**AMENDMENT**

| Re: | Agreement                dated the 21st                day of August, 2006, |
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|  | 1. | Article                2.2.2 of the Agreement shall be amended by deleting 2.2.2 (b) and                (d).                2.2.2                (c) shall become 2.2.2 (b) |
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|  | 2. | Article                2.2.2 (c) shall be added as                follows: |
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|   | (c) | “Complete                work programs on the Property including improvement to existing roads,                new                roads as required, prospecting, drilling and all support cost to                the                drilling program of not less than                $500,000.” |
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|  | 3. | All                other terms shall remain the same, and time shall remain of the                essence. |
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|  | 4. | This                Agreement may be executed in multiple counterparts, each of which                shall be                deemed an original, and all of which together shall constitute one                and the                same instrument. Execution and delivery of this Amendment by exchange                of                facsimile copies bearing facsimile signature of a party shall constitute                a                valid and binding execution and delivery of this Agreement by such                party.                Such facsimile copies shall constitute enforceable original                documents. |
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**SAGE      ASSOCIATES INC.**

|                                       |   |   |   |
|--------------------------------------------|--------|--------|--------|
| Per: /s/David              B. Hackman |   |   |        |
| David                B. Hackman            |   |   |        |

| **SILVER                RESERVE CORP.**                |   |   |   |
|--------------------------------------------------------|--------|--------|--------|
|                                                   |   |   |   |
| Per:                /s/                Stafford Kelley |   |   |        |
| Stafford                Kelley                         |   |   |        |

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