Exploration LtdP.O. Box 2619Fernely, Nevada 89808TO LESSEE:
     Gold Run Inc.
c/o Osprey Capital
55 University Avenue
Toronto, Ontario -15- WITH A COPY TO:
     Berns & Berns
767 Third Avenue
23rd Floor
New York, New York 10017
Fax: (212) 332-3315 Payments.
 Name
     
     Percentage of PaymentDavid C. Mathewson
     
     33.33%David C. Knight
     
     66.67%
 SECTION EIGHTAssignment
  -16-


SECTION NINEWarranty
of Title
 Warranty.
 Examination
of Title Documents.
 -17-


No
Liability for Loss of Claims.
 SECTION TENForce Majeure
 Suspension
of Obligations.
 -18-


Definition
of Force Majeure.
 Economic
Force Majeure.
 SECTION ELEVEN
Miscellaneous Provisions
 Binding
Effect.
 -19-


Applicable
Law,
 Entire
Agreement.
 Recording
Memorandum of Agreement.
 Void
or Invalid Provisions.
 -20-


Time
of the Essence.
 Confidentiality.
 No
Partnership.
 IN
WITNESS WHEREOF,
 KM
EXPLORATION LTD., a NevadaLimited Liability CompanyBy:
     /s/ David C. MathewsonDAVID C. MATHEWSON, ManagerBy:
     /s/ David C. KnightDAVID C. KNIGHT, Manager
 GOLD RUN INC.By:
     /s/ [ILLEGIBLE]CEO, Director
 -21-