MINISTRY OF NATURALRESOURCES & ENVIRONMENT
            __________
            No: 67/GP  BTNMT
        
        SOCIALIST REPUBLIC OF VIETNAMIndependence - Freedom  Happiness
            ____________________
            Ha Noi, January 10th 2008


MINISTER OF NATURAL RESOURCES & ENVIRONMENT

Pursuant to the Mineral Law dated 20 March 1996; Law on Amendment and Supplement  to some articles of Mineral Law dated 14 June 2005;

Pursuant to Decree No. 160/2005/ND-CP dated 27 December 2005 by the Government providing detailed guidelines for the implementation of Mineral Law and Law on Amendment and Supplement to some articles of Mineral Law;

Pursuant to Decree 91/2002/ND-CP dated 11 November 2002 by the Government stipulating functions, responsibility, power and structure of the Ministry of Natural Resources and Environment;

Pursuant to the Prime Ministers opinions stated in the Official letter No. 2581/VPCP-CN dated 16 May 2007 issued by the Government office regarding primary gold exploration in Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;

Pursuant to the Investment Licence No. 2355/GP dated 20 October 2003 by the Ministry of Planning and Investment regarding approval on the establishment of Phuoc Son Gold Company Limited;

Pursuant to the opinion of the Ministry of Industry (Official letter No. 1270/BCN-CLH dated 29 March 2007); the opinion of the Department of Forestry under the Ministry of Agriculture and Rural Development (Official letter No. 1143/CV-SDR dated 3 August 2007) regarding primary gold exploration in Phuoc Son district, Quang Nam province;

In consideration of recommendations by the Quang Nam Peoples Committee in the Official letter No. 1784/UBND-KTN dated 22 June 2006 and Official letter No. 471/UBND-KTN dated 01 March 2007 regarding primary gold exploration in Phuoc Son, Quang Nam;

After perusing the exploration licence application submitted by PSGC on 06 July 2005, resubmitted on 04 September 2007 and the evaluation report by the Committee for Mineral Activity Project and Report Assessment of the Ministry of Natural Resources and Environment in the meeting dated 14 June 2007 regarding the gold exploration program in Phuoc Son area, Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;

At the resquest of the Director General of the Department of Geology and Minerals of Vietnam.





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DECIDES

Article 1: To permit Phuoc Son Gold Company Limited to do exploration for primary gold in Phuoc Son area, Phuoc Duc and Phuoc Xuan communes, Phuoc Son district, Quang Nam province;

1.
        Exploration area: 42 km2 (forty two sq.km) specified on the 1/50000 scale topographic map No F-48-45-A (VN2000 system) or 6540 III and 6539 IV sheets (UTM system) as specified by controlling points numbered from 1 to 17 shown on the exploration area map and Appendix 1 annexed to this Licence, not including the two sub-areas of 1.52 ha specified by points numbered from 18 to 41 which are of the Mining Licence No 116/GP-BTNMT granted by the Ministry of Natural Resource and Environment on 23 January 2006;


2.
        Volume of key exploration work: indicated in Appendix 2 attached hereto;


3.
        Exploration term: 24 (twenty four) months from the signing date of this licence;


4.
        Exploration expenditure: self-funded by the Company (applying the currently relevant unit prices);


5.
        Escrow registered at the State Treasury or banks (either Vietnam State Bank or a foreign bank permitted to operate in Vietnam): US$ 161,728.75 (One hundred and sixty one thousand, seven hundred and twenty eight US dollars, seventy five cents).


Article 2:PSGC shall be responsible for:

1.
        Carrying out exploration for primary gold as stipulated in Article 1 of this licence and exploration methods and programs approved by the Committee for Mineral Activity Project and Report Assessment of the Ministry of Natural Resources and Environment dated 14 June 2007; executing the exploration work in accordance with technical procedures and requirements on labor safety and environment protection; inspecting and undertaking responsibility for quantity, quality  and accuracy of reports on project implementation; filing original documents and relevant field  documents and protecting samples and drill cores as required by relevant regulations;


2.
        Registering the escrow in accordance with the Law and as stipulated in Article 1 of this licence; submitting the Department of Geology and Minerals of Viet Nam (DGMV) the confirmation letter of the State Treasury or the bank where the escrow is registered so that DGMV can control, inspect and decide whether to return or confiscate the escrow to the State Budget as stipulated by the law;


3.
        Prior to conducting metallurgical sampling, sample weight, location, sampling schedule and methods should be registered with the Quang Nam Department of Natural Resources and Environment for site inspection and supervision.


4.
        Protecting mineral resources; mining activities are strictly prohibited during exploration;


5.
        Timely reporting in writing to the Ministry of Natural Resources and Environment  for appropriate consideration if any other (than gold) kind of mineral is discovered during exploration;






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6.
        Submitting the exploration reports for evaluation and approval by the Committee of Mineral Reserve Assessment; submitting reports to the Geological Archive and mineral samples to the Geological Museum as stipulated by current regulations.


Article 3: The approved exploration programs can be only commenced after the exploration programs are informed to the Quang Nam Department of Mineral Resources and Environment, the Higher Command of the Fifth Military Zone and local authorities for co-ordinating in management, inspection and location of the exploration area, coordinates and landmarks.

In case PSGC fails to comply with regulations of the Mineral Law and Law on Amendment and Supplement to some articles of the Mineral Law and other related legal documents, or fails to fulfill its obligations stated herein, this licence shall be revoked as regulated by the Mineral Law and PSGC shall undertake all legal liabilities for related issues.



Distribution:
            - QNPC
            - Legal Dept (MoNRE)
            - Office of the Committee of Mineral Reserve Assessment
            - Central Vietnam Mineral Branch
            - Quang Nam Dept of Natural Resources & Environment
            - PSGC (02)
            - File
        
        For the Minister
Vice Minister

            (signed and sealed)

            
            Tran The Ngoc


The exploration licence is registered

at the Department of Geology and Minerals of Vietnam

Registration no. 07DK/TD

Hanoi, 18 January 2008

For and on be half of theDirector General

Deputy Director General

(signed and sealed)

Trinh Xuan Ben





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MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

APPENDIX 1

TABLE OF COORDINATES OF GOLD EXPLORATION AREA AT PHUOC SON, PHUOC DUC AND PHUOC XUAN COMMUNES, PHUOC SON DISTRICT, QUANG NAM PROVINCE

(Attached to Exploration Licence no. 67/GP-BTNMT dated 10 January 2008 by Ministry of Natural Resources and Environment)

1. Coordinates of exploration area:



VN-2000 system(Central meridian 105o, 6 degree projection zone)
        
        UTM systemPoints
        
        X (m)
        
        Y (m)
        
        X (m)
        
        Y (m)1.
        
        1720 627
        
        789 635
        
        1720 188
        
        790 2402.
        
        1716 776
        
        793 103
        
        1716 337
        
        793 7083.
        
        1716 422
        
        792 709
        
        1715 983
        
        793 3144.
        
        1714 327
        
        794 595
        
        1713 888
        
        795 2005.
        
        1709 846
        
        794 595
        
        1709 407
        
        795 2006.
        
        1706 289
        
        790 645
        
        1705 805
        
        791 2507.
        
        1711 695
        
        789 645
        
        1709 256
        
        791 2508.
        
        1711 385
        
        789 123
        
        1710 946
        
        789 7289.
        
        1712 693
        
        790 421
        
        1712 254
        
        791 02610.
        
        1713 752
        
        790 395
        
        1713 313
        
        791 00011.
        
        1713 793
        
        789 861
        
        1713 354
        
        790 46612.
        
        1714 280
        
        789 178
        
        1713 841
        
        789 78313.
        
        1714 792
        
        789 846
        
        1714 353
        
        790 45114.
        
        1714 978
        
        789 975
        
        1714 539
        
        790 58015.
        
        1715 270
        
        789 742
        
        1714 831
        
        790 34716.
        
        1715 810
        
        780 128
        
        1715 371
        
        790 73317.
        
        1717 114
        
        790 336
        
        1716 675
        
        790 491


2. Coordinates of the areas of Mining Licence no. 116/GP-BTNMT granted by Ministry of Natural Resources and Environment on 23 January 2006:



VN-2000 system
            (Central meridian 105o, 6 degree projection zone)
        
        UTM systemPoints
        
        X (m)
        
        Y (m)
        
        X (m)
        
        Y (m)18.
        
        1708 737
        
        791 904
        
        1708 298
        
        792 50919.
        
        1708 719
        
        791 954
        
        1708 280
        
        792 55920.
        
        1708 694
        
        791 954
        
        1708 255
        
        792 55921.
        
        1708 612
        
        791 916
        
        1708 173
        
        792 52122.
        
        1708 561
        
        791 880
        
        1708 122
        
        792 48523.
        
        1708 600
        
        791 871
        
        1708 161
        
        792 47624.
        
        1708 645
        
        791 813
        
        1708 206
        
        792 41825.
        
        1708 696
        
        791 841
        
        1708 257
        
        792 44626.
        
        1708 680
        
        791 860
        
        1708 241
        
        792 46527.
        
        1708 676
        
        791 914
        
        1708 237
        
        792 51928.
        
        1708 709
        
        791 926
        
        1708 270
        
        792 53129.
        
        1709 634
        
        792 242
        
        1709 195
        
        792 84730.
        
        1709 609
        
        792 259
        
        1709 170
        
        792 86431.
        
        1709 608
        
        792 243
        
        1709 169
        
        792 84832.
        
        1709 581
        
        792 200
        
        1709 142
        
        792 80533.
        
        1709 585
        
        792 175
        
        1709 146
        
        792 78034.
        
        1709 569
        
        792 149
        
        1709 130
        
        792 75435.
        
        1709 557
        
        792 145
        
        1709 118
        
        792 75036.
        
        1709 554
        
        792 072
        
        1709 115
        
        792 67737.
        
        1709 556
        
        792 072
        
        1709 127
        
        792 67738.
        
        1709 568
        
        792 108
        
        1709 129
        
        792 71339.
        
        1709 579
        
        792 096
        
        1709 140
        
        792 70140.
        
        1709 604
        
        792 096
        
        1709 165
        
        792 70141.
        
        1709 609
        
        792 225
        
        1709 170
        
        792 830






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MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

APPENDIX 2

TABLE OF WORK VOLUME OF PRIMARY GOLD EXPLORATION AT PHUOC SON, PHUOC DUC AND PHUOC XUAN COMMUNES, PHUOC SON DISTRICT, QUANG NAM PROVINCE

(Attached to Exploration Licence no. 67/GP- BTNMT dated 10 January 2008 by Ministry of Natural Resources and Environment)



Work VolumeNo.
        
        Items
        
        Unit
        
        The 1st year
        
        The 2nd year
        
        Total1.
        
        1/2000 scale geological maping
        
        km2
        
        10
        
        10
        
        20- Griding
        
        km
        
        60
        
        50
        
        1102.
        
        1/5000 scale geotechnical  hydrogeological mapping
        
        Km2
        
        
        
        5
        
        5- Pump test
        
        point
        
        
        
        5
        
        53.
        
        Geochemical survey and sampling- Soil sampling
        
        sample
        
        0
        
        3,500
        
        3,500- Rock, ore, drill core sampling
        
        sample
        
        2,000
        
        2,000
        
        4,0004.
        
        Sample Preparation
        
        sample- Soil sample
        
        sample
        
        0
        
        3,500
        
        3,500- Sample of rock, ore,...
        
        sample
        
        2,000
        
        2,000
        
        4,0005.
        
        Sample Analysis
        
        sample- Thin section and polished section
        
        sample
        
        50
        
        25
        
        75- Petrological sample
        
        sample
        
        100
        
        50
        
        150- Soil sample
        
        sample
        
        0
        
        3,500
        
        3,500- Rock and ore sample
        
        sample
        
        2,000
        
        2,000
        
        4,000- Metallurgical sample
        
        sample
        
        1
        
        1
        
        2- Water sample
        
        sample
        
        
        
        20
        
        20- Geo-mechanical sample
        
        sample
        
        
        
        40
        
        406.
        
        Geophysical work (surface)- IP
        
        point
        
        4,000
        
        0
        
        4,000- Dipole survey
        
        point
        
        50
        
        0
        
        507.
        
        Trenching and pitting- Trenching
        
        m3
        
        2,000
        
        1,500
        
        3,500- Outcrop clearing
        
        m3
        
        100
        
        200
        
        3008.
        
        Topographic Survey- Locate workings from the site onto the map
        
        work
        
        100
        
        100
        
        200- IV level GPS grid establishment
        
        point
        
        
        
        5
        
        5- 2nd level traverses
        
        point
        
        
        
        15
        
        15- 3rd level traverses
        
        point
        
        
        
        30
        
        30- 1/2000 scale topographic survey
        
        km2
        
        
        
        5
        
        59.
        
        Exploration drilling
        
        m
        
        4,500
        
        8,135
        
        12,635- Contingency
        
        m
        
        
        
        10,000
        
        10,00010.
        
        Other expenditures- Compensation
        
        estimated- Sample dispatch
        
        kg
        
        1,050
        
        1,913
        
        2,963- Camp (2%)






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