Document:

QMAG-Newmont Subordinated Debt Facility

 Exhibit 10(aa) 
  
 

 
  
 QMAG-Newmont Subordinated Debt Facility

  
 ACN 111 279 906 Ltd (to be renamed QMAG Ltd) 
 ABN 68 111 279 906 
  
 QMCH Pty Ltd 
 ABN 27 111 293 433 
  
 Newmont Finance Limited 
 ABN 20 062 291 285 
  
 If you have any questions about the details of this document 
 please contact Peter Wilkes on + 61 8 9426 8000 
  
 Clayton Utz Lawyers 
 QV1 250 St Georges Terrace Perth WA 6000 Australia

 GPO Box P1214 Perth WA 6844 
 T + 61 8 9426 8000 F + 61 8 9481
3095 
  
 www.claytonutz.com 
  
 Our reference PJW:80013608 

 Table of Contents 
  

							
	1.	  	Interpretation	  	1
	 	  	1.1	  	Definitions	  	1
	 	  	1.2	  	References to certain general terms	  	10
	 	  	1.3	  	Number	  	10
	 	  	1.4	  	Headings	  	10
			
	2.	  	The Facility and Facility Limits	  	11
			
	3.	  	Using the Facility	  	11
				
	 	  	3.1	  	Drawing down	  	11
	 	  	3.2	  	Requesting the Drawing	  	11
	 	  	3.3	  	Effect of a Drawdown Notice	  	11
	 	  	3.4	  	Conditions to the Drawing	  	11
	 	  	3.5	  	Benefit of conditions	  	11
			
	4.	  	Interest	  	12
			
	5.	  	Amortisation	  	12
				
	 	  	5.1	  	Mandatory principal repayments	  	12
	 	  	5.2	  	Reduction of Facility Limit	  	12
			
	6.	  	Repaying and prepaying	  	12
				
	 	  	6.1	  	Repayment	  	12
	 	  	6.2	  	Prepayment	  	12
	 	  	6.3	  	Prepayment and the Facility Limit	  	12
			
	7.	  	Payments from Available Funds	  	13
				
	 	  	7.1	  	Payments	  	13
	 	  	7.2	  	Dividends	  	14
			
	8.	  	Payments	  	14
				
	 	  	8.1	  	Manner of payment	  	14
	 	  	8.2	  	Currency of payment	  	14
			
	9.	  	Withholding tax	  	15
				
	 	  	9.1	  	Payments by Company	  	15
			
	10.	  	Increased costs	  	15
				
	 	  	10.1	  	Compensation	  	15
	 	  	10.2	  	Possible minimisation	  	15
			
	11.	  	Illegality or impossibility	  	16
				
	 	  	11.1	  	Financier’s right to suspend or cancel	  	16
	 	  	11.2	  	Extent and duration	  	16
	 	  	11.3	  	Notice requiring prepayment	  	16
			
	12.	  	Representations and warranties	  	16
				
	 	  	12.1	  	Representations and warranties	  	16
	 	  	12.2	  	Repetition of representations and warranties	  	19
	 	  	12.3	  	Reliance	  	19
			
	13.	  	Undertakings	  	19

  

 i 

							
	 	  	13.1	  	General undertakings	  	19
	 	  	13.2	  	Information undertakings	  	21
	 	  	13.3	  	Financial Indebtedness undertaking	  	22
	 	  	13.4	  	Negative pledge	  	22
			
	14.	  	Default	  	23
				
	 	  	14.1	  	Events of Default	  	23
	 	  	14.2	  	Consequences of default	  	25
			
	15.	  	Costs and indemnities	  	25
				
	 	  	15.1	  	Indemnity	  	25
	 	  	15.2	  	Items included in loss, liability and Costs	  	25
	 	  	15.3	  	Currency conversion on judgment debt	  	25
			
	16.	  	Application of payments	  	26
			
	17.	  	Dealing with interests	  	26
				
	 	  	17.1	  	No dealing by Company	  	26
	 	  	17.2	  	Dealings by Financier	  	26
	 	  	17.3	  	Release	  	26
			
	18.	  	Financial Model and Development Plan	  	26
				
	 	  	18.1	  	Provision of information	  	26
	 	  	18.2	  	Preparation of Development Plan	  	26
	 	  	18.3	  	Updating of the Development Plan and Financial Model	  	27
	 	  	18.4	  	Considerations in updating Financial Model	  	27
			
	19.	  	Guarantee and indemnity	  	27
				
	 	  	19.1	  	Consideration	  	27
	 	  	19.2	  	Guarantee	  	27
	 	  	19.3	  	Nature of guarantees	  	27
	 	  	19.4	  	Indemnity	  	27
	 	  	19.5	  	Reinstatement of rights	  	28
	 	  	19.6	  	Rights of the Finance Parties are protected	  	28
	 	  	19.7	  	No merger	  	29
	 	  	19.8	  	Guarantor’s rights are suspended	  	29
	 	  	19.9	  	Guarantor’s right of proof limited	  	29
	 	  	19.10	  	No set-off against assignees	  	29
	 	  	19.11	  	Suspense account	  	29
	 	  	19.12	  	Right to prove	  	29
			
	20.	  	Notices	  	30
				
	 	  	20.1	  	Form	  	30
	 	  	20.2	  	Delivery	  	30
	 	  	20.3	  	When effective	  	30
	 	  	20.4	  	Receipt - postal	  	30
	 	  	20.5	  	Receipt - fax	  	30
	 	  	20.6	  	Receipt - general	  	30
	 	  	20.7	  	Waiver of notice period	  	30
			
	21.	  	General	  	31
				
	 	  	21.1	  	Application to Transaction Documents	  	31
	 	  	21.2	  	Consents	  	31

  

 ii 

							
	 	  	21.3	  	Certificates	  	31
	 	  	21.4	  	Set-off	  	31
	 	  	21.5	  	Discretion in exercising rights	  	31
	 	  	21.6	  	Partial exercising of rights	  	31
	 	  	21.7	  	No liability for loss	  	31
	 	  	21.8	  	Conflict of interest	  	31
	 	  	21.9	  	Remedies cumulative	  	31
	 	  	21.10	  	Indemnities	  	31
	 	  	21.11	  	Rights and obligations are unaffected	  	32
	 	  	21.12	  	Inconsistent law	  	32
	 	  	21.13	  	Supervening legislation	  	32
	 	  	21.14	  	Variation and waiver	  	32
	 	  	21.15	  	Confidentiality	  	32
	 	  	21.16	  	Further steps	  	32
	 	  	21.17	  	Counterparts	  	32
	 	  	21.18	  	Governing law	  	32
	 	  	21.19	  	Serving documents	  	33
	 	  	21.20	  	Code of Banking Practice	  	33
		
	Schedule 1 - Conditions precedent (clause 3.4)	  	34
		
	Schedule 2 - Drawdown Notice (clause 3)	  	37
		
	Schedule 3 - Preliminary Development Plan	  	38

  

 iii 

 Agreement made at Brisbane on 29 November 2004 
  

			
	Parties	  	 ACN 111 279 906 Ltd (to be renamed QMAG Ltd) ABN 68 111 279
 906 of Ground Floor 76 Kings Park Road, West Perth, Western Australia
 (“Company”)

	 	  	 QMCH Pty Ltd ABN 27 111 293 433 of Ground Floor 76 Kings Park
 Road, West Perth, Western Australia, (“QMCH”)
 (“Guarantor”)

	 	  	 Newmont Finance Limited ABN 20 062 291 285 of 100 Hutt Street,
 Adelaide, South Australia (“Financier”)

  

	1.	Interpretation 

  

	1.1	Definitions 

  
 These meanings apply unless the contrary intention appears: 
  
 Accountable Taxes means any Taxes imposed by a Relevant Country other than those which would not be required to be deducted by the Company if the
Financier provided the Company with any of its name, address, registration number or similar details or any relevant tax exemption or similar details. 
  
 Acquisition means the completion of the acquisition of the Project including satisfying all of the conditions to completion in accordance with the
Sale and Purchase Agreement. 
  
 Acquisition Facility
means the cash advance acquisition facility granted by the Senior Financier under the Senior Financier Facility Agreement. 
  
 Acquisition Facility Commitment has the meaning ascribed to that term in the Senior Financier Facility Agreement. 
  
 AMC means Australian Magnesium Corporation (ABN 51 010 441 666).

  
 Amount Owing means the total of all amounts which are
then due for payment, or which will or may become due for payment, in connection with any Transaction Document (including transactions in connection with them) to the Financier. 
  
 Approved Capex means all sustaining capital expenditure on the Project incurred and paid by a Project Party in
accordance with the Development Plan and Financial Model or as otherwise approved by the Company and the Senior Financier, but excluding Approved Project Costs and Operating Costs. 
  
 Approved Project Costs means the capital costs of planning, design, construction, development and commissioning of
the Approved Projects in accordance with the Financial Model and the Development Plan or as otherwise approved by the Company and Senior Financier. 
  
 Approved Projects means any combination of the following: 
  

	 	(a)	relocating and/or upgrading the processing equipment at KG2; and 

  

	 	(b)	purchase and construction of a new rotary kiln primarily used to produce a new single-burn magnesia product; and 

  

	 	(c)	acquisition of the Cement Australia plant; and 

  

	 	(d)	capital improvements to the Cement Australia plant (whether owned or to facilitate treatment of multiple streams on a tolling basis); and 

  

	 	(e)	purchase of the Yaamba Tenements; and 

  

	 	(f)	modifications to screening arrangements together with an alternate trucking fleet; and 

  

	 	(g)	relocating and/or upgrading the processing equipment at KG1; and 

  

	 	(h)	improvements to the Parkhurst processing facilities to facilitate segregation of product streams; and 

	 	(i)	such other projects approved by the Company and the Senior Financier. 

  
 Approved Purpose means applying the Drawing: 
  

	 	(a)	to fund part of the Acquisition of the Project; and 

  

	 	(b)	to fund part of the repayment of the Interim Working Capital Debt; and 

  

	 	(c)	to fund the Approved Capex and Approved Project Costs. 

  
 Assumptions in relation to the Financial Model, means the economic and technical assumptions (including assumptions relating to mining rates,
throughput, account balances, escalation factors, discount rates, interest rates, inflation rates and Taxes) necessary to run the Financial Model. 
  
 Authorisation means: 
  

	 	(a)	any consent, authorisation, registration, filing, agreement, notarisation, certificate, permission, licence, approval, authority or exemption (including, without limitation, the
Tenements) from, by or with a governmental agency; or 

  

	 	(b)	in relation to anything which will be prohibited or restricted in whole or part by law if a governmental agency intervenes or acts in any way within a specified period after
lodgement, filing, registration or notification, the expiry of such period without such intervention or action. 

  
 Authorised Officer means: 
  

	 	(a)	in the case of the Financier, a director or secretary, or any other person nominated by the Financier as an Authorised Officer for the purposes of the Transaction Documents; and

  

	 	(b)	in the case of the Company, a person appointed by the Company to act as an Authorised Officer under the Transaction Documents to which it is a party. 

  
 Available Funds means on a Calculation Date the total of all cash
funds available to the Company derived from: 
  

	 	(a)	all revenue received from the sale of magnesite and magnesium products; 

  

	 	(b)	any amounts received by the Company in respect of the sale or disposal of all or any other assets; 

  

	 	(c)	drawings under the Senior Financier Facility Agreement, the Sponsor Subordinated Facility Agreement, and this Agreement; 

  

	 	(d)	moneys received under any Hedge Contracts; 

  

	 	(e)	all proceeds of insurance; 

  

	 	(f)	any amount received by way of damages, liquidated or otherwise; and 

  

	 	(g)	interest received on any bank accounts of the Company. 

  
 Bill has the meaning it has in the Bills of Exchange Act 1909 (Cwlth) and a reference to the drawing, acceptance or endorsement of, or other
dealing with, a Bill is to be interpreted in accordance with that Act. 
  
 Business Day means a day on which banks are open for general banking business in Adelaide, Sydney and Brisbane (not being a Saturday, Sunday or public holiday in that place). 
  
 Calculation Date means 31 March, 30 June, 30 September and 31
December in each year or if that date is not a Business Day then the next succeeding Business Day (unless that date falls in the following month, in which case the Calculation Date is the previous Business Day). 
  
 Company means ACN 111 279 906 Ltd, ABN 68 111 279 906 (to be renamed
QMAG Ltd). 
  
 Consolidated Group means either a
“consolidated group” or “MEC group” as defined in Division 721 and section 995 of the Tax Act. 
  
 Contested Tax means a Tax payable by a person where the person: 
  

	 	(a)	is contesting in good faith its liability to pay that Tax; and 

  

 2 

	 	(b)	is not required by applicable law to pay that Tax prior to contesting its liability to pay that Tax; and 

  
 has set aside sufficient reserves for that Tax in accordance with approved accounting standards and, if not inconsistent
with those approved accounting standards, generally accepted principles and practices in Australia consistently applied by a body corporate or as between bodies corporate and over time. 
  
 Control of a corporation includes the direct or indirect power to directly or indirectly: 
  

	 	(a)	direct the management or policies of the corporation; or 

  

	 	(b)	control the membership of the board of directors, 

  
 whether or not the power has statutory, legal or equitable force or is based on statutory, legal or equitable rights and whether or not it arises by means
of trusts, agreements, arrangements, understandings, practices, the ownership of any interest in shares or stock of the corporation or otherwise. 
  
 Controller has the meaning it has in the Corporations Act. 
  
 Costs includes costs, charges and expenses, including those reasonably incurred in connection with advisers.

  
 Deed of Security means the deed entitled (“QMAG
Deed of Security”) dated on or about the date of this agreement between each Obligor and the Security Trustee. 
  
 Development Plan means the plan to be compiled by the Company in relation to the Project and approved by the Senior Financier in accordance with
the Senior Financier Facility Agreement, which will be based upon and consistent with the Preliminary Development Plan (unless otherwise agreed by the Senior Financier and the Company), setting out the scope and guidelines under which the Project
will be developed and operated and initialled by the Senior Financier for the purposes of identification, as that plan may be amended, varied or updated from time to time. 
  
 Reference to the “Development Plan” in clauses 12 and 13 and in Schedule 1 and in the definitions used in those
clauses and that Schedule are references to the Preliminary Development Plan until the Development Plan has been approved by the Senior Financier and the Company. 
  
 Directive means: 
  

	 	(a)	a law; or 

  

	 	(b)	a treaty, an official directive, request, guideline or policy (whether or not having the force of law) with which responsible financiers generally comply in carrying on their
business. 

  
 Drawdown Date means the date
on which the Drawing is made in accordance with the Drawdown Notice. 
  
 Drawdown Notice means a notice given in accordance with clause 3.2 (“Requesting the Drawing”). 
  
 Drawing means the provision of credit to the Company by means of a single cash advance under the Facility or, if the context so requires, the
outstanding principal amount of the drawing. 
  
 Encumbrance means any: 
  

	 	(a)	security for the payment of money or performance of obligations, including a mortgage, charge, lien, pledge, trust, power or title retention or flawed deposit arrangement; or

  

	 	(b)	right, interest or arrangement which has the effect of giving another person a preference, priority or advantage over creditors including any right of set-off; or

  

	 	(c)	right that a person (other than the owner) has to remove something from land (known as a profit à prendre), easement, public right of way, restrictive or positive covenant,
lease, or licence to use or occupy; or 

  

 3 

	 	(d)	third party right or interest or any right arising as a consequence of the enforcement of a judgment, 

  
 or any agreement to create any of them or allow them to exist. 
  
 Environment includes but is not limited to: 
  

	 	(a)	the air (including the air within buildings and the air within other natural or man-made structures above or below ground); 

  

	 	(b)	ground water, surface water, coastal or inland waters, acquifers, pipes, drains and sewers; 

  

	 	(c)	land, including buildings and other structures in, on or under it and any soil and anything below the surface of the land; and 

  

	 	(d)	human health or safety, living organisms and ecological systems. 

  
 Environmental Approval means any Authorisation of any kind relating to the Environment required by any governmental agency or under any
Environmental Law in relation to the carrying on of the Project. 
  
 Environmental Law means a law relating to the Environment, including, without limitation, a law relating to water; water catchment; pollution of air, soil, ground water or water; noise; soil chemicals; pesticides; hazardous
substances; Environmental Contaminants; the ozone layer; waste; dangerous goods; public health; occupational health and safety; environmental hazards; any aspect of protection of the Environment, or the enforcement or administration of any such law
(whether that law arises under statute or common law or pursuant to any permit, licence, approval, notice, decree, order or directive of any governmental agency or otherwise). 
  
 Environmental Liability means any of the following liabilities which arise, directly or indirectly, from or in
relation to the Project: 
  

	 	(a)	all costs and expenses associated with complying with the requirements of any governmental agency under an Environmental Law or in connection with an Environmental Approval; and

  

	 	(b)	any compensation or other moneys that a governmental agency requires to be paid to any person under an Environmental Law or an Environmental Approval; and 

 

	 	(c)	any fines or penalties incurred under an Environmental Law or Environmental Approval; and 

  

	 	(d)	all costs and expenses incurred in complying with or avoiding a contravention of an Environmental Law or Environmental Approval; and 

  

	 	(e)	all losses, costs and expenses (including, without limitation, all legal and consultancy costs) which are incurred as a result of any contravention or alleged contravention of an
Environmental Law or Environmental Approval; and 

  

	 	(f)	all other claims, demands, suits, proceedings, causes of action, losses (including consequential losses) damages, costs and expenses arising under an Environmental Law or
Environmental Approval and legal or consulting fees and interest. 

  
 Environmental Contaminants means all pollutants or contaminants (including any chemical, biological, industrial, radioactive, dangerous, toxic or hazardous substance, water or residue, whether in solid or
liquid form or a gas or vapour) and any genetically modified organisms. 
  
 Event of Default means an event so described in clause 14 (“Default”). 
  
 Expansion Facility means the cash advance expansion facility granted under the Senior Financier Facility Agreement. 
  
 Facility means the loan facility made available to the Company by the
Financier in accordance with this agreement. 
  

 4 

 Facility Limit means A$30,000,000 as reduced by the total of all prepayments and repayments in
accordance with this agreement. 
  
 Finance Party means
each of the Financier and the Security Trustee. 
  
 Financial
Close means the date on which all of the conditions precedent referred to in clause 3.4 (“Conditions to the Drawing”) have been satisfied or waived in accordance with this agreement. 
  
 Financial Indebtedness has the meaning ascribed to that term in the
Senior Financier Facility Agreement. 
  
 Financial Model
means the financial projections as to the performance of the Project over the period that it remains cash flow positive, comprising a computer printout and related data, initially prepared prior to the date of this agreement by the Company and
initialled by an Authorised Officer of each of the Company and the Senior Financier, as subsequently updated in accordance with clause 18.3 (“Updating of the Development Plan and Financial Model”). 
  
 Financial Ratio Test has the meaning given to that term in the Senior
Financier Facility Agreement. 
  
 Financial Statements
means: 
  

	 	(a)	a profit and loss statement; and 

  

	 	(b)	a balance sheet; and 

  

	 	(c)	a statement of cash flows, 

  
 together with any notes to those documents and a directors’ declaration as required under the Corporations Act and any other information necessary to
give a true and fair view. 
  
 Financier means Newmont
Finance Limited ABN 20 062 291 285. 
  
 Guarantee means
the guarantee and indemnity in clause 19 (“Guarantee and Indemnity”). 
  
 Guaranteed Money means, in respect of the Guarantor, at any time, all amounts then due for payment or which will or may become due for payment or which remain unpaid by the Company to: 
  

	 	(a)	the Security Trustee (for its own account or for the account of the Financier); or 

  

	 	(b)	the Financier, 

  
 in connection with the Transaction Documents (including transactions in connection with them). 
  
 Without limiting this definition, it includes amounts then due for payment
or which will or may become due for payment or which remain unpaid to the Security Trustee or the Financier as the case may be in its capacity as an assignee because it has taken an assignment of a Transaction Document in accordance with this
agreement, and whether or not: 
  

	 	(a)	the Guarantor was aware of the assignment or consented to it; or 

  

	 	(b)	the assigned obligation was secured before the assignment. 

  
 Guarantor means QMCH. 
  
 Head Company has the same meaning as in section 995-1 of the Tax Act. 
  
 Hedge Transactions means: 
  

	 	(a)	transactions that hedge the Company against changes in exchange rates; and 

  

	 	(b)	transactions that are interest rate swaps or other hedges against changes in interest rates; and 

  

	 	(c)	any other derivative transactions that otherwise hedge against risks applicable to the Project Parties. 

  
 Hedging Contract means an ISDA Master Agreement entered into between the Company or any other Project Party, and a
bank or financial institution and all Hedge Transactions under it. 
  

 5 

 A person is Insolvent if: 
  

	 	(a)	it is (or states that it is) an insolvent under administration or insolvent (each as defined in the Corporations Act); or 

  

	 	(b)	it has a Controller appointed, is in liquidation, in provisional liquidation, under administration or wound up or has had a Receiver appointed to any part of its property; or

  

	 	(c)	it is subject to any arrangement, assignment, moratorium or composition, protected from creditors under any statute or dissolved (in each case, other than to carry out a
reconstruction or amalgamation while solvent on terms approved by the Financier); or 

  

	 	(d)	an application or order has been made (and, in the case of an application, it is not stayed, withdrawn or dismissed within 30 days), resolution passed, proposal put forward, or any
other action taken, in each case in connection with that person, which is preparatory to or could result in any of (a), (b) or (c) above; or 

  

	 	(e)	it is taken (under section 459(F)(1) of the Corporations Act) to have failed to comply with a statutory demand; or 

  

	 	(f)	it is the subject of an event described in section 459(C)(2)(b) or section 585 of the Corporations Act; or 

  

	 	(g)	it is otherwise unable to pay its debts when they fall due; or 

  

	 	(h)	something having a substantially similar effect to (a) to (g) happens in connection with that person under the law of any jurisdiction, 

  
 and Insolvency has an equivalent meaning. 
  
 Interest Payment Date means each Calculation Date. 
  
 Interest Period means the period from the Drawdown Date to but
excluding the first Calculation Date to occur after the Drawdown Date and each successive period from and including the Calculation Date to but excluding the next Calculation Date. 
  
 Interim Working Capital Debt means an interim working capital loan provided to the Company by the Sponsor and the
Financier (in equal proportions) prior to the date of Acquisition. 
  
 Interest Rate means one percent (1%) per annum. 
  
 Material Adverse Effect means a material adverse effect on: 
  

	 	(a)	the Company’s ability to comply with its obligations under any Transaction Document; or 

  

	 	(b)	the value of all or substantially all of the property secured by all the Security. 

  
 Maturity Date means the 10th anniversary of the Drawdown Date, but if that is not a Business Day, then the preceding
Business Day. 
  
 Meridian Security means the deed
entitled “Senior Deed of Charge” dated on or about the date of this agreement between Rocky Leasing Pty Limited and the Security Trustee. 
  
 Mining Act means the Mineral Resources Act 1989 (Qld). 
  
 Obligors means the Company and the Guarantor. 
  
 Operating Costs means all expenses (including recurrent maintenance and replacement expenditure of a routine nature) incurred and paid by a Project
Party in the ordinary course of business in connection with the day-to-day activities of the Project. 
  
 Permitted Encumbrance means: 
  

	 	(a)	an Encumbrance created or existing with the consent of the Financier; or 

  

	 	(b)	an Encumbrance granted under a Transaction Document; or 

  

	 	(c)	deposits or pledges to secure contracts in the ordinary course of business; or 

  

	 	(d)	any Encumbrance which existed over any asset prior to its acquisition provided that the amount secured is not increased; or 

  

 6 

	 	(e)	any Encumbrance arising by operation of law; or 

  

	 	(f)	a lien arising by operation of law which secures money owing in respect of goods or services provided in the ordinary course of business; or 

  

	 	(g)	a pledge created in the ordinary course of business to secure the purchase price of goods or trade finance on usual terms from a supplier or the Company’s financier; or

  

	 	(h)	a right of title retention in connection with the acquisition of goods or services in the ordinary course of business, on the supplier’s usual terms of sale and where there is
no default in connection with the relevant acquisition; or 

  

	 	(i)	any Encumbrance created under any order of attachment, distraint or similar legal process arising in connection with current proceedings if their execution or enforcement is
effectively stayed and the claims to which they relate are being diligently contested in good faith by appropriate proceedings and adequate provision has been made for adverse judgments or orders; or 

  

	 	(j)	any rights conferred by the lodging of security bonds or deposits in connection with any mining operation including exploration, prospecting or mining tenements (including ancillary
licences) and infrastructure arrangements owned, provided to or applied for by the Company or any of its Subsidiaries; or 

  

	 	(k)	any Encumbrance which is created as security for any borrowing from bankers or others for the purpose of financing any export or import trading contract in respect of which any part
of the price receivable or payable is receivable or payable within 180 days of the date of shipment or is guaranteed or insured by any institution carrying on an export or import credit guarantee or insurance business, provided that such borrowings
do not exceed the sum so guaranteed or insured, and provided further that any security is restricted to the items sold or purchased under such contract. 

  
 Preliminary Development Plan means the preliminary plan compiled by the Company setting out in overview the proposed
scope and guidelines under which the Project will be developed and operated, which plan has been approved by the Senior Financier and is comprised of the materials provided to the Senior Financier prior to the date of this Agreement and which are
described in Schedule 5, and, as that plan may be amended, varied or updated from time to time by agreement of the Senior Financier and the Company. 
  
 Priority Deed means the agreement entitled “QMAG Priority Deed” dated on or about the date of this deed between the Security Trustee, MAG
Rentals Pty Ltd (ACN 077 306 702), the Guarantor, Rocky Leasing Pty Ltd (ACN 077 306 757), QMCK, QMCR, Kingston Factors Pty Ltd (ACN 050 636 014), and Meridian International Capital Ltd (ACN 050 290 974).. 
  
 Project means the Queensland Magnesia Project located in central
Queensland, north of Rockhampton, comprising the construction, development and operation by the Company of the Kunwarara mining operation and Parkhurst processing facilities for the purpose of producing magnesite and magnesia products in commercial
quantities. 
  
 Project Area means: 
  

	 	(a)	the areas where Project Party is entitled to conduct mining operations in accordance with the Tenements; and 

  

	 	(b)	any freehold, leasehold and other land in respect of which a Project Party has: 

  

	 	(i)	an interest; or 

  

	 	(ii)	an easement; or 

  

	 	(iii)	a right of access to or entry upon, 

  
 for the purposes of the development and operation of the Tenements. 
  

 7 

 Project Assets means all the right, title and interest both present and future of the Project
Parties which is attributable to the Project and includes all the right, title and interest both present and future of the Project Parties in, to, under or derived from: 
  

	 	(a)	the Tenements, including any title to or interest in the Tenements now or at a later time held by a Project Party; and 

  

	 	(b)	magnesite or magnesia products; and 

  

	 	(c)	all buildings, improvements, structures, systems, fixtures, plant, machinery, tools and other personal property at any time acquired, leased or held and used or intended for use in
connection with or incidental to the mining, extraction and treating, of magnesite and the production of magnesia products, and all associated facilities and infrastructure; and 

  

	 	(d)	the Project Area, including any title to or interest in the land included in the Project Area now or at a later time held by a Project Party; and 

  

	 	(e)	every contract for the use by any third party of any of the assets and property included in the Project; and 

  

	 	(f)	Authorisations in relation to the Project; and 

  

	 	(g)	any other contract, agreement, permit, lease, licence, consent, easement, right of way and other rights or interests in land, which relates to the construction, operation or
maintenance of the Project, or to the mining, production, transportation, storage, treatment or marketing of magnesite and magnesia products; and 

  

	 	(h)	all exploration and mining information, documents, maps, reports, records, studies and other written data, including all data stored on magnetic tapes, disks or diskettes or any
other computer storage media, relating to geological and geophysical work, feasibility studies and other operations conducted with respect to the Project Area. 

  
 Project Party means the Company, the Guarantor, QMCK, QMCR and QMPL. 
  
 Project Life Period means the period commencing prior to the date of
this agreement and ending at the end of the economic life of the Project, as identified in the most recent Financial Model. 
  
 QMCK means QMC Kuwarara Pty Ltd (ABN 38 058 918 175). 
  
 QMCR means QMC (Refmag) Pty Ltd (ABN 57 003 858 099). 
  
 QMPL means Queensland Magnesia Pty Ltd (ABN 43 010 823 588). 
  
 Receiver includes a receiver or receiver and manager. 
  
 Related Entity has the meaning it has in the Corporations Act. 
  
 Relevant Country means any country, or political sub-division of one
or more countries, or any federation or association of countries in which the Company is either incorporated or is resident or domiciled for any tax purpose or in which the Company carries on business or owns or leases property or from which, or
through which, any payment under a Transaction Document is made. 
  
 Sale and Purchase Agreement means the agreement entitled “Sale Agreement, QMAG Joint Venture and Associated Assets” dated on or about the date of this Agreement between AMC, the Company, the Project Parties, the Sponsor,
RCF Management L.L.C, Australian Magnesium Operations Ltd and QMC Investments Pty Ltd. 
  
 Secured Property has the meaning given to that term in the Deed of Security. 
  
 Security means - 
  

	 	(a)	the Deed of Security; 

  

	 	(b)	the Meridian Security; 

  

	 	(c)	the Guarantee; 

  

	 	(d)	the Shareholders Mortgage; and 

  

	 	(e)	any other document or Encumbrance collateral to any of them or which secures the Company’s obligations under a Transaction Document. 

  

 8 

 Security Provider means each person who gives a Security. 
  
 Security Trust Deed means the deed entitled “Security Trust Deed
- QMAG Security Trust” dated on or about the date of this agreement. 
  
 Security Trustee means the security trustee appointed pursuant to the terms of the Security Trust Deed from time to time. 
  
 Senior Financier means ABN AMRO Bank N.V. (Australian Branch) or its successor or permitted assignee or subsequent
successor or assignee. 
  
 Senior Financier Facility
Agreement means the agreement dated on or about the date of this agreement between the Senior Financier, the Security Trust, the Company and the Guarantor and such other agreement as replaces or is entered into in place of that agreement whether
pursuant to an assignment or as a result of any refinancing. 
  
 Shareholder Mortgage means the deed entitled “QMAG Project - Shareholder Mortgage” dated on or about the date of this agreement between the Sponsor, the Company and QMC Refmag Pty Ltd as mortgagors and the Security Trustee.

  
 Sponsor means Resource Capital Fund III L.P.

  
 Sponsor Subordinated Facility Agreement means the
agreement entitled “QMAG Sponsor Subordinated Debt Facility” dated on or about the date of this agreement between the Company, the Guarantor and the Sponsor. 
  
 Subordination Deed means the deed entitled “Subordination Deed” dated on or about the date of this
agreement between, among others, the Security Trustee, the Senior Financier, the Sponsor, the Financier and the Company. 
  
 Subsidiary of an entity means another entity which is a subsidiary of the first within the meaning of part 1.2 division 6 of the Corporations Act
or is a subsidiary of or otherwise controlled by the first within the meaning of any approved accounting standard. 
  
 Tax Act means the Income Tax Assessment Act 1936 (Cwlth) and the Income Assessment Act 1997 (Cwlth). 
  
 Taxes means taxes, levies, imposts, charges and duties (including
stamp and transaction duties) imposed by any authority together with any related interest, penalties, fines and expenses in connection with them, except if imposed on, or calculated having regard to, the net income of the Financier. 
  
 Tax Indemnity Deed means an agreement relating to the payment of the
Tax liabilities of a Consolidated Group. 
  
 Tenements
means all tenements now held or which are acquired in the future by the Company or any Project Party in relation to the Project including without limitation: 
  

	 	(a)	ML 5868, ML 5869, ML 5870, ML 80067, MDL 344 and MDL 256; and 

  

	 	(b)	any tenement issued in renewal or replacement of the tenement referred to above or upon a consolidation, subdivision or variation of that tenement. 

  
 Transaction Documents means: 
  

	 	(a)	this agreement; 

  

	 	(b)	the Sponsor Subordinated Facility Agreement; 

  

	 	(c)	the Senior Financier Facility Agreement; 

  

	 	(d)	each Security; 

  

	 	(e)	the Security Trust Deed; 

  

	 	(f)	the Subordination Deed; 

  

	 	(g)	the Priority Deed; and 

  

	 	(h)	any document which the Company acknowledges in writing to be a Transaction Document. 

  
 TSA means a tax sharing agreement of a type referred to in section 721-25 of the Tax Act. 
  

 9 

 Valid Tax Sharing Agreement means a TSA that complies with the requirements in section 721-25 of
the Tax Act, the Income Tax Regulations, the ATO Receivables Policy, and any other administrative policy or statement. 
  
 Working Capital Facility means the revolving cash advance facility granted under the Senior Financier Facility Agreement. 
  
 Working Capital Reserve Amount means A$3 million. 
  
 Yaamba Tenements means: 
  

	 	(a)	MDL’s 194 and 195; and 

  

	 	(b)	any tenement issued in renewal or replacement of the tenement referred to above or upon a consolidation, subdivision or variation of that tenement. 

  

	1.2	References to certain general terms 

  
 Unless the contrary intention appears, a reference in this agreement to: 
  

	 	(a)	a group of persons is a reference to any two or more of them jointly and to each of them individually; 

  

	 	(b)	an agreement, representation or warranty in favour of two or more persons is for the benefit of them jointly and each of them individually; 

  

	 	(c)	an agreement, representation or warranty by two or more persons binds them jointly and each of them individually; 

  

	 	(d)	anything (including an amount) is a reference to the whole and each part of it; 

  

	 	(e)	a document (including this agreement) includes any variation or replacement of it; 

  

	 	(f)	law means common law, principles of equity, and laws made by parliament (and laws made by parliament include State, Territory and Commonwealth laws and regulations and other
instruments under them, and consolidations, amendments, re-enactments or replacements of any of them); 

  

	 	(g)	an accounting term is a reference to that term as it is used in accounting standards under the Corporations Act, or, if not inconsistent with those standards, in accounting
principles and practices generally accepted in Australia; 

  

	 	(h)	Australian Dollars, dollars, $ or A$ is a reference to the lawful currency of Australia; 

  

	 	(i)	United States Dollars or US$ is a reference to the lawful currency of the United States of America. 

  

	 	(j)	a time of day is a reference to Brisbane time; 

  

	 	(k)	the word “person” includes an individual, a firm, a body corporate, an unincorporated association and an authority; 

  

	 	(l)	a particular person includes a reference to the person’s executors, administrators, successors, substitutes (including persons taking by novation) and assigns;

  

	 	(m)	the words “including”, “for example” or “such as” when introducing an example, do not limit the meaning of the words to which the example relates to
that example or examples of a similar kind; 

  

	 	(n)	the Corporations Act is a reference to the Corporations Act 2001 (Cwlth). 

  

	1.3	Number 

  
 The singular includes the plural and vice versa. 
  

	1.4	Headings 

  
 Headings (including those in brackets at the beginning of paragraphs) are for convenience only and do not affect the interpretation of this agreement.

  

 10 

	2.	The Facility and Facility Limits 

  
 The Financier agrees to provide Drawing to the Company under the Facility up to an aggregate principal amount equal to the Facility Limit, subject to the
terms of this agreement and in reliance on the representations and warranties contained in it. 
  

	3.	Using the Facility 

  

	3.1	Drawing down 

  
 The Company need not use the Facility. However, if the Company wants to use the Facility, it may do so by a single Drawing in an amount equal to the
Facility Limit. 
  

	3.2	Requesting the Drawing 

  
 If the Company wants to make the Drawing, it agrees to give notice to the Financier by 11am on the third Business Day before the day it wants the Drawing
which notice must be in or substantially in the form of schedule 2 and: 
  

	 	(a)	be signed by an Authorised Officer of the Company; and 

  

	 	(b)	specify the proposed Drawdown Date - (which must be a Business Day); and 

  

	 	(c)	shall contain a representation and warranty by the Company that the representations and warranties by it set out in clause 12 (“Representations and warranties”) are
correct and not misleading in any material respect on the date of the Drawdown Notice and that each such representation and warranty made by it will be correct and not misleading in any material respect on the Drawdown Date.

  

	3.3	Effect of a Drawdown Notice 

  
 A Drawdown Notice is effective when the Financier actually receives it in legible form. An effective Drawdown Notice is irrevocable. 
  

	3.4	Conditions to the Drawing 

  

	 	(a)	The Company agrees not to request the Drawing until the Financier has received every item listed in Schedule 1 (“Conditions precedent”) in form and substance satisfactory
to the Financier. Any item required to be certified must be certified by a secretary or a director of the Company, or Security Provider (as applicable) as being true and complete as at a date no earlier than the date of this agreement. The Financier
agrees to notify the Company as soon as practicable after the Financier receives the final item. 

  

	 	(b)	The Financier need not provide the Drawing unless: 

	 	(i)	the Financier has received the Drawdown Notice in respect of it; and 

  

	 	(ii)	the Financier is satisfied that the representations and warranties in clause 12 (“Representations and warranties”) and in the Drawdown Notice and the statements in the
Drawdown Notice are correct and not misleading at the date of the Drawdown Notice and at the date the accommodation is provided; and 

  

	 	(iii)	the Financier is satisfied that no Event of Default continues unremedied, or would result from the accommodation being provided; 

  

	3.5	Benefit of conditions 

  
 Each condition to the Drawing is for the sole benefit of the Financier and may be waived by it. 
  

 11 

	4.	Interest 

  
 The Company agrees to pay interest on the Drawing for each of its Interest Periods at the applicable Interest Rate. Interest: 
  

	 	(a)	accrues daily from and including the first day of an Interest Period to and including the last day of the Interest Period; and 

  

	 	(b)	is payable on each Interest Payment Date subject to clause 7; and 

  

	 	(c)	is calculated on actual days elapsed and a year of 365 days. 

  
 Where on an Interest Payment Date there are not sufficient Available Funds to pay the interest due on that date in accordance with clause 7 then such
interest will continue to accrue and be payable in accordance with this clause on the next Interest Payment Date on which funds are available in accordance with clause 7 to make such payment. 
  

	5.	Amortisation 

  

	5.1	Mandatory principal repayments 

  
 To the extent that on a Calculation Date (occurring after all Financial Indebtedness owing under the Sponsor Subordinated Facility Agreement has been
repaid in full) there are: 
  

	 	(a)	Available Funds in excess of the Working Capital Reserve Amount; and 

  

	 	(b)	an amount equal to the next 12 months budgeted Approved Capex (after making all other payments provided for in accordance with clauses 7.1(a) to 7.1(k)), 

 
 the Company must apply those funds by way of a principal repayment under
the Facility. 
  

	5.2	Reduction of Facility Limit 

  
 The Facility Limit is reduced by amounts repaid under clause 5.1 
  

	6.	Repaying and prepaying 

  

	6.1	Repayment 

  
 Notwithstanding clause 5.1, the Company agrees to repay the Drawing on the Maturity Date. 
  

	6.2	Prepayment 

  
 Without limiting its obligations under clause 5.1 and subject to clause 7.2, the Company may prepay the Drawing, as follows: 
  

	 	(a)	the prepayment amount must be at least A$100,000 and a whole multiple of A$100,000; and 

  

	 	(b)	the Company must notify the proposed prepayment to the Financier by 11am on the fourth Business Day before the prepayment (Once given, a notice of prepayment is irrevocable and the
Company is obliged to prepay in accordance with the notice). 

  

	6.3	Prepayment and the Facility Limit 

  
 The Facility Limit in respect of the Facility (in addition to any repayments made under clause 5.1 (“Mandatory principal repayments”)), is
reduced by amounts prepaid. 
  

 12 

	7.	Payments from Available Funds 

  

	7.1	Payments 

  
 Subject to clause 7.2, the Company undertakes to apply Available Funds for the following purposes and in the following order of priority and not
otherwise: 
  

	 	(a)	first, in or towards paying or meeting: 

  

	 	(i)	any amounts which constitute Operating Costs; or 

  

	 	(ii)	any amounts which constitute Approved Capex, 

 properly
incurred, as and when those amounts fall due for payment; 
  

	 	(b)	second, in or towards paying or meeting any fees, Taxes or royalties, and interest thereon, paid by the Company or a Subsidiary to the Commonwealth or Queensland Governments or to
any governmental agency in respect of the Project (whether currently payable or levied or imposed after the date of this agreement) as and when those amounts fall due for payment; and 

  

	 	(c)	third, in or towards paying or meeting Approved Project Costs properly incurred, as and when those amounts fall due for payment; and 

  

	 	(d)	fourth, on each date for payment by it under any Hedging Contract in payment of amounts due on that date under that Hedging Contract; and 

  

	 	(e)	fifth, on each date for payment by it of fees, interest and other amounts, (except for principal) payable under the Senior Financier Facility Agreement including any amounts
required to be set aside or paid into any other accounts for reserve liquidity purposes or otherwise; and 

  

	 	(f)	sixth, in making voluntary principal prepayments in respect of the Working Capital Facility in accordance with the Senior Financier Facility Agreement; and 

 

	 	(g)	seventh, in making principal repayments in respect of the Acquisition Facility in accordance with the Senior Financier Facility Agreement; and 

  
 in each of the following cases, provided that the Company has Available
Funds excess to the Working Capital Reserve Amount then in payment of the following amounts, 
  

	 	(h)	eighth, from the first date that the Acquisition Facility Commitment becomes zero and the Company satisfying the Financial Ratio Test for so long as it is bound by it under the
Senior Financier Facility Agreement: 

  

	 	(i)	to the extent that the Company makes a principal repayment or payment of interest under the Sponsor Subordinated Facility Agreement, in payment of that amount (“Subordinated
Payment”); and 

  

	 	(ii)	on the same date and in the same amount as the Subordinated Payment (if any) - in making principal repayments under the Expansion Facility, 

  
 provided that if any interest is due and owing to the Financier under
clause 4 then the Company confirms that it has been directed by the Sponsor to, and will, apply 50% of the Subordinated Payment (or such lesser amount as is necessary) towards payment of interest due in accordance with clause 4; and 
  

	 	(i)	ninth, from the first date that - 

  

	 	(i)	the total amount owing under the Expansion Facility becomes zero, in making principal prepayments or repayments or payments of interest under the Sponsor Subordinated Facility
Agreement provided that if any interest is due and owing to the Financier under clause 4 then the Company confirms that it has been directed by the Sponsor to, and will, apply 50% of such payment (or such lesser amount as is necessary) towards
payment of interest due in accordance with clause 4; or 

  

 13 

	 	(ii)	the total amount owing under the Sponsor Subordinated Facility Agreement becomes zero, in making principal prepayments or repayments under the Expansion Facility in accordance with
the Senior Financier Facility Agreement; and 

  

	 	(j)	tenth, in making payments of interest and expenses when due in accordance with clause 4 of this Agreement; and 

  
 in the following case, provided that the Company has Available Funds in
excess of the Working Capital Reserve Amount and an amount equal to the next 12 months budgeted Approved Capex, 
  

	 	(k)	eleventh, from the first date that all amounts owing under the Sponsor Subordinated Facility Agreement and Senior Financier Facility Agreement have been repaid in full, on each
Calculation Date in making payment of any amount in respect of its principal repayment obligations under clause 5 this Agreement. 

  

	7.2	Dividends 

  
 Subject to the terms of the Senior Financier Facility Agreement the Company may at any time pay a dividend or other distribution (in its discretion) to
shareholders of the Company in their capacity as shareholders, provided that at the same time as making that payment the Company pays an equivalent amount by way of principal prepayments in respect of the Facility in accordance with clause 6.

  

	8.	Payments 

  

	8.1	Manner of payment 

  
 Unless a provision of a Transaction Document expressly states otherwise, the Company agrees to make payments (including by way of reimbursement) under
each Transaction Document: 
  

	 	(a)	on the due date (or, if that is not a Business Day, on the next Business Day unless that day falls in the following month or after the Maturity Date, in which case, on the previous
Business Day); and 

  

	 	(b)	not later than 10am in the place for payment; and 

  

	 	(c)	in Australian Dollars in immediately available funds; and 

  

	 	(d)	in full without set-off or counterclaim and without any deduction in respect of Taxes unless prohibited by law; and 

  

	 	(e)	to the Financier by payment into the account nominated by the Financier, or by payment as the Financier otherwise directs. 

  
 If the Financier directs the Company to pay a particular party or in a
particular manner, the Company is taken to have satisfied its obligation to the Financier by paying in accordance with the direction. 
  
 The Company satisfies a payment obligation only when the Financier or the person to whom it has directed payment receives the amount. 
  

	8.2	Currency of payment 

  
 The Company waives any right it has in any jurisdiction to pay an amount other than in the currency in which it is due. However, if the Financier receives
an amount in a currency other than that in which it is due: 
  

	 	(a)	it may convert the amount received into the due currency (even though it may be necessary to convert through a third currency to do so) on the day and at such rates (including spot
rate, same day value rate or value tomorrow rate) as it reasonably considers appropriate. It may deduct its usual Costs in connection with the conversion; and 

  

 14 

	 	(b)	the Company satisfies its obligation to pay in the due currency only to the extent of the amount of the due currency obtained from the conversion after deducting the Costs of the
conversion. 

  

	9.	Withholding tax 

  

	9.1	Payments by Company 

  
 If a law requires the Company to deduct an amount in respect of Taxes from a payment under any Transaction Document such that the Financier would not
actually receive on the due date the full amount provided for under the Transaction Document, then: 
  

	 	(a)	the Company agrees to deduct the amount for the Taxes (and any further deduction applicable to any further payment due under paragraph (c) below); and 

  

	 	(b)	the Company agrees to pay an amount equal to the amount deducted to the relevant authority in accordance with applicable law and give the original receipts to the Financier; and

  

	 	(c)	if the amount deducted is in respect of Accountable Taxes, the amount payable is increased so that, after making the deduction and further deductions applicable to additional
amounts payable under this clause, the Financier is entitled to receive (at the time the payment is due) the amount it would have received if no deductions had been required. 

  
 The Financier must account to the Company for any tax credit or other net
benefit it receives as a result of the operation of this clause. 
  

	10.	Increased costs 

  

	10.1	Compensation 

  
 The Company agrees to compensate the Financier on demand if the Financier determines that: 
  

	 	(a)	a Directive or change in Directive, in either case applying for the first time after the date of this agreement; or 

  

	 	(b)	a change in a Directive’s interpretation or administration by an authority after the date of this agreement; or 

  

	 	(c)	compliance by the Financier or any of its Related Entities with any such Directive, changed Directive or changed interpretation or administration directly or indirectly:

  

	 	(i)	increases the cost of the Facility to the Financier or any of its Related Entities; or 

  

	 	(ii)	reduces any amount received or receivable by the Financier, or the effective return to, the Financier or any of its Related Entities, in connection with the Facility; or

  

	 	(iii)	reduces the return on capital allocated to the Facility, or the overall return on capital of the Financier (or any of its Related Entities). 

  
 In this clause 10.1, a reference to a Directive does not include a Directive
imposing or changing the basis of a tax on the overall net income of the Financier. 
  
 Compensation need not be in the form of a lump sum and may be demanded as a series of payments. 
  

	10.2	Possible minimisation 

  

	 	(a)	The Company agrees to compensate the Financier whether or not the increase or reduction could have been avoided. However, if the Company asks, the Financier agrees to consider ways
of minimising any increase or reduction. 

  

 15 

	 	(b)	Compensation will not be payable under this clause 10 for any amount: 

  

	 	(i)	compensated for by clause 9 or that would have been compensated for under clause 9 but was not so compensated because the amount was not an Accountable Tax; or

  

	 	(ii)	attributable to any period more than 180 days prior to the date of the demand, if the Financier ought reasonably have been aware of the increased cost and able to quantify its
effect prior to that date. 

  
 The Financier must
on request provide reasonable details to the Company of its calculation of any amount claimed by it under this clause. 
  

	11.	Illegality or impossibility 

  

	11.1	Financier’s right to suspend or cancel 

  
 This clause 11 applies if the Financier determines that: 
  

	 	(a)	a change in a Directive; or 

  

	 	(b)	a change in the interpretation or administration of a Directive by an authority; or 

  

	 	(c)	a Directive, 

  
 applying for the first time after the date of this agreement, makes it (or will make it) illegal or impossible in practice for the Financier to fund,
provide, or continue to fund or provide, financial accommodation under the Transaction Documents. In these circumstances, the Financier, by giving a notice to the Company, may suspend or cancel some or all of the Financier’s obligations under
this agreement as indicated in the notice. 
  

	11.2	Extent and duration 

  
 The suspension or cancellation: 
  

	 	(a)	must apply only to the extent necessary to avoid the illegality or impossibility; and 

  

	 	(b)	in the case of suspension, may continue only for so long as the illegality or impossibility continues. 

  

	11.3	Notice requiring prepayment 

  
 If the illegality or impossibility relates to the Drawing, the Financier, by giving a notice to the Company, may require prepayment of all or part of the
Drawing and interest accrued on that part. The Company agrees to repay the amount specified within 30 Business Days after receiving the notice (or, if earlier, on the date the illegality or impossibility arises). 
  

	12.	Representations and warranties 

  

	12.1	Representations and warranties 

  
 Each Obligor represents and warrants (except in relation to matters disclosed to the Financier by the Company and accepted by the Financier in writing)
that: 
  

	 	(a)	(incorporation and existence) it has been incorporated as a company limited by shares in accordance with the laws of its place of incorporation, is validly existing under
those laws and has power and authority to carry on its business as it is now being conducted; and 

  

	 	(b)	(power) it has power to enter into the Transaction Documents to which it is a party and comply with its obligations under them; and 

  

 16 

	 	(c)	(no contravention or exceeding power) the Transaction Documents and the transactions under them which involve it do not contravene its constituent documents (if any) or any
law or obligation by which it is bound or to which any of its assets are subject or cause a limitation on its powers or the powers of its directors to be exceeded; and 

  

	 	(d)	(authorisations) to the best of its knowledge, information and belief after having made proper inquiries, it (or a Project Party) has in full force and effect the
Authorisations and Environmental Approvals necessary for it to operate the Project and to enter into the Transaction Documents to which it is a party, to comply with its obligations and exercise its rights under them and to allow them to be
enforced; and 

  

	 	(e)	(validity of obligations) its obligations under the Transaction Documents are valid and binding and are enforceable against it in accordance with their terms; and

  

	 	(f)	(benefit) it benefits by entering into the Transaction Documents to which it is a party; and 

  

	 	(g)	(accounts) its most recent audited Financial Statements last given to the Financier are a true and fair statement of its financial position as at the date to which they are
prepared and disclose or reflect all its actual and contingent liabilities as at that date and are prepared in accordance with Australian accounting principles generally accepted, and relevant corporate laws; and 

  

	 	(h)	(consolidated accounts) if it is required to prepare consolidated Financial Statements under the Corporations Act, the most recent audited consolidated Financial Statements
of the economic entity constituted by it and the entities which it controls last given to the Financier are a true and fair statement of the economic entity’s financial position as at the date to which they are prepared and disclose or reflect
all the economic entity’s actual and contingent liabilities as at that date and are prepared in accordance with Australian accounting principles generally accepted, and relevant corporate laws; and 

  

	 	(i)	(solvency) there are no reasonable grounds to suspect that it or any of its Subsidiaries is unable to pay its debts as and when they become due and payable; and

  

	 	(j)	(not a trustee) it does not enter into any Transaction Document as trustee; and 

  

	 	(k)	(ownership of property) to the best of its knowledge, information and belief, after having made proper inquiries, it is the beneficial owner of and has good title to all
property held by it or on its behalf and all undertakings carried on by it free from Encumbrances, other than any Permitted Encumbrance; and 

  

	 	(l)	(no benefit to related party or financial assistance) no person has contravened or will contravene section 208, section 209 or section 260A of the Corporations Act by
entering into any Transaction Document or participating in any transaction in connection with a Transaction Document; and 

  

	 	(m)	(litigation) there is not actual proceeding and, to the best of its knowledge, information and belief after having made proper inquiries there is no pending or threatened
proceeding, affecting it or any of its Subsidiaries or any of their assets before a court, authority, commission or arbitrator except those in which a decision against it or the Subsidiary (either alone or together with other decisions) would not
have a or be reasonably likely to have a Material Adverse Effect; and 

  

 17 

	 	(n)	(Event of Default) there is no Event of Default except those that have been notified in writing to the Financier and none of those continues unremedied; and

  

	 	(o)	(default under law - Material Adverse Effect) to the best of its knowledge, information and belief, after having made proper inquiries, neither it nor any of its Subsidiaries
is in breach of a law or obligation affecting any of them or their assets in a way which is, or is likely to have, a Material Adverse Effect; and 

  

	 	(p)	(default under contract - Material Adverse Effect) to the best of its knowledge, information and belief after having made proper inquiries, neither it nor any of its
Subsidiaries is in breach of any contract to which it is a party which affects any of them or their assets in a way which is, or is likely to have, a Material Adverse Effect; and 

  

	 	(q)	(no material change) to the best of its knowledge, information and belief, after having made proper inquiries, there has been no change in its financial position or the
operation of the Project since the date to which its Financial Statements last given to the Financier were prepared which is, or is likely to have, a Material Adverse Effect; and 

  

	 	(r)	(no immunity) neither it nor any of its Subsidiaries has immunity from the jurisdiction of a court or from legal process; and 

  

	 	(s)	(taxes not delinquent) to the best of its knowledge, information and belief, after having made proper inquiries, it has complied with all law in jurisdictions in which
it is subject to taxation and has paid all Taxes due and payable by it and no claims are being asserted against it in respect of Taxes which if adversely determined would have a Material Adverse Effect; and 

  

	 	(t)	(environment) 

  

	 	(i)	to the best of its knowledge, information and belief, after having made proper inquiries, the Project Area and the occupation, use and development of the Project Area complies with
all Environmental Laws and Environmental Approvals and the Project as contemplated by the Development Plan complies in all material respects with all applicable laws (including Environmental Laws) and existing Authorisations (including Environmental
Approvals) for the Project; and 

  

	 	(ii)	the Company has not carried on any activities on the Project Area in a way which has given or is likely to give rise to any material Environmental Liability,

  
 in either case which has or would be
reasonably likely to have a Material Adverse Effect; and 
  

	 	(u)	(land claims) except as disclosed to the Financier no caveats, land claims, sacred site applications or claims of any other nature whatsoever have been lodged or made in
respect of the Project, which have or would be reasonably likely to have a Material Adverse Effect; and 

  

	 	(v)	(Development Plan) the Development Plan is the current plan of the Company for the development, construction and operation of the Project; and 

  

	 	(w)	(Financial Model) the Financial Model is a fair and reasonable representation of the expected future performance of the Project and the Company from Financial Close until the
end of the Project Life Period. 

  

 18 

	12.2	Repetition of representations and warranties 

  
 The representations and warranties in this clause 12 are taken to be also made (by reference to the then current circumstances) on the Drawdown Date.

  

	12.3	Reliance 

  
 Each Obligor acknowledges that the Financier has entered into the Transaction Documents to which it is a party in reliance on, the representations and
warranties in this clause 12. 
  

	13.	Undertakings 

  

	13.1	General undertakings 

  
 Each Obligor undertakes: 
  

	 	(a)	(accounting records) to keep proper accounting records and ensure that each of its Subsidiaries does the same; and 

  

	 	(b)	(no cessation of business) not, without the Financier’s consent, to cease conducting its business and not to significantly change the general character of any business
it conducts; and 

  

	 	(c)	(status certificates) on request from the Financier, to give the Financier a certificate signed by two of its directors which states whether an Event of Default continues
unremedied; and 

  

	 	(d)	(maintain authorisations) to obtain, renew on time and comply with the terms of each Authorisation where a failure to obtain, renew or comply with the Authorisation would
have or be reasonably likely to have a Material Adverse Effect or to enter into the Transaction Documents to which it is a party, to comply with its obligations and exercise its rights under them and to allow them to be enforced; and

  

	 	(e)	(not give financial accommodation) not, without the Financier’s consent, to: 

  

	 	(i)	provide financial accommodation to a Related Entity, other than to a Security Provider; or 

  

	 	(ii)	permit financial accommodation (other than that referred to in clause 13.1(e)(i)) to remain owing to the Company by a Related Entity); or 

  

	 	(iii)	satisfy any financial accommodation the Company now or in the future owes to a Related Entity (other than a Security Provider or owed to the Sponsor under a Transaction Document);
and 

  

	 	(f)	(not reduce capital) to ensure that its capital is not reduced or made capable of being called up only in certain circumstances; and 

  

	 	(g)	(notify interests in land) to give the Financier details about all land and interests in land (such as leases) a Project Party acquires; and 

  

	 	(h)	(ensure no Event of Default) to do everything necessary to ensure that no Event of Default occurs and ensure that each of its Subsidiaries does the same; and

  

	 	(i)	(notify details of Event of Default) if an Event of Default occurs, to notify the Financier giving full details of the event and any step taken or proposed to remedy it; and

  

	 	(j)	(purpose) to use the Facility only for the Approved Purposes; and 

  

	 	(k)	(notify defaults, proceedings etc) to advise the Financier promptly after it becomes aware of any pending or threatened action, claim, or proceeding against it which will
have a Material Adverse Effect; and 

  

 19 

	 	(l)	(good standing) to do all things necessary to maintain its corporate existence in good standing and not transfer its jurisdiction of incorporation or enter into any merger,
amalgamation or consolidation without the prior consent of the Senior Financier; and 

  

	 	(m)	(compliance with laws) to duly and punctually comply with all laws binding upon it where a failure to so comply would have or be reasonably likely to have a Material Adverse
Effect; 

  

	 	(n)	(pay Taxes) that it will 

  

	 	(i)	pay when due all Taxes payable by it unless such Taxes are Contested Taxes; and 

  

	 	(ii)	pay such Contested Taxes after the final determination or settlement of such contest in accordance with the terms of the determination or settlement; and 

 

	 	(iii)	enter into a Tax Indemnity Deed in form and substance satisfactory to the Financier (such approval not to be unreasonably withheld) at the same time as it enters into a Valid Tax
Sharing Agreement. 

  

	 	(iv)	in conjunction with providing the indemnity referred to in clause 15.1, provide further undertakings to the Financier (or procure members of the Consolidated Group to provide
undertakings to the Financier) to ensure the Valid Tax Sharing Agreement remains valid and the Tax Indemnity Deed is based on reasonable allocations. Such undertakings must include undertakings that: 

  

	 	A.	amendments cannot be made to the Valid Tax Sharing Agreement and Tax Indemnity Deed once executed without the Financier’s consent; 

  

	 	B.	the Head Company of the Consolidated Group provides a copy of the Valid Tax Sharing Agreement to the Commissioner within 14 days of receiving notice under section 721-25(3) of the
Tax Act; 

  

	 	C.	the Head Company provides notice to other members of the Consolidated Group of any notice received from the Commissioner under section 721-25(3) within two Business Days of
receiving such notice, providing those members of the Consolidated Group with immediate access to the Consolidated Group’s Valid Tax Sharing Agreement and allowing the members of the Consolidated Group to provide a copy of the Valid Tax Sharing
Agreement to the Commissioner as agent for (or otherwise on behalf of) the Head Company; and 

  

	 	D.	copies of documents and notices given to or by the Commissioner in connection with the Valid Tax Sharing Agreement will be provided to the Financier within a reasonable time; and

  

	 	(o)	(pay debts) to pay or cause to be paid its financial obligations including without limitation all rates, rents and other outgoings payable by it as and when the same
respectively become due and payable where a failure to pay would have or be reasonably likely to have a Material Adverse Effect; and 

  

	 	(p)	(operate Project) to take or procure to be taken, all action necessary or desirable in order to: 

  

	 	(i)	diligently develop, operate and maintain the Project in accordance with the Development Plan, the Financial Model and good industry practice; and 

  

 20 

	 	(ii)	ensure that all material Project Assets are maintained in good and efficient operating condition; and 

  

	 	(q)	(comply with the Transaction Documents) to duly and punctually comply with each of its obligations under or in respect of the Transaction Documents to which it is a party;
and 

  

	 	(r)	(environmental matters) that it will maintain proper procedures to monitor: 

  

	 	(i)	its compliance with Environmental Law, Environmental Approvals and Authorisations; and 

  

	 	(ii)	circumstances which may give rise to a substantial claim or to a requirement of substantial expenditure by it or of cessation or material alteration of its activity
(“Hazardous Circumstances”); and 

  

	 	(s)	(remedy) where the procedures referred to in this paragraph reveal any material non-compliance with Environmental Law, Environmental Approval or Authorisation, or reveal any
Hazardous Circumstances, promptly remedy such non-compliance or Hazardous Circumstances; and 

  

	 	(t)	(Tenements) to ensure that all conditions and requirements relating to Tenements are observed or performed in all material respects and that the Tenements remain valid and
are in full force and effect provided that nothing in this clause shall prevent the Company or any Related Entity from conditionally surrendering or allowing to lapse or expire any Tenement that does not contain an ore reserve or where such
conditional surrender, lapse or expiry will not have a Material Adverse Effect; and 

  

	 	(u)	(insurance) to ensure that it’s assets are adequately insured over the term of the Facility, and that the Financier is noted as an insured party under insurance
policies. 

  

	13.2	Information undertakings 

  

	 	Each	Obligor undertakes: 

  

	 	(a)	(annual accounts) to give its audited Financial Statements for each financial year to the Financier within 90 days after the end of that year; and 

 

	 	(b)	(annual consolidated accounts) if it is required to prepare consolidated Financial Statements under the Corporations Act, to give the audited consolidated Financial
Statements of the economic entity constituted by it and the entities which it controls for each financial year to the Financier within 90 days after the end of that year; and 

  

	 	(c)	(half yearly accounts) to give its Financial Statements (audited if required under the Corporations Act) for the first half of each financial year to the Financier within 90
days after the end of that half year; and 

  

	 	(d)	(half yearly consolidated accounts) if it is required to prepare consolidated Financial Statements under the Corporations Act, to give the consolidated Financial Statements
(audited if required under the Corporations Act) of the economic entity constituted by it and the entities which it controls for the first half of each financial year to the Financier within 90 days after the end of that half year; and

  

	 	(e)	(corporate notices) to provide a copy of all notices, circulars and other written information and documents given to its shareholders in their capacity as shareholders; and

  

 21 

	 	(f)	(Development Plan and Financial Model) in each year of the Facility, to provide an updated Development Plan and Financial Model; and 

  

	 	(g)	(details of claims) to provide details of any claim (current or, to the best of its knowledge and belief, pending or threatened), notice or other communication received by it
in respect of any alleged breach or liability under any Environmental Law or any circumstances reasonably likely to result in any claim under any Environmental Law where any such breach, liability or claim would be reasonably likely to have a
Material Adverse Effect; and 

  

	 	(h)	(suspension) to provide notification of any suspension, revocation, cancellation, annulment or amendment of any Authorisation required to carry on the Project or
Environmental Approval which has or would be reasonably likely to have a Material Adverse Effect; and 

  

	 	(i)	(non compliance) to provide details of any material breach of or non-compliance with any Authorisation required to carry on the Project or Environmental Approval where such
breach or non-compliance would be reasonably likely to have a Material Adverse Effect; and 

  

	 	(j)	(other information) to provide promptly, such information and supporting evidence in relation to the Company and the Project or its financial condition or business as the
Financier reasonably requests from time to time. 

  

	13.3	Financial Indebtedness undertaking 

  

	 	Each	Obligor agrees that it will not create Financial Indebtedness (including giving guarantees and indemnities) other than: 

  

	 	(a)	under this agreement; 

  

	 	(b)	between the Obligors; or 

  

	 	(c)	indebtedness under the Sponsor Subordinated Facility Agreement; or 

  

	 	(d)	indebtedness under the Senior Financier Facility Agreement; or 

  

	 	(e)	Financial Indebtedness existing on the date of this agreement where such indebtedness has been disclosed in writing to the Financier; or 

  

	 	(f)	Financial Indebtedness secured by Permitted Encumbrances; or 

  

	 	(g)	credit given on the purchase of goods and services required for the carrying on of its day to day business; or 

  

	 	(h)	with the prior written consent of the Financier. 

  

	13.4	Negative pledge 

  

	 	Each	Obligor agrees: 

  

	 	(a)	(no Encumbrances) without the Financier’s consent, not to create an Encumbrance or allow one to exist on the whole or any part of its present or future property other
than any Permitted Encumbrance; and 

  

	 	(b)	(no disposal) without the Financier’s consent, not to dispose of (or agree to dispose of) all or a substantial part of its property (either in a single transaction or in
a series of transactions whether related or not and whether voluntarily or involuntarily) except: 

  

	 	(i)	disposals made with the Financier’s consent; or 

  

	 	(ii)	disposals made in the ordinary course of its business for arm’s length consideration; or 

  

	 	(iii)	where the aggregate book value of assets disposed of over the previous 12 month period does not exceed A$1,000,000; or 

  

	 	(iv)	if the disponee or transferee is a Subsidiary of the Company that has provided Security. 

  

	 	(c)	(extension to Subsidiaries) to ensure that none of its Subsidiaries does anything which the Company is prohibited from doing under clauses 13.4(a) or 13.4(b) unless the
Subsidiary has the Financier’s consent and except that the Subsidiaries may dispose of property to the Company; and 

  

 22 

	 	(d)	(no loans) that it will not lend money or provide any other financial accommodation to any other party except - 

  

	 	(i)	to a Subsidiary that has provided security to the Financier; or 

  

	 	(ii)	in the ordinary course of business in relation to the purchase price of goods or trade terms on usual terms for the purchaser; and 

  

	 	(e)	(guarantees restricted) to ensure that no guarantee (or other assurance against financial loss) is granted or outstanding in connection with money borrowed or raised by or at
the request of the Company or any of its Subsidiaries, except: 

  

	 	(i)	if the Financier has consented; or 

  

	 	(ii)	for drawings, acceptances and endorsements of Bills in the ordinary course of its business; or 

  

	 	(iii)	if the Company’s obligations under the Transaction Documents are equally and rateably secured by a guarantee (or other assurance) in form and substance satisfactory to the
Financier; or 

  

	 	(iv)	in relation to any money borrowed or raised and which is secured by any Permitted Encumbrance; and 

  

	 	(f)	(suspension, repudiation or cancellation) that it will not suspend, repudiate or cancel any provision of an Environmental Approval or an Authorisation required for the
carrying on of the Project without the consent of the Senior Financier where such suspension, repudiation or cancellation would or would be reasonably likely to have a Material Adverse Effect; and 

  

	 	(g)	(Transaction Documents not to be amended) that it will not amend any provisions of the Transaction Documents in any material way which is reasonably likely to have the effect
of derogating from the rights of the Financier (which includes any increase in the facility limit under any Transaction Document) without the Financier’s prior written consent, which will not be unreasonably withheld. 

 

	14.	Default 

  

	14.1	Events of Default 

  

	 	Each	of the following is an Event of Default: 

  

	 	(a)	(non-payment - Transaction Document) the Company does not pay any amount payable by it under any Transaction Document within 30 days of the due date for payment in accordance
with the Transaction Document; or 

  

	 	(b)	(cross default) any other present or future monetary obligations of the Company or any of its Subsidiaries for amounts totalling more than $5,000,000 are not satisfied on
time (or at the end of their period of grace, such period not to exceed 30 days) or become prematurely payable. 

  
 (In this clause 14.1(b), a “monetary obligation” means a monetary obligation in connection with: 
  

	 	(i)	money borrowed or raised; or 

  

	 	(ii)	any hiring arrangement, redeemable preference share, letter of credit or financial markets transaction (including a swap, option or futures contract), performance bond or guarantee
facility; or 

  

	 	(iii)	a guarantee or indemnity in connection with anything referred to in paragraphs (i) or (ii)); or 

  

	 	(c)	(enforcement against assets) distress is levied or a judgment, order or Encumbrance is enforced, or becomes enforceable, against any property of the Company or any of its
Subsidiaries for amounts totalling more than $5,000,000; or 

  

 23 

	 	(d)	(incorrect representation or warranty) a representation or warranty made or taken to be made by or for the Company or a Security Provider in connection with a Transaction
Document is found to have been incorrect or misleading in any material respect when made or taken to be made and the Company fails within 30 days to satisfy the Lender that this is not materially prejudicial to the Lender (having regard to any
remedial action taken or proposed by the Company or relevant Security Provider); or 

  

	 	(e)	(Insolvency) the Company or any of its Subsidiaries becomes Insolvent; or 

  

	 	(f)	(ceasing business) the Company or any of its Subsidiaries stops payment, ceases to carry on its business or a material part of it, or threatens to do either of those things
except to reconstruct or amalgamate while solvent on terms approved by the Financier; or 

  

	 	(g)	(voidable Transaction Document) a Transaction Document or a transaction in connection with it is or becomes (or is claimed to be) wholly or partly void, voidable or
unenforceable or does not have (or is claimed not to have) the priority the Financier intended it to have (“claimed” in this paragraph means claimed by the Company or any of its Related Entities or anyone on behalf of any of them); or

  

	 	(h)	(reduction of capital) without the consent of the Financier, the Company or any of its Subsidiaries takes action to reduce its capital or buy back any of its ordinary shares
or passes a resolution referred to in section 254N(1) of the Corporations Act (“Calls may be limited”); or 

  

	 	(i)	(default under other Transaction Document) an event occurs in relation to the Borrower or any Security Provider which is called an “event of default” under any
Transaction Document other than this agreement, or any other event occurs in relation to the Borrower or any Security Provider which renders enforceable a Transaction Document that comprises an Encumbrance; or 

  

	 	(j)	(non-compliance with other obligations) the Company does not comply with any other obligation under any Transaction Document (other than a failure referred to elsewhere in
this clause) and the failure is material and cannot be remedied, or if the non-compliance can be remedied the failure is not remedied within 30 days after the Financier requires the Company to remedy it; 

  

	 	(k)	(compulsory acquisition) all or a material part of its property is compulsorily acquired by any governmental agency and such event is reasonably likely to have a Material
Adverse Effect on it (having regard to any compensation for the acquisition); or 

  

	 	(l)	(expropriation event) there occurs any expropriation, restraint, restriction, prohibition, intervention, law, decree or other order of any governmental agency which wholly or
in material part prevents or hinders the performance of any Transaction Document or the operation of the Project; or 

  

	 	(m)	(abandonment) all or any material part of the Project is abandoned or is placed on a care and maintenance basis; or 

  

	 	(n)	(Financial assistance) QMCK, QMCR and QMPL have not satisfied the following: 

  

	 	(i)	an original copy of a guarantee and indemnity to each Finance Party (in similar terms to the Guarantee) has been executed and delivered to each Finance Party;

  

 24 

	 	(ii)	an original copy of appropriate Encumbrances (in similar terms to the Deed of Security and the Shareholder Mortgage) have been executed, stamped and delivered to the Security
Trustee; 

  

	 	(iii)	all of the items referred to in items 3 to 9 inclusive, of schedule 1 (“Project Party CP Provisions”) have been provided in accordance with the terms set out in
those items as if QMCK, QMCR and QMPL were an Obligor; and 

  

	 	(iv)	all appropriate notices, resolutions and approvals (including shareholder resolutions in connection with section 260B of the Corporations Act), in connection with that guarantee and
Encumbrance have been provided to the Financier, 

  
 within a period of 20 Business Days from Financial Close. 
  

	14.2	Consequences of default 

  
 If an Event of Default occurs, then the Financier may declare at any time by notice to the Company that: 
  

	 	(a)	an amount equal to the Amount Owing is either: 

  

	 	(i)	payable on demand; or 

  

	 	(ii)	immediately due for payment; 

  

	 	(b)	the Financier’s obligations specified in the notice are terminated. 

  
 The Financier may make either or both of these declarations. The making of either of them gives immediate effect to its provisions. 
  

	15.	Costs and indemnities 

  

	15.1	Indemnity 

  
 The Company indemnifies the Financier against any and all liability, damage or loss arising from, and any reasonable Costs incurred in connection with:

  

	 	(a)	an Event of Default; or 

  

	 	(b)	the Financier exercising or attempting to exercise a right or remedy in connection with a Transaction Document after an Event of Default; or 

  

	 	(c)	any indemnity the Financier gives a Controller or administrator of the Company, 

  
 except to the extent that the liability, damage, loss or Costs is contributed to by the negligence or other default of the
Financier or any of its Related Entities. The Company agrees to pay amounts due under this indemnity on demand from the Financier. 
  

	15.2	Items included in loss, liability and Costs 

  
 The Company agrees that the Costs referred to in clause 15.1 (“Indemnity”) include legal Costs in accordance with any written agreement as to
legal costs (whether or not the Company is a party to the agreement) or, if no agreement, on whichever is the higher of a full indemnity basis or solicitor and own client basis. 
  

	15.3	Currency conversion on judgment debt 

  
 If a judgment, order or proof of debt for an amount in connection with a Transaction Document is expressed in a currency other than that in which the
amount is due under the Transaction Document, then the Company indemnifies the Financier against: 
  

	 	(a)	any difference arising from converting the other currency if the rate of exchange used by the Financier under clause 8.2 (“Currency of payment”) for converting currency
when it receives a payment in the other currency is less favourable to the Financier than the rate of exchange used for the purpose of the judgment, order or acceptance of proof of debt; and 

  

 25 

	 	(b)	the Costs of conversion. 

  
 The Company agrees to pay amounts due under this indemnity on demand from the Financier. 
  

	16.	Application of payments 

  
 The Financier may apply amounts paid by the Company towards satisfaction of the Company’s obligations under the Transaction Documents in the manner
it sees fit, unless the Transaction Documents expressly provide otherwise. This appropriation overrides any purported appropriation by the Company or any other person. 
  

	17.	Dealing with interests 

  

	17.1	No dealing by Company 

  
 None of the Obligors may assign or otherwise deal with its rights under any Transaction Document or allow any interest in them to arise or be varied, in
each case, without the Financier’s consent which will not be unreasonably withheld. 
  

	17.2	Dealings by Financier 

  
 The Financier may not assign or otherwise deal with its rights under the Transaction Documents (including by assignment or participation) without the
Company’s consent, which will not be unreasonably withheld, except, subject to clause 17.3, that the Financier may assign to a Related Entity of the Financier its rights under the Transaction Documents and may agree to the assumption of its
obligations under the Transaction Documents by a Related Entity of the Financier without the consent of the Company provided that it gives written notice of such assignment and assumption promptly after effecting such assignment. 
  

	17.3	Release 

  

	 	(a)	Subject to clause 17.3(b), if requested by the Financier, each Obligor will, and will ensure that each of its relevant Related Entities will, release the Financier from its future
obligations under the Transaction Documents with effect from the date of their assumption by the Financier’s Related Entity under clause 17.2. 

  

	 	(b)	The Financier will not be entitled to a release under clause 17.3(a) if the financial standing of the Related Entity assuming the Financier’s obligations under clause 17.2 (as
disclosed in its most recent financial statements) is materially worse than that of the Financier and the Related Entity would be reasonably unlikely to meet its obligations to the Company. 

  

	18.	Financial Model and Development Plan 

  

	18.1	Provision of information 

  
 The Company agrees that prior to Financial Close it will deliver a copy of the Preliminary Development Plan and the Financial Model (together with the
Assumptions used in the Financial Model) to the Financier. 
  

	18.2	Preparation of Development Plan 

  
 The Company agrees that it will as soon as reasonably practical after Financial Close, prepare and deliver to the Financier the Development Plan which
will be based upon and consistent with the Preliminary Development Plan but which will set out in more detail the proposed plan for the development of the Project, subject to any changes or variations determined by the Company and the Senior
Financier. 
  

 26 

	18.3	Updating of the Development Plan and Financial Model 

  
 The Company agrees: 
  

	 	(a)	to update the Development Plan on a yearly basis (and in any event, not less than 30 days prior to the date occurring one year after the date of Acquisition) or so often as is
required to reflect any material changes to the Project; and 

  

	 	(b)	to update the Financial Model on a yearly basis to reflect any material changes to the Project and/or the Company; and 

  

	 	(c)	to the extent that the Development Plan and/or the Financial Model have been updated to promptly deliver a copy of the updated Development Plan and Financial Model to the Financier.

  

	18.4	Considerations in updating Financial Model 

  
 Any updating of the Development Plan and/or the Financial Model under clause 18.3 (“Updating of the Development Plan and Financial Model”) must
take into account: 
  

	 	(a)	actual financial and operating performance of the Project; and 

  

	 	(b)	the forecast performance of the Project for the remainder of the Project Life Period (to be determined after reference to the Assumptions). 

  

	19.	Guarantee and indemnity 

  

	19.1	Consideration 

  
 The Guarantor acknowledges that each Finance Party is acting in reliance on the Guarantor incurring obligations and giving rights under this Guarantee.

  

	19.2	Guarantee 

  
 The Guarantor unconditionally and irrevocably guarantees payment to each Finance Party of the Guaranteed Money. If the Company does not pay the Guaranteed
Money on time and in accordance with the Transaction Documents, then the Guarantor agrees to pay the Guaranteed Money on demand from the Financier. A demand may be made at any time and from time to time and whether or not the Finance Party has made
demand on the Company, or any other person. 
  

	19.3	Nature of guarantees 

  
 The undertakings in clause 19.2 (“Guarantee”) and clause 19.4 (“Indemnity”) are a continuing obligation despite any intervening
payment, settlement or other thing and extends to all of the Guaranteed Money. 
  

	19.4	Indemnity 

  
 The Guarantor indemnifies each Finance Party against any liability, damage or loss arising, and any reasonable Costs it suffers or incurs: 
  

	 	(a)	if the Company does not, or is unable to, pay the Guaranteed Money in accordance with the Transaction Documents; or 

  

	 	(b)	if an obligation the Company would otherwise have to pay the Guaranteed Money is found to be unenforceable; or 

  

	 	(c)	if an obligation the Guarantor would otherwise have under clause 19.2 (“Guarantee”) is found to be unenforceable; or 

  

	 	(d)	if the Security Trustee or the Financier is obliged, or agrees, to pay an amount to a trustee in bankruptcy or liquidator (of an Insolvent person) in connection with a payment by
the Guarantor or the Company. (For example, a Financier may have to, or may agree to, pay interest on the amount.); or 

  

	 	(e)	if the Guarantor defaults under this Guarantee; or 

  

 27 

	 	(f)	in connection with any person exercising, or not exercising, rights under the Guarantee. 

  
 The Guarantor agrees to pay amounts due under this indemnity on demand from the Financier. 
  

	19.5	Reinstatement of rights 

  
 Under law relating to Insolvency, a person may claim that a transaction (including a payment) in connection with the Guarantee or the Guaranteed Money is
void or voidable. If a claim is made and upheld, conceded or comprised, then: 
  

	 	(a)	the Financier is immediately entitled as against the Guarantor to the rights in respect of the Guaranteed Money to which it was entitled immediately before the transaction; and

  

	 	(b)	on request from the Financier the Guarantor agrees to do anything to restore to the Financier any Security (including the Guarantee) held by it or the Security Trustee from the
Guarantor immediately before the transaction, including signing any document. 

  

	19.6	Rights of the Finance Parties are protected 

  
 Rights given to each Finance Party under this Guarantee, and the Guarantor’s liabilities under it, are not affected by any act or omission of the
Financier or any other person. For example, those rights and liabilities are not affected by: 
  

	 	(a)	any act or omission: 

  

	 	(i)	varying or replacing any arrangement under which the Guaranteed Money is expressed to be owing, such as by increasing a Facility Limit or extending the term or changing the Security
Trustee; or 

  

	 	(ii)	releasing the Company or giving the Company a concession (such as more time to pay); or 

  

	 	(iii)	releasing any person who gives a guarantee or indemnity in connection with any of the Company’s obligations; or 

  

	 	(iv)	releasing, losing the benefit of, or not obtaining any Encumbrance or negotiable instrument; or 

  

	 	(v)	by which a person becomes a Guarantor after the date of this guarantee and indemnity; or 

  

	 	(vi)	by which the obligations of any person who guarantees any of the Company’s obligations (including under this Guarantee) may not be enforceable; or 

  

	 	(vii)	by which any person who was intended to guarantee any of the Company’s obligations does not do so, or does not do so effectively; or 

  

	 	(viii)	by which a person who is a co-surety or co-indemnifier for payment of the Guaranteed Money is discharged under an agreement or by operation of law; or 

  

	 	(ix)	by which any Encumbrance which could be registered is not registered; or 

  

	 	(b)	a person dealing in any way with an Encumbrance, guarantee, indemnity, judgment or negotiable instrument; or 

  

	 	(c)	the death, mental or physical disability or Insolvency of any person including the Guarantor or the Company; or 

  

	 	(d)	changes in the membership, name or business of any person; or 

  

	 	(e)	the Company opening an account with them; or 

  

	 	(f)	acquiescence or delay by the Security Trustee, the Financier or any other person; or 

  

	 	(g)	an assignment of rights in connection with the Guaranteed Money. 

  

 28 

	19.7	No merger 

  
 The Guarantee does not merge with or adversely affect, and is not adversely affected by, any of the following: 
  

	 	(a)	any other guarantee, indemnity, or Encumbrance, or other right or remedy to which a Finance Party is entitled; or 

  

	 	(b)	a judgment which a Finance Party obtains against the Guarantor, the Company or any other person in connection with the Guaranteed Money. 

  
 The Security Trustee and the Financier may still exercise their rights under
the Guarantee as well as under the judgment, Encumbrance or right or remedy. 
  

	19.8	Guarantor’s rights are suspended 

  
 As long as any of the Guaranteed Money remains unpaid, the Guarantor may not, without the Financier’s consent: 
  

	 	(a)	reduce its liability under this Guarantee by claiming that it or the Company or any other person has a right of set-off or counterclaim against a Finance Party; or

  

	 	(b)	exercise any legal right to claim to be entitled to the benefit of another guarantee, indemnity, or Encumbrance given in connection with the Guaranteed Money or any other amount
payable under the Guarantee. (For example, the Guarantor may not try to enforce or require the enforcement of any Encumbrance a Finance Party has taken to ensure repayment of the Guaranteed Money.); or 

  

	 	(c)	claim an amount from the Company, or another guarantor of the Guaranteed Money, under a right of indemnity; or 

  

	 	(d)	claim an amount in the Insolvency of the Company or of another guarantor of the Guaranteed Money. 

  

	19.9	Guarantor’s right of proof limited 

  
 The Guarantor agrees not to exercise a right of proof after an event occurs relating to the Insolvency of the Company or another guarantor of the
Guaranteed Money independently of an attorney appointed under clause 19.12 (“Right to prove”). 
  

	19.10	No set-off against assignees 

  
 If the Financier assigns or otherwise deals with its rights under the Guarantee, the Guarantor may not claim against any assignee (or any other person who
has an interest in the Guarantee) any right of set-off or other right the Guarantor has against the Financier. 
  

	19.11	Suspense account 

  
 The Financier may place in a suspense account any payment they receive from the Guarantor for as long as they think prudent and need not apply it towards
satisfying the Guaranteed Money. 
  

	19.12	Right to prove 

  
 The Guarantor irrevocably appoints the Financier and each of its Authorised Officers individually as its attorney and agrees to formally approve all
action taken by an attorney under this clause. 
  
 Each attorney
may at any time after the occurrence of an Event of Default and while it subsists: 
  

	 	(a)	do anything which the Guarantor may lawfully do to exercise their right of proof after an event relating to Insolvency occurs in respect of the Company or any other guarantor of the
Company’s obligations in connection with a matter not connected with the Guarantor’s rights as “Guarantor” under this 

  

 29 

 agreement. (These things may be done in the Guarantor’s name or the attorney’s name and they
include signing and delivering documents, taking part in legal proceedings and receiving any dividend arising out of the right of proof); and 
  

	 	(b)	delegate its powers (including this power) and may revoke a delegation; and 

  

	 	(c)	exercise its powers even if this involves a conflict of duty and even if it has a personal interest in doing so. 

  
 The attorney need not account to the Guarantor for any dividend received on
exercising the right of proof under paragraph (a) except to the extent that any dividend remains after the Security Trustee has received all of the Guaranteed Money and all other amounts payable under the Guarantee. 
  

	20.	Notices 

  

	20.1	Form 

  
 Unless expressly stated otherwise in the Transaction Document, all notices, certificates, consents, approvals, waivers and other communications in connection with a Transaction Document must be in writing, signed by
an Authorised Officer of the sender and marked for attention as set out or referred to in the Details or, if the recipient has notified otherwise, then marked for attention in the way last notified. 
  
 However, a waiver by the Financier (other than a waiver relating to a matter
under clause 14 (“Default”)) may be oral. 
  

	20.2	Delivery 

  
 They must be: 
  

	 	(a)	left at the address set out or referred to in the Details; or 

  

	 	(b)	sent by prepaid post (airmail, if appropriate) to the address set out or referred to in the Details; or 

  

	 	(c)	sent by fax to the fax number set out or referred to in the Details. 

  
 However, if the intended recipient has notified a changed postal address or changed fax number, then the communication must be to that address or number.

  

	20.3	When effective 

  
 They take effect from the time they are received unless a later time is specified in them. 
  

	20.4	Receipt - postal 

  
 If sent by post, they are taken to be received three days after posting (or seven days after posting if sent to or from a place outside Australia).

  

	20.5	Receipt - fax 

  
 If sent by fax, they are taken to be received at the time shown in the transmission report as the time that the whole fax was sent. 
  

	20.6	Receipt - general 

  
 Despite clause 20.4 (“Receipt - postal”) and clause 20.5 (“Receipt - fax”), if they are received after 5pm in the place of receipt or
on a non-Business Day, they are taken to be received at 9am on the next Business Day. 
  

	20.7	Waiver of notice period 

  
 The Financier may waive a period of notice required to be given by the Company under this agreement. 
  

 30 

	21.	General 

  

	21.1	Application to Transaction Documents 

  
 If anything in this clause 21 is inconsistent with a provision in another Transaction Document, then the provision in the other Transaction Document
prevails for the purposes of that Transaction Document. 
  

	21.2	Consents 

  
 The Company agrees to comply with all conditions in any consent the Financier gives in connection with a Transaction Document. 
  

	21.3	Certificates 

  
 The Financier may give the Company a certificate about an amount payable or other matter in connection with a Transaction Document. The certificate is
sufficient evidence of the amount or matter, unless it is proved to be incorrect. 
  

	21.4	Set-off 

  
 At any time after an Event of Default, the Financier may set off any amount due for payment by the Financier to the Company against any amount due for
payment by the Company to the Financier under the Transaction Document. 
  

	21.5	Discretion in exercising rights 

  
 The Financier may exercise a right or remedy or give or refuse its consent under a Transaction Document in any way it considers appropriate (including by
imposing conditions). 
  

	21.6	Partial exercising of rights 

  
 If the Financier does not exercise a right or remedy under a Transaction Document fully or at a given time, the Financier may still exercise it later.

  

	21.7	No liability for loss 

  
 The Financier is not liable for loss caused by the exercise or attempted exercise of, failure to exercise, or delay in exercising, a right or remedy under
a Transaction Document except to the extent that it occurs as a result of the Financier’s fraud, negligence or wilful misconduct. 
  

	21.8	Conflict of interest 

  
 The Financier’s rights and remedies under any Transaction Document may be exercised even if this involves a conflict of duty or the Financier has a
personal interest in their exercise. 
  

	21.9	Remedies cumulative 

  
 The rights and remedies of the Financier under any Transaction Document are in addition to other rights and remedies given by law independently of the
Transaction Document. 
  

	21.10	Indemnities 

  
 Any indemnity in a Transaction Document is a continuing obligation, independent of the Company’s other obligations under that Transaction Document
and continues after the Transaction Document ends. It is not necessary for the Financier to incur expense or make payment before enforcing a right of indemnity under a Transaction Document. 
  

 31 

	21.11	Rights and obligations are unaffected 

  
 Rights given to the Financier under a Transaction Document and the Company’s liabilities under it are not affected by anything which might otherwise
affect them at law. 
  

	21.12	Inconsistent law 

  
 To the extent permitted by law, each Transaction Document prevails to the extent it is inconsistent with any law. 
  

	21.13	Supervening legislation 

  
 Any present or future legislation which operates to vary the obligations of the Company in connection with a Transaction Document with the result that the
Financier’s rights, powers or remedies are adversely affected (including by way of delay or postponement) is excluded except to the extent that its exclusion is prohibited or rendered ineffective by law. 
  

	21.14	Variation and waiver 

  
 A provision of a Transaction Document, or right created under it, may not be waived or varied except in writing signed by the party or parties to be
bound. 
  

	21.15	Confidentiality 

  
 Each party agrees not to disclose information provided by any other party that is not publicly available (including the existence or contents of any
Transaction Document) except: 
  

	 	(a)	to any person in connection with an exercise of rights or a dealing with rights or obligations under a Transaction Document (including in connection with preparatory steps such as
negotiating with any potential assignee or potential sub-participant or other person who is considering contracting with the Financier in connection with a Transaction Document); or 

  

	 	(b)	to officers, employees, legal and other advisers and auditors of the Company or the Financier; or 

  

	 	(c)	to any party to this agreement or any Related Entity of any party to this agreement, provided the recipient agrees to act consistently with this clause 21.15; or

  

	 	(d)	with the consent of the party who provided the information (such consent not to be unreasonably withheld); or 

  

	 	(e)	as required by any law or stock exchange. 

  
 Each party consents to disclosures made in accordance with this clause 21.15. 
  

	21.16	Further steps 

  
 The Company agrees to do anything the Financier asks (such as obtaining consents, signing and producing documents and getting documents completed and
signed) to bind the Company and any other person intended to be bound under the Transaction Documents. 
  

	21.17	Counterparts 

  
 This agreement may consist of a number of copies, each signed by one or more parties to the agreement. If so, the signed copies are treated as making up
the one document. 
  

	21.18	Governing law 

  
 Each Transaction Document is governed by the law in force in Queensland and the Company and the Financier submit to the non-exclusive jurisdiction of the
courts of that place. 
  

 32 

	21.19	Serving documents 

  
 Without preventing any other method of service, any document in a court action may be served on a party by being delivered to or left at that party’s
address for service of notices under clause 20 (“Notices”). 
  

	21.20	Code of Banking Practice 

  
 The parties to this document agree that the Code of Banking Practice 2003 does not apply to any Transaction Document or any transaction or service under
any Transaction Document. 
  
 EXECUTED as an agreement 
  

 33 

 Schedule 1 - Conditions precedent (clause 3.4) 
  
 Conditions to Drawing 
  

	 	•	 	Each item must be in form and substance satisfactory to the Financier. 

  

	 	•	 	Certification is to be by a director or secretary of the Company or Security Provider (as applicable), that the item is true and complete as at a date no earlier than the date of
this agreement. 

  

					
	 Item

	  	 Form

	  	 Required for

	 1.      Constitution
	  	Certified copy	  	Project Party
			
	 2.      Certificate of registration
	  	Certified copy	  	Project Party
			
	 3.      Extract of minutes of a meeting of the entity’s board of
directors which evidences the resolutions:
  
 (a)    authorising the signing and delivery of the Transaction Documents to which the entity is a party and the observance of obligations under those documents; and
  
 (b)    appointing Authorised
Officers of the entity; and
  
 (c)    which acknowledge that the Transaction Documents (to which the entity is a party) will benefit that entity and which sets out the reasoning behind that conclusion.
	  	Original	  	Obilgor
			
	 4.      Each document which evidences any other necessary corporate or other action of the entity in
connection with the Transaction Documents to which it is a party.
	  	Certified copy	  	Obligor
			
	 5.      Each authorisation of the entity necessary to enter into the Transaction Documents to which it is a
party and to comply with obligations under those documents and enforce those documents.
	  	Certified copy	  	Obligor
			
	 6.      Each power of attorney under which a person signs a Transaction Document for the entity showing
evidence of stamping and registration;
	  	Certified copy	  	Obligor
			
	 7.      Specimen signature of
  
 (a)    each Authorised Officer
of the entity; and
  
 (b)    each other person who is authorised to sign a Transaction Document for the entity.
	  	Original	  	Obligor

  

 34 

					
			
	 8.      Each Transaction Document:
 (a)    fully signed;
  

(b)    evidence of stamping or that the Financier has received an amount equal to the stamp duty payable;
and; and
  
 (c)    evidence of registration.
	  	Original	  	Not applicable
			
	 9.      Evidence that notices of charge and/or consents under each Security have been delivered and returned
properly executed to the Security Trustee.
	  	Original	  	Not applicable
			
	 10.    Evidence that an Obligor is the registered holder(s) of all required Environmental Approvals.
	  	Certified Copy	  	Company
			
	 11     Evidence that all Authorisations necessary or prudent to be obtained in connection with the carrying on of
the Project, except for any which as a matter of generally applicable administrative or good business practice cannot or should not reasonably be obtained until shortly before the matters to which they relate commence where such matters are not
imminent.
	  	Certified Copy	  	Company
			
	 12.    Evidence that funds will be drawndown under the Senior Financier Facility Agreement to partially fund completion
under the Sale and Purchase Agreement on the Drawdown Date.
	  	 	  	 
			
	 13.    Evidence that completion will occur under the terms of the Sale and Purchase Agreement on the Drawdown
Date.
	  	 	  	 
			
	 14.    Evidence that there has been no material adverse change in the business, assets or financial condition of any
Obligor from that disclosed to the Financier prior to the date of this agreement.
	  	 	  	 
			
	 15.    Evidence that a deed of release has been provided by each of AMC and Australian and New Zealand Banking Group
Limited in a form acceptable to the Financier releasing the Financier from certain liabilities or potential liabilities to those parties.
	  	 	  	 

  

 35 

					
	 16.    Evidence that none of the Security Providers have provided any Encumbrance other than Permitted
Encumbrances.
	  	 	  	 
			
	 17.    Evidence that the Interim Working Capital Debt will be repaid on the Drawdown Date.
	  	 	  	 
			
	 18.    No Event of Default is subsisting.
	  	Not applicable	  	Not applicable

  
  

 36 

 Schedule 2 - Drawdown Notice (clause 3) 
  

	To:	          [Name and address of Financier] 

  

	Attention:	  [Insert] 

  
 [Date] 
  
 Advance Drawdown Notice -
between [Company], [Guarantor] and [Financier] dated [            ] (“Loan Agreement”) 
  
 Under clause 0 (“Requesting the Drawing”) of the Loan Agreement, the Company gives notice as follows.1  
  
 The Company wants to borrow under the Facility. 
  

	•	 	The requested Drawdown Date is [            ]2. 

  

	•	 	The amount of the proposed Drawing is A$[30 million]3. 

  

	•	 	The proposed Drawing is to be paid to: 

  

			
	 Account number:
	  	 [            ]

	 Account name:
	  	 [            ]

	 Bank:
	  	 [            ]

	 Branch:
	  	 [            ]

	 BSB:
	  	 [            ]

  
 The Company represents and warrants
that the representations and warranties in the Loan Agreement are correct and not misleading on the date of this notice and that each will be correct and not misleading on the Advance Drawdown Date. 
  
 The “Interpretation” clause of the Loan Agreement applies to this notice as if it
was fully set out in this notice. 
  
 [Name of person] being 
 an Authorised Officer of 
 [Name of Company] 
  
 Instructions for completion 
  

	1	All items must be completed. 

  

	2	Must be a Business Day. 

  

	3	Must be A$500,000 or a whole multiple of A$250,000. 

  

 37 

 Schedule 3 - Preliminary Development Plan 
  
 Schedule of information sent to Senior 
 Financier regarding the Preliminary 
 Development Plan. 
  

					
	 Email

	  	 Date Sent

	  	 Attachments

	 QMAG Refinancing
	  	10-Aug-04	  	LE Aug10.04 ICB to ABN Amro re QMAG lines.doc
			
	 	  	 	  	CF Aug06.04 PBN Mods to QMAG Sales v1provided Aug04.04.xls
			
	 	  	 	  	CF Aug06.04 PBN Mods to QMAG Model provided Aug04.04.xls
			
	 	  	 	  	CF Aug10.04 ICB mod2 to AMC’s 2004-05budgetplcashflowfinal15-6-0411.xls
			
	 QMAG information
	  	12-Aug-04	  	qmagbankpresentation9-7-04.ppt
			
	 Qmag Presentation
	  	13-Aug-04	  	qmagbankpresentationchinaslides13-8-04.ppt
			
	 QMAG Model
	  	25-Aug-04	  	CF Aug24.04 ABN Amro & RCF valuation Model.xls
			
	 QMAG Model - single file
	  	25-Aug-04	  	CF Aug24.04 ABN Amro & RCF valuation Model.xls
			
	 QMAG Debt
	  	26-Aug-04	  	 
			
	 Model
	  	02-Sep-04	  	CF Aug31.04 ABN Amro & RCF valuation Model.xls
			
	 Model
	  	03-Sep-04	  	CF Aug09.04 C Johannsen - 2004-05budgetplcashflowfinal15-6-04.xls
			
	 Response to queries from yesterday
	  	15-Sep-04	  	ME Sept14.04 PBN Term Sheet Responses.doc
			
	 BDA Documentation
	  	23-Sep-04	  	ME Sept23.04 PBN mods to AAB Scope of Work for BDA.doc
			
	 FW: ABN AMRO Model - Draft
	  	24-Sep-04	  	qmagrcfmodel17-9-04abnversion.xls
			
	 FW: Post Completion Structure - Flow Chart
	  	07-Oct-04	  	Post Completion Structure - Flow Chart (from Due Diligence Report)_v1.doc
			
	 Base Case Model
	  	29-Oct-04	  	ME oct28.04 A Roughead Base Case Credit Price Justification.doc
			
	 	  	 	  	FN Oct28.04 ANZ fx mark to market 1.xls
			
	 	  	 	  	FN Oct28.04 ANZ fx mark to market 2.pdf
			
	 	  	 	  	CF Oct28.04 E Elsterman Acquisition Only Model with PBN Mods.xls
			
	 Email

	  	 Date Sent

	  	 Attachments

	 	  	 	  	CS Oct28.04 A Roughead recent sales prices for ABN base case.xls
			
	 BHP Note
	  	29-Oct-04	  	FN Oct29.04 P Rix BHP Meeting Notes.doc
			
	 FW: Price Quotation for Companhia Vale do Rio Doce
	  	29-Oct-04	  	Queensland.doc

  
 Model used by ABN Amro for Credit
Approval - QMAG Nov02.04 Base Case Business Model Final.xls 
  

 38 

 Signing page 
  
 Dated: 29 November 2004 
  

			
	 Signed by
 as attorney for ACN 111 279 906
Ltd under a
 Power of Attorney dated 26 November 2004,
 in
the presence of:
	 	 /s/ Brian T. Dolan, Attorney-in Fact

	 	 	Signature
		
	 /s/ S. E. Thomas

	 	 
	Signature of Witness	 	By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney
		
	 Sian Emma Thomas

	 	 
	Name of Witness in full	 	 

  

			
	 Signed by
 as attorney for QMCH Pty
Ltd
 ACN 111 293 433 under a Power of
 Attorney dated
26 November 2004,
 in the presence of:
	 	 /s/ Brian T. Dolan, Attorney-in-Fact

	 	 	Signature
		
	 /s/ S. E. Thomas

	 	 
	Signature of Witness	 	By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney
		
	 Sian Emma Thomas

	 	 
	Name of Witness in full	 	 

			
	 Signed by Dominic Martin McGann
 as attorney for
Newmont Finance Ltd under
 a Power of Attorney dated 25 November 2004,
 in the presence of:
	 	 /s/ Dominic Martin McGann

	 	 	Signature
		
	 /s/ Meredith Campion

	 	 
	Signature of Witness	 	By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney
		
	 Meredith Nancy Campion

	 	 
	Name of Witness in full	 	 

  

 69Security Trust Deed

 Exhibit 10(bb) 
  
 

 
  
 Security Trust Deed - 
  
 QMAG Security Trust 
  
 Dated 29 November 2004 
  
 ABN AMRO Australia Limited (“Security Trustee”) 
  
 ABN AMRO Bank N.V. (“Senior Financier and Senior Hedge Counterparty”) 
  

Resource Capital Fund III L.P. a Cayman Islands exempted limited partnership acting through Resource Capital Associates III L.P., its general partner, acting through
RCF III GP L.L.C, its general partner (“RCF”) 
  
 Newmont Finance
Limited ABN 20 062 291 285 (“Newmont”) 
  
 ACN 111 279 906 Ltd ABN 68
111 279 906 (to be renamed QMAG Ltd) (“Company”) 
  
 The parties named
in schedule 1 as security providers (“Security Providers”) 
  
 Mallesons Stephen Jaques 
  
 Level 60 
 Governor Phillip Tower 
 1 Farrer Place 
 Sydney NSW 2000 
 Australia 
 T +61 2 9296 2000 
 F +61 2 9296 3999 
 DX 113 Sydney 
 www.mallesons.com 
  
  

 Deed 
 Contents 
  

					
	 Details
	  	1
		
	 General terms
	  	4
			
	1	  	Trust	  	4
			
	1.1	  	Declaration of trust	  	4
	1.2	  	Trust duration	  	4
	1.3	  	Name of Trust	  	4
			
	 2
	  	Security Trustee	  	4
			
	2.1	  	Appointment	  	4
	2.2	  	Exercise of rights, remedies, powers and discretions	  	4
	2.3	  	Obligations	  	5
	2.4	  	Amendments	  	5
	2.5	  	Majority of Senior Beneficiaries	  	5
	2.6	  	Unanimous consent of all Beneficiaries	  	5
	2.7	  	Acknowledgment by all Beneficiaries	  	6
	2.8	  	Amendment of Security Trustee Documents	  	6
	2.9	  	Instructions, generally	  	7
	2.10	  	Procedure for seeking instructions	  	7
	2.11	  	Absence of instructions	  	7
	2.12	  	Beneficiaries bound	  	7
	2.13	  	Reasonableness obligations	  	8
	2.14	  	Obligor not obliged to investigate Security Trustee’s authority	  	8
	2.15	  	Obligation to notify and provide copies	  	8
	2.16	  	Acknowledgment from Beneficiaries	  	8
	2.17	  	Limits on obligations of Security Trustee	  	8
	2.18	  	Disclosure	  	9
	2.19	  	Exoneration	  	9
	2.20	  	Officers, etc. of Security Trustee	  	9
	2.21	  	Security Trustee not responsible for Beneficiary	  	10
	2.22	  	Reliance	  	10
	2.23	  	Delegation	  	10
	2.24	  	Indemnity in respect of claims for payment	  	10
	2.25	  	Indemnity in respect of acting as Security Trustee	  	10
	2.26	  	Funding of Security Trustee	  	11
	2.27	  	Beneficiary fails to fund Security Trustee	  	11
	2.28	  	Funding of Security Trustee	  	11
	2.29	  	Security Trustee as Beneficiary	  	12
	2.30	  	Other business with the Company	  	12
	2.31	  	Exercise of rights by Beneficiaries	  	12
	2.32	  	Meetings of Beneficiaries	  	12
	2.33	  	Force majeure	  	13
	2.34	  	Fees	  	13
	2.35	  	Security Trustee’s further duties	  	13
	2.36	  	Indemnity	  	14

  

 i 

					
	3	  	New Beneficiaries	  	14
			
	3.1	  	New Beneficiaries	  	14
	3.2	  	Company to prepare Accession Deed	  	14
	3.3	  	Obligation of Security Trustee	  	14
	3.4	  	Security Trustee may execute for other parties	  	15
	3.5	  	When effective	  	15
			
	4	  	Ceasing to be a Beneficiary	  	15
			
	4.1	  	Company request	  	15
	4.2	  	Beneficiary notice	  	16
	4.3	  	Beneficiary undertaking	  	16
	4.4	  	Effective on receipt of notice	  	16
			
	5	  	Enforcement	  	16
			
	5.1	  	Events of Default	  	16
	5.2	  	Security Trustee to advise Voting Day	  	16
	5.3	  	Beneficiaries to advise Exposures	  	16
	5.4	  	Security Trustee to issue Acceleration Notices	  	17
	5.5	  	Beneficiaries to comply with Acceleration Notices	  	17
	5.6	  	Only Security Trustee may take proceedings to enforce	  	17
	5.7	  	Junior Beneficiary enforcement	  	17
			
	6	  	Distribution of Recovered Money	  	17
			
	6.1	  	Recovered Money	  	17
	6.2	  	Suspense Account	  	17
	6.3	  	Interest bearing	  	18
	6.4	  	Application of proceeds	  	18
			
	7	  	Replacement of Security Trustee	  	19
			
	7.1	  	Removal or retirement	  	19
	7.2	  	Discharge of obligations	  	20
	7.3	  	Execution of documents	  	20
	7.4	  	Deemed resignation of Security Trustee	  	20
			
	8	  	Acknowledgment	  	21
			
	9	  	Notices	  	21
			
	10	  	Governing law, jurisdiction and service of process	  	21
			
	10.1	  	Governing law and jurisdiction	  	21
	10.2	  	Delivery of documents	  	21
	10.3	  	Appointment of Process Agent	  	21
			
	11	  	Interpretation	  	21
			
	11.1	  	Definitions	  	21
	11.2	  	Interpretation	  	27
	11.3	  	Headings	  	27
	11.4	  	Defined terms from Senior Facility Agreement	  	27
	11.5	  	Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 1992	  	28
	11.6	  	Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 2002	  	28
	11.7	  	Majority Senior Beneficiaries	  	29

  

 ii 

					
	11.8	  	Security Trustee not liable	  	29
		
	Schedule 1 - Security Providers	  	30
		
	Schedule 2 - Accession Deed	  	31
		
	General terms	  	33
			
	3.1	  	Governing law	  	33
		
	Signing page	  	i

  
  

 iii 

 QMAG Security Trust Deed 
  

Details 
  
 Interpretation – definitions are at the end of the General terms 
  

					
	 Parties
	 	Security Trustee, Senior Financier, Senior Hedge Counterparty, RCF, Newmont, Company and Security Providers
			
	Security Trustee	 	Name	  	ABN AMRO Australia Limited
			
	 	 	ABN	  	78 000 862 797
			
	 	 	Address	  	 Level 5
 ABN AMRO Tower
 88 Phillip Street
 Sydney NSW 2000

			
	 	 	Telephone	  	+61 2 8259 6033
			
	 	 	Fax	  	+61 2 8259 5499
			
	 	 	Attention	  	Manager - Agency Department
			
	 Senior Financier and
 Senior Hedge
Counterparty
	 	Name	  	ABN AMRO Bank N.V.
			
	 	 	ABN	  	84 079 478 612
			
	 	 	Address	  	 Level 5
 ABN AMRO Tower
 88 Phillip Street
 Sydney NSW 2000

			
	 	 	Telephone	  	+ 61 2 8259 6118
			
	 	 	Fax	  	+ 61 2 8259 5476
			
	 	 	Attention	  	Yun Zhou - Manager - Loan Administration Department
			
	Newmont	 	Name	  	Newmont Finance Ltd
			
	 	 	ABN	  	20 062 291 285
			
	 	 	Address	  	 100 Hutt Street
 Adelaide South
Australia

			
	 	 	Telephone	  	(08) 8303 1700
			
	 	 	Fax	  	(08) 8303 1900
			
	 	 	Attention	  	Company Secretary

  

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	RCF	 	Name	  	Resource Capital Fund III L.P. a Cayman Islands exempted limited partnership acting through Resource Capital Associates III L.P., its general partner, acting through RCF III GP L.L.C, its
general partner
			
	 	 	Registered in	  	Cayman Island
			
	 	 	Address	  	 1400 Sixteenth Street
 Suite 200
 Denver CO. 80202
 USA

			
	 	 	Telephone	  	+1 720 946 1444
			
	 	 	Fax	  	+1 720 946 1450
			
	 	 	Attention	  	Mr Brian Dolan
			
	Company	 	Name	  	ACN 111 279 906 Ltd (to be renamed QMAG Ltd)
			
	 	 	ACN	  	68 111 279 906
			
	 	 	Address	  	 Ground Floor, 76 Kings Park Road, West Perth,
 Western
Australia

			
	 	 	Telephone	  	+61 8 9485 2770
			
	 	 	Fax	  	+61 8 9485 2779
			
	 	 	Attention	  	Company Secretary
		
	Security Providers	 	Each of the parties set out in schedule 1.
		
	Obligors	 	The Company and the Security Providers.
		
	Beneficiaries	 	 includes:
  
 •      each Senior Beneficiary; and
  
 •      each
Junior Beneficiary.

		
	Trust name	 	QMAG Security Trust
		
	Recitals	 	The Security Trustee is prepared to hold the Trust Fund as trustee for the Beneficiaries on the terms and subject to the conditions of this deed.

  

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	Security	 	 includes:
  
 •      the Guarantee;
  
 •      the Meridian Security;
  
 •      the
Shareholder Mortgage; and
  
 •      the Deed of Security.

		
	Business Day place(s)	 	Sydney and Brisbane
		
	Governing law	 	Queensland
		
	Date of deed	 	See Signing page

  
  

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 QMAG Security Trust 
  
 General terms 
  

	1	Trust 

  

	1.1	Declaration of trust 

  
 The Security Trustee declares that it holds the sum of A$10 and will hold the Trust Fund on trust at any time for the persons who are Beneficiaries at
that time. 
  

	1.2	Trust duration 

  
 The Trust begins on the date of this deed and, unless ended earlier, is to end on the earliest to occur of: 
  

	 	(a)	the day before the eightieth anniversary of the date of this deed; and 

  

	 	(b)	the Expiry Date. 

  

	1.3	Name of Trust 

  
 The trust established under this deed is to be known as the “QMAG Security Trust”. 
  

	2	Security Trustee 

  

	2.1	Appointment 

  
 Each Beneficiary irrevocably: 
  

	 	(a)	appoints the Security Trustee as its trustee in connection with each Security Trustee Document; and 

  

	 	(b)	confirms the authority of the Security Trustee to enter into each Security Trustee Document; and 

  

	 	(c)	authorises the Security Trustee to take the action on that Beneficiary’s behalf and to exercise the rights, powers and remedies and perform the obligations which are
specifically delegated to or conferred on the Security Trustee (whether for itself or for the benefit of a Beneficiary) by the Security Trustee Documents. 

  

	2.2	Exercise of rights, remedies, powers and discretions 

  
 The Security Trustee agrees to exercise the rights, remedies, powers and discretions and perform the obligations which are specifically delegated to or
conferred on it by each Security Trustee Document in accordance with this clause 2 (“Security Trustee”). 
  

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	2.3	Obligations 

  
 The Security Trustee has no obligations except those expressly set out or referred to in the Security Trustee Documents. 
  

	2.4	Amendments 

  
 The Security Trustee may not agree to any amendment to this clause 2.4 (“Amendments”), clause 2.6 (“Unanimous consent of all
Beneficiaries”) or (except as expressly contemplated therein) clause 6.4 (“Application of proceeds”) without the prior written consent of all Beneficiaries. 
  

	2.5	Majority of Senior Beneficiaries 

  
 The Security Trustee may not: 
  

	 	(a)	exercise in its capacity as Security Trustee a right, power or discretion in respect of an Obligor delegated to or conferred on it under any clause of a Security Trustee Document
which expressly refers to such exercise being subject to the consent or approval of the Majority of Senior Beneficiaries, all Senior Beneficiaries or any other specified majority of Senior Beneficiaries (as the case may be); or

  

	 	(b)	appoint or take steps to appoint any person as a receiver or receiver and manager in respect of the Secured Property of an Obligor or take steps to assume possession (whether
personally or through an agent) of such Secured Property as mortgagee in possession or otherwise; or 

  

	 	(c)	waive breaches of or otherwise excuse performance of any obligation of an Obligor under any Security Trustee Document; or 

  

	 	(d)	give an Acceleration Notice to any Beneficiary in respect of the Company in accordance with clause 5.4 (“Security Trustee to issue Acceleration Notices”); or

  

	 	(e)	subject to clause 2.6 (“Unanimous consent of all Beneficiaries”) and clause 2.8 (“Amendment of Security Trustee Documents”), agree to vary a Security Trustee
Document in respect of an Obligor, 

  
 without in
any such case the instructions of a Majority of Senior Beneficiaries or (where so specified) all Senior Beneficiaries or any other specified majority of Senior Beneficiaries. The Security Trustee must exercise such a right, power or discretion and
must so waive or excuse performance if so instructed by a Majority of Senior Beneficiaries or (where so specified) all Senior Beneficiaries or any other specified majority of Senior Beneficiaries 
  

	2.6	Unanimous consent of all Beneficiaries 

  
 The Security Trustee may not agree to any of the following matters with the Company in respect of a Finance Document: 
  

	 	(a)	in the case of financial accommodation provided under any Finance Document relating to any other additional Financial Indebtedness, to cause or allow the commitment to provide
financial accommodation to the Company under such Finance Document to increase in excess of the commitment at the time that agreement was entered into; or 

  

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	 	(b)	in the case of each Relevant Senior Hedging Contract, to: 

  

	 	(i)	increase the principal (or notional principal) amount committed under the Relevant Senior Hedging Contract, above the amount or quantity specified in the Accession Deed applicable
to that Relevant Senior Hedging Contract; or 

  

	 	(ii)	extend the maximum term of that Relevant Senior Hedging Contract in excess of the term specified in the relevant Accession Deed applicable to that Relevant Senior Hedging Contract;
or 

  

	 	(iii)	amend the events upon which that Relevant Senior Hedging Contract is capable of close out and termination; or 

  

	 	(c)	in the case of any additional Financial Indebtedness, then subject to clause 3.3 (“Obligation of Security Trustee”) to execute any Accession Deed allowing the provider of
that Financial Indebtedness to become a Beneficiary under this deed; 

  

	 	(d)	in the case of a Security, to release a Security (in whole or in part) given by an Obligor, unless required to do so by that Security or by law; or 

  

	 	(e)	agree to, cause or allow any facility limit under a Facility Agreement to increase in excess of the facility limit at the time that Facility Agreement was entered into,

  
  
 in each case, without the consent of all existing Beneficiaries. 
  

	2.7	Acknowledgment by all Beneficiaries 

  
 The Beneficiaries acknowledge and agree that they may not agree to vary the terms of the Senior Facility Agreement or Junior Facility Agreement (as
appropriate) to increase a facility limit or extend the term. 
  

	2.8	Amendment of Security Trustee Documents 

  

	 	(a)	Subject to clause 2.4 (“Amendments”), each Beneficiary authorises the Security Trustee to agree with the other parties to a Security Trustee Document to amend or to grant
any waiver, consent or approval under that Security Trustee Document if: 

  

	 	(i)	the amendment, waiver, consent or approval is not one for which the express instructions of all or a specified majority of Beneficiaries is required under the terms of that or
another Security Trustee Document; or 

  

	 	(ii)	the Security Trustee is satisfied that the variation is made to correct a manifest error or an error of a minor nature or that the variation is only of a formal or technical nature.

  

	 	(b)	Each Beneficiary is bound by any such amendment, waiver, consent or approval so agreed by the Security Trustee. 

  

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	2.9	Instructions, generally 

  
 Subject to the other terms of this clause 2 (“Security Trustee”) and except in respect of amounts due to the Security Trustee in its own right,
the Security Trustee agrees to act in accordance with the instructions (if any) of the Majority of Senior Beneficiaries or (where so specified) all Beneficiaries or any other specified majority of Beneficiaries in exercising its rights, powers and
discretions in respect of an Obligor under each Security Trustee Document. 
  

	2.10	Procedure for seeking instructions 

  

	 	(a)	In seeking to obtain instructions from an Instructing Group (whether pursuant to clauses 2.5 (“Majority of Senior Beneficiaries”) and 2.6 (“Unanimous consent of all
Beneficiaries”) or otherwise), the Security Trustee must send a notice to each relevant Beneficiary (except where the Instructing Group comprises only the Senior Beneficiaries, in which case a notice to the Senior Beneficiaries will suffice)
notifying it that the Security Trustee is seeking its instructions within such period as may be specified in the notice. 

  

	 	(b)	Where this clause 2 (“Security Trustee”) requires the positive instructions of a Beneficiary as a pre-condition to the Security Trustee taking any action, that instruction
will be deemed to have been given if that Beneficiary has failed to reply within 5 Business Days to a request for instructions from the Security Trustee. 

  

	2.11	Absence of instructions 

  

	 	(a)	In the absence of instructions from the relevant Instructing Group within the period specified in any request for instructions issued by the Security Trustee or where instructions
were neither sought nor given, the Security Trustee need not act but may exercise its rights, powers and discretions as it sees fit provided it does so in good faith in what it believes to be the best interests of the Senior Beneficiaries.

  

	 	(b)	Despite any other provision of this deed, if the Security Trustee considers it is in the best interests of the Senior Beneficiaries to exercise, or not to exercise, a power before
it is able to obtain instructions from the Senior Beneficiaries or any other specified majority of Beneficiaries it may (but is not obliged to) do so. This includes the exercise of a power to appoint a receiver pending obtaining instructions.

  

	2.12	Beneficiaries bound 

  
 Any instruction given to or action taken by the Security Trustee in accordance with this deed is binding on each Beneficiary and each Beneficiary
authorises the Security Trustee to give any consent and do any other matter or thing necessary or appropriate to give effect to the instruction. 
  

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	2.13	Reasonableness obligations 

  
 Each Beneficiary acknowledges and agrees that it will not unreasonably withhold or delay its agreement, approval or consent in respect of the exercise of
any discretion or right of approval conferred on the Security Trustee by a Security Trustee Document where it expressly provides that the Security Trustee will not unreasonably withhold or delay its agreement, approval or consent in relation to the
exercise of that discretion or right of approval. 
  

	2.14	Obligor not obliged to investigate Security Trustee’s authority 

  

	 	(a)	No Obligor need inquire whether instructions have been given to the Security Trustee by a relevant Instructing Group or as to the terms of any instructions.

  

	 	(b)	As between an Obligor on the one hand and the Beneficiaries and the Security Trustee on the other, all action taken by the Security Trustee under a Security Trustee Document will be
taken to be authorised under this clause 2 (“Security Trustee”). 

  

	2.15	Obligation to notify and provide copies 

  
 The Security Trustee agrees to forward to the Beneficiary a copy of any material notice or other instrument given by the Security Trustee to an Obligor in
connection with a Security Trustee Document. Each Obligor consents to this. 
  

	2.16	Acknowledgment from Beneficiaries 

  
 Each Beneficiary acknowledges in favour of the Security Trustee that: 
  

	 	(a)	it has not relied on any representation made by the Security Trustee to induce it to enter into any Security Trustee Document, any Finance Document or any Accession Deed; and

  

	 	(b)	it has made and will continue to make (without reliance on the Security Trustee and based on documents and information which it considers appropriate) its own independent
investigation of the financial condition and affairs of each Obligor; and 

  

	 	(c)	it has made its own appraisal of the creditworthiness of each Obligor; and 

  

	 	(d)	it has made (without reliance on or inducement to or from the Security Trustee) its own assessment and approval of the margin, fees or other return to be obtained under the Security
Trustee Documents and the Finance Documents to which it is a party. 

  

	2.17	Limits on obligations of Security Trustee 

  
 The Security Trustee has no duty or responsibility, either initially or on a continuing basis, to keep itself informed about the performance by any
Obligor of its obligations under the Security Trustee Documents or Finance Documents or to provide any Beneficiary with credit or other information with respect to any Obligor (whether coming into its possession either before 
  

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 or after accommodation is provided under a Security Trustee Document or Finance Document) except as
provided for in clause 2.15 (“Obligation to notify and provide copies”). 
  

	2.18	Disclosure 

  
 Nothing in this deed obliges the Security Trustee to disclose information relating to an Obligor or any other person, or otherwise take action, if the
disclosure or action would or, in the opinion of the Security Trustee, could constitute a breach of law, duty of secrecy or confidentiality or breach of an official directive of the Reserve Bank of Australia. 
  

	2.19	Exoneration 

  
 Neither the Security Trustee nor any of its directors, officers, employees, agents or attorneys is responsible to any Beneficiary: 
  

	 	(a)	because an Obligor fails to perform its obligations under any Security Trustee Document or Finance Document; or 

  

	 	(b)	for the financial condition of an Obligor; or 

  

	 	(c)	because any statement, representation or warranty in any Security Trustee Document or Finance Document is incorrect or misleading; or 

  

	 	(d)	for the effectiveness, genuineness, validity, enforceability, admissibility in evidence or sufficiency of any Security Trustee Document or Finance Document or any certificate,
report, document or other instrument executed or delivered in connection with any Security Trustee Document or Finance Document; or 

  

	 	(e)	for acting in accordance with the instructions given under this clause 2 (“Security Trustee”) of an Instructing Group to so act or for refraining from acting in accordance
with the instructions of an Instructing Group to so refrain from acting; or 

  

	 	(f)	because it complies with an official directive of the Reserve Bank of Australia. 

  

	2.20	Officers, etc. of Security Trustee 

  

	 	(a)	Neither the Security Trustee nor any of its directors, officers, employees, agents or attorneys is responsible to the Beneficiaries for any action taken or omitted by any of them in
connection with any Security Trustee Document or any Finance Document except to the extent caused by its gross negligence or wilful misconduct. 

  

	 	(b)	In any event, no party to this deed nor any Beneficiary may take any proceedings against any director, officer, employee, agent or attorney of the Security Trustee in respect of any
claim it might have against the Security Trustee or in respect of any act or omission of any kind (including gross negligence or wilful misconduct) by that director, officer, employee, agent or attorney in relation to this deed or any other Finance
Document. 

  

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	2.21	Security Trustee not responsible for Beneficiary 

  
 The Security Trustee is not responsible to an Obligor because a Beneficiary fails to observe its obligations under any Security Trustee Document or any
Finance Document. 
  

	2.22	Reliance 

  
 In relation to any Security Trustee Document and any Finance Document, the Security Trustee may rely on any communication or instrument believed by it to
be genuine and correct and to have been signed or sent by the proper person, and may rely as to legal or other professional matters on opinions and statements of any legal or professional advisers selected or approved by it. 
  

	2.23	Delegation 

  
 The Security Trustee may employ agents and attorneys. 
  

	2.24	Indemnity in respect of claims for payment 

  

	 	(a)	If the Security Trustee is entitled to receive or claim a payment from an Obligor under any Reimbursement Provision and does not receive it within 7 days of it becoming payable or
the claim being made, each Beneficiary, severally, in accordance with the proportion which its Exposure to the Company bears to the Aggregate Exposure to the Company, indemnifies the Security Trustee against non-receipt of that payment and against
costs incurred by the Security Trustee in connection with funding the amount not paid. 

  

	 	(b)	Payment by the Beneficiaries does not relieve the relevant Obligor of its obligation. 

  

	 	(c)	A payment by a Beneficiary under this clause constitutes a loan of equal amount by the Beneficiary to the Company except to the extent that the Company has paid the relevant payment
to the Security Trustee. 

  

	 	(d)	The Company agrees to repay any such loan that is made to it to the Security Trustee for the account of that Beneficiary on demand and indemnifies the Beneficiary against any
liability or loss arising from, and any costs, charges and expenses incurred in connection with the Beneficiary making the payment (including, without limitation, interest, fees or other amounts paid or payable on account of funds raised to make a
payment under this clause and loss in liquidating or employing deposits from third parties acquired to make or fund a loan made to the Company under this clause). The Company agrees to pay any amount which becomes payable by the Company under this
indemnity to the Security Trustee for the account of that Beneficiary. 

  

	2.25	Indemnity in respect of acting as Security Trustee 

  
 Each Beneficiary, severally, in accordance with the proportion which its Exposure bears to the Aggregate Exposure to the Company, indemnifies the Security
Trustee against any liability or loss arising from, or incurred in connection with, and any costs, charges and expenses arising from or incurred 
  

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 in connection with it entering into the Security Trustee Documents and acting as Security Trustee under
the Security Trustee Documents except to the extent that the loss, cost, charge or expense is caused by gross negligence or wilful misconduct on the part of the Security Trustee or any employee, officer, agent or contractor of the Security Trustee.

  

	2.26	Funding of Security Trustee 

  

	 	(a)	If the Security Trustee is instructed by an Instructing Group or otherwise proposes to exercise a right, power or discretion in respect of an Obligor under a Security Trustee
Document which it reasonably considers could result in that Obligor being obliged to make a payment to the Security Trustee under any Reimbursement Provision, the Security Trustee need not act until the Beneficiaries with an Exposure to the Company
place it in funds equivalent to the amount which the Security Trustee reasonably determines will become the Obligors’ liability under that Reimbursement Provision in respect of that act. 

  

	 	(b)	Each Beneficiary agrees to fund the Security Trustee pro rata in accordance with the proportion which its Exposure to the Company bears to the Aggregate Exposure to the Company. The
payment by the Beneficiaries does not relieve any Obligor of its obligation under any Reimbursement Provision. If the Security Trustee subsequently receives a payment from the Company in respect of that act under that Reimbursement Provision, it
agrees to refund to the Beneficiaries amounts paid under this clause pro-rata in accordance with amounts paid to it by each Beneficiary. 

  

	2.27	Beneficiary fails to fund Security Trustee 

  
 If a Beneficiary fails to place the Security Trustee in funds under clause 2.26 (“Funding of Security Trustee”) within a period determined by
the Security Trustee to be reasonable, the Security Trustee must ask each other Beneficiary whether it wishes to fund the defaulting Beneficiary’s share. If one or more other Beneficiaries agree to so fund and do so then the obligations of the
Beneficiaries under clause 2.26 (“Funding of Security Trustee”) will be taken to be satisfied. 
  

	2.28	Funding of Security Trustee 

  

	 	(a)	If the Security Trustee recovers an amount as a consequence of exercising a right, power or discretion after being instructed by an Instructing Group and is placed in funds in
accordance with clause 2.26 (“Funding of Security Trustee”) then any Beneficiary which was obliged to, but does not, place the Security Trustee in funds in respect of that instruction (as referred to in clause 2.26 (“Funding of
Security Trustee”)) is not entitled to receive any part of the Recovered Money until the Exposure of each Beneficiary which does place the Security Trustee in funds is paid in full under clause 6.4 (“Application of proceeds”).

  

	 	(b)	The amount which otherwise would have been distributed to the Beneficiary not entitled to receive it is to be distributed to each Beneficiary who funds the defaulting
Beneficiary’s share, pro-rata in the proportions that they so fund. 

  

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	 	(c)	In giving effect to this clause, the Security Trustee is to be taken to have made a determination under clause 6.4 (“Application of proceeds”) of this deed to vary the
manner of distribution under clause 6.4 (“Application of proceeds”) with the consent of all Beneficiaries. 

  

	2.29	Security Trustee as Beneficiary 

  
 With respect to its own Exposure (if any), the Security Trustee has the same rights and obligations under this deed as the other Beneficiaries and may
exercise them and agree to observe them as though it were not observing the duties and functions delegated to it under this deed as Security Trustee and the term “Beneficiaries” includes the Security Trustee in its capacity as a
Beneficiary. 
  

	2.30	Other business with the Company 

  
 Without any liability to account to the Beneficiaries or having the benefit of the Security, the Security Trustee may (in its personal capacity):

  

	 	(a)	accept deposits from, lend money to, assume liabilities in relation to and generally engage in any kind of banking, trust or other business with any of the Obligors or any Related
Entity of the Obligors or any Beneficiary or any Related Entity of a Beneficiary, as if it were not the Security Trustee; and 

  

	 	(b)	accept fees and other consideration from an Obligor or any Related Entity of an Obligor for services in connection with any arrangement referred to in clause 2.30(a) (“Other
business with the Company”) without having to account for them to the Beneficiaries. 

  

	2.31	Exercise of rights by Beneficiaries 

  
 Except as otherwise expressly provided, a Beneficiary may not exercise a right, power or discretion under a Security Trustee Document unless: 

 

	 	(a)	an Instructing Group has instructed the Security Trustee to exercise the right, power or discretion under this clause 2 (“Security Trustee”); and 

 

	 	(b)	the Security Trustee has failed to exercise the right, power or discretion within a reasonable time after being instructed by the Instructing Group and placed in funds in accordance
with clause 2.26 (“Funding of Security Trustee”). 

  

	2.32	Meetings of Beneficiaries 

  

	 	(a)	Subject to the provisions of this deed, the Security Trustee may from time to time establish such procedures for the conduct and regulation of such meetings of Senior Beneficiaries
or Beneficiaries (as the case may be) as it considers appropriate. 

  

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	 	(b)	As close as possible to the date of any meeting of Senior Beneficiaries or Beneficiaries (as the case may be) convened for the purpose of obtaining instructions, the Security
Trustee must (for the purpose of determining voting entitlements) determine the Exposure of each relevant Beneficiary as at 5.00pm on the Business Day immediately preceding the proposed date of that meeting. For this purpose, the Security Trustee
may request that the relevant Beneficiaries provide it with such information and assistance as it reasonably requires in order to make that determination. A decision by the Security Trustee on the Exposure of a Beneficiary is, in the absence of
manifest error, final and binding on all Beneficiaries. 

  

	2.33	Force majeure 

  

	 	(a)	Despite any other provision of this deed, the Security Trustee need not act (whether or not on instructions from any one or more of the Beneficiaries) if it is impossible for the
Security Trustee so to act due to causes beyond its control (but not occasioned by the gross negligence or misconduct of the Security Trustee) including, without limitation, civil war, insurrections, riots, fires, floods, explosions, earthquakes,
acts of God or the public enemy, labour disputes and any statute, order, regulation, proclamation, ordinance, demand or requirement of any Governmental Agency imposed after the date of this deed. 

  

	 	(b)	The Security Trustee must notify the Beneficiaries as soon as possible after it determines that it is unable to act on any such instructions. The Security Trustee must promptly
appoint an attorney or agent to act in its place for the duration of any such force majeure event. 

  

	 	(c)	The Security Trustee has no responsibility or liability whatsoever for any loss or expense suffered by any party as a result of its not so acting for so long as the impossibility
continues. In any such case the Security Trustee must make reasonable efforts to avoid or remove such causes of non-performance and must continue performance of its obligations under this deed with dispatch whenever the causes are removed.

  

	2.34	Fees 

  
 Where the Security Trustee acts in accordance with the proper instructions of an Instructing Group in relation to exercising any rights, powers or duties under a Security or a Security Trustee Document in relation to
an Obligor, the Company agrees to pay the Security Trustee’s reasonable out-of-pocket expenses and reimburse the Security Trustee for its internal administration charges in connection with any such exercise or in connection with the
administration of its rights and obligations under this deed. 
  

	2.35	Security Trustee’s further duties 

  
 Subject to this deed, the Security Trustee must comply with the duties imposed on it by this deed and must: 
  

	 	(a)	act continuously as trustee of the Trust until the Security Trustee’s appointment is terminated in accordance with this deed or until it has retired or been removed in
accordance with this deed; 

  

 13 

	 	(b)	exercise all due diligence and vigilance in carrying out its functions and duties under this deed; 

  

	 	(c)	subject to this deed, retain the Trust Fund in safe custody and hold it on trust for the Beneficiaries upon the terms of this deed; and 

  

	 	(d)	not sell, mortgage, charge or part with the possession of any part or the whole of the Trust Fund (or permit any of its officers, agents and employees to do so) except as permitted
or contemplated by any Security Trustee Document. 

  

	2.36	Indemnity 

  
 The Company indemnifies each Beneficiary on demand against any liability or loss arising from, and any costs, charges and expenses incurred in connection
with that Beneficiary making any payment to the Security Trustee under clause 2.25 (“Indemnity in respect of acting as Security Trustee”) or clause 2.26 (“Funding of Security Trustee”) (including, without limitation, interest,
fees or other amounts paid or payable on account of funds raised to make a payment under clause 2.25 (“Indemnity in respect of acting as Security Trustee”) or clause 2.26 (“Funding of Security Trustee”). The Company agrees to pay
any amount which becomes payable by the Company under this indemnity to the Security Trustee for the account of that Beneficiary. 
  

	3	New Beneficiaries 

  

	3.1	New Beneficiaries 

  
 A person who is not a Beneficiary at the date of this deed may become a Senior Beneficiary or Junior Beneficiary (“New Beneficiary”) if
an Accession Deed is executed by that person and the Security Trustee in the manner contemplated by this clause 3 (“New Beneficiaries”). 
  

	3.2	Company to prepare Accession Deed 

  
 Where the Company wishes a person to become a New Beneficiary, the Company must prepare the relevant original Accession Deed (in the appropriate number of
counterparts) and make it available to the Security Trustee for execution under clause 3.3 (“Obligation of Security Trustee”). 
  

	3.3	Obligation of Security Trustee 

  
 Where the proposed New Beneficiary is: 
  

	 	(a)	a Senior Beneficiary, and the Aggregate Senior Exposure, after taking into account the Exposure in relation to the proposed New Beneficiary and the reduction in Exposure due to any
Senior Beneficiary contemporaneously ceasing to be a Senior Beneficiary is not greater than the Aggregate Senior Exposure prior to the New 

  

 14 

 Beneficiary becoming a Senior Beneficiary then, the Security Trustee must, subject to the instructions
of the existing Senior Beneficiaries under clause 2.5 (“Majority of Senior Beneficiaries”), sign any Accession Deed presented to it by the Company under clause 3.2 (“Company to prepare Accession Deed”) but only if: 
  

	 	(i)	the Accession Deed relates to a Senior Hedge Provider, and the Security Trustee is reasonably satisfied that the contract to which the Hedge Provider is a party is a Hedging
Contract; or 

  

	 	(ii)	the Accession Deed relates to a person who is a provider (or agent or trustee for providers) of additional Financial Indebtedness which is approved by the Senior Beneficiaries.

  

	 	(b)	a Junior Beneficiary, the Security Trustee must, sign any Accession Deed presented to it by the Company under clause 3.2 (“Company to prepare Accession Deed”) but only if
the proposed new Junior Beneficiary is approved by all Beneficiaries. 

  

	3.4	Security Trustee may execute for other parties 

  
 Each Obligor and each Beneficiary irrevocably and unconditionally authorises the Security Trustee, its Authorised Officers and any delegates and attorneys
of them, for valuable consideration received, to sign any Accession Deed on its behalf which is presented to it under clause 3.2 (“Company to prepare Accession Deed”). 
  

	3.5	When effective 

  
 On any Accession Deed being signed by the New Beneficiary and countersigned by the Security Trustee: 
  

	 	(a)	the New Beneficiary is taken to be a Senior Beneficiary or a Junior Beneficiary (as the case may be) for the purposes of this deed in respect of the Finance Document specified in
the Accession Deed with effect from the date of this deed; and 

  

	 	(b)	the New Beneficiary is taken to be bound by the terms of this deed; and 

  

	 	(c)	any document referred to in that Accession Deed as a New Junior Finance Document or New Senior Finance Document will be taken to be a Junior Finance Document or Senior Finance
Document respectively, for the purposes of this deed and the Security. 

  

	4	Ceasing to be a Beneficiary 

  

	4.1	Company request 

  
 The Company may request a Beneficiary to cease being a Beneficiary if, at the time of the Company’s request, the aggregate Exposure of the relevant
Beneficiary to the Company is nil and the Company has no further obligations to the relevant Beneficiary under any Finance Document. The Beneficiary must provide the Security Trustee with a written notice stating that it agrees to cease being a
Beneficiary. 
  

 15 

	4.2	Beneficiary notice 

  
 A Beneficiary may also, at its option, provide the Security Trustee with a written notice stating that it wishes to cease to be a Beneficiary (regardless
of its Exposure at that time). 
  

	4.3	Beneficiary undertaking 

  
 The relevant Beneficiary undertakes to do all things necessary to give effect to the cessation of it being a Beneficiary under clause 4.1 (“Company
request”) or 4.2 (“Beneficiary notice”). 
  

	4.4	Effective on receipt of notice 

  
 A Beneficiary ceases to be a Beneficiary on receipt by the Security Trustee of a notice from the Beneficiary in accordance with paragraph clause 4.1
(“Company request”) or 4.2 (“Beneficiary notice”). 
  

	5	Enforcement  

  

	5.1	Events of Default 

  
 If an Event of Default occurs, the Security Trustee must: 
  

	 	(a)	seek the instructions of all the Senior Beneficiaries in relation to the enforcement of the Security Trustee Documents; and 

  

	 	(b)	act in accordance with the instructions (if any) of the Majority of Senior Beneficiaries or otherwise act in accordance with clause 2 (“Security Trustee”), provided that
any Recovered Money must be distributed in accordance with clause 6 (“Distribution of Recovered Money”). 

  

	5.2	Security Trustee to advise Voting Day 

  
 When seeking instructions from a Beneficiary, the Security Trustee must advise each relevant Beneficiary of the date (“Voting Day”) on
which and the time by which on that date (not later than 11.30am) instructions must be given to the Security Trustee. The Voting Day may not be earlier than the second Business Day after the date of the Security Trustee’s notice unless each
Beneficiary otherwise consents. 
  

	5.3	Beneficiaries to advise Exposures 

  
 When a Beneficiary gives instructions to the Security Trustee, it must advise the Security Trustee in writing of its Exposure as at 5.00pm on the Business
Day prior to the Voting Day. In the case of any Beneficiary which is a Hedge Provider under a Relevant Hedging Contract which has not been closed out and terminated, its Exposure must be calculated as if all Relevant Hedging Contracts with the
Company were closed out or terminated on the Business Day prior to the Voting Day. 
  

 16 

	5.4	Security Trustee to issue Acceleration Notices 

  
 If the Security Trustee is instructed, in accordance with clause 5.1 (“Events of Default”), to take steps to enforce or realise the Security,
the Security Trustee must issue an Acceleration Notice to all of the Beneficiaries with an Exposure to the Company no later than 4.30pm on the Voting Day. 
  

	5.5	Beneficiaries to comply with Acceleration Notices 

  
 Each Beneficiary agrees to comply with the terms of that Acceleration Notice and to exercise all rights and powers available to it (if any) under each
Finance Document and otherwise at law in order to comply with, or procure compliance with, the direction given by the Security Trustee in that notice. 
  

	5.6	Only Security Trustee may take proceedings to enforce 

  
 Subject to clause 5.5 (“Beneficiaries to comply with Acceleration Notices”), until such time as the Securities have been fully discharged by the
Security Trustee, no Beneficiary other than the Security Trustee (in that capacity) is entitled to take any proceedings against the Company, whether at law or in equity (including proceedings for the winding up of the Company), to recover any of its
Exposure without the consent of a Majority of Senior Beneficiaries. 
  

	5.7	Junior Beneficiary enforcement 

  
 If RCF becomes the Senior Beneficiary in accordance with clause 7.4(a), the following will apply: 
  
 If Newmont becomes entitled to a payment of money pursuant to clause 2.2 of
the Subordination Deed then if an Event of Default (relating to a payment default under any Junior Finance Document) is still continuing at the expiry of the RCF Decision Period and the Security Trustee has not been instructed to issue Acceleration
Notices in accordance with clause 5.4 (“Security Trustee to issue Acceleration Notices”) then, Newmont will be entitled to instruct the Security Trustee to issue an Acceleration Notice, and (if required) instruct the Security Trustee to
take any action in relation to the enforcement of the Security Trustee Documents or instruct the Security Trustee to take any proceedings against the Company, whether at law or in equity (including proceedings for the winding up of the Company), to
recover the Aggregate Exposure of all Beneficiaries to the Company. 
  

	6	Distribution of Recovered Money 

  

	6.1	Recovered Money 

  
 If at any time the Security Trustee receives money being the proceeds of enforcement or realisation of a Security, the money must be distributed by the
Security Trustee in accordance with clause 6.4 (“Application of proceeds”). 
  

	6.2	Suspense Account 

  
 Unless a Majority of Senior Beneficiaries decides otherwise, money referred to in clause 6.1 (“Recovered Money”) does not form part of the
Recovered 
  

 17 

 Money on a Recovered Money Distribution Date if the money is placed to the credit of a suspense account
in the name of the Security Trustee in order to preserve rights to prove in the bankruptcy or liquidation of any person. 
  

	6.3	Interest bearing 

  
 Any suspense account to which money is placed under clause 6.2 (“Suspense Account”) is to be an interest bearing account selected reasonably by
the Security Trustee. Interest earned on the account is to be treated as Recovered Money. 
  

	6.4	Application of proceeds 

  
 Recovered Money in respect of the Company is to be applied by the Security Trustee as soon as practicable after the Security Trustee receives it as
follows: 
  

	 	(a)	first, to the extent that the Recovered Money represents money recovered under a Security which provides for the appointment of a Receiver (as defined in that Security), in
the order provided for under the Security up to and including the category of satisfying the remuneration of the Receiver (as defined in that Security); 

  

	 	(b)	second, towards satisfaction of all fees payable to the Security Trustee under this deed, together with all costs, charges and expenses incurred by the Security Trustee in or
incidental to the exercise or performance or attempted exercise or performance of any of the rights, powers or remedies conferred under this deed, a Security Trustee Document, the Security or any Finance Document in respect of an Obligor;

  

	 	(c)	third, towards satisfaction of any other expenses or outgoings in connection with any receivership under or the enforcement of this deed, the Security, a Security Trustee
Document or any Finance Document in respect of an Obligor; 

  

	 	(d)	fourth, towards payment to the Security Trustee and any other trustee or agent under any Senior Finance Document on a pari passu basis of any money due to them, in their
respective capacities as trustee or agent for any of the Senior Beneficiaries under this deed, a Security Trustee Document, the Security or any Senior Finance Document, in respect of an Obligor; 

  

	 	(e)	fifth, towards payment to each Beneficiary on a pari passu basis of an amount owing to or for the account of the Beneficiary in respect of the Company under clause 2
(“Security Trustee”) of this deed (in particular, under clauses 2.24 (“Indemnity in respect of claims for payment”) to 2.26 (“Funding of Security Trustee”) inclusive); 

  

	 	(f)	sixth, towards satisfaction of the Exposure of each Senior Beneficiary to the Company in the same proportion as that Exposure bears to the Aggregate Senior Exposure to the
Company; 

  

	 	(g)	seventh, towards payment to the Security Trustee and any other trustee or agent under any Junior Finance Document on a pari passu basis of any money due to them, in their
respective capacities as 

  

 18 

 trustee or agent for any of the Junior Beneficiaries under this deed, a Security Trustee Document, the
Security or any Junior Finance Document, in respect of an Obligor; 
  

	 	(h)	eighth, towards satisfaction of the Exposure of RCF in aggregate up to an amount equal to the Tranche 2 Sponsor Subordinated Debt; 

  

	 	(j)	ninth, towards satisfaction of the respective Exposure of the Company to RCF under the Tranche 1 Sponsor Subordinated Debt and Newmont under the Newmont Subordinated Debt on
a pari passu basis in accordance with the proportion that each of their respective Exposures bear to the aggregate of their Exposures to the Company; 

  

	 	(k)	tenth, to each holder of an Encumbrance of which the Security Trustee is aware and which ranks after the Security in relation to the relevant Secured Property, to the extent,
and in order, of priority; and 

  

	 	(l)	finally, as to any balance remaining, to the Company, 

  
 or in such other order or such other manner as all Beneficiaries agree. 
  

	7	Replacement of Security Trustee 

  

	7.1	Removal or retirement 

  

	 	(a)	The Senior Beneficiaries (other than the Senior Financier and any Related Entity) may remove the Security Trustee by each such Senior Beneficiary giving the Security Trustee and the
Company 30 days notice of their intention to do so. 

  

	 	(b)	The Security Trustee may retire as Security Trustee, with the consent of all the Senior Beneficiaries, by giving to the Company and each Senior Beneficiary not less than 30
days’ notice of its intention to do so. 

  

	 	(c)	Subject to clause 7.4 (“Deemed resignation of Security Trustee”) no removal or retirement takes effect unless there has been appointed as a successor Security Trustee
either: 

  

	 	(i)	a Beneficiary (or Related Entity of a Beneficiary) nominated by the Senior Beneficiaries (or, failing such a nomination; 

  

	 	(ii)	a reputable and experienced bank or financial institution or Related Entity of it nominated by the Security Trustee, 

  
 and the successor Security Trustee has obtained title to each Security in
its capacity as Security Trustee. 
  

	 	(d)	At the request of the Security Trustee, the Senior Beneficiary having the largest aggregate Exposure to the Company or, if two or more Senior Beneficiaries hold equal largest
aggregate Exposures, that one of them nominated by the Security Trustee, agrees to act as successor Security Trustee. 

  

 19 

	7.2	Discharge of obligations 

  
 Subject to clause 7.3 (“Execution of documents”), when a successor Security Trustee is appointed, the retiring or removed Security Trustee is
discharged (without prejudice to any accrued right or obligation) from any further obligation under this deed and each Security Trustee Document. The new Security Trustee, the Beneficiaries and the Obligors have the same rights and obligations among
themselves as they would have had if the new trustee had been a party to this deed and each Security Trustee Document. 
  

	7.3	Execution of documents 

  
 The retiring or removed Security Trustee agrees, at its own expense, if it is removed, and otherwise at the cost of each Beneficiary pro rata in
accordance with the proportion which its Exposure bears to the Aggregate Exposure to the Company, to execute and cause its successors to execute documents and do everything else necessary or appropriate to transfer the Trust Fund into the name of
the new Security Trustee and to ensure that all public registers record the new Security Trustee as the trustee of the Trust Fund. 
  

	7.4	Deemed resignation of Security Trustee 

  

	 	(a)	If the Exposure of all Senior Beneficiaries to the Company is nil and the Company has no further obligations to the Senior Beneficiaries under any Finance Document, then RCF shall
automatically become the Senior Beneficiary and RCF shall nominate a person or entity as successor Security Trustee. RCF agrees that, in the event that it becomes the Senior Beneficiary in accordance with this clause 7.4(a), it will not exercise any
right or power conferred upon it in that capacity in a manner that is inconsistent with, or that does not give full effect to, the rights of Newmont under: 

  

	 	(i)	the Subordination Deed (in particular pursuant to clause 2.2 thereof) to receive payment under the Newmont Subordinated Debt in accordance with clause 23.7 of the Senior Facility
Agreement; and 

  

	 	(ii)	this deed (in particular pursuant to clause 6.4(j)) to receive payment under the Newmont Subordinated debt pari passu with the Tranche 1 Sponsor Subordinated Debt.

  

	 	(b)	Upon a nomination being made in accordance with clause 7.4(a) then, the Security Trustee will be taken to have resigned in favour of that nominated successor Security Trustee.

  

	 	(c)	The procedures in clauses 7.1 (“Removal or retirement”) to 7.3 (“Execution of documents”) inclusive will apply to the appointment of the successor Security
Trustee. 

  

	 	(d)	The successor Security Trustee must pay all costs in relation to its appointment under this clause 7.4 (“Deemed resignation of Security Trustee”).

  

	 	(e)	The Security Trustee does not give any warranty to the successor Security Trustee in relation to the validity, enforceability or sufficiency of any Security Trustee Document, any
Security or any other document. 

  

 20 

	8	Acknowledgment 

  
 Each Obligor acknowledges and agrees to the provisions of this deed and undertakes to co-operate in the implementation of the provisions of this deed.

  

	9	Notices 

  
 A notice, approval, consent or other communication in connection with this deed may be given in accordance with any notice provision in a Security or a
Finance Document. 
  

	10	Governing law, jurisdiction and service of process 

  

	10.1	Governing law and jurisdiction 

  
 This deed is governed by the law in force specified in the Details and each party irrevocably and unconditionally submits to the non-exclusive
jurisdiction of the courts of that place. Each party waives any right it has to object to an action being brought in those courts including, without limitation, by claiming that the action has been brought in an inconvenient forum or that those
courts do not have jurisdiction. 
  

	10.2	Delivery of documents 

  
 Without preventing any other mode of service, any document in an action (including, without limitation, any writ of summons or other originating process
or any third or other party notice) may be served on any party by being delivered to or left for that party at its address for service of notices under clause 9 (“Notices”) or in the case of RCF, with its Process Agent. 
  

	10.3	Appointment of Process Agent 

  
 RCF irrevocably appoints the Process Agent as its process agent to receive any document in an action in connection with this agreement. 
  
 If for any reason the Process Agent ceases to be able to act as process
agent, RCF must promptly appoint another person in the place specified for governing law in the Details as process agent. 
  
 RCF agrees that the service of documents on the Process Agent or any other person appointed under this clause will be sufficient service on it.

  

 21 

	11	Interpretation 

  

	11.1	Definitions 

  
 The following words have these meanings in this deed, unless the contrary intention appears. 
  
 Acceleration Notice means, in respect of the Company, a notice given to a Beneficiary by the Security Trustee (in a form determined by the Security
Trustee) which directs the Beneficiary to take all reasonable steps open to it (including, without limitation, serving any notice or making any declaration or demand) so that: 
  

	 	(a)	the obligations of the Company under or in connection with each Finance Document to which that Beneficiary is a party are accelerated in respect of the Company (including, without
limitation, closing out any unexpired Relevant Hedging Contract) and become due for payment as soon as possible thereafter; and 

  

	 	(b)	the obligations of the Beneficiary under that Finance Document are, to the maximum extent possible, terminated immediately. 

  
 Accession Deed means a deed in or substantially in the form of
schedule 2 to this deed executed in accordance with clause 3 (“New Beneficiaries”). 
  
 Aggregate Exposure means, in respect of the Company at any time, the aggregate Exposure of all Beneficiaries to the Company at that time. 
  
 Aggregate Senior Exposure means, in respect of the Company at any time, the aggregate Exposure of all Senior
Beneficiaries to the Company at that time. 
  
 Beneficiary
means, at any time: 
  

	 	(a)	each Senior Beneficiary; 

  

	 	(b)	each Junior Beneficiary; and 

  

	 	(c)	the Security Trustee (on its own account and for the account of each person referred to in paragraphs (a) to (b) (inclusive)), 

  
 in each case, in its capacity as a party to the Finance Documents only.

  
 Details means the section of this deed entitled
“Details”. 
  
 Encumbrance means any:

  

	 	(a)	security for the payment of money or performance of obligations, including a mortgage, charge, lien, pledge, trust, power or title retention or flawed deposit arrangement; or

  

	 	(b)	right, interest or arrangement which has the effect of giving another person a preference, priority or advantage over creditors including any right of set-off; or

  

	 	(c)	right that a person (other than the owner) has to remove something from land (known as a profit à prendre), easement, public right of way, restrictive or positive covenant,
lease, or licence to use or occupy; or 

  

	 	(d)	third party right or interest or any right arising as a consequence of the enforcement of a judgment, 

  

 22 

 or any agreement to create any of them or allow them to exist. 
  
 Event of Default means each event, circumstance or other act, matter
or thing which enables a Beneficiary to accelerate any indebtedness, terminate any commitments or terminate early any financial accommodation or transaction under a Finance Document. 
  
 Expiry Date means the date which is 7 months after the Security Trustee determines that the Aggregate Exposure of the
Beneficiaries to the Company is nil. 
  
 Exposure means,
subject to clauses 11.5 (“Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 1992”) and 11.6 (“Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 2002”)at any time in
respect of a Beneficiary and the Company, the aggregate of all amounts which then are due for payment, owing but not currently due for payment, or contingently owing or remain unpaid under a Finance Document by the Company. 
  
 Facility Agreement means each of the Senior Facility Agreement and
the Junior Facility Agreement. 
  
 Finance Documents means
each of the Senior Finance Documents and the Junior Finance Documents. 
  
 Financial Indebtedness has the meaning given to that term in the Senior Facility Agreement. 
  
 Guarantee means the guarantee and indemnity given by each Security Provider to the Senior Beneficiaries pursuant to clause 25 of the Senior
Facility Agreement. 
  
 Hedge Provider means the Senior
Financier or Related Entity of the Senior Financier or any other financial institution with whom the Company hedges its interest rate or currency exposure. 
  
 Hedging Contract means any agreement or arrangement entered into by the Company with a Hedge Provider. 
  
 ISDA Master Agreement 1992 means the 1992 multicurrency cross
border version of the master agreement published by the International Swap Dealers Association Inc. as updated from time to time. 
  
 ISDA Master Agreement 2002 means the 2002 multicurrency cross border version of the master agreement published by the International Swap
Dealers Association Inc. as updated from time to time. 
  
 Instructing Group means any of the Senior Financier, a Majority of Senior Beneficiaries, a Majority of Beneficiaries or any other specified majority of Senior Beneficiaries or Beneficiaries, as applicable. 
  
 Junior Beneficiary means: 
  

	 	(a)	RCF; 

  

 23 

	 	(b)	Newmont; and 

  

	 	(c)	any person recognised as a Junior Beneficiary under clause 3.5 (“When effective”). 

  
 Junior Facility Agreement means: 
  

	 	(a)	the agreement entitled “QMAG - RCF Subordinated Facility Agreement” entered into on or about the date of this deed between RCF, the Security Provider as guarantor and the
Company; and 

  

	 	(b)	the agreement entitled “QMAG - Newmont Subordinated Facility Agreement” entered into on or about the date of this deed between Newmont, the Security Provider as guarantor
and the Company. 

  
 Junior Finance Document
means: 
  

	 	(a)	the Junior Facility Agreement and each document defined as a “Finance Document” in it; and 

  

	 	(b)	any agreement specified as a Junior Finance Document in the “Details” section of an Accession Deed. 

  
 Majority of Beneficiaries means, in respect of an Obligor,
Beneficiaries the aggregate of whose Exposures to the Company equals or exceeds 66 2/3% of the Aggregate Exposure
to the Company. 
  
 Majority of Senior Beneficiaries
means, in respect of an Obligor, Senior Beneficiaries the aggregate of whose Exposures to the Company equals or exceeds 66  2/3% of the Aggregate Senior Exposure to the Company. 
  
 Meridian Security means the deed entitled “Senior Deed of Charge” dated on or about the date of this deed between Rocky Leasing Pty Ltd and the Security Trustee. 
  
 Newmont means the party described as such in the Details. 

 
 Newmont Subordinated Debt has the same meaning given to that term
in the Senior Facility Agreement. 
  
 Obligor means each
party described as such in the Details. 
  
 Process Agent
means Clayton Utz, QV1, 250 St George’s Terrace, Perth WA 6000, Attention Peter Wilkes (Reference 80013608, facsimile +61 8 9481 3095, phone +61 8 9426 8000. 
  
 RCF means the party described as such in the Details. 
  
 RCF Decision Period means the period of 45 days from the date that a Junior Beneficiary declares that all moneys
owing under the Junior Finance Documents are due and payable. 
  
 Recovered Money means, in respect of an Obligor and any Security, the aggregate amount received in accordance with clause 6 (“Distribution of Recovered Money”) in respect of an Obligor which has not been distributed under
this deed. 

  

 24 

 Recovered Money Distribution Date means a day on which Recovered Money is available for
distribution in accordance with clause 6.4 (“Application of proceeds”). 
  
 Reimbursement Provision means a provision of this deed, the Subordination Deed or in any Security which entitles the Security Trustee to be reimbursed by an Obligor for fees, costs, charges and expenses
incurred by it in connection with a Security Trustee Document. 
  
 Relevant Hedging Contract means each of a Relevant Senior Hedging Contract and (if applicable) a Relevant Junior Hedging Contract. 
  
 Relevant Junior Hedging Contract means a Hedging Contract specified as a Junior Finance Document in an Accession Deed. 
  
 Relevant Senior Hedging Contract means a Hedging Contract:

  

	 	(a)	to which the Senior Hedge Counterparty as at the date of the Senior Facility Agreement is a party; or 

  

	 	(b)	specified as a Senior Finance Document in an Accession Deed. 

  
 Secured Property means the property charged or mortgaged by the Security. 
  
 Security means the benefit of any Encumbrance which forms part of the Trust Fund. 
  
 Security Provider means each person described as such in the Details.

  
 Security Trustee Documents means: 
  

	 	(a)	this deed; 

  

	 	(b)	the Subordination Deed; 

  

	 	(c)	each Finance Document which creates or evidences a Security; 

  

	 	(d)	each Accession Deed; 

  

	 	(e)	any deed, agreement or other instrument under which a person consents to the grant of any Encumbrance in favour of the Security Trustee; and 

  

	 	(f)	any instrument which the Security Trustee and the Company agree is connected with any of them. 

  
 Senior Beneficiary means: 
  

	 	(a)	the Senior Financier; 

  

	 	(b)	the Senior Hedge Counterparty; 

  

 25 

	 	(c)	each Hedge Provider who is recognised as a Senior Beneficiary under clause 3.5 (“When effective”); and 

  

	 	(d)	any other person recognised as a Senior Beneficiary under clause 3.5 (“When effective”). 

  
 Senior Facility Agreement means the agreement entitled “Queensland Magnesia Project Facility Agreement”
dated on or about the date of this deed between the Security Trustee as security trustee, the Company as borrower, ABN AMRO Bank N.V. as financier and hedge counterparty and the Security Provider as guarantor. 
  
 Senior Finance Documents means: 
  

	 	(a)	the Senior Facility Agreement and each document defined as a “Finance Document” in it; and 

  

	 	(b)	any Relevant Senior Hedging Contract; and 

  

	 	(c)	any agreement specified as a Senior Finance Document in the “Details” section of an Accession Deed. 

  
 Senior Finance Party has the meaning given to the term “Finance
Party” in the Senior Facility Agreement. 
  
 Senior
Financier means the party described as such in the Details. 
  
 Senior Hedge Counterparty means the party described as such in the Details. 
  
 Subordination Deed has the meaning given to that term in the Senior Facility Agreement. 
  
 Tranche 1 Sponsor Subordinated Debt has the meaning given to that term in the Senior Facility Agreement. 
  
 Tranche 2 Sponsor Subordinated Debt has the meaning given to that
term in the Senior Facility Agreement. 
  
 Trust means the
trust established under this deed. 
  
 Trust Fund means:

  

	 	(a)	the amount held by the Security Trustee under clause 1.1 (“Declaration of trust”); and 

  

	 	(b)	any other property which the Security Trustee acquires to hold on the trusts created under this deed including, without limitation, any Encumbrance: 

  

	 	(i)	which the Security Trustee executes after the date of this deed in its capacity as trustee of the trust established under this deed; 

  

 26 

	 	(ii)	given by an Obligor which is assigned or transferred to the Security Trustee as assignee after the date of this deed in its capacity as trustee of the trust established under this
deed, 

  
 and in each case any property which
represents the proceeds of sale of any such property or proceeds of enforcement of any Encumbrance. 
  

	11.2	Interpretation 

  
 In this deed, unless the contrary intention appears: 
  

	 	(a)	a reference to this deed or another instrument includes any variation or replacement of any of them; 

  

	 	(b)	a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of
them; 

  

	 	(c)	the singular includes the plural and vice versa; 

  

	 	(d)	the word “person” includes a firm, a body corporate, an unincorporated association or an authority; 

  

	 	(e)	a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and
permitted assigns; 

  

	 	(f)	an agreement, representation or warranty in favour of two or more persons is for the benefit of them jointly and severally; 

  

	 	(g)	an agreement, representation or warranty on the part of the Company or a Security Provider binds the Company or that Security Provider severally only; 

  

	 	(h)	a reference to any thing (including, without limitation, any amount) is a reference to the whole and each part of it and a reference to a group of persons is a reference to all of
them collectively, to any two or more of them collectively and to each of them individually; 

  

	 	(i)	a reference to “enforcing” or “enforcement” of a Security includes exercising any rights, power or remedy under the Security; 

  

	 	(j)	a reference to time is a reference to Sydney time. 

  

	11.3	Headings 

  
 Headings are inserted for convenience and do not affect the interpretation of this deed. 
  

	11.4	Defined terms from Senior Facility Agreement 

  
 Words which have a defined meaning in the Senior Facility Agreement have the same meaning when used in this deed unless the same word is also defined in
this deed, in which case the definition in this deed prevails. 
  

 27 

	11.5	Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 1992 

  
 For the purpose of calculating the Exposure of a Hedge Provider under a Hedging Contract transacted under an ISDA Master
Agreement 1992 which is a Relevant Hedging Contract, the parties agree: 
  

	 	(a)	prior to close out and termination of such a Relevant Hedging Contract, the calculation will be performed on the relevant date on a net basis as if the Relevant Hedging Contract was
closed out and terminated and the Settlement Amount was calculated under section 6(e)(i)(3) of the ISDA Master Agreement 1992 (unless the Relevant Hedging Contract nominates section 6(e)(i)(4) of the ISDA Master Agreement 1992 to apply on
termination, in which event that provision will apply) based on the assumptions that: 

  

	 	(i)	that day is an Early Termination Date; 

  

	 	(ii)	the relevant Beneficiary is the Non-defaulting Party; 

  

	 	(iii)	all Relevant Hedging Contracts entered into with that Beneficiary are the Terminated Transactions, 

  
 where the expressions “Settlement Amount”, “Early Termination Date”, “Non-defaulting Party”
and “Terminated Transactions” have the meaning given to those expressions in the ISDA Master Agreement 1992; and 
  

	 	(b)	on and after close out and termination of such a Relevant Hedging Contract, the calculation will be made under section 6(e)(i)(3) of the ISDA Master Agreement 1992 (unless the
Relevant Hedging Contract nominates section 6(e)(i)(4) of the ISDA Master Agreement 1992 to apply on termination, in which event that provision will apply). 

  

	11.6	Calculation of Exposure under Hedging Contract subject to ISDA Master Agreement 2002 

  
 For the purpose of calculating the Exposure of a Hedge Provider under a Hedging Contract transacted under an ISDA Master
Agreement 2002 which is a Relevant Hedging Contract, the parties agree: 
  

	 	(a)	prior to close out and termination of such a Relevant Hedging Contract, the calculation will be performed on the relevant date on a net basis as if the Relevant Hedging Contract was
closed out and terminated and the Early Termination Amount was calculated under section 6(e)(i) of the ISDA Master Agreement 2002 based on the assumptions that: 

  

	 	(i)	that day is an Early Termination Date; 

  

	 	(ii)	the relevant Beneficiary is the Non-defaulting Party; 

  

	 	(iii)	all Relevant Hedging Contracts entered into with that Beneficiary are the Terminated Transactions, 

  

 28 

 where the expressions “Early Termination Amount”, “Early Termination Date”,
“Non-defaulting Party” and “Terminated Transactions” have the meaning given to those expressions in the ISDA Master Agreement 2002; and 
  

	 	(b)	on and after close out and termination of such a Relevant Hedging Contract, the calculation will be made under section 6(e)(i) of the ISDA Master Agreement 2002.

  

	11.7	Majority Senior Beneficiaries 

  
 On and from the date the Exposure of all Senior Beneficiaries to the Company under any Finance Document is nil and the Company has no further obligations
to the Senior Beneficiaries under any Finance Document: 
  

	 	(a)	each requirement in this deed for a consent, approval, instruction, direction or nomination to be given or made by the Majority of Senior Beneficiaries (or any other specified
majority) will be taken to be a requirement for that consent, approval, instruction, direction or nomination to be given or made by the Majority of Beneficiaries; and 

  

	 	(b)	each other reference to the “Senior Beneficiaries” or a “Senior Beneficiary” in this deed (other than in clause 6.4 (“Application of proceeds”)) will
be taken to be a reference to the “Beneficiaries” or a “Beneficiary” (to the extent applicable). 

  

	11.8	Security Trustee not liable 

  
 Each Obligor acknowledges that the Security Trustee enters into this deed solely in its capacity as security trustee under this deed and that any rights
which they may have against the Security Trustee under or in respect of this deed shall not be against the Security Trustee personally but against the Security Trustee solely in its capacity as trustee of the Trust. The Security Trustee may not be
called on or be liable to satisfy any such rights out of any of its personal assets, and recourse against the Security Trustee shall be limited to the assets held by it in its capacity as trustee of the Trust. 
  
 EXECUTED as a deed. 
  

 29 

 QMAG Security Trust 
  
 Schedule 1 - Security Providers 
  

					
	QMCH	  	Name	  	QMCH Pty Ltd
			
	 	  	ABN	  	27 111 293 433
			
	 	  	Address	  	Ground Floor 76 Kings Park Road, West Perth, Western Australia
			
	 	  	Fax	  	(08)9485 2779
			
	 	  	Telephone	  	(08)9485 2770
			
	 	  	Attention	  	Company Secretary

  
  

 30 

 QMAG Security Trust 
  
 Schedule 2 - Accession Deed 
  
 Interpretation – definitions are at the end of the General terms 
  
 [Insert whichever is applicable] 
  

					
	 Parties

	  	 Security Trustee and [New Senior Beneficiary]/ [New Junior Beneficiary]

	Security Trustee	  	Name	  	ABN AMRO Australia Limited
			
	 	  	ABN	  	78 000 862 797
			
	 	  	Address	  	Level 5, ABN AMRO Tower, 88 Phillip Street, Sydney, New South Wales
			
	 	  	Fax	  	+61 2 8259 5499
			
	 	  	Telephone	  	+61 2 8259 6033
			
	 	  	Attention	  	Agency Department
			
	New [Senior / Junior] Beneficiary	  	Name	  	 
			
	 	  	ABN	  	 
			
	 	  	Address	  	 
			
	 	  	Fax	  	 
			
	 	  	Telephone	  	 
			
	 	  	Attention	  	 
		
	New [Senior] / [Junior] Finance Document]	  	 Description of New [Senior] / [Junior] Finance Document
  
 1 Title of document: [insert]
  
 2 Date of document: [insert]
  
 3 Maximum principal (or notional principal) permitted: [insert]
  
 4 Maximum term: [insert]

			
	Governing law	  	Queensland	  	 
		
	Date of deed	  	See Signing page

  
  

 31 

 QMAG Security Trust 
  
 Contents 
  
 General terms 
  

	1	Accession of New [Senior] / [Junior] Beneficiary 

  
 On and from the date of this deed in respect of the Security Trust Deed: 
  

	 	(a)	all terms and conditions of the Security Trust Deed shall bind the New [Senior] / [Junior] Beneficiary] as if it were a party to the Security Trust Deed as a [Senior] / [Junior]
Beneficiary; and 

  

	 	(b)	the [Senior] / [Junior] Beneficiary acknowledges that it has received a copy of the Security Trust Deed and agrees to comply with the terms of the Security Trust Deed as if it were
named therein as a [Senior / [Junior] Beneficiary. 

  

	2	New [Senior] / [Junior] Finance Document 

  
 On and from the date of this deed in respect of the Security Trust Deed the New [Senior] / [Junior] Finance Document is a [Senior] / [Junior] Finance
Document for the purposes of the Security Trust Deed. 
  

	3	Governing law and jurisdiction 

  

	3.1	Governing law 

  
 This deed is governed by the laws of the place in force in the place specified in the Details. 
  

	3.2	Submission to jurisdiction 

  
 The parties to this deed submit to the non-exclusive jurisdiction of the place specified in the Details. 
  

	4	Interpretation 

  

	4.1	Definitions 

  
 In this deed: 
  
 Details means the section of this deed entitled “Details”. 
  
 New [Senior] / [Junior] Beneficiary means the party described as such in the Details.] 
  

 xxxii 

 New [Senior] / [Junior] Finance Document means the document described as such in the Details.]

  
 Security Trust Deed means the deed entitled
“Security Trust Deed - QMAG Security Trust” dated [            ] 2004 between ACN 111 279 906 Ltd (soon to be renamed QMAG Ltd), ABN AMRO Bank N.V., Newmont Finance Ltd, Resource
Capital Fund III L.P., a Cayman Islands exempted limited partnership acting through Resource Capital Associates III L.P., its general partner, acting through RCF III GP L.L.C, its general partner, ABN AMRO Australia Limited and certain other
companies named therein. 
  

	4.2	Incorporation of terms 

  
 A term having a defined meaning in the Security Trust Deed has the same meaning when used in this deed unless otherwise defined in which case the
definition in this deed prevails. 
  
 EXECUTED as a deed 
  
  

 xxxiii 

 QMAG Security Trust 
 Contents 
  
 Signing page 
  

					
	DATED: 29 November 2004	 	 
			
	Security Trustee	 	 	 	 
			
	SIGNED, SEALED AND DELIVERED	 	)	 	 
	by Craig Charles Wappett	 	)	 	 
	as attorney for ABN AMRO AUSTRALIA	 	)	 	 
	LIMITED under power of attorney dated	 	)	 	 
	26 November 2004	 	)	 	 
	in the presence of:	 	)	 	 
	/s/ Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Signature of witness	 	)	 	 
	Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Name of witness (block letters)	 	)	 	/s/ Craig Charles Wappett
	Level 30, Waterfront Place	 	)	 	

	Brisbane	 	)	 	By executing this agreement the attorney
	
	 	)	 	states that the attorney has received no
	Address of witness	 	)	 	notice of revocation of the power of
	Solicitor	 	)	 	attorney
	
	 	 	 	 
	Occupation of witness	 	 	 	 

  

					
	Senior Financier and Senior Hedge Counterparty
	SIGNED, SEALED AND DELIVERED	 	)	 	 
	by Craig Charles Wappett	 	)	 	 
	as attorney for ABN AMRO BANK N.V.	 	)	 	 
	under power of attorney dated 26 November	 	)	 	 
	2004	 	)	 	 
	in the presence of:	 	)	 	 
	/s/ Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Signature of witness	 	)	 	 
	Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Name of witness (block letters)	 	)	 	/s/ Craig Charles Wappett
	Level 30 Waterfront Place, Brisbane	 	)	 	

	
	 	)    	 	By executing this agreement the attorney
	Address of witness	 	)	 	states that the attorney has received no
	Solicitor	 	)	 	notice of revocation of the power of
	
	 	)	 	attorney
	Occupation of witness	 	 	 	 

  
  

 i 

 QMAG Security Trust 
 Contents 
  
 Company 
  

					
	SIGNED, SEALED AND DELIVERED 	 	)    	 	 
	by	 	)	 	 
	as attorney for ACN 111 279 906 Ltd under	 	)	 	 
	power of attorney dated 26 November 2004	 	)	 	 
	 	 	)	 	 
	in the presence of:	 	)	 	 
	/s/ S. E. Thomas	 	)	 	 
	
	 	)	 	 
	Signature of witness	 	)	 	 
	Sian Emma Thomas	 	)	 	 
	
	 	)	 	 
	Name of witness (block letters)	 	)	 	/s/ Brian T. Dolan, Attorney-in-Fact
	215 Adelaide St., Brisbane	 	)	 	

	
	 	)	 	By executing this agreement the attorney
	Address of witness	 	)	 	states that the attorney has received no
	Solicitor	 	)	 	notice of revocation of the power of
	
	 	)	 	attorney
	Occupation of witness	 	 	 	 

  
 Security Provider 

 

					
	SIGNED, SEALED AND DELIVERED	 	)    	 	 
	by	 	)	 	 
	as attorney for QMCH PTY LTD under	 	)	 	 
	power of attorney dated 26 November 2004	 	)	 	 
	 	 	)	 	 
	in the presence of:	 	)	 	 
	/s/ S. E. Thomas	 	)	 	 
	
	 	)	 	 
	Signature of witness	 	)	 	 
	Sian Emma Thomas	 	)	 	 
	
	 	)	 	 
	Name of witness (block letters)	 	)	 	/s/ Brian T. Dolan, Attorney-in-Fact
	215 Adelaide St., Brisbane	 	)	 	

	
	 	)	 	By executing this agreement the attorney
	Address of witness	 	)	 	states that the attorney has received no
	Solictor	 	)	 	notice of revocation of the power of
	
	 	)	 	attorney
	Occupation of witness	 	 	 	 

  

 i 

 QMAG Security Trust 
 Contents 
  

					
	SIGNED, SEALED AND DELIVERED	 	)    	 	 
	by Dominic Martin McGann	 	)	 	 
	as attorney for NEWMONT FINANCE	 	)	 	 
	LIMITED under power of attorney dated	 	)	 	 
	 	 	)	 	 
	in the presence of:	 	)	 	 
	/s/ Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Signature of witness	 	)	 	 
	Krystie Rosin	 	)	 	 
	
	 	)	 	 
	Name of witness (block letters)	 	)	 	/s/ Dominic Martin McGann
	Level 30, Waterfront Place, Brisbane	 	)	 	

	
	 	)	 	By executing this agreement the attorney
	Address of witness	 	)	 	states that the attorney has received no
	Solicitor	 	)	 	notice of revocation of the power of
	
	 	)	 	attorney
	Occupation of witness	 	 	 	 

  
  

 i 

 QMAG Security Trust 
 Contents 
  

					
	EXECUTED AS A DEED by	 	)    	 	 
	RESOURCE CAPITAL FUND III L.P.	 	)	 	 
	 	 	)	 	 
	a Cayman Islands exempted limited	 	)	 	 
	partnership	 	)	 	 
	By: RESOURCE CAPITAL FUND III L.P.	 	)	 	 
	 	 	)	 	 
	its General Partner	 	)	 	 
	 	 	)	 	Brian T. Dolan, Attorney-in-Fact
	By: RCA III GP L.L.C	 	)	 	

	its General Partner	 	)	 	By executing this deed the attorney
	 	 	)	 	states that the attorney has received
	By:	 	)	 	no notice of revocation of the power of
	as attorney in fact	 	 	 	attorney
	under power of attorney dated 26 November 2004	 	 	 	 
	in the presence of:	 	 	 	 
			
	/s/ S. E. Thomas	 	 	 	 
	
	 	 	 	 
	Signature of witness	 	 	 	 
	Sian Emma Thomas	 	 	 	 
	
	 	 	 	 
	Name of witness (block letters)	 	 	 	 

  

 i

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