Document:

Exhibit 10.4

RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Bruce C. Kirchhoff
Carver & Kirchhoff, LLC
730 17th Street, Suite 340
Denver, Colorado 80202

                  TO BE RECORDED IN IMPERIAL COUNTY, CALIFORNIA

                    MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT
                             AND FINANCING STATEMENT

     A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE.  A POWER OF SALE MAY
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  ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING
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    TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS
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                                    MORTGAGE.
                                    ---------

     THIS MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT AND FINANCING STATEMENT (the
"Instrument") is dated as of November 7, 2003, from WESTERN MESQUITE MINES,
INC., a corporation organized under the laws of the State of Nevada and having
an address of 7000 Independence Parkway, Suite 160 #135, Plano, Texas 75025
("Grantor"), to  RMB INTERNATIONAL (DUBLIN) LIMITED, a corporation organized
under the laws of the Republic of Ireland and having an address of 28 Shelbourne
Road, Ballsbridge, Dublin 4 Ireland, and its agent, RMB RESOURCES LIMITED, a
corporation organized under the laws of England and having an address of Level
3, One Mitre Square, London EC3A 5AN, United Kingdom ("Mortgagee").

     Capitalized terms herein are defined in Article 2.

                                   ARTICLE 1.

                                    RECITALS
                                    --------

     1.1.  THE INDEBTEDNESS.  Grantor is indebted to Mortgagee for the
           ----------------
Indebtedness in the aggregate principal sum of Six Million and No/100 United
States Dollars ($6,000,000.00), as evidenced by the Facility Agreement dated as
of November 5, 2003, between Grantor, Mortgagee, and Western Goldfields, Inc.
and Calumet Mining Company as Guarantors.

<PAGE>
     1.2.  OBLIGATIONS SECURED.  This Instrument secures (a) the full and
           -------------------
punctual payment of the Indebtedness according to the terms of the Facility
Agreement, (b) the payment of all sums due to Mortgagee according to the terms
of any of the Transaction Documents, and (c) the performance of, and compliance
with, all of the obligations of the Grantor (express or implied) contained in
the Transaction Documents.

                                   ARTICLE 2.

                                   DEFINITIONS
                                   -----------

Whenever capitalized in this Instrument, the following terms shall have the
meaning given in this Article 2. All defined terms used but not otherwise
defined herein shall have the meanings ascribed to them under the other
Transaction Documents.

     2.1.  COLLATERAL.  "Collateral" has the meaning given in Section 3.6.
           ----------

     2.2.  CONTRACT.  "Contract" means each contract which purports to convey
           --------
any interest of Grantor in any portion of the Collateral and includes leases,
equipment leases, subleases and assignments of leases.

     2.3.  CONTROLLING PARTY.  "Controlling Party" means any Person, directly or
           -----------------
indirectly, possessing the power to direct or cause the direction of the
management and policies of Grantor, whether through the ownership or control of
voting securities or rights, by contract or otherwise.

     2.4.  DEFAULT.  "Default" means: (a) the failure of Grantor to perform,
           -------
cause to be performed, abide by, comply with, or observe any duty or obligation
imposed upon Grantor by the Transaction Documents; (b) the breach of any of
Grantor's representations, warranties or covenants contained in any of the
Transaction Documents; (c) a misrepresentation by Grantor, its counsel, or any
other Person on behalf of Grantor, in any of the Transaction Documents; or (d)
any event, happening, or condition which would constitute a Default if not cured
within any applicable grace period, whether pursuant to Section 9.1 below, or
pursuant to Section 12 of the Facility Agreement, or pursuant to any of the
other Transaction Documents.

     2.5.  DEPOSIT ACCOUNT CONTROL AGREEMENT.  "Deposit Account Control
           ---------------------------------
Agreement" means that certain Deposit Account Control Agreement entered into
between Mortgagee, Grantor, and Baker Boyer National Bank, dated as of November
5, 2003.

     2.6.  ENCUMBRANCES.  "Encumbrances" includes all liens, mortgages, rights,
           ------------
leases, restrictions, easements, deeds of trust, covenants, agreements, rights
of way, rights of redemption, security interests, conditional sales agreements,
land installment contracts, options, and all other burdens or charges.

     2.7.  GRANTOR.  "Grantor" means the party identified as such in the
           -------
introductory paragraph of this Instrument, its successors and assigns, including
any subsequent owner of all or

<PAGE>
any portion of Grantor's interest in the Collateral. The original Grantor's
address is 7000 Independence Parkway, Suite 160 #135, Plano, Texas 75025.

     2.8.  HAZARDOUS MATERIAL.  "Hazardous Material" means (i) any hazardous or
           ------------------
toxic substance, material or waste, including, but not limited to, those
substances, materials, and wastes listed in the United State Department of
Transportation Hazardous Materials Table (49 CFR 172.101) or listed by the
Environmental Protection Agency as hazardous substances (40 CFR Part 302) and
amendments thereto and replacements thereof; or (ii) such substances, materials
or wastes as are regulated by any Hazardous Material Law; (iii) such hazardous
or toxic substances, materials or wastes, pollutant, contaminant or other
materials that are now or may become regulated under any other applicable
county, municipal, state or federal Law, rule, ordinance, direction, or
regulation; (iv) any radioactive material, including any source, special nuclear
or by-product material as defined at 42 U.S.C. Sec. 2011 et seq., as amended;
and (v) asbestos.

     2.9.  HAZARDOUS MATERIAL LAW(S).  "Hazardous Material Law(s)" means any and
           -------------------------
all present and future Laws (whether common or statutory), compacts, treaties,
conventions, rules, regulations, codes, plans, requirements, criteria,
standards, orders, decrees, judgments, injunctions, notices of violation,
notices or demand letters issued, promulgated or entered thereunder by any
federal, tribal, state or local governmental entity relating to public or
employee health and safety, pollution or protection of the environment,
including without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended by the Superfund Amendment
and Reauthorization Act of 1986 ("CERCLA"), the Resource Conservation and
Recovery Act ("RCRA"), the Federal Safe Drinking Water Act, the Federal Water
Pollution Control Act, the Used Oil Recycling Act of 1980, the Solid Waste
Disposal Act, the Emergency Planning and Community Right-to-Know Act of 1986,
the Clean Air Act, any state counterparts of any of these federal statutes, and
any and all other federal, state, tribal and local Laws, rules, regulations and
orders relating to reclamation of land, wetlands and waterways or relating to
use, storage, emissions, discharges, clean-up, releases or threatened releases
of pollutants, contaminants, chemicals or industrial, toxic or Hazardous
Materials on or into the workplace or the environment (including without
limitation ambient air, oceans, waterways, wetlands, surface water, ground water
(tributary and nontributary), land surface or subsurface strata) or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transportation or handling of pollutants, contaminants, chemicals or
industrial, toxic, hazardous or similar substances, as all of the foregoing may
be amended, supplemented and reauthorized from time to time.

     2.10.  INDEBTEDNESS.  "Indebtedness" means the indebtedness of the Grantor
            ------------
to the Mortgagee in the original, aggregate principal amount of Six Million and
No/100 United States Dollars ($6,000,000.00) as evidenced by the Facility
Agreement, all interest due thereon, and any other present or future obligations
of any type and in any amount owed by the Grantor to the Mortgagee on account of
the terms of any of the Transaction Documents.

     2.11.  INSTRUMENT.  "Instrument" means this Instrument, including all
            ----------
current and future supplements, amendments, and attachments thereto.

<PAGE>
     2.12.  INTERESTS.  "Interests" has the meaning given in Section 3.1.
            ---------

     2.13.  LAW.  "Law" means all federal, state, county, and municipal laws,
            ---
regulations, rules, and ordinances, and all rules, regulations and orders of any
other governmental authority including common law and rulings, decisions and
interpretations of all judicial, quasi-judicial, and administrative bodies.

     2.14.  LEGAL ACTION.  "Legal Action" includes all suits or other
            ------------
proceedings brought at law or in equity or before any administrative agency,
governmental body, or arbitrator which in any manner relate to the Collateral or
arise out of or relate to any of the Transaction Documents.

     2.15.  MORTGAGEE.  "Mortgagee" means that party identified as such by the
            ---------
introductory paragraph of this Instrument, and each of its successors and
assigns.  For purposes of notices and any other communications which may be
necessary or desirable hereunder, RMB Resources Limited shall be the authorized
representative of the Mortgagee.

     2.16.  OPERATE.  "Operate" means to operate, use, manage, lease, contract,
            -------
and control, including the right to repair, renew, replace, alter, add, better,
and improve.

     2.17.  PERMITTED ENCUMBRANCES.  "Permitted Encumbrances" means this
            ----------------------
Instrument and all Encumbrances as to which Mortgagee has given its prior
written approval, liens arising for real estate taxes or any other applicable
public charges not yet due and payable, liens being contested as permitted
herein, rights-of-way and easements over, under and across the Interests which
are of record in Imperial County, California, on the date of this Instrument,
and Contracts not in violation of Section 7.4.

     2.18.  PERSON.  "Person" means any individual, corporation, partnership,
            ------
association, trust, joint venture, or any other legal entity.

     2.19.  PLEDGE AGREEMENT.  "Pledge Agreement" means that certain Pledge
            ----------------
Agreement entered into between Western Goldfields, Inc. and Mortgagee, dated as
of November 5, 2003.

     2.20.  PRECIOUS METALS.  "Precious Metals" has the meaning given in Section
            ---------------
3.1.

     2.21.  REVENUES.  "Revenues" includes all rents, profits, royalties,
            --------
issues, revenues, income, proceeds, earnings, and products generated by or
arising out of the Collateral.

     2.22.  RISK.  "Risk" includes risk of loss or damage by fire, lightning,
            ----
windstorm, hail, explosion, riot, riot attending a strike, civil strife, civil
commotion, aircraft, vehicles, smoke, vandalism, malicious mischief, boiler
explosion, and any other risk customarily insured against by persons operating
property similar in kind to the Collateral.

     2.23.  SECURITY AGREEMENT.  "Security Agreement" means that certain
            ------------------
Security Agreement entered into between Grantor, Western Goldfields, Inc. and
Mortgagee, dated as of November 5, 2003.

<PAGE>
     2.24.  TAKING.  "Taking" includes any taking by condemnation or eminent
            ------
domain, any sale in lieu of condemnation under threat thereof, or any other
injury to or decrease in the value of the Collateral by any public or
quasi-public authority or corporation or any other person having the power of
eminent domain.

     2.25.  TAXES.  "Taxes" includes all taxes, excises, documentary fee and
            -----
transfer taxes, recording taxes, assessments, water rents, sewer rents, special
district charges, sanitary district charges, social security, unemployment,
disability, retirement and similar payments and contributions, public dues, and
other public charges levied or assessed upon the Collateral, upon the
Indebtedness, upon any Indebtedness Document, or upon the Grantor or Mortgagee
because of the interests of any of them in or their development or production of
the Collateral.

     2.26.  TRANSACTION DOCUMENTS.  "Transaction Documents" means this
            ---------------------
Instrument, the Facility Agreement, the Security Agreement, the Deposit Account
Control Agreement, the Pledge Agreement, any and all financing statements, and
any and all certificates, opinions, assignments and other documents executed in
connection herewith or therewith, and all current and future supplements,
amendments, and attachments hereto or thereto.

     2.27.  UNIFORM COMMERCIAL CODE.  "Uniform Commercial Code" means the
            -----------------------
Colorado Uniform Commercial Code, as presently enacted, amended or reenacted.

                                   ARTICLE 3.

                                GRANTING CLAUSES
                                ----------------

The Grantor, in consideration of the Indebtedness and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
mortgages, grants, assigns, bargains, sells, transfers, pledges, warrants and
conveys to the Mortgagee with power of sale all of the following described
property, located in Imperial County, California (the "County"), including
without limitation the property set forth in Exhibit A:

     3.1.  PRECIOUS METALS.  (a)  All right, title and interest of Grantor in
           ---------------
and to all of the mineral estates, leasehold estates, mining leases, surface
leases, licenses, subleases, sublicenses, royalty interests, overriding royalty
interests, production payment interests, net profit interests, net smelter
return interests, joint venture agreements, leach pads, solution ponds, ores,
and any other interests described in Exhibit A hereto, covering or relating to
all or any part of the land described either in Exhibit A hereto or in the
documents recorded as described in Exhibit A hereto or covering or relating to
any real property relating to the Collateral and covered by any agreement to
which such interests or any other estate, property right or other interest
constituting a part of the Collateral is now or hereafter subject, whether now
owned or hereafter acquired, and whether such interests be correctly described
therein or not (which interests of Grantor shall, for all purposes of this
Instrument, be deemed to include without limitation any interest now owned or
hereafter acquired by Grantor in any extension, renewal or replacement of any of
the leases or other interests described in Exhibit A hereto) (collectively the
"Interests");

<PAGE>
(b)  All of the inventory, including without limitation all work-in-progress,
materials and supplies inventories, all product inventories, and all ore,
leachate, pregnant leach solutions, carbon, gold-loaded carbon, gold-loaded
stripping solutions, gold-containing sludges, gold or other products in whatever
form, content, or purity, and all other associated or related substances
("Precious Metals") in, on, under or attributed to any of the Interests;

(c)  All of the as-extracted collateral, including without limitation all
Precious Metals mined and produced from any of the Interests;

(d)  All of the property, plant, machinery, and equipment, and all trade
fixtures, tools, appliances, computers, computer software, office equipment,
furniture, and motor vehicles now or hereafter located in, on, under, affixed or
attributed to or obtained or used in connection with any of the Interests which
are used or purchased for the production, treatment, storage, transportation,
manufacture or sale of Precious Metals;

(e)  All leach pads, solution ponds and pipelines, and any and all of the items
incorporated as part of or attributed or affixed to any of the real property
included in the Interests in such a manner that such items are no longer
personal property under the Law of the state where the property is situate (or
if the property is not situated within the boundaries of any state, then under
applicable Law);

(f)  All flow lines, irrigation and drip lines, water lines, gas lines,
machinery, pipelines, power lines and other goods and equipment, and all of the
personal property and fixtures, as defined under the Law of the state where the
property is situate (or if the property is not situated within the boundaries of
any state, then under applicable Law), now or hereafter located in, on, under,
affixed or attributed to or obtained or used in connection with any of the
Interests which are used or purchased for the production, treatment, storage,
transportation, manufacture or sale of Precious Metals;

(g)  All of the contract rights or rights to the payment of money, insurance
claims and proceeds now owned or hereafter arising in connection with any of the
Interests or the production, treatment, storage, transportation, manufacture or
sale of Precious Metals;

(h)  All of the accounts, deposit accounts, contract rights, commercial tort
claims (whether now existing or arising in the future), technical data and
information (whether economic, geological, geophysical, metallurgical, or
otherwise), and general intangibles including without limitation equipment
leases now or hereafter arising in connection with the Interests (including,
without limitation, the production, treatment, storage, transportation,
manufacture or sale of Precious Metals related to any of the Interests); and

(i)   All of the instruments (including promissory notes, bills of exchange,
stocks, bonds and debentures), chattel paper (whether tangible or electronic),
documents, letters of credit (whether or not evidenced by a writing), letter of
credit rights and supporting obligations, now or hereafter arising in connection
with the Interests (including, without limitation, the production, treatment,
storage, transportation, manufacture or sale of Precious Metals related to any
of the Interests).

<PAGE>
     3.2.  FIXTURES AND PERSONAL PROPERTY.  All of the machines, apparatus,
           ------------------------------
equipment, fixtures, parts and articles of personal property now or hereafter
owned, leased or used by Grantor in relation to Grantor's business, including
without limitation, the leach pads, solution ponds and other Collateral in, on,
under or attributed to any of the Interests, and all the right, title and
interest of the Grantor in and to any of such Collateral which may be subject to
any title retention or security agreement or instrument having priority over
this Instrument.

     3.3.  CONTRACTS AND REVENUES AND OTHER RIGHTS.  (a) All of Grantor's
           ---------------------------------------
interest in all Contracts and Revenues, including, without limitation, all cash
or security deposits to secure performance by any party;

(b)     All of the estate, right, title, use, claim and demand of every nature
whatsoever, at law or in equity, which the Grantor may now have or may hereafter
acquire in and to any of the Collateral; and

(c) All right, title and interest of the Grantor in and to all extensions,
betterments, renewals, substitutes, replacements and proceeds of, and all
additions, accessions, and appurtenances to, any of the Collateral, hereafter
acquired by or released to the Grantor, or constructed, assembled or placed by
or for the Grantor on any of the Collateral, and all conversions of the security
constituted thereby.

     3.4.  INSURANCE POLICIES AND CONDEMNATION AWARDS.  All insurance policies
           ------------------------------------------
and insurance proceeds pertaining to the Collateral including without limitation
reclamation bonds and related instruments, and all awards or payments, including
interest thereon and the right to receive the same, which may be made with
respect to any of the Collateral as a result of any condemnation, taking or any
injury to or decrease in the value of the Collateral, including returned or
unearned insurance premiums on the Collateral, products, and similar
after-acquired property.

     3.5.  ESCROWED FUNDS.  All funds deposited into escrow by Mortgagee and
           --------------
held in escrow by Grantor for any purpose.

     3.6.  THE COLLATERAL.  All of the property described in this Article 3 is
           --------------
collectively called the "Collateral."

     3.7.  SECURITY INTEREST UNDER THE UNIFORM COMMERCIAL CODE.  Any portion of
           ---------------------------------------------------
the Collateral which by law is or may be real property shall be deemed to be a
part of the Collateral for the purposes of this Instrument.  The remainder of
the Collateral shall be subject to the Uniform Commercial Code and this
Instrument shall constitute a Security Agreement with respect thereto.  Grantor
hereby grants to the Mortgagee a security interest in that portion of the
Collateral not deemed a part of any real property for the purpose of securing
performance of all of Grantor's obligations under the Transaction Documents.
With respect to such security interest (a) the Mortgagee may exercise all rights
granted or to be granted a secured party under the Uniform Commercial Code as
well as all other rights and remedies of the Mortgagee and (b) upon the
occurrence of A Default the Mortgagee shall have a right of possession superior
to

<PAGE>
any right of possession of the Grantor or any person claiming by, through or on
behalf of the Grantor.

                                   ARTICLE 4.

                         HABENDUM CLAUSE AND DEFEASANCES
                         -------------------------------

     4.1.  HABENDUM CLAUSE.  The Mortgagee shall have and hold the Collateral
           ---------------
and any and all interest of Grantor therein, for the security and benefit of the
Mortgagee, upon the terms herein set forth.

     4.2.  TERMINATION OF THIS INSTRUMENT.  If all obligations of Grantor under
           ------------------------------
this Instrument and the other Transaction Documents, are paid and satisfied in
accordance with the terms hereof and thereof, Mortgagee shall release this
Instrument.  Grantor shall pay any recordation costs and any other fees
associated with such release.

                                   ARTICLE 5.

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     5.1.  WARRANTY OF TITLE.  Grantor warrants that at the execution and
           -----------------
delivery of this Instrument, it acquired the Collateral by purchase and is the
lawful owner of all of the Collateral, that it has not caused or permitted any
lien, claim or encumbrance, other than the liens and interests granted and
created hereby, on, in or against the Collateral, and that it has the right and
authority to grant, bargain, sell and convey the Collateral pursuant to the
terms hereof.  Grantor covenants that it will execute such further assurances as
may be requested.  Grantor covenants and warrants that all of the Collateral is
and shall be free and clear of all liens, claims and encumbrances whatever,
including without limitation litigation, investigations, or administrative
proceedings, except for encumbrances more particularly described in Exhibit B,
attached hereto and incorporated herein by this reference.

     5.2.  PURPOSE OF THE INDEBTEDNESS.  The Grantor warrants that the
           ---------------------------
Indebtedness is not a consumer loan or consumer-related loan, but rather is or
shall be for a business or commercial purpose.

     5.3.  EXISTENCE, GOOD STANDING, POWER AND AUTHORITY OF GRANTOR.  Grantor is
           --------------------------------------------------------
a corporation organized under the laws of the State of Idaho, is in good
standing in the State of Idaho, and will maintain its good standing and
existence until all of Grantor's obligations under the Transaction Documents
have been performed and satisfied.  The execution and delivery of the
Transaction Documents, the carrying out of the transactions contemplated by the
Transaction Documents, and the performance of Grantor's obligations under the
Transaction Documents, have been duly authorized by all necessary action and
will not conflict with or result in a breach of Law or any agreement or other
instrument to which Grantor is a party or by which it is bound.

<PAGE>
The Transaction Documents are valid and binding on Grantor and are enforceable
against Grantor in accordance with their respective terms, as applicable.
Grantor has obtained all necessary licenses, permits and approvals and has taken
all necessary actions to operate the Collateral.

     5.4.  ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES.  To the best of
           --------------------------------------------
Grantor's knowledge and to the best of its ability, Grantor represents and
warrants that the Collateral is held and operated in compliance with all
applicable Laws, including all Hazardous Material Laws.

                                   ARTICLE 6.

               COVENANTS, RIGHTS, AND DUTIES OF GRANTOR GENERALLY
               --------------------------------------------------

     6.1.  COVENANT TO PAY INDEBTEDNESS AND TO PERFORM OBLIGATIONS UNDER THE
           -----------------------------------------------------------------
TERMS OF THE TRANSACTION DOCUMENTS.  The Grantor covenants that it will
----------------------------------
punctually (a) pay to the Mortgagee the principal and interest of the
Indebtedness and all other costs, fees, charges and indebtedness secured hereby
according to the terms of the Facility Agreement and other Transaction
Documents, and (b) perform and satisfy all other obligations of the Grantor
under the Transaction Documents.

     6.2.  TAXES AND INSURANCE.  Grantor shall have the obligation to pay all
           -------------------
Taxes, insurance and any other cost or charge incurred because of the ownership
or operation of the Collateral.

     6.3.  STATEMENT OF AMOUNT OWING AND DEFENSES.  Within ten (10) days after
           --------------------------------------
request from the Mortgagee, the Grantor shall certify, in writing, the amount of
principal and interest then owing on the Indebtedness and whether the Grantor
has any defenses or offsets to the Indebtedness.

     6.4.  FURTHER ASSURANCES AND CONTINUATION STATEMENTS.  The Grantor from
           ----------------------------------------------
time to time will execute, acknowledge, deliver, and record at the Grantor's
sole cost and expense, all further instruments, deeds, conveyances, supplemental
deeds of trust, assignments, financing statements, transfers, and assurances as
in the opinion of the Mortgagee's counsel may be necessary (a) to preserve,
continue, and protect the interest of the Mortgagee in the Collateral, (b) to
perfect the grant to the Mortgagee of every part of the Collateral, (c) to
secure the rights and remedies of the Mortgagee under this Instrument and the
other Transaction Documents, and (d) to transfer to any purchaser at a sale
hereunder the Collateral, funds, and powers now or hereafter held hereunder.
The Grantor, at the request of the Mortgagee, shall promptly execute any
continuation statements required by the Uniform Commercial Code to maintain the
lien on any portion of the Collateral subject to the Uniform Commercial Code.

     6.5.  EXPENSES.  In the event of a Default hereunder or under any other
           --------
Indebtedness Document, Grantor shall, to the extent permitted by law, reimburse
the Mortgagee for any sums, including attorneys' fees and expenses, incurred or
expended by them (a) in connection with any action or proceeding to sustain the
lien, security interest, priority, or validity of any Indebtedness

<PAGE>
Document, (b) to protect, enforce, interpret, or construe any of their rights
under the Transaction Documents, (c) for any title examination or title
insurance policy relating to the title to the Collateral, or (d) for any other
purpose contemplated by the Transaction Documents. The Grantor shall, upon
demand, pay all such sums together with interest thereon at the rate accruing
under the Facility Agreement from the time the expense is paid. All such sums so
expended by the Mortgagee shall be secured by this Instrument. In any action or
proceeding to foreclose this Instrument or to recover or collect the
Indebtedness, the provisions of Law allowing the recovery of costs,
disbursements, and allowances shall be in addition to the rights given by this
Section 6.5.

     6.6.  ENVIRONMENTAL COVENANTS.  (a)  Grantor shall comply strictly and in
           -----------------------
all respects in its operation of the Collateral with the requirements of any
Hazardous Material Laws and shall notify Mortgagee immediately in the event of
any improper or illegal release or discovery of any Hazardous Material at, upon,
under or within any of the Collateral.

(b)  Promptly upon the written request of Mortgagee, the Mortgagee having
probable cause to believe that the Grantor has not complied with any of its
obligations under Section 6.8(a) herein, Grantor shall provide Mortgagee, at
Grantor's expense, with an environmental site assessment or environmental audit
report prepared by an environmental engineering firm acceptable to Mortgagee, to
assess with a reasonable degree of certainty the presence or absence of any
Hazardous Material on, under, at or within any of the Collateral, and the
potential costs in connection with abatement, cleanup or removal of any
Hazardous Material found on, under, at or within any of the Collateral.

     6.7.  ENVIRONMENTAL INDEMNITY.  (a)  Grantor does hereby absolutely,
           -----------------------
unconditionally and irrevocably indemnify and hold harmless Mortgagee against
and from any and all claims, suits, actions, debts, damages, costs, losses,
obligations, judgments, charges, and expenses, of any nature whatsoever suffered
or incurred by Mortgagee, whether as Mortgagee under this Instrument, as
mortgagee in possession, or as successor-in-interest to Grantor by foreclosure
deed or deed in lieu of foreclosure or otherwise, with respect to any of the
following, occurring after the execution of this Instrument and arising from or
relating to any violation of or non-compliance with any Hazardous Material Law,
or a release, discharge or the presence otherwise of any Hazardous Material on,
under, from or otherwise affecting any of the Collateral also occurring
thereafter:

     (i)  any release of Hazardous Material, the threat of a release of any
     Hazardous Material, or the presence of any Hazardous Material affecting any
     of the Collateral whether or not the same originates or emanates from the
     Collateral, including any loss of value of any of the Collateral as a
     result of any of the foregoing; or

     (ii)  any costs of removal or remedial action incurred by the United States
     Government or any state, county or municipal governmental authority, any
     response costs incurred by any other person or damages from injury to,
     destruction of, or loss of natural resources, including reasonable costs of
     assessing such injury, destruction or loss, incurred pursuant to any
     Hazardous Material Laws; or

<PAGE>
     (iii)  liability for personal injury or property damage arising under any
     statutory or common law tort theory, including, without limitation, damages
     assessed for the maintenance of a public or private nuisance or for the
     carrying on of a dangerous activity in relation to any of the Collateral;
     or

     (iv)  any other environmental matter affecting the Collateral within the
     jurisdiction of the Environmental Protection Agency, any other federal
     agency, or any state, county or municipal agency having jurisdiction or
     authority with respect to such matters.

Grantor's obligations under this provision shall arise upon the discovery of any
violation of or non-compliance with any Hazardous Material Law whether or not
the Environmental Protection Agency, any other federal agency or any state,
county or municipal agency having jurisdiction or authority with respect to such
matters has taken or threatened any action in connection with such violation,
non-compliance or the release of any Hazardous Material.

(b)  In the event of any violation of or non-compliance with any Hazardous
Material Law, or any release of Hazardous Material, or the threat of a release
of any Hazardous Material affecting any of the Collateral, whether or not the
same originates or emanates from the Collateral, or if Grantor shall fail to
comply with any of the requirements of any Hazardous Material Laws or related
regulations or any other environmental Law, Mortgagee may at its election, but
without the obligation so to do, give such notices or cause such work to be
performed on, at or with respect to the Collateral or take any and all other
actions as Mortgagee shall deem necessary or advisable in order to abate the
release of any Hazardous Material, remove any Hazardous Material or cure
Grantor's noncompliance.

(c)  It is the intention of Grantor that these provisions shall supersede any
other provisions herein, in the Facility Agreement or in any other of the
Transaction Documents which in any way limit the personal liability of Grantor,
and that Grantor shall be personally liable for any obligations hereunder, even
if the amount of liability incurred exceeds the amount secured hereby.  All of
the representations, warranties, covenants and indemnities herein shall survive
the repayment of all obligations under the Facility Agreement and the release of
the lien of this Instrument and shall survive the transfer, if any, of any or
all right, title and interest in and to any of the Collateral by Grantor to any
party, whether or not affiliated with Grantor.  All amounts expended by
Mortgagee in connection with the enforcement of its rights pursuant to this
Section 6.9 shall be secured by this Instrument.

                                   ARTICLE 7.

                  RIGHTS AND DUTIES OF GRANTOR WITH RESPECT TO
                  --------------------------------------------
                       MANAGEMENT AND USE OF THE PROPERTY
                       ----------------------------------

     7.1.  CONTROL BY THE GRANTOR.  Until the happening of a Default, the
           ----------------------
Grantor shall have the right to possess and enjoy the Collateral and, except as
prohibited or restricted by the Transaction Documents, to receive the Revenues
in the manner provided in the Facility Agreement.

<PAGE>
     7.2. BOOKS AND RECORDS.  The Grantor agrees to make its books and records
          -----------------
relating to the operation of the Collateral available for inspection by the
Mortgagee, upon request at any reasonable time, at Grantor's principal place of
business or at such other location as Mortgagee may reasonably request.

     7.3.  SUBORDINATION AND ATTORNMENT.  In the event of a foreclosure sale
           ----------------------------
pursuant to this Instrument, each party to a Contract with Grantor shall, upon
request, attorn to and acknowledge any purchaser at foreclosure or grantee in
lieu of foreclosure as having all of the rights and authority of the Grantor.
All Contracts shall be subject and subordinate to modifications of and
amendments to the Transaction Documents and any additional financing or
refinancing of the Collateral by or for the Mortgagee.

     7.4.  RESTRICTION ON ASSIGNMENT OF REVENUES.  The Grantor shall not assign
           -------------------------------------
the Revenues arising from the Collateral or any part thereof or any interest
therein without the prior written consent of the Mortgagee.  Any attempted
assignment, pledge, hypothecation, or grant without such consent shall be null
and void.  Notwithstanding the foregoing, upon receipt of prior written approval
of Mortgagee, which approval shall not be unreasonably withheld, the Grantor may
make such an assignment which is subordinate to the interest of Mortgagee.

     7.5.  RESTRICTIONS ON SALE AND TRANSFER OF THE COLLATERAL.  The Grantor
           ---------------------------------------------------
shall not permit the Collateral, or any part or portion thereof or any interest
therein, to be transferred (whether by voluntary or involuntary conveyance,
merger, operation of law, or otherwise) without the prior written consent of the
Mortgagee.  Any transferee of the Collateral or any part or portion thereof or
any interest therein, by virtue of its acceptance of the transfer, shall
(without in any way affecting Grantor's liability under the Transaction
Documents) be conclusively deemed to have agreed to assume primary personal
liability for the performance of the Grantor's obligations under the Transaction
Documents.  This section shall not apply to any Taking, any disposition
permitted by Section 7.8., or any disposition by the Mortgagee by foreclosure
hereunder or as otherwise permitted by the Transaction Documents.

     7.6.  RESTRICTION ON ENCUMBRANCES.  The Grantor shall not allow any
           ---------------------------
Encumbrances on the Collateral except the Permitted Encumbrances.  The Grantor
shall give the Mortgagee prompt notice of any default in or under any Permitted
Encumbrances and any notice of foreclosure or threat of foreclosure.  The
Grantor shall comply with its obligations under all Permitted Encumbrances.  The
Mortgagee may, at its election, satisfy any Encumbrance (other than a Permitted
Encumbrance not then in default), and the Grantor shall, on demand, reimburse
the Mortgagee for any sums advanced for such satisfaction together with interest
charged at the Overdue Rate accruing from the date of satisfaction, which sums
shall be secured hereby.

     7.7.  MAINTENANCE, WASTE, REPAIR AND INSPECTION.  Grantor shall:  (a) keep
           -----------------------------------------
and maintain the Collateral in good order, condition, and repair and make all
equipment replacements and repairs necessary to insure that the security for the
Indebtedness is not impaired; (b) not commit or suffer any waste of the
Collateral; (c) promptly protect and conserve any portion of the Collateral
remaining after any damage to, or partial destruction of, the Collateral; (d)
promptly repair, restore, replace or rebuild any portion of the Collateral which
is damaged or destroyed;

<PAGE>
(e) promptly restore the balance of the Collateral remaining after any Taking;
(f) permit the Mortgagee or its designee to inspect the Collateral at all
reasonable times; (g) take all reasonable steps to keep in full force and effect
all of the Contracts and all rights of way, easements and privileges necessary
or appropriate for the proper operation of the Contracts, including, without
limitation, the proper payment of all rentals, royalties and other sums due
thereunder and the proper performance of all obligations and other acts required
thereunder; (h) take all reasonable steps to cause the Collateral to be properly
maintained, developed and continuously operated for the production,
transportation, processing and sale of Precious Metals and protected against
drainage and damage, in a good and workmanlike manner as a prudent operator
would, in accordance with good mining practice and applicable federal, state and
local Laws, rules, regulations and orders; and (i) take all reasonable steps to
pay or cause to be paid when due all expenses incurred in connection with such
maintenance, development, operation and protection of the Collateral.

     7.8.  REMOVAL AND REPLACEMENT OF EQUIPMENT AND IMPROVEMENTS.  No material
           -----------------------------------------------------
part of the Collateral, except supplies consumed in the normal course of
business and operations and except for severed and extracted Precious Metals
produced from or attributable to any of the Interests which are sold in the
ordinary course of Grantor's business, shall be removed from any real property
associated with the Collateral or contiguous thereto, demolished, or materially
altered without the prior written consent of the Mortgagee.  The Grantor may,
without consent and free from the lien and security interest of this Instrument,
remove and dispose of any worn out or obsolete fixtures or equipment which are a
part of the Collateral upon thirty (30) days' prior written notice to the
Mortgagee.  Prior to or simultaneously with their removal, such fixtures and
equipment shall be replaced with fixtures or equipment of equal or greater
value.  The replacement fixtures or equipment shall be free of all Encumbrances
except for Permitted Encumbrances, shall automatically be subject to the lien
and security interest of this Instrument, and shall automatically be subject to
the granting clauses hereof.  Upon the sale of any removed fixtures and
equipment which are not replaced, the proceeds shall be applied as a prepayment
of the Indebtedness, to be applied in inverse order of any applicable maturity.
All sales shall be conducted in a commercially reasonable manner with a bona
fide effort to obtain a sale price of at least market value.

     7.9.  TAXES AND PERMITTED CONTESTS.  The Grantor shall pay:  (a) all Taxes
           ----------------------------
on or before the date any interest or penalty begins to accrue or attach
thereto; and (b) all lawful claims which, if unpaid, might become a lien or
charge upon the Collateral to such an extent as to materially and adversely
affect the Grantor's ability to use the Collateral for the purposes for which it
was designed or intended.  Provided however, that the Grantor shall not be
required to pay any Taxes or claim, the amount, validity or payment of which is
being contested in good faith, by appropriate legal proceedings, and so long as
no part of the Collateral is in danger of being sold, forfeited or lost and the
contest is not impairing the security for the Indebtedness.  Upon payment
thereof, the Grantor shall promptly supply the Mortgagee with receipts showing
the payment of the Taxes or claim.

<PAGE>
     7.10.  PRESERVATION OF APPURTENANCES.  The Grantor will do all things
            -----------------------------
necessary to preserve intact and unimpaired, all easements, appurtenances, and
other interests and rights in favor of, or constituting any portion of, the
Collateral.

                                   ARTICLE 8.

                           INSURANCE AND CONDEMNATION
                           --------------------------

     8.1.  MAINTENANCE OF INSURANCE.  The Grantor will obtain and maintain with
           ------------------------
financially sound and reputable insurers insurance of such types, in such
amounts, and on such terms, as shall be required by the Facility Agreement.

     8.2.  CONDEMNATION.  Grantor, immediately upon obtaining knowledge of the
           ------------
institution of any proceeding for a Taking, will notify the Mortgagee of such
proceedings.  The Mortgagee may participate in any such proceedings, and Grantor
will, from time to time, deliver to the Mortgagee all instruments requested by
them to permit such participation.

                                   ARTICLE 9.

                                     DEFAULT
                                     -------

     9.1.  DEFAULT.  The occurrence of any of the following shall constitute a
           -------
Default.

          9.1.1.  MONETARY DEFAULTS.  The failure of the Grantor to pay any
                  -----------------
     amounts due under the Facility Agreement or any of the other Transaction
     Documents when due and payable, whether at maturity, by obligation or
     election to prepay, or otherwise, in accordance with the terms of the
     Facility Agreement or other Transaction Documents.

          9.1.2.  DEFAULT UNDER FACILITY AGREEMENT.  Any other matter or thing
                  --------------------------------
     occurs which is a "Default" as such term is defined in the Facility
     Agreement.

     9.2.  PAYMENT OR PERFORMANCE BY MORTGAGEE.  Upon Default, the Mortgagee
           -----------------------------------
may, at its option but shall not be required to, make any payments or take any
other actions it deems necessary or desirable to cure the Default or conserve
the Collateral.  The Grantor shall, upon demand, reimburse the Mortgagee for all
sums so advanced or expenses incurred by them, together with interest at the
Default Rate and charges, if any, from the date of advance or payment of the
same, which sums shall be secured by this Instrument.  To the extent permitted
by Law, the Mortgagee may but shall not be required to enter upon the Collateral
without prior notice to the Grantor or judicial process and may take any action
to enforce its rights under this Section 9.2 without liability to the Grantor.

     9.3.  POSSESSION BY MORTGAGEE.  Upon the occurrence of Default, to the
           -----------------------
extent permitted by Law, the Mortgagee may but shall not be required to enter
upon and take possession of the Collateral without notice to the Grantor,
judicial process, or the appointment of a receiver.  The

<PAGE>
Mortgagee may exclude all persons from the Collateral and may proceed to operate
the Collateral and receive all Revenues. The Mortgagee shall have the right as
agent for the Grantor to Operate the Collateral and carry on the business of the
Grantor, either in the name of the Grantor or otherwise. The Mortgagee shall not
be liable to the Grantor for taking possession of the Collateral, as aforesaid,
nor shall it be required to make repairs or replacements, and the Mortgagee
shall be liable to account only for Revenues actually received by it. All
Revenues collected by the Mortgagee shall be applied (a) first, to pay all
expenses incurred in taking possession of the Collateral, (b) second, to pay
costs and expenses to Operate the Collateral or to comply with the terms of the
Transaction Documents, including reasonable attorney's fees, (c) third, to pay
all sums secured by the Transaction Documents in the order of priority selected
by Mortgagee, and (d) fourth, with the balance, if any, to the Grantor or such
other Person as may be entitled thereto. Nothing contained herein shall impose
upon Mortgagee any liability to perform Grantor's obligations under any
Contract.

     9.4.  COLLECTION OF REVENUES.  Upon the occurrence of a Default and written
           ----------------------
demand by the Mortgagee to Grantor and to any party to a Contract with Grantor,
all Revenues shall be payable directly to the Mortgagee.

     9.5.  POWER OF SALE.  Upon the occurrence of a Default, the Mortgagee may
           -------------
declare all of the sums secured by this Instrument immediately due and payable
without further demand and may, to the extent permitted by Law, invoke the power
of sale and any other remedies permitted by Law.  Mortgagee shall prepare and
record a copy of a written notice of the occurrence of a Default and of
Mortgagee's election to cause the Collateral to be sold in the county in which
the Collateral is located.  Mortgagee shall publish a notice of sale for the
time and in the manner provided by applicable law and shall mail copies of such
notice of sale in the manner prescribed by applicable law to Grantor and to the
other persons prescribed by applicable law.  After the lapse of such time as may
be required by applicable Law, Mortgagee, without demand on Grantor, shall sell
the Collateral at public auction to the highest bidder for cash at the time and
place and under the terms designated in the notice of sale in one or more
parcels and in such order as Mortgagee may determine.  Mortgagee may postpone
sale of all or any part of the Collateral by public announcement at the time and
place of any previously scheduled sale.  Mortgagee shall deliver to the
purchaser a certificate describing the Collateral and the time when the
purchaser will be entitled to a deed thereto.  The recitals in the deed shall be
prima facie evidence of the truth of the statements made therein.

     9.6.  APPLICATION OF PROCEEDS OF SALE.  Upon a foreclosure sale, the
           -------------------------------
purchaser shall receive that portion of or interest in the Collateral purchased
by it free from any claims of the Grantor and without any liability to see to
the application of the purchase money.  The net proceeds from the sale, after
deduction of all costs of the sale, shall be applied (a) first, to pay all
expenses incurred in taking possession of the Collateral, (b) second, to pay the
costs and expenses to operate the Collateral or the Transaction Documents,
including reasonable attorney's fees, (c) third, to pay all sums secured by or
due under the Transaction Documents in the order of priority determined by the
Mortgagee, and (d) fourth, the balance, if any, to the Grantor or to other
Persons entitled thereto.

<PAGE>
     9.7.  INSURANCE OR CONDEMNATION AFTER DEFICIENCY.  If the Collateral is
           ------------------------------------------
sold at a foreclosure sale prior to receipt of an insurance or a condemnation
award or payment, the Mortgagee shall receive and apply the proceeds of the
award or payment toward the satisfaction of any deficiency resulting from the
foreclosure sale, whether or not a deficiency judgment is sought, recovered, or
denied.

     9.8.  RIGHT OF THE MORTGAGEE TO BID.  The Mortgagee may bid and become the
           -----------------------------
purchaser at a foreclosure sale under this Instrument.

     9.9.  APPOINTMENT OF A RECEIVER.  Upon the occurrence of a Default, the
           -------------------------
Mortgagee shall, to the extent permitted by Law, be entitled to the immediate ex
parte appointment of a receiver for the Collateral, without regard to the value
of the Collateral or the solvency of any person liable for payment of the
amounts due under the Transaction Documents.

     9.10.  REMEDIES CUMULATIVE.  All rights, powers, and remedies of the
            -------------------
Mortgagee provided for in the Transaction Documents are cumulative and
concurrent and shall be in addition to and not exclusive of any appropriate
legal or equitable remedy provided by Law or contract.  Exercise of any right,
power, or remedy shall not preclude the simultaneous or subsequent exercise of
any other by the Mortgagee.

     9.11.  CONSENT TO JURISDICTION AND VENUE.  The Grantor consents to be sued
            ---------------------------------
in any jurisdiction where any of the Collateral is located.

     9.12.  RIGHTS UNDER THE UNIFORM COMMERCIAL CODE.  If a Default shall have
            ----------------------------------------
occurred and be continuing, the Mortgagee, without any other notice to or demand
upon the Grantor, shall have in any jurisdiction in which enforcement hereof is
sought, in addition to all other rights and remedies, the rights and remedies of
a secured party under the Code and any additional rights and remedies which may
be provided to a secured party in any jurisdiction in which Collateral is
located, including, without limitation, the right to take possession of the
Collateral, and for that purpose the Mortgagee may, so far as the Grantor can
give authority therefor, enter upon any premises on which the Collateral may be
situated and remove the same therefrom.  The Mortgagee may in its discretion
require the Grantor to assemble all or any part of the Collateral at such
location or locations within the jurisdiction(s) of the Grantor's principal
office(s) or at such other locations as the Mortgagee may reasonably designate.
Unless the Collateral is perishable or threatens to decline speedily in value or
is of a type customarily sold on a recognized market, the Mortgagee shall give
to the Grantor at least five Business Days prior written notice of the time and
place of any public sale of Collateral or of the time after which any private
sale or any other intended disposition is to be made.  The Grantor hereby
acknowledges that five Business Days prior written notice of such sale or sales
shall be reasonable notice. In addition, the Grantor waives any and all rights
that it may have to a judicial hearing in advance of the enforcement of any of
the Mortgagee's rights and remedies hereunder, including, without limitation,
its right following a Default to take immediate possession of the Collateral and
to exercise its rights and remedies with respect thereto.

     9.13.  GRANTOR'S WAIVERS.  The Grantor waives demand, notice, protest,
            -----------------
notice of acceptance of this Instrument, notice of loans made, credit extended,
Collateral received or

<PAGE>
delivered or other action taken in reliance hereon and all other demands and
notices of any description. With respect to both the Obligations and the
Collateral, the Grantor assents to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of or
failure to perfect any security interest in any Collateral, to the addition or
release of any party or person primarily or secondarily liable, to the
acceptance of partial payment thereon and the settlement, compromising or
adjusting of any thereof, all in such manner and at such time or times as the
Mortgagee may deem advisable. The Mortgagee shall have no duty as to the
collection or protection of the Collateral or any income therefrom, the
preservation of rights against prior parties, or the preservation of any rights
pertaining thereto beyond the safe custody thereof as set forth in Section 11.2.
The Grantor further waives any and all other suretyship defenses.

     9.14.  MARSHALING.  The Mortgagee shall not be required to marshal any
            ----------
present or future collateral security (including but not limited to the
Collateral) for, or other assurances of payment of, the obligations secured
hereby or any of them or to resort to such collateral security or other
assurances of payment in any particular order, and all of its rights and
remedies hereunder and in respect of such collateral security and other
assurances of payment shall be cumulative and in addition to all other rights
and remedies, however existing or arising.  To the extent that it lawfully may,
the Grantor hereby agrees that it will not invoke any law relating to the
marshalling of collateral which might cause delay in or impede the enforcement
of the Mortgagee's rights and remedies under this Instrument or under any other
instrument creating or evidencing any of the obligations secured hereby or under
which any of such obligations is outstanding or by which any of such obligations
is secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, the Grantor hereby irrevocably waives the benefits of all such
laws.

                                   ARTICLE 10.

                                  MISCELLANEOUS
                                  -------------

     10.1.  WAIVERS.  No term of any Transaction Document shall be deemed waived
            -------
unless the waiver shall be in writing and signed by the party or parties making
the waiver.  Any failure by the Mortgagee to insist upon the Grantor's strict
performance of any of the terms of the Transaction Documents shall not be deemed
or construed as a waiver of those or any other terms.  Any delay in exercising
or enforcing any rights with respect to a Default shall not bar the Mortgagee
from exercising any rights under the Transaction Documents, or at law or in
equity.

     10.2.  CONSENTS.
            --------

          10.2.1.  The Mortgagee may (a) release any person liable under the
     Transaction Documents, (b) release any part of the Collateral, (c) extend
     the time of payment of the Indebtedness, or (d) modify the terms of the
     Transaction Documents, regardless of consideration and without notice to or
     consent by the holder of any subordinate lien on the Collateral. No
     release, extension or modification of the security held under the
     Transaction Documents shall impair or affect the lien of this Instrument or
     the priority of such lien over any subordinate lien.

<PAGE>
          10.2.2.  Regardless of whether a Person has been given notice or has
     given its prior consent, it shall not be relieved of any obligation under
     any Transaction Documents by reason of (a) the failure of the Mortgagee or
     any other Person to take any action, foreclose, or otherwise enforce any
     provision of the Transaction Documents, (b) the release of any other Person
     liable under any Indebtedness Document, (c) the release of any portion of
     the security under the Transaction Documents, or (d) any agreement or
     stipulation between any subsequent owners of the Collateral and Mortgagee
     extending the time of payment or modifying the terms of any Indebtedness
     Document.

     10.3.  HEADINGS.  All Article and Section headings are for convenience only
            --------
and shall not be interpreted to enlarge or restrict the provisions of this
Instrument.

     10.4.  NOTICES.  Except as otherwise expressly provided herein, any notice,
            -------
order, instruction, request or other communication required or permitted to be
given under this Agreement shall be in writing and deemed to have been properly
given when delivered in person, or when sent by facsimile transmission or other
electronic means, or upon receipt of notice sent by overnight mail or certified
or registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.  Any party may change its
address for notices in the manner set forth above.

WESTERN MESQUITE MINES, INC.
7000 Independence Parkway
Suite 160, #135
Plano, Texas 75025
Attn:  Toby Mancuso
Fax:  972-208-2155
E-Mail:  tmancuso@gte.net

RMB International (Dublin) Limited          RMB Resources Limited, agent
28 Shelbourne Road                          Level 3, One Mitre Square
Ballsbridge                                 London EC3A 5AN
Dubin 4 Ireland                             United Kingdom
Attn:  Michael Schonfeld                    Attn:  Michael Schonfeld
Fax:  44-207-626-9041                       Fax:  44-207-626-9041
E-mail: Michael.Schonfeld@rmbi.co.uk        E-mail: Michael.Schonfeld@rmbi.co.uk

     10.5.  BINDING EFFECT.  No transfer of any portion of the Collateral or any
            --------------
interest thereon shall relieve any transferor of its obligations under the
Transaction Documents.  No transferor of any obligation under any Indebtedness
Document shall be relieved of its obligations by any modification of any
Indebtedness Document subsequent to the transfer.

     10.6.  AMENDMENT.  No Indebtedness Document may be modified except in
            ---------
writing signed by the Mortgagee and the Grantor.

     10.7.  SEVERABILITY.  In the event any provision of this Instrument shall
            ------------
be held invalid or unenforceable by any court of competent jurisdiction, such
holding shall not invalidate or render unenforceable any other provision hereof.

<PAGE>
     10.8.  NOTICES FROM GOVERNMENTAL AUTHORITIES AFFECTING THE COLLATERAL.  Any
            --------------------------------------------------------------
notice from any governmental or quasi-governmental authority or corporation with
respect to the Collateral sent to or known by the Grantor shall be promptly
transmitted to the Mortgagee.

     10.9.  APPLICABLE LAW.  This Instrument shall be governed by the Laws of
            --------------
the State of Colorado, without regard to the principles of conflict of laws.

     10.10.  TIME OF THE ESSENCE.  Time is of the essence with respect to this
             -------------------
Instrument and the Transaction Documents.

     10.11.  EFFECT OF PAYMENTS.  Any payment or other performance made in
             ------------------
accordance with the Transaction Documents by any Person other than Grantor shall
not entitle such Person to any right of subrogation under the Transaction
Documents, unless expressly consented to in writing by the Mortgagee.

     10.12.  WORD FORMS.  The use of any gender, tense, or conjugation herein
             ----------
shall be applicable to all genders, tenses and conjugations.  The use of the
singular shall include the plural and the plural shall include the singular.

     10.13.  FINANCING.  Some of the Collateral is or is to become fixtures on
             ---------
the real property associated with the Collateral.  Some of the Collateral are
as-extracted collateral.  The above described Precious Metals or other
substances of value which may be extracted from the earth, and the accounts
relating thereto will be financed at the real property associated with the
Collateral.  This Instrument is to be filed for record in, among other places,
the real estate records of each county in which the affected real property is
located; to wit, all of those listed in Exhibit A.

     WITNESS the execution hereof by the Grantor, the attesting by an additional
officer of the Grantor, and the affixing of the Grantor's seal.

WESTERN MESQUITE MINES, INC.

By:    /s/ John P. Ryan
     ----------------------
Title:    Secretary
        -------------------
Printed Name:  John P. Ryan
               ------------

                          CERTIFICATE OF ACKNOWLEDGMENT

State of Colorado     )
                      )     ss.
County of Denver      )

     Before me, the undersigned, a Notary Public, on this 5th  day of November,
2003, personally appeared John P. Ryan to me known personally, and who, being by
me duly sworn, deposes and says that he is the Secretary of Western Mesquite
Mines, Inc., and that said instrument was signed and sealed on behalf of said
corporation by authority of its Board of Directors, and that said instrument is
the free act and deed of said corporation.

<PAGE>
My commission expires: 7-29-06

                                     /s/ Mary Young
(SEAL)                         ------------------------------
                                      Notary Public

ACCEPTED:
RMB INTERNATIONAL (DUBLIN)
LIMITED

By: /s/ D. Coetzee                            By: /s/ S. Duplessis
   ---------------------------------             -----------------
Title:   Authorized Signatory                 Title: Authorized Signatory
      -----------------------                       ---------------------
Printed Name:   D. Coetzee                    Printed Name: S. Duplessis
             -------------                                 -------------

RMB RESOURCES LIMITED, AGENT

By: /s/ Robert Gray
   ----------------
Title:  Director
      ----------
Printed Name: Robert Gray
             ------------

<PAGE>EXHIBIT 10.5

                                PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Agreement"), dated as of November 5, 2003, is
entered into between WESTERN GOLDFIELDS, INC., a corporation organized under the
laws of the State of Idaho and having an address of 7000 Independence Parkway,
Suite 160 #135, Plano, Texas 75025 ("Pledgor"), and RMB INTERNATIONAL (DUBLIN)
LIMITED, a corporation organized under the laws of the Republic of Ireland and
having an address of 28 Shelbourne Road, Ballsbridge, Dublin 4 Ireland, and its
agent, RMB RESOURCES LIMITED, a corporation organized under the laws of England
and having an address of Level 3, One Mitre Square, London EC3A 5AN, United
Kingdom ("Secured Party").

     WHEREAS, Pledgor and Secured Party are parties to that certain Facility
Agreement (as amended, restated, or otherwise modified from time to time, the
"Facility Agreement"), of even date herewith, pursuant to which Secured Party
has agreed to make loans to Pledgor in accordance with the terms and conditions
contained in the Facility Agreement;

     WHEREAS, Pledgor beneficially owns the "Equity Interests" (as hereinafter
defined) in the "Issuers" (as hereinafter defined);

     WHEREAS, to induce Secured Party to make the loans provided to Pledgor
pursuant to the Facility Agreement, Pledgor desires to pledge, grant, transfer,
and assign to Secured Party a security interest in the "Collateral" (as
hereinafter defined) to secure the "Obligations" (as hereinafter defined), as
provided herein.

     NOW, THEREFORE, in consideration of the mutual promises, covenants,
representations, and warranties set forth herein and for other good and valuable
consideration, the parties hereto agree as follows:

1.     DEFINITIONS AND CONSTRUCTION.
       ----------------------------

     (a)     DEFINITIONS.  All initially capitalized terms used herein and not
             -----------
otherwise defined herein shall have the meaning ascribed thereto in the Facility
Agreement.  As used in this Agreement:

     "Bankruptcy Code" means United States Bankruptcy Code (11 U.S.C. Section
101 et seq.), as in effect from time to time, and any successor statute thereto.

     "Business Day" means a day on which banks are open for general banking
business in both London, England and Denver, Colorado, excluding Saturdays,
Sundays and public holidays.

     "Code" means the Uniform Commercial Code as in effect in the State of
Colorado from time to time.

     "Collateral" shall mean the Pledged Interests, the Future Rights, and the
Proceeds, collectively.

                                        1
<PAGE>
     "Default" shall have the meaning ascribed thereto in the Facility
Agreement.

     "Equity Interests" means all securities, shares, units, options, warrants,
interests, participations, or other equivalents (regardless of how designated)
of or in a corporation, partnership, limited liability company, or similar
entity, whether voting or nonvoting, certificated or uncertificated, including
general partner partnership interests, limited partner partnership interests,
common stock, preferred stock, or any other "equity security" (as such term is
defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934).
"Equity Interests" shall mean and include all of the issued and outstanding
shares of any class, kind or nature of any of Pledgor's subsidiaries, including
Western Mesquite Mines, Inc. and Calumet Mining Company.

     "Facility Agreement" shall have the meaning ascribed thereto in the
recitals to this Agreement.

     "Future Rights" shall mean:  (a) all Equity Interests (other than Pledged
Interests) of the Issuer, and all securities convertible or exchangeable into,
and all warrants, options, or other rights to purchase, Equity Interests of the
Issuers; and (b) the certificates or instruments representing such Equity
Interests, convertible or exchangeable securities, warrants, and other rights
and all dividends, cash, options, warrants, rights, instruments, and other
property or proceeds from time to time received, receivable, or otherwise
distributed in respect of or in exchange for any or all of such Equity
Interests.

     "Holder" and "Holders" shall have the meanings ascribed thereto in Section
3 of this Agreement.

     "Issuers" shall mean each of the Persons identified as an Issuer on
Schedule 1 attached hereto (or any addendum thereto), and any successors
thereto, whether by merger or otherwise.

     "Lien" shall mean any lien, mortgage, pledge, assignment (including any
assignment of rights to receive payments of money), security interest, charge,
or encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, or any agreement to give
any security interest).

     "Obligations" shall mean all liabilities, obligations, or undertakings
owing by Pledgor to Secured Party of any kind or description arising out of or
outstanding under, advanced or issued pursuant to, or evidenced by the Facility
Agreement, this Agreement, or the other Transaction Documents, irrespective of
whether for the payment of money, whether direct or indirect, absolute or
contingent, due or to become due, voluntary or involuntary, whether now existing
or hereafter arising, and including all interest (including interest that
accrues after the filing of a case under the Bankruptcy Code) and any and all
costs, fees (including attorneys fees), and expenses which Pledgor is required
to pay pursuant to any of the foregoing, by law, or otherwise.

     "Pledged Interests" shall mean (a) all Equity Interests of the Issuers
identified on Schedule 1; and (b) the certificates or instruments representing
such Equity Interests.

     "Pledgor" shall have the meaning ascribed thereto in the preamble to this
Agreement.

                                        2
<PAGE>
     "Proceeds" shall mean all proceeds (including proceeds of proceeds) of the
Pledged Interests and Future Rights including all:  (a) rights, benefits,
distributions, premiums, profits, dividends, interest, cash, instruments,
documents of title, accounts, contract rights, inventory, equipment, general
intangibles, payment intangibles, deposit accounts, chattel paper, and other
property from time to time received, receivable, or otherwise distributed in
respect of or in exchange for, or as a replacement of or a substitution for, any
of the Pledged Interests, Future Rights, or proceeds thereof (including any
cash, Equity Interests, or other securities or instruments issued after any
recapitalization, readjustment, reclassification, merger or consolidation with
respect to the Issuers and any security entitlements, as defined in Section
8-102(a)(17) of the Code, with respect thereto); (b) "proceeds," as such term is
defined in Section 9-102(a)(64) of the Code; (c) proceeds of any insurance,
indemnity, warranty, or guaranty (including guaranties of delivery) payable from
time to time with respect to any of the Pledged Interests, Future Rights, or
proceeds thereof; (d) payments (in any form whatsoever) made or due and payable
to Pledgor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Pledged Interests,
Future Rights, or proceeds thereof; and (e) other amounts from time to time paid
or payable under or in connection with any of the Pledged Interests, Future
Rights, or proceeds thereof.

     "Registered Organization" shall have the meaning ascribed thereto in
Section 9-102(a)(7) of the Code.

     "Secured Party" shall have the meaning ascribed thereto in the preamble to
this Agreement, together with its successors or assigns.

     "Securities Act" shall have the meaning ascribed thereto in Section 9(c) of
this Agreement.

     "Transaction Documents" shall mean the Facility Agreement and all other
agreements, instruments, or other documents entered into or executed in
connection therewith, in each case, as amended, restated, or otherwise modified
from time to time.

     (b)     CONSTRUCTION.
             ------------

          (i)     Unless the context of this Agreement clearly requires
otherwise, references to the plural include the singular and to the singular
include the plural, the part includes the whole, the term "including" is not
limiting, and the term "or" has, except where otherwise indicated, the inclusive
meaning represented by the phrase "and/or." The words "hereof," "herein,"
"hereby," "hereunder," and other similar terms in this Agreement refer to this
Agreement as a whole and not exclusively to any particular provision of this
Agreement. Article, section, subsection, exhibit, and schedule references are to
this Agreement unless otherwise specified. All of the exhibits or schedules
attached to this Agreement shall be deemed incorporated herein by reference. Any
reference to any of the following documents includes any and all alterations,
amendments, restatements, extensions, modifications, renewals, or supplements
thereto or thereof, as applicable: this Agreement, the Facility Agreement, or
any of the other Transaction Documents.

                                        3
<PAGE>
          (ii)     Neither this Agreement nor any uncertainty or ambiguity
herein shall be construed or resolved against Secured Party or Pledgor, whether
under any rule of construction or otherwise. On the contrary, this Agreement has
been reviewed by both of the parties and their respective counsel and shall be
construed and interpreted according to the ordinary meaning of the words used so
as to fairly accomplish the purposes and intentions of the parties hereto.

          (iii)     In the event of any direct conflict between the express
terms and provisions of this Agreement and of the Facility Agreement, the terms
and provisions of the Facility Agreement shall control.

2.     PLEDGE.  As security for the prompt payment and performance of the
       ------
Obligations in full by Pledgor when due, whether at stated maturity, by
acceleration or otherwise (including amounts that would become due but for the
operation of the provisions of the Bankruptcy Code), Pledgor hereby pledges,
grants, transfers, and assigns to Secured Party a security interest in all of
Pledgor's right, title, and interest in and to the Collateral.

3.     DELIVERY AND REGISTRATION OF COLLATERAL.
       ---------------------------------------

     (a)     All certificates or instruments representing or evidencing the
Collateral shall be promptly delivered by Pledgor to Secured Party or Secured
Party's designee pursuant hereto at a location designated by Secured Party and
shall be held by or on behalf of Secured Party pursuant hereto, and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed
indorsement certificate in the form attached hereto as Exhibit A or other
instrument of transfer or assignment in blank, in form and substance
satisfactory to Secured Party.

     (b)     Upon the occurrence and during the continuance of a Default,
Secured Party shall have the right, at any time in its discretion and without
notice to Pledgor, to transfer to or to register on the books of the Issuers (or
of any other Person maintaining records with respect to the Collateral) in the
name of Secured Party or any of its nominees any or all of the Collateral.  In
addition, Secured Party shall have the right at any time to exchange
certificates or instruments representing or evidencing Collateral for
certificates or instruments of smaller or larger denominations.

     (c)     If, at any time and from time to time, any Collateral (including
any certificate or instrument representing or evidencing any Collateral) is in
the possession of a person or entity other than Secured Party or Pledgor (a
"Holder"), then Pledgor shall immediately, at Secured Party's option, either
cause such Collateral to be delivered into Secured Party's possession, or cause
such Holder to enter into a control agreement, in form and substance
satisfactory to Secured Party, and take all other steps deemed necessary by
Secured Party to perfect the security interest of Secured Party in such
Collateral, all pursuant to Sections  9-106 and 9-313 of the Code or other
applicable law governing the perfection of Secured Party's security interest in
the Collateral in the possession of such Holder.

     (d)     Any and all Collateral (including dividends, interest, and other
cash distributions) at any time received or held by Pledgor shall be so received
or held in trust for Secured Party, shall be segregated from other funds and
property of Pledgor and shall be forthwith delivered to Secured Party in the
same form as so received or held, with any necessary indorsements;

                                        4
<PAGE>
provided, that cash dividends or distributions received by Pledgor, may be
retained by Pledgor in accordance with Section 4 and used in the ordinary course
of Pledgor's business.

     (e)     If at any time, and from time to time, any Collateral consists of
an uncertificated security or a security in book entry form, then Pledgor shall
immediately cause such Collateral to be registered or entered, as the case may
be, in the name of Secured Party, or otherwise cause Secured Party's security
interest thereon to be perfected in accordance with applicable law.

4.     VOTING RIGHTS AND DIVIDENDS.
       ---------------------------

     (a)     So long as no Default shall have occurred and be continuing,
Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Collateral or any part thereof for any purpose not
inconsistent with the terms of the Transaction Documents and shall be entitled
to receive and retain any cash dividends or distributions paid or distributed in
respect of the Collateral.

     (b)     Upon the occurrence and during the continuance of a Default, all
rights of Pledgor to exercise the voting and other consensual rights or receive
and retain cash dividends or distributions that it would otherwise be entitled
to exercise or receive and retain, as applicable pursuant to Section 4(a), shall
cease, and all such rights shall thereupon become vested in Secured Party, who
shall thereupon have the sole right to exercise such voting or other consensual
rights and to receive and retain such cash dividends and distributions.  Pledgor
shall execute and deliver (or cause to be executed and delivered) to Secured
Party all such proxies and other instruments as Secured Party may reasonably
request for the purpose of enabling Secured Party to exercise the voting and
other rights which it is entitled to exercise and to receive the dividends and
distributions that it is entitled to receive and retain pursuant to the
preceding sentence.

5.     REPRESENTATIONS, WARRANTIES AND COVENANT OF PLEDGOR.  Pledgor represents,
       ---------------------------------------------------
warrants, and covenants as follows:

     (a)     Pledgor has taken all steps it deems necessary or appropriate to be
informed on a continuing basis of changes or potential changes affecting the
Collateral (including rights of conversion and exchange, rights to subscribe,
payment of dividends, reorganizations or recapitalization, tender offers and
voting and registration rights), and Pledgor agrees that Secured Party shall
have no responsibility or liability for informing Pledgor of any such changes or
potential changes or for taking any action or omitting to take any action with
respect thereto.

     (b)     Pledgor is a corporation organized and in good standing under the
laws of the State of Idaho.  Pledgor's registration number in the State of Idaho
is C14508.

     (c)     All information herein or hereafter supplied to Secured Party by or
on behalf of Pledgor in writing with respect to the Collateral is, or in the
case of information hereafter supplied will be, accurate and complete in all
material respects.

     (d)     Pledgor is and will be the sole legal and beneficial owner of the
Collateral (including the Pledged Interests and all other Collateral acquired by
Pledgor after the date

                                        5
<PAGE>
hereof) free and clear of any adverse claim, Lien, or other right, title, or
interest of any party, other than the Liens in favor of Secured Party.

     (e)     This Agreement, and the delivery to Secured Party of the Pledged
Interests representing Collateral (or the control agreements referred to in
Section 3 of this Agreement), creates a valid, perfected, and first priority
security interest in one hundred percent (100%) of the Pledged Interests in
favor of Secured Party securing payment of the Obligations, and all actions
necessary to achieve such perfection have been duly taken.

     (f)     Schedule 1 to this Agreement is true and correct and complete in
all material respects. Without limiting the generality of the foregoing:  (i)
except as set forth on Schedule 1, all the Pledged Interests are in certificated
form, and, except to the extent registered in the name of Secured Party or its
nominee pursuant to the provisions of this Agreement, are registered in the name
of Pledgor; and (ii) the Pledged Interests as to each of the Issuers constitute
at least the percentage of all the fully diluted issued and outstanding Equity
Interests of such Issuer as set forth in Schedule 1 to this Agreement.

     (g)     There are no presently existing Future Rights or Proceeds owned by
Pledgor.

     (h)     The Pledged Interests have been duly authorized and validly issued
and are fully paid and nonassessable.

     (i)     Neither the pledge of the Collateral pursuant to this Agreement nor
the extensions of credit represented by the Obligations violates Regulation T, U
or X of the Board of Governors of the Federal Reserve System.

6.     FURTHER ASSURANCES.
       ------------------

     (a)     Pledgor agrees that from time to time, at the expense of Pledgor,
Pledgor will promptly execute and deliver all further instruments and documents,
and take all further action that may be necessary or reasonably desirable, or
that Secured Party may request, in order to perfect and protect any security
interest granted or purported to be granted hereby or to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral.  Without limiting the generality of the foregoing, Pledgor will:
(i) at the request of Secured Party, mark conspicuously each of its records
pertaining to the Collateral with a legend, in form and substance reasonably
satisfactory to Secured Party, indicating that such Collateral is subject to the
security interest granted hereby; (ii) execute and deliver such instruments or
notices, as may be necessary or reasonably desirable, or as Secured Party may
request, in order to perfect and preserve the first priority security interests
granted or purported to be granted hereby; (iii) allow inspection of the
Collateral by Secured Party or Persons designated by Secured Party; and (iv)
appear in and defend any action or proceeding that may affect Pledgor's title to
or Secured Party's security interest in the Collateral.

     (b)     Pledgor hereby authorizes Secured Party to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral.  A carbon, photographic, or other reproduction of
this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

                                        6
<PAGE>
     (c)     Pledgor will furnish to Secured Party, upon the request of Secured
Party:  (i) a certificate executed by an authorized officer of Pledgor, and
dated as of the date of delivery to Secured Party, itemizing in such detail as
Secured Party may request, the Collateral which, as of the date of such
certificate, has been delivered to Secured Party by Pledgor pursuant to the
provisions of this Agreement; and (ii) such statements and schedules further
identifying and describing the Collateral and such other reports in connection
with the Collateral as Secured Party may request.

7.     COVENANTS OF PLEDGOR.  Pledgor shall:
       --------------------

     (a)     Perform each and every covenant in the Transaction Documents
applicable to Pledgor;

     (b)     Neither change its jurisdiction of organization nor cease to be a
corporation, in each case without giving Secured Party at least thirty (30) days
prior written notice thereof;

     (c)     To the extent it may lawfully do so, use its best efforts to
prevent the Issuers from issuing Future Rights or Proceeds, except for cash
dividends and other distributions to be paid by any Issuer to Pledgor; and

     (d)     Upon receipt by Pledgor of any material notice, report, or other
communication from any of the Issuers or any Holder relating to all or any part
of the Collateral, deliver such notice, report or other communication to Secured
Party as soon as possible, but in no event later than five (5) days following
the receipt thereof by Pledgor.

8.     SECURED PARTY AS PLEDGOR'S ATTORNEY-IN-FACT.
       -------------------------------------------

     (a)     Pledgor hereby irrevocably appoints Secured Party as Pledgor's
attorney-in-fact, with full authority in the place and stead of Pledgor and in
the name of Pledgor, Secured Party or otherwise, from time to time at Secured
Party's discretion, to take any action and to execute any instrument that
Secured Party may reasonably deem necessary or advisable to accomplish the
purposes of this Agreement, including:  (i) upon the occurrence and during the
continuance of a Default, to receive, indorse, and collect all instruments made
payable to Pledgor representing any dividend, interest payment or other
distribution in respect of the Collateral or any part thereof to the extent
permitted hereunder and to give full discharge for the same and to execute and
file governmental notifications and reporting forms; (ii) to enter into any
control agreements Secured Party deems necessary pursuant to Section 3 of this
Agreement; or (iii) to arrange for the transfer of the Collateral on the books
of any of the Issuers or any other Person to the name of Secured Party or to the
name of Secured Party's nominee.

     (b)     In addition to the designation of Secured Party as Pledgor's
attorney-in-fact in subsection (a), Pledgor hereby irrevocably appoints Secured
Party as Pledgor's agent and attorney-in-fact to make, execute and deliver any
and all documents and writings which may be necessary or appropriate for
approval of, or be required by, any regulatory authority located in any city,
county, state or country where Pledgor or any of the Issuers engage in business,
in order to transfer or to more effectively transfer any of the Pledged
Interests or otherwise enforce Secured Party's rights hereunder.

                                        7
<PAGE>
9.     REMEDIES UPON DEFAULT.  Upon the occurrence and during the continuance of
       ---------------------
a Default:

     (a)     Secured Party may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party on default under the Code
(irrespective of whether the Code applies to the affected items of Collateral),
and Secured Party may also without notice (except as specified below) sell the
Collateral or any part thereof in one or more parcels at public or private sale,
at any exchange, broker's board or at any of Secured Party's offices or
elsewhere, for cash, on credit or for future delivery, at such time or times and
at such price or prices and upon such other terms as Secured Party may deem
commercially reasonable, irrespective of the impact of any such sales on the
market price of the Collateral.  To the maximum extent permitted by applicable
law, Secured Party may be the purchaser of any or all of the Collateral at any
such sale and shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such public sale, to use and apply all or any part of the
Obligations as a credit on account of the purchase price of any Collateral
payable at such sale.  Each purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of Pledgor, and Pledgor
hereby waives (to the extent permitted by law) all rights of redemption, stay,
or appraisal that it now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted.  Pledgor agrees that,
to the extent notice of sale shall be required by law, at least ten (10)
calendar days notice to Pledgor of the time and place of any public sale or the
time after which a private sale is to be made shall constitute reasonable
notification.  Secured Party shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given.  Secured Party may
adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned.  To the maximum extent
permitted by law, Pledgor hereby waives any claims against Secured Party arising
because the price at which any Collateral may have been sold at such a private
sale was less than the price that might have been obtained at a public sale,
even if Secured Party accepts the first offer received and does not offer such
Collateral to more than one offeree.

     (b)     Pledgor hereby agrees that any sale or other disposition of the
Collateral conducted in conformity with reasonable commercial practices of
banks, insurance companies, or other financial institutions in the city and
state where Secured Party is located in disposing of property similar to the
Collateral shall be deemed to be commercially reasonable.

     (c)     Pledgor hereby acknowledges that the sale by Secured Party of any
Collateral pursuant to the terms hereof in compliance with the Securities Act of
1933 as now in effect or as hereafter amended, or any similar statute hereafter
adopted with similar purpose or effect (the "Securities Act"), as well as
applicable "Blue Sky" or other state securities laws, may require strict
limitations as to the manner in which Secured Party or any subsequent transferee
of the Collateral may dispose thereof.  Pledgor acknowledges and agrees that in
order to protect Secured Party's interest it may be necessary to sell the
Collateral at a price less than the maximum price attainable if a sale were
delayed or were made in another manner, such as a public offering under the
Securities Act.  Pledgor has no objection to sale in such a manner and agrees
that Secured Party shall have no obligation to obtain the maximum possible price
for the Collateral.  Without limiting the generality of the foregoing, Pledgor
agrees that, upon the occurrence and during the continuation of a Default,
Secured Party may, subject to applicable

                                        8
<PAGE>
law, from time to time attempt to sell all or any part of the Collateral by a
private placement, restricting the bidders and prospective purchasers to those
who will represent and agree that they are purchasing for investment only and
not for distribution. In so doing, Secured Party may solicit offers to buy the
Collateral or any part thereof for cash, from a limited number of investors
reasonably believed by Secured Party to be institutional investors or other
accredited investors who might be interested in purchasing the Collateral. If
Secured Party shall solicit such offers, then the acceptance by Secured Party of
one of the offers shall be deemed to be a commercially reasonable method of
disposition of the Collateral.

     (d)     If Secured Party shall determine to exercise its right to sell all
or any portion of the Collateral pursuant to this Section, Pledgor agrees that,
upon request of Secured Party, Pledgor will, at its own expense:

          (i)     use its best efforts to execute and deliver, and cause the
Issuers and the directors and officers thereof to execute and deliver, all such
instruments and documents, and to do or cause to be done all such other acts and
things, as may be necessary or, in the opinion of Secured Party, advisable to
register such Collateral under the provisions of the Securities Act, and to
cause the registration statement relating thereto to become effective and to
remain effective for such period as prospectuses are required by law to be
furnished, and to make all amendments and supplements thereto and to the related
prospectuses which, in the opinion of Secured Party, are necessary or advisable,
all in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto;

          (ii)     use its best efforts to qualify the Collateral under the
state securities laws or "Blue Sky" laws and to obtain all necessary
governmental approvals for the sale of the Collateral, as requested by Secured
Party;

          (iii)     cause the Issuers to make available to their respective
security holders, as soon as practicable, an earnings statement which will
satisfy the provisions of Section 11(a) of the Securities Act;

          (iv)     execute and deliver, or cause the officers and directors of
the Issuers to execute and deliver, to any person, entity or governmental
authority as Secured Party may choose, any and all documents and writings which,
in Secured Party's reasonable judgment, may be necessary or appropriate for
approval, or be required by, any regulatory authority located in any city,
county, state or country where Pledgor or the Issuers engage in business, in
order to transfer or to more effectively transfer the Pledged Interests or
otherwise enforce Secured Party's rights hereunder; and

          (v)     do or cause to be done all such other acts and things as may
be necessary to make such sale of the Collateral or any part thereof valid and
binding and in compliance with applicable law.

     Pledgor acknowledges that there is no adequate remedy at law for failure by
it to comply with the provisions of this Section and that such failure would not
be adequately compensable in

                                        9
<PAGE>
damages, and therefore agrees that its agreements contained in this Section may
be specifically enforced.

     (e)     PLEDGOR EXPRESSLY WAIVES TO THE MAXIMUM EXTENT PERMITTED BY LAW:
(i) ANY CONSTITUTIONAL OR OTHER RIGHT TO A JUDICIAL HEARING PRIOR TO THE TIME
SECURED PARTY DISPOSES OF ALL OR ANY PART OF THE COLLATERAL AS PROVIDED IN THIS
SECTION; (ii) ALL RIGHTS OF REDEMPTION, STAY, OR APPRAISAL THAT IT NOW HAS OR
MAY AT ANY TIME IN THE FUTURE HAVE UNDER ANY RULE OF LAW OR STATUTE NOW EXISTING
OR HEREAFTER ENACTED; AND (iii) EXCEPT AS SET FORTH IN SUBSECTION (a) OF THIS
SEECTION 9, ANY REQUIREMENT OF NOTICE, DEMAND, OR ADVERTISEMENT FOR SALE.

10.     APPLICATION OF PROCEEDS.  Upon the occurrence and during the continuance
        -----------------------
of a Default, any cash held by Secured Party as Collateral and all cash Proceeds
received by Secured Party in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral pursuant to the exercise by
Secured Party of its remedies as a secured creditor as provided in Section 9
shall be applied from time to time by Secured Party as provided in the Facility
Agreement.

11.     INDEMNITY AND EXPENSES.  Pledgor agrees:
        ----------------------

     (a)     To indemnify and hold harmless Secured Party and each of its
directors, officers, employees, agents and affiliates from and against any and
all claims, damages, demands, losses, obligations, judgments and liabilities
(including, without limitation, reasonable attorneys' fees and expenses) in any
way arising out of or in connection with this Agreement or the Obligations,
except to the extent the same shall arise as a result of the negligence or
willful misconduct of the party seeking to be indemnified; and

     (b)     To pay and reimburse Secured Party upon demand for all reasonable
costs and expenses (including, without limitation, reasonable attorneys' fees
and expenses) that Secured Party may incur in connection with:  (i) the custody,
use or preservation of, or the sale of, collection from or other realization
upon, any of the Collateral, including the reasonable expenses of re-taking,
holding, preparing for sale or lease, selling or otherwise disposing of or
realizing on the Collateral; (ii) the exercise or enforcement of any rights or
remedies granted hereunder, under the Facility Agreement, or under any of the
other Transaction Documents or otherwise available to it (whether at law, in
equity or otherwise); or (iii) the failure by Pledgor to perform or observe any
of the provisions hereof.  The provisions of this Section shall survive the
execution and delivery of this Agreement, the repayment of any of the
Obligations, the termination of the commitments of Secured Party under the
Facility Agreement, and the termination of this Agreement or any other Credit
Document.

12.     DUTIES OF SECURED PARTY.  The powers conferred on Secured Party
        -----------------------
hereunder are solely to protect its interests in the Collateral and shall not
impose on it any duty to exercise such powers.  Except as provided in Section
9-207 of the Code, Secured Party shall have no duty with respect to the
Collateral or any responsibility for taking any necessary steps to preserve
rights against any Persons with respect to any Collateral.

                                       10
<PAGE>
13.     CHOICE OF LAW AND VENUE; WAIVER OF JURY TRIAL.
        ---------------------------------------------

     (a)     THE VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION,
AND ENFORCEMENT, AND THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER,
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO
(WITHOUT REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF).  The parties agree
that any action or claim arising out of, or any dispute in connection with, this
Agreement, any rights, remedies, obligations, or duties hereunder, or the
performance or enforcement hereof or thereof, may be brought in the courts of
the State of Colorado or any federal court sitting therein and consents to the
non-exclusive jurisdiction of such court and to service of process in any such
suit being made upon the Debtor by mail at the address specified for notices in
the Facility Agreement.  The Debtor hereby waives any objection that it may now
or hereafter have to the venue of any such suit or any such court or that such
suit is brought in an inconvenient court.

     (b)     Pledgor and Secured Party hereby waive their respective rights to a
jury trial of any claim or cause of action based upon or arising out of this
Agreement or any of the transactions contemplated herein, including contract
claims, tort claims, breach of duty claims, and all other common law or
statutory claims.  Pledgor and Secured Party represent that each has reviewed
this waiver and each knowingly and voluntarily waives its jury trial rights
following consultation with legal counsel.  In the event of litigation, a copy
of this Agreement may be filed as a written consent to a trial by the court.

14.     AMENDMENTS; ETC.  No amendment or waiver of any provision of this
        ---------------
Agreement nor consent to any departure by Pledgor herefrom shall in any event be
effective unless the same shall be in writing and signed by Secured Party, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given. No failure on the part of Secured
Party to exercise, and no delay in exercising any right under this Agreement,
any other Credit Document, or otherwise with respect to any of the Obligations,
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right under this Agreement, any other Credit Document, or otherwise with
respect to any of the Obligations preclude any other or further exercise thereof
or the exercise of any other right.  The remedies provided for in this Agreement
or otherwise with respect to any of the Obligations are cumulative and not
exclusive of any remedies provided by law.

15.     NOTICES.  Except as otherwise expressly provided herein, any notice,
        -------
order, instruction, request or other communication required or permitted to be
given under this Agreement shall be in writing and deemed to have been properly
given when delivered in person, or when sent by facsimile transmission or other
electronic means, or upon receipt of notice sent by overnight mail or certified
or registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.  Any party may change its
address for notices in the manner set forth above.

                                       11
<PAGE>
                                         WESTERN MESQUITE MINES, INC.
                                         7000 Independence Parkway
                                         Suite 160, #135
                                         Plano, Texas 75025
                                         Attn:  Toby Mancuso
                                         Fax:  972-208-2155
                                         E-Mail:  tmancuso@gte.net

RMB International (Dublin) Limited       RMB Resources Limited, agent
28 Shelbourne Road                       Level 3
Ballsbridge                              One Mitre Square
Dubin 4 Ireland                          London EC3A 5AN
Attn:  Michael Schonfeld                 United Kingdom
Fax:  44-207-626-9041                    Attn:  Michael Schonfeld
E-mail:  Michael.Schonfeld@rmbi.co.uk    Fax:  44-207-626-9041
                                         E-mail:  Michael.Schonfeld@rmbi.co.uk

16.     CONTINUING SECURITY INTEREST.  This Agreement shall create a continuing
        ----------------------------
security interest in the Collateral and shall:  (a) remain in full force and
effect until the indefeasible payment in full of the Obligations, including the
cash collateralization, expiration, or cancellation of all Obligations, if any,
consisting of letters of credit, and the full and final termination of any
commitment to extend any financial accommodations under the Facility Agreement;
(b) be binding upon Pledgor and its successors and assigns; and (c) inure to the
benefit of Secured Party and its successors, transferees, and assigns.  Upon the
indefeasible payment in full of the Obligations, including the cash
collateralization, expiration, or cancellation of all Obligations, if any,
consisting of letters of credit, and the full and final termination of any
commitment to extend any financial accommodations under the Facility Agreement,
the security interests granted herein shall automatically terminate and all
rights to the Collateral shall revert to Pledgor.  Upon any such termination,
Secured Party will, at Pledgor's expense, execute and deliver to Pledgor such
documents as Pledgor shall reasonably request to evidence such termination.
Such documents shall be prepared by Pledgor and shall be in form and substance
reasonably satisfactory to Secured Party.

17.     SECURITY INTEREST ABSOLUTE.  To the maximum extent permitted by law, all
        --------------------------
rights of Secured Party, all security interests hereunder, and all obligations
of Pledgor hereunder, shall be absolute and unconditional irrespective of:

     (a)     any lack of validity or enforceability of any of the Obligations or
any other agreement or instrument relating thereto, including any of the
Transaction Documents;

     (b)     any change in the time, manner, or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to any departure from any of the Transaction Documents, or any
other agreement or instrument relating thereto;

     (c)     any exchange, release, or non-perfection of any other collateral,
or any release or amendment or waiver of or consent to departure from any
guaranty for all or any of the Obligations; or

                                       12
<PAGE>
     (d)     any other circumstances that might otherwise constitute a defense
available to, or a discharge of, Pledgor.

18.     HEADINGS.  Section and subsection headings in this Agreement are
        --------
included herein for convenience of reference only and shall not constitute a
part of this Agreement or be given any substantive effect.

19.     SEVERABILITY.     In case any provision in or obligation under this
        ------------
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

20.     COUNTERPARTS.  This Agreement may be executed in one or more
        ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same Agreement.

21.     WAIVER OF MARSHALING.  Each of Pledgor and Secured Party acknowledges
        --------------------
and agrees that in exercising any rights under or with respect to the
Collateral:  (a) Secured Party is under no obligation to marshal any Collateral;
(b) may, in its absolute discretion, realize upon the Collateral in any order
and in any manner it so elects; and (c) may, in its absolute discretion, apply
the proceeds of any or all of the Collateral to the Obligations in any order and
in any manner it so elects.  Pledgor and Secured Party waive any right to
require the marshaling of any of the Collateral.

     IN WITNESS WHEREOF, Pledgor and Secured Party have caused this Agreement to
be duly executed and delivered by their officers thereunto duly authorized as of
the date first written above.

WESTERN GOLDFIELDS, INC.

By:  /s/ John P. Ryan
   -------------------------------
Title:  Secretary
      ----------------------------
Printed Name: John P. Ryan
             ---------------------

                                       13
<PAGE>
ACCEPTED:
RMB INTERNATIONAL (DUBLIN)
LIMITED

By: /s/ D. Coetzee                          By: /s/ S. Duplessis
   -------------------------------             -----------------
Title:  Authorized Signatory                Title: Authorized Signatory
      ----------------------                      ---------------------
Printed Name: D. Coetzee                    Printed Name: S. Duplessis
             ---------------------                       -------------

RMB RESOURCES LIMITED, AGENT

By: /s/ Robert Gray
   ----------------
Title:  Director
      ----------
Printed Name: Robert Gray
             ------------

                                       14
<PAGE>
<TABLE>
<CAPTION>
                                               SCHEDULE 1

                                            PLEDGED INTERESTS

                                                        Number of      Certificate     Percentage of
Name of           Jurisdiction of                     Shares/Units      Number(s)       Outstanding
Issuer             Organization    Type of Interest  (if applicable)    (if any)    Interests in Issuer
--------------------------------------------------------------------------------------------------------
<S>               <C>              <C>               <C>              <C>           <C>

Western Mesquite  Nevada           Common                  1,000,000             2                  100%
Mines, Inc.                        Stock

Calumet Mining    Idaho            Common                  6,990,000            36                  100%
Company                            Stock
</TABLE>

                                       15
<PAGE>

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