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|   | (a) | the      La Mofralla property (“Mofralla”) located in Atacama Region III Chile, and      comprising approximately 250hectares; |
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|   | (b) | the      El Corral (“Corral”) property located in Atacama Region III Chile, and      comprising approximately 4000  hectares;  and |
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|   | (c) | the      Venado (“Venado”) property located in Atacama Region III Chile, and      comprising approximately 3600hectares; |
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|   |  (a) | “Agreement” means this      Mineral Property Acquisition Agreement as entered into between the Parties      hereto, together with any amendments thereto and any Schedules as attached      thereto; |
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|   | (b) | “Closing” has the      meaning ascribed to it in section “6.1” hereinbelow and includes, without      limitation, the closing of each of the transactions contemplated hereby      which shall occur after the conditions precedent set out in Article “5”      hereinbelow have been satisfied in their  entirety; |
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|   | (c) | “Closing Date” has the      meaning ascribed to it in section “6.1”  hereinbelow; |
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|   | (d) | “Confidential      Information” has the meaning ascribed to it in section “12.1”      hereinbelow; |
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|   | (e) | “Defaulting Party” and      “Non-Defaulting      Party” have the meanings ascribed to them in section “15.1”      hereinbelow; |
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|   | (f) | “Effective Date” has the      meaning ascribed to in on the front page of this  Agreement; |
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|   | (g) | “Indemnified Parties”      and “Indemnified      Party” have the meanings ascribed to them in section “16.1”      hereinbelow; |
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|   | (h) | “mortgage” has the      meaning ascribed to it in section “8.1”  hereinbelow; |
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|   | (i) | “Party” or “Parties” means Gareste      and/or the Purchaser hereto, together with their respective successors and      permitted assigns as the context sorequires; |
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|   | (j) | “person” or “persons” means an      individual, corporation, partnership, party, trust, fund, association and      any other organized group of persons and the personal or other legal      representative of a person to whom the context can apply according to      law; |
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|   | (k) | “Property” has the      meaning ascribed to it in recital “A.” hereinabove; and      which mineral property interests comprising the Property are particularly      described in Schedule “A” which is attached hereto together with any other      claim or interests of the Parties hereto which are incorporated into the      Property by the terms of thisAgreement; |
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|   | (l) | “Property Documentation”      means any and all technical records and other factual engineering data and      information relating to the mineral property interests comprising the      Property and including, without limitation, all plans, maps, agreements      and records which are in the possession or control of any Party      hereto; |
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|   | (m) | “Property Rights” means      all mineral licenses and all prioritized and protocoled applications for      exploration licenses, permits, easements, rights-of-way, certificates,      exclusive prospecting orders and other approvals obtained by either of the      Parties either before or after the Effective Date of this Agreement and      necessary for the exploration and development of any of the mineral      property interests comprising theProperty; |
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|   | (n) | “Purchaser” means      Pacific Copper Chile Limitada, a limited liability company organized      pursuant to the laws of Chile, or any successor company, however formed,      whether as a result of merger, amalgamation or other    action; |
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|   | (o) | “Regulatory Approval”      means the acceptance for filing of the transactions contemplated by this      Agreement by the RegulatoryAuthorities; |
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|   | (p) | “Regulatory Authorities”      means such regulatory bodies and agencies who have jurisdiction over the      affairs of any of the Parties hereto and including, without limitation,      all Regulatory Authorities from whom any such authorization, approval or      other action is required to be obtained or to be made in connection with      the transactions contemplated by thisAgreement; |
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|   | (q) | “Securities Act” means      the United States Securities Act of 1933,      as amended, together with any Rules and Regulations promulgated      thereunder; |
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|   | (r) | “Subsidiary” means any      company or companies of which more than 50% of the outstanding shares      carrying votes at all times (provided that the ownership of such shares      confers the right at all times to elect at least a majority of the board      of directors of such company or companies) are for the time being owned by      or held for a company and/or any other company in like relation to the      company, and includes any company in like relation to the      subsidiary; |
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|   | (s) | “Vendor” means Gareste      Limitada, a Chilean limitedpartnership. |
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| Schedule                      |   | Description |
|-------------------------------|--------|-------------|
|                          |   |        |
| Schedule      “A” |   | Property    |

|   | (a) | the      words “herein”,      “hereof” and      “hereunder” and      other words of similar import refer to this Agreement as a whole and not      to any particular Article, section or other subdivision of this      Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      headings are for convenience only and do not form a part of this Agreement      nor are they intended to interpret, define or limit the scope or extent of      this or any provision of thisAgreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      reference to an entity shall include and shall be deemed to be a reference      to any entity that is a permitted successor to such entity;      and |
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|   | (d) | words      in the singular include the plural and words in the masculine gender      include the feminine and neuter genders, and vice    versa. |
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|   | (a) | the      Shares are restricted securities within the meaning of “Rule 144” promulgated      under the Securities Act; |
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|   | (b) | the      exemption from registration under Rule 144 will not be available in any      event for at least six months from the date of transfer of Shares to      Gareste, and even then will not be available unless (i) a public trading      market then exists for the common stock of the Purchaser, (ii) adequate      information concerning the Purchaser is then available to the public and      (iii) other terms and conditions of Rule 144 are complied with;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      sale of the Shares may be made by Gareste only in limited amounts in      accordance with such terms andconditions. |
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|   | (a) | Gareste      is a limited liability company duly organized under the laws of the      country of Chile, is validly existing and is in good standing with respect      to all statutory filings required by Chilean law, is qualified to do      business in those jurisdictions where it is necessary to fulfill each of      the Vendor’s obligations under this Agreement, and Gareste has the full      power and authority to enter into this Agreement and any agreement or      instrument referred to or contemplated by this  Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Gareste      has the requisite power, authority and capacity to fulfill the Vendor’s      obligations under this Agreement; |
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|   | (c) | the      execution and delivery of this Agreement and the agreements contemplated      hereby have been duly authorized by all necessary action on the Vendor’s      part; |
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|   | (d) | this      Agreement constitutes a legal, valid and binding obligation of Gareste      enforceable against Gareste in accordance with its terms, except as      enforcement may be limited by laws of general application affecting the      rights of creditors; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | prior      to Closing Gareste will have obtained all authorizations, approvals,      including Regulatory Approval, or waivers that may be necessary or      desirable in connection with the transactions contemplated in this      Agreement, and other actions by, and have made all filings with, any and      all Regulatory Authorities from whom any such authorization, approval or      other action is required to be obtained or to be made in connection with      the transactions contemplated herein, and all such authorizations,      approvals and other actions will be in full force and effect, and all such      filings will have been accepted by each of Gareste who will be in      compliance with, and have not committed any breach of, any securities      laws, regulations or policies of any Regulatory Authority to which Gareste      or any of the mineral property interests comprising the Property may be      subject; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (f) | except      for Regulatory Approval of this Agreement by the appropriate Regulatory      Authorities, there are no other consents, approvals or conditions      precedent to the performance of this Agreement which have not been      obtained; |
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|   | (g) | Gareste      is not in breach of any laws, ordinances, statutes, regulations, by-laws,      orders or decrees to which Gareste is subject or which apply to      Gareste; |
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|   | (h) | no      proceedings are pending for, and Gareste is unaware of, any basis for the      institution of any proceedings leading to the placing of Gareste in      bankruptcy or subject to any other laws governing the affairs of insolvent      persons; |
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|   | (i) | Gareste      has not received, nor has Gareste requested or does Gareste require to      receive, any offering memorandum or similar document describing the      business and affairs of the Purchaser in order to assist Gareste in      entering into this Agreement and in consummating the transactions      contemplated herein; |
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|   | (j) | except      as otherwise provided for herein, Gareste has not retained, employed or      introduced any broker, finder or other person who would be entitled to a      brokerage commission or finder’s fee arising out of the transactions      contemplated hereby; |
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|   | (k) | Gareste      is not, nor until or at the Closing Date will Gareste be, in breach of any      provision or condition of, nor has Gareste done or omitted to do anything      that, with or without the giving of notice or lapse or both, would      constitute a breach of any provision or condition of, or give rise to any      right to terminate or cancel or accelerate the maturity of any payment      under, any deed of trust, contract, certificate, consent, permit, license      or other instrument to which Gareste is a party, by which Gareste is bound      or from which Gareste derives benefit, any judgment, decree, order, rule      or regulation of any court or governmental authority to which Gareste is      subject, or any statute or regulation applicable to Gareste, to an extent      that, in the aggregate, has a material adverse effect on Gareste or on any      of the mineral property interests comprising the  Property; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Vendor      will give to the Purchaser, within at least five calendar days prior to      the Closing Date, by written notice, particulars  of: |
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|   | (i) | each      occurrence within the Vendor’ knowledge after the Effective Date of this      Agreement that, if it had occurred before the Effective Date, would have      been contrary to any of the Vendor’s representations or warranties      contained herein; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | each      occurrence or omission within the Vendor’s knowledge after the Effective      Date that constitutes a breach of any of the Vendor’s covenants contained      in this Agreement; |
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|   | (m) | the      making of this Agreement and the completion of the transactions      contemplated hereby and the performance of and compliance with the terms      hereof does not and will not: |
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|   | (i) | conflict      with or result in a breach of or violate any of the terms, conditions or      provisions of any law, judgment, order, injunction, decree, regulation or      ruling of any court or governmental authority, domestic or foreign, to      which Gareste is subject, or constitute or result in a default under any      agreement, contract or commitment to which Gareste is a    party; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | give      to any party the right of termination, cancellation or acceleration in or      with respect to any agreement, contract or commitment to which Gareste is      a party; |
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|   | (iii) | give      to any government or governmental authority, or any municipality or any      subdivision thereof, including any governmental department, commission,      bureau, board or administration agency, any right of termination,      cancellation or suspension of, or constitute a breach of or result in a      default under, any permit, license, control or authority issued to Gareste      which is necessary or desirable in connection with the conduct and      operations of Vendor’s business and the ownership or leasing of each      Vendor’s business assets; or |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | constitute      a default by Gareste, or any event which, with the giving of notice or      lapse of time or both, might constitute an event of default, under any      agreement, contract, indenture or other instrument relating to any      indebtedness of Gareste which would give any party to that agreement,      contract, indenture or other instrument the right to accelerate the      maturity for the payment of any amount payable under that agreement,      contract, indenture or otherinstrument; |
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|   | (n) | neither      this Agreement nor any other document, certificate or statement furnished      to the Purchaser by or on behalf of Gareste in connection with the      transactions contemplated hereby knowingly or negligently contains any      untrue or incomplete statement of material fact or omits to state a      material fact necessary in order to make the statements therein not      misleading which would likely affect the decision of the Purchaser to      enter into this Agreement; and |
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|   | (o) | Gareste      is not aware of any fact or circumstance which has not been disclosed to      the Purchaser which should be disclosed in order to prevent the      representations, warranties and covenants contained in this section from      being misleading or which would likely affect the decision of the      Purchaser to enter into thisAgreement. |
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|   | (a) | Gareste      is the legal and beneficial owner of and holds good and marketable title      to, and complete and exclusive possession of all of the mineral property      interests comprising the Property; the particulars of which mineral      property interests comprising the Property being more particularly      described in Schedule “A” which is attached  hereto; |
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|   | (b) | Gareste      is authorized to hold the right to explore and develop and operate, and      rights of ingress to and egress from each of the mineral property      interests comprising the Property and all Property Rights held by Gareste      in and to the mineral property interests comprising the      Property; |
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|   | (c) | Gareste      holds all of the mineral property interests comprising the Property free      and clear of all mortgages, liens, charges, encumbrances and claims of      others; |
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|   | (d) | no      other person, firm or corporation has any written or oral agreement,      option, understanding or commitment, or any right or privilege capable of      becoming an agreement, for the purchase from Gareste of any interest in      and to any of the mineral property interests comprising the      Property; |
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|   | (e) | the      mineral property interests comprising the Property have been duly and      validly located and recorded in a good and minerlike manner pursuant to      applicable mining laws; |
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|   | (f) | all      permits and licenses covering the mineral property interests comprising      the Property have been duly and validly issued pursuant to applicable      mining laws and are in good standing by the proper doing and filing of      assessment work and the payment of all fees, taxes and rentals in      accordance with the requirements of applicable mining laws and the      performance of all other actions necessary in that  regard; |
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|   | (g) | where      appropriate, Gareste has insured the mineral property interests comprising      the Property against loss or damage on a replacement cost      basis; |
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|   | (h) | all      conditions on and relating to the mineral property interests comprising      the Property and the operations conducted thereon by or on behalf of      Gareste are in compliance with all applicable laws, regulations or orders      and including, without limitation, all laws relating to environmental      matters, waste disposal and storage and  reclamation; |
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|   | (i) | there      are no outstanding orders or directions relating to environmental matters      requiring any work, repairs, construction or capital expenditures with      respect to any of the mineral property interests comprising the Property      and the conduct of the operations related thereto, nor has Gareste      received any notice of same; |
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|   | (j) | there      is no adverse claim or challenge against or to the ownership of or title      to any of the mineral property interests comprising the Property or which      may impede the development of any of the mineral interests comprising the      Property, nor, to the best of the knowledge, information and belief of      Gareste, after having made due inquiry, is there any basis for any      potential claim or challenge, and no person has any royalty, net profits      or other interests whatsoever in any production from any of the mineral      property interests comprising theProperty; |
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|   | (k) | there      are no actions, suits, proceedings or investigations (whether or not      purportedly against or on behalf of Gareste), pending or threatened, which      may affect, without limitation, the rights of Gareste to transfer any      interest in and to the mineral property interests comprising the Property      to the Purchaser at law or in equity, or before or by any federal, state,      provincial, municipal or other governmental department, commission, board,      bureau, agency or instrumentality, domestic or foreign, and, without      limitation, there are no claims or potential claims under any relevant      family relations legislation or other equivalent legislation affecting any      of the mineral property interests comprising the Property.  In      addition, Gareste is not now aware of any existing ground on which any      such action, suit or proceeding might be commenced with any reasonable      likelihood of success; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Gareste      will deliver in the normal course to the Purchaser all Property      Documentation in Gareste’ possession or control relating to the mineral      property interests comprising the Property together with copies of all      permits, permit applications and applications for exploration and      exploitation rights respecting any of the mineral property interests      comprising the Property; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Gareste      is not aware of any fact or circumstance which has not been disclosed to      the Purchaser which should be disclosed in order to prevent the      representations and warranties contained in this section from being      misleading or which would likely affect the decision of the Purchaser to      enter into this Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | the      Purchaser is a limited liability company duly organized under the laws of      the country of Chile, is validly existing and is in good standing with      respect to all statutory filings required by Chilean  law; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Purchaser is qualified to do business in those jurisdictions where it is      necessary to fulfill the Purchaser’s obligations under this Agreement, and      the Purchaser has the full power and authority to enter into this      Agreement and any agreement or instrument referred to or contemplated by      this Agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      execution and delivery of this Agreement and the agreements contemplated      hereby have been duly authorized by all necessary corporate action on the      Purchaser’s part; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | prior      to the Closing Date the Purchaser will have obtained all authorizations,      approvals, including Regulatory Approval, or waivers that may be necessary      or desirable in connection with the transactions contemplated in this      Agreement, and other actions by, and have made all filings with, any and      all Regulatory Authorities from whom any such authorization, approval or      other action is required to be obtained or to be made in connection with      the transactions contemplated herein, and all such authorizations,      approvals and other actions will be in full force and effect, and all such      filings will have been accepted by the Purchaser who will be in compliance      with, and have not committed any breach of, any securities laws,      regulations or policies of any Regulatory Authority to which the Purchaser      may be subject; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | except      for Regulatory Approval of this Agreement by the appropriate Regulatory      Authorities, there are no other consents, approvals or conditions      precedent to the performance of this Agreement which have not been      obtained; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | this      Agreement constitutes a legal, valid and binding obligation of the      Purchaser enforceable against the Purchaser in accordance with its terms,      except as enforcement may be limited by laws of general application      affecting the rights of creditors; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | no      proceedings are pending for, and the Purchaser is unaware of, any basis      for the institution of any proceedings leading to the dissolution or      winding up of the Purchaser or the placing of the Purchaser in bankruptcy      or subject to any other laws governing the affairs of insolvent      companies; |
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|   | (h) | there      is no basis for and there are no actions, suits, judgments, investigations      or proceedings outstanding or pending or, to the best of the knowledge,      information and belief of the Purchaser, after making due inquiry,      threatened against or affecting the Purchaser at law or in equity or      before or by any federal, state, municipal or other governmental      department, commission, board, bureau oragency; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Purchaser is not in breach of any laws, ordinances, statutes, regulations,      by-laws, orders or decrees to which the Purchaser is subject or which      apply to the Purchaser; |
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|   | (j) | the      Purchaser will save Gareste harmless in respect of all claims, liabilities      and expenses arising out of the Purchaser’s activities on any of the      mineral property interests comprising the  Property; |
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|   | (k) | the      Purchaser will do all work on the Property in a good and minerlike fashion      and in accordance with all applicable laws, regulations, orders and      ordinances of any governmentalauthority; |
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|   | (l) | the      Purchaser is not in breach of any provision or condition of, nor has the      Purchaser done or omitted anything that, with or without the giving of      notice or lapse or both, would constitute a breach of any provision or      condition of, or give rise to any right to terminate or cancel or      accelerate the maturity of any payment under, any deed of trust, contract,      certificate, consent, permit, license or other instrument to which the      Purchaser is a party, by which the Purchaser is bound or from which the      Purchaser derives benefit, any judgment, decree, order, rule or regulation      of any court or governmental authority to which the Purchaser is subject,      or any statute or regulation applicable to the Purchaser, to an extent      that, in the aggregate, has a material adverse affect on the Purchaser’s      ability to perform this Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | the      Purchaser will give to Gareste, within at least five calendar days prior      to the Closing Date (as hereinafter defined), by written notice,      particulars of: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | each      occurrence within the Purchaser’s knowledge after the Effective Date of      this Agreement that, if it had occurred before the Effective Date, would      have been contrary to any of the Purchaser’s representations or warranties      contained herein; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | each      occurrence or omission within the Purchaser’s knowledge after the      Effective Date that constitutes a breach of any of the Purchaser’s      covenants contained in thisAgreement; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (n) | the      making of this Agreement and the completion of the transactions      contemplated hereby and the performance of and compliance with the terms      hereof does not and will not: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | conflict      with or result in a breach of or violate any of the terms, conditions or      provisions of the incorporation documents of the  Purchaser; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | conflict      with or result in a breach of or violate any of the terms, conditions or      provisions of any law, judgment, order, injunction, decree, regulation or      ruling of any court or governmental authority, domestic or foreign, to      which the Purchaser is subject, or constitute or result in a default under      any agreement, contract or commitment to which the Purchaser is a      party; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | give      to any party the right of termination, cancellation or acceleration in or      with respect to any agreement, contract or commitment to which the      Purchaser is a party; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | give      to any government or governmental authority, or any municipality or any      subdivision thereof, including any governmental department, commission,      bureau, board or administration agency, any right of termination,      cancellation or suspension of, or constitute a breach of or result in a      default under, any permit, license, control or authority issued to the      Purchaser which is necessary or desirable in connection with the conduct      and operations of the Purchaser’s business and the ownership or leasing of      the Purchaser’s business assets; or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | constitute      a default by the Purchaser or any event which, with the giving of notice      or lapse of time or both, might constitute an event of default, under any      agreement, contract, indenture or other instrument relating to any      indebtedness of the Purchaser which would give any party to that      agreement, contract, indenture or other instrument the right to accelerate      the maturity for the payment of any amount payable under that agreement,      contract, indenture or otherinstrument; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | neither      this Agreement nor any other document, certificate or statement furnished      to Gareste by or on behalf of the Purchaser in connection with the      transactions contemplated hereby knowingly or negligently contains any      untrue or incomplete statement of material fact or omits to state a      material fact necessary in order to make the statements therein not      misleading; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | the      Purchaser is not aware of any fact or circumstance which has not been      disclosed to Gareste which should be disclosed in order to prevent the      representations, warranties and covenants contained in this section from      being misleading or which would likely affect the decision of Gareste to      enter into this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | receipt      of all necessary approvals, including Regulatory Approval, from all      Regulatory Authorities having jurisdiction over the Parties hereto and the      transactions contemplated by this Agreement, to the terms and conditions      of and the transactions contemplated by this Agreement;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      required, the management or shareholders of the Purchaser passing an      ordinary resolution or, where required, a special resolution, approving      the terms and conditions of this Agreement and all of the transactions      contemplated hereby or, in the alternative, shareholders of the Purchaser      holding 100% of the issued shares of the Purchaser providing written      consent resolutions evidencing their approval to the terms and conditions      of this Agreement and all of the transactions contemplated      hereby. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      representations, warranties and covenants of the Purchaser contained      herein shall be true and correct; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Purchaser shall have complied with all warranties, representations,      covenants and agreements herein agreed to be performed or caused to be      performed by the Purchaser; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | the      Purchaser will have obtained all authorizations, approvals, including      Regulatory Approval, or waivers that may be necessary or desirable in      connection with the transactions contemplated in this Agreement, and other      actions by, and have made all filings with, any and all Regulatory      Authorities from whom any such authorization, approval or other action is      required to be obtained or to be made in connection with the transactions      contemplated herein, and all such authorizations, approvals and other      actions will be in full force and effect, and all such filings will have      been accepted by the Purchaser who will be in compliance with, and have      not committed any breach of, any securities laws, regulations or policies      of any Regulatory Authority to which the Purchaser may be      subject; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | all      matters which, in the opinion of counsel for Gareste, are material in      connection with the transactions contemplated by this Agreement shall be      subject to the favorable opinion of such counsel, and all relevant records      and information shall be supplied to such counsel for that      purpose; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | no      material loss or destruction of or damage to the Purchaser shall have      occurred since the Effective Date; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (f) | no      action or proceeding at law or in equity shall be pending or threatened by      any person, company, firm, governmental authority, regulatory body or      agency to enjoin or prohibit: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      purchase or transfer of any interest in and to the mineral property      interests comprising the Property as contemplated by this Agreement or the      right of Gareste to dispose of any interest in and to any of the mineral      property interests comprising the Property;or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      right of the Purchaser to conduct the Purchaser’s operations and carry on,      in the normal course, the Purchaser’s business and operations as the      Purchaser has carried on in thepast; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      delivery to Gareste (if requested) by the Purchaser, on a confidential      basis, of the following documentation and  information: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a      copy of all material contracts, agreements, reports and title information      of any nature respecting the Purchaser and each of its affiliates, if any;      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | details      of any lawsuits, claims or potential claims relating to the Purchaser or      to any of the Purchaser’s affiliates of which the Purchaser is aware and      Gareste is unaware; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the      Purchaser will, for a period of not less than five calendar days during      the period commencing on the Effective Date and continuing until not later      than 10 calendar days prior to Closing, during normal business      hours: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | make      available for inspection by the solicitors, auditors and representatives      of Gareste, at such location as is appropriate, all of the Purchaser’s and      each of the Purchaser’s affiliates, if any, books, records, contracts,      documents, correspondence and other written materials, and afford such      persons every reasonable opportunity to make copies thereof and take      extracts therefrom at the sole cost of Gareste; provided such persons do      not unduly interfere in the operations of the Purchaser or any of the      Purchaser’s subsidiaries, if any; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (ii) | authorize      and permit such persons at the risk and the sole cost of Gareste, and only      if such persons do not unduly interfere in the operations of the Purchaser      and each of the Purchaser’s subsidiaries, if any, to attend at all of      their places of business and operations to observe the conduct of their      businesses and operations, inspect their properties and assets and make      physical counts of their inventories, shipments and deliveries;      and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | require      the Purchaser’s and each of the Purchaser’s affiliates, if any, management      personnel to respond to all reasonable inquiries concerning the      Purchaser’s and each of the Purchaser’s affiliates, if any, business      assets or the conduct of their businesses relating to their liabilities      and obligations; and |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      completion by Gareste and by Gareste’ professional advisors of a thorough      due diligence and operations review of the businesses and operations of      the Purchaser and each of the Purchaser’s affiliates, if any, to the sole      and absolute satisfaction ofGareste. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      representations, warranties and covenants of Gareste contained herein      shall be true and correct; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (b) | Gareste      shall have complied with all warranties, representations, covenants and      agreements herein agreed to be performed or caused to be performed by      Gareste; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Gareste      will have obtained all authorizations, approvals, including Regulatory      Approval, or waivers that may be necessary or desirable in connection with      the transactions contemplated in this Agreement, and other actions by, and      have made all filings with, any and all Regulatory Authorities from whom      any such authorization, approval or other action is required to be      obtained or to be made in connection with the transactions contemplated      herein, and all such authorizations, approvals and other actions will be      in full force and effect, and all such filings will have been accepted by      Gareste who will be in compliance with, and have not committed any breach      of, any securities laws, regulations or policies of any Regulatory      Authority to which Gareste may besubject; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | all      matters which, in the opinion of counsel for the Purchaser, are material      in connection with the transactions contemplated by this Agreement shall      be subject to the favorable opinion of such counsel, and all relevant      records and information shall be supplied to such counsel for that      purpose; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | no      material loss or destruction of or damage to any of the mineral property      interests comprising the Property shall have occurred since the Effective      Date; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | no      action or proceeding at law or in equity shall be pending or threatened by      any person, company, firm, governmental authority, regulatory body or      agency to enjoin or prohibit: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (i) | the      sale or transfer of any interest in and to the mineral property interests      comprising the Property as contemplated by this Agreement or the right of      the Purchaser to acquire any interest in and to any of the mineral      property interests comprising the Property;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      right of the Purchaser to conduct the Purchaser’s operations and carry on,      in the normal course, the Purchaser’s business and operations as the      Purchaser has carried on in thepast; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      delivery to the Purchaser by Gareste (if requested), on a confidential      basis, of all Property Documentation and including, without      limitation,: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a      copy of all material contracts, agreements, reports and title information      of any nature respecting any of the mineral interests comprising the      Property; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | details      of any lawsuits, claims or potential claims relating to any of the mineral      interests comprising the Property of which Gareste are aware and the      Purchaser is unaware; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | certification      by Gareste to the Purchaser in a form satisfactory to the Purchaser,      acting reasonably, dated as at the date of delivery, to the effect      that: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Gareste      is the legal and beneficial owner of all of the mineral property interests      comprising the Property prior to the completion of the transactions      contemplated by this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Vendor holds the right to explore and develop each of the mineral property      interests comprising the Property and all Property Rights held by Gareste      in and to the mineral property interests comprising the      Property; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Gareste      hold all of the mineral property interests comprising the Property free      and clear of all liens, charges and claims of  others; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      mineral property interests comprising the Property have been duly and      validly located and recorded in a good and minerlike manner pursuant to      all applicable laws and are in goodstanding; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | based      on actual knowledge and belief, Gareste know of no adverse claim or      challenge against or to the ownership of or title to any of the mineral      property interests comprising the Property or which may impede their      development, and, based on actual knowledge and belief, such counsel is      not aware of any basis for any potential claim or challenge, and, based on      actual knowledge and belief, such counsel knows of no outstanding      agreements or options to acquire or purchase any portion of any of the      mineral property interests comprising the Property, and no person has any      royalty, net profits or other interest whatsoever in any production from      any of the mineral property interests comprising the    Property; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | based      on actual knowledge and belief, such counsel knows of no claims,      judgments, actions, suits, litigation, proceedings or investigations,      actual, pending or threatened, against any of Gareste which might      materially affect any of the mineral property interests comprising the      Property or which could result in any material liability to either of      Gareste or to any of the mineral property interests comprising the      Property; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (vii) | as      to all other legal matters of a like nature pertaining to Gareste and the      mineral property interests comprising the Property and to the transactions      contemplated hereby as the Purchaser or the Purchaser’s counsel may      reasonably require; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      completion by the Purchaser and by the Purchaser’s professional advisors      of a thorough due diligence and operations review of the mineral property      interests comprising the Property, of the business and operations of      Gareste and of the transferability of the mineral property interests      comprising the Property as contemplated by this Agreement, to the sole and      absolute satisfaction of thePurchaser. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all      documentation as may be necessary and as may be required by the counsel      for the Purchaser, acting reasonably, to ensure that an undivided 100%      legal, beneficial and registrable interest in and to each of the mineral      property interests comprising the Property have been duly transferred,      assigned and are registrable in the name of and for the benefit of the      Purchaser (or, at the sole and absolute discretion of the Purchaser, to      such other entity or subsidiary as may be determined by the Purchaser)      under all applicable laws; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | (b) | all      necessary deeds, conveyances, bills of sale, assurances, transfers,      assignments and consents, including all necessary consents and approvals,      and any other documents necessary or reasonably required to effectively      transfer an undivided 100% legal, beneficial and registrable interest in      and to each of the mineral property interests comprising the Property to      the Purchaser (or, at the sole and absolute discretion of the Purchaser,      to such other entity or subsidiary as may be determined by the Purchaser)      with good and marketable title, free and clear of all mortgages, liens,      charges, pledges, claims, security interests or encumbrances      whatsoever; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all      necessary consents and approvals in writing to the completion of the      transactions contemplated herein and including, without limitation,      Regulatory Approval from all Regulatory Authorities having jurisdiction      over any of Gareste or any of the mineral property interests comprising      the Property; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | confirmation      by Gareste that as at the Closing Date, certification that the      representations, warranties, covenants and agreements of Gareste contained      in this Agreement are true and correct in all respects as of the Closing      Date as if made by Gareste on the Closing Date  including; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Gareste      is the legal and beneficial owner of all of the mineral property interests      comprising the Property prior to the completion of the transactions      contemplated by this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Gareste      holds the right to explore and develop each of the mineral property      interests comprising the Property and all Property Rights held by Gareste      in and to the mineral property interests comprising the      Property; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Gareste      holds all of the mineral property interests comprising the Property free      and clear of all liens, charges and claims of  others; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      mineral property interests comprising the Property have been duly and      validly located and recorded in a good and minerlike manner pursuant to      all applicable laws and are in goodstanding; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | all      necessary steps have been taken by Gareste to permit the transfer of an      undivided 100% legal, beneficial and registrable interest in and to each      of the mineral property interests comprising the Property to the Purchaser      (or, at the sole and absolute discretion of the Purchaser, to such other      entity or subsidiary as may be determined by the Purchaser) with good and      marketable title, free and clear of all mortgages, liens, charges,      pledges, claims, security interests or encumbrances      whatsoever; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | based      on actual knowledge and belief, such counsel knows of no adverse claim or      challenge against or to the ownership of or title to any of the mineral      property interests comprising the Property or which may impede their      development, and, based on actual knowledge and belief, such counsel is      not aware of any basis for any potential claim or challenge, and, based on      actual knowledge and belief, such counsel knows of no outstanding      agreements or options to acquire or purchase any portion of any of the      mineral property interests comprising the Property, and no person has any      royalty, net profits or other interest whatsoever in any production from      any of the mineral property interests comprising the    Property; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (vii) | based      on actual knowledge and belief, such counsel knows of no claims,      judgments, actions, suits, litigation, proceedings or investigations,      actual, pending or threatened, against any of Gareste which might      materially affect any of the mineral property interests comprising the      Property or which could result in any material liability to either of      Gareste or to any of the mineral property interests comprising the      Property; and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | as      to all other legal matters of a like nature pertaining to Gareste and the      mineral property interests comprising the Property and to the transactions      contemplated hereby as the Purchaser or the Purchaser’s counsel may      reasonably require; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any      remaining Property Documentation;and |
|--------|-----|-----------------------------------------------|

|   | (f) | all      such other documents and instruments as the Purchaser and the Purchaser’s      counsel may reasonably require. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      Closing agenda; |
|--------|-----|------------------------|

|   | (b) | if      required, a certified copy of an ordinary resolution or, where required, a      special resolution, of the management or owners of the Purchaser approving      the terms and conditions of this Agreement and all of the transactions      contemplated hereby or, in the alternative, owners of the Purchaser      holding 100% of the issued shares of the Purchaser providing written      consent resolutions evidencing their approval to the terms and conditions      of this Agreement and all of the transactions contemplated      hereby; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      certified copy of the resolutions of the directors of the Purchaser      providing for the approval of the terms and conditions of this Agreement      and all of the transactions contemplatedhereby; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | all      necessary consents and approvals in writing to the completion of the      transactions contemplated herein and including, without limitation,      Regulatory Approval from all Regulatory Authorities having jurisdiction      over the Purchaser; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a      certificate of an officer or manager of the Purchaser, dated as at the      Closing Date, acceptable in form to counsel for Gareste, acting      reasonably, certifying that the representations, warranties, covenants and      agreements of the Purchaser contained in this Agreement are true and      correct in all respects as of the Closing Date as if made by the Purchaser      on the Closing Date; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (f) | all      such other documents and instruments as Gareste and Gareste’ counsel may      reasonably require. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      understands that the issuance of the Shares at Closing is intended to be      exempt from registration under the Securities Act of 1933, as amended (the      “Securities Act”), pursuant to Section 4(2) of the Securities      Act. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      and its owners/partners are “accredited investors” as that term is used in      the Securities Act and regulations promulgated under the Securities      Act. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      has had access to the disclosure filings of Pacific Copper on file with      the Securities and Exchange Commission including the Company’s      registration statement and all annual, quarterly and periodic filings      (collectively, the “Disclosure Filings”), has carefully reviewed the      Disclosure Filings and understands and has relied on the information      contained therein. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      has had a reasonable opportunity to ask questions of and receive answers      from a person or persons acting on behalf of Pacific Copper concerning      Shares, and all such questions have been answered to the full satisfaction      of the undersigned. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Both      partners of Gareste are Directors of Pacific Chile, and a partner of      Gareste is a Director and Officer of Pacific Copper, and both are familiar      with all of the affairs of Pacific Copper and its Disclosure      Filings. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      and its owners/partners have such knowledge and experience in financial,      tax and business matters so as to enable it to utilize the information      made available to it in connection with the issuance of the Shares as      contemplated herein in order to evaluate the merits and risks of an      investment in the Shares and to make an informed investment decision with      respect thereto. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      is acquiring the Shares solely for its own account as principal, for      investment purposes only and not with a view to the resale or distribution      thereof, in whole or in part, except as to its      partners/owners. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | Gareste      will not sell or otherwise transfer the Shares without registration under      the Securities Act or an exemption therefrom, and fully understands and      agrees that it must bear the economic risk of its investment for an      indefinite period of time because, among other reasons, the Shares have      not been registered under the Securities Act or under the securities laws      of certain states and, therefore, cannot be resold, pledged, assigned or      otherwise disposed of unless they are subsequently registered under the      Securities Act and under the applicable securities laws of such states or      unless an exemption from such registration is  available. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      understands that Pacific Copper is under no obligation to register the      Shares on its behalf or to assist it in complying with any exemption from      registration under the SecuritiesAct. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gareste      recognizes that an investment in the Shares involves a number of      significant risks, including those set forth under the caption “RISK      FACTORS” in the Disclosure Filings - particularly those Risk Factors      identified in the Company’s most recent annual report on Form      10-QSB. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|   | (a) | cure      such default, or commence proceedings to cure such default and prosecute      the same to completion without undue delay;or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | give      the Non-Defaulting Party notice that it denies that such default has      occurred and that it is submitting the question to arbitration as herein      provided. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      default is not so cured or the Defaulting Party does not commence or      diligently proceed to cure the default;or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | arbitration      is not so sought; or |
|--------|-----|---------------------------------------|

|   | (c) | the      Defaulting Party is found in arbitration proceedings to be in default, and      fails to cure it within five calendar days after the rendering of the      arbitration award, the Non-Defaulting Party may, by written notice given      to the Defaulting Party at any time while the default continues, terminate      the interest of the Defaulting Party in and to this    Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | either      of the Parties hereto has either not satisfied or waived each of their      respective conditions precedent prior to the Closing Date in accordance      with the provisions of Article “5”hereinabove; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | either      of the Parties hereto has failed to deliver, or caused to be delivered,      any of their respective materials required to be delivered in accordance      with Articles “5” and “6” hereinabove prior to the Closing Date in      accordance with the provisions of Articles “5” and “6”      hereinabove; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Closing Date in respect of the due and complete exercise of the Option by      the Purchaser has not occurred within 90 calendar days from the Effective      Date; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | by      agreement in writing by each of the Parties  hereto; |
|--------|-----|--------------------------------------------------------------|

----

----

|  | (a) | employment      of such counsel has been authorized by the affected  Party; |
|--|-----|-----------------------------------------------------------------------------|

|   | (b) | the      affected Party has not assumed the defense of the action within a      reasonable period of time after receiving notice of the      action; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      named parties to any such action include that the affected Party and the      Indemnified Party shall have been advised by counsel that there may be a      conflict of interest between the affected Party and the Indemnified Party;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | there      are one or more legal defenses available to the Indemnified Party which      are different from or in addition to those available to the affected      Party. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any      legal proceedings shall be brought against either of them by any      governmental commission or regulatory authority or any stock exchange;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an      entity having regulatory authority, either domestic or foreign, shall      investigate either of them; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

----

----

----

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|   | (a) | be      valid unless it is in writing and stated to be a consent or waiver      pursuant to this section; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (b) | be      relied upon as a consent to or waiver of any other breach or default of      the same or any other obligation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (c) | constitute      a general waiver under this Agreement;or |
|--------|-----|----------------------------------------------------------|

|   | (d) | eliminate      or modify the need for a specific consent or waiver pursuant to this      section in any other or subsequentinstance. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Andrew Brodkey        |   |
|---------------------------|--------|
| Authorized      Signatory |

| /s/ Harold Gardner                              |   |
|-------------------------------------------------|--------|
| Harold      Gardner, Associate Managing Partner |
| Authorized      Signatory                       |

----

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|   | (a) | the      Mofralla property located in Atacama Region III, Chile and comprising      approximately 250 hectares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Corral property located in Atacama Region III, Chile, and comprising      approximately 4000 hectares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Venado property located in Atacama Region III, Chile and comprising      approximately 3600 hectares; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

----

----

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| EL      CORRAL Y LA MOFRALLA PROPERTY |
|---------------------------------------|
|                                  |       |   |       |   |       |   |
|  Claims      List                |   |   |   |   |   | Pacific      Copper Chile LTDA |
|                                  |   |   |   |   |   |   |
| NOMBREPROPIEDAD                       |   | PROPIETARIO |   | Hectares |   | ESTADO DE PROPIEDAD |
| CORRAL      CERO                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| CORRAL                                |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 02/10/2008 |
| CORRAL      UNO                       |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      DOS                       |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      TRES                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      CUATRO                    |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      CINCO                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      SEIS                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      SIETE                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 24/07/2008 |
| CORRAL      ONCE                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| CORRAL      DOCE                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| CORRAL      TRECE                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| MOFRALLA                              |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 28/09/2008 |
| Total      hectares                   |   |   |   | 3900 |   |   |
|                                  |   |   |   |   |   |   |
| VENAPAI      PROPERTY                 |
|                                  |   |   |   |   |   |   |
| Claims      List                      |   |   |   |   |   | Pacific      Copper Chile LTDA |
|                                  |   |   |   |   |   |   |
| NOMBREPROPIEDAD                       |   | PROPIETARIO |   | Hectares |   | ESTADO DE PROPIEDAD |
| VENAPAI      CERO                     |   | Gareste      Ltda. |   | 200 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      UNO                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      DOS                      |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      TRES                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      CUATRO                   |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      CINCO                    |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      SEIS                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      SIETE                    |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      OCHO                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      NUEVE                    |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      DIEZ                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      ONCE                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      DOCE                     |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      TRECE                    |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      CATORCE                  |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 10/09/2008 |
| VENAPAI      QUINCE                   |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 23/10/2008 |
| VENAPAI      DIECISEIS                |   | Gareste      Ltda. |   | 300 |   | Se      Solicito sent. Conc. De Exploracion 23/10/2008 |
| Total      hectares                   |   |   |   | 5100 |   |   |

----