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

| a.   | The      Option begins on the date of this agreement and ends on 5th August 2008      (the “Term”). |
|----------------|-----------------------------------------------------------------------------------------------------------------|

| b.   | As      consideration for granting the Option, Polymet will pay Farellón $9,500      when this agreement is signed and $8,500 per month on the fifth day of the      month for five months ending on 5th July 2008, for a total payment of      $52,000. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | During      the Term, Polymet may conduct any exploration permitted by the Crespo      agreement except extraction forexploitation. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Farellón      will pay any Property costs that are due during the Term and required to      keep the Crespo Agreement in good standing, and Polymet will reimburse      Farellón on request. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | 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 5th August    2008. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | The      Option ends if Polymet fails to make any of the payments required during      the Term or on 5th August 2008 if Polymet fails to notify Farellón that it      intends to exercise the Option and pay the $50,000  due. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.   | Farellón |
|----------------|---------------|

| a.   | may      continue to mine the Property and exploit any minerals extracted during      the Term and will pay Polymet a royalty equal to 5% of the net proceeds      that it receives from Enami or otherprocessor, |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | will      deliver to Polymet monthly statements disclosing the ore delivered for      processing and the net proceeds realized from the sale by the end of the      month in which Farellón receives its payment from Enami,    and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | will      pay the patentes due at the end of March2008. |
|----------------|---------------------------------------------------------|

| 3.   | When      Farellón receives the exercise notice and payment required in paragraph      1.e), Farellón      will irrevocably assign the Crespo Agreement to Polymet and Polymet will      accept the assignment and assume all of Farellón’s rights and obligations      under the Crespo Agreement as though Polymet were the original party to      the Crespo Agreement. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | 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 Freirina 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 Freirina,      the terms of the agreement recorded in Freirina  govern. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5.   | 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 Crespo Agreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------|

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

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

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

| 6.   | Polymet      represents and warrants that it is duly formed under the laws of Chile and      has the authority to make thisagreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Time      is of the essence of this agreement and of any amendment to      it. |
|----------------|--------------------------------------------------------------------------------|

| 8.   | 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. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | 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. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | 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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | 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. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Polymet      may not assign its interest in this agreement without Farellón’s written      consent. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| 13.   | This      agreement is binding on the parties and upon their respective successors      and assigns. |
|-----------------|------------------------------------------------------------------------------------------------------|

| 14.   | This      agreement must be construed in accordance with the laws of Chile on the      same terms as provided in the Purchase  Agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | 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. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | 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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 |   |