Exhibit 10.1


    
      

      

    

    

      CHAMBERS
        TOWNSHIP PROPERTY OPTION AGREEMENT

      


      


      THIS
        AGREEMENT
        dated
        for reference July 6, 2005.

      


      


      BETWEEN:

      


      DAVID
        LARONDE, P.O.
        Box.
        482, Temagami, Ontario, P0H 2H0;

      


      ("Laronde")

      


      OF
        THE
        FIRST PART

      


      AND:

      


      MOBRIDGE
        EXPLORATIONS, INC,
        a body
        corporate, duly incorporated under the laws of the State of Nevada and having
        its head office at 13 Bastedo Crescent, Marathon, Ontario, P0T 2EO;

      


      ("Mobridge")

      


      OF
        THE
        SECOND PART

      


      W
        H E R E
        A S :

      


      A.     Laronde
        is the registered and beneficial owner of the one mineral property claim
        located
        in Chambers Township, Sudbury Mining Division, Ontario, which claim is more
        particularly described in Schedule "A" attached hereto which forms a material
        part hereof (collectively, the "Claim");

      


      B.     Laronde
        has agreed to grant to Mobridge the sole and exclusive right, privilege and
        option to explore the Claim together with the sole and exclusive right,
        privilege and option to purchase the Claim upon the terms and conditions
        hereinafter set forth;

      


      NOW
        THEREFORE THIS AGREEMENT WITNESSETH
        that in
        consideration of the mutual covenants and provisos herein contained,
THE
        PARTIES HERETO AGREE AS FOLLOWS:

      


      
        	
                1.

              	
                OPTIONOR’S
                  REPRESENTATIONS

              


      

      


      
        	1.1	
                Laronde
                  represents and warrants to Mobridge
                  that:

              


      

      


      
        	 	
                (a)

              	
                Laronde
                  is the registered and beneficial owner of the Claim and holds the
                  right to
                  explore and develop the Claim;

              


      

      


      
        	 	
                (b)

              	
                Laronde
                  holds the Claim free and clear of all liens, charges and claims
                  of others,
                  and Laronde has a free and unimpeded right of access to the Claim
                  and has
                  use of the Claim surface for the herein
                  purposes;

              


      

      



      
        
           

        

        
          
          

          
            

          

        

        
           

        

      


      


      
        	 	
                (c)

              	
                The
                  Claim has been duly and validly located and recorded in a good
                  and
                  miner-like manner pursuant to the laws of the Province of Ontario
                  and are
                  in good standing in Ontario as of the date of this
                  Agreement;

              


      

      


      
        	 	
                (d)

              	
                There
                  are no adverse claims or challenges against or to the Laronde's
                  ownership
                  of or title to the Claim nor to the knowledge of Laronde is there
                  any
                  basis therefor, and there are no outstanding agreements or options
                  to
                  acquire or purchase the Claim or any portion
                  thereof;

              


      

      


      
        	 	
                (e)

              	
                Laronde
                  has the full right, authority and capacity to enter into this Agreement
                  without first obtaining the consent of any other person or body
                  corporate
                  and the consummation of the transaction herein contemplated will
                  not
                  conflict with or result in any breach of any covenants or agreements
                  contained in, or constitute a default under, or result in the creation
                  of
                  any encumbrance under the provisions of any indenture, agreement
                  or other
                  instrument whatsoever to which Laronde is a party or by which he
                  is bound
                  or to which he is subject; and

              


      

      


      
        	 	
                (f)

              	
                No
                  proceedings are pending for, and Laronde is unaware of any basis
                  for, the
                  institution of any proceedings which could lead to the placing
                  of Laronde
                  in bankruptcy, or in any position similar to
                  bankruptcy.

              


      

      


      1.2       The
        representations and warranties of Laronde set out in paragraph 1.1 above
        form a
        part of this Agreement and are conditions upon which Mobridge has relied
        in
        entering into this Agreement and shall survive the acquisition of any interest
        in the Claim by Mobridge .

      


      1.3       Laronde
        will indemnify Mobridge from all loss, damage, costs, actions and suits arising
        out of or in connection with any breach of any representation, warranty,
        covenant, agreement or condition made by Laronde and contained in this
        Agreement.

       

      1.4       Laronde
        acknowledges and agrees that Mobridge has entered into this Agreement relying
        on
        the warranties and representations and other terms and conditions of this
        Agreement and that no information which is now known or which may hereafter
        become known to Mobridge shall limit or extinguish the right to indemnity
        hereunder, and, in addition to any other remedies it may pursue, Mobridge
        may
        deduct the amount of any such loss or damage from any amounts payable by
        it to
        Laronde hereunder.

      


      
        	2.	
                MOBRIDGE'S
                  REPRESENTATIONS

              


      

      


      Mobridge
        warrants and represents to Laronde that it is a body corporate, duly
        incorporated under the laws of the State of Nevada with full power and absolute
        capacity to enter into this Agreement and that the terms of this Agreement
        have
        been authorized by all necessary corporate acts and deeds in order to give
        effect to the terms hereof.

      


      
        	3.	
                GRANT
                  OF OPTION

              


      


      
        
           

        

        
          2

          
            

          

        

        
           

        

      


      


      Laronde
        hereby gives and grants to Mobridge the sole and exclusive right and option
        to
        acquire a l00% undivided right, title and interest in and to the Claim (the
        "Option"), subject to a 3% net smelter returns royalty and a 2% gross overriding
        royalty on diamond production on the Claims, as described respectively in
        Schedules B and C attached to this Agreement, by performing the acts and
        deeds
        and paying the sums provided for in paragraph 4.

      


      
        	4.	
                CONSIDERATION
                  FOR THE GRANT OF OPTION

              


      

      


      
        	4.1	
                In
                  order to keep the Option in respect of the Claim in good standing
                  and in
                  force and effect, Mobridge shall be obligated
                  to:

              


      

      


      Cash
        Payment

       

      
        	
              	(a)	
                Pay
                  to Laronde a total of $40,000
                  as follows:

              


      

      


      
        	
              	(i)	
                $3,500
                  immediately upon execution of this agreement by all parties;
                  

              


      

      


      
        	
              	(ii)	
                an
                  additional $6,500 by July 6, 2006; 

              


      

      


      
        	
              	(iii)	
                an
                  additional $10,000 by July 6, 2007;
                  and

              


      

      


      
        	
              	(iv)	
                an
                  additional $20,000 by July 6, 2008.

              


      

      


      Expenditure
        Commitments

      


      
        	 	
                (b)

              	
                Incur,
                  or cause to be incurred, exploration work on the Claims totalling
                  at least
                  $145,000 by June 6, 2009, which work shall be conducted by Mobridge
                  under
                  the direction of a qualified geologist or project engineer, as
                  follows:

              


      

      


      
        	 	 	
                (i)

              	
                $6,000
                  in
                  expenditures on the Claim by Dec 15, 2005. Mobridge’s completion of these
                  expenditures is mandatory;

              


      

      


      
        	 	 	
                (ii)

              	
                No
                  less than a further $14,000
                  of
                  expenditures to be incurred on the Claim by July 6, 2006;

              


      

      


      
        	
              	(iii)	
                No
                  less than a further $25,000 of expenditures to be incurred on the
                  Claim by
                  July 6, 2007; 

              


      

      


      
        	 	
                (iv)

              	
                No
                  less than a further $40,000 of expenditures to be incurred on the
                  Claim by
                  July 6, 2008; and

              


      

      


      
        	 	 	
                (v)

              	
                No
                  less than a further $60,000 of expenditures to be incurred on the
                  Claim by
                  July 6, 2009. 

              


      

      


      


      Assessment
        Work

      


      
        	 	
                (c)

              	
                Pay,
                  or cause to be paid, to Laronde, or on Laronde's behalf, as Mobridge
                  may
                  determine, all Claims payments and assessment work required to
                  keep the
                  Claim and this Option in good standing during the term of this
                  Agreement.

              


      


      
        
           

        

        
          3

          
            

          

        

        
           

        

      


      


      4.3       Mobridge
        shall deliver all consideration due to the Laronde under paragraph 4.1 directly
        in his name.

      


      
        	5.	
                PERIPHERAL
                  INTEREST

              


      

      


      Mobridge
        agrees that any other right or interest acquired in any mineral property
        claim
        group within a two kilometer distance of the boundaries of the Claim will
        form
        part of the Claim for the purpose of this agreement. Any additional mineral
        property right or interest that Mobridge may acquire shall be included under
        the
        provisions of paragraph 6.1.

      


      
        	6.	
                RIGHT
                  TO ABANDON PROPERTY
                  INTERESTS

              


      

      


      6.1       Should
        Mobridge, in its sole discretion, determine that any part of the Claim no
        longer
        warrants further exploration and development, then Mobridge may abandon such
        interest or interests without affecting its rights or obligations under this
        Agreement, so long as Mobridge provides Laronde with 30 days notice of its
        intention to do so. Upon receipt of such notice, Laronde may request Mobridge
        to
        retransfer the title to such interest or interests to him, and Mobridge hereby
        agrees to do so, and upon expiry of the 30 days, or upon the earlier transfer
        thereof, such interests shall cease to be part of the Claim for the purposes
        of
        this Agreement.

      


      6.2       Any
        Claim
        that Mobridge returns to Laronde in accordance with paragraph 6.1 shall have
        a
        minimum of one year of assessment work credited against it at the time of
        return.

      


      
        	7.	
                TERMINATION
                  OF OPTION

              


      

      


      7.1       Subject
        to paragraph 7.2, the Option shall terminate if Mobridge fails to make the
        required cash payments, advance royalty payments or, fails to complete the
        required assessment work in accordance with paragraph 4.1 herein within the
        time
        periods specified therein.

      


      7.2       If
        Mobridge shall be in default of any requirement set forth in paragraph 4.1
        herein, Laronde shall give written notice to Mobridge specifying the default
        and
        Mobridge shall not lose any rights granted under this Agreement, unless within
        30 days after the giving of notice of default by Laronde, Mobridge has failed
        to
        take reasonable steps to cure the default by the appropriate
        performance.

      


      7.3       If
        the
        Option is terminated in accordance with paragraphs 7.1 and 7.2 herein, Mobridge
        shall have no interest in or to the Claim, and all share issuances, expenditures
        and payments made by Mobridge to or on behalf of Laronde under this Agreement
        shall be non-refundable by Laronde to Mobridge for which Mobridge shall have
        no
        recourse. Within 60 days of such termination, Mobridge shall transfer the
        Claim
        back to Laronde, failing which, Laronde shall have the right to act as attorney
        for Mobridge for the purpose of such transfer.

      



      
        
           

        

        
          4

          
            

          

        

        
           

        

      


      


      
        	8.	
                ACQUISITION
                  OF INTERESTS IN THE
                  PROPERTY

              


      

      


      At
        such
        time as Mobridge has made the required cash payments and exploration
        expenditures in accordance with paragraph 4.1 herein, within the time periods
        specified therein, then the Option shall be deemed to have been exercised
        by
        Mobridge, and Mobridge shall have thereby, without any further act, acquired
        an
        undivided 100% interest in and to the Claim.

      


      
        	9.	
                RIGHT
                  OF ENTRY

              


      

      


      For
        so
        long as the Option continues in full force and effect, Mobridge, its employees,
        agents, permitted assigns and independent contractors shall have the sole
        and
        exclusive right and option to:

      


      
        	 	
                (a)

              	
                enter
                  upon the Claim;

              


      

      


      
        	 	
                (b)

              	
                have
                  exclusive and quiet possession of the
                  Claim;

              


      

      


      
        	 	
                (c)

              	
                incur
                  expenditure;

              


      

      


      
        	 	
                (d)

              	
                bring
                  upon and erect upon the Claim such mining facilities as Mobridge
                  may
                  consider advisable; and

              


      

      


      
        	 	
                (e)

              	
                remove
                  from the Claim and sell or otherwise dispose of mineral
                  products.

              


      

      


      
        	10.	
                NET
                  SMELTER RETURNS ROYALTY

              


      

      


      10.1
              On
        the
        date Mobridge commences commercial production on the Claim, Laronde shall
        be
        entitled to receive and Mobridge shall pay to Laronde 3% of net smelter returns.
        "Commercial production" shall not include milling of ores for the purpose
        of
        testing or milling by a pilot plant or milling during an initial tune-up
        period
        of a plant.

      


      10.2
              Mobridge
        shall be under no obligation whatsoever to place the Claim into commercial
        production and in the event they are placed into commercial production, Mobridge
        shall have the right, at any time, to curtail or suspend such production
        as it,
        in its absolute discretion, may determine. 

      


      10.2
              Mobridge
        shall be entitled to, but under no obligation whatsoever, purchase up to
        2% of
        the 3% of net smelter returns held by Laronde at a rate of $500,000 per 0.5%
        of
        net smelter return.

      


      
        	11.	
                OPERATOR

              


      

      


      11.1      After
        the
        execution of this Agreement, Mobridge, or at Mobridge's option, its respective
        associate or nominee or such other unrelated entity as it may determine,
        will
        act as the operator of the Claim under this Agreement. Mobridge, if operator,
        may resign as the operator at any time by giving 30 calendar days prior written
        notice to Laronde, and within such 30 day period, Mobridge may appoint another
        party who covenants to act as the operator of the Claim upon such terms as
        Mobridge sees fit.


      
        
           

        

        
          5

          
            

          

        

        
           

        

      


      


      11.2   Notwithstanding
        paragraph 11.1, Laronde shall have the right to conduct and supervise all
        of
        Mobridge’s exploration and development work on the Claim and to be compensated
        at competitive industry rates.

      


      
        	12.	
                POWER
                  AND AUTHORITY OF THE
                  OPERATOR

              


      

      


      12.1  After
        the
        execution of this Agreement, the Operator shall have full right, power and
        authority to do everything necessary or desirable in connection with the
        exploration and development of the Claims and to determine the manner of
        operation of the Claim as a mine. 

      


      12.2  Where
        possible, the Operator shall insure that all field work is conducted, and
        that
        all assay and work program results are verified, by a third party independent
        from Mobridge.

      


      
        	13.	
                REGISTRATION
                  OF PROPERTY INTERESTS

              


      

      


      Upon
        the
        request of Mobridge, Laronde shall assist Mobridge to record this Agreement
        with
        the appropriate mining recorder and, when required, Laronde shall further
        provide Mobridge with such recordable documents as Mobridge and its counsel
        shall require to record its due interest in respect of the Claim.

      


      
        	14.	
                FURTHER
                  ASSURANCES

              


      

      


      The
        parties hereto agree to do or cause to be done all acts or things necessary
        to
        implement and carry into effect the provisions and intent of this
        Agreement.

      


      
        	15.	
                FORCE
                  MAJEURE

              


      

      


      If
        Mobridge is prevented from or delayed in complying with any provisions of
        this
        Agreement by reasons of strikes, labour disputes, lockouts, labour shortages,
        power shortages, fires, wars, acts of God, governmental regulations restricting
        normal operations or any other reason or reasons beyond the control of Mobridge,
        the time limited for the performance of the various provisions of this Agreement
        as set out above shall be extended by a period of time equal in length to
        the
        period of such prevention and delay, and Mobridge, insofar as is possible,
        shall
        promptly give written notice to Laronde of the particulars of the reasons
        for
        any prevention or delay under this section, and shall take all reasonable
        steps
        to remove the cause of such prevention or delay and shall give written notice
        to
        Laronde as soon as such cause ceases to exist.

      


      
        	16.	
                CONFIDENTIAL
                  INFORMATION

              


      

      


      No
        information furnished by Mobridge to Laronde hereunder in respect of the
        activities carried out on the Claim by Laronde, or related to the sale of
        mineral products derived from the Claim, shall be published by Laronde without
        the prior written consent of Mobridge, but such consent in respect of the
        reporting of factual data shall not be unreasonably withheld. Laronde, shall
        be
        entitled to copies of all exploration work and development data that Mobridge
        may acquire in conducting work on the Claim, in written and electronic format,
        to be provided as the data is generated


      
        
           

        

        
          6

          
            

          

        

        
           

        

      


      


      
        	17.	
                ENTIRE
                  AGREEMENT

              


      

      


      This
        Agreement constitutes the entire agreement to date between the parties hereto
        and supersedes every previous agreement, communication, expectation,
        negotiation, representation or understanding, whether oral or written, express
        or implied, statutory or otherwise, between the parties hereto with respect
        to
        the subject matter of this Agreement.

      


      
        	18.	
                NOTICE

              


      

      


      18.1
              Any
        notice required to be given under this Agreement shall be deemed to be well
        and
        sufficiently given if delivered, or if mailed by registered mail, in the
        case of
        Laronde addressed to him as follows:

      


      David
        Laronde

      P.O.
        Box
        482

      Temagami,
        Ontario

      P0H
        2H0

      


      and
        in
        the case of Mobridge addressed as follows:

      


      MOBRIDGE
        EXPLORATIONS, INC.

      13
        Bastedo Crescent, P.O. Box 1526,

      Marathon,
        Ontario

      P0T
        2E0

      


      Attention:
        Gurmunder Manhass, President

      


      and
        any
        notice given as aforesaid shall be deemed to have been given, if delivered,
        when
        delivered, or if mailed by registered mail, on the fourth business day after
        the
        date of mailing thereof.

      


      18.2
              Either
        party hereto may from time to time by notice in writing change its address
        for
        the purpose of this section.

      


      
        	19.	
                OPTION
                  ONLY

              


      

      


      Until
        the
        Option is exercised, this is an option only and except as specifically provided
        otherwise, nothing herein contained shall be construed as obligating Mobridge
        to
        do any acts or make any payments hereunder and any acts or payments made
        hereunder shall not be construed as obligating Mobridge to do any further
        acts
        or make any further payments.

      


      
        	20.	
                RELATIONSHIP
                  OF PARTIES

              


      

      


      Nothing
        contained in this Agreement shall, except to the extent specifically authorized
        hereunder, be deemed to constitute either party hereto a partner, agent or
        legal
        representative of the other party.


      
        
           

        

        
          7

          
            

          

        

        
           

        

      


      


      
        	21.	
                TIME
                  OF ESSENCE

              


      

      


      Time
        shall be of the essence of this Agreement.

      


      
        	22.	
                TITLES

              


      

      


      The
        titles to the respective sections hereof shall not be deemed a part of this
        Agreement but shall be regarded as having been used for convenience
        only.

      


      
        	23.	
                CURRENCY

              


      

      


      All
        funds
        referred to under the terms of this Agreement shall be funds designated in
        the
        lawful currency of the United Stares of America.

      


      
        	24.	
                SEVERABILITY

              


      

      


      In
        the
        event that any of the paragraphs contained in this Agreement, or any portion
        of
        thereof, is unenforceable or is declared invalid for any reason whatsoever,
        such
        unenforceability or invalidity shall not affect the enforceability or validity
        of the remaining terms or portions thereof contained in this Agreement and
        such
        unenforceable or invalid paragraph, or portion thereof, shall be severable
        from
        the remainder of the Agreement.

      


      
        	25.	
                APPLICABLE
                  LAW

              


      

      


      The
        situs
        of the Agreement is Marathon, Ontario, and for all purposes this Agreement
        will
        be governed exclusively by and construed and enforced in accordance with
        the
        laws prevailing in the Province of Ontario. 

      


      
        	26.	
                ENUREMENT

              


      

      


      This
        Agreement shall enure to the benefit of and be binding upon the parties hereto
        and their respective successors and assigns.

      


      


       

      


      



      
        
           

        

        
          8

          
            

          

        

        
           

        

      


      


      IN
        WITNESS WHEREOF
        this
        Agreement has been executed as of the day and year first above
        written.

      


      
        	 	
                MOBRIDGE
                  EXPLORATIONS, INC.

              
	 	 
	 	
                per:

              
	 	 
	
                ________________________________________

              	
                
                  ________________________________________

                

              
	
                David
                  Laronde

              	
                Director

              


      

      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      



      
        
           

        

        
          9

          
            

          

        

        
           

        

      


      SCHEDULE
        "A"

      


      TO
        THAT CERTAIN AGREEMENT MADE AS OF JULY 6, 2005 BETWEEN 

      DAVID
        LARONDE AND MOBRIDGE EXPLORATIONS, INC.

      


      


      The
        Chamber Township claim block consists of a total of 15 claim units located
        in
        the Sudbury Mining Division, Canada with the following record number and
        area:

      


      
        	
                Township

              	
                Recording
                  Date

              	
                Record
                  No.

              	
                Acreage

              
	 	 	 	 
	
                Chambers

              	
                December
                  19, 2003

              	
                3016019

              	
                600

              


      

      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      


      



      
        
           

        

        
          10

          
            

          

        

        
           

        

      


      


      SCHEDULE
        “B”

      


      TO
        THAT CERTAIN AGREEMENT MADE AS OF JULY 6, 2005 BETWEEN

      DAVID
        LARONDE AND MOBRIDGE EXPLORATIONS, INC.

      


      DEFINITION
        OF GROSS OVERRIDING ROYALTY (“GORR”)

      


      (All
        capitalized terms used herein shall have the definitions contained in the
        Agreement, unless otherwise specified.)

      


      Pursuant
        to the Agreement to which this Appendix is attached, Laronde is entitled
        to a
        royalty (the “GORR”) equal to 2% of the Average Appraised Value (as hereinafter
        defined) of all gem and industrial diamonds recovered, sorted and graded
        from
        the Claims (the “Diamonds”), free and clear of all costs of development and
        operations.

      


      “Average
        Appraised Value”
        means
        the average of the valuations in Canadian dollars of the Diamonds determined
        by
        two independent graders, one appointed by Mobridge and one appointed by Laronde.
        Such independent graders shall be duly qualified and accredited, and shall
        sort,
        grade and value the Diamonds in accordance with industry standards, having
        regard to, but without limiting the generality of the foregoing, the commercial
        demand for the Diamonds. Each independent valuator shall value each particular
        classification of the Diamonds in accordance with the industry pricebooks,
        standards and formulas. The parties acknowledge that the intention is that
        the
        GORR is to be paid to Laronde on this basis, regardless of the price or proceeds
        actually received by Mobridge for or in connection with the Diamonds or the
        manner in which a sale of the Diamonds to a third party is made, and without
        deduction.

      


      Mobridge
        will calculate and pay the GORR to Laronde within 30 days of the end of each
        calendar quarter, based on all Diamonds from the Property which were graded
        in
        such calendar quarter.

      


      Laronde
        shall not be entitled to participate in the profits or be obligated to share
        in
        any losses generated by the Purchaser’s actual marketing or sales
        practices.

      


      Laronde
        shall also at his election have the right to take their GORR in
        kind.

      


      


      


      


      
 

      



      
        
           

        

        
          11

          
            

          

        

        
           

        

      


      


      SCHEDULE
        “C”

      


      TO
        THAT CERTAIN AGREEMENT MADE AS OF JULY 6, 2005 BETWEEN

      DAVID
        LARONDE AND MOBRIDGE EXPLORATIONS, INC.

      


      NET
        SMELTER RETURNS

      


      1.       In
        the
        Agreement, “Net
        Smelter Returns”
means
        the net amount of money received by Mobridge for its own account from the
        sale
        of ore, or ore concentrates or any other products from the Claim to a smelter
        or
        other ore buyer after deduction of smelter and /or refining charges, ore
        treatment charges, penalties and any and all charges made by the purchaser
        of
        ore or concentrates, less any and all transportation costs which may be incurred
        in connection with the transportation of ore or concentrates.

      


      2.       Payment
        of Net Smelter Returns by Mobridge to Laronde shall be made quarterly within
        45
        days after the end of each fiscal quarter of Mobridge and shall be accompanied
        by unaudited financial statements pertaining to the operations carried out
        by
        Mobridge on the Claim. Within 120 days after the end of each fiscal year
        of
        Mobridge in which Net Smelter Returns are payable to Laronde, the records
        relating to the calculation of Net Smelter Returns for such year shall be
        audited and any resulting adjustments in the payment of Net Smelter Returns
        payable to Laronde shall be made forthwith. A copy of the said audit shall
        be
        delivered to Laronde within 30 days of the end of such 120-day
        period.

      


      3.       Each
        annual audit shall be final and not subject to adjustment unless Laronde
        delivers to Mobridge written exceptions in reasonable detail within one month
        after Laronde receives the report. Laronde, or his representative duly
        authorized in writing, at his expense, shall have the right to audit the
        books
        and records of Mobridge related to Net Smelter Returns to determine the accuracy
        of the report, but shall not have access to any other books and records of
        Mobridge. The audit shall be conducted by a chartered or certified public
        accountant of recognized standing. Mobridge shall have the right to condition
        access to its books and records on execution of a written agreement by the
        auditor that all information will be held in confidence and used solely for
        purposes of audit and resolution of any disputes related to the report. A
        copy
        of Laronde’s report shall be delivered to Mobridge and the amount which should
        have been paid according to Laronde’s report shall be paid forthwith. In the
        event that the said discrepancy is to the detriment of Laronde and exceeds
        5% of
        the amount actually paid by Mobridge, then Mobridge shall pay the entire
        cost of
        the audit.

      


      4.       In
        the
        event smelting or refining are carried out in facilities owned or controlled,
        in
        whole or in part, by Mobridge, charges, costs and penalties with respect
        to such
        operations, excluding transportation, shall mean reasonable charges, costs
        and
        penalties for such operations but not in excess of the amounts that Mobridge
        would have incurred if such operations were carried out at facilities not
        owned
        or controlled by Mobridge then offering comparable custom services.

      


      5.       Laronde
        shall at his election have the right to take their Net Smelter Return as
        it may
        pertain to precious metals defined as gold and platinum group elements in
        kind.

       

       

       

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