Document:

DEBENTURE PURCHASE AGREEMENT

         THIS DEBENTURE PURCHASE AGREEMENT (this "AGREEMENT") is made as of
December 15, 2005, by and between Chief Consolidated Mining Company, an
Arizona corporation ("COMPANY"), and Dimeling, Schreiber & Park Reorganization
Fund II, L.P., a Pennsylvania limited partnership ("PURCHASER").

                                   BACKGROUND

          Purchaser desires to invest an aggregate of Two Million Five Hundred
Thousand Dollars ($2,500,000) in Company in exchange for a convertible debenture
as described in this Agreement and on the terms set forth in this Agreement.

          NOW, THEREFORE, in consideration of the premises and mutual promises
and covenants contained herein and for other good and valuable consideration,
and intending to be legally bound hereby, the parties hereby agree as follows.

                                    ARTICLE I

                        PURCHASE OF DEBENTURE AND WARRANT

          1.1 Sale and Purchase of the Debenture. Upon and subject to the
conditions of this Agreement, Company hereby agrees to sell and issue to
Purchaser and Purchaser hereby agrees to acquire from Company, at the Closing
(as defined below), a convertible debenture, in substantially the form attached
hereto as Exhibit A (the "DEBENTURE"), in the aggregate principal amount of Two
Million Five Hundred Thousand Dollars ($2,500,000) (the "PURCHASE PRICE").

          1.2 Certain Terms of the Debenture

               (a) The Debenture shall bear interest at the rate of eight
percent (8%) per annum, which shall accrue while the Debenture is outstanding
and shall be due and payable at the time of Conversion (as defined below) in
either cash or additional shares of Company's Common Stock, par value $0.50,
(the "COMMON STOCK"), at the sole discretion of Company.

               (b) The Debenture shall be convertible into shares of Common
Stock at the rate of four thousand (4,000) shares for each One Thousand Dollars
($1,000) in principal amount of the Debenture (the "CONVERSION"). The Conversion
shall occur automatically upon the adoption of the Charter Amendment (defined
below) by the requisite percentage of shareholders of the Company.

          1.3 Closing.

               (a) Place and Time. The closing (the "CLOSING") in connection
with this Agreement shall take place in the offices of Pepper Hamilton LLP,
Philadelphia PA, or at such other place as agreed upon by Company and Purchaser,
on December 15, 2005, or at such other date (the "CLOSING DATE") as mutually
agreed by the parties hereto in writing.

               (b) Deliveries by Company. At the Closing, Company shall deliver
following to Purchaser:

                    (i) A fully executed copy of this Agreement;

                                      -1-

                    (ii) A fully executed copy of the Debenture;

                    (iii) A certificate confirming the good standing of Company
as of recent date prior to the Closing issued by the Secretary of State of the
State of Arizona; and

                    (iv) such other documents, instruments and writings as
Purchaser may reasonably require.

               (c) Deliveries by Purchaser. At the Closing, Purchaser shall
deliver following to Company:

                    (i) A fully executed copy of this Agreement;

                    (ii) A wire transfer in the amount of Two Million Five
Hundred Thousand Dollars ($2,500,000); and

                    (iii) such other documents, instruments and writings as
Company may reasonably require.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

          2.1 Representations and Warranties of Company. Company hereby
represents and warrants to Purchaser as follows:

               (a) Organization and Good Standing. Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Arizona and has all requisite corporate power and corporate authority to carry
on its business as now conducted and as proposed to be conducted.

         (b) Capitalization. The authorized capitalization of Company consists
of 50,000,000 shares of Common Stock. Except as disclosed in public filings
with the United States Securities and Exchange Commission (the "SEC") or as
contemplated hereby, there are no options, warrants, rights (including rights of
first refusal or any preemptive rights), proxy or stockholders agreements or
agreements of any kind in connection with the issuance of the Debenture or the
shares issuable upon conversion or exercise thereof (the "SHARES" and, together
with the Debenture, the "SECURITIES") or with respect to any future offer, sale
or issuance of securities by Company. Company is not a party or subject to any
agreement or understanding and, to Company's knowledge, there is no agreement or
understanding between any persons that affects or relates to the voting or
giving of written consents with respect to any security or the voting by a
director of the Company.

               (c) Authorization. All corporate action on the part of Company,
its officers, directors and shareholders necessary for the authorization,
execution and delivery of the documents to be delivered by Company pursuant to
Section 1.3(b) hereof (the "TRANSACTION DOCUMENTS") and the transactions
contemplated thereby, the performance of all obligations of Company under the
Transaction Documents and the authorization, issuance and delivery of the
Securities has been taken. Each of the Transaction Documents constitutes the
valid and legally binding obligation of Company enforceable in accordance with
its terms.

                                      -2-

               (d) Valid Issuance of the Shares. The Shares, when issued, sold
and delivered in accordance with the terms of the Debenture, will be: duly
authorized, validly issued, fully paid and nonassessable; free of any liens,
options, encumbrances, proxies, adverse claims or restrictions; and, assuming
the accuracy of Purchaser's representations in this Agreement at the time of
issuance, issued in compliance with all applicable federal and state securities
laws.

               (e) Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, or local governmental authority (other than
filings required to be made under applicable federal and state securities laws)
on the part of Company is required in connection with the authorization,
execution, delivery of the Transaction Documents and performance of all
obligations of Company under the Transaction Documents, and the authorization,
issuance and delivery of the Securities.

               (f) No Conflict with Other Instruments. Company is not in
violation or default of any provisions of Company's Articles of Incorporation,
Bylaws or other charter documents (collectively, the "CHARTER DOCUMENTS") or of
any instrument, judgment, order, writ, decree or contract to which Company is a
party or by which Company is bound or of any provision of any statute, rule or
regulation applicable to Company. The execution, delivery and performance of
this Agreement will not result in any violation of, be in conflict with, or
constitute a default under, with or without the passage of time or the giving of
notice: (i) any provision of the Charter Documents; (ii) any provision of any
judgment, decree or order to which Company is a party or by which Company is
bound; (iii) any material contract, obligation or commitment to which Company is
a party or by which Company is bound; or (iv) any statute, rule or regulation
applicable to Company.

               (g) Absence of Claims. There are no actions, suits, claims,
investigations or legal or administrative proceedings pending or, to the best of
Company's knowledge and belief, threatened, against Company, and there are no
judgments, decrees or orders of any court, or government department, commission
or agency entered or existing against Company or any of its assets or
properties;

               (h) Transfer Restrictions. There are no restrictions on the
transfer of capital stock of Company imposed by the Charter Documents, any
agreement to which Company is a party (other than those agreements expressly
contemplated by this Agreement), any order of any court or any governmental
agency to which Company is subject, or any statute other than those imposed by
relevant state and federal securities laws.

               (i) No Undisclosed Liabilities. Company has no material
liabilities or obligations not disclosed to Purchaser, other than those
liabilities incurred (i) in the ordinary course of the Company's business since
December 31, 2004, or (ii) in connection with the negotiation and execution of
this Agreement.

               (j) No Broker. No finder, broker, agent, financial advisor or
other intermediary has acted on behalf of Company in connection with the
offering or sale of the Shares or the negotiation or consummation of this
Agreement or any of the transactions contemplated hereby.

         (k) Compliance with Securities Laws. Assuming the accuracy of
Purchaser's representations in this Agreement, the offer, grant, sale, and/or
issuance of the Debenture will not be in violation of the Securities Act of
1933, as amended (the "SECURITIES ACT"), the Securities Exchange Act of 1934, as
amended (the "EXCHANGE ACT"), any state securities or "blue sky" law, or the
Charter Documents, when offered, sold and issued in accordance with this
Agreement. The Company is not current in its required reports under the Exchange
Act.

                                      -3-

          2.2 Representations and Warranties of Purchaser. Purchaser, in order
to induce Company to issue and sell the Securities, hereby represents and
warrants to Company as follows:

               (a) No Registration. Purchaser understands that: (i) none of the
Securities have been registered under the Securities Act or under the securities
laws of any state or other jurisdiction and are characterized as "restricted
securities" under the Securities Act and applicable regulations; (ii) no federal
or state authority has approved or disapproved the Securities or the offering
thereof, endorsed the merits of the offering of the Securities or made any
determination as to the fairness of the offering; and (iii) Company's sale of
the Securities to Purchaser hereunder is in reliance upon the exemption from the
registration provisions under the Securities Act contained in Section 4(2)
thereof and applicable state securities laws and the representations of
Purchaser herein.

               (b) Accredited Investor. Purchaser is an "accredited investor" as
that term is defined in Rule 501 of Regulation D promulgated under the
Securities Act.

               (c) No Obligation to Register. Purchaser acknowledges that,
except as provided herein, Company has no obligation, and does not intend, to
register any the Securities under the Securities Act or to make available public
information (in the form of reports pursuant to Section 13 or Section 15 of the
Exchange Act, or otherwise) without which resale pursuant to SEC Rule 144
adopted under the Securities Act will not be possible. Accordingly, Purchaser
may be precluded from selling any of the Securities, or any interest therein,
for an indefinite period of time or at any particular time.

               (d) Investment Intent. Purchaser is acquiring the Securities
solely for its own account, for investment, and not with a view to, or for
resale in connection with, any distribution thereof. Purchaser's officers and
directors, together with its advisors, have such knowledge and experience in
financial and business matters that Purchaser is capable of evaluating the
merits and risks of purchasing the Securities.

               (e) Transfer Restrictions. No transfer of any of the Securities
may be made unless Company is presented with an opinion of counsel, satisfactory
to it and its counsel, that such transfer may be effected without registration
under the Securities Act.

               (f) Investment Risk. Purchaser is aware that a high degree of
risk is inherent in investing in Company; the purchase of the Securities is
highly speculative and there is a significant risk of loss of Purchaser's entire
investment; there is no market for the Securities nor can there be any assurance
that any such market will ever develop; and the Securities are subject to
substantial restrictions on transferability under state and federal securities
laws.

               (g) Economic Risk. Purchaser is able, without impairing its
financial condition, to hold the Securities for an indefinite period of time and
to suffer a complete loss of Purchaser's investment.

               (h) Consultation with Advisors. Purchaser has had an opportunity
to consult with counsel and such other advisors as it has considered appropriate
in connection with evaluation of the purchase of the Securities.

               (i) Information Concerning Company. Purchaser and its advisors
have been given the opportunity to ask questions of and receive answers from
Company and its executive officers concerning its capital structure, initial
equity financing, business activities, financial condition and prospects and the
terms and conditions of the purchase of the Securities and to obtain any
additional information which Company possesses or can obtain without
unreasonable effort or expense. Purchaser

                                      -4-

has availed itself of such opportunity to the extent that Purchaser or
Purchaser's advisors considered appropriate in connection with the proposed
purchase of the Securities.

               (j) No Broker. No finder, broker, agent, financial advisor or
other intermediary has acted on behalf of Purchaser in connection with the
offering of the Securities or the negotiation or consummation of this Agreement
or any of the transactions contemplated hereby.

                                   ARTICLE III

                                    COVENANTS

          3.1 Amendment to Articles of Incorporation. Company shall solicit and
make best efforts to obtain the approval of the requisite percentage of its
shareholders to adopt an amendment to the Articles of Incorporation in
substantially the form attached hereto as Exhibit B (the "CHARTER AMENDMENT").

          3.2 Filings. Company shall, within five (5) business days after the
adoption of the Charter Amendment by its shareholders, make all filings with the
state of Arizona necessary and appropriate to effectuate the Charter Amendment.

          3.3 Issuance of Stock Certificates. Within five (5) business days
after the occurrence of the Conversion, Company shall issue to Purchaser, stock
certificates in the name of Purchaser (or such other person as Purchaser
designates) representing Ten Million (10,000,000) shares of Common Stock.

                                   ARTICLE IV

                               REGISTRATION RIGHTS

          4.1 Demand Registration Rights. Company agrees to promptly register
the Shares for resale with the Securities and Exchange Commission upon the
request of the Purchaser and to bear any and all costs, fees and expenses of so
doing.

                                    ARTICLE V

                              ADDITIONAL PROVISIONS

          5.1 Preemptive Rights. Company reaffirms the preemptive rights of
Purchaser pursuant to the Stock Purchase Agreement by and between Company and
Purchaser dated November 19, 1999. Nothing in this Agreement shall effect or
otherwise alter that agreement.

          5.2 Legends. The Debenture and all certificates for Shares issued and
delivered to Purchaser under this Agreement, the Debenture, and all replacements
therefor issued to Purchaser or its assignees or transferees, shall bear, upon
their face or upon the reverse side thereof, the following legend(s) until, with
the consent of counsel to Company, the same may be removed in compliance with
all applicable securities laws, and each holder shall comply strictly with the
terms thereof:

               (a) "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR THE
SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE

                                      -5-

SECURITIES LAWS OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR
OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED."

               (b) Any legends required by the applicable securities or "blue
sky" laws of any state.

          5.3 Survival; Termination. All representations and warranties
contained herein, as well as all statements contained in a certificate or other
instrument executed and delivered by Company or Company's duly authorized
officers pursuant to this Agreement or in connection with the transactions
contemplated hereby, shall survive the execution and delivery of this Agreement
for a period of one (1) year.

          5.4 Expenses. Company and Purchaser shall each bear their own expenses
incurred with respect to the transaction contemplated hereby.

          5.5 Amendment, Modification and Termination. This Agreement may be
amended, modified or terminated, or any provision or requirement hereof waived,
at any time only by an agreement in writing between Company and Purchaser.

          5.6 Governing Law and Jurisdiction. This Agreement shall be governed
by and interpreted under the laws of the State of Pennsylvania, without giving
effect to the principles of conflicts of law of any jurisdiction. In the event
that a party to this Agreement perceives the existence of a dispute with the
other party concerning any right or duty provided for herein, the parties will,
as soon as practicable, confer in an attempt to resolve the dispute. If the
parties are unable to resolve such dispute amicably, then the parties hereby
submit to the exclusive jurisdiction of and venue in the state and federal
courts located in the State of Pennsylvania with respect to any and all disputes
concerning the subject, or arising out, of this Agreement.

          5.7 Notices. All notices and other communications required or
permitted hereunder or necessary or convenient in connection herewith shall be
in writing and shall be deemed to have been given when hand delivered, one (1)
day after mailing when mailed by overnight courier (e.g., Federal Express or
Express Mail) or three (3) days after mailing by registered or certified mail,
as follows (provided that notice of change of address shall be deemed given only
when received):

          If to Company, to:

          Chief Consolidated Mining Company
          15988 Silver Pass Road, P.O. Box 51
          Eureka, Utah  84628
          Attention: Chief Executive Officer

          With a copy (which shall not constitute notice), to:

          Pepper Hamilton LLP
          Hamilton Square
          600 Fourteenth Street, N.W.
          Washington, D.C. 20005-2004
          Attention: Robert B. Murphy, Esq.

                                      -6-

          If to Purchaser, to:

          Dimeling, Schreiber & Park Reorganization Fund II, L.P.
          1629 Locust Street
          Philadelphia, Pennsylvania  19103
          Attention: Richard Schreiber

or to such other names or addresses as Company or Purchaser, as the case may be,
shall designate by notice to each other person entitled to receive notices in
the manner specified in this Section 5.7.

          5.8 No Waiver. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

          5.9 Binding Nature of Agreement and No Assignment. All of the terms
and provisions of this Agreement shall be binding upon and inure to the benefit
of and be enforceable by the respective successors and assigns of the parties
hereto. This Agreement may not be changed, modified, extended or terminated
except by a written amendment executed by an authorized representative of each
party.

          5.10 Counterparts, Headings and Exhibits. This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. The
headings used in this Agreement are for convenience only and are not to be
considered in construing or interpreting any term or provision of this
Agreement. All Exhibits hereto are hereby incorporated in this Agreement and
made a part hereof.

          5.11 Integration. This Agreement and the other Transaction Documents
supersede all prior agreements and set forth the entire understanding among the
parties hereto and thereto with respect to the subject matter hereof and thereof
and supersede all prior agreements and understandings relating to the subject
matter hereof and thereof.

          5.12 Severability. If any provision of this Agreement shall be held to
be illegal, invalid or unenforceable, then such illegality, invalidity or
unenforceability shall attach only to such provision and shall not in any manner
affect or render illegal, invalid or unenforceable any other provision of this
Agreement, and this Agreement shall be carried out as if any such illegal,
invalid or unenforceable provision were not contained herein.

          5.13 Number of Days. In computing the number of days for purposes of
this Agreement, all days shall be counted, including Saturdays, Sundays and
holidays; provided that if the final day of any time period falls on a Saturday,
Sunday or holiday on which federal banks are or may elect to be closed, then the
final day shall be deemed to be the next day which is not a Saturday, Sunday or
such holiday.

                            [SIGNATURE PAGE FOLLOWS.]

                                      -7-

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first written above.

                                        CHIEF CONSOLIDATED MINING COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        DIMELING, SCHREIBER & PARK
                                        REORGANIZATION FUND II, L.P.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      -8-

                                    EXHIBIT A

                                FORM OF DEBENTURE

                                       A-1

THIS DEBENTURE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE SECURITIES LAWS. THIS DEBENTURE MAY NOT BE OFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OF THE DEBENTURE UNDER SUCH ACT
AND UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR UPON SATISFACTION BY THE
ISSUER HEREOF THAT SUCH REGISTRATION IS NOT REQUIRED AS TO SUCH SALE OR OFFER.

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE THAT OF A
GENERAL UNSECURED INDEBTEDNESS OF THE COMPANY.

                            8% CONVERTIBLE DEBENTURE
                                  $2,500,000.00

                                                           December ______, 2005

     FOR VALUE RECEIVED, the undersigned, CHIEF CONSOLIDATED MINING COMPANY, an
Arizona corporation (the "Company"), promises to pay to the order of DIMELING,
SCHREIBER & PARK REORGANIZATION FUND II, L.P., a Pennsylvania limited
partnership (the "Holder") the principal sum of Two Million Five Hundred
Thousand and 00/100 Dollars ($2,500,000.00) (the "Principal Amount"), together
with interest thereon as set forth below, at its offices or such other place as
the Holder may designated in writing.

          1. Escrow. Prior to receipt of creditor acceptances, aggregating 50%
     of outstanding amount owed, funds will be held in escrow by Company
     counsel, except for funds disbursed to pay legal, accounting, regulatory,
     and transfer agent fees as per the Escrow Agreement, attached hereto.

          2. Interest Payments. Debentures will accrue interest while
     outstanding at an annual rate of 8%, payable at the time of conversion in
     either additional shares of the Company's class of Common Stock, $0.50 par
     value (the "Common Stock") or cash, at the Company's discretion

          3. Automatic Conversion Terms. Automatically converts into shares of
     Common Stock at the rate of 4,000 shares for each $1,000 principal amount
     of Debentures upon the approval by the Company shareholders of amendments
     to the Company's Articles of Incorporation under Arizona state law to
     reduce the per share par value amount, among other matters.

               3.1. Conversion price. Conversion price shall be $0.25 per share,
     subject to adjustment in the event of a stock split, recapitalization,
     consolidation or other similar event affecting the Common Stock.

               3.2. The Company shall use its best efforts to obtain the
     requisite vote of shareholders for the approval of the amendment. In the
     event that the required

                                       A-1

     shareholder vote is not obtained, the debentures will be immediately due
     and payable.

          4. Subordination. The indebtedness represented by this Debenture
     represents general unsecured debt and is subordinate to the Senior Debt of
     the Company.

          5. The Company reaffirms the preemptive rights held by Investor
     pursuant to the Stock Purchase Agreement between the parties dated November
     19, 1999. Nothing in this document shall affect or otherwise alter that
     agreement.

          6. Assignment. This Debenture and the obligations hereunder may not be
     assigned by the Company without the prior written consent of Holder. Holder
     may freely assign all or any portion of its right, title and interest in
     and to the Debenture.

          7. Waivers. The Company hereby waives presentment, demand, protest or
     further notice of any kind to the extent permitted by applicable law.

          8. Controlling Law. This Debenture and all matters related hereto
     shall be governed, construed and interpreted strictly in accordance with
     the laws of the State of Pennsylvania, without regard to its principles of
     conflicts of laws.

          9. Purpose of Investment. The Company represents and warrants that
     this Debenture evidences an investment made in the Company made for the
     purpose of restoring SEC reporting status, including the preparation and
     audit of 2005 year-end financial statements and stockholder solicitation to
     revise and restate articles of incorporation; repayment on a negotiated
     basis of trade creditors, including professional fees of registered
     independent accounting firm and counsel; retain mining operations general
     manager; conduct preliminary site assessment of mining and mill assets; and
     for general working capital needs.

          10. No Usury. This Debenture is subject to the express condition that
     at no time shall the Company be obligated or required to pay interest
     hereunder at a rate that could subject the Holder to either civil or
     criminal liability as a result of being in excess of the maximum rate that
     the Company is permitted by law to contract or agree to pay. If, by the
     terms of this Debenture, the Company is at any time required or obligated
     to pay interest at a rate in excess of such maximum rate, the rate of
     interest under this Debenture shall be deemed to be immediately reduced to
     such maximum rate and interest payable hereunder shall be computed at such
     maximum rate and the portion of all prior interest payments in excess of
     such maximum rate shall be applied and shall be deemed to have been
     payments in reduction of the principal balance of this Debenture.

          11. Waiver of Trial by Jury. The Company agrees that any suit, action
     or proceeding, whether claim or counterclaim, brought or instituted by the
     Holder on or with respect to this Debenture, shall be tried only by a court
     and not by a jury. THE COMPANY HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL
     BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING.

                                       A-2

          12. Severability. In the event any one or more of the provisions
     contained in this Debenture or any other Investment Document shall for any
     reason be held to be invalid, illegal or unenforceable in any respect, such
     invalidity, illegality or unenforceability shall not affect any other
     provision of this Debenture or such other Investment Documents, but this
     Debenture and such other Investment Documents shall be construed as if such
     invalid, illegal or unenforceable provision had never been contained herein
     or therein.

     IN WITNESS WHEREOF, the undersigned has caused this Debenture to be
executed on the day and year first written above.

WITNESS/ATTEST:                         COMPANY:

                                        CHIEF CONSOLIDATED MINING COMPANY, an
                                        Arizona corporation

                                        By:
-------------------------------------       ------------------------------------
Name:                                   Name: Richard Schreiber
                                        Title: President

                                       A-3

                                    EXHIBIT B

                     AMENDMENT TO ARTICLES OF INCORPORATION

                                       B-1ESCROW AGREEMENT

     This ESCROW AGREEMENT, is dated as of December 16, 2005 ("Agreement"), by
and between Chief Consolidated Mining Company, an Arizona corporation
("Company"), and Pepper Hamilton LLP, a Pennsylvania limited liability
partnership ("Escrow Agent").

                                    RECITALS

     WHEREAS, the Company proposes to place ("Placement"), up to $2,500,000
principal amount of Convertible Debentures ("Debentures") with Dimeling
Schreiber & Park Reorganization Fund II, a private investment partnership and
current shareholder of the Company located at 1629 Locust Street, Philadelphia,
PA 19103 ("Purchaser");

     WHEREAS, in connection with the Placement, the Company desires to establish
an escrow account ("Escrow Account") with the Escrow Agent for the purpose of
holding the funds received from the Purchaser ("Placement Funds"), for the
purchase of the Debentures;

     WHEREAS, with the Placement Funds held in escrow, the Company intends to
contact its various creditors to solicit their individual acceptances
(collectively, "Acceptances"), of an amount to be paid to each in complete
settlement of such creditor's receivable due (collectively, "Receivables");

     NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt of which is acknowledged by each of the
parties hereto, the Company and the Escrow Agent hereby agree as follows:

                              TERMS AND CONDITIONS

     1. Appointment of Escrow Agent. The Company hereby appoints the Escrow
Agent to act as agent on its behalf pursuant to the terms and conditions of this
Agreement, and the Escrow Agent hereby consents to and accepts its appointment
in such capacity in accordance with the terms and conditions set forth in this
Agreement.

     2. Establishment of Escrow Account. The Escrow Agent shall deposit the
Placement Funds in an interest-bearing account maintained with Wachovia Bank and
agrees to hold and dispose of the Placement Funds in accordance with the terms
and conditions of this Agreement. Amounts may be wired to the Escrow Agent to be
held under this Agreement, in accordance with the following wire instructions:

           Account Name:      Pepper Hamilton LLP Client Trust Account (Chief
                              Consolidated Mining Company)
           Account Number:    2100013009297
           ABA Routing No.:   031201467

     3. Duties of Escrow Agent. The Escrow Agent shall have no duties or
obligations hereunder except those specifically set forth herein, and such
duties and obligations

shall be determined solely by the express provisions of this Agreement. In
connection with its duties hereunder, the Escrow Agent shall have no
responsibility for the genuineness or validity of any document or other item,
including, without limitation, any written notice, instruction, request,
consent, certificate, order, affidavit, letter, telegram or other document
deposited with or delivered to it and shall be conclusively protected and shall
have no liability for acting in accordance with any of the foregoing documents
or items furnished to it hereunder and believed by it to be genuine and to have
been signed by the proper party or parties. The Escrow Agent shall not be liable
for anything it may do or refrain from doing in connection with its duties
hereunder including, without limitation, any mistake of fact or error of
judgment or any act or omission of any kind, except as a result of its own gross
negligence, willful misconduct or bad faith. The Escrow Agent may consult with
legal counsel at the cost and expense of the Company in the event of any dispute
or question as to the construction of any of the provisions hereof or its duties
hereunder, and it shall incur no liability and be fully protected in respect of
any action taken or omitted by it, in good faith, on the advice of such counsel.
The Escrow Agent shall not be bound by any modification, amendment, termination,
cancellation, rescission or supersession of this Agreement, unless in writing
and signed by the parties hereto. If the Escrow Agent is uncertain as to its
duties or rights under this Agreement or receives instructions, claims or
demands from the Company or any other person or entity that, in its opinion,
conflict with any of the provisions of this Agreement, it may refrain from
taking any action other than to keep safely all property held in escrow until it
is directed otherwise in writing by the Company or by a final, unappealable
order or judgment of a court of competent jurisdiction in the Commonwealth of
Pennsylvania. The Escrow Agent shall have no liability on account of following
the instructions contained in or given in accordance with this Agreement or
written instructions given by the Company or set forth in an order or judgment
of a court of competent jurisdiction in the Commonwealth of Pennsylvania. The
Escrow Agent shall not be required to institute legal proceedings of any kind
and shall not be required to defend any legal proceedings that may be instituted
against it in respect of the subject matter of such instructions, unless
requested to do so and indemnified to its satisfaction against the cost and
expense of such defense.

     4. Construction of Instruments by Escrow Agent. The Escrow Agent shall not
be required to act in respect of the Placement Funds deposited in the Escrow
Account, except in accordance with this Agreement.

     5. Indemnity of Escrow Agent. The Company agrees to indemnify, defend and
hold harmless the Escrow Agent, its affiliates, and its officers, partners,
employees, successors, assigns, attorneys and agents (each an "Indemnified
Party") from and against any and all liabilities, losses, damages, costs,
expenses, penalties, demands, claims, actions, judgments, suits, and
disbursements of any kind or nature whatsoever (including, without limitation,
the reasonable fees and disbursements of an Indemnified Party for legal counsel,
whether in-house or engaged, and the reasonable legal costs and expenses of
defending against any of the foregoing) that may be suffered or incurred by an
Indemnified Party as a result of anything such Indemnified Party may do or
refrain from doing in connection with the performance of the Escrow Agent's
duties as Escrow Agent hereunder, relating to or arising out of the Escrow
Agreement or any of the transactions contemplated herein; provided that the
foregoing indemnification shall not extend to the gross negligence, bad faith or
willful misconduct of an Indemnified Party. Promptly after the receipt by the
Escrow Agent or an Indemnified Party of notice of any demand or claim or the
commencement of any action, suit or proceeding, the

                                       -2-

Escrow Agent shall, if a claim in respect thereof is to be made against the
Company, notify the Company thereof in writing. The indemnification obligation
of the Company shall survive any termination of this Agreement, or the Escrow
Account, or of the Escrow Agent's services hereunder.

     6. Fees and Expenses of Escrow Agent. The Escrow Agent shall be compensated
by the Company at its hourly rate for attorneys or other involved persons and
shall be reimbursed by the Company for all out-of-pocket expenses, disbursements
and advances incurred by it in connection with the performance of its duties
hereunder from the Placement Funds. The obligations of the Company under this
provision to compensate the Escrow Agent and to pay or reimburse the Escrow
Agent for reasonable expenses, disbursements and advances shall survive the
earlier of the termination of this Agreement or the Escrow Agent's services
hereunder.

     7. Escrow Period and Term of Agreement. The escrow period ("Escrow Period")
shall begin with the deposit of the Placement Funds into the Escrow Account by
the Purchaser and shall terminate upon the earliest to occur of the following:

          a. 5:00 p.m. EST time on June 30, 2006 (the "Initial Termination
Date"), unless extended to a time not later than December 31, 2006 (the "Final
Termination Date") pursuant to the Extension Notice in the form of Exhibit A
(attached hereto), signed by the Company and delivered to the Escrow Agent prior
to 5:00 p.m. EST time on June 30, 2006 (the Initial Termination Date or the
Final Termination Date, as applicable, being referred to herein as the
"Termination Date"), whereupon the remaining Placement Funds shall be disbursed
as set forth in Section 8 hereof.

          b. The Company understands and agrees that during the Escrow Period,
the Company shall not be entitled to any funds on deposit in the Escrow Account
(except as released to the Company pursuant to Section 8 hereof), and no such
funds shall become the property of the Company or any other person or entity,
nor shall such funds be subject to the debts of the Company or any other person
or entity (except as released on behalf of the Company or to the Company
pursuant to Section 8 hereof).

     8. Disbursement From the Escrow Account. During the Escrow Period, the
Placement Funds shall be released from escrow as follows:

          a. Upon deposit of the Placement Funds into the Escrow Account, an
amount of Twenty-six Thousand Dollars ($26,000) shall be released and paid to
the order of the Escrow Agent as compensation for services to the Company.

          b. Upon deposit of the Placement Funds into the Escrow Account, an
amount of Twenty-five Thousand Dollars ($25,000) shall be released and paid to
the order of Hansen Barnett & Maxwell, Attention Doug Hawkes, as compensation
for services to the Company.

          c. Upon deposit of the Placement Funds into the Escrow Account, an
amount of Two Thousand Dollars ($2,000) shall be released and paid to the order
of John Henderson as compensation for services to the Company.

                                       -3-

          d. Upon deposit of the Placement Funds into the Escrow Account, an
amount of Twenty Thousand Dollars ($20,000) shall be released and paid to the
order of Mellon Investment Services, as transfer agent, for the Company's class
of common stock as compensation for services to the Company.

          e. Upon receipt of a written request for disbursement executed by the
Company in connection with future legal, accounting, transfer agent or
regulatory fees and expenses incurred on behalf of the Company, such
disbursement amounts as requested shall be released and paid in accordance with
such written requests.

          f. Upon receipt of a written request for disbursement executed by the
Company, accompanied by a written certification from the Company that it has
received Acceptances aggregating more than fifty percent (50%) of the unsecured
Receivables outstanding as of the date hereof ("Receivable Certification"), all
remaining Placement Funds shall be released and paid to the Company, plus any
interest earned thereon.

          g. A request for disbursement from the Escrow Account submitted by the
Company shall be in substantially the same form as Exhibit B (attached hereto).
The Escrow Agent shall not be responsible for evaluating the truth or
sufficiency of the summary statement or the Company's request(s) for
disbursement.

     9. Controversies. The Escrow Agent shall not be required to resolve any
controversy between the Company and the Purchaser, or any controversy involving
any third party, whether the same involves questions or law or fact, nor shall
the Escrow Agent be required to take any action in connection therewith. In the
event of any such controversy, the Escrow Agent shall (i) hold the Placement
Funds until such time as the Escrow Agent has received notice executed by the
Company, and any such third party, that such controversy has been settled by
agreement or a certified copy of a final judgment, beyond all appeal periods,
entered by a court of competent jurisdiction resolving such controversy, or (ii)
deposit the Placement Funds into court. Without limiting the foregoing, the
Escrow Agent may, in its sole discretion, institute such interpleader or other
proceedings as it may deem proper.

     10. Successor Escrow Agent. If the Escrow Agent becomes unable to act
before full and final disbursement of all Placement Funds, the Company agrees
that a principal of Pepper Hamilton LLP, reasonably acceptable to the Company,
shall be appointed as successor escrow agent.

     11. Resignation of Escrow Agent. The Escrow Agent may resign hereunder, at
any time, in its sole discretion, by giving prior written notice thereof to the
Company; provided, however, the Escrow Agent shall not be permitted to resign
unless and until a successor escrow agent shall have been designated and
approved by the Company, and the Escrow Agent shall deliver the Placement Funds
to any such escrow agent selected by the Company as notified to the Escrow Agent
in writing.

     12. Termination of Escrow Agreement. Upon release and delivery of all of
the Placement Funds under this Escrow Agreement, this Escrow Agreement shall be
automatically cancelled and all rights and obligations of the parties hereto
shall automatically

                                       -4-

cease and terminate. The Company shall release and discharge the Escrow Agent
from any and all responsibility and/or liability arising out of its execution
and performance under this Agreement and shall execute written notice of such
release and discharge in the form of Exhibit C.

     13. Notices. All notices, demands and communications provided for herein or
made hereunder shall be delivered, mailed first class with postage prepaid or
sent by facsimile transmission, addressed in each case as follows, until another
address shall have been designated in a written notice given in like manner, and
shall be deemed to have been given or made when so delivered or mailed or sent
by facsimile transmission:

    if to the Company:        Chief Consolidated Mining Company
                              c/o Dimeling Schreiber & Park
                              1629 Locust Street
                              Philadelphia, PA 19103
                              Attention: Richard Schreiber
                              Facsimile No.: (215) 546-5398

    if to the Escrow Agent:   Pepper Hamilton LLP
                              600 Fourteenth Street, NW
                              Washington, DC 20005-2004
                              Attention: Robert B. Murphy, Esquire
                              Direct Facsimile No.: (202) 318-6225
                              General Facsimile No.: (202) 220-1665

     14. Entire Agreement. This Agreement constitutes the entire and whole
agreement and understanding between the parties with respect to the subject
matter hereof and supersedes any and all prior agreements and understandings
relating to the subject matter hereof.

     15. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors, legal
representatives and permitted assigns, but shall not be assignable by any party
hereto without the prior written consent of the other party hereto.

     16. Amendments, Modification or Waiver. No amendment, modification or
waiver of this Agreement or any provision hereof shall be binding or effective
for any purpose unless it is made in a writing signed by the party against whom
enforcement of such amendment, modification or waiver is sought. A waiver of a
right or remedy on any one occasion shall not be construed as a bar to or waiver
of any such right or remedy on any other occasion.

     17. Interpretation. The headings in this Agreement are intended solely for
convenience of reference and shall be given no effect in the construction or
interpretation of this Agreement.

     18. Severability. Whenever possible, each provision hereof shall be
interpreted in such manner as to be effective and valid under applicable law,
but in case any one or more of the provisions contained herein shall, for any
reason, be held to be invalid, illegal or

                                       -5-

unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision or
provisions had never been contained herein, unless the deletion of such
provision or provisions would result in such a material change as to cause the
performance hereof to be unreasonable.

     19. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania, without regard to
conflict of law principles.

     20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be considered an original instrument, but all
of which shall be considered one and the same agreement and shall become binding
when one or more counterparts have been signed and delivered by each of the
parties hereto.

                            [SIGNATURE PAGE FOLLOWS]

                                       -6-

     IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement
as of the date first above written.

                                        CHIEF CONSOLIDATED MINING COMPANY

                                        By:
                                           -------------------------------------
                                           Name: Richard Schreiber
                                           Title: President

                                        PEPPER HAMILTON LLP, as Escrow Agent

                                        By:
                                           -------------------------------------
                                           Name: Robert B. Murphy, Esquire
                                           Title: Partner

                                       -7-

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