|   |                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | MINERA GAVILAN S.A. DE C.V., a body corporate incorporated under the laws of Mexico, having an address at Suite 1103, 750 West Pender Street, Vancouver, B.C. V6C 2T8     |
|   |                                                                                                                                                                      |
|   | (hereinafter called “Minera Gavilan”)                                                                                                                         |
|   |                                                                                                                                                                      |
|   | OF THE FIRST PART                                                                                                                                                         |
|   |                                                                                                                                                                      |
| AND:   |                                                                                                                                                                      |
|   |                                                                                                                                                                      |
|   | CANDYMIN S.A. DE C.V., a body corporate incorporated under the laws of Mexico, having an address at Ave. De Anza #701, Col. Pitic, Hermosillo, Sonora, Mexico, C.P. 83150 |
|   |                                                                                                                                                                      |
|   | (hereinafter called “Candymin”)                                                                                                                               |
|   |                                                                                                                                                                      |
|   | OF THE SECOND PART                                                                                                                                                        |
|   |                                                                                                                                                                      |
| AND:   |                                                                                                                                                                      |
|   |                                                                                                                                                                      |
|   | GOLDGROUP MINING INC., a body corporate continued under the laws of British Columbia, having an address at Suite 2184, 1055 Dunsmuir Street, Vancouver, B.C. V7X 1L3      |
|   |                                                                                                                                                                      |
|   | (hereinafter called “Goldgroup”)                                                                                                                              |
|   |                                                                                                                                                                      |
|   | OF THE THIRD PART                                                                                                                                                         |

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|   | (i)    | payment to Minera Gavilan in the amount of $2,500,000;                                                                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                         |
|   | (ii)   | entering into the Royalty Agreement; and                                                                                                                                     |
|   |   |                                                                                                                                                                         |
|   | (iii)  | providing an instrument of transfer, in a form satisfactory to Minera Gavilan, whereby Candymin transfers, releases and quit claims the El Cobre Interest to Minera Gavilan; |

|   | (b) | Forthwith upon Commercial Production, Candymin shall transfer to Minera Gavilan, 1,000,000 common shares of Goldgroup as fully paid and non-assessable shares, free and clear of any and all encumbrances and restrictions save and except for, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)    | a period of four months and a day imposed under Canadian securities laws and regulation and the policies of the Exchange (the “Hold Period”); and             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                      |
|   | (ii)   | 500,000 of such common shares of Goldgroup shall bear a legend stating that such shares shall not be traded for a period of 6 months after the expiry of the Hold Period; |

|   | (c)    | Forthwith upon Commercial Production and measured and indicated resources reaching 2,000,000 Ounces, Candymin shall transfer to Minera Gavilan an additional 2,000,000 common shares of Goldgroup as fully paid and non-assessable shares, free and clear of any and all encumbrances and restrictions save and except for a period of four months and a day imposed under Canadian securities laws and regulation and the policies of the Exchange;                                                                                                                                                                                   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (d)    | Forthwith upon Commercial Production and measured, indicated and inferred resources reaching 5,000,000 Ounces, Candymin shall transfer to Minera Gavilan, an additional 2,000,000 common shares of Goldgroup as fully paid and non-assessable shares, free and clear of any and all encumbrances and restrictions save and except for a period of four months and a day imposed under Canadian securities laws and regulation and the policies of the Exchange; and                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (e)    | Forthwith upon Commercial Production and measured, indicated and inferred resources reaching 10,000,000 Ounces, Candymin shall transfer to Minera Gavilan, an additional 2,000,000 common shares of Goldgroup as fully paid and non-assessable shares, free and clear of any and all encumbrances and restrictions save and except for a period of four months and a day imposed under Canadian securities laws and regulation and the policies of the Exchange (the common shares of Goldgroup to be transferred to Minera Gavilan pursuant to this Section 3.2 are collectively referred to as the “Production Shares”). |

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|   | (a)    | the representations and warranties of Minera Gavilan contained in Schedule “E” of this Agreement will be true and correct in all material respects on the Closing Date with the same force and effect as if such representations and warranties were made at and as of such time;                                                                                                                   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | (b)    | all of the terms, covenants and conditions of this Agreement to be complied with or performed by Minera Gavilan on or before the Closing Date will have been complied with or performed in all material respects, or such compliance or performance will have been waived by Goldgroup and/or Candymin; and                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | (c)    | receipt by Candymin of a favourable opinion of Minera Gavilan’s Mexican counsel dated as of the Closing Date, in a form acceptable to Candymin and its counsel, acting reasonably, as to all legal matters reasonably requested by Goldgroup and Candymin relating to title to the mining claims, mining leases, concessions, permits and licences of occupation relating to the Caballo Blanco Property. |

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|   | (a)    | the representations and warranties of Goldgroup and Candymin contained in Schedule “D” of this Agreement will be true and correct in all material respects on the Closing Date with the same force and effect as if such representations and warranties were made at and as of such time; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                      |
|   | (b)    | all of the terms, covenants and conditions of this Agreement to be complied with or performed by Goldgroup and Candymin on or before the Closing Date will have been complied with or performed in all material respects, or such compliance or performance will have been waived by Minera Gavilan;      |

|   | (a) | Minera Gavilan shall deliver or cause to be delivered to Goldgroup and Candymin: |
|--------|-----|----------------------------------------------------------------------------------|

|   |   | (i)                                                                                 | a certificate of a senior officer of Minera Gavilan dated as of the Closing Date certifying that the representations and warranties of Minera Gavilan contained in Schedule “E” of this Agreement are true and correct in all material respects as of the date made and as of the Closing Date and that all covenants contained in the Agreement have been performed;                        |
|--------|--------|-------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (ii)                                                                                | an instrument of transfer and a quit claim deed, transferring and quit-claiming Minera Gavilan’s interest in the Caballo Option Agreement to Candymin, duly executed by Minera Gavilan;                                                                                                                                                                                                            |
|   |   |                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (iii)                                                                               | the Royalty Agreement, duly executed by Minera Gavilan; and                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (iv)                                                                                | the Irrevocable Proxy, duly executed by Minera Gavilan.                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (b)    | Goldgroup and/or Candymin shall deliver or cause to be delivered to Minera Gavilan: |
|   |   |                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (i)                                                                                 | certificates of a senior officer of each of Goldgroup and Candymin dated as of the Closing Date certifying that the representations and warranties of Goldgroup and Candymin contained in Schedule “D” of this Agreement are true and correct in all material respects as of the date made and as of the Closing Date and that all covenants contained in the Agreement have been performed; |

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|   |   | (ii)   | the sum of $2,500,000;                                                                                                                              |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                |
|   |   | (iii)  | the Royalty Agreement, duly executed by Candymin; and                                                                                               |
|   |   |   |                                                                                                                                                |
|   |   | (iv)   | an instrument of transfer and a quit claim deed, transferring and quit-claiming the El Cobre Interest to Minera Gavilan, duly executed by Candymin. |

|   |   | (i)    | maintain its corporate existence;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (ii)   | use its best efforts to cause such Title to be effectively transferred to Candymin as soon as reasonably practicable and in a manner satisfactory to Goldgroup and Candymin, acting reasonably, and Minera Gavilan acknowledges that Goldgroup and Candymin shall be permitted to take all such actions as they deem necessary or desirable to effect such transfer;                                                                                                                                                                                                                                                        |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (iii)  | maintain the Caballo Blanco Property and title thereto and hold the Caballo Blanco Property in trust for Candymin;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (iv)   | comply with all obligations, contractual or otherwise, relating to the Caballo Blanco Property as agent for Candymin, at Candymin’s cost and for Candymin’s benefit;                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (v)    | co-operate with Candymin in any reasonable and lawful arrangements requested by Candymin designed to provide the benefits of the Caballo Blanco Property to Candymin;                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (vi)   | enforce, at the request of Candymin, any rights of Minera Gavilan related to or arising from the Caballo Blanco Property against any third Person, including the right to elect to terminate any such rights in accordance with the terms of such rights upon the written direction of Candymin; and                                                                                                                                                                                                                                                                                                                        |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | (vii)  | in order that the full value of the Caballo Blanco Property may be realized for the benefit of Candymin, Minera Gavilan shall, at the request and expense and under the direction of Candymin, in the name of Minera Gavilan or otherwise as Candymin may specify, take all such action and do or cause to be done all such things as are, in the opinion of Candymin, necessary or proper in order that the obligations of Minera Gavilan in connection with the Caballo Blanco Property may be performed in such manner that the value of the Caballo Blanco Property is preserved and enures to the benefit of Candymin. |

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|   | (a)    | Minera Gavilan shall treat confidentially and not disclose, and shall cause each of its Representatives to treat confidentially and not disclose, other than as expressly contemplated by this Agreement, any Confidential Information of Candymin or Goldgroup, save and except such information as may be required to be disclosed under any applicable law, including applicable securities laws and the requirement of any applicable stock exchange, or by order of any applicable court.         |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (b)    | Minera Gavilan may disclose Confidential Information only to those Representatives who need to know such Confidential Information for the purpose of monitoring the Commercial Production in regards to the Royalty Agreement and Production Shares contemplated by this Transfer Agreement. Minera Gavilan shall not use, nor permit its Representatives to use, Confidential Information for any other purpose nor in any way that is, directly or indirectly, detrimental to Candymin or Goldgroup. |

|   | (a)    | Minera Gavilan shall not, enter into any transaction or perform any act which is inconsistent with the successful completion of the acquisition of the Caballo Blanco Property and the rights in and under the Caballo Option Agreement by Candymin pursuant to this Agreement; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                            |
|   | (b)    | Candymin and Goldgroup shall not, enter into any transaction or perform any act which is inconsistent with the successful completion of the transfer and quit claim of the El Cobre Interest; and                                                                               |

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|   | (c) | Minera Gavilan, Goldgroup and Candymin shall not take any action that would cause any of the representations and warranties in Schedule “D” and “E”, respectively, to become untrue on the Closing Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a)    | any incorrectness in or breach of any representation or warranty of Minera Gavilan contained in this Agreement or in any other agreement, certificate or instrument executed and delivered pursuant to this Agreement;                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                           |
|   | (b)    | any breach or any non-fulfillment of any covenant or agreement on the part of Minera Gavilan contained in this Agreement or in any other agreement, certificate or instrument executed and delivered pursuant to this Agreement; and           |
|   |   |                                                                                                                                                                                                                                           |
|   | (c)    | any taxes required to be paid by Minera Gavilan in connection with the Caballo Blanco Property, relating or attributable to any period ending on or before the commencement of the Option Period (as defined in the Caballo Option Agreement). |

|   | (a)    | any incorrectness in or breach of any representation or warranty of Candymin or Goldgroup contained in this Agreement or in any other agreement, certificate or instrument executed and delivered pursuant to this Agreement; and       |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                    |
|   | (b)    | any breach or any non-fulfillment of any covenant or agreement on the part of Candymin or Goldgroup contained in this Agreement or in any other agreement, certificate or instrument executed and delivered pursuant to this Agreement. |

|   | (a)    | by the written agreement of the Parties;                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (b)    | by any Party by written notice to the other at any time if there is instituted by or against the other Party proceedings in the nature of bankruptcy or under insolvency laws or for receivership or dissolution and the other Party does not in good faith contest such proceedings or the other Party makes an assignment for the benefit of its creditors or a receiver or receiver-manager is appointed or the other Party is adjudged bankrupt; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (c)    | by Goldgroup and/or Candymin as contemplated in Section 4.1; and                                                                                                                                                                                                                                                                                                                                                                                     |

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|   | (d) | by Minera Gavilan as contemplated in Section 4.2. |
|--------|-----|---------------------------------------------------|

|   | If to Minera Gavilan:              |
|--------|------------------------------------|
|   |                               |
|   | Minera Gavilan S.A. de C.V.        |
|   | Suite 1103, 750 West Pender Street |
|   | Vancouver, B.C. V6C 2T8            |
|   | Attention:                         | Morgan Poliquin |
|   | Telephone:                         | 604-689-7644 |
|   | Facsimile:                         | 604-689-7645 |

|   | If to Candymin:                  |
|--------|----------------------------------|
|   |                             |
|   | Candymin S.A. de C.V.            |
|   | c/o Goldgroup Mining Inc.        |
|   | Suite 2184, 1055 Dunsmuir Street |
|   | Vancouver, B.C. V7X 1L3          |
|   | Attention:                       | President |
|   | Telephone:                       | 604.682.1943 |
|   | Facsimile:                       | 604.682.5596 |
|   | Email:                           | jsutherland@goldgroupmining.com |

|   | If to Goldgroup:                 |
|--------|----------------------------------|
|   |                             |
|   | Goldgroup Mining Inc.            |
|   | Suite 2184, 1055 Dunsmuir Street |
|   | Vancouver, B.C. V7X 1L3          |
|   | Attention:                       | CFO |
|   | Telephone:                       | 604.682.1943 |
|   | Facsimile:                       | 604.682.5596 |
|   | Email:                           | jsutherland@goldgroupmining.com |

|   | With a copy to:                       |
|--------|---------------------------------------|
|   |                                  |
|   | Blake, Cassels & Graydon LLP      |
|   | Suite 2600 – 595 Burrard Street |
|   | Vancouver, B.C. V7X 1L3               |
|   | Attention:                            | Steve McKoen |
|   | Telephone:                            | 604.631.3300 |
|   | Facsimile:                            | 604.631.3309 |
|   | Email:                                | steve.mckoen@blakes.com |

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| By     | /s/Duane Poliquin    |   |
|--------|----------------------|--------|
|   | Authorized Signatory |   |

| By     | /s/John Sutherland   |   |
|--------|----------------------|--------|
|   | Authorized Signatory |   |

| By     | /s/Keith Piggott     |   |
|--------|----------------------|--------|
|   | Authorized Signatory |   |

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----

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|   | (a)    | all information, in whatever form communicated or maintained, that Candymin or Goldgroup discloses to, or that is gathered by inspection by Minera Gavilan or any of Minera Gavilan’s Representatives in the course of Minera Gavilan’s review of the transactions contemplated by this Agreement, whether provided before or after the date of this Agreement, that contains or otherwise reflects information concerning Goldgroup, Candymin or its businesses, affairs, financial condition, assets, liabilities, operations, prospects or activities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (b)    | all plans, proposals, reports, analyses, notes, studies, forecasts, compilations or other information, in any form, that are based on, contain or reflect any Confidential Information regardless of the identity of the Person preparing the same; and                                                                                                                                                                                                                                                                                                               |

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|                                       | (c)    | any matter relating to this Agreement or its terms;                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |                                                                                                                                                                                                                                                                                                                                                               |
| but does not include any information that: |
|                                       |
|                                       | (d)    | is at the time of disclosure to Minera Gavilan or thereafter becomes generally available to the public, other than as a result of a disclosure by Minera Gavilan or any of the Minera Gavilan’s Representatives in breach of this Agreement;                                                                                                                 |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                               |
|                                       | (e)    | is or was received by Minera Gavilan on a non-confidential basis from a source other than Goldgroup or Candymin or their Representatives if such source is not known to Minera Gavilan to be prohibited from disclosing the information to Minera Gavilan by a contractual, fiduciary or other legal confidentiality obligation in respect of such information; or |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                               |
|                                       | (f)    | was known by Minera Gavilan prior to disclosure in connection with the transactions contemplated by this Agreement and was not subject to any contractual, fiduciary or other legal confidentiality obligation on the part of Minera Gavilan.                                                                                                                      |

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|   | (a)    | Organization. It is a corporation duly organized and in good standing in its jurisdiction of incorporation and is qualified to do business and is in good standing in those jurisdictions where necessary in order to carry out the purposes of this Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (b)    | Authority. It has the capacity to enter into and perform this Agreement and all transactions contemplated herein and that all corporate, board of directors, shareholder, and other actions required to authorize it to enter into and perform this Agreement have been properly taken;                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (c)    | Conflicts. It will not breach any other agreement by entering into and performing this Agreement, nor will entering into and performing this Agreement result in a default under any instrument by which it is bound or to which its properties are subject nor will such actions conflict with or result in any violation of the provisions of any Laws;                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (d)    | Orders. It is not subject to any governmental order, judgment, decree, debarment, sanction or Laws that would preclude the permitting or implementation of this Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (e)    | Consents. No consent, approval, authorization, order, registration, notification or qualification of or with any court, government agency, or other regulatory authority is required in order that it may execute and deliver this Agreement and perform its obligations hereunder as contemplated herein,                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (f)    | Execution. This Agreement has been duly executed and delivered by it and is valid and binding upon it in accordance with its terms;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (g)    | Bankruptcy and Insolvency. It has not committed an act of bankruptcy, is not insolvent, has not proposed a compromising arrangement to its creditors generally, has not had a petition for a receiving order in bankruptcy filed against it, has not made a voluntary assignment in bankruptcy, has not taken any proceedings with respect to a compromise or arrangement, has not taken any proceeding to have itself declared bankrupt or wound-up, has not taken any proceeding to have a receiver appointed of any part of its assets, has not had any encumbrancer take possession of any of its property and has not had any execution or distress become enforceable or become levied upon any of its property; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (h)    | Interest in the Property. To the knowledge of Goldgroup and Candymin, neither Goldgroup nor Candymin have entered into any contract or done any act whereby the El Cobre Interest has been or may become impaired or encumbered or subject to an adverse interest;                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   | (i)    | Litigation. To the knowledge of Candymin and Goldgroup, there is no legal, administrative, arbitration or other proceeding, claim or action of any nature or investigation pending or to the knowledge of Goldgroup and Candymin, threatened against or involving the El Cobre Interest or which questions or challenges the validity of this Agreement, or any action taken or to be taken by Goldgroup or Candymin pursuant to this Agreement or any other agreement or instrument to be executed and delivered by Goldgroup or Candymin or in connection with the transactions contemplated hereby and neither Goldgroup or Candymin knows or has any reason to know of any valid basis for any such legal, administrative, arbitration or other proceeding, claim, action of any nature or investigation. Neither Goldgroup or Candymin is subject to any judgment, order or decree entered in any lawsuit or proceeding which has had or may be expected to have an adverse effect on the El Cobre Interest; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | (j)    | No Condemnation. Goldgroup and Candymin have not received notice of the existence of condemnation, expropriation or similar proceedings affecting the El Cobre Interest; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | (k)    | No Material Change. There has been no material change, as defined by national instrument 51-102, to the information provided by Goldgroup and Candymin to Minera Gavilan with respect to the Caballo Blanco Project or the El Cobre Project.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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|   | (a)    | Organization. It is a corporation duly organized and in good standing in its jurisdiction of incorporation and is qualified to do business and is in good standing in those jurisdictions where necessary in order to carry out the purposes of this Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (b)    | Authority. It has the capacity to enter into and perform this Agreement and all transactions contemplated herein and that all corporate, board of directors, shareholder, and other actions required to authorize it to enter into and perform this Agreement have been properly taken;                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (c)    | Conflicts. It will not breach any other agreement by entering into and performing this Agreement, nor will entering into and performing this Agreement result in a default under any instrument by which it is bound or to which its properties are subject nor will such actions conflict with or result in any violation of the provisions of any Laws;                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (d)    | Orders. It is not subject to any governmental order, judgment, decree, debarment, sanction or Laws that would preclude the permitting or implementation of this Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (e)    | Consents. No consent, approval, authorization, order, registration, notification or qualification of or with any court, government agency, or other regulatory authority is required in order that it may execute and deliver this Agreement and perform its obligations hereunder as contemplated herein;                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (f)    | Execution. This Agreement has been duly executed and delivered by it and is valid and binding upon it in accordance with its terms;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (g)    | Bankruptcy and Insolvency. It has not committed an act of bankruptcy, is not insolvent, has not proposed a compromising arrangement to its creditors generally, has not had a petition for a receiving order in bankruptcy filed against it, has not made a voluntary assignment in bankruptcy, has not taken any proceedings with respect to a compromise or arrangement, has not taken any proceeding to have itself declared bankrupt or wound-up, has not taken any proceeding to have a receiver appointed of any part of its assets, has not had any encumbrancer take possession of any of its property and has not had any execution or distress become enforceable or become levied upon any of its property; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | (h)    | No Brokers. Neither Almaden nor Minera Gavilan have agreed to pay any brokerage fees, finder’s fees, financial advisory fees, agent’s commissions or other similar forms of compensation in connection with the transactions contemplated by this Agreement or any similar transaction for which Minera Gavilan or Almaden may become responsible;                                                                                                                                                                                                                                                                                                                                                         |

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|   | (i)    | No Default. Minera Gavilan and Almaden are not in default under, and prior to the date of the Caballo Option Agreement there exists no event, condition or occurrence which, after notice or lapse of time or both, would constitute such a default or would trigger a right of termination under any contract, agreement, lease, license, permit, or other instrument or obligation in connection with the Caballo Blanco Property;                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   | (j)    | Material Contracts. Minera Gavilan and Almaden have no material contractual commitments or obligations that affect their interest in the Caballo Blanco Property, except for this Agreement, the Caballo Option Agreement and the Spanish language restatement of the Caballo Option Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|   | (k)    | Licences, Permits, etc. At all times, prior to the date of the Caballo Option Agreement, when conducting its business in connection with the Caballo Blanco Property, Minera Gavilan possessed all necessary licences, permits, authorizations, approvals or other evidence of authority necessary to properly conduct such business (the “Licenses”). As at the Closing Date, to the knowledge of Almaden and Minera Gavilan, each License is (i) in full force and effect; and (ii) not subject to any dispute. As at the Closing Date, to the knowledge of Almaden and Minera Gavilan, no event has occurred which, with the giving of notice, lapse of time or both, could constitute a default under, or in respect of, any License;                                                                                                                                     |
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|   | (l)    | Interest in the Property. To the knowledge of Almaden and Minera Gavilan, Minera Gavilan is the beneficial owner of an undivided 30% interest in the Caballo Blanco Property and the registered owner of 100% interest in the Caballo Blanco Property, free and clear of any and all Encumbrances, subject to the Existing Encumbrances and the Caballo Option Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   | (m)    | Adverse Interests. Save and except for the Existing Encumbrances, the Caballo Option Agreement and this Agreement, to the knowledge of Almaden and Minera Gavilan, there are no other agreements, adverse interests or options to acquire or purchase the Caballo Blanco Property or any portion thereof. To the knowledge of Almaden and Minera Gavilan, no Person has any proprietary or possessory interest in the Caballo Blanco Property, subject only to the Existing Encumbrances and the Caballo Option Agreement. Save and except for the Existing Encumbrances, the Caballo Option Agreement and NGEx Agreement to the knowledge of Almaden and Minera Gavilan, no Person is entitled to any royalty or other payment in the nature of rent or royalty on any minerals, metals or concentrates or any other such products removed or produced from the Caballo Blanco Property; |

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|   | (n)    | Compliance with Laws. Prior to the date of the Caballo Option Agreement, each of Almaden and Minera Gavilan have fully complied with all Applicable Laws, including without limitation, Environmental Laws, and Almaden and Minera Gavilan, have not received notice of any breach, violation or default with respect to the Caballo Blanco Property. To the knowledge of Almaden and Minera Gavilan, all of the rights and titles relating to the Caballo Blanco Property have been validly recorded in accordance with the laws of Mexico. To the knowledge of Almaden and Minera Gavilan, conditions on and relating to the Caballo Blanco Property are in compliance with all Applicable Laws, including without limitation, Environmental Laws;                                                                                                                                                                                                                                              |
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|   | (o)    | Property in Good Standing. To the knowledge of Almaden and Minera Gavilan, the mining claims forming part of the Caballo Blanco Property are in good standing or pending and prior to the date of the Caballo Option Agreement no event, condition or occurrence existed that, after notice or lapse of time or both, would constitute a default with respect to the Caballo Blanco Property;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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|   | (p)    | Hazardous Substances. To the knowledge of Almaden and Minera Gavilan, prior to the date of the Caballo Option Agreement no Hazardous Substance has been placed, held, located, used or disposed of, on, under or at the Caballo Blanco Property. To Almaden and Minera Gavilan’s knowledge, no claim has ever been asserted and there are no present circumstances known to Almaden and Minera Gavilan which could reasonably form the basis for the assertion of any claim against Minera Gavilan or Almaden for Losses of any kind as a direct or indirect result of the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release from the Caballo Blanco Property of any Hazardous Substance;                                                                                                                                                                                                                                                      |
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|   | (q)    | Work Orders. To the knowledge of Almaden and Minera Gavilan, prior to the date of the Caballo Option Agreement there are no outstanding work orders or actions required or reasonably anticipated to be required to be taken in respect of the rehabilitation or restoration of the Caballo Blanco Property or relating to environmental matters in respect of the Caballo Blanco Property or any operations thereon, nor has Almaden or Minera Gavilan received notice of same;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|   | (r)    | Mining Practices. To the knowledge of Almaden and Minera Gavilan, prior to the date of the Caballo Option Agreement, the prospecting work, processes, undertaking and other operations carried on in respect of the Caballo Blanco Property were carried on or conducted in a sound and workmanlike manner and in compliance with sound geological, geochemical and geophysical exploration and mining, engineering and metallurgical practices and, on or after the date of the Caballo Option Agreement, the prospecting work, processes, undertaking and other operations carried on or conducted by or on behalf of Minera Gavilan in respect of the Caballo Blanco Property have been carried on or conducted in a sound and workmanlike manner and in compliance with sound geological, geochemical and geophysical exploration and mining, engineering and metallurgical practices. All such work, processes, undertaking and other operations are in compliance with all Applicable Laws; |

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|   | (s)    | Litigation. There is no legal, administrative, arbitration or other proceeding, claim or action of any nature or investigation pending or to the knowledge of Almaden and Minera Gavilan, threatened against or involving the Caballo Blanco Property or which questions or challenges the validity of the Caballo Option Agreement or this Agreement, or any action taken or to be taken by Almaden or Minera Gavilan pursuant to this Agreement or any other agreement or instrument to be executed and delivered by Almaden or Minera Gavilan or in connection with the transactions contemplated hereby and neither Almaden or Minera Gavilan knows or has any reason to know of any valid basis for any such legal, administrative, arbitration or other proceeding, claim, action of any nature or investigation. Neither Almaden or Minera Gavilan is subject to any judgment, order or decree entered in any lawsuit or proceeding which has had or may be expected to have an adverse effect on the Caballo Blanco Property; |
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|   | (t)    | No Condemnation. Almaden and Minera Gavilan have not received notice of the existence of condemnation, expropriation or similar proceedings affecting the Caballo Blanco Property;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|   | (u)    | All Material Information. Each of Almaden and Minera Gavilan have made available to Goldgroup and/or NGEx Resources Ltd. all technical data in their possession or under their control relating to the Caballo Blanco Property and have provided to Goldgroup all notices in their possession, or of which Almaden and Minera Gavilan have knowledge, material to conducting mining operations on the Caballo Blanco Property received from any Governmental Authority having jurisdiction over the Caballo Blanco Property and during the Interim Period shall continue to make available to Goldgroup all such technical information or notices in their possession or under their control relating to the Caballo Blanco Property;                                                                                                                                                                                                                                                                                                 |
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|   | (v)    | No Material Change. There has been no material change, as defined by national instrument 51-102, to the information provided by Almaden and Minera Gavilan to Goldgroup and Candymin with respect to the Caballo Blanco Project or the El Cobre Project; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   | (w)    | Insider. Almaden and Minera Gavilan are not insiders of Goldgroup, as defined by the Securities Act (British Columbia) or under Canadian securities laws and regulations and the policies of the Exchange. Almaden and Minera Gavilan are not acting jointly or in concert with any insiders of Goldgroup.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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