| 1.   | First      Party: Engineer Hazem      Al-Khalidi, the executive president of Arabian Shield Development      Company, the owner of the franchise, issued by virtue of Royal Decree No.      137 dated 5/11/1413 H. |
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| 2.   | Second      Party: Engineer Muhammad      Mane’a Abal Ola, representing Thamarat Najran Company,      a company established pursuant to the Regulations of the Kingdom of      Saudi Arabia, Commercial Registration No. 5950010275 dated 6/1/1426 H.,      whose Head Office is in the City ofNajran. |
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| 1.   | Arabian Shield Development      Company, a company formed pursuant to the Public Companies Laws of      Delaware State, whose address is 10830 North Central Express Y-Dallas-      75231, United States of America, represented for the signing of the      Agreement by Mr. Hatem Al-Khalidi, in his capacity as the Company’s      General Manager, hereinafter referred to as  (First    Party) |
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| 2.   | Thamarat Najarat Company,      a company formed pursuant to the Regulations of the Kingdom of      Saudi Arabia, Commercial Registration No. 5950010275, dated 6/1/1426 H.,      whose main office is in the city of Najran, represented for the signing of      the Agreement by Engineer Ayman bin Abdul Rahman AL-Shibil in his capacity      a s the Company’s representative, hereinafter referred to as (Second Party – The      Developer) |
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| First: | The      above mentioned preamble shall be an integral part of this      Memorandum. |
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| Second: | The      Second Party (the Developer) shall seek to form a Saudi company, with a      proposed name “Al-Masane’a Mining Company”, referred to at any stage of      the Agreement as “The Saudi Company”, and shall have all the powers to      select the shareholders therein, as well as all the powers to make the      material and administrative arrangements for the Saudi      Company. |
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| Third: | The      First Party and the Saudi Company shall form a company with a mixed      capital under the name of “The Mining Major Factories Company”, provided      the Saudi Company shall have all the powers necessary for the executive      management of the mixed Company. |
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| Fourth: | The      Company’s capital shall be US$140,000,000 (a hundred forty      million) |
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| Fifth: | The      shares shall be distributed between the shareholders as follows: 50% for      each shareholder. The Mixed Company’s Board of Directors shall comprise      six persons: three to represent the First Party and three to represent the      Saudi Company. Their powers and the validity of their resolutions shall be      determined in separate contracts of in the Articles of Association of the      Mixed Company. |
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| Sixth: | The      Second Party acknowledges his consent to the assessment of the effort,      expertise and assets of the First Party, as well as the franchise granted      to him which is issued by Royal Decree No. 137 dated 5/11/1413 H., and      estimated at US$35,000,000 (thirty five million), which the Second Party      shall pump into the Company’s capital, and which represents the fair      amount for the obtaining by the Saudi Company of 50% against all the      mining activities, the assets and the tangible and intangible assets,      including the mining franchise, which the First Party has preformed since      1967 up till now. |
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| Seventh: | The      Saudi Company shall pump UD$35,000,000 (thirty five million) for      initiating the purchase of equipment and equipping the present site of the      factories for mining production of the base minerals and the associated      minerals. |
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| Eighth: | The      First Party shall seek to obtain bank facilities on the basis of the      assistance and guarantee of the Saudi Company, without any other      additional costs, for a sum of US$35,000,000 (thirty five million), which      the First Party shall repay from his share in the annual profits of the      Company. |
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| Ninth: | It      is agreed that the activity of the Company which is to be formed shall be      the mining of base ores known as copper, zinc, and the associated gold and      silver minerals, under the franchise granted to Arabian Shield Development      Company, the production and sale of copper condenser, zinc condenser,      silver and gold ingots, under the franchise granted to him and issued by      virtue of Royal Decree No. 137 dated 5/11/1413  H. |
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| Tenth: | It      is agreed by the two Parties that Arabian Shield Development Company has      carried out exploration activities in the Major Factories area, which it      shall assign to the Mining Major Factories Company after the formation      thereof for subsequently obtaining the exploration license and      franchise. |
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| Eleventh: | The      mining franchise issued to the First Party shall be transferred to the      Mixed Company after the formationthereof. |
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| Twelfth: | the      application for licensing the exploration that was filed in the name of      the First Party shall be transferred to the Mixed Company after the      formation thereof. |
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| Thirteenth: | This      Memorandum shall be binding on its two Parties upon signing its final form      by the First Party and the Second Party and the approval of the Board of      Directors of the two companies and the activities shall be conducted on      the basis there of and pursuant thereto. Moreover, each of the First Party      and the Second Party shall work jointly and in full cooperation for      realizing their objective. The two Parties shall commence the      implementation of the provisions of this Memorandum and shall commence the      formalities relating to the formation of Mining Major Factories Company,      as mixed Saudi-American Company within ninety days of the singing of the      Memorandum. They shall also work within the framework of the work plan      indicated in the mining franchise issued by virtue of Royal Decree No. 137      dated 5/11/1413 H. |
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| Fourteenth: | This      Memorandum has been drawled up in three counterparts of which each Party      has kept one in order to act in accordance therewith. The third      counterpart shall be kept by Kadasa Law Firm for Legal      Consultations. |
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|   | Allah      is the bestower of success. |
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|            First      Party | Second      Party |
|------------------------------------------------------------------------------------|-------------------|

| Arabian      Shield Development Company | Thamarat      Najran Company |
|-----------------------------------------|------------------------------|

| Name:      Hatem Hussein Al-Khalidi | Muhd      bin Mane’a Abal Ola |
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| Capacity:      Company President | Capacity:      Company Representative |
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| Signature:      /s/ Hatem El-Khalidi | Signature:      /s/ Muhd bin Mane'a Abal Ola |
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