Document:

All American Gold Corp.: Exhibit 10.01 - Filed by newsfilecorp.com

MINING OPTION AGREEMENT 
(IOWA
CANYON PROPERTY) 

THIS AGREEMENT made as of September 9, 2011; 

BETWEEN: 

  
    
      TAC GOLD CORPORATION, a British Columbia company,
        with offices at 203 – 2780 Granville Street, Vancouver, BC, Canada
        V6H 3J3 (Facsimile: 604-730-0967); 

      (the “Optionor”) 

    

  

AND: 

  
    
      ALL AMERICAN GOLD CORP., a Wyoming corporation,
        of Suite 203, 700 North High School Road, Indianapolis, Indiana, USA 46214
        (Facsimile: <>); 

      (the “Optionee”) 

    

  

BACKGROUND 

	A. 	
      The Optionor entered into a Mineral Property Option
      Agreement made as of the 6th day of April, 2010 pursuant to
      which Minquest Inc. granted the Optionor an option to acquire a 100%
      interest in the Property (as hereinafter defined) known as the Iowa Canyon
      Property, which Mineral Property Option Agreement was amended pursuant to
      an Amendment to Mineral Property Option Agreement made effective as of
      April 6, 2011 (the Mineral Property Option Agreement as amended by the
      Amendment to Mineral Property Option Agreement is called the “Minquest
      Option Agreement”).

	 	 
	B. 	
      The Optionor and the Optionee have agreed that the
      Optionor will grant the Optionee an option to acquire a 15% undivided
      interest in the Property subject to the Optionor first acquiring a 100%
      interest in the Property, and an additional option to acquire a further
      25% interest in the Property, all on the terms and conditions hereinafter
      set forth.

In consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration (the receipt and
sufficiency of which is hereby acknowledged by each of the parties) the parties
hereto covenant and agree each with the others as follows: 

	1. 	
      Interpretation

	 	 	 
	1.1 	
      Definitions. In this Agreement:

	 	 	 
		(a) 	
      “Acts” means all legislation, as amended from time
      to time, of the jurisdiction in which the Property is located, applicable
      to the Property, including title to, and Mining Operations on, the
      Property.

	 	 	 
		(b) 	
      “Affiliate” has the meaning set out in the British
      Columbia Business Corporations Act, as amended from time to
      time.

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	 	(c) 	
      “Agreement” means this agreement, including the
      recitals and the Schedules, all as amended, supplemented or restated from
      time to time.

	 	 	 
	 	(d) 	
      “Arbitrator” has the meaning set out in Section
      10.4(a) of this Agreement.

	 	 	 
	 	(e) 	
      “Business Day” means a day other than a Saturday,
      Sunday or statutory holiday in British Columbia.

	 	 	 
	 	(f) 	
      “Claimant” has the meaning set out in section
      10.4(a) of this Agreement.

	 	 	 
	 	(g) 	
      “Communication” has the meaning set out in Section
      8.1 of this Agreement.

	 	 	 
	 	(h) 	
      “Effective Date” means September 9,
2011.

	 	 	 
	 	(i) 	
      “Encumbrances” means security interests, liens,
      royalties, charges, mortgages, pledges, encumbrances, adverse claims or
      challenges of any nature or kind whatsoever, whether written or oral, or
      direct or indirect.

	 	 	 
	 	(j) 	
      “Exploration Expenditures” has the meaning given
      in the Minquest Option Agreement.

	 	 	 
	 	(k) 	
      “Government or Regulatory Authority” means any
      federal, provincial, regional, municipal or other government, governmental
      department, regulatory authority, commission, board, bureau, agency or
      instrumentality and that have lawful authority to regulate or administer
      or govern an business or property or affairs of any person, and for the
      purposes of this Agreement also includes any corporation or other entity
      owned or controlled by any of the foregoing and any stock exchange on
      which shares of a party are listed for trading.

	 	 	 
	 	(l) 	
      “Joint Venture” has the meaning set out in Section
      5.2.

	 	 	 
	 	(m) 	
      “Joint Venture Agreement” has the meaning set out
      in Section 5.2.

	 	 	 
	 	(n) 	
      “Minerals” means the end products produced or
      derived from operating the Property as a mine.

	 	 	 
	 	(o) 	
      “Mining Operations” means every kind of work done
      on or in respect of the Property or the minerals, derived from the
      Property during the Option Period by or under the direction of the
      Optionor including, without limiting the generality of the foregoing, the
      work of assessment, geophysical, geochemical and geological surveys,
      studies and mapping, investigating, drilling, designing, examining,
      assaying, prospecting, equipping, improving, surveying, shaft-sinking,
      raising, cross-cutting and drifting, searching for, digging, trucking,
      sampling, working and procuring minerals, ores and metals, surveying and
      bringing any mining claims to lease or patent, reclaiming and all other
      work usually considered to be prospecting, exploration, development,
      mining and reclamation work; in paying wages and salaries of workers
      engaged in the work and in supplying food, lodging, transportation and
      other reasonable needs of the workers; in paying assessments or premiums
      for workers' compensation insurance, contributions
for

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      unemployment insurance or other pay allowances or benefits customarily paid in the district to those workers; in paying rentals, licence renewal fees, taxes and other governmental charges required to keep the Property in good standing; in purchasing or renting plant, buildings, machinery, tools, appliances, equipment or supplies and in installing, erecting, detaching and removing them; mining, milling, concentrating rehabilitation, reclamation, and environmental protections and in the management of any work which may be done on the Property or in any other respect necessary for the due carrying out of the prospecting, exploration and development work.

    

	 	 	 
	 	(p) 	“Minquest Option Agreement” has the meaning given in background paragraph A.

	 	 	 
	 	(q) 	“Minquest NSR Royalty” means the 3% royalty on net smelter returns on production from the Property in favour of Minquest Inc. provided for in the Minquest Option Agreement.

	 	 	 
	 	(r) 	“Notice of Arbitration” has the meaning set out in Section 10.4(a) of this Agreement.

	 	 	 
	 	(s) 	“Offer” has the meaning set out in Section 10.2 of this Agreement.

	 	 	 
	 	(t) 	“Option” has the meaning set out in Section 3.1 of this Agreement.

	 	 	 
	 	(u) 	“Option Period” means the period commencing on the Effective Date and ending on April 6, 2018 unless terminated earlier by the exercise of the Option by the Optionee or the lapse or termination of the Option.

	 	 	 
	 	(v) 	“Payment Shares” means the common shares in the capital of the Optionor issued by the Optionor to Minquest Inc. under the Minquest Option Agreement.
	 	 	 
	 	(w) 	“Permitted Encumbrance” means

	 	 	 
	 	 	(i)		easements, rights of way, servitudes or other similar rights in land including, without limiting the generality of the foregoing, rights of way and servitudes for railways, sewers, drains, gas and oil pipelines, gas and water mains, electrical light, power, telephone, telegraph or cable television conduits, poles, wires and cables;

	 	 	 	 
	 	 	(ii)	the right reserved to or vested in any government or other public authority by the terms of any or by any statutory provision, to terminate, revoke or forfeit any of the lease or mining claims or to require annual or other periodic payments as a condition of the continuance thereof;

	 	 	 	 
	 	 	(iii)		rights reserved to or vested in any municipality or governmental, statutory or public authority to control or regulate in any manner, and all applicable laws, rules and orders of any governmental authority; and

	 	 	 	 
	 	 	(iv)		the reservations, limitations, provisos and conditions in any original grants from the Crown or interests therein and statutory exceptions to title.

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	 	(x) 	
      “Property” means the mineral interests described
      in Schedule A as they may be augmented or reduced under the Minquest
      Option Agreement and all mining leases and other mining interests derived
      therefrom, and a reference to a mineral claim comprised in the Property
      includes any mineral leases or other interests into which such mineral
      claim may have been converted and Property includes all Property
      Rights.

	 	 	 
	 	(y) 	
      “Property Rights” means all licenses, permits,
      easements, rights-of-way, surface or water rights and other rights,
      approvals obtained by either of the parties either before or after the
      date of this Agreement and necessary or desirable for the development of
      the Property, or for the purpose of placing the Property into production
      or continuing production therefrom.

	 	 	 
	 	(z) 	
      “Proposed Purchaser” has the meaning set out in
      Section 10.2(a) of this Agreement.

	 	 	 
	 	(aa) 	
      “Respondent” has the meaning set out in Section
      10.4(a) of this Agreement.

	 	 	 
	 	(bb) 	
      “US Dollar Equivalent” means the US dollar
      equivalent of Canadian dollars calculated in accordance with the exchange
      rate set by the Bank of Canada at the relevant time.

	 	 	 
	 	(cc) 	
      “Weighted Average Trading Price” means the volume
      weighted average trading price of the Optionor’s common shares on the
      CNSX, or another exchange where the majority of the trading volume and
      value of the Optionor’s common shares occur, calculated by dividing the
      total value by the total volume of the Optionor’s common shares traded
      during the period of 30 consecutive trading days (being days on which the
      CNSX or such other exchange is open for trading) ending immediately before
      the relevant day.

	1.2 	
      Headings. The division of this Agreement into
      Sections and the insertion of headings are for convenience of reference
      only and shall not affect the construction or interpretation of this
      Agreement. The terms “this Agreement”, “hereof”, “hereunder” and similar
      expressions refer to this Agreement and not to any particular Article,
      Section or other portion hereof and includes any variation or amendment
      hereto from time to time and any agreement supplemental hereto. Unless
      something in the subject matter or context is inconsistent therewith,
      references herein to Articles and Sections are to Articles and Sections of
      this Agreement.

	 	 
	1.3 	
      Legislation. Any reference to a provision in any
      legislation is a reference to that provision as now enacted, and as
      amended, re-enacted or replaced from time to time, and in the event of
      such amendment, re-enactment or replacement any reference to that
      provision shall be read as referring to such amended, re-enacted or
      replaced provision.

	 	 
	1.4 	
      Extended Meanings. In this Agreement words
      importing the singular number only shall include the plural and vice
      versa, words importing the masculine gender shall include the feminine
      and neuter genders and vice versa and words importing persons shall
      include individuals, partnerships, associations, trusts, unincorporated
      organizations and corporations. All references to mineral claims shall
      include map designated units.

- 5 - 

	1.5 	
      Currency. All references to currency herein are to
      lawful money of the United States of America, unless otherwise
      specified.

	 	 	 
	1.6 	
      Non-Merger. The provisions contained in this
      Agreement shall survive the Effective Date and the completion of the
      transactions contemplated by this Agreement and shall not merge in any
      conveyance, transfer, assignment, novation agreement or other document or
      instrument delivered pursuant hereto or in connection herewith.

	 	 	 
	1.7 	
      Construction Clause. This Agreement has been
      negotiated and approved by counsel on behalf of all parties hereto and,
      notwithstanding any rule or maxim of construction to the contrary, any
      ambiguity or uncertainty will not be construed against any party hereto by
      reason of the authorship of any of the provisions hereof.

	 	 	 
	1.8 	
      No partnership. Nothing contained in this
      Agreement shall be construed as creating a partnership of any kind or as
      imposing on any party any partnership duty, obligation or liability to any
      other party.

	 	 	 
	2. 	
      Representations, Warranties and
Covenants

	 	 	 
	2.1 	
      Representations, Warranties and Covenants of the
      Optionor. The Optionor represents, warrants and covenants to the
      Optionee that:

	 	 	 
		(a) 	
      it is resident at the address set forth beside its name
      on the first page of this Agreement;

	 	 	 
		(b) 	
      the Optionor is a corporation duly incorporated under the
      laws of the Province of British Columbia with the corporate power to own
      its assets and to carry on its business;

	 	 	 
		(c) 	
      the Optionor has good and sufficient authority to enter
      into and deliver this Agreement;

	 	 	 
		(d) 	
      there is no contract, option or any other right of
      another binding upon the Optionor to option, sell, transfer, assign,
      pledge, charge, mortgage, explore or in any other way option, dispose of
      or encumber all or part of the Property or any portion thereof or interest
      therein other than pursuant to the provisions of this Agreement and the
      Minquest Option Agreement;

	 	 	 
		(e) 	
      the execution, delivery and performance of this Agreement
      by the Optionor, and the consummation of the transactions herein
      contemplated will not (i) violate or conflict with any term or provision
      of any of the articles, by-laws or other constating documents of the
      Optionor; (ii) violate or conflict with any term or provision of any order
      of any court, Government or Regulatory Authority or any law or regulation
      of any jurisdiction in which the Optionor’s business is carried on; or
      (iii) conflict with, accelerate the performance required by or result in
      the breach of any agreement to which it is a party or by which it is
      currently bound;

- 6 - 

	 	(f) 	
      the Optionor has the right to acquire a 100% interest in
      and to the Property pursuant to the Minquest Option Agreement, free and
      clear of all charges and encumbrances other than the Minquest NSR
      Royalty;

	 	 	 	 
	 	(g) 	
      the Property is properly and accurately described in
      Schedule A and is in good standing under the laws of the jurisdiction in
      which the Property is located;

	 	 	 	 
	 	(h) 	
      this Agreement has been duly authorized, executed and
      delivered by the Optionor and constitutes a valid and binding obligation
      of the Optionor enforceable against the Optionor in accordance with its
      terms, except as enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the rights of
      creditors generally and except as limited by the application of equitable
      principles when equitable remedies are sought; and

	 	 	 	 
	 	(i) 	
      the Optionor shall, during the Option Period:

	 	 	 	 
	 		(i) 	
      promptly provide the Optionee with any and all notices
      and correspondence from Government or Regulatory Authorities in respect of
      the Property;

	 	 	 	 
	 		(ii) 	
      use its reasonable efforts to fulfill its obligations
      under the Minquest Option Agreement in all material respects;
and

	 	 	 	 
	 		(iii) 	
      maintain its corporate
existence.

	2.2 	
      Representations, Warranties and Covenants of the
      Optionee. The Optionee represents, warrants and covenants to the
      Optionor that:

	 	 	 
		(a) 	
      the Optionee is a corporation duly incorporated,
      organized and subsisting under the laws of Wyoming with the corporate
      power to own its assets and to carry on its business in the jurisdiction
      in which the Property is located;

	 	 	 
		(b) 	
      the Optionee has all necessary power and authority to own
      or lease its assets and carry on its business as presently carried on, to
      carry out its obligations herein and to enter into this Agreement and any
      agreement or instrument referred to in or contemplated by this Agreement
      and to do all such acts and things as are required to be done, observed or
      performed by it, in accordance with the terms of this Agreement and any
      agreement or instrument referred to in or contemplated by this
      Agreement;

	 	 	 
		(c) 	
      the execution, delivery and performance of this Agreement
      by the Optionee, and the consummation of the transactions herein
      contemplated will not (i) violate or conflict with any term or provision
      of any of the articles, by-laws or other constating documents of the
      Optionee; (ii) violate or conflict with any term or provision of any order
      of any court, Government or Regulatory Authority or any law or regulation
      of any jurisdiction in which the Optionee’s business is carried on; or
      (iii) conflict with, accelerate the performance required by or result in
      the breach of any agreement to which it is a party or by which it is
      currently bound;

- 7 - 

	 	(d) 	
      this Agreement has been duly authorized, executed and
      delivered by the Optionee and constitutes a valid and binding obligation
      of the Optionee enforceable against the Optionee in accordance with its
      terms, except as enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the rights of
      creditors generally and except as limited by the application of equitable
      principles when equitable remedies are sought;

	 	 	 	 
	 	(e) 	
      the Optionee acknowledges that:

	 	 	 	 
	 		(i) 	
      it has received a copy of the Minquest Option Agreement
      and acknowledges that its interest in this Agreement is subject to the
      terms of the Minquest Option Agreement including, without limitation, the
      provisions contained in it regarding the Minquest NSR Royalty;

	 	 	 	 
	 		(ii) 	
      the Optionor shall have full and complete discretion as
      to how it proceeds under the Minquest Option Agreement including without
      limitation, what Exploration Expenditures it incurs, what payments it
      makes to Minquest Inc. in order to maintain the option granted to it under
      the Minquest Option Agreement and whether or not to exercise such option;
      and

	 	 	 	 
	 		(iii) 	
      the payments made by the Optionee to the Optionor under
      this Agreement are not refundable or returnable in the event the Optionor
      subsequently determines not to acquire the Property and, accordingly, not
      to exercise the option granted to it under the Minquest Option
      Agreement;

	 	 	 	 
	 	(f) 	
      the Optionee shall, during the Option Period:

	 	 	 	 
	 		(i) 	
      promptly provide the Optionor with any and all notices
      and correspondence from Government or Regulatory Authorities in respect of
      the Property;

	 	 	 	 
	 		(ii) 	
      not do or permit or suffer to be done any act or thing
      which would or might in any way adversely affect the rights of the
      Optionor hereunder or under the Minquest Option Agreement; and

	 	 	 	 
	 		(iii) 	
      maintain its corporate
existence.

	2.3 	
      Reliance and Survival. The representations,
      warranties and acknowledgements set out in this Section 2 have been relied
      on by the parties in entering into this Agreement. All representations and
      warranties made herein will survive the delivery of this Agreement to the
      parties and the completion of the transactions contemplated hereby and,
      notwithstanding such completion, will continue in full force and effect
      for the benefit of the parties to whom they are provided, as the case may
      be, indefinitely.

	 	 
	3. 	
      Grant of Option

	 	 
	3.1 	
      Grant of Option. Effective on the date on which
      the Optionor acquires a 100% interest in the Property pursuant to the
      Minquest Option Agreement, the Optionor grants to
the

- 8 - 

		
      Optionee the exclusive option (the “Option”) to
      acquire an undivided 15% interest in the Property. This right may be
      exercised in the manner referred to in Section 4.1.

	 	 	 
	3.2 	
      Consideration. In consideration of the grant of
      the Option, the Optionee shall pay the Optionor the sum of $50,000
      concurrently with the execution and delivery of this Agreement by the
      Optionee and $50,000 within 60 days of the execution and delivery of this
      Agreement by the Optionee.

	 	 	 
	3.3 	
      Access to the Property, Reports. During the Option
      Period, the Optionor shall have all of the rights to enter on and conduct
      Mining Operations on the Property granted to it pursuant to the Minquest
      Option Agreement, shall be entitled to exercise such rights as it may
      determine in its sole discretion and shall comply with all of its
      obligations with respect to the Property pursuant to the Minquest Option
      Agreement. The Optionor shall, during the Option Period, submit to the
      Optionee periodic progress reports of the Mining Operations completed by
      the Optionor on the Property, which reports shall be submitted not less
      than on an annual basis, and shall provide the Optionee with access to all
      records, data and information relating to the Property which is in the
      possession of the Optionor. If permitted under the Minquest Option
      Agreement, the Optionee may, at its own risk and expense and at reasonable
      times agreed to by the Optionor, enter on the Property and examine the
      Mining Operations carried out by the Optionor; provided, that the Optionee
      will not, in the opinion of the Optionor, interfere with it.

	 	 	 
	3.4 	
      Maintenance of Option. In order to maintain in
      force the Option granted to it, and to exercise the Option, the Optionee
      must pay to the Optionor:

	 	 	 
		(a) 	
      15% of the payments made by the Optionor to Minquest Inc.
      pursuant to subsections 4.2(a), (b) and (c) of the Minquest Option
      Agreement;

	 	 	 
		(b) 	
      the US Dollar Equivalent of 15% of the Weighted Average
      Trading Price multiplied by the number of Payment Shares issued from time
      to time by the Optionor to Minquest Inc. pursuant to section 4.2(d) of the
      Minquest Option Agreement (“the “Share Consideration”), as at the end of
      the day on which such Payment Shares are issued; and

	 	 	 
		(c) 	
      15% of the Exploration Expenditures incurred by the
      Optionor pursuant to section 4.2(e) of the Minquest Option
    Agreement.

	 	 	 
			
      As the Optionor makes payments to Minquest Inc., issues
      Payment Shares to Minquest Inc. and incurs Exploration Expenditures
      pursuant to the Minquest Option Agreement, it shall provide the Optionee
      with statements setting out the amounts paid, Payment Shares issued or
      Exploration Expenditures incurred and the calculations of the amounts
      payable by the Optionee with respect thereto and in order to maintain in
      force the Option and to exercise the Option, the Optionee shall pay to the
      Optionor within 30 days of the Optionee’s receipt of each such statement
      the amount payable in accordance with such statement.

	 	 	 
	3.5 	
      Lapse of Option. The Optionee may let the Option
      lapse by failing to make any of the payments required pursuant to Section
      3.4. Any termination under this Section shall occur automatically, without
      any further action by the Optionor.

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	4. 	
      Formation of Joint Venture

	 	 
	4.1 	
      Option Exercise. If the Optionor exercises the
      option granted to it pursuant to the Minquest Option Agreement and
      acquires a 100% interest in the Property it shall forthwith notify the
      Optionee in writing that it has done so, and if the Optionee has made all
      of the payments to be made by it pursuant to Section 3.2 and Section 3.4,
      all within the prescribed periods, then the Optionee has the right, by
      giving written notice to the Optionor within 30 days of receipt of the
      notice from the Optionor, to become the owner of a 15% undivided interest
      in all or that part(s) of the Property as the Optionee may
elect.

	 	 
	4.2 	
      Joint Venture. If the Optionee exercises its right
      under Section 4.1, and becomes the owner of a 15% undivided interest in
      the Property, the Optionee and Optionor shall be deemed conclusively
      without executing any further agreement, to have formed a joint venture
      (the “Joint Venture”) for the purposes of further exploring the
      Property and, if deemed warranted, of developing, constructing and
      operating a mine on the Property or a part of it and marketing the
      Minerals derived therefrom all according to the terms and conditions
      contained in the form of joint venture agreement (the “Joint Venture
      Agreement”) attached hereto as Schedule B. The Joint Venture Agreement
      shall govern the subsequent relationship of the Optionee and Optionor in
      all subsequent mining operations on the Property. The parties shall
      execute and deliver to each other, promptly upon the Optionee exercising
      its Option under section 4.1, the Joint Venture Agreement.

	 	 
	4.3 	
      Initial interests and expenditures. On the date of
      formation of the Joint Venture the parties shall, for purposes of the
      Joint Venture Agreement, be deemed to have the following initial interest
      and to have incurred, as prior exploration costs, moneys under this Option
      Agreement in the amounts as follows:

	 	  	Undivided Interest 	Deemed Expenditures 
	 	 	 	 
	 	Optionee 	15% 	$ 330,000 
	 	 	 	 
	 	Optionor 	85% 	$ 1,870,000

	4.4 	
      Title to Property. The title to the Property shall
      be recorded on the formation of the Joint Venture in each of the names of
      the Optionor and Optionee as to their respective undivided
    interests.

	 	 
	4.5 	
      Additional Option. As provided in the Joint
      Venture Agreement, if the Optionee exercises the Option and acquires a 15%
      interest in the Property, it shall have an additional option to acquire an
      additional 25% interest in the Property (for a total 40% in the Property)
      by paying to the Optionor, no later than 60 days prior to the first
      anniversary of the formation of the Joint Venture, an additional
      $3,000,000. If the Optionee does not exercise this additional option and
      acquire an additional 25% interest in the Property, the Optionor may buy
      back the Optionee’s 15% interest in the Property by paying to the
      Optionee, on or before the first anniversary of the formation of the Joint
      Venture, the Exploration Expenditures and the Share Consideration incurred
      by the Optionee with respect to the Property pursuant to this Agreement
      and the Joint Venture Agreement plus 10%.

- 10 - 

	5. 	
      Termination

	 	 
	5.1 	
      Termination. The Option and this Agreement shall
      terminate in accordance with Section 3.5 if the Optionee fails to make a
      payment in accordance with Section 3.4 or if the Optionee does not
      exercise the Option in accordance with Section 4.1 within the prescribed
      period. In addition, the Optionor may terminate the Option and this
      Agreement effective upon giving notice of such termination if the Optionee
      is in default in any material respect of any term or condition of this
      Agreement (other than a payment pursuant to Section 3.4) and fails to cure
      such default within 30 days of receiving notice from the Optionor
      specifying the particulars of such default or if the Minquest Option
      Agreement is terminated without the option granted to the Optionor
      thereunder being exercised by the Optionor.

	 	 
	5.2 	
      Survival of provisions. The Optionee and Optionor
      shall remain liable to one another for all matters, claims, demands and
      causes of action that relate in any way to the provisions of this
      Agreement, and in particular, without limiting the generality of the
      foregoing, the provisions of Section 6 of this Agreement shall survive any
      termination of this Agreement.

	 	 
	6. 	
      Indemnification

	 	 
	6.1 	
      Indemnity. Each party hereto shall indemnify and
      save harmless the other, as well as its officers, directors and
      shareholders, from and against any and all claims, losses, liabilities,
      damages, fees, fines, penalties, interests, deficiencies, costs and
      expenses, of any nature or kind whatsoever, arising by virtue or in
      respect of any breach of covenant contained herein or failure to comply
      with any provision herein, or any inaccuracy, misstatement,
      misrepresentation or omission made by such party in connection with any
      matter set out herein, and any and all actions, suits, proceedings,
      demands, claims, costs, legal and other expenses related or incidental
      thereto.

	 	 
	6.2 	
      Survival. Notwithstanding any other provision of
      this Agreement and any termination of this Agreement, the indemnities
      provided herein shall remain in full force and effect until all possible
      liabilities of the persons indemnified thereby are extinguished by the
      operation of law and will not be limited to or affected by any other
      indemnity obtained by such indemnified persons from any other
    person.

	 	 
	6.3 	
      Investigation. No investigation made by or on
      behalf of either of the parties hereto at any time shall have the effect
      of waiving, diminishing the scope of or otherwise affecting any
      representation, warranty or covenant made by the other party herein or
      pursuant hereto. No waiver by either of the parties hereto of any
      condition herein, in whole or in part, shall operate as a waiver of any
      other condition herein.

	 	 
	7. 	
      Force majeure

	 	 
	7.1 	
      Force majeure. Notwithstanding anything contained
      in this Agreement to the contrary, if any party is prevented from or
      delayed in performing any obligation under this Agreement and failure is
      occasioned by any cause beyond its reasonable control, excluding only lack
      of finances then, subject to Section 7.2, the time for the observance of
      the condition or performance of the obligation in question shall be
      extended for a

- 11 - 

		
      period equivalent to the total period the cause of the
      prevention or delay persists or remains in effect regardless of the length
      of the total period.

	 	 
	7.2 	
      Notice. Any party claiming suspension of its
      obligations shall promptly notify the other party to that effect and shall
      take all reasonable steps to remove or remedy the cause and effect of the
      force majeure described in the notice in so far as it is reasonably
      able so to do and as soon as possible; provided, that the terms of
      settlement of any labour disturbance or dispute, strike or lock-out shall
      be wholly in the discretion of the party claiming suspension of its
      obligations by reason thereof; and that party shall not be required to
      accede to the demands of its opponents in any labour disturbance or
      dispute, strike or lock-out solely to remedy or remove the force
      majeure thereby constituted.

	 	 
	8. 	
      Notices & Payments

	 	 
	8.1 	
      Notice. Any demand, notice or other communication
      (a “Communication”) to be made or given in connection with this
      Agreement shall be made or given in writing and may be made or given by
      personal delivery or facsimile addressed to the recipient at the addresses
      or facsimile numbers of the parties provided on the first page of this
      Agreement or such other address or individual as may be designated by
      notice by any party to the other. Any Communication made or given by
      personal delivery shall be conclusively deemed to have been given on the
      day of actual delivery thereof, and if made or given by facsimile, on the
      day, other than a day which is not a Business Day, following the day it
      was sent.

	 	 
	8.2 	
      Payments. Payments hereunder shall be made
      addressed to the recipient at the addresses of the recipient parties
      provided on the first page of this Agreement or such other address or
      individual as may be designated by notice by the recipient party in
      accordance with Section 8.1. If any payment herein becomes due on a day
      that is not a Business Day, such payment shall be made on the next
      succeeding Business Day.

	 	 
	9. 	
      Public Announcements

	 	 
	9.1 	
      Public Announcements. The Optionee shall not,
      without the prior consent of the Optionor, make any disclosure regarding
      the existence, purpose, scope, content, terms or conditions of this
      Agreement or other agreements relating thereto save to the extent such
      disclosure comprises information substantially already publicly available
      or unless it is necessary for any party to make such disclosure in order
      to comply with a statutory obligation or the requirements of a competent
      government or statutory agency; provided that, where practicable, a copy
      of any proposed announcement or statement shall be furnished to the
      Optionor in advance of the proposed date of publication, and the Optionee
      shall make every reasonable effort to incorporate the Optionor’s comments
      prior to dissemination.

	 	 
	10. 	
      General Provisions

	 	 
	10.1 	
      Entire Agreement. This Agreement, including all
      the Schedules hereto, constitutes the entire agreement among the parties
      party pertaining to the subject matter hereof and supersedes any and all
      prior agreements, understandings, negotiations and discussions, whether
      oral or written, of the parties and there are no warranties,
      representations or

- 12 - 

		
      other agreements among the parties in connection with the
      subject matter hereof except as specifically set forth herein and therein.
      Each party acknowledges that this Agreement is entered into after full
      investigation and that no party is relying on any statement or
      representation made by any other which is not embodied in this agreement.
      Each party acknowledges that it shall have no right to rely on any
      amendment, promise, modification, statement or representation made or
      occurring subsequent to the execution of this Agreement unless it is in
      writing and executed by each of the parties.

	 	 	 
	10.2 	
      Assignment of interest. During the Option Period
      and prior to the formation of the Joint Venture, if the
Optionee:

	 	 	 
		(a) 	
      receives a bona fide offer from a third party (the
      “Proposed Purchaser”) dealing at arm's length with the Optionee to
      purchase all or any part all of the Optionee’s interest in this Agreement;
      or

	 	 	 
		(b) 	
      intends to sell all or any part of its interest in this
      Agreement other than to an Affiliate,

the Optionee shall first offer (the
“Offer”) such interest in writing to the Optionor upon terms no less
favourable than those offered by the Proposed Purchaser or intended to be
offered by the Optionee, as the case may be. The Offer shall specify the price
and terms and conditions of such sale, the name of the Proposed Purchaser (which
term shall, in the case of an intended offer by the Optionee, mean the person or
persons to whom the Optionee intends to offer its interest) and, if the offer
received by the Optionee from the Proposed Purchaser provides for any
consideration payable to the Optionee otherwise than in cash, the Offer shall
include the Optionee's good faith estimate of the cash equivalent of the
non-cash consideration. If within a period of 60 days of the receipt of the
Offer, the Optionor notifies the Optionee in writing that it will accept the
same, the Optionee shall be bound to sell such interest to the Optionor (subject
as hereinafter provided with respect to price) on the terms and conditions of
the Offer. If the Offer so accepted by the Optionor contains the Optionee's good
faith estimate of the cash equivalent consideration as aforesaid, and if the
Optionor disagrees with the Optionee's best estimate, the Optionor shall so
notify the Optionee at the time of acceptance and the Optionor shall, in such
notice, specify what it considers, in good faith, the fair cash equivalent to be
and the resulting total purchase price. If the Optionor so notifies the
Optionee, the acceptance by the Optionor shall be effective and binding upon the
Optionee and the Optionor and the cash equivalent of any such non-cash
consideration shall be determined by binding arbitration under the laws of the
jurisdiction in which the Property is located and shall be payable by the
Optionor, subject to prepayment as hereinafter provided, within 60 days
following its determination by arbitration. The Optionor shall in such case pay
to the Optionee, against receipt of an absolute transfer of clear and
unencumbered title to the interest of the Optionee being sold, the total
purchase price which it specified in its notice to the Optionee and such amount
shall be credited to the amount determined following arbitration of the cash
equivalent of any non-cash consideration. If the Optionor fails to notify the
Optionee before the expiration of the time limited therefor that it will
purchase the interest offered, the Optionee may sell and transfer such interest
at the price and on the terms and conditions specified in the Offer for a period
of 60 days, provided that the terms of this paragraph shall again apply to 

- 13 - 

		
      such interest if the sale is not completed within the
      said 60 days. Any sale hereunder shall be conditional upon the Proposed
      Purchaser delivering a written undertaking to the Optionor, in form and
      content satisfactory to its counsel, to be bound by the terms and
      conditions of this Agreement.

	 	 
	10.3 	
      Encumbrances. During the Option Period, neither
      the Optionor or the Optionee shall grant an Encumbrance, other than a
      Permitted Encumbrance, in their respective interest in the Property or
      right under this Agreement.

	 	 
	10.4 	
      Arbitration.

	 	(a) 	
      If there is a dispute between the parties with respect to
      this Agreement, or the interpretation of this Agreement, the Optionee and
      the Optionor shall, firstly, be obligated to use best efforts to reconcile
      and settle each and every dispute. In the event that a settlement or
      agreement cannot be reached between the parties, the aggrieved party
      (“Claimant”) shall, pursuant to Section 8.1 herein, deliver a
      notice of arbitration (“Notice Of Arbitration”) to the other party
      (the “Respondent”) detailing the nature of the dispute, the facts
      and the relevant evidence. Within 7 days of the Respondent receiving the
      Notice Of Arbitration, each of the Claimant and the Respondent shall
      appoint a nominee. The two nominees so appointed shall, within 21 days of
      the date of the Notice Of Arbitration, in turn select a single arbitrator
      (the “Arbitrator”) to settle all matters arising from the dispute.
      In the event that either the Claimant or Respondent, or their selected
      nominees, fail to appoint the Arbitrator within the prescribed periods,
      the party in default of the time provisions shall automatically accept the
      arbitrator selected by the party not in default, as being the Arbitrator
      to settle all matters arising from the dispute.

	 	 	 
	 	(b) 	
      The Claimant shall deposit with the Arbitrator a full and
      complete formal statement of claim, which shall not be subject to
      amendment at any time during the arbitration process unless otherwise
      permitted by the Arbitrator, within 30 days of the date that the
      Arbitrator was selected. Neither the Claimant nor the Respondent shall
      announce publicly the alleged claims or dispute until such time as a
      formal statement of claim has been deposited with the
Arbitrator.

	 	 	 
	 	(c) 	
      Each of the Claimant and the Respondent shall jointly
      instruct the Arbitrator to create an arbitration protocol in a timely
      manner dealing with the timing and procedures (including security for
      costs) of all matters that are subject to the dispute, taking into
      consideration: (i) the fact that one or more of the Claimant and the
      Respondent are reporting issuers, as that term is described in applicable
      securities legislation, and; (ii) the seasonality of the Mining Operations
      and what correlative effects the process may have on logistics.

	 	 	 
	 	(d) 	
      The award made by the Arbitrator shall be final and
      binding upon the parties, and shall in all respects be kept and observed.
      The Arbitrator shall have the authority to award and direct that the
      parties, or either of them, execute and deliver such releases,
      conveyances, deeds, assurances and other documents as the Arbitrator
      thinks fit, and these releases, conveyances, deeds, assurances and other
      documents shall be executed and delivered
accordingly

- 14 - 

	 	(e) 	
      All costs of the arbitral proceedings shall be in the
      discretion of the Arbitrator who may direct to and by whom, and in what
      manner, (including allocation between the parties) the costs or any part
      of them shall be paid, it being the intention of the parties that the
      first principle in the exercise of the Arbitrator’s discretion shall be
      that the costs of the arbitral proceedings shall follow the event of the
      award.

	 	 	 
	 	(f) 	
      The Arbitrator may proceed ex parte in case either
      party, or any of their witnesses, shall at any time neglect or refuse to
      attend the arbitration proceedings after 7 days’ notice in writing under
      the hand of the Arbitrator given to each party or to the parties’
      solicitor, unless the party, prior to the time fixed to attend, presents
      to the Arbitrator what the latter considers sufficient cause for failure
      to attend.

	 	 	 
	 	(g) 	
      The Arbitrator and any nominee under Subsection 10.4(a)
      must be a practising lawyer, accountant, professor, or a retired justice
      of any of the courts of the Province of British Columbia. An Arbitrator
      selected outside of the jurisdiction of British Columbia may only be
      effective if agreed to in writing by each of the Claimant and the
      Respondent. The language to be used in the arbitral proceedings shall be
      in English.

	 	 	 
	 	(h) 	
      Any award made by the Arbitrator may, at the instance of
      either of the parties to the dispute and without notice to the other of
      them, be made an Order of the Supreme Court of British
  Columbia.

	10.5 	
      Confidentiality of information. All information
      and data concerning or derived from the Mining Operations shall be kept
      confidential and, except to the extent required by law, regulation or
      policy of any securities commission or stock exchange, or in connection
      with the filing of an annual information form or a prospectus by any party
      or any of its Affiliates, shall not be disclosed to any person other than
      an Affiliate without the prior consent of all the other party, which
      consent shall not unreasonably be withheld. Each party shall, where
      practicable, use reasonable commercial efforts to cause the text of any
      news releases or other public statements which a party desires to make
      with respect to the Property to be made available to the other party prior
      to publication and the other party shall have the right to make
      suggestions for changes therein.

	 	 
	10.6 	
      Waiver. The failure of a party in any one or more
      instances to insist upon strict performance of any of the terms of this
      Agreement or to exercise any right or privilege arising under it shall not
      preclude it from requiring by reasonable notice that any other party duly
      perform its obligations or preclude it from exercising such a right or
      privilege under reasonable circumstances, nor shall waiver in any one
      instance of a breach be construed as an amendment of this Agreement or
      waiver of any later breach.

	 	 
	10.7 	
      Enurement. This Agreement shall enure to the
      benefit of and be binding upon the parties hereto and their respective
      successors and permitted assigns.

	 	 
	10.8 	
      Further Assurances. The parties hereto shall from
      time to time at the request of any of the other parties hereto and without
      further consideration, execute and deliver all such other additional
      assignments, transfers, instruments, notices, releases and other documents
      and

- 15 - 

		
      shall do all such other acts and things as may be
      necessary or desirable to assure more fully the consummation of the
      transactions contemplated hereby.

	 	 
	10.9 	
      Time. Time shall be of the essence of this
      Agreement.

	 	 
	10.10 	
      Expenses. Each party shall be responsible for its
      own expense in connection with negotiating and settling this
    Agreement.

	 	 
	10.11 	
      Amendment. This Agreement may be amended or varied
      only by agreement in writing signed by each of the parties.

	 	 
	10.12 	
      Governing Law and Attornment. This Agreement shall
      be governed by and interpreted in accordance with the laws of the Province
      of British Columbia and the federal laws of Canada applicable therein and
      the parties hereby irrevocably attorn to the jurisdiction of the Courts of
      the Province of British Columbia sitting in Vancouver.

	 	 
	10.13 	
      Counterparts. This Agreement may be executed by
      facsimile and in as many counterparts as are necessary and shall be
      binding on each party when each party hereto has signed and delivered one
      such counterpart. When a counterpart of this Agreement has been executed
      by each party, all counterparts together shall constitute one
      agreement.

THE PARTIES, intending to be contractually bound, have entered
into this Agreement as of the date set out on the first page.

	TAC GOLD CORPORATION 	  
	 	 
	By: 	c/s 
	  	  
	(Authorized Signatory) 	  
	 	 
	ALL AMERICAN GOLD CORP. 	  
		 
	By: 	c/s 
	  	  
	(Authorized Signatory) 	  

SCHEDULE A 

To an Agreement made as of September 9, 2011 between Tac Gold

Corporation and All American Gold Corp. 

THE PROPERTY 

[Insert what is Exhibit A to the Minquest Option Agreement] 

SCHEDULE B 

To an Agreement made as of September 9, 2011 between Tac Gold

Corporation and All American Gold Corp. 

JOINT VENTURE AGREEMENT 
IOWA CANYON PROPERTY

THIS AGREEMENT made the ____ day of _____________, _______

  
    
      TAC GOLD CORPORATION, a British Columbia company,
        with offices at 203 – 2780 Granville Street, Vancouver, BC, Canada
        V6H 3J3 (Facsimile: 604-730-0967); 

      (the “Optionor”) 

    

  

AND: 

  
    
      ALL AMERICAN GOLD CORP., a Wyoming corporation,
        of Suite 203, 700 North High School Road, Indianapolis, Indiana, USA 46214
        (Facsimile: <>); 

      (the “Optionee”) 

    

  

THE PARTIES, for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowedged, agree as follows: 

	1. 	
      INTERPRETATION

	 	 	 
	1.1 	
      In this Agreement the following words, phrases and
      expressions shall have the following meanings:

	 	 	 
		(a) 	
      "Accounting Procedure" means the procedure
      attached hereto as Appendix 1.

	 	 	 
		(b) 	
      "Affiliate" shall have the meaning attributed to
      it in the Canada Business Corporations Act, as amended.

	 	 	 
		(c) 	
      "Assets" means all tangible and intangible goods,
      chattels, improvements or other items including, but not limited to, land,
      buildings, and equipment but excluding the Property, acquired for or made
      to the Property under the Option Agreement or this Agreement in connection
      with the Mining Operations.

	 	 	 
		(d) 	
      "Completion Date" means the date determined by the
      Management Committee on which it is demonstrated to the satisfaction of
      the Management Committee that the preparing and equipping of the Mine is
      complete and is the date on which commercial production
  commences.

2

	 	(e) 	
      "Construction" means every kind of work carried
      out during the Construction Period by the Operator in accordance with the
      Feasibility Report and Production Notice related thereto, as approved by
      the Management Committee.

	 	 	 	 
	 	(f) 	
      "Construction Period" means, unless the Production
      Notice is subsequently withdrawn, the period beginning on the date a
      Production Notice is given and ending on the Completion Date.

	 	 	 	 
	 	(g) 	
      "Costs" means, except as to Prior Exploration
      Costs, all items of outlay and expense whatsoever, direct or indirect,
      with respect to Mining Operations, recorded by the Operator in accordance
      with this Agreement and shall include all obligations and liabilities
      incurred or to be incurred with respect to the protection of the
      environment such as future decommissioning, reclamation and long-term care
      and monitoring, even if not then due and payable so long as the amounts
      can be estimated with reasonable accuracy, and whether or not a mine
      reclamation trust fund has been established. Without limiting generality,
      the following categories of Costs shall have the following
  meanings:

	 	 	 	 
	 		(i) 	
      "Construction Costs" means those Costs recorded by
      the Operator during the Construction Period, including, but not limited
      to, the Operator's fee contemplated in article 11;

	 	 	 	 
	 		(ii) 	
      "Exploration Costs" means those Costs recorded by
      the Operator during the Exploration Period, including, but not limited to,
      the Operator's fee contemplated in article 11;

	 	 	 	 
	 		(iii) 	
      "Mine Costs" means Construction Costs and
      Operating Costs;

	 	 	 	 
	 		(iv) 	
      "Operating Costs" means those Costs recorded by
      the Operator subsequent to the Completion Date, including, but not limited
      to, the Operator's fee contemplated in article 11; and

	 	 	 	 
	 		(v) 	
      "Prior Exploration Costs" means the deemed
      Expenditures of the parties under paragraph 7.9.

	 	 	 	 
	 	(h) 	
      "Exploration Period" means the period beginning
      the Operative Date and ending the date a Production Notice is given and
      Construction Costs are fully committed.

	 	 	 	 
	 	(i) 	
      "Feasibility Report" means a detailed report, in
      form and substance sufficient for presentation to arm's length
      institutional lenders considering project financing, showing the
      feasibility of placing any part of the Property into commercial production
      as a Mine and shall include a reasonable assessment of the various
      categories of ore reserves and their amenability to metallurgical
      treatment, a complete description of the work, equipment and supplies
      required to bring such part of the Property into commercial production and
      the estimated cost thereof, a

3

description of the mining methods to
be employed and a financial appraisal of the proposed operations and including
at least the following: 

	 	(i) 	
      a description of that part of the Property to be covered
      by the proposed Mine;

	 	 	 
	 	(ii) 	
      the estimated recoverable reserves of Minerals and the
      estimated composition and content thereof;

	 	 	 
	 	(iii) 	
      the proposed procedure for development, mining and
      production;

	 	 	 
	 	(iv) 	
      results of ore amenability treatment tests (if
    any);

	 	 	 
	 	(v) 	
      the nature and extent of the facilities proposed to be
      acquired, which may include mill facilities if the size, extent and
      location of the ore body makes such mill facilities feasible, in which
      event the study shall also include a preliminary design for such
    mill;

	 	 	 
	 	(vi) 	
      the total costs, including capital budget, which are
      reasonably required to purchase, construct and install all structures,
      machinery and equipment required for the proposed Mine, including a
      schedule of timing of such requirements;

	 	 	 
	 	(vii) 	
      all environmental impact studies and costs of
      implementation;

	 	 	 
	 	(viii) 	
      the period in which it is proposed the Property shall be
      brought to commercial production; and

	 	 	 
	 	(ix) 	
      such other data and information as are reasonably
      necessary to substantiate the existence of an ore deposit of sufficient
      size and grade to justify development of a mine, taking into account all
      relevant business, tax and other economic considerations including a cost
      comparison between purchasing or leasing and renting of facilities and
      equipment required for the operation of the Property as a
  Mine.

	 	(j) 	
      "Interest" means an undivided beneficial
      percentage interest in the Property, the Assets and any Mine, calculated,
      during the Exploration Period, according to article 7 and subsequent to
      the Exploration Period according to article 10.

	 	 	 
	 	(k) 	
      "Joint Operation" shall have the meaning
      attributed to it in paragraph 2.1.

	 	 	 
	 	(l) 	
      "Management Committee" means the committee
      established pursuant to article 4.

	 	 	 
	 	(m) 	
      "Mine" means the workings established and Assets
      acquired, including, but not limited to, development headings, plant and
      concentrator installations, infrastructure, housing, airport and other
      facilities in order to bring the Property into commercial production in
      accordance with the Production Notice.

4

	 	(n) 	
      "Minerals" means any and all ores (and
      concentrates derived therefrom) and minerals, precious and base, metallic
      and nonmetallic, in, on or under the Property which may lawfully be
      explored for, mined and sold.

	 	 	 	 
	 	(o) 	
      "Mining Operations" means every kind of work done
      by the Operator:

	 	 	 	 
	 		(i) 	
      on or in respect of the Property in accordance with a
      Program or Production Notice or Operating Plan; or

	 	 	 	 
	 		(ii) 	
      if not provided for in a Program or Production Notice or
      Operating Plan, unilaterally and in good faith to maintain the Property in
      good standing, to prevent waste or to otherwise discharge any obligation
      which is imposed upon it pursuant to this Agreement and in respect of
      which the Management Committee has not given it directions;

	 	 	 	 
	 		
      including, but not limited to, investigating,
      prospecting, exploring, developing, property maintenance, preparing
      reports, estimates and studies, designing, equipping, improving,
      surveying, construction and mining, milling, concentrating,
      rehabilitation, reclamation, and environmental protection.

	 	 	 	 
	 	(p) 	
      "Minquest NSR Royalty" means the 3% royalty on net
      smelter returns on production from the Property in favour of Minquest Inc.
      provided for in the Mineral Property Option Agreement made as of the
      6th day of April 2010 between Minquest Inc. and TAC Gold
      Corporation as amended by an Amendment to Mineral Property Option
      Agreement made effective as of April 6, 2010.

	 	 	 	 
	 	(q) 	
      "Net Smelter Returns" shall have the meaning
      attributed to it in Appendix 2.

	 	 	 	 
	 	(r) 	
      "Net Proceeds of Production" shall have the
      meaning attributed to it in Appendix 3.

	 	 	 	 
	 	(s) 	
      "Operating Plan" means the annual plan of Mining
      Operations submitted pursuant to paragraph 14.2.

	 	 	 	 
	 	(t) 	
      "Operative Date" means the date upon which this
      Agreement becomes effective.

	 	 	 	 
	 	(u) 	
      "Operator" means the party appointed as the
      Operator in accordance with article 5.

	 	 	 	 
	 	(v) 	
      "Option Agreement" means the agreement between the
      Optionor and the Optionee dated September 9, 2011;

	 	 	 	 
	 	(w) 	
      "Participant" means a party that is contributing
      to Exploration Costs or Mine Costs, as the case may be.

	 	 	 	 
	 	(x) 	
      "party" or "parties" means the parties to
      this Agreement and their respective successors and permitted assigns which
      become parties pursuant to this Agreement.

5

	 	(y) 	
      "Prime Rate" means the rate of interest stated by
      the Bank of Montreal, Main Branch, Vancouver, British Columbia, as being
      charged by it on Canadian Dollar demand loans to its most creditworthy
      domestic commercial customers.

	 	 	 
	 	(z) 	
      "Production Notice" means a notice which is given
      to each of the parties pursuant to paragraph 9.2.

	 	 	 
	 	(aa) 	
      "Program" means the work plan and budget of Mining
      Operations conducted during the Exploration Period and adopted pursuant to
      paragraph 7.2.

	 	 	 
	 	(bb) 	
      "Property" means the mineral properties that
      become subject to this Agreement on the Operative Date, any additional
      mineral properties that become part of the Property pursuant to this
      Agreement, the Minerals thereon, all information obtained from Mining
      Operations and those rights and benefits appurtenant to the Property that
      are acquired for the purpose of conducting Mining Operations.

	 	 	 
	 	(cc) 	
      "Proportionate Share" means that share which is
      equal to a party's percentage Interest.

	 	 	 
	 	(dd) 	
      "Simple Majority" means a decision made by the
      Management Committee by more than 50 percent of the votes represented and
      entitled to be cast on the decision.

	 	 	 
	 	(ee) 	
      "Special Majority" means a decision made by the
      Management Committee by more than 75 percent of the votes represented and
      entitled to be cast on the decision.

	 	 	 
	 	(ff) 	
      "$" means US Dollars.

	1.2 	
      The words "article", "paragraph", "subparagraph",
      "herein" and "hereunder" refer to this Agreement. The words
      "this Agreement" include every Schedule or Appendix attached hereto
      but exclude the Option Agreement.

	 	 
	1.3 	
      The captions and the emphases of the defined terms have
      been inserted for convenience and do not define the scope of any
      provision.

	 	 
	2. 	
      FORMATION OF THE JOINT VENTURE

	 	 
	2.1 	
      The parties hereby agree to associate and participate in
      a joint operation (herein called the "Joint Operation") for the
      purpose of exploring the Property and, if deemed warranted, bringing the
      Property or a portion thereof into commercial production by establishing
      and operating a Mine.

	 	 
	2.2 	
      Except as expressly provided in this Agreement, each
      party shall have the right independently to engage in and receive full
      benefits from business activities, whether or not competitive with the
      Joint Operation, without consulting any other party. The doctrines of
      "corporate opportunity" or "business opportunity" shall not be applied to
      any

6

		
      other activity, venture or operation of any party and no
      party shall have any obligation to another party with respect to any
      opportunity to acquire any assets outside of the Property at any time, or
      within the Property after the termination of this Agreement. Unless
      otherwise agreed in writing, no party shall have any obligation to mill,
      beneficiate or otherwise treat any Minerals or any other party's share of
      Minerals in any facility owned or controlled by such party.

	 	 
	3. 	
      INTERESTS

	 	 
	3.1 	
      Except as otherwise provided herein, the parties shall
      bear all Costs and all liabilities arising under this Agreement and shall
      own the Property, the Assets and any Mine all in proportion to their
      respective Interests.

	 	 
	3.2 	
      On the Operative Date the respective Interests of the
      parties shall be as follows:

	 	Optionor 	85% 
	 	 	 
	 	Optionee 	15%

	3.3 	
      The Optionee shall have the option to acquire an
      additional 25% Interest from the Optionor by paying to the Optionor
      $3,000,000 at least 60 days before the first anniversary of the formation
      of the Joint Venture (as defined and provided in the Option Agreement). If
      the Optionee exercises this option and acquires an addition 25% Interest,
      then thereafter the Optionee shall be credited with additional Exploration
      Costs of $<> for the purposes of articles 7 and 10 hereof. If the
      Optionee does not exercise this option to acquire an additional 25%
      Interest, then the Optionor may purchase the Optionee’s Interest by paying
      to the Optionee on or before the first anniversary of the formation of the
      Joint Venture an amount equal to the Exploration Costs and Prior
      Exploration Costs paid by the Optionee pursuant to this Agreement and the
      Option Agreement plus 10%. Each of the parties agrees to take all steps
      necessary and to execute and deliver such documents as may be required in
      order to transfer to the Optionee an additional 25% Interest if the
      Optionee exercises its option to acquire an additional 25% Interest or in
      order to transfer to the Optionor the Optionee’s Interest if the Optionee
      does not exercise its option to acquire an additional 25% Interest and the
      Optionor exercises its option to acquire the Optionee’s Interest. All
      Interests transferred pursuant to this section shall be transferred free
      and clear of all Encumbrances (as defined in the Option Agreement) other
      than Permitted Encumbrances (as defined in the Option
Agreement).

	 	 
	4. 	
      MANAGEMENT COMMITTEE

	 	 
	4.1 	
      A Management Committee shall be established on or
      forthwith after the Operative Date. Except as herein otherwise provided,
      the Management Committee shall make all decisions in respect of Mining
      Operations.

	 	 
	4.2 	
      Each party owning an Interest shall forthwith appoint one
      representative and one alternate representative to the Management
      Committee. The alternate representative may act for a party's
      representative in his absence.

7

	4.3 	
      The Operator shall call a Management Committee meeting at
      least once every 12 months, and, in any event within 14 days of being
      requested to do so by any representative.

	 	 
	4.4 	
      The Operator shall give notice, specifying the time and
      place of, and the agenda for, the meeting to all representatives at least
      seven days before the time appointed for the meeting. Unless otherwise
      agreed to by the Management Committee, all meetings of the Management
      Committee shall be held in Vancouver, British Columbia, Canada. Each
      agenda for a meeting shall include the consideration and approval of the
      minutes of the immediately preceding meeting of the Management
      Committee.

	 	 
	4.5 	
      Notice of a meeting shall not be required if
      representatives of all of the parties are present and unanimously agree
      upon the agenda.

	 	 
	4.6 	
      A quorum for any Management Committee meeting shall be
      present if a representative of each of the parties holding an Interest is
      present. If a quorum is present at the meeting, the Management Committee
      shall be competent to exercise all of the authorities, powers and
      discretions herein bestowed upon it hereunder. The Management Committee
      shall not transact any business at a meeting unless a quorum is present at
      the commencement of the meeting. If a quorum is not present within 30
      minutes following the time appointed for the commencement of the
      Management Committee meeting, the meeting shall be automatically
      re-scheduled for the same time of day and at the same place five business
      days later, and the Operator shall be under no obligation to give any
      party notice thereof. A quorum shall be deemed to be present at such
      re-scheduled meeting for all purposes under this Agreement if at least one
      representative is present, and a party or parties holding not less than
      25% in Interest is or are represented. A representative may attend and
      vote at a meeting of the Management Committee by telephone conference call
      in which each representative may hear, and be heard by, the other
      representatives.

	 	 
	4.7 	
      The Management Committee shall decide every question
      submitted to it by a vote with each representative being entitled to cast
      that number of votes which is equal to its party's Interest percentage.
      Other than as is expressly set out herein to the contrary, the Management
      Committee shall make decisions by Simple Majority. If a dispute or
      deadlock arises in the Management Committee, the two nominees shall
      appoint an independent party to resolve the dispute or deadlock and,
      failing agreement on such a party, the Management Committee shall accept
      such party as is recommended by Strathcona Mineral Services Ltd. or, if
      Strathcona is unwilling to make a recommendation, a comparable
  firm.

	 	 
	4.8 	
      The representative and alternate representative of the
      Operator shall be the chairman and secretary, respectively, of the
      Management Committee meeting.

	 	 
	4.9 	
      The secretary of the Management Committee meeting shall
      take minutes of that meeting and circulate copies thereof to each
      representative within a reasonable time following the termination of the
      meeting, and in any event no later than the time of delivery of the notice
      of the next following meeting of the Management
  Committee.

8

	4.10 	
      The Management Committee may make decisions by obtaining
      the consent in writing of the representatives of all parties. Any decision
      so made shall be as valid as a decision made at a duly called and held
      meeting of the Management Committee.

	 	 	 	 
	4.11 	
      Management Committee decisions made in accordance with
      this Agreement shall be binding upon all of the parties.

	 	 	 	 
	4.12 	
      Each party shall bear the expenses incurred by its
      representative and alternate representative in attending meetings of the
      Management Committee.

	 	 	 	 
	4.13 	
      The Management Committee may, by agreement of the
      representatives of all the parties, establish such other rules of
      procedure, not inconsistent with this Agreement, as the Management
      Committee deems fit.

	 	 	 	 
	4.14 	
      Reference in this section to the "parties" shall apply
      during the Exploration Period. After the date of a Production Notice this
      section shall be read as if the word "Participant" appeared wherever the
      word "party" appears.

	 	 	 	 
	5. 	
      OPERATOR

	 	 	 	 
	5.1 	
      The Optionor shall act as Operator.

	 	 	 	 
	5.2 	
      The party acting as Operator may resign as Operator on at
      least 90 days' notice to all the parties.

	 	 	 	 
	5.3 	
      The Management Committee may, by Special Majority (with
      the Operator not being entitled to vote on such resolution), remove the
      party acting as Operator, effective the date designated by the Management
      Committee if:

	 	 	 	 
		(a) 	
      that party makes an assignment for the benefit of its
      creditors, or consents to the appointment of a receiver for all or
      substantially all of its property, or files a petition in bankruptcy or is
      adjudicated bankrupt or insolvent; or

	 	 	 	 
		(b) 	
      a court order is entered without that party's
    consent:

	 	 	 	 
			(i) 	
      appointing a receiver or trustee for all or substantially
      all of its property; or

	 	 	 	 
			(ii) 	
      approving a petition in bankruptcy or for a
      reorganization pursuant to the applicable bankruptcy legislation or for
      any other judicial modification or alteration of the rights of creditors;
      or

	 	 	 	 
		(c) 	
      the Operator is in default under this Agreement and fails
      to cure such default, or to commence bona fide curative measures, within
      30 days of receiving notice of the default from a non-Operator;

	 	 	 	 
		(d) 	
      the Operator fails to meet any of its obligations
      pursuant to paragraph 6.4; or

9

	 	(e) 	
      the Operator undergoes a change in "Control" (as
      hereinafter defined).

	5.4 	
      In paragraph 5.3, "Control" means the ability,
      directly or indirectly through one or more intermediaries, to direct or
      cause the direction of the management and policies of the Operator through
      (i) the legal or beneficial ownership of voting securities; (ii) the right
      to appoint managers, directors or corporate management; (iii) contract;
      (iv) operating agreement; (v) voting trust; or otherwise.

	 	 
	5.5 	
      If a party resigns or is removed as Operator, the
      Management Committee (the representative of the former Operator not being
      entitled to vote on the resolution) shall thereupon select another party
      to become the Operator effective the date established by the Management
      Committee.

	 	 
	5.6 	
      The new Operator shall assume all of the rights, duties,
      liabilities and status of the previous Operator as provided in this
      Agreement. The new Operator shall have no obligation to hire any employees
      of the former Operator resulting from this change of Operator.

	 	 
	5.7 	
      Upon ceasing to be Operator, the former Operator shall
      forthwith deliver to the new Operator custody of all Assets, Property,
      books, records, and other property both real and personal which it
      prepared or maintained in its capacity as Operator.

	 	 
	5.8 	
      If the Operator resigns or is removed and no other party
      consents to act as Operator, the Joint Operation shall be terminated and
      the party which was the Operator may, if it consents to act, continue to
      act as Operator to effect the termination and the other parties shall be
      obligated to fund their respective Proportionate Shares of the Costs
      incurred.

	 	 
	6. 	
      RIGHTS, DUTIES AND STATUS OF OPERATOR

	 	 
	6.1 	
      The Operator in its operations hereunder shall be deemed
      to be an independent contractor. The Operator shall not act or hold itself
      out as agent for any of the parties nor make any commitments on behalf of
      any of the parties unless specifically permitted by this Agreement or
      directed in writing by a party.

	 	 
	6.2 	
      Subject to any specific provision of this Agreement and
      subject to it having the right to reject any direction on reasonable
      grounds by virtue of its status as an independent contractor, the Operator
      shall perform its duties hereunder in accordance with the directions of
      the Management Committee and in accordance with this Agreement.

	 	 
	6.3 	
      The Operator shall manage and carry out Mining Operations
      substantially in accordance with Programs, Feasibility Reports and
      Production Notices, Operating Plans, Mine Maintenance Plans and Mine
      Closure Plans adopted by the Management Committee and in connection
      therewith shall, in advance if reasonably possible, notify the Management
      Committee of any change in Mining Operations which the Operator considers
      material and if it is not reasonably possible, the Operator shall notify
      the Management Committee so soon thereafter as is reasonably
    possible.

10

	6.4 	
      The Operator shall have the sole and exclusive right and
      authority to manage and carry out all Mining Operations in accordance
      herewith and to incur the Costs required for that purpose. In so doing the
      Operator shall:

	 	 	 
		(a) 	
      comply with the provisions of all agreements or
      instruments of title under which the Property or Assets are
held;

	 	 	 
		(b) 	
      pay all Costs properly incurred promptly as and when
      due;

	 	 	 
		(c) 	
      keep the Property and Assets free of all liens and
      encumbrances (other than those, if any, in effect on the Operative Date,
      those the creation of which is permitted pursuant to this Agreement, or
      builder's or mechanic's liens) arising out of the Mining Operations and,
      in the event of any lien being filed as aforesaid, proceed with diligence
      to contest or discharge the same;

	 	 	 
		(d) 	
      with the approval of the Management Committee prosecute
      claims and, where a defence is available, defend litigation arising out of
      the Mining Operations, provided that any Participant may join in the
      prosecution or defence at its own expense;

	 	 	 
		(e) 	
      subject to paragraph 20.6, perform such assessment work
      or make payments in lieu thereof and pay such rentals, taxes or other
      payments and do all such other things as may be necessary to maintain the
      Property in good standing, including, but not limited to, staking and
      restaking mining claims, and applying for licenses, leases, grants,
      concessions, permits, patents and other rights to and interests in the
      Minerals;

	 	 	 
		(f) 	
      maintain books of account in accordance with the
      Accounting Procedure, provided that the judgment of the Operator as to
      matters related to the accounting, for which provision is not made in the
      Accounting Procedure, shall govern if the Operator's accounting practices
      are in accordance with accounting principles generally accepted in the
      mining industry in Canada;

	 	 	 
		(g) 	
      perform its duties and obligations hereunder in a sound
      and workmanlike manner, in accordance with sound mining and engineering
      practices and other practices customary in the Canadian mining industry,
      and in substantial compliance with all applicable federal, provincial,
      Territorial and municipal laws, by-laws, ordinances, rules and regulations
      and this Agreement;

	 	 	 
		(h) 	
      prepare and deliver the reports provided for in paragraph
      21.2; and

	 	 	 
		(i) 	
      have such additional duties and obligations as the
      Management Committee may from time to time
determine.

11

	7. 	
      EXPLORATION PROGRAMS

	 	 
	7.1 	
      The Operator shall prepare draft Programs for
      consideration by the Management Committee. Unless otherwise agreed to by a
      Special Majority, each Program shall cover a calendar year. The draft
      Program shall contain a statement in reasonable detail of the proposed
      Mining Operations, estimates of all Exploration Costs to be incurred and
      an estimate of the time when they will be incurred, and shall be delivered
      to each Participant on or before March 1 of each calendar year to which
      the draft Program relates. Each draft Program shall be accompanied by such
      reports and data as are reasonably necessary for each party to evaluate
      and assess the results from the Program for the then current year and, to
      the extent not previously delivered, from earlier Programs.

	 	 
	7.2 	
      The Management Committee shall review the draft Program
      prepared and, if it deems fit, adopt the Program with such modifications,
      if any, as the Management Committee deems necessary. The Operator shall be
      entitled to an allowance for a Cost overrun of 10 percent in addition to
      any budgeted Exploration Costs and any Costs so incurred shall be deemed
      to be included in the Program, as adopted.

	 	 
	7.3 	
      The Operator shall forthwith submit the adopted Program
      to the parties. Each party may, within 30 days of receipt of the Program,
      give notice to the Operator committing to contribute its Proportionate
      Share of the Exploration Costs for that Program. A party which fails to
      give that notice within the 30 day period shall be deemed to have elected
      not to contribute to that Program.

	 	 
	7.4 	
      If any party elected not to contribute to a Program, the
      amounts to be contributed by the parties who elected to contribute shall
      be increased pro rata, subject to the right of any of them to
      elect, prior to the commencement of the Program, not to contribute more
      than its Proportionate Share. If one or more party so elects to contribute
      no more than its Proportionate Share and the other parties do not elect to
      contribute pro rata to the resulting shortfall, the Operator shall
      in good faith revise the Program and Budget such that the technical
      objectives of the original Program are retained to the extent that is
      reasonably practicable given the reduced contributions to Costs. The
      Operator shall, within 15 days following the end of the 30-day period set
      out in paragraph 7.3, deliver to each party a copy of the said revised
      Program which, if the budget contemplates Costs of at least 80% of those
      contemplated in the original adopted Program, shall then be deemed for all
      purposes under this Agreement to be the adopted Program . If the budget
      for the revised Program contemplates Costs of less than 80% of those
      contemplated in the original adopted Program, the revised Program shall be
      re-submitted to the Management Committee as a draft Program pursuant to
      paragraph 7.1, and the procedure set out in paragraph 7.1 to 7.4 inclusive
      shall be repeated.

	 	 
	7.5 	
      The Operator shall be entitled to invoice each
      Participant:

	 	(a) 	
      no more frequently than monthly, for its Proportionate
      Share of Exploration Costs incurred and paid by the Operator in carrying
      out a Program; or

12

	 	(b) 	
      not more than 60 days in advance of requirements, for an
      advance of that Participant's Proportionate Share of Exploration Costs
      estimated to be incurred and paid by the Operator in carrying out a
      Program.

		
      Each invoice shall be signed by a financial officer of
      the Operator. Each Participant shall pay to the Operator the amount
      invoiced within 30 days of receipt of the invoice. If a Participant
      protests the correctness of an invoice it shall nevertheless be required
      to make the payment.

	 	 
	7.6 	
      If any Participant, after having committed to contribute
      pursuant to paragraph 7.3, fails to pay an invoice within the 30-day
      period referred to in paragraph 7.5 the Operator may by notice demand
      payment. If no payment is made within the period of 30 days next
      succeeding the receipt of the demand notice, that Participant shall be
      deemed to have forfeited its right to contribute to any further Costs
      under this Agreement and it shall be deemed to have elected not to
      contribute to each Program subsequently conducted and to any Production
      Notice, and accordingly, shall have its Interest reduced in the manner
      contemplated in paragraphs 7.9 and 10.2(b).

	 	 
	7.7 	
      The Operator shall expend all monies advanced by a
      Participant ratably with the advances of the other Participants. If the
      Operator suspends or prematurely terminates a Program, any funds advanced
      by a Participant in excess of that Participant's Proportionate Share of
      Exploration Costs incurred prior to the suspension or premature
      termination shall be refunded within 30 days of the suspension or
      premature termination. Unless approved unanimously by the Management
      Committee, the Operator shall be exclusively liable for the payment of all
      Costs incurred in excess of 110 percent of any budgeted Exploration
      Costs.

	 	 
	7.8 	
      Unless otherwise directed by the Management Committee,
      the Operator may suspend or terminate prematurely any Program when the
      Operator, in good faith, considers that conditions are not suitable for
      the proper continuation or completion of the Program or the results
      obtained to that time eliminate or substantially impair the technical
      rationale on which the Program was based. If any Program is altered,
      suspended or terminated prematurely so that the Exploration Costs incurred
      on that Program as altered, suspended or terminated are less than 80
      percent of the Exploration Costs set out in the adopted Program, any party
      which elected not to contribute to that Program shall be given notice of
      the alteration, suspension or termination by the Operator and shall be
      entitled to contribute its Proportionate Share of the Exploration Costs
      incurred on that Program by payment thereof to the Operator within 30 days
      after receipt of the notice, but shall not be entitled to review the
      results of the Program until it has made full payment. If payment is not
      made by that party within the 30 days aforesaid it shall forfeit its right
      to contribute to that Program without a demand for payment being required
      to be made thereafter by the Management Committee. If payment is made by
      that party within the 30 days as aforesaid, the Operator shall distribute
      the payment to the original Participants pro rata according to
      their respective contributions to the Program, and shall deliver to the
      new Participant copies of all data previously delivered to the other
      Participants with respect to that Program

13

	7.9 	
      If a party elected not to contribute to the Exploration
      Costs of any Program the Interest of that party shall be decreased and the
      Interest of each Participant contributing in excess of its Proportionate
      Share of the Exploration Costs shall be increased so that, subject to
      paragraph 7.10, at all times during the Exploration Period the Interest of
      each party will be that percentage which is equivalent to its Exploration
      Costs and Prior Exploration Costs expressed as a percentage of the
      Exploration Costs and Prior Exploration Costs of all parties.
      Notwithstanding the foregoing but subject to paragraph 7.10 hereof, the
      party whose Interest has been reduced (other than a party who has
      forfeited the right to contribute pursuant to paragraph 7.6) shall be
      entitled to receive details of and to contribute to future Programs to the
      extent of its then Interest. On the Operative Date, the parties'
      respective Interests and Prior Exploration Costs shall be deemed to be as
      follows:

	 	  	Prior Exploration Costs 	Interest 
	 	 	 	 
	 	Optionor 	$1,870,000 	85% 
	 	 	 	 
	 	Optionee 	$330,000 	15% 

	7.10 	
      If the effect of the application of paragraph 7.9 is to
      reduce the Interest of any party to less than 10%, such party shall then
      be deemed to have assigned and conveyed its Interest to the Participants,
      if more than one then in proportion to their respective Interests, and
      shall be entitled to receive as its sole remuneration and benefit in
      consideration of that assignment and conveyance, by way of royalty, 1% of
      Net Smelter Returns, subject to adjustment as provided in paragraph
      7.12.

	 	 	 
	7.11 	
      If the Operator fails to submit a draft Program or a
      revised Program by the date set out in this Agreement, the following shall
      apply:

	 	 	 
		(a) 	
      the Operator shall not be entitled to submit a draft
      Program or revised Program for the subject period;

	 	 	 
		(b) 	
      any Participant other than the Operator whose Interest is
      not less than 20% may, within 30 days following the date by which the
      Operator's draft Program or revised Program was due, submit a draft
      Program (the "Non-Operator's Program") for the subject period for
      consideration by the Management Committee;

	 	 	 
		(c) 	
      the Management Committee shall review the Non-Operator's
      Program and, if it deems fit (the Operator not being entitled to vote with
      respect thereto), adopt the Non-Operator's Program with such
      modifications, if any, as the Management Committee deems necessary; the
      adopted Program shall then be submitted to the parties pursuant to
      paragraph 7.3;

	 	 	 
		(d) 	
      if the Operator is a party and elects to contribute to
      the Non-Operator's Program, it shall remain as the Operator for the
      duration of the Non-Operator's Program;

14

	 	(e) 	
      if the Operator is a party and elects not to contribute
      to the Non-Operator's Program, it shall cease to be the Operator for the
      duration of the Non-Operator's Program, and the Management Committee shall
      appoint another party as Operator (the former Operator not being entitled
      to vote with respect thereto);

	 	 	 
	 	(f) 	
      following the completion of the Non-Operator's Program
      the former Operator shall, subject to the provisions of paragraph 5.3,
      automatically become the Operator, save and except in the instance where
      the former Operator fails to pay an invoice within the 30-day period
      referred to in paragraph 7.5 and is subject to the consequences set out in
      paragraph 7.6.

	7.12 	
      Each of the Optionee and the Optionor hereby agree that
      the maximum royalty to which it and its assigns shall be collectively
      entitled pursuant to this Agreement is 1% of Net Smelter Returns. For
      example, if:

	 	 	 
		(a) 	
      the Optionor assigns a part of its Interest to a third
      party pursuant to this Agreement, and

	 	 	 
		(b) 	
      the Optionor then becomes entitled to receive 0.5% of Net
      Smelter Returns pursuant to paragraph 7.10; and

	 	 	 
		(c) 	
      the said third party then also becomes entitled to
      receive 0.5% of Net Smelter Returns pursuant to paragraph 7.10,

	 	 	 
			
      then the Optionor and such third party shall collectively
      be entitled to receive 1% of Net Smelter Returns, allocated between them
      on a proportionate basis based upon the respective Prior Exploration Costs
      and Exploration Costs of each of the Optionor and such third party at the
      time that the assignment and conveyance of its Interest took
  place.

	 	 	 
	8. 	
      FEASIBILITY REPORT

	 	 	 
	8.1 	
      Except as provided in paragraph 8.2, a Feasibility Report
      shall only be prepared with the approval of the Management Committee. The
      Operator shall provide copies of the completed Feasibility Report to each
      of the parties forthwith upon receipt, together with copies of all of the
      latest technical data and information generated or received by the
      Operator from the immediately preceding Program and not contained in the
      Feasibility Report.

	 	 	 
	8.2 	
      Notwithstanding the provisions of paragraph 8.1, if a
      party (the "Proponent") is of the view that a Feasibility Report
      should be prepared, such party shall give notice thereof to the Operator
      and the Operator shall call a Management Committee meeting to consider the
      matter. If the Management Committee fails to approve the preparation of
      the Feasibility Report supported by the Proponent, the Proponent may,
      either alone or with other parties, at its or their sole cost, prepare a
      Feasibility Report. If such Feasibility Report indicates that production
      from the Property would be profitable to the Proponent, the Proponent
      shall deliver the Feasibility Report to the Operator who shall then call a
      Management Committee meeting to consider the Proponent's Feasibility
      Report. If the

15

		
      Management Committee adopts the Feasibility Report, the
      non-contributing parties may either pay the Proponent an amount equal to
      150% of their respective proportionate costs of the preparation of the
      Feasibility Report, or shall suffer reduction of their respective
      Interests pursuant to paragraph 7.9. Upon the adoption by the Management
      Committee of the Proponent's Feasibility Report, it shall become a
      Feasibility Report for all purposes hereunder.

	 	 	 	 
	8.3 	
      The parties shall meet at reasonable intervals and times
      to review the Feasibility Report and discuss whether the establishing and
      bringing of a Mine into commercial production in conformity with the
      Feasibility Report is feasible or desirable.

	 	 	 	 
	9. 	
      PRODUCTION NOTICE

	 	 	 	 
	9.1 	
      The Operator shall call a Management Committee meeting to
      consider the Feasibility Report for a date no sooner than three months and
      no later than six months after the Feasibility Report was provided to each
      of the parties.

	 	 	 	 
	9.2 	
      The Management Committee shall consider the Feasibility
      Report prepared and may approve the Feasibility Report, with such
      modifications, if any, as it considers necessary or desirable, together
      with an estimate of Construction Costs. If a Feasibility Report is
      approved as aforesaid the Management Committee shall forthwith cause a
      Production Notice to be given to each of the parties by the Operator
      stating that the Management Committee has approved that a Mine be
      established and brought into production in conformity with the Feasibility
      Report and estimated Construction Costs as so approved.

	 	 	 	 
	10. 	
      ELECTION TO CONTRIBUTE

	 	 	 	 
	10.1 	
      Each party with an Interest may, within 60 days of the
      receipt of the Production Notice, give the Operator notice committing to
      contribute its Proportionate Share of Construction Costs. A party which
      fails to give that notice within the 60-day period shall be deemed to have
      elected not to contribute to Construction Costs.

	 	 	 	 
	10.2 	
      If any party elects not to contribute to Construction
      Costs that party, subject to its rights under paragraph 10.4, shall
      forfeit the right to contribute to any further Costs under this Agreement,
      and those parties which elected to contribute as aforesaid may thereupon
      elect to increase their contribution to Construction Costs, if more than
      one party then in proportion to their respective Interests, by the amount
      which any party has declined to contribute. If elections are made so that
      Construction Costs are fully committed:

	 	 	 	 
		(a) 	
      the Interest of each Participant shall be increased and
      that of each non-Participant shall be decreased as Costs are incurred so
      that the Interest of each party at all times is that percentage which is
      equivalent to

	 	 	 	 
			(i) 	
      the sum of its Exploration Costs, its Prior Exploration
      Costs and its contribution to Construction Costs;

	 	 	 	 
				
      divided by

16

	 	(ii) 	
      the sum of the total Exploration Costs, total Prior
      Exploration Costs and the total Construction Costs of all the
    parties;

	 	 	 
	 		
      multiplied by

	 	 	 
	 	(iii) 	
      100;

	 	(b) 	
      then, at the Completion Date, each non-Participant shall
      be deemed to have assigned and conveyed its Interest to the Participants,
      if more than one then in proportion to their respective Interests, and
      shall be entitled to receive as its sole remuneration and benefit in
      consideration of that assignment and conveyance, by way of royalty, that
      percent of the Net Proceeds of Production, as and when available, which is
      equivalent to the Interest, calculated at the Completion Date, subject to
      adjustment in the same manner as the Net Smelter Royalty is to be adjusted
      as provided in paragraph 7.12.

	 	 	 
	 	(c) 	
      each Participant shall severally calculate and cause to
      be paid to each non- Participant any Net Proceeds of Production derived
      from the Property in the manner provided in Appendix 3; and

	 	 	 
	 	(d) 	
      notwithstanding the provisions of subparagraphs 10.2(b)
      and (c), if the effect of the application of subparagraph 10.2(a) reduces
      any party's Interest to less than one percent it shall forfeit its
      Interest to the Participants, if more than one then in proportion to their
      respective Interests, and that party shall have no further right or
      interest under this Agreement.

	10.3 	
      If, after the operation of paragraph 10.2, Construction
      Costs are not fully committed the Production Notice shall be deemed to be
      withdrawn, and shall not be resubmitted, either in the same or a revised
      form, for a period of at least six months following such
  withdrawal.

	 	 
	10.4 	
      If, after the operation of paragraph 10.2, Construction
      Costs are fully committed, the Participants shall diligently proceed with
      bringing a Mine into production in substantial conformity with the
      Feasibility Report. If the Participants fail to commence the
      implementation of the Feasibility Report within twelve months of
      Construction Costs being fully committed, for reasons other than general
      economic conditions in the mining industry, any party which forfeited the
      right to contribute to Construction Costs pursuant to paragraph 10.2 shall
      have the right, exercisable in the 30 days following the expiration of
      such twelve month period, to reacquire from the Participants not less than
      all of its Interest as last held, by paying its Proportionate Share of
      Construction Costs incurred to the end of such twelve month period
      (together with interest at the Prime Rate plus 3%) to the Participants in
      proportion to their respective Interests.

	 	 
	10.5 	
      During the twelve-month period referred to in paragraph
      10.4, neither the Operator nor any Participant shall be obliged to provide
      any non-Participant with the results of any work carried out on the
      Property, the Participants' sole obligation during such period being to
      provide any non-Participant, on the written request of such
      non-Participant made

17

		
      only once during the said twelve months, with a summary
      of the nature of the work carried out and the total Costs
  thereof.

	 	 
	11. 	
      OPERATOR'S FEE

	 	 
	11.1 	
      The Operator may charge an operator’s fee with respect to
      Programs of 10% of all Costs which amount shall be paid promptly upon
      being invoiced.

	 	 
	12. 	
      MINE FINANCING

	 	 
	12.1 	
      The contributions of the Participants toward the Mine
      Costs shall be individually and separately provided by them.

	 	 
	12.2 	
      Any party may pledge, mortgage, charge or otherwise
      encumber its Interest in order to secure moneys borrowed and used by that
      party for the sole purpose of enabling it to finance its participation
      under this Agreement or in order to secure by way of floating charge as a
      part of the general corporate assets of that party moneys borrowed for its
      general corporate purposes, provided that the pledgee, mortgagee, holder
      of the charge or encumbrance (in this subsection called the
      "Chargee") shall hold the same subject to the provisions of this
      Agreement and that if the Chargee realizes upon any of its security it
      will comply with this Agreement. The Agreement between the party hereto,
      as borrower, and the Chargee shall contain specific provisions to the same
      effect as the provisions of this paragraph.

	 	 
	13. 	
      CONSTRUCTION

	 	 
	13.1 	
      Subject to paragraphs 10.2 and 10.3, the Management
      Committee shall cause the Operator to, and the Operator shall, proceed
      with Construction with all reasonable dispatch after a Production Notice
      has been given. Construction shall be substantially in accordance with the
      Feasibility Report subject to any variations proposed in the Production
      Notice, and subject also to the right of the Management Committee to cause
      such other reasonable variations in Construction to be made as the
      Management Committee, by Special Majority, deems necessary and
      advisable.

	 	 
	14. 	
      OPERATION OF THE MINE

	 	 
	14.1 	
      Commencing on the Completion Date, all Mining Operations
      shall be planned and conducted and all estimates, reports and statements
      shall be prepared and made on the basis of a calendar year.

	 	 
	14.2 	
      With the exception of the year in which the Completion
      Date occurs, an Operating Plan for each calendar year shall be submitted
      by the Operator to the Participants not later than November 1 in the year
      immediately preceding the calendar year to which the Operating Plan
      relates. Each Operating Plan shall contain the
following:

	 	(a) 	
      a description of the proposed Mining
  Operations;

18

	 	(b) 	
      a detailed estimate of all Mine Costs plus a reasonable
      allowance for contingencies;

	 	 	 
	 	(c) 	
      an estimate of the quantity and quality of the ore to be
      mined and the concentrates or metals or other products and by-products to
      be produced; and

	 	 	 
	 	(d) 	
      such other facts as may be necessary to reasonably
      illustrate the results intended to be achieved by the Operating
    Plan.

		
      Upon request of any Participant the Operator shall meet
      with that Participant to discuss the Operating Plan and shall provide such
      additional or supplemental information as that Participant may reasonably
      require with respect thereto.

	 	 
	14.3 	
      The Management Committee shall adopt each Operating Plan,
      with such changes as it deems necessary, by November 30 in the year
      immediately preceding the calendar year to which the Operating Plan
      relates; provided, however, that the Management Committee, by Special
      Majority, may from time to time and any time amend any Operating
    Plan.

	 	 
	14.4 	
      The Operator shall include in the estimate of Mine Costs
      referred to in subparagraph 14.2(b) hereof the establishment of a trust or
      escrow fund providing for the reasonably estimated costs of satisfying
      continuing obligations that may remain after the permanent termination of
      Mining Operations, in excess of amounts actually expended. Such continuing
      obligations are or will be incurred as a result of the Joint Operation and
      shall include such things as monitoring, stabilization, reclamation or
      restoration obligations, severance and other employee benefit costs and
      all other obligations incurred or imposed as a result of the Joint
      Operation which continue or arise after the permanent termination of
      Mining Operations and the termination of this Agreement and settlement of
      all accounts. The payment of such continuing obligations shall be made on
      the basis of units of production, and shall be in amounts reasonably
      estimated to provide over the lifetime of proven and probable reserves
      funds adequate to pay for such reclamation and long term care and
      monitoring. The Participants shall contribute to the trust or escrow fund
      cash (or provide letters of credit or other forms of security readily
      convertible to cash in form approved by the Management Committee). The
      amount contributed from time to time for the satisfaction of such
      continuing obligations shall be classified as Costs hereunder but shall be
      segregated into a separate account.

	 	 
	15. 	
      PAYMENT OF MINE COSTS

	 	 
	15.1 	
      The Operator may invoice each Participant, from time to
      time, for that Participant's Proportionate Share of Construction Costs or
      Operating Costs incurred to the date of the invoice, or not more than 30
      days prior to the beginning of each calendar quarter for an advance equal
      to that Participant's Proportionate Share of the estimated cash
      disbursements to be made during that quarter. Each Participant shall pay
      its Proportionate Share of the Construction Costs or Operating Costs or
      the estimated cash disbursements aforesaid to the Operator within 30 days
      after receipt of the invoice. If the payment or advance requested is not
      so made, the amount of the payment or advance shall bear interest
      calculated monthly not in advance from the 30th day after the date
    of

19

		
      receipt of the invoice thereof by that Participant at a
      rate equivalent to the weighted average Prime Rate for the month plus 4%
      until paid. The Operator shall have a lien on each Participant's Interest
      in order to secure that payment or advance together with interest which
      has accrued thereon.

	 	 	 
	15.2 	
      If any Participant fails to pay an invoice contemplated
      in paragraph 15.1 within the 30-day period aforesaid, the Operator may, by
      notice, demand payment. If no payment is made within 30 days of the
      Operator's demand notice, the Operator may, without limiting its other
      rights at law, enforce the lien created by paragraph 15.1 by taking
      possession of all or any part of that Participant's Interest. The Operator
      may sell and dispose of the Interest which it has so taken into its
      possession by:

	 	 	 
		(a) 	
      first offering that Interest to the other Participants,
      if more than one then in proportion to the respective Interests of the
      Participants who wish to accept that offer, for that price which is the
      fair market value stated in the lower of two appraisals obtained by the
      Operator from independent appraisers competent in the appraisal of mining
      properties; and

	 	 	 
		(b) 	
      if the Participants have not purchased all or part of
      that Interest as aforesaid, then by selling the balance, if any, either in
      whole or in part or in separate parcels at public auction or by private
      tender (the Participants being entitled to bid) at a time and on whatever
      terms the Operator shall arrange, having first given notice to the
      defaulting Participant of the time and place of the sale.

	 	 	 
		
      As a condition of the sale as contemplated in
      subparagraph 15.2(b), the purchaser shall agree to be bound by this
      Agreement and, prior to acquiring the Interest, shall deliver notice to
      that effect to the parties, in form acceptable to the Operator. The
      proceeds of the sale shall be applied by the Operator in payment of the
      amount due from the defaulting Participant and interest as aforesaid, and
      the balance remaining, if any, shall be paid to the defaulting Participant
      after deducting reasonable costs of the sale. Any sale or disposal made as
      aforesaid shall be a perpetual bar both at law and in equity by the
      defaulting Participant and its successors and assigns against all other
      Participants.

	 	 	 
	16. 	
      DISTRIBUTION IN KIND

	 	 	 
	16.1 	
      It is expressly intended that, upon implementation of any
      Production Notice hereunder, the association of the parties hereto shall
      be limited to the efficient production of Minerals from the Property and
      related activities, and that each of the parties shall be entitled to use,
      dispose of or otherwise deal with its Proportionate Share of Minerals as
      it sees fit. Each Participant shall take in kind, f.o.b. truck or railcar
      on the Property, and separately dispose of its Proportionate Share of the
      Minerals produced from the Mine. From the time of delivery, each
      Participant shall have ownership of and title to its Proportionate Share
      of Minerals separate from, and not as tenant in common with, the other
      Participants, and shall bear all risk of loss of Minerals. Extra costs and
      expenses incurred by reason of the Participants taking in kind and making
      separate dispositions shall be paid by each Participant directly and not
      through the Operator or Management Committee.

20

	16.2 	
      Each Participant shall construct, operate and maintain,
      all at its own cost and expense, any and all facilities which may be
      necessary to receive and store and dispose of its Proportionate Share of
      the Minerals at the rate the same are produced.

	 	 	 
	16.3 	
      If a Participant has not made the necessary arrangements
      to take in kind and store its share of production as aforesaid the
      Operator shall, at the sole cost and risk of that Participant store, in
      any location where it will not interfere with Mining Operations, the
      production owned by that Participant. The Operator and the other parties
      shall be under no responsibility with respect thereto. All of the Costs
      involved in arranging and providing storage shall be billed directly to,
      and be the sole responsibility of the Participant whose share of
      production is so stored. The Operator's charges for such assistance and
      any other related matters shall be billed directly to and be the sole
      responsibility of the Participant. All such billings shall be subject to
      the provisions of paragraphs 15.1 and 15.2 hereof.

	 	 	 
	16.4 	
      If any Participant fails to makes the necessary
      arrangements to take in kind or separately dispose of its Proportionate
      Share of the Minerals, the Operator as agent may purchase for its own
      account or sell that share, subject to the right of the Participant owning
      the share to revoke at will the Operator's authority under this paragraph
      in respect of Minerals not then purchased by the Operator or committed for
      sale to others, and the Operator shall be entitled to deduct from the sale
      proceeds all costs of or related to marketing the Mineral as is consistent
      with generally accepted industry marketing practices including, but not
      limited to, transportation, storage, commissions and discounts but all
      contracts of sale executed by the Operator for a Participant's share of
      Minerals shall be only for reasonable periods of time as are consistent
      with the minimum needs of the industry under the circumstances and in no
      event shall any contract be for a period in excess of one year.

	 	 	 
	16.5 	
      Proceeds, if any, from the sale by the Operator of
      Minerals pursuant to paragraph 16.4 shall be calculated by the Operator
      separately for each Participant at the end of each calendar month and
      shall be paid monthly within twenty days after the end of each calendar
      month following payment to the Operator by each Participant of its
      respective share of Costs outstanding as at the end of that calendar
      month.

	 	 	 
	16.6 	
      If the Operator or any person with whom the Operator is
      not dealing at arm's length is a purchaser of Minerals from the Operator,
      and if the value of the Minerals is used to determine any matter arising
      under this paragraph, the Operator shall be required to receive
      competitive prices for all Minerals so sold.

	 	 	 
	17. 	
      SURRENDER OF INTEREST

	 	 	 
	17.1 	
      Any party not in default hereunder may, at any time upon
      notice, surrender its entire Interest to the other parties by giving those
      parties notice of surrender. The notice of surrender shall:

	 	 	 
		(a) 	
      indicate a date for surrender not less than three months
      after the date on which the notice is given;
and

21

	 	(b) 	
      contain an undertaking that the surrendering party
      will:

	 	 	 	 
	 		(i) 	
      satisfy its Proportionate Share, based on its then
      Interest, of all obligations and liabilities which arose at any time prior
      to the date of surrender;

	 	 	 	 
	 		(ii) 	
      if the Operator has not included in Mine Costs the costs
      of continuing obligations as set out in paragraph 14.4 hereof, pay on the
      date of surrender its reasonably estimated Proportionate Share, based on
      the surrendering party's then Interest, of the Costs of rehabilitating the
      Mine site and of reclamation based on the Mining Operations completed as
      at the date of surrender; and

	 	 	 	 
	 		(iii) 	
      will hold in confidence, for a period of two years from
      the date of surrender, all information and data which it acquired pursuant
      to this Agreement.

	17.2 	
      Upon the surrender of its entire Interest as contemplated
      in paragraph 17.1 and upon delivery of a release in writing, in form
      acceptable to counsel for the Operator, releasing the other parties from
      all claims and demands hereunder, the surrendering party shall be relieved
      of all obligations or liabilities hereunder except for those which arose
      or accrued or were accruing due on or before the date of the
    surrender.

	 	 
	17.3 	
      A party to whom a notice of surrender has been given as
      contemplated in paragraph 17.1 may elect, by notice within 90 days to the
      party which first gave the notice to accept the surrender, in which case
      paragraphs 17.1 and 17.2 shall apply, or to join in the surrender. If all
      of the parties join in the surrender the Joint Operation shall be
      terminated in accordance with article 18.

	 	 
	18. 	
      TERMINATION OF MINING OPERATIONS

	 	 
	18.1 	
      The Operator may, at any time subsequent to the
      Completion Date, on at least 30 days notice to all Participants, recommend
      that the Management Committee approve that the Mining Operations be
      suspended. The Operator's recommendation shall include a plan and budget
      (in this article 18 called the "Mine Maintenance Plan"), in
      reasonable detail, of the activities to be performed to maintain the
      Assets and Property during the period of suspension and the Costs to be
      incurred. The Management Committee may, by Special Majority, at any time
      subsequent to the Completion Date, cause the Operator to suspend Mining
      Operations in accordance with the Operator's recommendation with such
      changes to the Mine Maintenance Plan as the Management Committee deems
      necessary. The Participants shall be committed to contribute their
      Proportionate Share of the Costs incurred in connection with the Mine
      Maintenance Plan. The Management Committee, by Special Majority, may cause
      Mining Operations to be resumed at any time.

	 	 
	18.2 	
      The Operator may, at any time following a period of at
      least 90 days during which Mining Operations have been suspended, upon at
      least 30 days notice to all Participants, or in the events described in
      paragraph 18.1, recommend that the Management Committee approve the
      permanent termination of Mining Operations. The
  Operator's

22

		
      recommendation shall include a plan and budget (in this
      article 18 called the "Mine Closure Plan"), in reasonable detail,
      of the activities to be performed to close the Mine and reclaim and
      rehabilitate the Property, as required by applicable law, regulation or
      contract by reason of this Agreement. The Management Committee may, by
      unanimous approval of the representatives of all Participants, approve the
      Operator's recommendation with such changes to the Mine Closure Plan as
      the Management Committee deems necessary.

	 	 	 
	18.3 	
      If the Management Committee approves the Operator's
      recommendation as aforesaid, it shall cause the Operator to:

	 	 	 
		(a) 	
      implement the Mine Closure Plan, whereupon the
      Participants shall be committed to pay, in proportion to their respective
      Interests, such Costs as may be required to implement that Mine Closure
      Plan;

	 	 	 
		(b) 	
      remove, sell and dispose of such Assets as may reasonably
      be removed and disposed of profitably and such other Assets as the
      Operator may be required to remove pursuant to applicable environmental
      and mining laws; and

	 	 	 
		(c) 	
      sell, abandon or otherwise dispose of the Assets and the
      Property.

		
      The disposal price for the Assets and the Property shall
      be the best price reasonably obtainable and the net revenues, if any, from
      the removal and sale shall be credited to the Participants in proportion
      to their respective Interests.

	 	 
	18.4 	
      If the Management Committee does not approve the
      Operator's recommendation contemplated in paragraph 18.2, the Operator
      shall maintain Mining Operations in accordance with the Mine Maintenance
      Plan as pursuant to paragraph 18.1.

	 	 
	19. 	
      THE PROPERTY

	 	 
	19.1 	
      Title to the Property shall be held in the name of the
      Operator in trust for the parties in proportion to their respective
      Interests as adjusted from time to time. Each of the parties shall have
      the right to receive, forthwith upon making demand therefor from the
      Operator, such documents as it may reasonably require to confirm its
      Interest.

	 	 
	19.2 	
      This Agreement, or a memorandum of this Agreement, shall,
      upon the written request of any party, be recorded in the office of any
      governmental agency so requested, in order to give notice to third parties
      of the respective interests of the parties in the Property and this
      Agreement. Each party hereby covenants and agrees with the requesting
      party to execute such documents as may be necessary to perfect such
      recording.

	 	 
	20. 	
      AREA OF COMMON INTEREST

	 	 
	20.1 	
      The area of common interest shall be deemed to comprise
      that area which is included within the outermost boundary of the mineral
      properties which constitute the Property as at the Operative
  Date.

23

	20.2 	
      If at any time during the subsistence of this Agreement
      any party or the Affiliate of any party (in this section only called in
      each case the "Acquiring Party") stakes or otherwise acquires,
      directly or indirectly, any right to or interest in any mining claim,
      licence, lease, grant, concession, permit, patent, or other mineral
      property located wholly or partly within the area of interest referred to
      in subparagraph 20.1, the Acquiring Party shall forthwith give notice to
      the other parties of that staking or acquisition, the total cost thereof
      and all details in the possession of that party with respect to the
      details of the acquisition, the nature of the property and the known
      mineralization.

	 	 
	20.3 	
      The Management Committee (the representative of the
      Acquiring Party not being entitled to vote with respect thereto) may,
      within 30 days of receipt of the Acquiring Party's notice, elect, by
      notice to the Acquiring Party, to require that the mineral properties and
      the right or interest acquired be included in and thereafter form part of
      the Property for all purposes of this Agreement.

	 	 
	20.4 	
      If the election aforesaid is made, all the other parties
      shall reimburse the Acquiring Party for that portion of the cost of
      acquisition which is equivalent to their respective Interests.

	 	 
	20.5 	
      If the Management Committee does not make the election
      aforesaid within that period of 30 days, the right or interest acquired
      shall not form part of the Property and the Acquiring Party shall be
      solely entitled thereto.

	 	 
	20.6 	
      Notwithstanding subparagraph 6.4(e), the Operator shall
      be entitled, at any time and from time to time to surrender all or any
      part of the Property or to permit the same to lapse, but only upon first
      either obtaining the unanimous consent of the Management Committee, or
      giving 60 days notice of its intention to do so to the other parties. In
      this latter event, the parties, other than the Operator, shall be entitled
      to receive from the Operator, on request prior to the date of the
      surrender or lapse, pro rata in accordance with their respective
      Interests, a conveyance of that portion of the Property intended for
      surrender or lapse, together with copies of any plans, assay maps, diamond
      drill records and factual engineering data in the Operator's possession
      and relevant thereto. Any part of the Property so acquired shall cease to
      be subject to this Agreement and shall not be subject to paragraph 20.2.
      Any part of the Property which has not been so acquired by any of the
      parties shall remain subject to paragraph 20.2.

	 	 
	21. 	
      INFORMATION AND DATA

	 	 
	21.1 	
      At all times during the subsistence of this Agreement the
      duly authorized representatives of each Participant shall, at its and
      their sole risk and expense and at reasonable intervals and times, have
      access to the Property and to all technical records and other factual
      engineering data and information relating to the Property which is in the
      possession of the Operator.

	 	 
	21.2 	
      During the Exploration Period while Programs are being
      carried out, the Operator shall furnish the Participants with monthly
      progress reports and with a final report within 60 days following the
      conclusion of each Program. The final report shall show the Mining
      Operations performed and the results obtained and shall be accompanied by
      a statement

24

		
      of Costs and copies of pertinent plans, assay maps,
      diamond drill records and other factual engineering data. During the
      Construction Period and during the implementation of an Operating Plan the
      Operator shall provide monthly progress reports to the Participants, which
      report shall include information on any changes or developments affecting
      the Mine that the Operator considers are material.

	 	 	 
	21.3 	
      All information and data concerning or derived from the
      Mining Operations shall be kept confidential and, except to the extent
      required by law or by regulation of any securities regulatory authority or
      stock exchange, shall not be disclosed to any person other than an
      Affiliate without the prior consent of all the Participants, which consent
      shall not unreasonably be withheld.

	 	 	 
	21.4 	
      The text of any news releases or other public statements
      which a party intends to make with respect to the Property or this
      Agreement shall, to the extent practicable, be made available to the other
      parties prior to publication and the other parties shall have the right to
      make suggestions for changes therein.

	 	 	 
	22. 	
      LIABILITY OF THE OPERATOR

	 	 	 
	22.1 	
      Subject to paragraph 22.2, each party shall indemnify and
      save the Operator harmless from and against any loss, liability, claim,
      demand, damage, expense, injury or death (including, without limiting the
      generality of the foregoing, legal fees) resulting from any acts or
      omissions of the Operator or its officers, employees or agents.

	 	 	 
	22.2 	
      Notwithstanding paragraph 22.1, the Operator shall not be
      indemnified nor held harmless by any of the parties for any loss,
      liability, claim, damage, expense, injury or death, (including, without
      limiting the generality of the foregoing, legal fees) resulting from the
      negligence or willful misconduct of the Operator or its officers,
      employees or agents.

	 	 	 
	22.3 	
      An act or omission of the Operator or its officers,
      employees or agents done or omitted to be done:

	 	 	 
		(a) 	
      at the direction of, or with the concurrence of, the
      Management Committee; or

	 	 	 
		(b) 	
      unilaterally and in good faith by the Operator to protect
      life or property

	 	 	 
		
      shall be deemed not to be negligence or willful
      misconduct.

	 	 	 
	22.4 	
      The obligation of each party to indemnify and save the
      Operator harmless pursuant to paragraph 22.1 shall be in proportion to its
      Interest as at the date that the loss, liability, claim, demand, damage,
      expense, injury or death occurred or arose.

	 	 	 
	22.5 	
      The Operator shall not be liable to any other party nor
      shall any party be liable to the Operator in contract, tort or otherwise
      for special or consequential damages, including, without limiting the
      generality of the foregoing, loss of profits or
revenues.

25

	23. 	
      INSURANCE

	 	 
	23.1 	
      Commencing on the Operative Date, the Management
      Committee shall cause the Operator to place and maintain with a reputable
      insurer or insurers such insurance, if any, as the Management Committee in
      its discretion deems advisable in order to protect the parties together
      with such other insurance as any Participant may by notice reasonably
      request. The Operator shall, upon the written request of any Participant,
      provide it with evidence of that insurance.

	 	 
	23.2 	
      Paragraph 23.1 shall not preclude any party from placing,
      for its own account insurance for greater or other coverage than that
      placed by the Operator.

	 	 
	24. 	
      RELATIONSHIP OF PARTIES

	 	 
	24.1 	
      The rights, duties, obligations and liabilities of the
      parties shall be several and not joint nor joint and several, it being the
      express purpose and intention of the parties that their respective
      Interests shall be held as tenants in common.

	 	 
	24.2 	
      Nothing herein contained shall be construed as creating a
      partnership of any kind or as imposing upon any party any partnership
      duty, obligation or liability to any other party hereto.

	 	 
	24.3 	
      No party shall, except when required by this Agreement or
      by any law, by-law, ordinance, rule, order or regulation, use, suffer or
      permit to be used, directly or indirectly, the name of any other party for
      any purpose related to the Property or this Agreement.

	 	 
	25. 	
      PARTITION

	 	 
	25.1 	
      Each of the parties hereto waives, during the term of
      this Agreement, any right to partition of the Property or the Assets or
      any part thereof and no party shall seek to be entitled to partition of
      the Property or the Assets whether by way of physical partition, judicial
      sale or otherwise during the term of this Agreement.

	 	 
	26. 	
      TAXATION

	 	 
	26.1 	
      All Costs incurred hereunder shall be for the account of
      the party or parties making or incurring the same, if more than one then
      in proportion to their respective Interests, and each party on whose
      behalf any Costs have been incurred shall be entitled to claim all tax
      benefits, write-offs, and deductions with respect thereto.

	 	 
	27. 	
      FORCE MAJEURE

	 	 
	27.1 	
      Notwithstanding anything herein contained to the
      contrary, if any Participant is prevented from or delayed in performing
      any obligation under this Agreement, and such failure is occasioned by any
      cause beyond its reasonable control, excluding only lack of finances,
      then, subject to paragraph 27.2, the time for the observance of the
      condition or performance of the obligation in question shall be extended
      for a period equivalent to the

26

		
      total period the cause of the prevention or delay
      persists or remains in effect regardless of the length of such total
      period.

	 	 
	27.2 	
      Any party hereto claiming suspension of its obligations
      as aforesaid shall promptly notify the other parties to that effect and
      shall take all reasonable steps to remove or remedy the cause and effect
      of the force majeure described in the said notice insofar as it is
      reasonably able so to do and as soon as possible; provided that the terms
      of settlement of any labour disturbance or dispute, strike or lockout
      shall be wholly in the discretion of the party claiming suspension of its
      obligations by reason thereof, and that party shall not be required to
      accede to the demands of its opponents in any such labour disturbance or
      dispute, strike, or lockout solely to remedy or remove the force majeure
      thereby constituted. The party claiming suspension of its obligations
      shall promptly notify the other parties when the cause of the Force
      Majeure has been removed.

	 	 
	27.3 	
      The extension of time for the observance of conditions or
      performance of obligations as a result of force majeure shall not relieve
      the Operator from its obligations to keep the Property in good standing
      pursuant to sub-paragraphs 6.4(a) and 6.4(e).

	 	 
	28. 	
      NOTICE

	 	 
	28.1 	
      All invoices, notices, consents and demands under this
      Agreement shall be in writing and may be delivered personally, transmitted
      by fax (with transmission confirmed in writing), or may be forwarded by
      first class prepaid registered mail to the address for each party
      specified in this Agreement or to such addresses as each party may from
      time to time specify by notice. Any notice delivered or sent by fax shall
      be deemed to have been given and received on the business day next
      following the date of delivery or transmission. Any notice mailed as
      aforesaid shall be deemed to have been given and received on the fifth
      business day following the date it is posted, provided that if between the
      time of mailing and the actual receipt of the notice there shall be a mail
      strike, slowdown or other labour dispute which affects delivery of the
      notice by mails, then the notice shall be effective only if actually
      delivered.

	 	 
	29. 	
      WAIVER

	 	 
	29.1 	
      No waiver of any breach of this Agreement shall be
      binding unless evidenced in writing executed by the party against whom
      charged. Any waiver shall extend only to the particular breach so waived
      and shall not limit any rights with respect to any future
breach.

	 	 
	30. 	
      AMENDMENTS

	 	 
	30.1 	
      Except for those provisions, if any, of the Option
      Agreement specifically incorporated herein by reference, this Agreement
      constitutes the entire agreement between the parties hereto with respect
      to the subject matter hereof. An amendment or variation of this Agreement
      shall only be binding upon a party if evidenced in writing executed by
      that party.

27

	31. 	
      TERM

	 	 	 
	31.1 	
      Unless earlier terminated by agreement of all parties
      having an Interest or as a result of one party acquiring both a 100
      percent Interest and a 100 percent interest in the ** of Net Smelter
      Returns, the Joint Operation and this Agreement shall remain in full force
      and effect for so long as any party has any right, title or interest in
      the Property. Termination of this Agreement shall not, however, relieve
      any party from any obligations theretofore accrued but unsatisfied, nor
      from its obligations with respect to rehabilitation of the Mine site and
      reclamation.

	 	 	 
	32. 	
      TIME OF ESSENCE

	 	 	 
	32.1 	
      Time is of the essence of this Agreement.

	 	 	 
	33. 	
      ASSIGNMENT - RIGHT OF FIRST REFUSAL

	 	 	 
	33.1 	
      If a party (hereinafter in this paragraph referred to as
      the "Owner"):

	 	 	 
		(a) 	
      receives a bona fide offer from a third party (the
      "Proposed Purchaser") dealing at arm's length with the Owner to
      purchase all or any part all of the Owner's Interest or its interest in
      this Agreement (which for certainty shall include the Owner's right to
      receive 1% of Net Smelter Returns, which offer the Owner desires to
      accept; or

	 	 	 
		(b) 	
      If the Owner intends to sell all or any part of its
      Interest or its interest in this Agreement,

the Owner shall first offer (the
"Offer") such interest in writing to the other party upon terms no less
favourable than those offered by the Proposed Purchaser or intended to be
offered by the Owner, as the case may be. The Offer shall specify the price and
terms and conditions of such sale, the name of the Proposed Purchaser (which
term shall, in the case of an intended offer by the Owner, mean the person or
persons to whom the Owner intends to offer its interest) and, if the offer
received by the Owner from the Proposed Purchaser provides for any consideration
payable to the Owner otherwise than in cash, the Offer shall include the Owner's
good faith estimate of the cash equivalent of the non-cash consideration. If
within a period of 60 days of the receipt of the Offer, the other party notifies
the Owner in writing that it will accept the same, the Owner shall be bound to
sell such interest to the other party (subject as hereinafter provided with
respect to price) on the terms and conditions of the Offer. If the Offer so
accepted by the other party contains the Owner's good faith estimate of the cash
equivalent consideration as aforesaid, and if the other party disagrees with the
Owner's best estimate, the other party shall so notify the Owner at the time of
acceptance and the other party shall, in such notice, specify what it considers,
in good faith, the fair cash equivalent to be and the resulting total purchase
price. If the other party so notifies the Owner, the acceptance by the other
party shall be effective and binding upon the Owner and the other party and the
cash equivalent of any such non-cash consideration shall be determined by
binding arbitration under the laws of Québec and shall be payable by the other
party, subject to 

28

		
      prepayment as hereinafter provided, within 60 days
      following its determination by arbitration. The other party shall in such
      case pay to the Owner, against receipt of an absolute transfer of clear
      and unencumbered title to the interest of the Owner being sold, the total
      purchase price which it specified in its notice to the Owner and such
      amount shall be credited to the amount determined following arbitration of
      the cash equivalent of any non-cash consideration. If the other party
      fails to notify the Owner before the expiration of the time limited
      therefor that it will purchase the interest offered, the Owner may sell
      and transfer such interest at the price and on the terms and conditions
      specified in the Offer for a period of 60 days, provided that the terms of
      this paragraph shall again apply to such interest if the sale is not
      completed within the said 60 days. Any sale hereunder shall be conditional
      upon the Proposed Purchaser delivering a written undertaking to the other
      party, in form and content satisfactory to its counsel, to be bound by the
      terms and conditions of this Agreement.

	 	 
	34. 	
      SUCCESSORS AND ASSIGNS

	 	 
	34.1 	
      This Agreement shall enure to the benefit of and be
      binding upon the parties hereto and their respective successors and
      permitted assigns.

	 	 
	35. 	
      GOVERNING LAW

	 	 
	35.1 	
      This Agreement shall be governed by and interpreted in
      accordance with the laws of the Province of British
  Columbia.

IN WITNESS WHEREOF the parties hereto have executed this
agreement as of the day and year first above written. 

	TAC GOLD CORPORATION 	  
	 	 
	By: 	c/s 
	  	  
	(Authorized Signatory) 	  
	 	 
	ALL AMERICAN GOLD CORP. 	  
	 	 
	By: 	c/s 
	  	  
	(Authorized Signatory) 	  

THIS IS APPENDIX 1 TO THAT CERTAIN JOINT VENTURE AGREEMENT
(THE 
"AGREEMENT") BETWEEN ______________AND ______________MADE AS OF

THE ____ DAY OF ___________, _______. 

ACCOUNTING PROCEDURE 

	1. 	
      INTERPRETATION

	 	 	 
	1.1 	
      Terms defined in the Agreement shall, subject to any
      contrary intention, have the same meanings herein. In this Schedule the
      following words, phrases and expressions shall have the following
      meanings:

	 	 	 
		(a) 	
      “Employee” means those employees of the Operator
      who are assigned to and directly engaged in the conduct of Mining
      Operations, whether on a full-time or part-time basis.

	 	 	 
		(b) 	
      “Employee Benefits” means the Operator's cost of
      holiday, vacation, sickness, disability benefits, field bonuses, amounts
      paid to and the Operator's costs of established plans for employee's group
      life insurance, hospitalisation, pension, retirement and other customary
      plans maintained for the benefit of Employees and Personnel, as the case
      may be, which costs may be charged as a percentage assessment on the
      salaries and wages of Employees or Personnel, as the case may be, on a
      basis consistent with the Operator's cost experience.

	 	 	 
		(c) 	
      “Field Offices” means the necessary sub-office or
      sub-offices in each place where a Program is being conducted.

	 	 	 
		(d) 	
      “Government Contributions” means the cost or
      contributions made by the Operator pursuant to assessments imposed by
      governmental authority which are applicable to the salaries or wages of
      Employees or Personnel, as the case may be.

	 	 	 
		(e) 	
      “JV Account” means the books of account maintained
      by the Operator to record all assets, liabilities, costs, expenses,
      credits and other transactions arising out of or in connection with the
      Mining Operations.

	 	 	 
		(f) 	
      “Material” means the personal property, equipment
      and supplies acquired or held, at the direction or with the approval of
      the Optionee, for use in the Mining Operations and, without limiting the
      generality, more particularly “Controllable Material” means such
      Material which is ordinarily classified as Controllable Material, as that
      classification is determined or approved by the Optionee, and controlled
      in mining operations.

	 	 	 
		(g) 	
      “Personnel” means those management, supervisory,
      administrative, clerical or other personnel of the Operator normally
      associated with the Supervision Offices whose salaries and wages are
      charged directly to the Supervision Office in
question.

2

	 	(h) 	
      “Reasonable Expenses” means the reasonable
      expenses of Employees or Personnel, as the case may be, for which those
      Employees or Personnel may be reimbursed under the Operator's usual
      expense account practice, as accepted by the Optionee; including but not
      limited to, any relocation expenses necessarily incurred in order to
      properly staff the Mining Operations if the relocation is approved by the
      Optionee.

	 	 	 
	 	(i) 	
      “Supervision Offices” means the Operator's offices
      or department within the Operator's offices from which the Mining
      Operations are generally supervised.

	2. 	
      STATEMENTS AND BILLINGS

	 	 	 
	2.1 	
      The Operator shall, by invoice, charge for Costs in the
      manner provided in the Agreement.

	 	 	 
	2.2 	
      The Operator shall deliver, with each invoice rendered
      for Costs incurred a statement indicating:

	 	 	 
		(a) 	
      all charges or credits to the JV Account relating to
      Controllable Material ; and

	 	 	 
		(b) 	
      all other charges and credits to the JV Account
      summarised by appropriate classification indicative of the nature of the
      charges and credits.

	 	 	 
	2.3 	
      The Operator shall deliver with each invoice for an
      advance of Costs a statement indicating:

	 	 	 
		(a) 	
      the estimated Costs to be incurred during the next
      succeeding three months;

	 	 	 
		(b) 	
      the addition thereto or subtraction therefrom, as the
      case may be, made in respect of Costs actually having been incurred in an
      amount greater or lesser than the advance which was made by each of the
      Optionor and the Optionee for the penultimate month preceding the month of
      the invoice; and

	 	 	 
		(c) 	
      the advances made by the Optionor and the Optionee to
      date and the Costs incurred to the end of the penultimate month preceding
      the month of the invoice.

	 	 	 
	3. 	
      DIRECT CHARGES

	 	 	 
	3.1 	
      The Operator shall charge the JV Account with the
      following items:

	 	 	 
		(a) 	
      Contractor's Charges:

	 	 	 
			
      All costs directly relating to the Mining Operations
      incurred under contracts entered into by the Operator with third
      parties.

3

	 	(b) 	
      Labour Charges:

	 	 	 	 
	 		(i) 	
      The salaries and wages of Employees in an amount
      calculated by taking the monthly salary or wage of each Employee
      multiplied by that fraction which has as its numerator the total time for
      the month that the Employees were directly engaged in the conduct of
      Mining Operations and as its denominator the total normal working time for
      the month of the Employee;

	 	 	 	 
	 		(ii) 	
      the Reasonable Expenses of the Employees; and

	 	 	 	 
	 		(iii) 	
      Employee Benefits and Government Contributions in respect
      of the Employees in an amount proportionate to the charge made to the JV
      Account in respect to their salaries and
wages.

	 	(c) 	
      Office Maintenance:

	 	 	 	 
	 		(i) 	
      The cost or a pro rata portion of the costs, as the case
      may be, of maintaining and operating the Field Offices and the Supervision
      Offices. The basis for charging the JV Account for such maintenance costs
      shall be as follows:

	 	A. 	
      the expense of maintaining and operating Field Offices,
      less any revenue therefrom; and

	 	 	 	 
	 	B. 	
      that portion of maintaining and operating the Supervision
      Offices which is equal to

	 	 	 	 
	 		1. 	
      the anticipated total operating expenses of the
      Supervision Offices

	 	 	 	 
	 			
      divided by

	 	 	 	 
	 		2. 	
      the anticipated total staff man days for the Employees
      whether in connection with the Mining Operations or not;

	 	 	 	 
	 			
      multiplied by

	 	 	 	 
	 		3. 	
      the actual total time spent on the Mining Operations by
      the Employee expressed in man days.

	 	(ii) 	
      Without limiting generality, the anticipated total
      operating expenses of the Supervision Offices shall include:

	 	 	 	 
	 		A. 	
      the salaries and wages of the Operator's Personnel which
      have been directly charged to the Supervision Offices;

	 	 	 	 
	 		B. 	
      the Reasonable Expense of the Personnel;
  and

4

	 	C. 	
      Employee Benefits.

	 	(iii) 	
      The Operator shall make an adjustment in respect of the
      Office Maintenance cost forthwith after the end of each Operating Year
      upon having determined the actual operating expenses and actual total
      staff man days referred to in clause 3.1(c)(i)B of this Appendix
  1.

	 	(d) 	
      Material:

	 	 	 	 
	 		
      Material purchased or furnished by the Operator for use
      on the Property as provided under section 4 of this Appendix 1.

	 	 	 	 
	 	(e) 	
      Transportation Charges:

	 	 	 	 
	 		
      The cost of transporting Employees and Material necessary
      for the Mining Operations.

	 	 	 	 
	 	(f) 	
      Service Charges:

	 	 	 	 
	 		(i) 	
      The cost of services and utilities procured from outside
      sources other than services covered by Section 3.1(h); and

	 	 	 	 
	 		(ii) 	
      Use and service of equipment and facilities furnished by
      the Operator as provided in Section 4.3 of this Appendix 1.

	 	 	 	 
	 	(g) 	
      Damages and Losses to Joint Property:

	 	 	 	 
	 		
      All costs necessary for the repair or replacement of
      Assets made necessary because of damages or losses by fire, flood, storms,
      theft, accident or other cause. If the damage or loss is estimated by the
      Operator to exceed $10,000, the Operator shall furnish each Participant
      with written particulars of the damages or losses incurred as soon as
      practicable after the damage or loss has been discovered. The proceeds, if
      any, received on claims against any policies of insurance in respect of
      those damages or losses shall be credited to the JV Account.

	 	 	 	 
	 	(h) 	
      Legal Expense:

	 	 	 	 
	 		
      All costs of handling, investigating and settling
      litigation or recovering the Assets, including, but not limited to,
      attorney's fees, court costs, costs of investigation or procuring evidence
      and amounts paid in settlement or satisfaction of any litigation or
      claims; provided, however, that, unless otherwise approved in advance by
      the Management Committee, no charge shall be made for the services of the
      Operator's legal staff or the fees and expenses of outside
    solicitors.

5

	 	(i) 	
      Taxes:

	 	 	 	 
	 		
      All taxes, duties or assessments of every kind and nature
      (except income taxes) assessed or levied upon or in connection with the
      Property, the Mining Operations thereon, or the production therefrom,
      which have been paid by the Operator for the benefit of the
  parties.

	 	 	 	 
	 	(j) 	
      Insurance:

	 	 	 	 
	 		
      Net premiums paid for

	 	 	 	 
	 		(i) 	
      such policies of insurance on or in connection with
      Mining Operations as may be required to be carried by law; and

	 	 	 	 
	 		(ii) 	
      such other policies of insurance as the Operator may
      carry for the protection of the parties in accordance with the Agreement;
      and

	 	 	 	 
	 		
      the applicable deductibles in event of an insured
      loss.

	 	 	 	 
	 	(k) 	
      Rentals:

	 	 	 	 
	 		
      Fees, rentals and other similar charges required to be
      paid for acquiring, recording and maintaining permits, mineral claims and
      mining leases and rentals and royalties which are paid as a consequence of
      the Mining Operations.

	 	 	 	 
	 	(l) 	
      Permits:

	 	 	 	 
	 		
      Permit costs, fees and other similar charges which are
      assessed by various governmental agencies.

	 	 	 	 
	 	(m) 	
      Other Expenditures:

	 	 	 	 
	 		
      Such other reasonable costs and expenses which are not
      covered or dealt with in the foregoing provisions of this subsection 3.1
      of this Appendix 1 as are incurred with the approval of the Management
      Committee for Mining Operations or as may be contemplated in the
      Agreement.

	4. 	
      PURCHASE OF MATERIAL

	 	 
	4.1 	
      Subject to subsection 4.3 of this Appendix 1, the
      Operator may purchase all Materials and procure all services required to
      conduct the Programs that have been approved by the Management
      Committee.

	 	 
	4.2 	
      Materials purchased and services procured by the Operator
      directly for the Programs shall be charged to the JV Account at the price
      paid by the Operator less all discounts actually
  received.

6

	4.3 	
      Notwithstanding the foregoing provisions of this section
      4, the Operator, after having obtained the prior approval of the
      Management Committee, shall be entitled to supply for use in connection
      with the Programs equipment and facilities which are owned by the Operator
      and to charge the JV Account with such reasonable costs as are
      commensurate with the ownership and use thereof.

	 	 
	5. 	
      DISPOSAL OF MATERIAL

	 	 
	5.1 	
      The Operator, with the approval of the Optionee may, from
      time to time, and shall upon termination of the Agreement, sell any
      Material which has become surplus to the foreseeable needs of the Mining
      Operations for the best price and upon the most favourable terms and
      conditions available.

	 	 
	5.2 	
      The net revenues received from the sale of any Material
      to third parties or to a Participant shall be credited to the JV
      Account.

	 	 
	6. 	
      MATERIALS

	 	 
	6.1 	
      The Operator shall maintain records of Material in
      reasonable detail and records of Controllable Material in
detail.

	 	 
	7. 	
      ADJUSTMENTS

	 	 
	7.1 	
      Payment of any invoice by a Participant shall not
      prejudice the right of that Participant to protest the correctness of the
      statement supporting the payment; provided, however, that all invoices and
      statements presented to the Participants by the Operator during any
      calendar year shall conclusively be presumed to be true and correct upon
      the expiration of 3 months following the end of the calendar year to which
      the invoice or statement relates, unless within that 3 month period a
      Participant gives notice to the Operator making claim on the Operator for
      an adjustment to the invoice or statement.

	 	 
	7.2 	
      The Operator shall not adjust any invoice or statement in
      favour of itself after the expiration of 3 months following the end of the
      calendar year to which the invoice or statement relates.

	 	 
	7.3 	
      Each Participant shall be entitled upon notice to the
      Operator to request that the independent external auditor of the Operator
      provide the Participants with its opinion that any invoice or statement
      delivered pursuant to the Agreement in respect of the period referred to
      in subsection 7.1 of this Appendix 1 has been prepared in accordance with
      this Agreement.

	 	 
	7.4 	
      The time for giving the audit opinion contemplated in
      subsection 7.3 of this Appendix 1 shall not extend the time for the taking
      of exception to and making claims on the Operator for adjustment as
      provided in subsection 7.1 of this Appendix 1.

	 	 
	7.5 	
      The cost of the auditor's opinion referred to in
      subsection 7.3 of this Appendix 1 shall be solely for the account of the
      Participant requesting it unless the audit disclosed a
  material

7

error adverse to such Participant, in
which case the cost shall be solely for the account of the Operator. 

THIS IS APPENDIX 2 TO THAT CERTAIN JOINT VENTURE AGREEMENT
(THE 
"AGREEMENT") BETWEEN ______________AND ______________MADE AS OF

THE ____ DAY OF ___________, _______. 

NET SMELTER RETURNS 

	1. 	
      OBLIGATION

	 	 	 
	1.1 	
      If any non-Participant becomes entitled to a royalty
      pursuant to paragraph 7.10, each Participant shall separately calculate,
      as at the end of each calendar quarter subsequent to the Completion Date,
      the Net Smelter Returns.

	 	 	 
	1.2 	
      Each Participant shall within 60 days of the end of each
      calendar quarter, as and when any Net Smelter Returns are available for
      distribution:

	 	 	 
		(a) 	
      severally pay or cause to be paid to each non-Participant
      that percentage of the Net Smelter Returns to which that non-Participant
      is entitled under paragraph 7.10 of the Agreement;

	 	 	 
		(b) 	
      deliver to each non-Participant a statement indicating
      the amount of Net Smelter Returns to which that non-Participant is
      entitled;

	 	 	 
	1.3 	
      Nothing contained in the Agreement or this Appendix 2
      shall be construed as:

	 	 	 
		(a) 	
      imposing on a Participant any obligation with respect to
      the payments of royalty due hereunder to a non-Participant from any other
      Participant; or

	 	 	 
		(b) 	
      conferring on any non-Participant any right to or
      interest in any Property or Assets except the right to receive royalty
      payments from each Participant as and when due.

	 	 	 
	1.4 	
      The Participants agree that on the request of any
      non-Participant they will execute and deliver such documents as may be
      necessary to permit that non-Participant to record its royalty right
      against the Property.

	 	 	 
	1.5 	
      The Optionor and the Optionee shall be subject to, and
      obligated to make the payments required by, the Minquest NSR Royalty, all
      such obligations to be shared pro rata basis (based on the percentage
      interests determined by Section 7.09 of this Agreement as the basis for
      the starting percentage interests).

	 	 	 
	2. 	
      NET SMELTER RETURNS

	 	 	 
	2.1 	
      “Net Smelter Returns” means the amount paid or
      credited by a smelter or other buyer in respect of the sale of ore, ore
      concentrates, minerals and metals from the Property after deduction of the
      sum of:

	 	(a) 	
      smelter and/or refining
charges;

2

	 	(b) 	
      government imposed production and value-added taxes
      (excluding taxes on income);

	 	 	 
	 	(c) 	
      ore treatment charges, penalties and any and all charges
      made by the purchaser of ore or concentrates; and

	 	 	 
	 	(d) 	
      all transportation and insurance costs which may be
      incurred in connection with the transportation of ore or
    concentrates.

	2.2 	
      Payment of Net Smelter Returns by the Participant to the
      non-Participant shall be made quarterly within 45 days after the end of
      each fiscal quarter of the Participant and shall be accompanied by
      unaudited financial statements pertaining to the operations carried out on
      the Property. Within 90 days after the end of each fiscal year of the
      Participant in which Net Smelter Returns are payable to the
      non-Participant, the records relating to the calculation of Net Smelter
      Returns for such year shall be audited by the Participant’s external
      independent auditor and any resulting adjustments in the payment of Net
      Smelter Returns payable to the non-Participant shall be made forthwith. A
      copy of the said auditor's report and accompanying financial information
      shall be delivered to the non- Participant within 30 days of the end of
      such 90-day period.

	 	 
	2.3 	
      Each annual audit shall be final and not subject to
      adjustment unless the non-Participant delivers to the Participant written
      exceptions in reasonable detail within six months after the
      non-Participant receives the report. The non-Participant, or its
      representative duly authorized in writing, at its expense, shall have the
      right to audit the books and records of the Participant related to Net
      Smelter Returns to determine the accuracy of the report, but shall not
      have access to any other books and records of the Participant. The audit
      shall be conducted by a chartered or certified public accountant of
      recognized standing. The Participant shall have the right to condition
      access to its books and records on execution of a written agreement by the
      auditor that all information will be held in confidence and used solely
      for purposes of audit and resolution of any disputes related to the
      report. A copy of the non-Participant's report shall be delivered to the
      Participant upon completion, and any discrepancy between the amount
      actually paid by the Participant and the amount which should have been
      paid according to the non-Participant's report shall be paid forthwith,
      one party to the other. In the event that the said discrepancy is to the
      detriment of the non-Participant and exceeds 5% of the amount actually
      paid by the Participant, then the Participant shall pay the entire cost of
      the audit.

	 	 
	2.4 	
      No error in accounting or in interpretation of the
      Agreement shall be the basis for a claim of breach of fiduciary duty, or
      the like, or give rise to a claim for exemplary or punitive damages or for
      termination or rescission of the Agreement or the estate and rights
      acquired and held by the Participant under the terms of the
    Agreement.

THIS IS APPENDIX 3 TO THAT CERTAIN JOINT VENTURE AGREEMENT
(THE 
"AGREEMENT") BETWEEN ______________AND ______________MADE AS OF

THE ____ DAY OF ___________, _______. 

NET PROCEEDS OF PRODUCTION 

	1. 	
      OBLIGATION

	 	 	 	 
	1.1 	
      If any non-Participant becomes entitled to a royalty
      pursuant to paragraph subparagraph 10.2(b) of the Agreement, each
      Participant shall separately calculate, as at the end of each calendar
      quarter subsequent to the Completion Date, the Net Proceeds of
      Production.

	 	 	 	 
	1.2 	
      Each Participant shall within 60 days of the end of each
      calendar quarter, as and when any Net Proceeds of Production are available
      for distribution:

	 	 	 	 
		(a) 	
      severally pay or cause to be paid to each non-Participant
      that percentage of the Net Proceeds of Production to which that
      non-Participant is entitled under subparagraph 10.2(b) of the
      Agreement;

	 	 	 	 
		(b) 	
      deliver to each non-Participant a statement
      indicating:

	 	 	 	 
			(i) 	
      the Gross Receipts during the calendar quarter;

	 	 	 	 
			(ii) 	
      the deductions therefrom made in the order itemized in
      subsection 3.1 of this Appendix 3;

	 	 	 	 
			(iii) 	
      the amount of Net Proceeds of Production remaining;
      and

	 	 	 	 
			(iv) 	
      the amount of those Net Proceeds of Production to which
      that non- Participant is entitled;

		
      provided, however, that until such time as there are Net
      Proceeds of Production available, each Participant shall deliver to each
      non-Participant, within 60 days of the end of each calendar quarter
      commencing with the first calendar quarter following the Completion Date,
      a statement indicating the Gross Receipts during the calendar quarter less
      the deductions therefrom made in the order itemized in subsection 3.1 of
      this Appendix 3.

	 	 	 
	1.3 	
      Nothing contained in the Agreement or this Appendix 3
      shall be construed as:

	 	 	 
		(a) 	
      imposing on a Participant any obligation with respect to
      the payments of royalty due hereunder to a non-Participant from any other
      Participant; or

	 	 	 
		(b) 	
      conferring on any non-Participant any right to or
      interest in any Property or Assets except the right to receive royalty
      payments from each Participant as and when
due.

- 2 - 

	1.4 	
      The Participants agree that on the request of any
      non-Participant they will execute and deliver such documents as may be
      necessary to permit that non-Participant to record its royalty right
      against the Property.

	 	 	 	 
	2. 	
      DEFINITIONS

	 	 	 	 
	2.1 	
      Terms defined in the Agreement shall, subject to any
      contrary intention, bear the same meaning herein.

	 	 	 	 
	2.2 	
      In addition to the definitions of the classes of Costs
      provided in paragraph 1.1(g) of the Agreement and without limiting the
      generality thereof:

	 	 	 	 
		(a) 	
      "Distribution Costs" means all costs of:

	 	 	 	 
			(i) 	
      transporting ore or concentrates from a Mine or a
      concentrating plant to a smelter, refinery or other place of delivery
      designated by the purchaser and, in the case of concentrates tolled, of
      transporting the concentrate or metal from a smelter or refinery to the
      place of delivery designated by the purchaser;

	 	 	 	 
			(ii) 	
      handling, warehousing and insuring the concentrates and
      metal; and

	 	 	 	 
			(iii) 	
      in the case of concentrates tolled, of smelting and
      refining, including any penalties thereon or in connection
    therewith.

	 	(b) 	
      "Interest Costs" means interest computed each
      calendar quarter and calculated as follows:

	 	 	 	 
	 		(i) 	
      the average of the opening and closing monthly
      outstanding balances for each month during the quarter of the net
      unrecovered amounts of all costs in the classes enumerated in
      subparagraphs 1.1(g)(i), (ii), (iv) and (v) of the Agreement, and in
      paragraphs 2.2 (a), (b), (c) and (d) of this Appendix 3;

	 	 	 	 
	 			
      multiplied by:

	 	 	 	 
	 		(ii) 	
      the Prime Rate plus two percent;

	 	 	 	 
	 			
      multiplied by:

	 	 	 	 
	 		(iii) 	
      the number of days in the quarter;

	 	 	 	 
	 			
      divided by:

	 	 	 	 
	 		(iv) 	
      the number of days in the Year;

	 	 	 	 
	 	(c) 	
      "Marketing Costs" means such reasonable charge for
      marketing of diamonds, ores and concentrates sold or of concentrates
      tolled as is consistent with generally

- 3 - 

	 		
      accepted industry marketing practices including, without
      limitation, costs of market analysis, preparation of diamonds for sale,
      collection of sale proceeds and the costs of all associated activities;
      and

	 	 	 
	 	(d) 	
      "Taxes and Royalties" means all taxes (other than
      income taxes), royalties or other charges or imposts provided for pursuant
      to any law or legal obligation imposed by any government in connection
      with a Participant's involvement in the Joint Operation if paid by the
      Participant.

	2.3 	
      Wherever used in this Appendix 3, "Gross Receipts"
      means the aggregate of all receipts, recoveries or amounts received by
      or credited to a Participant in connection with its participation under
      the Agreement including, without limiting the generality of the
      foregoing:

	 	 	 
		(a) 	
      the receipts from the sale of that Participant's
      proportionate share of the concentrates derived from the Mineral produced
      from the Mine;

	 	 	 
		(b) 	
      all proceeds received from the sale of the Property or
      Assets subsequent to the Operative Date;

	 	 	 
		(c) 	
      all insurance recoveries (including amounts received to
      settle claims) in respect of loss of, or damage to any portion of the
      Property or Assets subsequent to the Operative Date;

	 	 	 
		(d) 	
      all amounts received as compensation for the
      expropriation or forceable taking of any portion of the Property or Assets
      subsequent to the Operative Date;

	 	 	 
		(e) 	
      the fair market value, at the Property, of those Assets,
      if any, purchased for the Joint Account, that are transferred from the
      Property for use by a Participant elsewhere subsequent to the Operative
      Date; and

	 	 	 
		(f) 	
      the amount of any negative balance remaining after the
      reallocation of negative balances pursuant to subsection 3.3 of this
      Appendix 3;

		
      to the extent that those receipts, recoveries or amounts
      have not been applied by the Participant as a recovery of any of the
      classes of Costs itemized in subsection 3.1 of this Appendix 3.

	 	 	 
	3. 	
      NET PROCEEDS OF PRODUCTION

	 	 	 
	3.1 	
      "Net Proceeds of Production" means the Gross
      Receipts minus deductions therefrom, to the extent of but not exceeding
      the amount of those Gross Receipts, of the then net unrecovered amounts of
      the following classes of Costs made in the following itemized
  order:

	 	 	 
		(a) 	
      Marketing Costs;

	 	 	 
		(b) 	
      Distribution Costs;

- 4 - 

	 	(c) 	
      Operating Costs;

	 	 	 
	 	(d) 	
      Taxes and Royalties;

	 	 	 
	 	(e) 	
      Interest Costs;

	 	 	 
	 	(f) 	
      Construction Costs;

	 	 	 
	 	(g) 	
      Exploration Costs; and

	 	 	 
	 	(h) 	
      Prior Exploration Costs;

		
      it being understood that the deductions in respect of the
      Costs referred to in paragraphs 3.1(a), (b), (d) and (e) of this Appendix
      3 shall be based on those Costs as recorded by that Participant and the
      deductions in respect of the Costs referred to in paragraphs 3.1(c), (f),
      (g) and (h) of this Appendix 3 shall be based on that Participant's
      Proportionate Share of those Costs as recorded by the Operator.

	 	 
	3.2 	
      Any amount by which the aggregate of the Costs set out in
      paragraphs 3.1(a) to (h) inclusive in any quarter exceeds Gross Receipts
      for such quarter shall, together with any negative balance carried forward
      from the previous quarter, be carried forward for deduction from Gross
      Receipts in the immediately succeeding quarter.

	 	 
	4. 	
      ADJUSTMENTS AND VERIFICATION

	 	 
	4.1 	
      Payment of any Net Proceeds of Production by a
      Participant shall not prejudice the right of that Participant to adjust
      its own statement supporting the payment; provided, however, that all
      statements presented to the non-Participant by that Participant for any
      quarter shall conclusively be presumed to be true and correct upon the
      expiration of 12 months following the end of the quarter to which the
      statement relates, unless within that 12 month period that Participant
      gives notice to the non-Participant making claim on the non-Participant
      for an adjustment to the statement which will be reflected in subsequent
      payment of Net Proceeds of Production.

	 	 
	4.2 	
      The Participant shall not adjust any statement in favour
      of itself after the expiration of 12 months following the end of the
      quarter to which the statement relates.

	 	 
	4.3 	
      The non-Participant shall be entitled upon notice to any
      Participant to request that the auditor of that Participant provide the
      non-Participant with its opinion that any statement delivered pursuant to
      subsection 1.1 of this Appendix 3 in respect of any quarterly period
      falling within the 12 month period immediately preceding the date of the
      non- Participant's notice has been prepared in accordance with this
      Agreement.

	 	 
	4.4 	
      The time for giving the audit opinion contemplated in
      subsection 4.3 of this Appendix 3 shall not extend the time for the taking
      of exception to and making claim on the non- Participant for adjustment as
      provided in subsection 4.1 of this Appendix 3.

- 5 - 

	4.5 	
      The cost of the auditor's opinion referred to in
      subsection 4.3 of this Appendix 3 shall be solely for the account of the
      non-Participant requesting the auditor's opinion, except where the said
      opinion is to the effect that the statement has not been prepared
      substantially in accordance with this Agreement, in which case the cost
      shall be solely for the account of the
Participant.All American Gold Corp.: Exhibit 10.03 - Filed by newsfilecorp.com

AMENDMENT TO MINERAL PROPERTY OPTION AGREEMENT 

This Agreement is made effective as of April 6, 2011 and is
Between: 

MINQUEST INC., a company having
an office at 4235 Christy Way, Reno, 
Nevada, 89509, USA 

(the “Optionor”) 

And: 

TAC GOLD CORPORATION, an
incorporated company with offices at 203-
2780 Granville Street, Vancouver,
BC, Canada

(the “Optionee”) 

WHEREAS: 

	A. 	
      The Optionor and the Optionee entered into a mineral
      property option agreement (the “Option Agreement”) made as of the 6th
      day of April, 2010.

	 	 
	B. 	
      The Optionor and the Optionee are entering into this
      Amendment Agreement in order to clarify some of the provisions of the
      Option Agreement and to amend some of the provisions of the Option
      Agreement, as hereinafter set forth.

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the premises, the sum of $10 now paid by the Optionee to the
Optionor, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows: 

	1. 	
      The parties agree that the Effective Date referred to in
      the Option Agreement is April 6, 2010.

	 	 
	2. 	
      The parties agree that the definition of “Property” in
      Section 1.1(a) is amended by deleting the reference to “Schedule A” and
      substituting therefor “Exhibit A”, and that the attachment to the Option
      Agreement titled “Exhibit A” that refers to Sections 22-27, 35 & 36,
      T23N, R44E & Sections 19, 30 & 31, T23N, R45E, Lander County,
      Nevada MDB&M and lists Claim Names, Claimant’s Names and NMC Numbers
      is the description of mineral interests referred to in the
    definition.

	 	 
	3. 	
      The parties agree that the periods of time during which
      the Optionee is to incur Exploration Expenditures pursuant to Section
      4.2(e) of the Option Agreement shall each be extended for a period of one
      year and accordingly clauses (i) through (vii) of Section 4.2(e) are
      deleted and the following are substituted
therefor:

- 2 - 

“(i) $200,000 on or before the second
anniversary of the Effective Date; 

(ii) an additional $200,000 on or
before the third anniversary of the Effective Date;

(iii) an additional $250,000 on or
before the fourth anniversary of the Effective Date; 

(iv) an additional $300,000 on or
before the fifth anniversary of the Effective Date; 

(v) an additional $350,000 on or
before the sixth anniversary of the Effective Date; 

(vi) an additional $400,000 on or
before the seventh anniversary of the Effective Date; 

(vii) an additional $500,000 on or
before the eighth anniversary of the Effective Date.” 

	4. 	
      The Option Agreement as amended by this Agreement is
      hereby confirmed.

	 	 
	5. 	
      This Agreement may be executed in counterparts and
      delivered by electronic transmission.

The parties have executed this Agreement with the intention of
being legally bound. 

MINQUEST INC., 

By: 

	 	 
	Authorized Signatory 	 

TAC GOLD CORPORATION 

By: 

	 	 
	Authorized Signatory

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