Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals Inc. - Exhibit 4.6

 

 DUE DILIGENCE LICENSE AGREEMENT 

This Agreement is made effective as
  of December 31, 2003 

BETWEEN: 

ROMARCO MINERALS INC., a corporation
  incorporated under the laws of Ontario and having an address of Suite 1500,
  885 West Georgia Street, Vancouver, British Columbia V6C 3E8, facsimile no.:
  (604) 688-9274 

(“Romarco”) 

AND: 

JOHN BELL, an individual resident
  in the State of Nevada 

(“Bell”) 

 WHEREAS: 

                 Bell
  has the right to conduct mining exploration and related operations on the Property
  (as defined below) located in the National District of Humboldt County, Nevada;
  and

                 Bell
  has determined to grant Romarco an exclusive license to conduct due diligence
  relating to existing environmental liabilities and potential mineralization
  on the Property.

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Bell and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

	 1.      	 Representations and Warranties
      

	 
	 1.1      	 Bell represents and warrants to Romarco
        that: 

	 
	 	 (a)      
	 Bell has the requisite power and authority:
      

	 
	 	 	 (i)     
      
	 to enter into this Agreement and all other agreements
        contemplated hereby; and 

	 
	 	 	 (ii)      
	 to carry out and perform his obligations under the
        terms and provisions of this Agreement and all other agreements contemplated
        hereby. 

	 
	 	 (b)      
	 All requisite action on the part of Bell,
        necessary for the execution, delivery and performance of this Agreement
        and all other agreements contemplated hereby, has been taken. This Agreement
        and all other agreements contemplated hereby, when executed and delivered
        by Bell, will be legal, valid, and binding obligations of Bell enforceable
        against Bell in accordance with their terms. The execution, delivery and
        performance of this Agreement will not violate any provision of law; any
        order of any court or other agency of government; or any provision of
        any indenture, agreement or other instrument to which Bell is a party
        or by which his properties or assets are bound; or be in conflict with,
        result in a breach of, or constitute (with due notice and lapse of time)
        a default under any such indenture, agreement or other instrument. There
        is no law, rule or regulation, or any judgment, decree or order of any
        court or governmental authority binding on Bell which would be contravened
        by the execution, delivery, performance or 

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	 	 	enforcement of this
        Agreement and all other agreements contemplated hereby. However, no representation
        is made as to:

	 	 	 	 
	 	 	 (i)     
      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement and all other agreements
        contemplated hereby; or 

	 	 	 	 
	 	 	 (ii)     
      
	 rights to indemnity under this Agreement for securities
        law liability. 

	 	 	 	 
	 	 	Additionally, this representation
        is limited by applicable bankruptcy, insolvency, moratorium, and other
        similar laws affecting generally the rights and remedies of creditors
        and secured parties. 

	 	 (c)      	 Bell has a 100% interest in the three (3) unpatented
        mining claims (the “Property”) held by Bell located
        in the National District of Humboldt County, Nevada, and which are listed
        on Schedule “A” attached hereto. 

	 
	 	 (d)      	 Bell is, subject to the paramount title of the United
        States, the sole and only owner of the unpatented mining claims comprising
        the Property. 

	 
	 	 (e)      	 Bell has the right to grant the License (as defined
        in Section 2.1) and any rights given to Romarco in this Agreement and
        all other agreements contemplated hereby. 

	 
	 	 (f)      	 To the best of his knowledge and belief each of
        the unpatented claims included in the Property will have been validly
        located, filed and recorded in compliance with the laws of the State of
        Nevada and of the United States as they relate to location and recording
        of such claims; that Bell will have timely complied with all of the filing
        provisions of the Federal Land Policy and Management Act (43 U.S.C. Section
        1701, et seq.) and other applicable federal laws and regulations as they
        pertain to the unpatented claims included within the Property; and that
        said claims are valid and subsisting mining claims. 

	 
	 	 (g)      	 Bell has fully and timely paid the Land Holding
        Fees (as defined in Section 5.1) required to maintain the unpatented mining
        claims to the date of execution of this Agreement. 

	 
	 	 (h)      	 Bell’s rights in the Property are not subject
        to any prior agreement, encumbrance, burden or restriction, created by
        any act or instrument of Bell; that to the best of Bell’s knowledge,
        other than the Hatch Adit (as defined in Section 2.5) the Property is
        free from liens and encumbrances and other adverse claims by third parties;
        and that the Property is not burdened with any royalties, overriding royalties,
        net profits interests or payments on production. 

	 
	 	 (i)      	 Other than the Hatch Adit, there are no outstanding
        pending actions, suits or claims affecting all or any of the Property,
        nor, to the best of Bell’s knowledge, has any such action, suit
        or claim been threatened, either verbally or in writing, nor, to the best
        of Bell’s knowledge, is there any basis for any action, suit or
        claim. 

	 
	 	 (j)      	 The execution, delivery and performance of this
        Agreement by Bell and the consummation of the transactions contemplated
        herein, including the lease of the Property to Romarco, does not and will
        not result in or constitute any of the following: (i) a default, breach
        or violation or an event that, with notice or lapse of time or both, would
        be a default, breach or violation of the terms, conditions or provisions
        of any lease, lien, 

 - 3 - 

	 	  	permit, promissory note, security agreement,
        commitment, indenture, mortgage, hypothecation, deed of trust or other
        agreement, instrument or arrangement to which Bell is a party or by which
        it or the Property is bound; (ii) an event that would permit any party
        to rescind any agreement or accelerate the maturity of any obligation
        of Bell related to the Property; (iii) the creation or imposition of any
        lien on the Property; or (iv) an event requiring the consent of any other
        party, including, without limitation, the shareholders of Bell. 

	 
	 	 (k)      
	 To the best of Bell’s knowledge,
        other than the Hatch Adit, there are no outstanding work orders or actions
        required to be taken relating to environmental regulatory or reclamation
        matters, or any existing condition on the Property which could be the
        basis therefor, in respect to the Property or any operations thereon and
        that it has no knowledge of any other environmental issues affecting the
        Property. 

	 
	 1.2      	 Romarco represents and warrants to Bell
        that: 

	 
	 	 (a)      
	 Romarco is a corporation duly organized,
        validly existing, and in good standing under the laws of the Province
        of Ontario, Canada. 

	 
	 	 (b)      
	 Romarco is duly registered to do business
        in the State of Nevada. 

	 
	 	 (c)      
	 Romarco has the requisite corporate power
        and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement and all other agreements
        contemplated hereby, and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement and all agreements contemplated
        hereby. 

	 
	 	 (d)      
	 All requisite corporate action on the
        part of Romarco, and its officers and directors, necessary for the execution,
        delivery and performance of this Agreement and all other agreements of
        Romarco contemplated hereby, have been taken. This Agreement and all agreements
        and instruments contemplated hereby, when executed and delivered by Romarco,
        will be legal, valid, and binding obligations of Romarco enforceable against
        Romarco in accordance with their terms. The execution, delivery and performance
        of this Agreement will not violate any provision of law; any order of
        any court or other agency of government; or any provision of any indenture,
        agreement or other instrument to which Romarco is a party or by which
        its properties or assets are bound; or be in conflict with, result in
        a breach of, or constitute (with due notice and lapse of time) a default
        under any such indenture, agreement or other instrument. There is no law,
        rule or regulation, or any judgment, decree or order of any court or governmental
        authority binding on Romarco which would be contravened by the execution,
        delivery, performance or enforcement of this Agreement or any instrument
        or agreement required hereunder. However, no representation is made as
        to: 

	 
	 	 	 (i)      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement or any other agreement
        contemplated hereby; or 

	 
	 	 	 (ii)      
	 rights to indemnity under this Agreement for securities
        law liability. 

 - 4 - 

	 	 	 Additionally, this representation is limited by
        applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties;
      

	 
	 	 (e)      	 Romarco has obtained all consents, approvals, authorizations,
        declarations, or filings required by any federal, state, local, or other
        authority (except the TSX Venture Exchange), or any lenders, creditors,
        and other third parties in connection with the valid execution, delivery,
        and performance of this Agreement and the consummation of the transaction
        contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement and
        the transactions contemplated hereby have been carried on by Romarco in
        such manner as not to give rise to any valid claim against Bell for a
        brokerage commission, finder’s fee or other fee or commission arising
        by reason of the transactions contemplated by this Agreement. 

 1.3          The
  representations and warranties set out in Sections 1.1 and 1.2 are conditions
  upon which each of Bell and Romarco has relied in entering into this Agreement
  and will survive the termination of the Agreement, and each of Bell and Romarco
  hereby forever indemnifies and saves the other harmless from all loss, damage,
  costs, actions and suits arising out of or in connection with any breach of
  any representation or warranty made by it and contained in this Agreement. 

 2.            The
  Due Diligence License 

 2.1          Grant
  of Due Diligence License. Bell hereby irrevocably grants to
  Romarco the sole and exclusive license to conduct Due Diligence Activities on
  the Property, (the “License”), on the terms set out herein.
  For the purposes of this Agreement, “Due Diligence Activities” means
  geological, geochemical, geophysical, hydrological and other examinations and
  investigations intended to determine the existence on the Property of any condition
  which is, or might be construed to be, a discharge, release, source of contamination
  or other condition which violates, or may be deemed to, violate any applicable
  Federal, state or local laws, regulations and ordinances, and any of such activities
  intended to determine the existence of minerals on the Property. 

 2.2          Maintenance
  of License. To maintain the License in good standing, Romarco
  must: 

	 	 (a)      	 incur Expenditures (as defined in Section
        2.3) on the Property or the Nearby Property (as defined in Section 2.3)
        in the aggregate of two hundred thousand dollars ($200,000) on or
        prior to December 31, 2005; 

	 
	 	 (b)      	 pay a license fee to Bell of $5,980
        on the date of execution of the Agreement and on each anniversary date
        of the Agreement, according to the following schedule: 

	 
	 	 	 (i)     
      
	 $5,980 on or before December 31, 2004. 

	 
	 	 	 (ii)      
	 $5,980 on or before December 31, 2005. 

	 
	 	 	 (iii)      
	 $6,900 on or before December 31, 2006. 

	 
	 	 	 (iv)      
	 $7,820 on or before December 31, 2007. 

	 
	 	 	 (v)      
	 $8,740 on or before December 31, 2008. 

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	 	 	 (vi)  	 $9,200 on or before December 31, 2009; and on or before
      December 31, each successive year thereafter.  
	 	 	  	  
	 	 	 (each a “License Fee” and collectively
      the “License Fees”).  

 2.3          Expenditures.
  For the purposes of Section 2.2(a), the term “Expenditures”
  means: 

	 	 (a)      	 all Land Holding Fees (as defined in Section
        5.1) for the Property and the Nearby Property; 

	 
	 	 (b)      	 those costs incurred to perform work on
        the Property or the Nearby Property (as defined below) including, without
        limitation: 

	 
	 	 	 (i)     
      
	 payments and benefits to personnel engaged in the
        work program on the Property (including analysis and reports thereon)
        and such persons’ travelling expenses; 

	 
	 	 	 (ii)      
	 costs of rehabilitation, reclamation or remediation;
      

	 
	 	 	 (iii)      
	 disbursements for such third party services as drilling,
        assaying, geophysics and the like; 

	 
	 	 	 (iv)      
	 staking additional claims which become part of the
        Property as provided for herein; 

	 
	 	 	 (v)      
	 consulting fees and labour costs; 

	 
	 	 	 (vi)      
	 costs of supplies and making equipment available,
        and the transportation thereof; 

	 
	 	 	 (vii)      
	 costs of transporting personnel; and 

	 
	 	 	 (viii)      
	 title work and the costs of recording same. 

	 
	 	 (c)      	 an amount equal to 10% of the amounts
        set out in Section 2.3(a) and (b), in lieu of general and administrative
        expenses. 

 For greater certainty, except as set out in Section 2.3(c),
  Expenditures will not include Romarco overheads such as executive or directors
  salaries, fees or expenses. 

 For the purposes of this Agreement, the “Nearby Property”
  means those 10 claims held by Buckskin National Mine Ltd., which are contiguous
  with the Property, in respect of which Romarco is signing a similar agreement
  on the date hereof. 

 2.4          Lease
  Option. At any time, at its sole discretion, Romarco may, upon giving Bell
  written notice, exercise an option to acquire a 100% leasehold interest in the
  Property, according to the terms of the Lease Agreement attached hereto as Schedule
  “B” (the “Lease Option Exercise”).

 2.5          Limitation
  of License. During the term of this Agreement, Romarco will not disturb
  that area on the Property which is the subject of an investigation by the United
  States Department of Agriculture – Forest Service, and which has been
  identified by Bell as such (the “Hatch Adit”). Romarco will

 - 6 - 

 indemnify and save harmless Bell from and against all suits,
  claims, demands, losses and expenses that directly arise as a result of Romarco’s
  activities on the Property which may disturb the Hatch Adit. 

 3.            Term
  and Termination of the Agreement 

 3.1         
  This Agreement will have a term of 10 years, commencing on the date hereof (the
  “Term”), unless sooner terminated pursuant to the terms of
  this Agreement. Romarco will have the option, in its sole discretion, to renew
  this Agreement at the end of the Term for one or more additional 10 year terms,
  but may not renew this Agreement more than five successive times. 

 3.2          The
  Expenditures and License Fees required to keep the License in good standing
  as outlined in Section 2.2 are optional at the sole discretion of Romarco and
  Romarco will not be required to make any such License Fee or incur any such
  Expenditures unless it wishes to keep the License in good standing. This agreement
  may be terminated at any time by Romarco upon giving Bell 30 days written notice
  of termination. If termination occurs between July 1st and September
  1st of any year, Romarco will pay the Land Holding Fees for that
  year. Until the Lease Option Exercise has occurred, this Agreement will automatically
  terminate if Romarco fails to: 

	 	 (a)      	 pay the Land Holding Fees (as defined in Section 5.1); 
	 
	 	 (b)      	 incur the Expenditures required by Section 2.2 (a), or 
	 
	 	 (c)      	 satisfy the License Fees, 

 when due and Romarco does not cure such failure within 30
  days after notice of such failure from Bell.

 4.            Information
  Disclosure 

 Upon execution of this Agreement and throughout its term,
  Bell will make available to Romarco all information in his possession or control
  relating to work done on or with respect to the Property. 

 5.            Rights
  and Obligations Prior to Lease Option Exercise 

 5.1         
  Land Holding Fees. Until the Lease Option Exercise or this Agreement
  is terminated, Romarco will be responsible for all obligations associated with
  keeping the Property in good standing including: 

	 	 (a)     
      
	 payment of all mining claim maintenance fees to
        the U.S. Bureau of Land Management in connection with the Property; 

	 
	 	 (b)      
	 payment of recording fees to Humboldt County, Nevada,
        for notices of intent-to-hold; 

 and otherwise maintaining the Property in good standing (the
  “Land Holding Fees”), and any costs incurred in connection
  therewith will be included as Expenditures pursuant to Section 2.3. Until the
  Lease Option Exercise occurs, neither Party will be entitled to create any liens
  or encumbrances against title to the Property or to alter the terms of any agreements
  affecting title to the Property without the prior written approval of the other
  Party. 

 5.2          Work
  Standards. All work done by Romarco will be done in accordance with good
  exploration practice and in compliance with all applicable laws and regulations
  including all reclamation obligations. 

 - 7 - 

 5.3         
  Indemnity. Until the Lease Option Exercise occurs Romarco will indemnify
  and save harmless Bell from and against all suits, claims, demands, losses and
  expenses that directly arise as a result of Romarco’s activities on the
  Property. 

 5.4          Annual
  Reports. During the term of this Agreement, Romarco will provide Bell with
  annual reports indicating any results and interpretations obtained or received
  in connection with exploration work on the Property and an accounting of expenditures
  which were incurred. The annual report will be submitted to Bell on or before
  90 days following the anniversary of the effective date of this Agreement in
  each successive year. Notwithstanding such disclosure by Romarco, it will not
  have any liability or responsibility to Bell in connection with any reports
  or results that it provides to Bell, or any information contained therein, and
  Bell agrees that he will rely on his own appraisals and interpretations related
  thereto.

 5.5          Site
  Visits. Until the Lease Option Exercise occurs, Bell may visit the Property
  and have access to all exploration results from the Property, provided reasonable
  notice is given to Romarco and the costs of any such visits will be borne by
  Bell and Romarco will be held blameless and will be indemnified by Bell for
  any claim or liability arising out of any actions by or the presence of Bell
  or his employees on the Property. Bell acknowledges and agrees that Romarco
  will not bear any responsibility or liability for any use of any information
  so obtained by Bell or as to the accuracy or completeness of such information.

 5.6          Exclusive
  Possession. Romarco will have full rights of access to and quiet and exclusive
  possession of the Property and have the exclusive right to conduct exploration
  work on the Property, with the full right to remove mineral samples and ores
  for the purpose of assays and tests, and to have such buildings, machinery,
  equipment and supplies on the Property as it deems necessary. Upon execution
  of this Agreement, Bell shall execute and deliver to Romarco a deed evidencing
  rights of Romarco under this Agreement in the form attached hereto as Schedule
  “C” or in such other form as is agreed to by Romarco and Bell. 

 6.            The
  Lease Agreement 

 Upon the Lease Option Exercise occurring, the Lease Agreement
  in the form attached hereto as Schedule “B” will be deemed to have
  been entered into between Bell and Romarco and all rights and obligations under
  this Agreement will immediately terminate and be superseded by the rights and
  obligations in the Lease Agreement except that any rights or obligations arising
  under this Agreement prior to the Lease Option Exercise occurring will survive
  this Agreement.

 GENERAL

 7.           
  Notice 

 Any notice, direction or other instrument required or permitted
  to be given under this Agreement may be given in the manner prescribed in the
  Lease Agreement. 

 8.            Confidentiality
  and Press Releases 

 Bell agrees that the entering into of this Agreement and all
  data and information provided to or received by Bell from Romarco with respect
  to the Property will be treated as confidential. Bell will not disclose such
  information to third parties without obtaining the prior written consent of
  Romarco, such consent not to be unreasonably withheld, unless law or regulatory
  authority having jurisdiction requires the disclosure.

 - 8 - 

 9.            Force
  Majeure 

 Other than cash payments to be made hereunder, no Party hereto
  will be liable to the others and no Party hereto will be deemed in default under
  this Agreement for any failure or delay to perform any of its obligations within
  the times specified under this Agreement if such failure or delay is caused
  by or arises out of any act not within the control of the Party, excluding lack
  of funds but including, without limitation, acts of God, strikes, lockouts,
  or other industrial disputes, acts of the public enemy, riots, fire, storm,
  flood, explosion, government restriction, aboriginal land claims, failure to
  obtain any approvals required from regulatory authorities, including environmental
  protection agencies, unavailability of equipment, interference of third party
  specific interests groups or other causes whether of the kind enumerated above
  or otherwise which is not reasonably within the control of the Party. No right
  of a Party will be affected for failure or delay of the Party to meet any condition
  of this Agreement, which failure or delay is caused by one of the events above
  referred to, and all times provided for in this Agreement will be extended for
  a period commensurate with the period of the delay, and so far as possible the
  Party affected will take all reasonable steps to remedy the delay caused by
  the events above referred to provided, however, that nothing contained in this
  section will require any Party to settle any industrial dispute or to test the
  constitutionality of any law enacted by any State or the Federal Government.
  Any Party relying on the provisions of this section will forthwith give notice
  to the other Party of the commencement of such event and of its termination.

 10.           Obligations
  Several 

 The obligations of each party under this Agreement shall be
  in every case several and shall not be construed to be either joint or joint
  and several and nothing herein shall be construed as creating a partnership
  between the parties. Nothing contained in this Agreement shall be deemed to
  constitute a party an agent or legal representative of the other party or to
  create any fiduciary relationship for any purpose whatsoever. Except as otherwise
  specifically provided in this Agreement, a party shall not have any authority
  to act for, or to assume any obligation or responsibility on behalf of, any
  other party. Each party hereby waives its rights to partition of the Property
  and, to that end, agrees that it will not seek or be entitled to partition of
  the Property whether by way of physical partition, judicial sale or otherwise.

 11.           Entire
  Agreement 

 This Agreement including Schedules “A”, “B”
  and “C” hereto, constitutes the entire Agreement between Bell and
  Romarco pertaining to the Property and supersedes all prior agreements, understandings,
  negotiations and discussions, whether oral or written between Bell and Romarco,
  and there are no warranties, representations or other agreements between Bell
  and Romarco in connection with the Property except as set forth herein. 

 12.           Headings
  

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 13.           Currency
  

 References in this Agreement to monetary amounts are expressed
  in United States dollars. 

 - 9 - 

 14.           Further
  Assurances and Agreements 

 Each of the parties to this Agreement will take all such further
  steps and execute all such further and other documentation as may be necessary
  in order to more fully give effect to the provisions of this Agreement.

 15.           Counterparts
  

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which will be deemed to be an original and all of which
  will constitute one and the same document. 

 16.           Governing
  Law 

 This Agreement will be governed by and construed in accordance
  with the laws of the State of Nevada. 

 IN WITNESS WHEREOF the parties have executed this agreement as of the date
  first written above. 

	 ROMARCO MINERALS INC.  	 	 JOHN BELL  
	  	 	 	 
	  	 	 	 
	By:  	 
    	 	 
    
	 	 Diane Garrett  	 	 John Bell  
	 	 President and CEO  	 	  

 SCHEDULE A

 THE PROPERTY 

 John Bell 

  Unpatented Lode Mining Claims 

	  	 Humboldt County  	 BLM  
	 Claim Name  	 Document No.  	 Serial No.  
	  	 	 
	 Rattler No. 2  	  	 796416  
	 Finis  	  	 796417  
	 Sylvanite  	  	 796418  

 SCHEDULE B

 MINING LEASE AGREEMENT 

 MINING LEASE AGREEMENT 

This Agreement is made effective as of [ • ]

BETWEEN: 

ROMARCO MINERALS INC., a corporation
  incorporated under the laws of Ontario and having an address of Suite 1500,
  885 West Georgia Street, Vancouver, British Columbia V6C 3E8, facsimile no.:
  (604) 688-9274 

(“Romarco”) 

AND: 

JOHN BELL, an individual resident
  in the State of Nevada 

(“Bell”) 

 WHEREAS: 

	 A.      	 Bell has the right to conduct mining exploration
        and related operations on the Property (as defined below) located in the
        National District of Humboldt County, Nevada; and 

	 
	 B.      	 Bell has determined to grant Romarco an exclusive
        lease of the Property. 

 NOW THEREFORE in consideration of the mutual promises
  made to each other in this Agreement, Bell and Romarco (each a “Party”
  and collectively the “Parties”) hereby agree as follows:

	 1.      	 Interpretation 

	 
	 1.1      	 Definitions. For the purposes of
        this Agreement the following words and phrases will have the following
        meanings: 

	 
	 	 (a)     
      
	 “Affiliate” means any person, partnership,
        limited liability company, joint venture, corporation, or other form of
        enterprise which Romarco Controls, is Controlled by, or is under common
        Control with. 

	 
	 	 (b)      
	 “Cabins” means the structures on the
        surface of the Property as they existed on the date of execution of the
        Exploration License Agreement. 

	 
	 	 (c)      
	 “Control” used as a verb means, when
        used with respect to an entity, the ability, directly or indirectly through
        one or more intermediaries, to direct or cause the direction of the management
        and policies of such entity through (i) the legal or beneficial ownership
        of voting securities or membership interests; (ii) the right to appoint
        managers, directors or corporate management; (iii) contract; (iv) operating
        agreement; (v) voting trust; or otherwise; and “Control” used
        as a noun means an interest which gives the holder the ability to exercise
        any of the foregoing powers. 

	 
	 	 (d)      
	 “Due Diligence License Agreement” means
        the agreement between Romarco and Bell effective December 31, 2003, pursuant
        to which this Agreement is being executed. 

 - 2 - 

	 	 (e)      	 “Effective Date” means the date on which
        Lease Option Exercise (as defined in the Due Diligence License Agreement)
        occurs. No rights or obligations under this Agreement will become effective
        until the Effective Date of this Agreement. 

	 
	 	 (f)      	 “Effective Date Anniversary” means the
        anniversary of the Effective Date in each year of the Term. 

	 
	 	 (g)      	 “Expenditure” means all costs incurred
        to perform work on the Property. 

	 
	 	 (h)      	 “Hatch Adit” means that area on the
        Property which is the subject of an investigation by the United States
        Department of Agriculture – Forest Service, and which has been identified
        by Bell as such. 

	 
	 	 (i)      	 “Land Holding Fees” means all required
        payments in connection with keeping the Property in good standing to either
        (i) the U.S. Bureau of Land Management; or (ii) Humboldt County, Nevada.
      

	 
	 	 (j)      	 “Lease” means the grant of all rights,
        title and interest in and to the Property including, without limitation,
        the surface and subsurface rights thereof, all ores, minerals and mineral
        rights, and all the rights, title and interest which may be acquired by
        or for Bell in or pertaining to the Property or any part of it during
        the Term. 

	 
	 	 (k)      	 “Net Smelter Returns” means the gross
        amount paid by smelters or purchasers for the minerals or metals in the
        ores from the Property during each year, after deducting only the charges
        made for smelting, treating and refining the ores, minerals and metals,
        all as determined in accordance with Schedule “C” attached
        hereto. 

	 
	 	 (l)      	 “Net Smelter Returns Royalty” means
        a royalty on the Net Smelter Returns calculated using the percentages
        set out on Schedule “B” attached hereto. 

	 
	 	 (m)      	 “Property” means the three (3) unpatented
        mining claims held by Bell located in the National District of Humboldt
        County, Nevada, and which are listed on Schedule. 

	 
	 	 (n)      	 “Term” means the period of time referred
        to and described in Section 3. 

	 
	 	 (o)      	 “Transfer” means transfer by sale, assignment,
        bequest, inheritance, trust, operation of law or other disposition. 

 1.2          Currency. Unless
  otherwise specified, all references to “$” or “dollars”
  shall mean United States dollars.

 2.            Representations
  and Warranties 

	 2.1      	 Bell represents and warrants to Romarco that: 
	 
	 	 (a)      	 Bell has the requisite power and authority: 

	 	 	 	 
	 	 	(i) 	to enter into this Agreement; and 

 - 3 - 

	 	 	 (ii)     
      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement. 

	 
	 	 (b)      	 All requisite actions on the part of Bell,
        necessary for the execution, delivery and performance of this Agreement
        has been taken. This Agreement, when executed and delivered by Bell, will
        be legal, valid, and binding obligations of Bell enforceable against Bell
        in accordance with their terms. The execution, delivery and performance
        of this Agreement will not violate any provision of law; any order of
        any court or other agency of government; or any provision of any indenture,
        agreement or other instrument to which Bell is a party or by which his
        properties or assets are bound; or be in conflict with, result in a breach
        of, or constitute (with due notice and lapse of time) a default under
        any such indenture, agreement or other instrument. There is no law, rule
        or regulation, or any judgment, decree or order of any court or governmental
        authority binding on Bell which would be contravened by the execution,
        delivery, performance or enforcement of this Agreement. However, no representation
        is made as to: 

	 
	 	 	 (i)      
	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement; or 

	 
	 	 	 (ii)      
	 rights to indemnity under this Agreement for securities
        law liability. 

	 
	 	 	 Additionally, this representation is limited
        by applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (c)      	 Bell has the right to Lease the Property
        to Romarco and to grant any rights given to Romarco in this Agreement.
      

	 
	 	 (d)      	 Bell is, subject to the paramount title
        of the United States, the sole and only owner of the unpatented mining
        claims comprising the Property. 

	 
	 	 (e)      	 To the best of his knowledge and belief
        each of the unpatented claims included in the Property will have been
        validly located, filed and recorded in compliance with the laws of the
        State of Nevada and of the United States as they relate to location and
        recording of such claims; that Bell will have timely complied with all
        of the filing provisions of the Federal Land Policy and Management Act
        (43 U.S.C. Section 1701, et seq.) and other applicable federal laws and
        regulations as they pertain to the unpatented claims included within the
        Property; and that said claims are valid and subsisting mining claims.
      

	 
	 	 (f)      	 Bell has fully and timely paid the Land
        Holding Fees required to maintain the unpatented mining claims to the
        Effective Date of this Agreement. 

	 
	 	 (g)      	 Bell’s rights in the Property are
        not subject to any prior agreement, encumbrance, burden or restriction,
        created by any act or instrument of Bell; that to the best of Bell’s
        knowledge, other than the Hatch Adit, the Property is free from liens
        and encumbrances and other adverse claims by third parties; and that the
        Property is not burdened with any royalties, overriding royalties, net
        profits interests or payments on production. 

	 
	 	 (h)      	 Other than the Hatch Adit, there are no
        outstanding pending actions, suits or claims affecting all or any of the
        Property, nor, to the best of Bell’s knowledge, has any such 

 - 4 - 

	 	 	 action, suit or claim been threatened, either verbally
        or in writing, nor, to the best of Bell’s knowledge, is there any
        basis for any action, suit or claim. 

	 
	 	 (i)      	 The execution, delivery and performance of this
        Agreement by Bell and the consummation of the transactions contemplated
        herein, including the Lease of the Property to Romarco, does not and will
        not result in or constitute any of the following: (i) a default, breach
        or violation or an event that, with notice or lapse of time or both, would
        be a default, breach or violation of any of the terms, conditions or provisions
        of any lease, lien, permit, promissory note, security agreement, commitment,
        indenture, mortgage, hypothecation, deed of trust or other agreement,
        instrument or arrangement to which Bell is a party or by which it or the
        Property is bound; (ii) an event that would permit any party to rescind
        any agreement or accelerate the maturity of any obligation of Bell related
        to the Property; (iii) the creation or imposition of any lien on the Property;
        or (iv) an event requiring the consent of any other party, including,
        without limitation, the shareholders of Bell. 

	 
	 	 (j)      	 To the best of Bell’s knowledge, other than
        the Hatch Adit, there are no outstanding work orders or actions required
        to be taken relating to environmental, regulatory, or reclmation matters,
        or any existing condition on the Property which could be the basis therefor,
        in respect to the Property or any operations thereon and that it has no
        knowledge of any other environmental issues affecting the Property. 

 2.2          Romarco
  represents and warrants to Bell that: 

	 	 (a)      	 Romarco is a corporation duly organized,
        validly existing, and in good standing under the laws of the Province
        of Ontario, Canada. 

	 
	 	 (b)      	 Romarco is duly registered to do business
        in the State of Nevada. 

	 
	 	 (c)      	 Romarco has the requisite corporate power
        and authority: 

	 
	 	 	 (i)     
      
	 to enter into this Agreement; and 

	 
	 	 	 (ii)      
	 to carry out and perform its obligations under the
        terms and provisions of this Agreement. 

	 
	 	 (d)      	 All requisite corporate action on the
        part of Romarco, and its officers and directors, necessary for the execution,
        delivery and performance of this Agreement has been taken. This Agreement,
        when executed and delivered by Romarco, will be legal, valid, and binding
        obligations of Romarco enforceable against Romarco in accordance with
        their terms. The execution, delivery and performance of this Agreement
        will not violate any provision of law; any order of any court or other
        agency of government; or any provision of any indenture, agreement or
        other instrument to which Romarco is a party or by which its properties
        or assets are bound; or be in conflict with, result in a breach of, or
        constitute (with due notice and lapse of time) a default under any such
        indenture, agreement or other instrument. There is no law, rule or regulation,
        or any judgment, decree or order of any court or governmental authority
        binding on Romarco which would be contravened by the execution, delivery,
        performance or enforcement of this Agreement. However, no representation
        is made as to: 

 - 5 - 

	 	 	 (i)      	 the remedy of specific performance or other equitable
        remedies for the enforcement of this Agreement; or 

	 
	 	 	 (ii)      	 rights to indemnity under this Agreement for securities
        law liability. 

	 	 	 Additionally, this representation is limited by
        applicable bankruptcy, insolvency, moratorium, and other similar laws
        affecting generally the rights and remedies of creditors and secured parties.
      

	 
	 	 (e)      	 Romarco has obtained all consents, approvals, authorizations,
        declarations, or filings required by any federal, state, local, or other
        authority (except the TSX Venture Exchange), or any lenders, creditors,
        and other third parties in connection with the valid execution, delivery,
        and performance of this Agreement and the consummation of the transactions
        contemplated hereby. 

	 
	 	 (f)      	 All negotiations relative to this Agreement and
        the transactions contemplated hereby have been carried on by Romarco in
        such manner as not to give rise to any valid claim against Bell for a
        brokerage commission, finder’s fee or other fee or commission arising
        by reason of the transactions contemplated by this Agreement. 

 2.3          The
  representations and warranties set out in Sections 2.1 and 2.2 are conditions
  upon which each of Bell and Romarco has relied in entering into this Agreement
  and will survive the termination of the Agreement, and each of Bell and Romarco
  hereby forever indemnifies and saves the other harmless from all loss, damage,
  costs, actions and suits arising out of or in connection with any breach of
  any representation or warranty made by it and contained in this agreement. 

 3.           Term
  

 This Agreement will have a term of 10 years, commencing on
  the Effective date (the “Term”), unless sooner terminated
  pursuant to the terms of this Agreement. Romarco will have the option, in its
  sole discretion, to renew this Agreement at the end of the Term for one or more
  additional 10 year terms, but may not renew this Agreement more than five successive
  times.

 4.            Grant
  of Lease 

 4.1          Grant.
  In consideration of the rents, payments, covenants and agreements hereinafter
  contained on the part of Romarco to be paid, observed and performed, and except
  as specifically provided, Bell will Lease the Property exclusively to Romarco
  for the Term, for the purposes and subject to the terms and conditions provided
  in this Agreement.

 4.2          Mining
  Rights. Bell will grant to Romarco the exclusive right to use the Property
  for the Term of this Agreement in the following manner: 

	 	 (a)      	 Romarco will act as exclusive operator of the Property
        and will be entitled to enter into and on the Property throughout the
        Term to prospect and explore for, develop, mine by any method now known
        or hereafter discovered (including but not limited to, underground, open
        pit, in-situ and solution methods), remove, produce, process by any method
        now known or hereafter discovered, mill, prepare for market, store, sell
        and dispose of all ores, minerals and metals which are or may be found
        therein or thereon. Romarco may, in its sole discretion make any use or
        uses of the Property consistent with 

 - 6 - 

	 	 	 the foregoing purposes, including without limiting
        the generality of the foregoing, the construction of roads, railways,
        conveyors, plants, buildings, docks and aircraft landing areas, and have
        any machinery, equipment and supplies on the Property as it deems necessary.
      

	 
	 	 (b)      	 In so far as Bell may lawfully do so, Bell grants
        to Romarco the right to divert streams, to remove lateral and subjacent
        supports, to cave, subside or destroy the surface of any part of it, to
        deposit earth, rocks, waste, lean ore or material on any part or parts
        of the Property and to commit waste to the extent necessary, usual or
        customary in carrying out any or all of the foregoing rights. 

	 
	 	 (c)      	 Romarco will have complete discretion and control
        with respect to all prospecting, exploration, development or other mining
        work carried out on the Property including, without limiting the generality
        of the foregoing, the methods of mining any ore body found on the Property,
        the treatment of any ores, metals, or materials removed from the ore body,
        and the marketing of ores, metals, materials or other product resulting
        therefrom and will have exclusive charge of all operations on the Property.
      

 4.3          Work
  Standards. All work done by Romarco will be executed in accordance with
  good mining, exploration and development practice and in compliance with all
  applicable laws and regulations including all reclamation obligations. 

 4.4          Exclusive
  Possession. Romarco will have full rights of access to and quiet and exclusive
  possession of the Property. Within five days of execution of this Agreement,
  Bell shall execute and deliver to Romarco a deed evidencing such rights of Romarco
  under this Agreement in the form attached hereto as Schedule “D”
  or in such other form as is agreed by Romarco and Bell. 

 4.5          Ores
  and Products. Subject to the terms of this Agreement, all ores, minerals
  or metals extracted or produced from the Property during the Term, including
  ores under treatment by Romarco, and all products resulting therefrom in the
  form of concentrates, metallics, bullion, tailings, or otherwise will at all
  times become the sole property of and be sold and shipped as the sole property
  of Romarco. 

 4.6          Encumbrances.
  Romarco shall have the right to pledge its interest in the Property as security
  for any loan or other borrowing by Romarco for the purpose of financing Romarco’s
  operations on the Property. 

 4.7          Expenditures.
  Romarco will pay all Expenditures incurred by Romarco related to the Property
  each year during the Term of this Agreement, including any Land Holding Fees,
  but will not be required to incur and fixed amount of Expenditure in any year
  apart from the Land Holding Fees, provided that if Romarco has not incurred
  the minimum Expenditures required pursuant to Section 2.2(a) of the Due Diligence
  License Agreement prior to the Effective Date, Romarco shall continue to be
  liable to incur such Expenditures. 

 4.8          Limitation
  of Lease and Mining Rights. The Parties acknowledge that the Property does
  not include any right in and to the Cabins. For greater certainty, nothing in
  this Agreement shall give Romarco the ability to transfer any right, title or
  interest in the Cabins to any third party.

 5.            Rent
  and Royalty 

 - 7 - 

 5.1          Rent.
  Subject to Section 5.2, Romarco will pay to Bell a cash rent each year
  after the Effective Date as consideration for the Lease of the Property, according
  to the following schedule: 

	 	 (a)      	 $5,980 on or before December 31, 2004; 

	 
	 	 (b)      	 $5,980 on or before December 31, 2005; 

	 
	 	 (c)      	 $6,900 on or before December 31, 2006; 

	 
	 	 (d)      	 $7,820 on or before December 31, 2007; 

	 
	 	 (e)      	 $8,740 on or before December 31, 2008; 

	 
	 	 (f)      	 $9,200 on or before December 31, 2009; and on
        or before each successive December 31 thereafter for the Term of the Agreement.
      

 For greater certainty, Romarco will not be required to make
  any payments under this Section 5.1 to the extent that any corresponding License
  Fees were paid pursuant to Section 2.2(b)of the Exploration License Agreement,
  prior to the Effective Date. 

 5.2          Royalty.
  Romarco will pay to Bell the Net Smelter Returns Royalty within 30 days of each
  calendar quarter as consideration for the Lease of the Property during the Term
  provided that Romarco shall only be required to pay a Net Smelter Return Royalty
  for a calendar year to the extent that such royalty exceeds the amount paid
  under Section 5.1 for such year. 

 6.            Options
  to Purchase 

 6.1         
  Option. Bell grants to Romarco the exclusive right to purchase the Property,
  (the “Option”) subject to the Rent and Royalty reserved by Bell.
  Romarco may exercise the Option at any time after Romarco decides to commence
  development of or mining on the Property or completes a positive feasibility
  study for development of or mining on the Property. The Purchase Price for the
  Property shall be One Thousand Dollars ($1,000.00) . The rental Payments
  paid by Romarco to Buckskin shall not be credited against the purchase Price.

 6.2          Notice
  of Election. If Romarco elects to exercise the Option, Romarco shall deliver
  written notice to Bell. The parties shall make diligent efforts to close the
  conveyance of the Property, as applicable, within thirty (30) days after Romarco’s
  delivery of the notice. 

 6.3          Real
  Property Transfer Taxes. Romarco shall pay the real property transfer taxes,
  if any, the costs of escrow and all recording costs incurred in closing of the
  Option. The parties acknowledge that there are presently no real property transfer
  taxes assessed on the transfer of title to unpatented mining claims, including
  the unpatented mining claims which constitute the Property.

 6.4          Proration
  of Taxes. Payment of any and all state and local real property and personal
  property taxes levied on the Property and not otherwise provided for in this
  Agreement shall be prorated between the parties as of the closing of any transaction
  on the basis of a thirty (30) day month. The parties acknowledge that there
  are presently no real property taxes assessed against unpatented mining claims,
  including the unpatented mining claims which constitute the Property.

 - 8 - 

 6.5          Payment
  on Closing. On closing of the Option, Romarco shall pay the Purchase Price
  to Bell, in cash, certified check or bank draft or by wire transfer to an account
  designated by Bell.

 6.6          Conveyance
  on Closing. If Romarco exercises and closes the Option, Bell shall execute
  and deliver to Romarco a conveyance of the Property which contains the reservation
  of the Net Smelter Returns Royalty and which obligates Romarco to make the Payments
  prescribed in Sections 5.1 and 5.2 of this Agreement. On the closing of the
  Option, the parties shall complete the conveyance by inserting the description
  of all of the unpatented mining claims which comprise the Property on closing
  of the Option. Bell and Romarco shall execute and deliver such other written
  assurances and instructions as are reasonably necessary for the purpose of closing
  the purchase of the Property.

 6.7          Effect
  of Closing.  On closing of the Option, Romarco shall own the Property subject
  to Romarco’s obligations stated in the conveyance of the Property.

 Buckskin’s Option to Repurchase. If Romarco exercises
  the Option, upon conclusion of its operations on the Property and upon determination,
  in Romarco’s sole discretion, that there is insufficient remaining economic
  value in the Property, Romarco shall offer to sell the Property to Bell on the
  same terms Romarco purchased the Property, including the purchase price of $1,000.
  Upon repurchase of the Property by Bell, Romarco shall furnish to Bell without
  cost all non-interpretive data it has on the property, including core samples.

 7.            Taxes
  and Assessments 

 7.1          Business
  Taxes and other Taxes of Romarco. In each year, Romarco will pay when due
  and payable, all taxes, rates, duties and assessments (whether or not they are
  now contemplated by Bell or Romarco) that may be levied, rated, charged, imposed
  or assessed against or in respect of the personal property, improvements, equipment
  or fixtures of Romarco on the Property or against or in respect of the use or
  occupancy of the Property by Romarco, or by any subcontractor (other than corporate
  income, profits, net proceeds of mines or excess profits taxes assessed on the
  income of Bell) whether any assessment fees are charged by any federal, state,
  county or other body. 

 7.2         
  Real Property Taxes.  Romarco will, in each year and within the time
  provided for by the taxing authorities, pay to the taxing authorities, and discharge
  all taxes including local improvement rates, impost charges or levies, rates,
  duties and assessments whether general or special that may be levied, rated
  charged or assessed against the Property or any part thereof from time to time
  on the basis of a separate assessment and separate tax bill by any taxing authority
  whether federal, state, county or otherwise provided that Romarco has been provided
  with written notice thereof by either Bell or the appropriate taxing authority.
  Any taxes payable by Bell which are imposed in lieu of, or as substitute for
  any real property taxes shall also be paid by Romarco following receipt of written
  notice thereof from Bell. Romarco agrees to provide to Bell within thirty days
  after demand by Bell, a copy of any separate tax bills, and separate notices
  of assessments for the Property. Romarco will on request, promptly deliver to
  Bell receipts of payment of all taxes paid to any taxing authorities and will
  furnish other information in connection therewith as Bell may reasonably agree.

 7.3          Bell’s
  Taxes. Romarco will not be liable to pay any taxes or assessments levied
  on Bell based on or payable by reason of: 

	 	 (a)      	 the income or net proceeds of mines of Bell; 
	 
	 	 (b)      	 any payment made to Bell pursuant to this Agreement; or 

 - 9 - 

	 	 (c)      	 any operations or business carried on by Bell and
        related to the Property. 

 8.            Other
  Rights and Obligations of the Parties 

 8.1          Indemnity.
  Romarco will indemnify and save harmless Bell from and against all suits,
  claims, demands, losses and expenses (including all attorney’s fees),
  that (a) directly arise as a result of Romarco’s activities on the Property;
  or (b) arise as a result of any breach of any representation, warranty or covenant
  of Romarco in this Agreement. Bell will indemnify and save harmless Romarco
  from and against all suits demands, losses and expenses (including all attorney’s
  fees on a solicitor and own client basis), that (a) directly arise as a result
  of any activities by a party other than Romarco prior to the date of this Agreement,
  or by or on behalf of Bell after the date of this Agreement; or (b) arise as
  a result of any breach of any representation, warranty or covenant of Bell in
  this Agreement.

 8.2          Annual
  Reports. Romarco will provide Bell with annual reports indicating any results
  and interpretations obtained or received in connection with exploration or development
  work on the Property and an accounting of Expenditures which were incurred.
  The annual report will be submitted to Bell on or before 90 days following December
  31 of each year. Notwithstanding such disclosure by Romarco, it will not have
  any liability or responsibility to Bell in connection with any reports or results
  that it provides to Bell, or any information contained therein, and Bell agrees
  that he will rely on his own appraisals and interpretations related thereto.

 8.3          Information
  Disclosure. Upon execution of this Agreement and throughout the Term, Bell
  will make available to Romarco all information in his possession or control
  relating to work done on or with respect to the Property. 

 8.4          Site
  Visits. Bell may visit the Property and have access to all exploration results
  from the Property, provided reasonable notice is given to Romarco and the costs
  of any such visits will be borne by Bell and Romarco will be held blameless
  and will be indemnified by Bell for any claim or liability arising out of any
  actions by or the presence of Bell on the Property. Bell acknowledges and agrees
  that Romarco will not bear any responsibility or liability for any use of any
  information so obtained by Bell or as to the accuracy or completeness of such
  information.

 9.            Termination

 Romarco may terminate this Agreement at any time during the
  Term, by giving Bell 30 days written notice of termination. If termination occurs
  between July 1st and September 1st of any year, Romarco
  will pay the Land Holding Fees for that year. Upon termination all liabilities
  and obligations of Romarco to Bell not then due or accrued will cease and terminate
  except any liabilities or obligations arising prior to termination. On Romarco’s
  termination of this Agreement, within ten days after termination Romarco shall
  exercise and deliver to Bell a release and termination of this Agreement in
  form acceptable for recording. 

 GENERAL 

 10.           Confidentiality
  and Press Releases 

 Bell agrees that the entering into of this Agreement and all
  data and information provided to or received by Bell from Romarco with respect
  to the Property will be treated as confidential. Bell will not disclose such
  information to third parties without obtaining the prior written consent of
  Romarco, such consent not 

 - 10 - 

 to be unreasonably withheld, unless law or regulatory authority
  having jurisdiction requires the disclosure. 

 11.           Notices

 11.1         Any notice,
  direction or other instrument required or permitted to be given under this Agreement
  will be in writing and may be given by the delivery of the same or by mailing
  the same by prepaid registered or certified mail or by sending the same by telegram,
  telex, telecommunication, facsimile or other similar form of communication,
  in each case addressed as follows: 

	 	 (a)  	 If to Bell at:  
	 	  	 
	 	  	 John Bell  
	 	  	 [ • ]  
	 	  	 
	 	  	 Attention: John Bell  
	 	  	 Facsimile No.: [ • ]  
	 	  	 
	 	  	 With a copy to:  
	 	  	 
	 	  	 Smith and Harmen Ltd.  
	 	  	 502 North Division Street  
	 	  	 Carson City, Nevada 89702-4103  
	 	  	 
	 	  	 Attention: Julian C. Smith  
	 	  	 Facsimile No.: (775) 883-7482  
	 	  	 
	 	 (b)  	 If to Romarco at:  
	 	  	 
	 	  	 Romarco Minerals Inc.  
	 	  	 Suite 1500, 885 West Georgia Street  
	 	  	 Vancouver, British Columbia V6C 3E8  
	 	  	 
	 	  	 Attention: Diane Garrett  
	 	  	Facsimile No.: (604) 688-9274 

 11.2          Any
  notice, direction or other instrument will: 

	 	 (a)      	 if delivered, be deemed to have been given and received
        on the day it was delivered; 

	 
	 	 (b)      	 if mailed, be deemed to have been given and received
        on the 10th day following the day of mailing, except in the event of disruption
        of the postal service in which event notice will be deemed to be received
        only when actually received; and 

	 
	 	 (c)      	 if sent by telegram, telex, telecommunication, facsimile
        or other similar form of communication, be deemed to have been given and
        received on the business day following the day it was so sent. 

 11.3          A
  Party may at any time give to the other Party notice in writing of any change
  of address of the Party giving such notice and from and after the giving of
  such notice the address or 

 - 11 - 

 addresses therein specified will be deemed to be the address
  of such Party for the purposes of giving notice hereunder. 

 12.           Force
  Majeure 

 Other than cash payments to be made hereunder, no Party hereto
  will be liable to the others and no Party hereto will be deemed in default under
  this Agreement for any failure or delay to perform any of its obligations within
  the times specified under this Agreement if such failure or delay is caused
  by or arises out of any act not within the control of the Party, excluding lack
  of funds but including, without limitation, acts of God, strikes, lockouts,
  or other industrial disputes, acts of the public enemy, riots, fire, storm,
  flood, explosion, act of terrorism, government restriction, aboriginal land
  claims, failure to obtain any approvals required from regulatory authorities,
  including environmental protection agencies, unavailability of equipment, interference
  of third party specific interests groups or other causes whether of the kind
  enumerated above or otherwise which is not reasonably within the control of
  the Party. No right of a Party will be affected for failure or delay of the
  Party to meet any condition of this Agreement, which failure or delay is caused
  by one of the events above referred to, and all times provided for in this Agreement
  will be extended for a period commensurate with the period of the delay, and
  so far as possible the Party affected will take all reasonable steps to remedy
  the delay caused by the events above referred to provided, however, that nothing
  contained in this section will require any Party to settle any industrial dispute
  or to test the constitutionality of any law enacted by any Provincial, State
  or Federal Government. Any Party relying on the provisions of this section will
  forthwith give notice to the other Party of the commencement of such event and
  of its termination. 

 13.           Obligations
  Several 

 The obligations of each party under this Agreement shall be
  in every case several and shall not be construed to be either joint or joint
  and several and nothing herein shall be construed as creating a partnership
  between the parties. Nothing contained in this Agreement shall be deemed to
  constitute a party an agent or legal representative of the other party or to
  create any fiduciary relationship for any purpose whatsoever. Except as otherwise
  specifically provided in this Agreement, a party shall not have any authority
  to act for, or to assume any obligation or responsibility on behalf of, any
  other party. Each party hereby waives its rights to partition of the Property
  and, to that end, agrees that it will not seek or be entitled to partition of
  the Property whether by way of physical partition, judicial sale or otherwise.

 14.          Entire
  Agreement 

 This Agreement including Schedules “A”, “B”,
  “C” and “D” hereto, constitutes the entire Agreement
  between Bell and Romarco pertaining to the Property and supersedes all prior
  agreements, understandings, negotiations and discussions, whether oral or written
  between Bell and Romarco, and there are no warranties, representations or other
  agreements between Bell and Romarco in connection with the Property except as
  set forth herein. 

 15.           Headings
  

 Headings in this Agreement are for reference and convenience
  only with no legal significance and do not expand, amend, alter or influence
  in any way the substantive provisions of the sections to which they refer. 

 - 12 - 

 16.          
  Further Assurances and Agreements 

 Each of the parties to this Agreement will take all such further
  steps and execute all such further and other documentation as may be necessary
  in order to more fully give effect to the provisions of this Agreement.

 17.           Counterparts

 This Agreement may be executed in one or more counterparts,
  or by facsimile, each of which will be deemed to be an original and all of which
  will constitute one and the same document. 

 18.           Governing
  Law 

 This Agreement will be governed by and construed in accordance
  with the laws of the State of Nevada. 

 IN WITNESS WHEREOF the parties have executed this agreement
  as of the date first written above. 

	 ROMARCO MINERALS INC.  	 	 John Bell  
	 	  	 	 
	 	  	 	 
	By: 	 
    	 	 
    
	 	 Diane Garrett  	 	 John Bell  
	 	 President and CEO  	 	  

 SCHEDULE A

 John Bell 

  Unpatented Lode Mining Claims 

	  	 Humboldt County  	 BLM  
	 Claim Name  	 Document No.  	 Serial No.  
	  	 	 
	 Rattler No. 2  	  	 796416  
	 Finis  	  	 796417  
	 Sylvanite  	  	 796418  

 SCHEDULE B

 NET SMELTER RETURNS ROYALTY 

	 Royalty (%)  	 Gold Price ($)  
	 3.0  	 up to (and including) < 300.00  
	 3.5  	 300.01 to 350.00  
	 4.0  	 350.01 to 400.00  
	 4.5  	 400.01 to 500.00  
	 5.0  	 over >500.00  

 For the purposes of this Schedule A and the Agreement to which
  this Schedule A is attached, the Gold Price shall mean the New York fix for
  the relevant quarter. 

 SCHEDULE C

 NET SMELTER RETURNS ROYALTY 

	 1.      	 Definitions – For the purpose
        of this Schedule, “Agreement” shall mean the Agreement to
        which this Schedule is attached, and other capitalized terms shall have
        the meanings assigned to them in the Agreement. 

	 
	 2.      	 Net Smelter Returns – For
        the purpose hereof, the term “Net Smelter Returns” shall,
        subject to paragraphs 3, 4, 5, and 6 below, mean gross revenues received
        from the sale by the Owner of all ore mined from the Property and from
        the sale by the Owner of concentrate, doré, metal and products
        derived from ore mined from the Property, after deduction of the following:
      

	 
	 	 (a)     
      
	 all smelting and refining costs, sampling, assaying
        and treatment charges and penalties including but not limited to metal
        losses, penalties for impurities and charges for refining, selling and
        handling by the smelter, refinery or other purchaser (including price
        participation charges by smelters and/or refiners); and 

	 
	 	 (b)      
	 costs of handling, transporting, securing and insuring
        such material from the Property or from a concentrator, whether situated
        on or off the Property, to a smelter, refinery or other place of treatment,
        and in the case of gold or silver concentrates, security costs; and 

	 
	 	 (c)      
	 ad valorem taxes and taxes based upon sales or production,
        but not income or net proceeds of mines taxes; and 

	 
	 	 (d)      
	 marketing costs, including sales commissions, incurred
        in selling ore mined from the Property and from concentrate, doré,
        metal and products derived from ore mined from the Property. 

	 
	 3.      	 Non-Arm’s Length Revenue –
        Where revenue otherwise to be included under this Schedule is received
        by the Owner in a transaction with a party with whom it is not dealing
        at arm’s length, the revenue to be included shall be based on the
        fair market value under the circumstances and at the time of the transaction.
      

	 
	 4.      	 Non-Arm’s Length Costs –
        Where a cost otherwise deductible under this Schedule is incurred by the
        Owner in a transaction with a party with whom it is not dealing at arm’s
        length, the cost to be deducted shall be the fair market cost under the
        circumstances and at the time of the transaction. 

	 
	 5.      	 Currency – For the purpose
        of determining Net Smelter Returns, all receipts and major disbursements
        will be calculated in U.S. dollars. 

	 
	 6.      	 Hedging – Romarco may, but
        shall not be under any duty to, engage in price protection (hedging) or
        speculative transactions such as futures contracts and commodity options
        in its sole discretion covering all or part of production from the Property
        and, except in the case where products are actually delivered and a sale
        is actually consummated under such price protection or speculative transactions,
        none of the revenues, costs, profits or losses from such transactions
        shall be taken into account in calculating Net Smelter Returns or any
        interest therein. 

	 
	 7.      	 Commingling – If the Property
        is brought into commercial production, it may be operated as a single
        operation with other mining properties owned by third parties or in which
        the Owner has an 

 - 2 - 

	 	 interest, in which event, the parties
        agree that (notwithstanding separate ownership thereof) ores mined from
        the mining properties (including the Property) may be blended at the time
        of mining or at any time thereafter, provided, however, that the respective
        mining properties shall bear and have allocated to them their proportionate
        part of costs described in paragraphs 2(a) to 2(d) above incurred relating
        to the single operation, and shall have allocated to each of them the
        proportionate part of the revenues earned relating to such single operation.
        In making any such allocation, effect shall be given to the tonnages and
        location of ore and other material mined and beneficiated and the characteristics
        of such material including the metal content of ore removed from, and
        to any special charges relating particularly to ore, concentrates or other
        products or the treatment thereof derived from, any of such mining properties.
      

	 
	 8.      	 Sampling – The Owner shall
        ensure that reasonable practices and procedures are adopted and employed
        for weighing, determining moisture content, sampling and assaying and
        determining recovery factors. 

	 
	 9.      	 Payments – Payments of a
        percentage of Net Smelter Returns shall be made to Bell within thirty
        (30) days after the end of each calendar quarter in which Net Smelter
        Returns, as determined on the basis of final adjusted invoices, are received
        by the Owner. All such payments shall be made in U.S. dollars, or at the
        option of the Holder, in kind. 

	 
	 10.      	 Calculations – After the
        year in which commercial production is commenced on the Property, Bell
        receiving a percentage of Net Smelter Returns from the Owner shall be
        provided annually on or before April 1 with a copy of the calculation
        of Net Smelter Returns, determined in accordance with this Schedule, for
        the preceding calendar year, certified correct by the Owner. 

	 
	 11.      	 Audits – The Owner shall
        cause the Net Smelter Returns and the records relating thereto to be audited
        within the first quarter of each calendar year by a national firm of chartered
        accountants designated and paid by the Owner (which may be the auditor
        of the Owner) and: 

	 
	 	(a) 
	 copies of the audited reports shall be delivered
        to the Holder and the Owner by the chartered ccounting firm; 

	 
	 	(b) 
	 either party shall have three (3) months after receipt
        of any audited report to object thereto in writing to the other party,
        and failing such objection, such report shall be deemed correct; and 

	 
	 	(c) 
	 in the event of a reaudit, all costs relating to
        such reaudit shall be paid by the Owner (if the original audit is found
        in error by a margin of 10% or more) or Bell (if the original audit is
        found to be correct) and the Holder requested the reaudit. 

	 
	 12.      	 Rights of Parties – Nothing
        contained in the Agreement or any Schedule attached thereto shall be deemed
        to constitute Romarco the partner, agent or legal representative of Bell
        or to create any fiduciary relationship between them for any purpose whatsoever.
      

	 
	 13.      	 Operations – The Owner shall
        be entitled to: 

	 
	 	 (a) 
	Make all operational decisions with respect to the
        methods and extent of mining and processing of ore, concentrate, doré,
        metal and products produced from the Property (for example, without limitation,
        the decision to process by heap leaching rather than conventional milling);
      

 - 3 - 

	 	 (b)      	 Make all decisions relating to sales of such ore,
        concentrate, doré, metal and products produced; and 

	 
	 	 (c)      	 Make all decisions concerning temporary or long-term
        cessation of operations. 

 SCHEDULE D

 MEMORANDUM OF MINING LEASE AGREEMENT 

                          This
  Memorandum of Mining Lease Agreement (“Memorandum”) is made by and
  between John Bell, an individual resident in the State of Nevada (“Owner”),
  and Romarco Minerals Inc., an Ontario corporation (“Romarco”). 

                          Notice
  is given that Owner and Romarco have entered into the Mining Lease Agreement
  (“Agreement”) dated effective the date of this Memorandum, in accordance
  with which Owner has leased to Romarco the unpatented mining claims described
  in Schedule 1 attached to and by this reference incorporated in this Memorandum.

                          The
  term of the Agreement shall be from its Effective Date for 10 (10) years, unless
  terminated, renewed or cancelled. 

 SCHEDULE C

 MEMORANDUM OF DUE DILIGENCE LICENSE AGREEMENT 

                          This
  Memorandum of Due Diligence License Agreement (“Memorandum”) is
  made by and between John Bell, an individual resident in the State of Nevada
  (“Owner”), and Romarco Minerals Inc., an Ontario corporation (“Romarco”).

                          Notice
  is given that Owner and Romarco have entered into the Due Diligence License
  Agreement (“Agreement”) dated effective the date of this Memorandum,
  in accordance with which Owner has leased to Romarco the unpatented mining claims
  described in Schedule 1 attached to and by this reference incorporated in this
  Memorandum. 

                          The
  term of the Agreement shall be from its Effective Date for 10 (10) years, unless
  terminated, renewed or cancelled.Filed by Automated Filing Services Inc. (604) 609-0244 - Romarco Minerals U.S. Inc. - Exhibit 4.7

 

 ROMARCO MINERALS INC. 

 STOCK OPTION PLAN 

 ARTICLE I

  INTRODUCTION 

 1.1                       
  Purpose of Plan 

                              The
  purpose of the Plan is to secure for the Corporation and its shareholders the
  benefits of incentive inherent in the share ownership by the directors, officers,
  key employees and consultants of the Corporation and its Subsidiaries who, in
  the judgment of the Board, will be largely responsible for its future growth
  and success. It is generally recognized that a stock option plan of the nature
  provided for herein aids in retaining and encouraging employees and directors
  of exceptional ability because of the opportunity offered them to acquire a
  proprietary interest in the Corporation. 

 1.2                      
  Definitions 

	 	 (a)      	 “Affiliate” means with respect
        to a company, a second company that is a parent or subsidiary of the first
        company or that is controlled by the same company or individual as the
        first company. 

	 
	 	 (b)      	 “Associate” has the meaning
        ascribed thereto in the Securities Act. 

	 
	 	 (c)      	 “Board” means the board of
        directors of the Corporation, or any committee of the board of directors
        to which the duties of the board of directors hereunder are delegated.
      

	 
	 	 (d)      	 “Change of Control” means:
      

	 
	 	 	 (i)     
      
	 any Person, or combination of Persons acting jointly
        or in concert, acquiring or becoming the beneficial owner of, directly
        or indirectly, more than 20% of the voting securities of the Corporation,
        whether through the acquisition of previously issued and outstanding voting
        securities of the Corporation or of voting securities of the Corporation
        that have not been previously issued, or any combination thereof or any
        other transaction having a similar effect; and 

	 
	 	 	 (ii)      
	 amalgamation, merger or arrangement of the Corporation
        with or into another where the holders of Shares immediately prior to
        the transaction will hold less than 51% of the voting securities of the
        resulting entity upon completion of the transaction. 

	 
	 	 (e)      	 “Corporation” means Romarco
        Minerals Inc., and includes any successor corporation thereto. 

 - 2 - 

	 	 (f)      	 “Consultant” means, in relation
        to the Corporation, an individual or a Consultant Company, other than
        a Director, Officer, Employee or Management Company Employee of the Corporation,
        that: 

	 
	 	 	 (i)     
      
	 is engaged to provide on an ongoing bona fide basis,
        consulting, technical, management or other services to the Corporation
        or to an Affiliate of the Corporation, other than services provided in
        relation to a distribution; 

	 
	 	 	 (ii)      
	 provides the services under a written contract between
        the Corporation or the Affiliate and the individual or the Consultant
        Company; 

	 
	 	 	 (iii)      
	 in the reasonable opinion of the Corporation, spends
        or will spend a significant amount of time and attention on the affairs
        and business of the Corporation or an Affiliate of the Corporation; and
      

	 
	 	 	 (iv)      
	 has a relationship with the Corporation or an Affiliate
        of the Corporation that enables the individual to be knowledgeable about
        the business and affairs of the Corporation. 

	 
	 	 (g)      	 “Consultant Company” means
        for an individual consultant, a company or partnership of which the individual
        is an employee, shareholder or partner. 

	 
	 	 (h)      	 “Director” means a director
        of the Corporation or any of its Subsidiaries. 

	 
	 	 (i)      	 “Eligible Person” means an
        Employee, Management Company Employee, Director, Officer or Consultant
        of the Corporation or any of its Subsidiaries and, except in relation
        to a Consultant Company, includes a company that is wholly- owned by such
        persons. 

	 
	 	 (j)      	 “Employee” means: 

	 
	 	 	 (i)      
	 an individual who is a bona fide employee of the
        Corporation or of any Subsidiary of the Corporation under the Income
        Tax Act (Canada); 

	 
	 	 	 (ii)      
	 an individual who works full-time for the Corporation
        or of any Subsidiary of the Corporation providing bona fide services normally
        provided by an employee and who is subject to the same control and direction
        by the Corporation over the details and methods of work as an employee
        of the Corporation, but for whom income tax deductions are not made at
        source; or 

	 
	 	 	 (iii)      
	 an individual who works for the Corporation or a
        Subsidiary of the Corporation on a continuing and regular basis for a
        minimum amount of time per week, providing bona fide services normally
        provided by an employee and who is subject to the same control and direction
        by the Corporation over the details and methods of work as an employee
        of the Corporation, but for whom income tax deductions are not made at
        source. 

 - 3 - 

	 	 (k)      	 “Exchange” means the TSX Venture
        Exchange or any other stock exchange on which the Shares are listed. 

	 
	 	 (l)      	 “Insider” of the Corporation
        shall mean a Participant who is an “insider” of the Corporation
        as defined in the Securities Act. 

	 
	 	 (m)      	 “Investor Relations Activities”
        means the activities as defined under the rules and policies of the Exchange.
      

	 
	 	 (n)      	 “Management Company Employee”
        means an individual who is a bona fide employee of a company providing
        management services to the Corporation, which are required for the ongoing
        successful operation of the business enterprise of the Corporation, but
        excluding a person engaged in Investor Relations Activities. 

	 
	 	 (o)      	 “Market Price” means, as of
        any date, the value of the Shares, determined as follows: 

	 
	 	 	 (i)     
      
	 if the Shares are listed on the TSX Venture Exchange,
        the Market Price shall be the closing price of the Shares on the TSX Venture
        Exchange for the last market trading day prior to the date of the grant
        of the Option less any discount permitted by the TSX Venture Exchange;
      

	 
	 	 	 (ii)      
	 if the Shares are listed on The Toronto Stock Exchange,
        the Market Price shall be the closing price of the Shares on The Toronto
        Stock Exchange for the last market trading day prior to the date of the
        grant of the Option; 

	 
	 	 	 (iii)      
	 if the Shares are listed on an exchange other than
        the TSX Venture Exchange or The Toronto Stock Exchange, the Market Price
        shall be the closing price of the Shares (or the closing bid, if no sales
        were reported) as quoted on such exchange for the last market trading
        day prior to the date of the grant of the Option; and 

	 
	 	 	 (iv)      
	 if the Shares are not listed on an exchange, the
        Market Price shall be determined in good faith by the Board. 

	 
	 	 (p)      	 “Officer” means a senior officer
        of the Corporation or any of its Subsidiaries. 

	 
	 	 (q)      	 “Option” means an option to
        purchase Shares granted under the terms of the Plan. 

	 
	 	 (r)      	 “Option Commitment” means
        the notice of grant of an Option delivered by the Corporation hereunder
        to an Optionee and substantially in the form of Exhibit A hereto. 

	 
	 	 (s)      	 “Option Period” means the
        period during which an Option may be exercised. 

 - 4 - 

	 	 (t)      	 “Optionee” means a Participant to whom
        an Option has been granted under the terms of the Plan. 

	 
	 	 (u)      	 “Participant” means, in respect of the
        Plan, a person who elects to participate in the Plan. 

	 
	 	 (v)      	 “Person” has the meaning ascribed thereto
        in the Securities Act. 

	 
	 	 (w)      	 “Plan” means the Stock Option Plan established
        and operated pursuant to Article II hereof, as the same may be amended
        from time to time. 

	 
	 	 (x)      	 “Securities Act” means the Securities
        Act, R.S.B.C., 1996 c. 418, as amended. 

	 
	 	 (y)      	 “Securities Laws” means the applicable
        securities legislation or regulations of any jurisdiction of Canada, or
        the applicable bylaws, rules or other regulatory instruments of a self
        regulatory body, exchange or quotation and trade reporting system. 

	 
	 	 (z)      	 “Share Compensation Arrangement” means
        the Plan described herein and any other stock option, stock option plan,
        employee stock purchase plan or any other compensation or incentive mechanism
        involving the issuance or potential issuance of Shares to one or more
        Eligible Persons. 

	 
	 	 (aa)      	 “Shares” means the common shares of
        the Corporation. 

	 
	 	 (bb)      	 “Subsidiary” has the meaning ascribed
        thereto in the Securities Act. 

 ARTICLE II 

  STOCK OPTION PLAN 

 2.1                      
  Participation 

                             Options
  to purchase Shares may be granted hereunder to Eligible Persons. 

 2.2                      
  Determination of Option Recipients 

                             The
  Board shall make all necessary or desirable determinations regarding the granting
  of Options to Eligible Persons and may take into consideration the present and
  potential contributions of a particular Eligible Person to the success of the
  Corporation and any other factors which it may deem proper and relevant. 

 2.3                      
  Exercise Price 

                             The
  exercise price per Share shall be determined by the Board but, in any event,
  shall not be lower than the Market Price of the Shares. Any reduction in the
  exercise price of an Option held by an Optionee who is an Insider of the Corporation
  at the time of the proposed reduction will require disinterested shareholder
  approval. 

 - 5 - 

 2.4                      
  Grant of Options 

                             The
  Board may at any time authorize the granting of Options to such Eligible Persons
  as it may select for the number of Shares that it shall designate, subject to
  the provisions of the Plan. A Director of the Corporation to whom an Option
  may be granted shall not participate in the decision of the Board to grant such
  Option. The date of each grant of Options shall be determined by the Board when
  the grant is authorized. For Options granted to Employees, Consultants or Management
  Company Employees, the Corporation represents that the Optionee is a bona fide
  Employee, Consultant or Management Company Employee, as the case may be. 

 2.5                      
  Option Commitment 

                             Each
  Option granted to an Optionee shall be evidenced by an Option Commitment detailing
  the terms of the Option and upon delivery of the Option Commitment to the Optionee
  by the Corporation the Optionee shall have the right to purchase the Shares
  underlying the Option at the exercise price set out therein, subject to any
  provisions as to the vesting of the Option. 

 2.6                      
  Terms of Options 

                             The
  periods within which Options may be exercised and the number of Shares which
  may be exercised in any such period shall be determined by the Board at the
  time of granting the Options provided, however, that all Options shall be exercisable
  during a period not extending beyond five years from the date of the Option
  grant.

 2.7                      
  Exercise of Option 

                             Subject
  to the provisions of the Plan, an Option may be exercised from time to time
  by delivery to the Corporation of a written notice of exercise specifying the
  number of Shares with respect to which the Option is being exercised and accompanied
  by payment in full of the exercise price of the Shares to be purchased. Certificates
  for such Shares shall be issued and delivered to the Optionee within a reasonable
  time following the receipt of such notice and payment. 

 2.8                      
  Hold Period 

                             If
  required by the Exchange, in addition to any resale restrictions under Securities
  Laws, all stock options and any Shares issued on the exercise of stock options
  shall be legended with a four month Exchange hold period commencing on the date
  the Options were granted.

 2.9                      
  Vesting 

                             Options
  granted pursuant to the Plan are exercisable by an Optionee and vest over a
  period of eighteen months as follows: 

 - 6 - 

	 	 (a)      	 25% of the initial aggregate number of Shares which
        may be purchased under the Option will vest on the date of grant; 

	 
	 	 (b)      	 25% of the initial aggregate number of Shares which
        may be purchased under the Option will vest on the date which is six months
        after the date of grant; 

	 
	 	 (c)      	 25% of the initial aggregate number of Shares which
        may be purchased under the Option will vest on the date which is twelve
        months after the date of grant; and 

	 
	 	 (d)      	 25% of the initial aggregate number of Shares which
        may be purchased under the Option will vest on the date which is eighteen
        months after the date of grant. 

 2.10                      Lapsed
  Options 

                             If
  Options are surrendered, terminated or expire without being exercised in whole
  or in part, new Options may be granted covering the Shares not purchased under
  such lapsed Options. 

 2.11                      Death
  of Optionee 

                             If
  an Optionee ceases to be an Eligible Person due to its death, any Option held
  by it at the date of death shall be exercisable by the legal representative(s)
  of the estate of the Optionee. All such Options shall be exercisable only to
  the extent that the Optionee was entitled to exercise the Option at the date
  of death and only for six months after the date of death or prior to the expiration
  of the Option Period in respect thereof, whichever is sooner. 

 2.12                      Termination
  of Employment 

                             If
  an Optionee ceases to be an Employee or other Eligible Person, other than as
  a result of termination with cause, or ceases to act as a Director of the Corporation
  or any of its Subsidiaries, any Option held by such Optionee at the effective
  date thereof shall be exercisable only to the extent that the Optionee is entitled
  to exercise the Option and only for 60 days thereafter (or such longer period
  as may be prescribed by law) or prior to the expiration of the Option Period
  in respect thereof, whichever is sooner. Notwithstanding the foregoing, Options
  granted to an Optionee who is engaged in Investor Relations Activities must
  expire within 30 days after the Optionee ceases to be employed to provide Investor
  Relations Activities. In the case of an Optionee being dismissed from employment
  or service for cause, the Option shall immediately terminate and shall no longer
  be exerciseable as of the date of such dismissal. 

 2.13                      Effect
  of Reorganization, Amalgamation or Merger 

                             If
  the Corporation is reorganized, amalgamated or merges with or into another company,
  any Shares receivable on the exercise of an Option shall be converted into the
  securities, property or cash which the Optionee would have received upon such
  reorganization, amalgamation or merger if the Optionee had exercised his Option
  immediately prior to the record date applicable to such reorganization, amalgamation
  or merger, and the exercise price shall be 

 - 7 - 

 adjusted appropriately by the Board and such adjustment shall
  be effective and binding for all purposes of the Plan. 

 2.14                      Change
  of Control 

                             In
  the event of an offer being made, either to the Corporation or to the shareholders
  of the Corporation, by a person acting at arm’s length to the Corporation,
  as that term is defined in the Income Tax Act (Canada), by which a Change
  of Control is proposed, whether with the co-operation of the Board or otherwise,
  then prior to the completion of such Change of Control, the Board may, in its
  sole and absolute discretion, cause any or all outstanding Options issued to
  Eligible Persons pursuant to the Plan (except only those which are subject to
  cancellation), whether vested or unvested, to vest and be exercisable as at
  such time as the Board may determine.

 2.15                      Adjustment
  in Shares Subject to the Plan 

                             If
  there is any change in the Shares of the Corporation through or by means of
  a declaration of stock dividends or consolidations, subdivisions or reclassifications
  of Shares, or otherwise, the number of Shares subject to any Option, the exercise
  price therefor and the maximum number of Shares which may be issued under the
  Plan in accordance with Section 3.1 (a) shall be adjusted appropriately by the
  Board and such adjustment shall be effective and binding for all purposes of
  the Plan.

 ARTICLE III 

  GENERAL 

 3.1                      
  Maximum Number of Shares 

	 	 (a)      	 The aggregate number of Shares that may be reserved
        for issuance pursuant to this Plan to all Participants is 4,517,264 Shares
        (including outstanding options). 

	 
	 	 (b)      	 The aggregate number of Shares reserved for issuance
        pursuant to this Plan or any other Share Compensation Arrangement (pre-existing
        or otherwise) to any one Participant within a 12 month period shall not
        exceed 5% of the Shares outstanding at the time of the grant. 

	 
	 	 (c)      	 The aggregate number of Shares reserved for issuance
        pursuant to this Plan or any other Share Compensation Arrangement (pre-existing
        or otherwise) to any one Consultant within a 12 month period shall not
        exceed 2% of the Shares outstanding at the time of the grant. 

	 
	 	 (d)      	 The aggregate number of Shares reserved for issuance
        pursuant to this Plan or any other Share Compensation Arrangement (pre-existing
        or otherwise) to an Employee conducting Investor Relations Activities
        within a 12 month period shall not exceed 2% of the Shares outstanding
        at the time of the grant. 

 - 8 - 

	 	 (e)      	 The aggregate number of Options which may be granted
        pursuant to this Plan or any other Share Compensation Arrangement (pre-existing
        or otherwise) to Insiders within a 12 month period shall not exceed 10%
        of the Shares outstanding from time to time. 

 3.2                      
  Transferability 

                             Options
  are not assignable or transferable other than by will or by the applicable laws
  of descent. During the lifetime of an Optionee, all Options may only be exercised
  by the Optionee. 

 3.3                      
  Employment 

                             Nothing
  contained in the Plan shall confer upon any Optionee any right with respect
  to employment or continuance of employment with the Corporation or any Subsidiary,
  or interfere in any way with the right of the Corporation or any Subsidiary,
  to terminate the Optionee’s employment at any time. Participation in the
  Plan by an Optionee is voluntary. 

 3.4                      
  No Shareholder Rights 

                             An
  Optionee shall not have any rights as a shareholder of the Corporation with
  respect to any of the Shares covered by an Option until the Optionee exercises
  such Option in accordance with the terms of the Plan and the issuance of the
  Shares by the Corporation. 

 3.5                      
  Record Keeping 

                             The
  Corporation shall maintain a register in which shall be recorded the name and
  address of each Optionee, the number of Options granted to an Optionee, the
  details thereof and the number of Options outstanding. 

 3.6                      
  Necessary Approvals 

                             The
  Plan shall be effective only upon the approval of both the Board and the shareholders
  of the Corporation by ordinary resolution. The obligation of the Corporation
  to sell and deliver Shares in accordance with the Plan is subject to the approval
  of any governmental authority having jurisdiction or any stock exchanges on
  which the Shares are listed for trading which may be required in connection
  with the authorization, issuance or sale of such Shares by the Corporation.
  If any Shares cannot be issued to any Optionee for any reason including, without
  limitation, the failure to obtain such approval, then the obligation of the
  Corporation to issue such Shares shall terminate and any exercise price paid
  by an Optionee to the Corporation shall be returned to the Optionee. 

 3.7                      
  Administration of the Plan 

                             The
  Board is authorized to interpret the Plan from time to time and to adopt, amend
  and rescind rules and regulations for carrying out the Plan. The interpretation
  and construction of any provision of the Plan by the Board shall be final and
  conclusive.

 - 9 - 

 Administration of the Plan shall be the responsibility of
  the appropriate officers of the Corporation and all costs in respect thereof
  shall be paid by the Corporation. 

 3.8                      
  Income Taxes 

                             As
  a condition of and prior to participation in the Plan, a Participant shall on
  request authorize the Corporation in written form to withhold from any remuneration
  otherwise payable to such Participant any amounts required by any taxing authority
  to be withheld for taxes of any kind as a consequence of such participation
  in the Plan. 

 3.9                      
  Amendments to the Plan 

                             The
  Board may from time to time, subject to applicable law and to the prior approval,
  if required, of the Exchange or any other regulatory body having authority over
  the Corporation or the Plan or, if required by the rules and policies of the
  Exchange, the shareholders of the Corporation, suspend, terminate or discontinue
  the Plan at any time, or amend or revise the terms of the Plan or of any Option
  granted under the Plan and the Option Commitment relating thereto, provided
  that no such amendment, revision, suspension, termination or discontinuance
  shall in any manner adversely affect any Option previously granted to an Optionee
  under the Plan without the consent of that Optionee. 

 3.10                      No
  Representation or Warranty 

                             The
  Corporation makes no representation or warranty as to the future market value
  of any Shares issued in accordance with the provisions of the Plan. 

 3.11                      Interpretation

                             The
  Plan will be governed by and construed in accordance with the laws of the Province
  of British Columbia and the laws of Canada applicable therein. 

 3.12                      Compliance
  with Applicable Law 

                             If
  any provision of the Plan or any agreement entered into pursuant to the Plan
  contravenes any law or any order, policy, by-law or regulation of any regulatory
  body or stock exchange having authority over the Corporation or the Plan then
  such provision shall be deemed to be amended to the extent required to bring
  such provision into compliance therewith. 

 Approved by the Board on May 18, 2004. 

 Approved by the Shareholders on June 24, 2004. 

 EXHIBIT A 

 ROMARCO MINERALS INC. 

 STOCK OPTION PLAN 

 OPTION COMMITMENT 

 Notice is hereby given that, effective this _____ day of ______________________
  (the “Effective Date”), Romarco Minerals Inc. (the “Corporation”)
  has granted to _____________________________ , an Option to acquire _______________
  Common Shares (“Shares”) up to 5:00 p.m. Vancouver Time on the ___________
  day of __________________________ (the “Expiry Date”) at an exercise
  price of Cdn. $ _______ per share. 

 Shares may be acquired as follows: 

• 

 The grant of the Option evidenced hereby is made subject to
  the terms and conditions of the Corporation’s Stock Option Plan, the terms
  and conditions of which are hereby incorporated herein. 

 To exercise your Option, deliver to the Corporation a written
  notice specifying the number of Shares you wish to acquire, together with cash
  or a certified cheque payable to the Corporation for the aggregate exercise
  price. A certificate for the Shares so acquired will be issued by the transfer
  agent as soon as practicable thereafter. The certificate for the Shares shall
  bear, in addition to any other legend required under applicable securities laws,
  the following legend required by the TSX Venture Exchange: 

  
     WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE
      AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE INCLUDING SHARES ISSUABLE UPON EXERCISE
      OF THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE
      TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE
      IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL [4 MONTHS
      AND 1 DAY AFTER DATE OF GRANT OF OPTIONS]. 

  

  

	Romarco Minerals Inc. 	 
	 	 
	 	 
	 	 
	Authorized Signatory

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