2321070
2320780
2320804
2320469
2322732
2321071
2320781
2320805
2320470
2320809
2321072
2320782
2320806
2320471
2320810
2321073
2320783
2320807
2320472
2322733
2321074
2320784
2320808
2317154
2320811
2321075
2320785
2320504
2320473
2320812
2321076
2320786
2320505
2320474
2320813
2321077
2320787
2320506
2320475
2320814
14
Schedule B
Sketch map showing the locations of the
140 Quebec mineral claims listed in Schedule A
(on SNRC map sheets 32C06 and 32C03)
[x12020613292000.jpg]
15
Schedule C
NET SMELTER RETURNS ROYALTY
1.
OBLIGATION
(A)
IF ANY PARTY OR BECOMES ENTITLED TO A ROYALTY PURSUANT TO
PARAGRAPH 18.1 OF THE PURCHASE AGREEMENT (A "VENDOR"), THE PURCHASER SHALL
CALCULATE, AS AT THE END OF EACH QUARTER WITHIN EACH FISCAL YEAR USED BY THE
PURCHASER ("FISCAL YEAR") SUBSEQUENT TO THE DATE COMMERCIAL PRODUCTION BEGINS.
(B)
THE PURCHASER SHALL WITHIN 45 DAYS OF THE END OF EACH QUARTER
OF EACH FISCAL YEAR, AS AND WHEN ANY NET SMELTER RETURNS ARE AVAILABLE FOR
DISTRIBUTION, PAY OR CAUSE TO BE PAID TO EACH VENDOR THE NET SMELTER RETURNS TO
WHICH THAT VENDOR IS ENTITLED.
(C)
THE PURCHASER AGREES THAT ON THE REQUEST OF ANY VENDOR IT
WILL EXECUTE AND DELIVER SUCH DOCUMENTS AS MAY BE NECESSARY TO PERMIT THAT
VENDOR TO RECORD ITS INTEREST AGAINST THE PROPERTY.
2.
NET SMELTER RETURNS
(A)
"COMMENCEMENT OF COMMERCIAL PRODUCTION" MEANS (A) IF A MILL
IS LOCATED ON THE PROPERTY, THE LAST CALENDAR DAY OF A PERIOD OF 40 CONSECUTIVE
CALENDAR DAYS IN WHICH, FOR NOT LESS THAN 30 CALENDAR DAYS, THE MILL PROCESSED
ORE FROM THE PROPERTY AT 60% OF ITS RATED CONCENTRATING CAPACITY, OR (B) IF A
MILL IS NOT LOCATED ON THE PROPERTY, THE LAST DAY OF A PERIOD OF 30 CONSECUTIVE
CALENDAR DAYS DURING WHICH ORE HAS BEEN SHIPPED FROM THE PROPERTY ON A
REASONABLY REGULAR BASIS FOR THE PURPOSE OF EARNING REVENUES, BUT ANY PERIOD OF
TIME DURING WHICH ORE OR CONCENTRATE IS SHIPPED FROM THE PROPERTY FOR TESTING
PURPOSES, A BULK SAMPLE OR DURING WHICH MILLING OPERATIONS ARE UNDERTAKEN AS
INITIAL TUNE-UP, WILL NOT BE TAKEN INTO ACCOUNT IN DETERMINING THE DATE OF
COMMENCEMENT OF COMMERCIAL PRODUCTION;
(B)
"NET SMELTER RETURNS" MEANS AFTER COMMENCEMENT OF COMMERCIAL
PRODUCTION, THE NET AMOUNT OF MONEY TO BE PAID TO A VENDOR FOR ITS OWN ACCOUNT
FROM THE SALE OF MINERALS OR CONCENTRATES EXTRACTED AND DERIVED FROM THE ORE
MINED FROM THE PROPERTY ("MINERAL PRODUCTION") TO A MILL, SMELTER OR OTHER ORE
BUYER AFTER DEDUCTION OF ALL PERMISSIBLE DEDUCTIONS.
(C)
"PERMISSIBLE DEDUCTIONS" MEANS THE AGGREGATE (TO THE EXTEND
NOT PREVIOUSLY DEDUCTED OR ACCRUED) THAT IS PAID OR ACCRUED IN EACH MONTHLY
PERIOD RELATING TO THE MINERAL PRODUCTION AS FOLLOWS:
(I)
WEIGHING, SAMPLING, ASSAYING AND REPRESENTATION COSTS, AND
METAL LOSSES;
(II)
PROCESSOR, REFINERY OR SMELTER CHARGES;
(III)
ORE TREATMENT CHARGES, PENALTIES , AND ANY AND ALL CHARGES
MADE BY THE PURCHASER OF THE MINERAL PRODUCTION;
16
(IV)
ANY AND ALL SHIPPING, HANDLING, BROKERAGE, FORWARDING AND
INSURANCE COSTS WHICH MAY BE INCURRED IN CONNECTION WITH THE TRANSPORTATION OF
THE MINERAL PRODUCTION;
(V)
ALL UMPIRE CHARGES