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| 1.   | Farellón      grants Polymet the option to buy the Camila Agreement on the following      terms (“Option”): |
|----------------|------------------------------------------------------------------------------------------------------------------------------|

| a.   | The      Option begins on the date of this agreement and ends on 21st November 2008      (the “Term”). |
|----------------|--------------------------------------------------------------------------------------------------------------------|

| b.   | As      consideration for granting the Option, Polymet will pay Farellón $5,000      when this agreement is signed and $50,000 by 23rd May  2008. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Farellón      will pay the patentes due at the end of March 2008 and any other property      costs that are due during the Term to keep the Camila Agreement in good      standing, and Polymet will reimburse Farellón on  request. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Polymet      can exercise the option at any time until the end of the Term by notifying      Farellón in writing that it intends to exercise the Option and paying      Farellón $50,000 by the close of business on 21st November      2008. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | The      Option ends if Polymet fails to make any of the payments required during      the Term or on 21st November 2008 if Polymet fails to notify Farellón that      it intends to exercise the Option. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | All      currency amounts are stated in United States  dollars. |
|----------------|-----------------------------------------------------------------|

| 2.   | When      Farellón receives the exercise notice and payment required in paragraph      1(d), Farellón will irrevocably assign the Camila Agreement to Polymet and      Polymet will accept the assignment and assume all of Farellón’s rights and      obligations under the Camila Agreement as though Polymet were the original      party to the Camila Agreement. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The      parties will use their best efforts to ensure that the terms of this      agreement are legalized in Chile and recorded in the register of the      Conservador de Minas in Vallenar as soon as reasonably      possible.  In the case of any conflict between the provisions of      this agreement and the provisions of the agreement recorded in Vallenar,      the terms of the agreement recorded in Vallenar  govern. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Farellón      represents and warrants to Polymetthat: |
|----------------|------------------------------------------------------------|

| a.   | It      is duly formed under the laws of Chile and has the authority and right to      assign the Camila Agreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------|

| b.   | It      has made all of the payments required and fulfilled all other obligations      under the Camila Agreement to the date of this  agreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | It      has not assigned any interest in the Camila Agreement to any other      party. |
|----------------|----------------------------------------------------------------------------------------|

| d.   | The      Camila Agreement is in good standing and free of any claims or potential      claims from third parties as of the date of this  agreement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Polymet      represents and warrants that it is duly formed under the laws of Chile and      has the authority to make thisagreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Time      is of the essence of this agreement and of any amendment to      it. |
|----------------|--------------------------------------------------------------------------------|

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| 7.   | If      either party must perform under this agreement on a day that is not a      business day in Chile, then the party must perform on the next business      day in Chile. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Any      notice that must be given under this agreement must be in writing and      delivered by hand or overnight courier to the party at the address given      for the party on page 1or transmitted by fax or email to the fax number or      email address that the parties will give each other.  Notice is      deemed to have been received when it is delivered or transmitted if it is      delivered or transmitted during normal business hours in Chile and on the      next business day if it is delivered or transmitted outside of normal      business hours. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | This      agreement is the entire agreement between the parties and its terms may be      waived or amended only in writing.  No waiver of any term      operates to waive any other term. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | This      agreement does not create a partnership or joint venture or any other kind      of business association between the parties and neither party has the      power to bind the other in any way. |
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| 11.   | Polymet      may not assign its interest in this agreement without Farellón’s written      consent. |
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| 12.   | This      agreement is binding on the parties and upon their respective successors      and assigns. |
|-----------------|------------------------------------------------------------------------------------------------------|

| 13.   | This      agreement must be construed in accordance with the laws of Chile on the      same terms as provided in the Purchase  Agreement. |
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| 14.   | No      finding by a court of competent jurisdiction that any provision of this      agreement is invalid, illegal, or otherwise unenforceable operates to      impair or affect the remaining provisions which remain effective and      enforceable. |
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| 15.   | This      agreement may be signed in counterparts and delivered to the parties by      any means; and the counterparts together are deemed to be one original      document. |
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| Minera      Farellón Limitada                         |   |   | Minera Polymet      Limitada                               |   |
|------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                                       |   |   |                                                       |   |
| /s/ Kevin      Robert Mitchell                             |   |   | /s/ Kevin      Robert Mitchell                             |   |
| Kevin Robert Mitchell Signed      on February 1, 2008 |   |   | Kevin Robert Mitchell Signed      on February 1, 2008 |   |