Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Miranda Gold Corp. - Exhibit 10.10

 EXPLORATION, DEVELOPMENT AND 

  MINE OPERATING AGREEMENT 

BY AND BETWEEN 

 

 

 

MIRANDA GOLD CORP. 

MIRANDA U.S.A., INC. 

AND 

BARRICK GOLD EXPLORATION INC. 

TABLE OF CONTENTS 

	 	  	  	Page 
	 	  	  	  
	 ARTICLE I 	DEFINITIONS AND
      CROSS-REFERENCES 	1 
	 	 	 	 
	 	1.1 	Definitions 	1 
	 	 	 	 
	 	1.2 	Cross-References 	1 
	 	 	 	 
	 ARTICLE II 	NAME, PURPOSES
      AND TERM 	1 
	 	 	 	 
	 	2.1 	General 	1 
	 	 	 	 
	 	2.2 	Name 	1 
	 	 	 	 
	 	2.3 	Purposes 	1 
	 	 	 	 
	 	2.4 	Limitation 	2 
	 	 	 	 
	 	2.5 	Term 	2 
	 	 	 	 
	 ARTICLE III 	REPRESENTATIONS AND WARRANTIES; TITLE TO ASSETS; INDEMNITIES
      	2
	 	  		 
	 	3.1 	Representations and Warranties of the Participants 	2 
	 	 	 	 
	 	3.2 	Representations and Warranties of Miranda 	3 
	 	 	 	 
	 	3.3 	Disclosures
      	5 
	 	 	 	 
	 	3.4 	Record Title
      	5 
	 	 	 	 
	 	3.5 	Loss of Title
      	5 
	 	 	 	 
	 	3.6 	Royalties, Production
      Taxes and Other Payments Based on Production 	5 
	 	 	 	 
	 	3.7 	Indemnities/Limitation of Liability 	5 
	 	 	 	 
	 	3.8 	Environmental Obligations 	6 
	 	 	 	 
	 ARTICLE IV 	RELATIONSHIP
      OF THE PARTICIPANTS 	7 
	 	 	 	 
	 	4.1 	No Partnership
      	7 
	 	 	 	 
	 	4.2 	Federal Tax
      Elections and Allocations 	7 
	 	 	 	 
	 	4.3 	State Income
      Tax 	7 
	 	 	 	 
	 	4.4 	Other Business
      Opportunities 	7 
	 	 	 	 
	 	4.5 	Waiver of Rights
      to Partition or Other Division of Assets 	8 
	 	 	 	 
	 	4.6 	Transfer or
      Termination of Rights to Properties 	8 
	 	 	 	 
	 	4.7 	Implied Covenants
      	8 
	 	 	 	 
	 	4.8 	No Third Party
      Beneficiary Rights 	8 
	 	 	 	 
	 ARTICLE V 	CONTRIBUTIONS BY PARTICIPANTS 	8 
	 	 	 	 
	 	5.1 	Participants’ Initial Contributions 	8 

i 

TABLE OF CONTENTS 
(continued) 

	 	  	  	Page 
	 	  	  	  
	 	5.2 	Failure to Make
      Initial Contribution 	10 
	 	 	 	 
	 	5.3 	Additional Contributions
      	11 
	 	 	 	 
	 	5.4 	Payments to
      Miranda 	11 
	 	 	 	 
	 	5.5 	Additional Earn
      In 	11 
	 	 	 	 
	 ARTICLE VI 	INTERESTS OF
      PARTICIPANTS 	12 
	 	 	 	 
	 	6.1 	Initial Participating
      Interests 	12 
	 	 	 	 
	 	6.2 	Changes in Participating
      Interests 	12 
	 	 	 	 
	 	6.3 	Elimination
      of Minority Interest 	13 
	 	 	 	 
	 	6.4 	Continuing Liabilities
      Upon Adjustments of Participating Interests 	13 
	 	 	 	 
	 	6.5 	Documentation of Adjustments to Participating Interests
      	14 
	 	 	 	 
	 	6.6 	Grant of Lien
      and Security Interest 	14 
	 	 	 	 
	 	6.7 	Subordination of Interests 	14 
	 	 	 	 
	 ARTICLE VII 	MANAGEMENT COMMITTEE
      	14 
	 	 	 	 
	 	7.1 	Organization
      and Composition 	14 
	 	 	 	 
	 	7.2 	Decisions 	15 
	 	 	 	 
	 	7.3 	Meetings 	15 
	 	 	 	 
	 	7.4 	Action Without
      Meeting in Person 	16 
	 	 	 	 
	 	7.5 	Matters Requiring
      Approval 	16 
	 	 	 	 
	 ARTICLE VIII  	MANAGER	16 
	 	 	 	 
	 	8.1 	Appointment
      	16 
	 	 	 	 
	 	8.2 	Powers and Duties
      of Manager 	16 
	 	 	 	 
	 	8.3 	Standard of
      Care 	20 
	 	 	 	 
	 	8.4 	Resignation;
      Deemed Offer to Resign 	20 
	 	 	 	 
	 	8.5 	Payments To
      Manager 	21 
	 	 	 	 
	 	8.6 	Transactions
      With Affiliates 	21 
	 	 	 	 
	 	8.7 	Activities During
      Deadlock 	21 
	 	 	 	 
	 ARTICLE IX 	PROGRAMS AND
      BUDGETS 	21 
	 	 	 	 
	 	9.1 	Initial Program
      and Budget 	21 
	 	 	 	 
	 	9.2 	Operations Pursuant
      to Programs and Budgets 	21 
	 	 	 	 
	 	9.3 	Presentation
      of Programs and Budgets 	21 

ii 

TABLE OF CONTENTS
(continued) 

	 	  	  	Page 
	 	  	  	  
	 	9.4 	Review and Adoption
      of Proposed Programs and Budgets 	22 
	 	 	 	 
	 	9.5 	Election to
      Participate 	22 
	 	 	 	 
	 	9.6 	Recalculation or Restoration of Reduced Interest Based on
      Actual Expenditures 	23 
	 	  		
	 	9.7 	Pre-Feasibility Study Program and Budgets 	24 
	 	 	 	 
	 	9.8 	Completion of
      Pre-Feasibility Studies and Selection of Approved Alternatives 	25 
	 	  		 
	 	9.9 	Programs and
      Budgets for Feasibility Study 	26 
	 	 	 	 
	 	9.10 	Development
      Programs and Budgets; Project Financing 	27 
	 	 	 	 
	 	9.11 	Expansion or
      Modification Programs and Budgets 	27 
	 	 	 	 
	 	9.12 	Budget Overruns;
      Program Changes 	27 
	 	 	 	 
	 	9.13 	Emergency or
      Unexpected Expenditures 	28 
	 	 	 	 
	 ARTICLE X 	ACCOUNTS AND
      SETTLEMENTS 	28 
	 	 	 	 
	 	10.1 	Monthly Statements
      	28 
	 	 	 	 
	 	10.2 	Cash Calls 	28 
	 	 	 	 
	 	10.3 	Failure to Meet
      Cash Calls 	28 
	 	 	 	 
	 	10.4 	Cover Payment
      	28 
	 	 	 	 
	 	10.5 	Remedies 	29 
	 	 	 	 
	 	10.6 	Audits 	31 
	 	 	 	 
	 ARTICLE XI 	DISPOSITION
      OF PRODUCTION 	31 
	 	 	 	 
	 	11.1 	Taking In Kind
      	31 
	 	 	 	 
	 	11.2 	Failure of Participant
      to Take In Kind 	31 
	 	 	 	 
	 	11.3 	Hedging 	32 
	 	 	 	 
	 ARTICLE XII 	WITHDRAWAL AND
      TERMINATION 	32 
	 	 	 	 
	 	12.1 	Termination
      by Expiration or Agreement 	32 
	 	 	 	 
	 	12.2 	Termination
      by Deadlock 	32 
	 	 	 	 
	 	12.3 	Withdrawal 	32 
	 	 	 	 
	 	12.4 	Continuing Obligations
      and Environmental Liabilities 	32 
	 	 	 	 
	 	12.5 	Disposition
      of Assets on Termination 	33 
	 	 	 	 
	 	12.6 	Non-Compete
      Covenants 	33 
	 	 	 	 
	 	12.7 	Right to Data
      After Termination 	33 

iii 

TABLE OF CONTENTS 
(continued) 

	 	  	 	Page 
	 	  	 	  
	 	12.8 	Continuing Authority 	33 
	 	 	 	 
	 ARTICLE XIII 	ACQUISITIONS WITHIN AREA OF INTEREST 	33 
	 	 	 	 
	 	13.1 	General 	33 
	 	 	 	 
	 	13.2 	Notice to Non-Acquiring Participant 	34 
	 	 	 	 
	 	13.3 	Option Exercised 	34 
	 	 	 	 
	 	13.4 	Option Not Exercised 	34 
	 	 	 	 
	 ARTICLE XIV 	ABANDONMENT AND SURRENDER OF PROPERTIES 	34 
	 	 	 	 
	 ARTICLE XV 	SUPPLEMENTAL BUSINESS AGREEMENT 	35 
	 	 	 	 
	 ARTICLE XVI 	TRANSFER OF INTEREST; PREEMPTIVE RIGHT 	35 
	 	 	 	 
	 	16.1 	General 	35 
	 	 	 	 
	 	16.2 	Limitations on Free Transferability 	35 
	 	 	 	 
	 	16.3 	Preemptive Right 	37 
	 	 	 	 
	 ARTICLE XVII 	DISPUTES 	38 
	 	 	 	 
	 	17.1 	Governing Law 	38 
	 	 	 	 
	 	17.2 	Forum Selection 	38 
	 	 	 	 
	 	17.3 	Dispute Resolution 	38 
	 	 	 	 
	 	17.4 	Multi-Party Disputes 	38 
	 	 	 	 
	 ARTICLE XVIII 	CONFIDENTIALITY, OWNERSHIP, USE AND DISCLOSURE OF INFORMATION
      	39 
	 	  		 
	 	18.1 	Business Information 	39 
	 	 	 	 
	 	18.2 	Participant Information 	39 
	 	 	 	 
	 	18.3 	Permitted Disclosure of Confidential Business Information
      	40 
	 	 	 	 
	 	18.4 	Disclosure Required By Law 	40 
	 	 	 	 
	 	18.5 	Public Announcements 	40 
	 	 	 	 
	 ARTICLE XIX 	GENERAL PROVISIONS 	41 
	 	 	 	 
	 	19.1 	Notices 	41 
	 	 	 	 
	 	19.2 	Gender 	42 
	 	 	 	 
	 	19.3 	Currency 	42 
	 	 	 	 
	 	19.4 	Headings 	42 
	 	 	 	 
	 	19.5 	Waiver 	42 

iv 

TABLE OF CONTENTS 
(continued) 

	 	  	  	Page 
	 	  	  	  
	 	19.6 	Modification
      	42
      
	 	 	 	 
	 	19.7 	Force
      Majeure 	42
      
	 	 	 	 
	 	19.8 	Rule
      Against Perpetuities 	42
      
	 	 	 	 
	 	19.9 	Further
      Assurances 	43
      
	 	 	 	 
	 	19.10 	Entire
      Agreement; Successors and Assigns 	43
      
	 	 	 	 
	 	19.11 	Memorandum
      	43
      
	 	 	 	 
	 	19.12 	Counterparts
      	43
      

v 

EXHIBITS 

	EXHIBIT A 	ASSETS AND AREA OF INTEREST 
	EXHIBIT B 	ACCOUNTING PROCEDURES 
	EXHIBIT C 	DEFINITIONS 
	EXHIBIT D 	NET SMELTER RETURNS ROYALTY CALCULATION 
	EXHIBIT E 	NET PROCEEDS ROYALTY CALCULATION 
	EXHIBIT F 	INSURANCE 
	EXHIBIT G 	PREEMPTIVE RIGHTS 

vi 

EXPLORATION, DEVELOPMENT AND MINE OPERATING AGREEMENT

          This
Agreement is made as of July __, 2005 (“Effective Date”) between Miranda
Gold Corp., a British Columbia corporation, with an office at Suite 306 - 1140
Homer Street, Vancouver, British Columbia Canada V6B 2X6 and Miranda U.S.A.,
Inc., a Nevada corporation with an office at
_________________________________________ (Miranda Gold Corp. and Miranda
U.S.A., Inc. are jointly referred to in this Agreement as “Miranda”) and
Barrick Gold Exploration Inc., a Delaware corporation (“BGEI”), with
office at 293 Spruce Road, Elko, Nevada 89801. 

RECITALS 

          A.      Miranda
owns or controls certain properties in Lander County, State of Nevada, which
properties are described in Exhibit A. 

          B.      BGEI
wishes to participate with Miranda in the exploration, evaluation and, if
justified, the development and mining of mineral resources within the
Properties, and Miranda is willing to grant such rights to BGEI. 

          NOW
THEREFORE, in consideration of the covenants and conditions contained herein,
Miranda and BGEI agree as follows: 

ARTICLE I 
DEFINITIONS AND CROSS-REFERENCES

          1.1      Definitions.
The terms defined in Exhibit C and elsewhere shall have the defined meaning
wherever used in this Agreement, including in Exhibits. 

          1.2      Cross-References.
References to “Exhibits,” “Articles,” “Sections” and “Subsections” refer to
Exhibits, Articles, Sections and Subsections of this Agreement. References to
“Paragraphs” and “Subparagraphs” refer to paragraphs and subparagraphs of the
referenced Exhibits. 

ARTICLE II 
NAME, PURPOSES AND TERM 

          2.1      General.
Miranda and BGEI hereby enter into this Agreement for the purposes hereinafter
stated. All of the rights and obligations of the Participants in connection with
the Assets or the Area of Interest and all Operations shall be subject to and
governed by this Agreement. 

          2.2      Name.
The Assets shall be managed and operated by the Participants under the name of
the Barrick / Miranda HM Venture. The Manager shall accomplish any registration
required by applicable assumed or fictitious name statutes and similar statutes.

          2.3      Purposes.
This Agreement is entered into for the following purposes and for no others, and
shall serve as the exclusive means by which each of the Participants
accomplishes such purposes: 

1 

                    (a)     
to conduct Exploration within the Area of Interest, 

                    (b)      to
acquire additional real property and other interests within the Area of
Interest, 

                    (c)     
to evaluate the possible Development and Mining of the Properties, and, if
justified, to engage in Development and Mining, 

                    (d)     
to engage in Operations on the Properties, 

                    (e)     
to engage in marketing Products, to the extent provided by Article XI, 

                    (f)     
to complete and satisfy all Environmental Compliance obligations and Continuing
Obligations affecting the Properties, and 

                    (g)      to
perform any other activity necessary, appropriate, or incidental to any of the
foregoing. 

          2.4      Limitation.
Unless the Participants otherwise agree in writing, the Operations shall be
limited to the purposes described in Section 2.3, and nothing in this Agreement
shall be construed to enlarge such purposes or to change the relationships of
the Participants as set forth in Section 4. 

          2.5      Term.
Unless the Business is earlier terminated as provided in this Agreement, the
term of this Agreement shall be for twenty (20) years from the Effective Date
and for so long thereafter as required (i) to salvage and dispose of all
materials, supplies, equipment and infrastructure, (ii) to complete and obtain
acceptance of any required Environmental Compliance, and (iii) to agree to a
final accounting. 

ARTICLE III 
REPRESENTATIONS AND WARRANTIES; TITLE
TO ASSETS; INDEMNITIES 

          3.1      Representations
and Warranties of the Participants. As of the Effective Date, each
Participant warrants and represents to the other that: 

                    (a)      it
is a corporation duly organized and in good standing in its state or province of
incorporation and is qualified to do business and is in good standing in those
states and provinces where necessary in order to carry out the purposes of this
Agreement; 

                    (b)     
it has the capacity to enter into and perform this Agreement and all
transactions contemplated herein and that all corporate, board of directors,
shareholder, surface and mineral rights owner, lessor, lessee and other actions
required to authorize it to enter into and perform this Agreement have been
properly taken; 

                    (c)      it
will not breach any other agreement or arrangement by entering into or
performing this Agreement; 

2 

                    (d)      it
is not subject to any governmental order, judgment, decree, debarment, sanction
or Laws that would preclude the permitting or implementation of Operations under
this Agreement; 

                    (e)      this
Agreement has been duly executed and delivered by it and is valid and binding
upon it in accordance with its terms; and 

                    (f)      in
negotiating and entering into this Agreement it has relied solely on its own
appraisals and estimates as to the value of the Assets and upon its own geologic
and engineering interpretations related thereto. 

          3.2      Representations
and Warranties of Miranda. As of the Effective Date, Miranda makes the
following representations and warranties to BGEI: 

                    (a)      With
respect to those Properties Miranda owns in fee simple, if any, Miranda is in
exclusive possession of and owns such Properties free and clear of all
Encumbrances or defects in title except those specifically identified in
Paragraph 1.1 of Exhibit A. 

                    (b)     
With respect to those Properties in which Miranda holds an interest under leases
or other contracts, including without limitation, the Miller Mining Lease: (i)
Miranda is in exclusive possession of such Properties; (ii) Miranda has not
received any notice of default of any of the terms or provisions of such leases
or other contracts; (iii) Miranda has the authority under such leases or other
contracts to perform fully its obligations under this Agreement; (iv) to
Miranda’s knowledge, such leases and other contracts are valid and are in good
standing; (v) Miranda has no knowledge of any act or omission or any condition
on the Properties which could be considered or construed as a default under any
such lease or other contract; and (vi) to Miranda’s knowledge, such Properties
are free and clear of all Encumbrances or defects in title except for those
specifically identified in Paragraph 1.1 of Exhibit A. 

                    (c)      Miranda
has delivered to or made available for inspection by BGEI all Existing Data in
its possession or control, and true and correct copies of all leases or other
contracts relating to the Properties. 

                    (d)      With
respect to unpatented mining claims and millsites located by Miranda that are
included within the Properties, except as provided in Paragraph 1.1 of Exhibit A
and subject to the paramount title of the United States: (i) the unpatented
mining claims were properly laid out and monumented; (ii) all required location
and validation work was properly performed; (iii) location notices and
certificates were properly recorded and filed with appropriate governmental
agencies; (iv) all assessment work required to hold the unpatented mining claims
has been performed and all Governmental Fees have been paid in a manner
consistent with that required of the Manager pursuant to Subsection 8.2(k)
through the assessment year ending September 1, 2006; (v) all affidavits of
assessment work, evidence of payment of Governmental Fees, and other filings
required to maintain the claims in good standing have been properly and timely
recorded or filed with appropriate governmental agencies; (vi) the claims are
free and clear of Encumbrances or defects in title; and (vii) Miranda has no
knowledge of conflicting mining claims. Nothing in this Subsection, however,
shall be 

3 

deemed to be a representation or a warranty that any of the
unpatented mining claims contains a valuable mineral deposit. 

                    (e)     
With respect to unpatented mining claims and millsites not located by Miranda
but which are included within the Properties, except as provided in Paragraph
1.1 of Exhibit A and subject to the paramount title of the United States: (i)
all assessment work required to hold the unpatented mining claims has been
performed and all Governmental Fees have been paid in a manner consistent with
that required of the Manager pursuant to Subsection 8.2(k) through the
assessment year ending September 1, 2006; (ii) all affidavits of assessment
work, evidence of payment of Governmental Fees, and other filings required to
maintain the claims in good standing have been properly and timely recorded or
filed with appropriate governmental agencies; (iii) the claims are free and
clear of Encumbrances or defects in title; and (iv) Miranda has no knowledge of
conflicting mining claims. Nothing in this Subsection, however, shall be deemed
to be a representation or a warranty that any of the unpatented mining claims
contains a valuable discovery of minerals. 

                    (f)      With
respect to the Properties, to Miranda’s knowledge, there are no pending or
threatened actions, suits, claims or proceedings, and there have been no
previous transactions affecting its interests in the Properties which have not
been for fair consideration. 

                    (g)      Except
as to matters otherwise disclosed in writing to BGEI prior to the Effective
Date, 

          (i)      to
Miranda’s knowledge, the conditions existing on or with respect to the
Properties and its ownership and operation of the Properties are not in
violation of any Laws (including without limitation any Environmental Laws), nor
causing or permitting any damage (including Environmental Damage) or impairment
to the health, safety, or enjoyment of any person at or on the Properties or in
the general vicinity of the Properties; 

          (ii)     
to Miranda’s knowledge, there have been no past violations by it or by any of
its predecessors in title of any Environmental Laws or other Laws affecting or
pertaining to the Properties, nor any past creation of damage or threatened
damage to the air, soil, surface waters, groundwater, flora, fauna, or other
natural resources on, about or in the general vicinity of the Properties
(“Environmental Damage”); and 

          (iii)      Miranda
has not received inquiry from or notice of a pending investigation from any
governmental agency or of any administrative or judicial proceeding concerning
the violation of any Laws. 

                    (h)      Miranda
has disclosed to BGEI all information it believes to be relevant concerning the
Assets and has provided to or made available for inspection by BGEI all such
information, but does not make any representation or warranty, express or
implied, as to the accuracy or completeness of the information (except as
provided in this Section 3.2) or as to the boundaries or value of the Assets.

4 

The representations and warranties set forth in this Section
3.2 shall survive the execution and delivery of any documents of Transfer
provided under this Agreement. For a representation or warranty made to a
Participant’s “knowledge,” the term “knowledge” shall mean actual knowledge of
the matter on the part of the officers, employees, and agents of the
representing Participant or actual knowledge of facts on the part of the
officers, employees, and agents of the representing Participant that would
reasonably lead to knowledge of the matter. 

          3.3     
Disclosures. Each of the Participants represents and warrants that it
is unaware of any material facts or circumstances that have not been disclosed
in this Agreement, which should be disclosed to the other Participant in order
to prevent the representations and warranties in this Article from being
materially misleading. 

          3.4     
Record Title. Title to the Assets shall be held by the Participants as
co-tenants for the benefit of the Venture, as their Participating Interests are
determined pursuant to this Agreement. 

          3.5     
Loss of Title. Any failure or loss of title to the Assets, and all
costs of defending title, shall be charged to the Business Account, except that
all costs and losses arising out of or resulting from breach of the
representations and warranties of Miranda or BGEI as to title shall be charged
to Miranda or BGEI, as the case may be. 

          3.6      Royalties,
Production Taxes and Other Payments Based on Production. All required
payments of production royalties, taxes based on production of Products, and
other payments out of production to private parties and governmental entities
shall be determined and made by each Participant in proportion to its
Participating Interest, and each Participant undertakes to make such payments
timely and otherwise in accordance with applicable laws and agreements. If
separate payment is not permitted, each Participant shall determine and pay its
proportionate share in advance to the Participant obligated to make such payment
and such Participant shall timely make such payment. Each Participant shall
furnish to the other Participant evidence of timely payment for all such
required payments. In the event that either Participant fails to make any such
required payment, the other Participant shall have the right to make such
payment and shall thereby become subrogated to the rights of such third party;
provided, however, that the making of any such payment on behalf of the other
Participant shall not constitute acceptance by the paying Participant of any
liability to such third party for the underlying obligation. 

          3.7     
Indemnities/Limitation of Liability. 

                    (a)      Each
Participant shall indemnify the other Participant, its directors, officers,
employees, agents and attorneys, or Affiliates (collectively “Indemnified
Participant”) from and against the entire amount of any Material Loss. A
“Material Loss” shall mean all costs, expenses, damages or liabilities,
including attorneys’ fees and other costs of litigation (either threatened or
pending) arising out of or based on a breach by a Participant (“Indemnifying
Participant”) of any representation, warranty or covenant contained in this
Agreement, including without limitation: 

5 

          (i)      any
failure by a Participant to determine accurately and make timely payment of its
proportionate share of required royalties, production taxes and other payments
out of production to third parties as required by Section 3.6; 

          (ii)     
any action taken for or obligation or responsibility assumed on behalf of the
other Participant, its directors, officers, employees, agents and attorneys, or
Affiliates by a Participant, any of its directors, officers, employees, agents
and attorneys, or Affiliates, in violation of Section 4.1; 

          (iii)      failure
of a Participant or its Affiliates to comply with the non-compete or Area of
Interest provisions of Section 12.6 or Article XIII; and 

          (iv)      failure
of a Participant or its Affiliates to comply with the preemptive right under
Section 16.3 and Exhibit G. 

                    (b)     
If any claim or demand is asserted against an Indemnified Participant in respect
of which such Indemnified Participant may be entitled to indemnification under
this Agreement, written notice of such claim or demand shall promptly be given
to the Indemnifying Participant. The Indemnifying Participant shall have the
right, but not the obligation, by notifying the Indemnified Participant within
thirty (30) days after its receipt of the notice of the claim or demand, to
assume the entire control of (subject to the right of the Indemnified
Participant to participate, at the Indemnified Participant’s expense and with
counsel of the Indemnified Participant’s choice), the defense, compromise, or
settlement of the matter, including, at the Indemnifying Participant’s expense,
employment of counsel of the Indemnifying Participant’s choice. Any damages to
the assets or business of the Indemnified Participant caused by a failure by the
Indemnifying Participant to defend, compromise, or settle a claim or demand in a
reasonable and expeditious manner requested by the Indemnified Participant,
after the Indemnifying Participant has given notice that it will assume control
of the defense, compromise, or settlement of the matter, shall be included in
the damages for which the Indemnifying Participant shall be obligated to
indemnify the Indemnified Participant. Any settlement or compromise of a matter
by the Indemnifying Participant shall include a full release of all claims
against the Indemnified Participant related to or arising out of the indemnified
claim or demand. 

          3.8      Environmental
Obligations. Until such time as BGEI completes its Initial
Contribution, Miranda will retain all responsibility for Environmental
Compliance and Environmental Liabilities associated with or arising out of (i)
past operations conducted by Miranda on the Property and (ii) conditions
existing on the Property prior to the Effective Date of this Agreement, except
to the extent such operations or conditions are affected by BGEI’s Exploration
Operations on the Property. BGEI shall have responsibility for Environmental
Compliance and Environmental Liabilities associated with or arising out of any
surface disturbance resulting from BGEI’s Exploration Operations until it has
completed its Initial Contribution. In the event BGEI satisfies its Initial
Contribution requirement and vests in an initial Participating Interest, all
Environmental Compliance and Environmental Liabilities shall become the
responsibility of the Venture and shall be shared by the Participants in
proportion to their Participating Interests. 

6 

ARTICLE IV 
RELATIONSHIP OF THE PARTICIPANTS

          4.1      No
Partnership. Nothing contained in this Agreement shall be deemed to
constitute either Participant the partner or the venturer of the other, or,
except as otherwise herein expressly provided, to constitute either Participant
the agent or legal representative of the other, or to create any fiduciary
relationship between them. The Participants do not intend to create, and this
Agreement shall not be construed to create, any mining, commercial or other
partnership or joint venture. Neither Participant, nor any of its directors,
officers, employees, agents and attorneys, or Affiliates, shall act for or
assume any obligation or responsibility on behalf of the other Participant,
except as otherwise expressly provided herein, and any such action or assumption
by a Participant’s directors, officers, employees, agents and attorneys, or
Affiliates shall be a breach by such Participant of this Agreement. The rights,
duties, obligations and liabilities of the Participants shall be several and not
joint or collective. Each Participant shall be responsible only for its
obligations as herein set out and shall be liable only for its share of the
costs and expenses as provided herein, and it is the express purpose and
intention of the Participants that their ownership of Assets and the rights
acquired hereunder shall be as tenants in common. 

          4.2      Federal
Tax Elections and Allocations. The Participants elect not to constitute
a tax partnership within the meaning of Section 761(a) of the United States
Internal Revenue Code of 1986, as amended. 

          4.3      State
Income Tax. To the extent permissible under applicable law, the
relationship of the Participants shall be treated for state income tax purposes
in the same manner as it is for federal income tax purposes. 

          4.4      Other
Business Opportunities. 

                    (a)      Except
as expressly provided in this Agreement, each Participant shall have the right
to engage in and receive full benefits from any independent business activities
or operations, whether or not competitive with this Business, without consulting
with, or obligation to, the other Participant. The doctrines of “corporate
opportunity or business opportunity” shall not be applied to this Business or to
any other activity or operation of either Participant. 

                    (b)     
Neither Participant shall have any obligation to the other with respect to any
opportunity to acquire any property outside the Area of Interest at any time,
or, except as otherwise provided in Section 12.6, within the Area of Interest
after the termination of the Business. 

                    (a)      (b)
Miranda hereby grants to BGEI the right to process any Products produced from
the Properties on arm’s length, commercially competitive terms. BGEI shall
exercise such right by proposing a processing agreement to Miranda as part of
the Development Program and Budget. If the Participants are unable to agree on
the terms of the processing agreement within one hundred and twenty (120) days
after the approval of the Development Program and Budget, the Participants
shall, at the request of either Participant, attempt to mediate the unresolved
issues before a mutually acceptable mediator. The mediation shall be 

7 

completed within three (3) weeks of the request for mediation
unless the Participants agree in writing to extend the period. If the
Participants are unable to reach agreement on the terms of the processing
agreement through mediation, then Miranda may solicit proposals from third
parties to process its share of the Products. Prior to accepting any such
third-party offer, Miranda shall give BGEI thirty (30) days to review the offer.
Within such thirty-day period, BGEI may elect to process Miranda’s share of the
Products on the terms set forth in the proposed processing agreement. If BGEI
fails to so elect within the thirty-day period, Miranda may accept the proposed
third-party processing agreement. Except as provided in this Subsection 4.4(c)
or otherwise agreed in writing, neither Participant shall have any obligation to
mill, beneficiate or otherwise treat any Products in any facility owned or
controlled by such Participant. 

          4.5      Waiver
of Rights to Partition or Other Division of Assets. The Participants
hereby waive and release all rights of partition, or of sale in lieu thereof, or
other division of Assets, including any such rights provided by Law. 

          4.6      Transfer
or Termination of Rights to Properties. Except as otherwise provided in
this Agreement, neither Participant shall Transfer all or any part of its
interest in the Assets or this Agreement or otherwise permit or cause such
interests to terminate. 

          4.7     
Implied Covenants. There are no implied covenants contained in this
Agreement other than those of good faith and fair dealing. 

          4.8      No
Third Party Beneficiary Rights. This Agreement shall be construed to
benefit the Participants and their respective successors and assigns only, and
shall not be construed to create third party beneficiary rights in any other
party or in any governmental organization or agency, except to the extent
required by Project Financing and as provided in Subsection 3.7(a) . 

ARTICLE V 
CONTRIBUTIONS BY PARTICIPANTS 

          5.1     
Participants’ Initial Contributions. 

                    (a)      Miranda,
as its Initial Contribution, hereby contributes the Assets described in Exhibit
A to the purposes of this Agreement. The amount of One Million Three Hundred
Thirty-Three Thousand Three Hundred and Thirty-Three and 60/100 Dollars
($1,333,333.60) shall be credited to Miranda’s Equity Account on the Effective
Date with respect to Miranda’s Initial Contribution. 

                    (b)      Subject
to BGEI’s right of withdrawal as set forth in Section 5.2, BGEI, as its Initial
Contribution, shall: 

          (i)      expend
a total of Two Million Dollars and 40/100 Dollars ($2,000,000.40) in Qualifying
Expenses to fund Operations under Subsection 5.1(c) on or before December 31,
2009 in minimum amounts scheduled as follows: 

8 

	On or before December 31, 2006 	$300,000.00 
	On or before December 31, 2007 	$400,000.00 
	On or before December 31, 2008 	$600,000.00 
	On or before December 31, 2009 	$700,000.00 

Any amount expended by BGEI in excess of the amount required by
a particular date shall be credited against the minimum expenditure requirement
for subsequent years. If BGEI fails to expend a total of Three Hundred Thousand
Dollars ($300,000.00) in Qualifying Expenses on or before December 31, 2006,
BGEI shall pay the difference between that amount and the amount of Qualifying
Expenses expended on or before December 31, 2006 to Miranda on or before
February 28, 2007; 

          (ii)      complete
a total of 3,000 feet of drilling on the Properties on or before December 31,
2006; and 

          (iii)     make
payments to Miranda as provided in Section 5.4. 

Upon the completion of BGEI’s Initial Contribution, the amount
of Two Million Dollars ($2,000,000.40) shall be credited to BGEI’s Equity
Account. 

                    (c)      Until
the later to occur of (i) BGEI completing its Initial Contribution or (ii) BGEI
electing not to make or completing its Additional Earn-In, BGEI shall have the
sole right to determine the nature, timing, scope, extent and method of all
Operations without any obligation to hold meetings of the Management Committee,
to prepare Programs and Budgets for review, comment or approval by Miranda, or
to obtain the approval or consent of Miranda or the Management Committee. In
conducting such Operations, BGEI shall be entitled, but shall not be obligated,
to exercise any of the applicable powers of the Manager in Section 8.2, except
that until the later to occur of (i) BGEI completing its Initial Contribution or
(ii) BGEI electing not to make or completing its Additional Earn-In it shall not
be entitled or required to perform the activities described in Subsections
8.2(g), (i), (l) and (s) that would otherwise require consent of the Management
Committee or of Miranda. Provided, however, that subject to the requirements of
the underlying lease agreement and after first offering to return those parts to
Miranda, BGEI may allow parts of the Properties to lapse. Miranda shall clarify
and cure any title and or claim defects or validity issues affecting the
Properties or at its discretion, BGEI may clarify and cure such defects or
validity issues, the cost of which shall constitute a Qualifying Expense. Prior
to the later to occur of (i) BGEI completing its Initial Contribution or (ii)
BGEI electing not to make or completing its Additional Earn-In, BGEI, in lieu of
any reporting requirements under this Agreement, shall: 

          (i)      keep
Miranda generally informed concerning all material Operations and other material
activities affecting the Properties; 

          (ii)      within
sixty (60) days after the end of the second and fourth quarters, commencing with
the fourth quarter of 2005, furnish to Miranda a reasonably detailed written
report of all Operations conducted on or for the benefit of the Properties
during the preceding six month period; 

9 

          (iii)      make
available for inspection and copying by Miranda all factual and interpretive
reports, studies and analyses concerning the Properties, and make all core and
other samples available for inspection by Miranda; and 

          (iv)      within
sixty (60) days after the end of the second and fourth quarters, commencing with
the fourth quarter of 2005, submit to Miranda a statement of Qualifying Expenses
incurred during the preceding six month period. 

BGEI makes no representation or warranty, express or implied,
as to the accuracy or completeness of the data and information provided to
Miranda in accordance with (i) through (iv) above. 

                    (d)      Miranda
shall provide BGEI with written notice of any exceptions it may have to the
statement of Qualifying Expenses submitted to it as provided above within three
(3) months after receipt of the statement. Failure to provide such notice within
the three (3) month period shall constitute acceptance by Miranda of the stated
Qualifying Expenses. 

          5.2      Failure
to Make Initial Contribution. 

                    (a)      BGEI’s
failure to make its Initial Contribution in accordance with the provisions of
this Article, if not cured within thirty (30) days after notice by Miranda of
such default, shall be deemed to be a withdrawal of BGEI from the Business, the
termination of its Participating Interest hereunder and a transfer of its
Participating Interest to Miranda. Upon such event, BGEI shall have no further
right, title or interest in the Assets and it shall take such actions as are
necessary to ensure that all Assets are free and clear of any Encumbrances
arising by, through or under it, except for such Encumbrances to which the
Participants may have agreed. Subject to Subsection 5.2(b) below, BGEI’s
withdrawal shall be effective upon such failure, but such withdrawal shall not
relieve BGEI of its obligation to Miranda to fund Operations up to the amount of
BGEI’s contractual obligations to third parties, nor shall such withdrawal
relieve BGEI of its responsibility to fund and satisfy BGEI’s share of
liabilities to third persons (regardless of whether such liabilities accrue
before or after such withdrawal), including Environmental Liabilities,
Continuing Obligations and costs of Environmental Compliance, arising from
Operations conducted by BGEI prior to BGEI’s withdrawal. 

                    (b)      Notwithstanding
Subsection 5.2(a) above, in the event BGEI, within sixty (60) days after the
Effective Date, determines that conditions may exist on the Properties which
may, in BGEI’s judgment, result in a violation of Environmental Laws, BGEI shall
have the right to withdraw from the Business by giving written notice to Miranda
of such withdrawal. BGEI’s withdrawal shall be effective upon receipt by Miranda
of such notice, but such withdrawal shall not relieve BGEI of its obligation to
fund Operations up to Three Hundred Thousand Dollars ($300,000.00) . Such
withdrawal shall, however, relieve BGEI of its responsibility to fund and
satisfy BGEI’s share of liabilities to third parties (regardless of whether such
liabilities accrue before or after such withdrawal), including Environmental
Liabilities, Continuing Obligations and costs of Environmental Compliance, other
than those arising out of Operations conducted by BGEI after the Effective Date
and prior to its withdrawal. BGEI obligation to fund and to satisfy such
liabilities shall not exceed Three Hundred Thousand Dollars ($300,000.00) .
Except as provided in this Subsection and except as may be otherwise expressly
provided herein, BGEI’s 

10 

withdrawal shall relieve BGEI from any other obligation to make
contributions, to fund Operations, to incur costs, or to pay liabilities to
third parties hereunder. 

          5.3      Additional
Contributions. As of the later to occur of (i) BGEI’s completion of its
Initial Contribution or (ii) BGEI’s election not to make or completing its
Additional Earn-In, the Participants, subject to any election permitted by
Subsection 9.5(a), shall be obligated to contribute funds to adopted Programs
and Budgets in proportion to their respective Participating Interests. 

          5.4      Payments
to Miranda. Provided that this Agreement is in effect on the date due,
BGEI shall make the following payments to Miranda on the dates specified: 

	Upon execution of this Agreement 	$30,000.00 
	Upon January 1, 2007 	$30,000.00 
	Upon January 1, 2008 	$30,000.00 
	Upon January 1, 2009 	$20,000.00 

These payments shall not constitute Qualifying Expenses. 

          5.5      Additional
Earn In. 

                    (a)      BGEI
shall have the option and right, at is sole discretion, to elect to increase its
Participating Interest incrementally by up to an additional ten percent (10%),
to a total of seventy percent (70%), by making additional Qualifying Expenses in
minimum annual amounts of no less than One Million Dollars ($1,000,000) per
year. Such additional Qualifying Expenses shall be made, if at all, on or before
December 31, 2015. BGEI may accelerate the making of such Qualifying Expenses at
its sole discretion. Any amount expended by BGEI in excess of One Million
Dollars ($1,000,000.00) per year shall be credited against the One Million
Dollar ($1,000,000.00) per year minimum expenditure requirement for subsequent
years. If BGEI makes additional Qualifying Expenses as provided in this
Subsection, BGEI shall immediately increase its Participating Interest at the
rate of one percent (1%) for each Six Hundred Thousand Dollars ($600,000.00) of
additional Qualifying Expenses, or pro-rata increment thereof, funded by BGEI
under this Subsection. At any time, and at its sole discretion, BGEI by giving
written notice to Miranda may elect to suspend funding additional Qualifying
Expenses under this Subsection, and the respective Participating Interests of
the Participants shall be computed at that point based on the actual amount of
additional Qualifying Expenses funded by BGEI. Thereafter, the Participants
shall participate and contribute to the Business based on the recalculated
Participating Interests. 

                    (b)      In
the event BGEI elects not to complete all of its additional earn-in option to a
full seventy percent (70%) by funding a cumulative total of Eight Million
Dollars ($8,000,000.00) of Qualifying Expenditures as provided in this Section,
Miranda may elect to not contribute to subsequent Programs and Budgets until
such time as BGEI has funded a cumulative total of Eight Million Dollars
($8,000,000.00) of Qualifying Expenses. If Miranda elects to not contribute to a
subsequent Program and Budget, Miranda’s Participating Interest shall dilute at
the rate of one percent (1%) per One Million Dollars ($1,000,000.00) of
Qualifying Expenses made by BGEI, or pro-rata increment thereof, until BGEI’s
cumulative 

11 

funding of Qualifying Expenses totals Eight Million Dollars
($8,000,000.00) . Thereafter the Participants’ Participating Interests shall be
subject to dilution as provided in Article IX. 

                    (c)      BGEI,
at its sole discretion, may increase its Participating Interest by an additional
five percent (5%) by arranging or providing post-feasibility financing for
Miranda’s share of the Program and Budget for the Development of the Approved
Alternative. BGEI shall exercise such right by proposing financing terms to
Miranda as part of the Development Program and Budget. If the Participants are
unable to agree on the terms of the financing terms within one hundred and
twenty (120) days after the approval of the Development Program and Budget, the
Participants shall, at the request of either Participant, attempt to mediate the
unresolved issues before a mutually acceptable mediator. The mediation shall be
completed within three (3) weeks of the request for mediation unless the
Participants agree in writing to extend the period. If the Participants are
unable to reach agreement on the terms of the financing terms through mediation,
then Miranda may solicit financing proposals from third parties. Prior to
accepting any such third-party offer, Miranda shall give BGEI thirty (30) days
to review the offer. Within such thirty-day period, BGEI may elect to finance
Miranda’s share of the Program and Budget for Development of the Approved
Alternative on the proposed financing terms. If BGEI fails to so elect within
the thirty-day period, Miranda may accept the proposed third-party financing
terms. 

                    (d)      If
BGEI increases its Participating Interest as provided in this Section 5.5, the
Equity Account of each Participant shall be revised so that the ratio of the
Participant’s Equity Account to the total amount of the Participants’ Equity
Accounts is equal to the Participant’s recalculated Participating Interest. 

ARTICLE VI 
INTERESTS OF PARTICIPANTS 

          6.1      Initial
Participating Interests. The Participants shall have the following
initial Participating Interests: 

	Miranda 	- 	40% 
	BGEI 	- 	60% 

          6.2      Changes
in Participating Interests. The Participating Interests shall be
eliminated or changed as follows: 

                    (a)      As
provided in Section 5.5; 

                    (b)      Upon
withdrawal or deemed withdrawal as provided in Sections 5.2, 6.3, and Article
XII; 

                    (c)      Upon
an election by either Participant pursuant to Section 9.5 to contribute less to
an adopted Program and Budget than the percentage equal to its Participating
Interest, or to contribute nothing to an adopted Program and Budget; 

12 

                    (d)     
In the event of default by either Participant in making its agreed-upon
contribution to an adopted Program and Budget, followed by an election by the
other Participant to invoke any of the remedies in Section 10.5; 

                    (e)      Upon
Transfer by either Participant of part or all of its Participating Interest in
accordance with Article XVI; or 

                    (f)      Upon
acquisition by either Participant of part or all of the Participating Interest
of the other Participant, however arising. 

          6.3      Elimination
of Minority Interest. 

                    (a)      A
Reduced Participant whose Recalculated Participating Interest becomes less than
ten percent (10%) shall be deemed to have withdrawn from the Business and shall
relinquish its entire Participating Interest free and clear of any Encumbrances
arising by, through or under the Reduced Participant, except any such
Encumbrances listed in Paragraph 1.1 of Exhibit A or to which the Participants
have agreed. Such relinquished Participating Interest shall be deemed to have
accrued automatically to the other Participant. Subject to Section 6.4, the
Reduced Participant shall thereafter have no further right, title, or interest
in the Assets, the Business, or under this Agreement, except that the Reduced
Participant shall have the right to receive a royalty equal to one percent (1%)
of Net Smelter Returns calculated as provided in Exhibit D. In such event, the
Reduced Participant shall execute and deliver an appropriate conveyance of all
of its right, title and interest in the Assets and the Business to the remaining
Participant. 

                    (b)      The
relinquishment, withdrawal and entitlements for which this Section provides
shall be effective as of the effective date of the recalculation under
Sections 9.5 or 10.5 and shall not be subject to subsequent recalculation.

          6.4      Continuing
Liabilities Upon Adjustments of Participating Interests. Any reduction
or elimination of either Participant’s Participating Interest under Section 6.2
shall not relieve such Participant of its share of any liability, including,
without limitation, Continuing Obligations, Environmental Liabilities and costs
of Environmental Compliance, whether arising, before or after such reduction or
elimination, out of its status as a Participant in the Business or out of
Operations conducted during the term of this Agreement but prior to such
reduction or elimination, regardless of when any funds may be expended to
satisfy such liability. For purposes of this Section, such Participant’s share
of such liability shall be equal to its Participating Interest at the time the
act or omission giving rise to the liability occurred, after first taking into
account any adjustment of Participating Interests under Sections 5.5, 6.3, 9.5,
9.6 and 10.5 (or, as to such liability arising out of acts or omissions
occurring or conditions existing prior to the Effective Date, equal to such
Participant’s initial Participating Interest). Should the cumulative cost of
satisfying Continuing Obligations be in excess of cumulative amounts accrued or
otherwise charged to the Environmental Compliance Fund as described in Exhibit
B, each of the Participants shall be liable for its proportionate share (i.e.,
Participating Interest at the time of the act or omission giving rise to such
liability occurred), after first taking into account any adjustment of
Participating Interests under Sections 5.5, 6.3, 9.5, 9.6 and 10.5, of the cost
of satisfying such Continuing Obligations, notwithstanding that either
Participant has previously 

13 

withdrawn from the Business or that its Participating Interest
has been reduced or converted to a Net Smelter Returns interest pursuant to
Subsection 6.3(a) . 

          6.5      Documentation
of Adjustments to Participating Interests. Adjustments to the
Participating Interests need not be evidenced during the term of this Agreement
by the execution and recording of appropriate instruments, but each
Participant’s Participating Interest and related Equity Account balance shall be
shown in the accounting records of the Manager, and any adjustments thereto,
including any adjustment of Participating Interests under Sections 5.5, 6.3,
9.5, 9.6 and 10.5, shall be made monthly. However, either Participant, at any
time upon the request of the other Participant, shall execute and acknowledge
instruments necessary to evidence such adjustments in form sufficient for filing
and recording in the jurisdiction where the Properties are located. 

          6.6      Grant
of Lien and Security Interest. 

                    (a)      Subject
to Section 6.7, each Participant grants to the other Participant a lien upon and
a security interest in its Participating Interest, including all of its right,
title and interest in the Assets, whenever acquired or arising, and the proceeds
from and accessions to the foregoing. 

                    (b)      The
liens and security interests granted by Subsection 6.6(a) shall secure every
obligation or liability of the Participant granting such lien or security
interest created under this Agreement, including the obligation to repay a Cover
Payment in accordance with Section 10.4. Each Participant hereby agrees to take
all action necessary to perfect such lien and security interest and hereby
appoints the other Participant its attorney-in-fact to execute, file and record
all financing statements and other documents necessary to perfect or maintain
such lien and security interest. 

          6.7      Subordination
of Interests. Each Participant shall, from time to time, take all
necessary actions, including execution of appropriate agreements, to pledge and
subordinate its Participating Interest, any liens it may hold which are created
under this Agreement other than those created pursuant to Section 6.6 hereof,
and any other right or interest it holds with respect to the Assets (other than
any statutory lien of the Manager) to any secured borrowings for Operations
approved by the Management Committee, including any secured borrowings relating
to Project Financing, and any modifications or renewals thereof. 

ARTICLE VII 
MANAGEMENT COMMITTEE 

          7.1      Organization
and Composition. The Participants hereby establish a Management
Committee to determine overall policies, objectives, procedures, methods and
actions under this Agreement. The Management Committee shall consist of two (2)
members appointed by Miranda and two (2) members appointed by BGEI. Each
Participant may appoint one or more alternates to act in the absence of a
regular member. Any alternate so acting shall be deemed a member. Appointments
by a Participant shall be made or changed by notice to the other members. BGEI
shall designate one of its members to serve as the chair of the Management
Committee. 

14 

          7.2      Decisions.
After the later to occur of (i) BGEI completing its Initial Contribution or (ii)
BGEI electing not to make or completing its Additional Earn-In, each
Participant, acting through its appointed members in attendance at the meeting,
shall have the votes on the Management Committee in proportion to its
Participating Interest. Unless otherwise provided in this Agreement, the vote of
the Participant with a Participating Interest over fifty (50%) shall determine
the decisions of the Management Committee. 

          7.3      Meetings.

                    (a)      After
the later to occur of (i) BGEI completing its Initial Contribution or
(ii) BGEI electing not to make or completing its Additional Earn-In, the
Management Committee shall hold regular meetings twice annually in Elko, Nevada,
or at other agreed places. The Manager shall give fifteen (15) days notice to
the Participants of such meetings. Additionally, either Participant may call a
special meeting upon ten (10) days notice to the other Participant. In case of
an emergency, reasonable notice of a special meeting shall suffice. There shall
be a quorum if at least one member representing each Participant is present;
provided, however, that if a Participant fails to attend a properly called
meeting, then a quorum shall exist at the next meeting if the other Participant
is represented by at least one appointed member, and a vote of such Participant
shall be considered the vote required for the purposes of the conduct of all
business properly noticed even if such vote would otherwise require unanimity.

                    (b)     
If business cannot be conducted at a regular or special meeting due to the lack
of a quorum, either Participant may call the next meeting upon two (2) days
notice to the other Participant. 

                    (c)      Each
notice of a meeting shall include an itemized agenda prepared by the Manager in
the case of a regular meeting or by the Participant calling the meeting in the
case of a special meeting, but any matters may be considered with the consent of
the other Participant. The Manager shall prepare minutes of all meetings and
shall distribute copies of such minutes to the other Participant within fifteen
(15) days after the meeting. Either Participant may electronically record the
proceedings of a meeting with the consent of the other Participant. The other
Participant shall sign and return or object to the minutes prepared by the
Manager within ten (10) days after receipt, and failure to do either shall be
deemed acceptance of the minutes as prepared by the Manager. The minutes, when
signed or deemed accepted by both Participants, shall be the official record of
the decisions made by the Management Committee. Decisions made at a Management
Committee meeting shall be implemented in accordance with adopted Programs and
Budgets. If a Participant timely objects to minutes proposed by the Manager, the
members of the Management Committee shall seek, for a period not to exceed
thirty (30) days from receipt by the Manager of notice of the objections, to
agree upon minutes acceptable to both Participants. If the Management Committee
does not reach agreement on the minutes of the meeting within such thirty (30)
day period, the minutes of the meeting as prepared by the Manager together with
the other Participant’s proposed changes shall collectively constitute the
record of the meeting. If personnel employed in Operations are required to
attend a Management Committee meeting, reasonable costs incurred in connection
with such attendance shall be charged to the Business Account. All other costs
shall be paid by the Participants individually. 

15 

          7.4     
Action Without Meeting in Person. In lieu of meetings in person, the
Management Committee may conduct meetings by telephone or video conference, so
long as minutes of such meetings are prepared in accordance with Subsection
7.3(c) . The Management Committee may also take actions in writing signed by all
members. 

          7.5      Matters
Requiring Approval. Except as provided in Subsection 5.1(c) and as
otherwise delegated to the Manager in Section 8.2, the Management Committee
shall have exclusive authority to determine all matters related to overall
policies, objectives, procedures, methods and actions under this Agreement. 

ARTICLE VIII 
MANAGER 

          8.1     
Appointment. The Participants hereby appoint BGEI as the Manager with
overall management responsibility for Operations. BGEI hereby agrees to serve
until it resigns as provided in Section 8.4. 

          8.2      Powers
and Duties of Manager. Subject to the terms and provisions of this
Agreement, the Manager shall have the following powers and duties, which shall
be discharged in accordance with adopted Programs and Budgets. 

                    (a)      The
Manager shall manage, direct and control Operations, and shall prepare and
present to the Management Committee proposed Programs and Budgets as provided in
Article IX. 

                    (b)     
The Manager shall implement the decisions of the Management Committee, shall
make all expenditures necessary to carry out adopted Programs, and shall
promptly advise the Management Committee if it lacks sufficient funds to carry
out its responsibilities under this Agreement. 

                    (c)      The
Manager shall use reasonable efforts to: (i) purchase or otherwise acquire all
material, supplies, equipment, water, utility and transportation services
required for Operations, such purchases and acquisitions to be made to the
extent reasonably possible on the best terms available, taking into account all
of the circumstances; (ii) obtain such customary warranties and guarantees as
are available in connection with such purchases and acquisitions; and (iii) keep
the Assets free and clear of all Encumbrances, except any such Encumbrances
listed in Paragraph 1.1 of Exhibit A and those existing at the time of, or
created concurrent with, the acquisition of such Assets, or mechanic’s or
materialmen’s liens (which shall be contested, released or discharged in a
diligent matter) or Encumbrances specifically approved by the Management
Committee. 

                    (d)     
The Manager shall conduct such title examinations of the Properties and cure
such title defects pertaining to the Properties as may be advisable in its
reasonable judgment. 

                    (e)      The
Manager shall: (i) make or arrange for all payments required by leases,
licenses, permits, contracts and other agreements related to the Assets; (ii)
pay all taxes, assessments and like charges on Operations and Assets except
taxes determined or measured by 

16 

a Participant’s sales revenue or net income and taxes,
including production taxes, attributable to a Participant’s share of Products,
and shall otherwise promptly pay and discharge expenses incurred in Operations;
provided, however, that if authorized by the Management Committee, the Manager
shall have the right to contest (in the courts or otherwise) the validity or
amount of any taxes, assessments or charges if the Manager deems them to be
unlawful, unjust, unequal or excessive, or to undertake such other steps or
proceedings as the Manager may deem reasonably necessary to secure a
cancellation, reduction, readjustment or equalization thereof before the Manager
shall be required to pay them, but the Manager shall not permit or allow title
to the Assets to be lost as the result of the nonpayment of any taxes,
assessments or like charges; and (iii) do all other acts reasonably necessary to
maintain the Assets. 

                    (f)      The
Manager shall: (i) apply for all necessary permits, licenses and approvals; (ii)
comply with all Laws; (iii) notify promptly the Management Committee of any
allegations of substantial violation thereof; and (iv) prepare and file all
reports or notices required for or as a result of Operations. The Manager shall
not be in breach of this provision if a violation has occurred in spite of the
Manager’s good faith efforts to comply consistent with its standard of care
under Section 8.3. In the event of any such violation, the Manager shall timely
cure or dispose of such violation on behalf of both Participants through
performance, payment of fines and penalties, or both, and the cost thereof shall
be charged to the Business Account. 

                    (g)      The
Manager shall prosecute and defend, but shall not initiate without consent of
the Management Committee, all litigation or administrative proceedings arising
out of Operations. The non-managing Participant shall have the right to
participate, at its own expense, in such litigation or administrative
proceedings. The non-managing Participant shall approve in advance any
settlement involving payments, commitments or obligations in excess of One
Hundred Thousand Dollars ($100,000.00) in cash or value. 

                    (h)     
The Manager shall provide insurance for the benefit of the Participants as
provided in Exhibit F or as may otherwise be determined from time to time by the
Management Committee. 

                    (i)      The
Manager may dispose of Assets, whether by abandonment, surrender, or Transfer in
the ordinary course of business, except that Properties may be abandoned or
surrendered only as provided in Article XIV. Without prior authorization from
the Management Committee, however, the Manager shall not: (i) dispose of Assets
in any one transaction (or in any series of related transactions) having a value
in excess of One Hundred Thousand Dollars ($100,000.00); (ii) enter into any
sales contracts or commitments for Product, except as permitted in Section 11.2;
(iii) begin a liquidation of the Business; or (iv) dispose of all or a
substantial part of the Assets necessary to achieve the purposes of the
Business. 

                    (j)      The
Manager shall have the right to carry out its responsibilities hereunder through
agents, Affiliates or independent contractors. 

                    (k)      The
Manager shall perform or cause to be performed all assessment and other work,
and shall pay all Governmental Fees required by Law in order to maintain the
unpatented mining claims, mill sites and tunnel sites included within the
Properties. The Manager shall have the right to perform the assessment work
required hereunder pursuant to a 

17 

common plan of exploration and continued actual occupancy of
such claims and sites shall not be required. The Manager shall not be liable on
account of any determination by any court or governmental agency that the work
performed by the Manager does not constitute the required annual assessment work
or occupancy for the purposes of preserving or maintaining ownership of the
claims, provided that the work done is pursuant to an adopted Program and Budget
and is performed in accordance with the Manager’s standard of care under Section
8.3. The Manager shall timely record with the appropriate county and file with
the appropriate United States agency any required affidavits, notices of intent
to hold and other documents in proper form attesting to the payment of
Governmental Fees, the performance of assessment work or intent to hold the
claims and sites, in each case in sufficient detail to reflect compliance with
the requirements applicable to each claim and site. The Manager shall not be
liable on account of any determination by any court or governmental agency that
any such document submitted by the Manager does not comply with applicable
requirements, provided that such document is prepared and recorded or filed in
accordance with the Manager’s standard of care under Section 8.3. 

                    (l)     
If authorized by the Management Committee, the Manager may: (i) locate, amend or
relocate any unpatented mining claim or mill site or tunnel site, (ii) locate
any fractions resulting from such amendment or relocation, (iii) apply for
patents or mining leases or other forms of mineral tenure for any such
unpatented claims or sites, (iv) abandon any unpatented mining claims for the
purpose of locating mill sites or otherwise acquiring from the United States
rights to the ground covered thereby, (v) abandon any unpatented mill sites for
the purpose of locating mining claims or otherwise acquiring from the United
States rights to the ground covered thereby, (vi) exchange with or convey to the
United States any of the Properties for the purpose of acquiring rights to the
ground covered thereby or other adjacent ground, and (vii) convert any
unpatented claims or mill sites into one or more leases or other forms of
mineral tenure pursuant to any Law hereafter enacted. 

                    (m)     
The Manager shall keep and maintain all required accounting and financial
records pursuant to the procedures described in Exhibit B and in accordance with
customary cost accounting practices in the mining industry, and shall ensure
appropriate separation of accounts unless otherwise agreed by the Participants.

                    (n)      The
Manager shall maintain Equity Accounts for each Participant. Each Participant’s
Equity Account shall be credited with the value of such Participant’s
contributions under Subsections 5.1(a) and 5.1(b) and shall be credited
with amounts contributed by such Participant under Sections 5.3 and 5.5. Each
Participant’s Equity Account shall be charged with the cash and the fair market
value of property distributed to such Participant (net of liabilities assumed by
such Participant and liabilities to which such distributed property is subject).
Contributions and distributions shall include all cash contributions or
distributions plus the agreed value (expressed in dollars) of all in-kind
contributions or distributions. Solely for purposes of determining the Equity
Account balances of the Participants, the Manager shall reasonably estimate the
fair market value of all Products distributed to the Participants, and such
estimated value shall be used regardless of the actual amount received by each
Participant upon disposition of such Products. 

18 

                    (o)      Subject
to Subsection 5.1(c), the Manager shall keep the Management Committee advised of
all Operations by submitting in writing to the members of the Management
Committee: (i) monthly progress reports that include statements of expenditures
and comparisons of such expenditures to the adopted Budget; (ii) periodic
summaries of data acquired; (iii) copies of reports concerning Operations; (iv)
a detailed final report within sixty (60) days after completion of each year or
a Program and Budget if for a period of less than one year, which shall include
comparisons between actual and budgeted expenditures and comparisons between the
objectives and results of Programs; and (v) such other reports as any member of
the Management Committee may reasonably request. Subject to Article XVIII, at
all reasonable times the Manager shall provide the Management Committee, or
other representative of a Participant upon the request of such Participant’s
member of the Management Committee, access to, and the right to inspect and, at
such Participant’s cost and expense, copies of the Existing Data and all maps,
drill logs and other drilling data, core, pulps, reports, surveys, assays,
analyses, production reports, operations, technical, accounting and financial
records, and other Business Information, to the extent preserved or kept by the
Manager, subject to Article XVIII. In addition, the Manager shall allow the
non-managing Participant, at the latter’s sole risk, cost and expense, and
subject to reasonable safety regulations, to inspect the Assets and Operations
at all reasonable times, so long as the non-managing Participant does not
unreasonably interfere with Operations. 

                    (p)      The
Manager shall prepare an Environmental Compliance plan for all Operations
consistent with the requirements of any applicable Laws or contractual
obligations and shall include in each Program and Budget sufficient funding to
implement the Environmental Compliance plan and to satisfy the financial
assurance requirements of any applicable Law or contractual obligation
pertaining to Environmental Compliance. To the extent practical, the
Environmental Compliance plan shall incorporate concurrent reclamation of
Properties disturbed by Operations. 

                    (q)     
The Manager shall undertake to perform Continuing Obligations when and as
economic and appropriate, whether before or after termination of the Business.
The Manager shall have the right to delegate performance of Continuing
Obligations to persons having demonstrated skill and experience in relevant
disciplines. As part of each Program and Budget submittal, the Manager shall
specify in such Program and Budget the measures to be taken for performance of
Continuing Obligations and the cost of such measures. The Manager shall keep the
other Participant reasonably informed about the Manager’s efforts to discharge
Continuing Obligations. Authorized representatives of each Participant shall
have the right from time to time to enter the Properties to inspect work
directed toward satisfaction of Continuing Obligations and audit books, records,
and accounts related thereto. 

                    (r)      The
funds that are to be deposited into the Environmental Compliance Fund shall be
maintained by the Manager in a separate, interest bearing cash management
account, which may include, but is not limited to, money market investments and
money market funds, and/or in longer term investments if approved by the
Management Committee. Such funds shall be used solely for Environmental
Compliance and Continuing Obligations, including the committing of such funds,
interests in property, insurance or bond policies, or other security to satisfy
Laws regarding financial assurance for the reclamation or restoration of the
Properties, and for other Environmental Compliance requirements. 

19 

                    (s)     
If Participating Interests are adjusted in accordance with this Agreement the
Manager shall propose from time to time one or more methods for fairly
allocating costs for Continuing Obligations. 

                    (t)     
The Manager shall undertake all other activities reasonably necessary to fulfill
the foregoing, and to implement the policies, objectives, procedures, methods
and actions determined by the Management Committee pursuant to Section 7.1. 

          8.3      Standard
of Care. The Manager shall discharge its duties under Section 8.2 and
conduct all Operations in a good, workmanlike and efficient manner, in
accordance with sound mining and other applicable industry standards and
practices, and in accordance with Laws and with the terms and provisions of
leases, licenses, permits, contracts and other agreements pertaining to the
Assets. The Manager shall not be liable to the other Participant for any act or
omission resulting in damage or loss except to the extent caused by or
attributable to the Manager’s willful misconduct or gross negligence. The
Manager shall not be in default of any of its duties under Section 8.2 if its
inability or failure to perform results from the failure of the other
Participant to perform acts or to contribute amounts required of it by this
Agreement. 

          8.4      Resignation;
Deemed Offer to Resign. The Manager may resign upon not less than three
(3) months’ prior notice to the other Participant, in which case the other
Participant may elect to become the new Manager by notice to the resigning
Participant within ten (10) days after the notice of resignation. If any of the
following shall occur, the Manager shall be deemed to have resigned upon the
occurrence of the event described in each of the following Subsections, with the
successor Manager to be appointed by the other Participant at a subsequently
called meeting of the Management Committee, at which the Manager shall not be
entitled to vote. The other Participant may appoint itself or a third party as
the Manager. 

                    (a)      The
aggregate Participating Interest of the Manager and its Affiliates becomes less
than fifty percent (50%); 

                    (b)      The
Manager fails to perform a material obligation imposed upon it under this
Agreement and such failure continues for a period of sixty (60) days after
notice from the other Participant demanding performance; 

                    (c)      The
Manager fails to pay or contest in good faith its bills and Business debts, or
the bills and Business Debts of the Business, as such obligations become due;

                    (d)      A
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for a substantial part of the Manager’s assets is appointed and such
appointment is neither made ineffective nor discharged within sixty (60) days
after the making thereof, or such appointment is consented to, requested by, or
acquiesced in by the Manager; 

                    (e)      The
Manager commences a voluntary case under any applicable bankruptcy, insolvency
or similar law now or hereafter in effect; or consents to the entry of an order
for relief in an involuntary case under any such law or to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or other similar official of any substantial part of its assets; or
makes a general assignment for the benefit of creditors; or takes corporate or
other action in furtherance of any of the foregoing; or 

20 

                    (f)      Entry
is made against the Manager of a judgment, decree or order for relief affecting
its ability to serve as Manager, or a substantial part of its Participating
Interest or its other assets by a court of competent jurisdiction in an
involuntary case commenced under any applicable bankruptcy, insolvency or other
similar law of any jurisdiction now or hereafter in effect. 

Under Subsections (d), (e) or (f) above, the appointment of a
successor Manager shall be deemed to pre-date the event causing a deemed
resignation. 

          8.5      Payments
To Manager. The Manager shall be compensated for its services and
reimbursed for its costs hereunder in accordance with Exhibit B. 

          8.6      Transactions
With Affiliates. If the Manager engages Affiliates to provide services
hereunder, it shall do so on terms no less favorable than would be the case in
arm’s-length transactions with unrelated persons. 

          8.7      Activities
During Deadlock. If the Management Committee for any reason fails to
adopt an Exploration, Pre-Feasibility Study, Feasibility Study or Development
Program and Budget, the Manager shall continue Operations at levels sufficient
to maintain the Properties. If the Management Committee for any reason fails to
adopt an initial Mining Program and Budget or any Expansion or Modification
Programs and Budgets, the Manager shall continue Operations at levels sufficient
to maintain the then current Operations and Properties. If the Management
Committee for any reason fails to adopt Mining Programs and Budgets subsequent
to the initial Mining Program and Budget, subject to the contrary direction of
the Management Committee and receipt of necessary funds, the Manager shall
continue Operations at levels comparable with the last adopted Mining Program
and Budget. All of the foregoing shall be subject to the contrary direction of
the Management Committee and the receipt of necessary funds. 

ARTICLE IX 
PROGRAMS AND BUDGETS 

          9.1      Initial
Program and Budget. Within sixty (60) days following the later to occur
of (i) BGEI’s completion of its Initial Contribution or (ii) BGEI’s election not
to make or completing its Additional Earn-In, BGEI shall propose an Initial
Program and Budget. 

          9.2      Operations
Pursuant to Programs and Budgets. Except as otherwise provided in
Subsection 5.1(c), Section 9.13, and Article XIII, Operations shall be
conducted, expenses shall be incurred, and Assets shall be acquired only
pursuant to adopted Programs and Budgets. Every Program and Budget adopted
pursuant to this Agreement shall provide for accrual of reasonably anticipated
Environmental Compliance expenses for all Operations contemplated under the
Program and Budget. 

          9.3      Presentation
of Programs and Budgets. Proposed Programs and Budgets shall be
prepared by the Manager for a period of one (1) year or any other period as
approved by the Management Committee, and shall be submitted to the Management
Committee for review and consideration. All proposed Programs and Budgets may
include Exploration, Pre-Feasibility Studies, Feasibility Study, Development,
Mining and Expansion or Modification Operations components, or any combination
thereof, and shall be reviewed and adopted upon a vote of the 

21 

Management Committee in accordance with Sections 7.2 and 9.4.
Each Program and Budget adopted by the Management Committee, regardless of
length, shall be reviewed at least once a year at a meeting of the Management
Committee. During the period encompassed by any Program and Budget, and at least
forty-five (45) days prior to its expiration, a proposed Program and Budget for
the succeeding period shall be prepared by the Manager and submitted to the
Management Committee for review and consideration. 

          9.4      Review
and Adoption of Proposed Programs and Budgets. Within thirty days after
submission of a proposed Program and Budget, each Participant shall submit in
writing to the Management Committee: 

                    (a)      Notice
that the Participant approves any or all of the components of the proposed
Program and Budget; 

                    (b)      Modifications
proposed by the Participant to the components of the proposed Program and
Budget; or 

                    (c)      Notice
that the Participant rejects any or all of the components of the proposed
Program and Budget. 

If a Participant fails to give any of the foregoing responses
within the allotted time, the failure shall be deemed to be a vote by the
Participant for adoption of the Manager’s proposed Program and Budget. If a
Participant makes a timely submission to the Management Committee pursuant to
Subsections 9.4(a), (b) or (c), then the Manager working with the other
Participant shall seek for a period of time not to exceed twenty (20) days to
develop a complete Program and Budget acceptable to both Participants. The
Manager shall then call a Management Committee meeting in accordance with
Section 7.3 for purposes of reviewing and voting upon the proposed Program and
Budget. 

          9.5      Election
to Participate. 

                    (a)      By
notice to the Management Committee within twenty (20) days after the final vote
adopting a Program and Budget, and notwithstanding its vote concerning adoption
of a Program and Budget, a Participant may elect to participate in the approved
Program and Budget: (i) in proportion to its respective Participating Interest,
(ii) in some lesser amount than its respective Participating Interest, or (iii)
not at all. In case of an election under Subsection 9.5(a)(ii) or (iii), its
Participating Interest shall be recalculated as provided in Subsection 9.5(b)
below, with dilution effective as of the first day of the Program Period for the
adopted Program and Budget. If a Participant fails to so notify the Management
Committee of the extent to which it elects to participate, the Participant shall
be deemed to have elected to contribute to such Program and Budget in proportion
to its respective Participating Interest as of the beginning of the Program
Period. 

                    (b)     
If a Participant elects to contribute to an adopted Program and Budget some
lesser amount than in proportion to its respective Participating Interest, or
not at all, and the other Participant elects to fund all or any portion of the
deficiency, the Participating Interest of the Reduced Participant shall be
provisionally recalculated as follows: 

22 

          (i)      for
an election made before Payout, by dividing: (A) the sum of the Reduced
Participant’s Equity Account at the conclusion of the Program Period for the
prior Program and Budget, and (2) the amount, if any, the Reduced Participant
elects to contribute to the adopted Program and Budget; by (B) the sum of (1)
and (2) above for both Participants; and then multiplying the result by one
hundred; or 

          (ii)      for
an election made after Payout, by reducing its Participating Interest in an
amount equal to two (2) times the amount by which it would have been reduced
under Subsection 9.5(b)(i) if such election were made before Payout. 

The Participating Interest of the other Participant shall be
increased by the amount of the reduction in the Participating Interest of the
Reduced Participant, and if the other Participant elects not to fund the entire
deficiency, the Manager shall adjust the Program and Budget to reflect the funds
available. 

                    (c)      Whenever
the Participating Interests are recalculated pursuant to this Subsection 9.5,
(i) the Equity Account of each Participant shall be revised so that the ratio of
the Participant’s Equity Account to the total amount of the Participants’ Equity
Accounts is equal to the Participant’s recalculated Participating Interest. 

          9.6      Recalculation
or Restoration of Reduced Interest Based on Actual Expenditures. 

                    (a)     
If a Participant makes an election under Subsection 9.5(a)(ii) or (iii), then
within sixty (60) days after the conclusion of such Program and Budget, the
Manager shall report the total amount of money expended plus the total
obligations incurred by the Manager for such Budget. 

                    (b)     
If the Manager expended or incurred obligations that were more or less than the
adopted Budget, the Participating Interests shall be recalculated pursuant to
Subsection 9.5(b) by substituting each Participant’s actual contribution to the
adopted Budget for that Participant’s estimated contribution at the time of the
Reduced Participant’s election under Subsection 9.5(a) . 

                    (c)     
If the Manager expended or incurred obligations of less than seventy-five
percent (75%) of the adopted Budget, then within twenty (20) days of receiving
the Manager’s report on expenditures, the Reduced Participant may notify the
other Participant of its election to reimburse the other Participant for the
difference between any amount contributed by the Reduced Participant to such
adopted Program and Budget and the Reduced Participant’s proportionate share (at
the Reduced Participant’s former Participating Interest) of the actual amount
expended or incurred for the Program, plus interest on the difference accruing
at the rate described in Section 10.3 plus five (5) percentage points.
The Reduced Participant shall deliver the appropriate amount (including
interest) to the other Participant with such notice. Failure of the Reduced
Participant to so notify and tender such amount shall result in dilution
occurring in accordance with this Article IX and shall bar the Reduced
Participant from its rights under this Subsection 9.6(c) concerning the relevant
adopted Program and Budget. 

23 

                    (d)     
All recalculations under this Article IX shall be effective as of the
first day of the Program Period for the Program and Budget. The Manager, on
behalf of both Participants, shall make such reimbursements, reallocations of
Products, contributions and other adjustments as are necessary so that, to the
extent possible, each Participant will be placed in the position it would have
been in had its Participating Interests as recalculated under this Section been
in effect throughout the Program Period for such Program and Budget. If the
Participants are required to make contributions, reimbursements or other
adjustments pursuant to this Section, the Manager shall have the right to
purchase or sell a Participant’s share of Products in the same manner as under
Section 11.2 and to apply the proceeds of such sale to satisfy that
Participant’s obligation to make such contributions, reimbursements or
adjustments. 

                    (e)      Whenever
the Participating Interests are recalculated pursuant to this Section, (i) the
Equity Account of each Participant shall be revised so that the ratio of the
Participant’s Equity Account to the total amount of the Participants’ Equity
Accounts is equal to the Participant’s recalculated Participating Interest. 

          9.7      Pre-Feasibility
Study Program and Budgets. 

                    (a)      At
such time as either Participant is of the good faith and reasonable opinion that
economically viable Mining Operations may be possible on the Properties, the
Participant may propose to the Management Committee that a Pre-Feasibility Study
Program and Budget, or a Program and Budget that includes Pre-Feasibility
Studies, be prepared. Such proposal shall be made in writing to the other
Participant, shall reference the data upon which the proposing Participant bases
its opinion, and shall call a meeting of the Management Committee pursuant to
Section 7.3. If such proposal is adopted by the Management Committee, the
Manager shall prepare or have prepared a Pre-Feasibility Study Program and
Budget as approved by the Management Committee and shall submit the same to the
Management Committee within ninety (90) days following adoption of the proposal.

                    (b)      Pre-Feasibility
Studies may be conducted by the Manager, Feasibility Contractors, or both, or
may be conducted by the Manager and audited by Feasibility Contractors, as the
Management Committee determines. A Pre-Feasibility Study Program shall include
the work necessary to prepare and complete the Pre-Feasibility Study approved in
the proposal adopted by the Management Committee, which may include some or all
of the following: 

          (i)      analyses
of various alternatives for mining, processing and beneficiation of Products;

          (ii)      analyses
of alternative mining, milling, and production rates; 

          (iii)      analyses
of alternative sites for placement of facilities (i.e., water supply facilities,
transport facilities, reagent storage, offices, shops, warehouses, stock yards,
explosives storage, handling facilities, housing, public facilities); 

          (iv)      analyses
of alternatives for waste treatment and handling (including a description of
each alternative of the method of tailings disposal and the location of the
proposed disposal site); 

24 

          (v)      estimates
of recoverable proven and probable reserves of Products and of related
substances, in terms of technical and economic constraints (extraction and
treatment of Products), including the effect of grade, losses, and impurities,
and the estimated mineral composition and content thereof, and review of mining
rates commensurate with such reserves; 

          (vi)      analyses
of environmental impacts of the various alternatives, including an analysis of
the permitting, environmental liability and other Environmental Law implications
of each alternative, and costs of Environmental Compliance for each alternative;

          (vii)      conduct
of appropriate metallurgical tests to determine the efficiency of alternative
extraction, recovery and processing techniques, including an estimate of water,
power, and reagent consumption requirements; 

          (viii)      conduct
of hydrology and other studies related to any required dewatering; and 

          (ix)      conduct
of other studies and analyses approved by the Management Committee. 

                    (c)      The
Manager shall have the discretion to base its and any Feasibility Contractors’
Pre-Feasibility Study on the cumulative results of each discipline studied, so
that if a particular portion of the work would result in the conclusion that
further work based on these results would be unwarranted for a particular
alternative, the Manager shall have no obligation to continue expenditures on
other Pre-Feasibility Studies related solely to such alternative. 

          9.8      Completion
of Pre-Feasibility Studies and Selection of Approved Alternatives. As
soon as reasonably practical following completion of all Pre-Feasibility Studies
required to evaluate fully the alternatives studied pursuant to Pre-Feasibility
Programs, the Manager shall prepare a report summarizing all Pre-Feasibility
Studies and shall submit the same to the Management Committee. Such report shall
incorporate the following: 

                    (a)      the
results of the analyses of the alternatives and other matters evaluated in the
conduct of the Pre-Feasibility Programs; 

                    (b)      reasonable
estimates of capital costs for the Development and start-up of the mine, mill
and other processing and ancillary facilities required by the Development and
Mining alternatives evaluated (based on flowsheets, piping and instrumentation
diagrams, and other major engineering diagrams), which cost estimates shall
include reasonable estimates of: 

          (i)      capitalized
pre-stripping expenditures, if an open pit or surface mine is proposed; 

          (ii)      expenditures
required to purchase, construct and install all machinery, equipment and other
facilities and infrastructure (including contingencies) required to bring a mine
into commercial production, including an 

25 

analysis of costs of equipment or supply contracts in lieu of Development costs for each Development and Mining alternative evaluated; 

           (iii)
  expenditures required to perform all other related work required to commence
  commercial production of Products and, if applicable, process Products (including
  reasonable estimates of working capital requirements); and 

           (iv)
  all other direct and indirect costs and general and administrative expenses
  that may be required for a proper evaluation of the Development and Mining alternatives
  and annual production levels evaluated. The capital cost estimates shall include
  a schedule of the timing of the estimated capital requirements for each alternative;

     (c) a reasonable estimate of the annual expenditures required for the first year of Operations after completion of the capital program described in Subsection 9.8(b) for each Development alternative evaluated, and for
subsequent years of Operations, including estimates of annual production, processing, administrative, operating and maintenance expenditures, taxes (other than income taxes), working capital requirements, royalty and purchase obligations, equipment
leasing or supply contract expenditures, work commitments, Environmental Compliance costs, post-Operations Environmental Compliance and Continuing Obligations funding requirements and all other anticipated costs of such Operations. This analysis
shall also include an estimate of the number of employees required to conduct such Operations for each alternative; 

     (d) a review of the nature, extent and rated capacity of the mine, machinery, equipment and other facilities preliminarily estimated to be required for the purpose of producing and marketing Products under each
Development and Mining alternative analyzed; 

     (e) an analysis (and sensitivity analyses reasonably requested by either Participant), based on various target rates of return and price assumptions reasonably requested by either Participant, of whether it is
technically, environmentally, and economically feasible to place a prospective ore body or deposit within the Properties into commercial production for each of the Development and Mining alternatives analyzed (including a discounted cash flow rate
of return investment analysis for each alternative and net present value estimate using various discount rates reasonably requested by either Participant); and 

      (f) such other information as
  the Management Committee deems appropriate. 

Within thirty (30) days after delivery of the Pre-Feasibility Study summary to the Participants, a Management Committee meeting shall be convened for the purposes of reviewing the Pre-Feasibility Study summary and selecting one or more Approved
Alternatives, if any. 

     9.9 Programs and Budgets for Feasibility Study. Within thirty (30) days following the selection of an Approved Alternative, the Manager shall submit to the Management Committee a Program and a
Budget, which shall include necessary Operations, for the preparation of a Feasibility Study.  A Feasibility Study may be prepared by the Manager, Feasibility Contractors, or both, or may be prepared by the Manager and audited by Feasibility
Contractors, as the Management Committee determines. 

 26 

          9.10      Development
Programs and Budgets; Project Financing. 

                    (a)      Unless
otherwise determined by the Management Committee, the Manager shall not submit
to the Management Committee a Program and Budget including Development of the
mine described in a completed Feasibility Study until sixty (60) days following
the receipt by Manager of the Feasibility Study. The Program and Budget, which
includes Development of the mine described in the completed Feasibility Study,
shall be based on the estimated cost of Development described in the Feasibility
Study for the Approved Alternative, unless otherwise directed by the Management
Committee. 

                    (b)      Promptly
following adoption of the Program and Budget, which includes Development as
described in a completed Feasibility Study, but in no event more than sixty (60)
days thereafter, the Manager shall submit to the Management Committee a report
on material bids received for Development work (“Bid Report”). If bids described
in the Bid Report result in the aggregate cost of Development work exceeding one
hundred thirty percent (130%) of the Development cost estimates that formed the
basis of the Development component of the adopted Program and Budget, the
Program and Budget, which includes relevant Development, shall be deemed to have
been resubmitted to the Management Committee based on the aggregate costs as
described in the Bid Report on the date of receipt of the Bid Report and shall
be reviewed and adopted in accordance with Sections 7.2 and 9.4. 

                    (c)      If
the Management Committee approves the Development of the mine described in a
Feasibility Study and also decides to seek Project Financing for such mine,
subject to the provisions of Section 5.5(c), each Participant shall, at its own
cost, cooperate in seeking to obtain Project Financing for such mine; provided,
however, that all fees, charges and costs (including attorneys and
technical consultants fees) paid to the Project Financing lenders shall be borne
by the Participants in proportion to their Participating Interests, unless such
fees are capitalized as a part of the Project Financing. 

          9.11      Expansion
or Modification Programs and Budgets. Any Program and Budget proposed
by the Manager involving Expansion or Modification shall be based on a
Feasibility Study prepared by the Manager, Feasibility Contractors, or both, or
prepared by the Manager and audited by Feasibility Contractors, as the
Management Committee determines. The Program and Budget, which include Expansion
or Modification, shall be submitted for review and approval by the Management
Committee within sixty (60) days following receipt by the Manager of such
Feasibility Study. 

          9.12      Budget
Overruns; Program Changes. For Programs and Budgets adopted after
completion of BGEI’s Initial Contribution, the Manager shall immediately notify
the Management Committee of any material departure from an adopted Program and
Budget. If the Manager exceeds an adopted Budget by more than ten (10%) in the
aggregate, then the excess over ten (10%), unless directly caused by an
emergency or unexpected expenditure made pursuant to Section 9.13 or unless
otherwise authorized or ratified by the Management Committee, shall be for the
sole account of the Manager and such excess shall not be included in the
calculations of the Participating Interests nor deemed a contribution under this
Agreement. Budget overruns of ten percent (10%) or less in the aggregate shall
be borne by the Participants in proportion to their respective Participating
Interests. 

27 

          9.13      E mergency
or Unexpected Expenditures. In case of emergency, the Manager may take
any reasonable action it deems necessary to protect life, the environment, or
property, to protect the Assets or to comply with Laws. The Manager may make
reasonable expenditures on behalf of the Participants for unexpected events that
are beyond its reasonable control and that do not result from a breach by it of
its standard of care. The Manager shall promptly notify the Participants of the
emergency or unexpected expenditure, and the Manager shall be reimbursed for all
resulting costs by the Participants in proportion to their respective
Participating Interests. 

ARTICLE X 
ACCOUNTS AND SETTLEMENTS 

          10.1      Monthly
Statements. After completion of BGEI’s Initial Contribution, the
Manager shall promptly submit to the Management Committee monthly statements of
account reflecting in reasonable detail the charges and credits to the Business
Account during the preceding month. 

          10.2      Cash
Calls. On the basis of each adopted Program and Budget, the Manager
shall submit prior to the last day of each month a billing for estimated cash
requirements for the next month. Within ten (10) days after receipt of each
billing, or a billing made pursuant to Section 9.13 or 12.4, each Participant
shall advance its proportionate share of such cash requirements. The Manager
shall record all funds received in the Business Account. The Manager shall at
all times maintain a cash balance approximately equal to the rate of
disbursement for up to ten (10) days. All funds in excess of immediate cash
requirements shall be invested by the Manager for the benefit of the Business in
cash management accounts and investments selected at the discretion of the
Manager, which accounts may include, but are not limited to, money market
investments and money market funds. 

          10.3      Failure
to Meet Cash Calls. A Participant that fails to meet cash calls in the
amount and at the times specified in Section 10.2 shall be in default, and the
amounts of the defaulted cash call shall bear interest from the date due at an
annual rate equal to five (5) percentage points over the Prime Rate, but in no
event shall the rate of interest exceed the maximum permitted by Law. Such
interest shall accrue to the benefit of and be payable to the non-defaulting
Participant, but shall not be deemed as amounts contributed by the
non-defaulting Participant in the event dilution occurs in accordance with this
Agreement. In addition to any other rights and remedies available to it by Law,
the non-defaulting Participant shall have those other rights, remedies, and
elections specified in Sections 10.4 and 10.5. 

          10.4      Cover
Payment. If a Participant defaults in making a contribution or cash
call required by an adopted Program and Budget, the non-defaulting Participant
may, but shall not be obligated to, advance some portion or all of the amount in
default on behalf of the defaulting Participant (a “Cover Payment”). Each and
every Cover Payment shall constitute a demand loan bearing interest from the
date of the advance at the rate provided in Section 10.3. If more than one Cover
Payment is made, the Cover Payments shall be aggregated and the rights and
remedies described herein pertaining to an individual Cover Payment shall apply
to the aggregated Cover Payments. The failure to repay such loan upon demand
shall be a default. 

28 

          10.5      Remedies.
The Participants acknowledge that if either Participant defaults in making a
contribution required by Article V or a cash call, or in repaying a loan, as
required under Sections 10.2, 10.3 or 10.4, whether or not a Cover Payment is
made, it will be difficult to measure the damages resulting from such default
(it being hereby understood and agreed that the Participants have attempted to
determine such damages in advance and determined that the calculation of such
damages cannot be ascertained with reasonable certainty). Both Participants
acknowledge and recognize that the damage to the non-defaulting Participant
could be significant. In the event of such default, as reasonable liquidated
damages, the non-defaulting Participant may, with respect to any such default
not cured within thirty (30) days after notice to the defaulting Participant of
such default, elect any of the following remedies by giving notice to the
defaulting Participant. Such election may be made with respect to each failure
to meet a cash call relating to a Program and Budget, regardless of the
frequency of such cash calls, provided such cash calls are made in accordance
with Section 10.2. 

                    (a)      The
defaulting Participant grants to the non-defaulting Participant a power of sale
as to all or any portion of its interest in any Assets or in its Participating
Interest that is subject to the lien and security interest granted in Section
6.6 (whether or not such lien and security interest has been perfected), upon a
default under Sections 10.3 or 10.4. Such power shall be exercised in the manner
provided by applicable Law or otherwise in a commercially reasonable manner and
upon reasonable notice. If the non-defaulting Participant elects to enforce the
lien or security interest pursuant to the terms of this Subsection, the
defaulting Participant shall be deemed to have waived any available right of
redemption, any required valuation or appraisal of the secured property prior to
sale, any available right to stay execution or to require a marshaling of
assets, and any required bond in the event a receiver is appointed, and the
defaulting Participant shall be liable for any deficiency. 

                    (b)      The
non-defaulting Participant may elect to have the defaulting Participant’s
Participating Interest diluted or eliminated as follows: 

          (i)      For
a default occurring before Payout relating to a Program and Budget covering in
whole or in part Exploration, Pre-Feasibility Study or Feasibility Study
Operations, the Reduced Participant’s Participating Interest shall be
recalculated by dividing: (X) the sum of the defaulting Participant’s Equity
Account at the conclusion of the Program Period for the prior Program and
Budget, and (2) the amount, if any, the defaulting Participant contributed to
the adopted Program and Budget with respect to which the default occurred; by
(Y) the sum of (1) and (2) above for both Participants; and then multiplying the
result by one hundred. For such a default occurring after Payout, the Reduced
Participant’s Participating Interest shall be reduced in an amount equal to two
(2) times the amount by which it would have been reduced if such default had
occurred before Payout. For such a default, whether occurring before or after
Payout, the Recalculated Participating Interest shall then be further reduced:

          (A)      for
a default relating exclusively to an Exploration Program and Budget, by
multiplying the Recalculated Participating Interest by the following percentage:
ten percent (10%); or 

29 

          (B)      for
a default relating to a Program and Budget covering in whole or in part
Pre-Feasibility Study and/or Feasibility Study Operations, by multiplying the
Recalculated Participating Interest by the following percentage: twenty-five
percent (25%). 

The Participating Interest of the other Participant shall be
increased by the amount of the reduction in the Participating Interest of the
Reduced Participant, including the further reduction under Subsections
10.5(b)(i)(A) or (B). 

          (ii)      For
a default relating to a Program and Budget covering in whole or in part
Development or Mining, at the non-defaulting Participant’s election, the
defaulting Participant shall be deemed to have withdrawn and to have
automatically relinquished its interest in the Assets to the non-defaulting
Participant; provided, however, the defaulting Participant shall have the right
to receive only from one percent (1%) of Net Proceeds, calculated as provided in
Exhibit E, if any, and not from any other source, an amount equal to
seventy-five percent (75%) of the defaulting Participant’s Equity Account
balance at the time of such default. Upon receipt of such amount the defaulting
Participant shall thereafter have no further right, title or interest in the
Assets, but shall remain liable to the extent provided in Section 6.4. 

          (iii)      Dilution
under this Subsection 10.5(b) shall be effective as of the date of the original
default, and Section 9.6 shall not apply. The amount of any Cover Payment under
Section 10.4 and interest thereon, or any interest accrued in accordance with
Section 10.3, shall be deemed to be amounts contributed by the non-defaulting
Participant, and not as amounts contributed by the defaulting Participant. 

          (iv)      Whenever
the Participating Interests are recalculated pursuant to this Subsection
10.5(b), (A) the Equity Account of each Participant shall be revised so that the
ratio of the Participant’s Equity Account to the total amount of the
Participants’ Equity Accounts is equal to the Participant’s recalculated
Participating Interest. 

                    (c)     
If a Participant has defaulted in meeting a cash call or repaying a loan, and if
the non-defaulting Participant has made a Cover Payment, then, in addition to a
reduction in the defaulting Participant’s Participating Interest effected
pursuant to Subsection 10.5(b), the non-defaulting Participant shall have the
right, if the indebtedness arising from a default or Cover Payment is not
discharged within ninety (90) days of the default and upon not less than thirty
(30) days advance notice to the defaulting Participant, to elect to purchase all
the right, title, and interest, whenever acquired or arising, of the defaulting
Participant in the Assets, including but not limited to its Participating
Interest or interest in Net Smelter Returns, together with all proceeds from and
accessions of the foregoing (collectively the “Defaulting Participant’s Entire
Interest”) at a purchase price equal to eighty-five percent (85%) of the fair
market value thereof as determined by a qualified independent appraiser
appointed by the non-defaulting Participant. If the defaulting Participant
conveys notice of objection to the person so appointed within ten (10) days
after receiving notice thereof, then an independent and qualified appraiser 

30 

shall be appointed by the joint action of the appraiser
appointed by the non-defaulting Participant and a qualified independent
appraiser appointed by the defaulting Participant; provided, however, that if
the defaulting Participant fails to designate a qualified independent appraiser
for such purpose within ten (10) days after giving notice of such objection,
then the person originally designated by the non-defaulting Participant shall
serve as the appraiser; provided further, that if the appraisers appointed by
each of the Participants fail to appoint a third qualified independent appraiser
within five (5) days after the appointment of the last of them, then an
appraiser shall be appointed by a judge of a court of competent jurisdiction in
the state in which the Assets are situated upon the application of either
Participant. There shall be withheld from the purchase price payable, upon
transfer of the Defaulting Participant’s Entire Interest, the amount of any
Cover Payment under Section 10.4 and unpaid interest thereon to the date of such
transfer, or any unpaid interest accrued in accordance with Section 10.3 to the
date of such transfer. Upon payment of such purchase price, the defaulting
Participant shall be deemed to have relinquished all of the Defaulting
Participant’s Entire Interest to the non-defaulting Participant, but shall
remain liable to the extent provided in Section 6.4. 

          10.6      Audits.

                    (a)      After
the later to occur of (i) BGEI’s completion of its Initial Contribution
or (ii) BGEI’s election not to make or completing its
Additional Earn-In, upon request made by any Participant made within twenty-four
(24) months following the end of any calendar year (or, if the Management
Committee has adopted an accounting period other than the calendar year, within
twenty-four (24) months after the end of such period), the Manager shall order
an audit of the accounting and financial records for such calendar year (or
other accounting period). All written exceptions to and claims upon the Manager
for discrepancies disclosed by such audit shall be made not more than three (3)
months after receipt of the audit report. Failure to make any such exception or
claim within the three (3) month period shall mean the audit is correct and
binding upon the Participants. The audits shall be conducted by a firm of
certified public accountants selected by the Manager, unless otherwise agreed by
the Management Committee. The cost of all audits under this Subsection shall be
charged to the Business Account. 

ARTICLE XI 
DISPOSITION OF PRODUCTION 

          11.1     
Taking In Kind. Each Participant shall take in kind or separately
dispose of its share of all Products in proportion to its Participating
Interest. Any extra expenditure incurred in the taking in kind or separate
disposition by either Participant of its proportionate share of Products shall
be borne by such Participant. Nothing in this Agreement shall be construed as
providing, directly or indirectly, for any joint or cooperative marketing or
selling of Products or permitting the processing of Products owned by any third
party at any processing facilities constructed by the Participants pursuant to
this Agreement. The Manager shall give notice in advance of the anticipated
delivery date upon which Products will be available. 

          11.2      Failure
of Participant to Take In Kind. If a Participant fails to take its
proportionate share of Products in kind, the Manager shall have the right, but
not the obligation, for a period of time consistent with the minimum needs of
the industry, but not to exceed one (1) year from the notice date described in
Section 11.1, to purchase the Participant’s share for its 

31 

own account or to sell such share as agent for the Participant
at not less than the prevailing market price in the area. Subject to the terms
of any such contracts of sale then outstanding, during any period that the
Manager is purchasing or selling a Participant’s share of production, the
Participant may elect by notice to the Manager to take in kind. The Manager
shall be entitled to deduct from proceeds of any sale by it for the account of a
Participant reasonable expenses incurred in such a sale. 

          11.3      Hedging.
Neither Participant shall have any obligation to account to the other
Participant for, nor have any interest or right of participation in any profits
or proceeds nor have any obligation to share in any losses from, futures
contracts, forward sales, trading in puts, calls, options or any similar
hedging, price protection or marketing mechanism employed by a Participant with
respect to its proportionate share of any Products produced or to be produced
from the Properties. 

ARTICLE XII 
WITHDRAWAL AND TERMINATION 

          12.1     
Termination by Expiration or Agreement. This Agreement shall terminate
as expressly provided herein, unless earlier terminated by written agreement.

          12.2      Termination
by Deadlock. If the Management Committee fails to adopt a Program and
Budget for twelve (12) months after the expiration of the latest adopted Program
and Budget, either Participant may elect to terminate the Business by giving
thirty (30) days notice of termination to the other Participant. 

          12.3      Withdrawal.
A Participant may elect to withdraw from the Business by (i) in the case of
BGEI, failing to complete its Initial Contributions as required by Subsection
5.1(b), or (ii) giving notice to the other Participant of the effective date of
withdrawal, which shall be the later of the end of the then current Program
Period or thirty (30) days after the date of the notice. Upon such withdrawal,
the Business shall terminate, and the withdrawing Participant shall be deemed to
have transferred to the remaining Participant all of its Participating Interest,
including all of its interest in the Assets, without cost and free and clear of
all Encumbrances arising by, through or under such withdrawing Participant,
except those described in Paragraph 1.1 of Exhibit A and those to which both
Participants have agreed. The withdrawing Participant shall execute and deliver
all instruments as may be necessary in the reasonable judgment of the other
Participant to effect the transfer of its interests in the Assets to the other
Participant. If within a sixty (60) day period both Participants elect to
withdraw, then the Business shall instead be deemed to have been terminated by
the consent of the Participants pursuant to Section 12.1. 

          12.4      Continuing
Obligations and Environmental Liabilities. On termination of the
Business under Sections 12.1, 12.2 or 12.3, each Participant shall remain liable
for its respective share of liabilities to third persons (whether such arises
before or after such withdrawal), including Environmental Liabilities and
Continuing Obligations. The withdrawing Participant’s share of such liabilities
shall be equal to its Participating Interest at the time such liability was
incurred, after first taking into account any adjustment of Participating
Interests under Sections 5.5, 6.3, 9.5, 9.6 and 10.5 (or, as to liabilities
arising prior to the Effective Date, its initial Participating Interest). 

32 

          12.5      Disposition
of Assets on Termination. Promptly after termination under Sections
12.1 or 12.2, the Manager shall take all action necessary to wind up the
activities of the Business. All costs and expenses incurred in connection with
the termination of the Business shall be expenses chargeable to the Business
Account. 

          12.6      Non-Compete
Covenants. Neither a Participant that withdraws pursuant to Section
12.3, or is deemed to have withdrawn pursuant to Sections 5.2, 6.3 or 10.5, nor
any Affiliate of such a Participant, shall directly or indirectly acquire any
interest or right to explore or mine, or both, on any property any part of which
is within the Area of Interest for twenty-four (24) months after the effective
date of withdrawal. If a withdrawing Participant, or the Affiliate of a
withdrawing Participant, breaches this Section 12.6, such Participant shall be
obligated to offer to convey to the non-withdrawing Participant, without cost,
any such property or interest so acquired (or ensure its Affiliate offers to
convey the property or interest to the non-withdrawing Participant, if the
acquiring party is the withdrawing Participant’s Affiliate). Such offer shall be
made in writing and can be accepted by the non-withdrawing Participant at any
time within ten (10) days after the offer is received by such non-withdrawing
Participant. Failure of a Participant’s Affiliate to comply with this Section
12.6 shall be a breach by such Participant of this Agreement. 

          12.7      Right
to Data After Termination. After termination of the Business pursuant
to Sections 12.1 or 12.2, each Participant shall be entitled to make copies of
all applicable information acquired hereunder before the effective date of
termination not previously furnished to it, but a terminating or withdrawing
Participant shall not be entitled to any such copies after any other termination
or withdrawal. 

          12.8      Continuing
Authority. On termination of the Business under Sections 12.1, 12.2 or
12.3 or the deemed withdrawal of either Participant pursuant to Sections 5.2 or
10.5, the Participant which was the Manager prior to such termination or
withdrawal (or the other Participant in the event of a withdrawal by the
Manager) shall have the power and authority to do all things on behalf of both
Participants which are reasonably necessary or convenient to: (a) wind up
Operations and (b) complete any transaction and satisfy any obligation,
unfinished or unsatisfied, at the time of such termination or withdrawal, if the
transaction or obligation arises out of Operations prior to such termination or
withdrawal. The Manager shall have the power and authority to grant or receive
extensions of time or change the method of payment of an already existing
liability or obligation, prosecute and defend actions on behalf of both
Participants and the Business, encumber Assets, and take any other reasonable
action in any matter with respect to which the former Participants continue to
have, or appear or are alleged to have, a common interest or a common liability.

ARTICLE XIII 
ACQUISITIONS WITHIN AREA OF INTEREST

          13.1      General.
Any interest or right to acquire any interest in real property or water rights
related thereto within the Area of Interest either acquired or proposed to be
acquired during the term of this Agreement by or on behalf of either Participant
(“Acquiring Participant”) or any Affiliate of such Participant shall be subject
to the terms and provisions of this Agreement. Miranda and BGEI and their
respective Affiliates for their separate account shall be 

33 

free to acquire lands and interests in lands outside the Area
of Interest and to locate mining claims outside the Area of Interest. Failure of
any Affiliate of either Participant to comply with this Article XIII shall be a
breach by such Participant of this Agreement. 

          13.2      Notice
to Non-Acquiring Participant. Within ten (10) days after the
acquisition or proposed acquisition, as the case may be, of any interest or the
right to acquire any interest in real property or water rights wholly or
partially within the Area of Interest (except real property acquired by the
Manager pursuant to a Program), the Acquiring Participant shall notify the other
Participant of such acquisition by it or its Affiliate; provided further that if
the acquisition of any interest or right to acquire any interest pertains to
real property or water rights partially within the Area of Interest, then all
such real property (i.e., the part within the Area of Interest and the part
outside the Area of Interest) shall be subject to this Article XIII. The
Acquiring Participant’s notice shall describe in detail the acquisition, the
acquiring party if that party is an Affiliate, the lands and minerals covered
thereby, any water rights related thereto, the cost thereof, and the reasons why
the Acquiring Participant believes that the acquisition (or proposed
acquisition) of the interest is in the best interests of the Participants under
this Agreement. In addition to such notice, the Acquiring Participant shall make
any and all information concerning the relevant interest available for
inspection by the other Participant. 

          13.3      Option
Exercised. Within thirty (30) days after receiving the Acquiring
Participant’s notice, the other Participant may notify the Acquiring Participant
of its election to accept a proportionate interest in the acquired interest
equal to its Participating Interest. Promptly upon such notice, the Acquiring
Participant shall convey or cause its Affiliate to convey to the Participants,
in proportion to their respective Participating Interests, by special warranty
deed with title held as described in Section 3.4, all of the Acquiring
Participant’s (or its Affiliate’s) interest in such acquired interest, free and
clear of all Encumbrances arising by, through or under the Acquiring Participant
(or its Affiliate) other than those to which both Participants have agreed. The
acquired interests shall become a part of the Properties for all purposes of
this Agreement immediately upon such notice. The other Participant shall
promptly pay to the Acquiring Participant its proportionate share of the
latter’s actual out-of-pocket acquisition costs. 

          13.4      Option
Not Exercised. If the other Participant does not give such notice
within the thirty (30) day period set forth in Section 13.3, it shall have no
interest in the acquired interests, and the acquired interests shall not be a
part of the Assets or continue to be subject to this Agreement. 

ARTICLE XIV 
ABANDONMENT AND SURRENDER OF
PROPERTIES 

          Either
Participant may request the Management Committee to authorize the Manager to
surrender or abandon part or all of the Properties. If the Management Committee
does not authorize such surrender or abandonment, or authorizes any such
surrender or abandonment over the objection of either Participant, the
Participant that desires to surrender or abandon shall assign to the objecting
Participant, by special warranty deed and without cost to the objecting
Participant, all of the abandoning Participant’s interest in the Properties
sought to be abandoned or surrendered, free and clear of all Encumbrances
created by, through or under the abandoning Participant other than those to
which both Participants have agreed. Upon the assignment, such properties shall
cease to 

34 

be part of the Properties. The Participant that desires to
abandon or surrender shall remain liable for its share (determined by its
Participating Interest as of the date of such abandonment, after first taking
into account any adjustment of Participating Interests under Sections 5.5, 6.3,
9.5, 9.6 and 10.5) of any liability with respect to such Properties, including,
without limitation, Continuing Obligations, Environmental Liabilities and costs
of Environmental Compliance, whether accruing before or after such abandonment,
arising out of activities prior to the Effective Date and out of Operations
conducted prior to the date of such abandonment, regardless of when any funds
may be expended to satisfy such liability. 

ARTICLE XV 
SUPPLEMENTAL BUSINESS AGREEMENT

          At
any time during the term of this Agreement, the Management Committee may
determine by unanimous vote of both Participants after the later to occur of (i)
BGEI’s completion of its Initial Contribution or (ii) BGEI’s election not to
make or completion of its Additional Earn-In that it is appropriate to segregate
the Area of Interest into areas subject to separate Programs and Budgets for
purposes of conducting further Exploration, Pre-Feasibility or Feasibility
Studies, Development, or Mining. At such time, the Management Committee shall
designate which portion of the Properties will comprise an area of interest
under a separate business arrangement (“Supplemental Business”), and the
Participants shall enter into a new agreement (“Supplemental Business
Agreement”) for the purpose of further exploring, analyzing, developing, and
mining such portion of the Properties. The Supplemental Business Agreement shall
be in substantially the same form as this Agreement, with rights and interests
of the Participants in the Supplemental Business identical to the rights and
interests of the Participants in this Business at the time of the designation,
unless otherwise agreed by the Participants, and with the Participants agreeing
to new Capital and Equity Accounts and other terms necessary for the
Supplemental Business Agreement to comply with the nature and purpose of the
designation. Following execution of the Supplemental Business Agreement, this
Agreement shall terminate insofar as it affects the Properties covered by the
Supplemental Business Agreement. 

ARTICLE XVI 
TRANSFER OF INTEREST; PREEMPTIVE RIGHT

          16.1      General.
A Participant shall have the right to Transfer to a third party an interest in
its Participating Interest, including an interest in this Agreement or the
Assets, solely as provided in this Article XVI. 

          16.2      Limitations
on Free Transferability. Any Transfer by either Participant under
Section 16.1 shall be subject to the following limitations: 

                    (a)      Neither
Participant shall Transfer any interest in this Agreement or the Assets
(including, but not limited to, any royalty, profits, or other interest in the
Products, other than the sale of a Participant’s share of the Products in the
normal course of business) except in conjunction with the Transfer of part or
all of its Participating Interest. 

                    (b)      No
transferee of all or any part of a Participant’s Participating Interest shall
have the rights of a Participant unless and until the transferring Participant
has provided to 

35 

the other Participant notice of the Transfer, and, except as
provided in Subsections 16.2(f) and 16.2(g), the transferee, as of the effective
date of the Transfer, has committed in writing to assume and be bound by this
Agreement to the same extent as the transferring Participant. 

                    (c)      Neither
Participant, without the consent of the other Participant, shall make a Transfer
that shall violate any Law, or result in the cancellation of any permits,
licenses, or other similar authorization. 

                    (d)      No
Transfer permitted by this Article XVI shall relieve the transferring
Participant of its share of any liability, whether accruing before or after such
Transfer, which arises out of Operations conducted prior to such Transfer or
exists on the Effective Date. 

                    (e)      In
the event of a Transfer of less than all of a Participating Interest, the
transferring Participant and its transferee shall act and be treated as one
Participant; provided however, that in order for such Transfer to be effective,
the transferring Participant and its transferee must first: 

          (i)
a     gree, as between themselves, that one of them is
authorized to act as the sole agent (“Agent”) on their behalf with respect to
all matters pertaining to this Agreement and the Business; and 

          (ii)      notify
the other Participant of the designation of the Agent, and in such notice
warrant and represent to other Participant that: 

          (A)      the
Agent has the sole authority to act on behalf of, and to bind, the transferring
Participant and its transferee with respect to all matters pertaining to this
Agreement and the Business; 

          (B)      the
other Participant may rely on all decisions of, notices and other communications
from, and failures to respond by, the Agent, as if given (or not given) by the
transferring Participant and its transferee; and 

          (C)      all
decisions of, notices and other communications from, and failures to respond by,
the other Participant to the Agent shall be deemed to have been given (or not
given) to the transferring Participant and its transferee. 

The transferring Participant and its transferee may change the
Agent (but such replacement must be one of them) by giving notice to the other
Participant, which notice must conform to Subsection 16.2(e)(ii) . 

                    (f)     
If the Transfer is the grant of an Encumbrance in a Participating Interest to
secure a loan or other indebtedness of either Participant in a bona fide
transaction, other than a transaction approved unanimously by the Management
Committee or Project Financing approved by the Management Committee, such
Encumbrance shall be granted only in connection with such Participant’s
financing payment or performance of that Participant’s obligations under this
Agreement and shall be subject to the terms of this Agreement and the rights and
interests of 

36 

the other Participant hereunder (including without limitation
under Section 6.7) . Any such Encumbrance shall be further subject to the
condition that the holder of such Encumbrance (“Chargee”) first enter into a
written agreement with the other Participant in form satisfactory to the other
Participant, acting reasonably, binding upon the Chargee, to the effect that:

          (i)      the
Chargee shall not enter into possession or institute any proceedings for
foreclosure or partition of the encumbering Participant’s Participating Interest
and that such Encumbrance shall be subject to the provisions of this Agreement;

          (ii)     
the Chargee’s remedies under the Encumbrance shall be limited to the sale of the
whole (but only of the whole) of the encumbering Participant’s Participating
Interest to the other Participant, or, failing such a sale, at a public auction
to be held at least thirty (30) days after prior notice to the other
Participant, such sale to be subject to the purchaser entering into a written
agreement with the other Participant whereby such purchaser assumes all
obligations of the encumbering Participant under the terms of this Agreement.
The price of any preemptive sale to the other Participant shall be the remaining
principal amount of the loan plus accrued interest and related expenses, and
such preemptive sale shall occur within sixty (60) days of the Chargee’s notice
to the other Participant of its intent to sell the encumbering Participant’s
Participating Interest. Failure of a sale to the other Participant to close by
the end of such period, unless failure is caused by the encumbering Participant
or by the Chargee, shall permit the Chargee to sell the encumbering
Participant’s Participating Interest at a public sale; and 

          (iii)     
the charge shall be subordinate to any then-existing debt, including Project
Financing previously approved by the Management Committee, encumbering the
transferring Participant’s Participating Interest; 

                    (g)     
If a sale or other commitment or disposition of Products or proceeds from the
sale of Products by either Participant upon distribution to it pursuant to
Article XI creates in a third party a security interest by Encumbrance in
Products or proceeds therefrom prior to such distribution, such sales,
commitment or disposition shall be subject to the terms and conditions of this
Agreement including, without limitation, Section 6.7. 

          16.3     
Preemptive Right. Any Transfer by either Participant under Section 16.1
and any Transfer by an Affiliate of Control of either Participant, whether the
Transfer is part of a transaction involving other assets or business interests
or not, shall be subject to a preemptive right of the other Participant to the
extent provided in Exhibit G. Failure of a Participant’s Affiliate to comply
with this Article XVI and Exhibit G shall be a breach by such Participant of
this Agreement. 

37 

ARTICLE XVII 
DISPUTES 

          17.1      Governing
Law. Except for matters of title to the Properties or their Transfer,
which shall be governed by the law of their situs, this Agreement shall be
governed by and interpreted in accordance with the laws of the State of Nevada,
without regard for any conflict of laws or choice of laws principles that would
permit or require the application of the laws of any other jurisdiction. 

          17.2      Forum
Selection. Each Participant irrevocably and unconditionally submits to
non-exclusive jurisdiction of the state and federal courts in the State of
Nevada and the appropriate courts of appeal from such courts for enforcing any
decision issued by an arbitrator pursuant to Sections 17.3 or 17.4 of this
Agreement or for any other matter concerning this Agreement or the transactions
contemplated hereby. 

          17.3      Dispute
Resolution. Any dispute, controversy or claims arising out of or
relating to this Agreement or the breach, termination, interpretation or
invalidity thereof (a “Dispute”) shall be resolved as follows: 

                    (a)      The
Participants shall endeavor for a period of two (2) weeks to resolve the Dispute
by negotiation. This period may be extended by agreement of the Participants.

                    (b)      If
negotiations are unsuccessful, the Participants shall, at the request of either
Participant, attempt to mediate the Dispute before a mutually acceptable
mediator. The mediation shall be completed within three (3) weeks of the request
for mediation unless the Participants extend the period in writing. 

                    (c)     
In the event the Dispute is not successfully mediated, the Participants agree to
submit the Dispute to binding arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association. The arbitration shall
be administered by the American Arbitration Association. Unless otherwise agreed
by the Participants, there shall be one (1) arbitrator who shall be a person
with an expertise or background in the subject matter of the Dispute. If the
Participants are unable to select an arbitrator within thirty (30) days of the
notice of arbitration, the arbitrator shall be selected by the American
Arbitration Association. The place of arbitration shall be Salt Lake City, Utah,
or another location mutually agreed upon by the Participants. The arbitrator
shall render a decision in writing not more than six (6) months after the
appointment of the arbitrator. The arbitrator’s decision shall be final and
binding on the Participants and not subject to appeal or review. The prevailing
Participant shall be entitled to an award of costs and attorneys’ fees unless
the arbitrator determines that each Participant should bear its own costs and
share the common costs of arbitration. 

          17.4      Multi-Party
Disputes. In the event that a Dispute between the Participants arises
out of or is related to a dispute between one of the Participants and a third
party relating to the Business or the subject matter of the Agreement (“Related
Party Dispute”) and there are common issues of law or fact so that there is a
possibility of conflicting rulings if the Dispute and the Related Party Dispute
are decided in more than one proceeding, the Participants agree as follows. 

38 

                    (a)      At
the request of any Participant, the Dispute and the Related Party Dispute(s)
shall be consolidated and determined by a single arbitrator in a single
arbitration proceeding pursuant to the Commercial Arbitration Rules of the
American Arbitration Association. The arbitration shall be administered by the
American Arbitration Association. 

                    (b)      Any
Participant seeking consolidation shall give written notice of a request for
consolidation to all parties sought to be consolidated (the “Parties”) within
fifteen (15) days of the notice of arbitration. 

                    (c)      If
the all Parties are not able to agree upon the selection of an arbitrator to
hear the consolidated matter within thirty (30) days after the request for
consolidation, the arbitrator shall be selected by the American Arbitration
Association. The place of the arbitration shall be Salt Lake City, Utah, or
another location mutually agreed upon by all Parties. 

                    (d)      The
arbitrator shall render a written decision not more than six (6) months after
appointment of the arbitrator. The arbitrator’s decision shall be final and
binding on the Participants and the third party Parties and not subject to
appeal or review. 

                    (e)     
The provisions of this Section shall not apply unless the Related Party Dispute
arises under a contract containing a multi-party dispute resolution clause
similar in effect to this Section. 

ARTICLE XVIII 
CONFIDENTIALITY, OWNERSHIP, USE AND
DISCLOSURE OF INFORMATION 

          18.1      Business
Information. All Business Information shall be owned jointly by the
Participants as their Participating Interests are determined pursuant to this
Agreement. Both before and after the termination of the Business, all Business
Information may be used by either Participant for any purpose, whether or not
competitive with the Business, without consulting with, or obligation to, the
other Participant. Except as provided in Sections 18.3 and 18.4, or with the
prior written consent of the other Participant, each Participant shall keep
confidential and not disclose to any third party or the public any portion of
the Business Information that constitutes Confidential Information. 

          18.2      Participant
Information. In performing its obligations under this Agreement,
neither Participant shall be obligated to disclose any Participant Information.
If a Participant elects to disclose Participant Information in performing its
obligations under this Agreement, such Participant Information, together with
all improvements, enhancements, refinements and incremental additions to such
Participant Information that are developed, conceived, originated or obtained by
either Participant in performing its obligations under this Agreement
(“Enhancements”), shall be owned exclusively by the Participant that originally
developed, conceived, originated or obtained such Participant Information. Each
Participant may use and enjoy the benefits of such Participant Information and
Enhancements in the conduct of the Business hereunder, but the Participant that
did not originally develop, conceive, originate or obtain such Participant
Information may not use such Participant Information and Enhancements for any
other purpose. Except as provided in Section 18.4, or with the prior written
consent of the other Participant, which consent may be withheld in such
Participant’s sole discretion, each 

39 

Participant shall keep confidential and not disclose to any
third party or the public any portion of Participant Information and
Enhancements owned by the other Participant that constitutes Confidential
Information. 

          18.3      Permitted
Disclosure of Confidential Business Information. Either Participant may
disclose Business Information that is Confidential Information: (a) to a
Participant’s officers, directors, partners, members, employees, Affiliates,
shareholders, agents, attorneys, accountants, consultants, contractors,
subcontractors or advisors, for the sole purpose of such Participant’s
performance of its obligations under this Agreement; (b) to any party to whom
the disclosing Participant contemplates a Transfer of all or any part of its
Participating Interest, for the sole purpose of evaluating the proposed
Transfer; (c) to any actual or potential lender, underwriter or investor for the
sole purpose of evaluating whether to make a loan to or investment in the
disclosing Participant; or (d) to a third party with whom the disclosing
Participant contemplates any independent business activity or operation. 

          The
Participant disclosing Confidential Information pursuant to this Section 18.3,
shall disclose such Confidential Information to only those parties who have a
bona fide need to have access to such Confidential Information for the purpose
for which disclosure to such parties is permitted under this Section 18.3. Prior
to making any such disclosure, the Participant disclosing Confidential
Information pursuant to this Section 18.3 also (i) shall take reasonable
measures to ensure that the parties identified in Section 18.3(a) are aware of
and comply with the obligations of confidentiality of this Agreement, and (ii)
shall obtain and provide to the other Participant a written agreement
enforceable by the other Participant from those parties identified in Section
18.3(b), (c), or (d) that such parties will comply with the obligations of
confidentiality of this Agreement. Such writing shall not preclude parties
described in Subsection 18.3(b) from discussing and completing a Transfer with
the other Participant. The Participant disclosing Confidential Information shall
be responsible and liable for any use or disclosure of the Confidential
Information by such parties in violation of this Agreement and such other
writing. 

          18.4      Disclosure
Required By Law. Notwithstanding anything contained in this Article
XVIII, a Participant may disclose any Confidential Information if, in the
opinion of the disclosing Participant’s legal counsel: (a) such disclosure is
legally required to be made in a judicial, administrative or governmental
proceeding pursuant to a valid subpoena or other applicable order; or (b) such
disclosure is legally required to be made pursuant to the rules or regulations
of a stock exchange or similar trading market applicable to the disclosing
Participant. 

          Prior
to any disclosure of Confidential Information under this Section 18.4, the
disclosing Participant shall give the other Participant at least ten (10) days
prior written notice (unless less time is permitted by such rules, regulations
or proceeding) and, in making such disclosure, the disclosing Participant shall
disclose only that portion of Confidential Information required to be disclosed
and shall take all reasonable steps to preserve the confidentiality thereof,
including, without limitation, obtaining protective orders and supporting the
other Participant in intervention in any such proceeding. 

          18.5      Public
Announcements. Prior to making or issuing any press release or other
public announcement or disclosure of Business Information that is not
Confidential Information, a Participant shall first consult with the other
Participant as to the content and timing of such 

40 

announcement or disclosure, unless in the good faith judgment
of such Participant, there is not sufficient time to consult with the other
Participant before such announcement or disclosure must be made under applicable
Laws; but in such event, the disclosing Participant shall notify the other
Participant, as soon as possible, of the pendency of such announcement or
disclosure, and it shall notify the other Participant before such announcement
or disclosure is made if at all reasonably possible. Any press release or other
public announcement or disclosure to be issued by either Participant relating to
this Business shall also identify the other Participant. 

ARTICLE XIX 
GENERAL PROVISIONS 

          19.1      Notices.
All notices, payments and other required or permitted communications (“Notices”)
to either Participant shall be in writing, and shall be addressed respectively
as follows: 

	If to Miranda: 	________________________________________________________________________
	  	________________________________________________________________________ 
    
	  	________________________________________________________________________
	  	Attention:
      ________________________________________________________________
	  	Telephone:________________________________________________________________
    
	  	Facsimile: 
      ________________________________________________________________
	  	  
	With a copy to: 	________________________________________________________________________
	  	________________________________________________________________________
	  	________________________________________________________________________
	  	  
	If TO BGEI: 	Edward L. Cope 
	  	Vice President of Exploration, USA 
	  	293 Spruce Road 
	  	Elko, Nevada 89801-4491 
	  	Telephone: (775) 738-2062 
	  	Fax: (775) 738-2804 
	  	ecope@barrick.com
      
	  	  
	With a copy to: 	Barrick Gold of North America, Inc. 
	  	136 East South Temple Street, Suite 1300 
	  	Salt Lake City, Utah 84111 
	  	Telephone: (801) 990-3900 
	  	Fax (801) 366-9242 
	  	Attention: Land Manager, United States 
	  	bhouston@barrick.com 

All Notices shall be given (a) by personal delivery to the
Participant, (b) by electronic communication, capable of producing a printed
transmission, (c) by registered or certified mail return receipt requested; or
(d) by overnight or other express courier service. All Notices shall be
effective and shall be deemed given on the date of receipt at the principal
address if received during normal business hours, and, if not received during
normal business hours, on the next business day 

41 

following receipt, or if by electronic communication, on the
date of such communication. Either Participant may change its address by Notice
to the other Participant. 

          19.2      Gender.
The singular shall include the plural, and the plural the singular, wherever the
context so requires, and the masculine, the feminine, and the neuter genders
shall be mutually inclusive. 

          19.3      Currency.
All references to “dollars” or “$” herein shall mean lawful currency of the
United States of America. 

          19.4     
Headings. The subject headings of the Sections and Subsections of this
Agreement and the Paragraphs and Subparagraphs of the Exhibits to this Agreement
are included for purposes of convenience only, and shall not affect the
construction or interpretation of any of its provisions. 

          19.5     
Waiver. The failure of either Participant to insist on the strict
performance of any provision of this Agreement or to exercise any right, power
or remedy upon a breach hereof shall not constitute a waiver of any provision of
this Agreement or limit such Participant’s right thereafter to enforce any
provision or exercise any right. 

          19.6     
Modification. No modification of this Agreement shall be valid unless
made in writing and duly executed by both Participants. 

          19.7      Force
Majeure. Except for the obligation to make payments when due hereunder,
neither Participant shall be liable for its failure to perform any of its
obligations hereunder during any period in which performance is delayed by fire,
flood, earthquake or other natural disaster, war, embargo, riot, the
intervention of any government authority, the inability to obtain on reasonably
acceptable terms any public or private license, permit or other authorization,
the curtailment or suspension of activities to remedy or avoid an actual or
alleged, present or prospective violation of Environmental Laws, or the action
or inaction by any federal, state or local agency that delays or prevents the
issuance or granting of any approval or authorization required to conduct
Operations beyond the reasonable expectations of the Participant seeking the
approval or authorization (including, without limitation, a failure to complete
any review and analysis required by the National Environmental Policy Act or any
similar state law within three (3) years of initiation of that process) provided
that the Participant suffering such delay immediately notifies the other
Participant in writing of the delay and in such notice states the nature of the
suspension, the reasons therefore, and the expected duration thereof. The
affected Participant shall resume performance as soon as reasonably possible.
During the period of suspension the obligations of both Participants to advance
funds pursuant to Section 10.2 shall be reduced to levels consistent with then
current Operations. 

          19.8     
Rule Against Perpetuities. The Participants do not intend that there
shall be any violation of the Rule Against Perpetuities, the Rule Against
Unreasonable Restraints on the Alienation of Property, or any similar rule.
Accordingly, if any right or option to acquire any interest in the Properties,
in a Participating Interest, in the Assets, or in any real property exists under
this Agreement, such right or option must be exercised, if at all, so as to vest
such interest within time periods permitted by applicable rules. If, however,
any such violation should 

42 

inadvertently occur, the Participants hereby agree that a court
shall reform that provision in such a way as to approximate most closely the
intent of the Participants within the limits permissible under such rules. 

          19.9      Further
Assurances. Each of the Participants shall take, from time to time and
without additional consideration, such further actions and execute such
additional instruments as may be reasonably necessary or convenient to implement
and carry out the intent and purpose of this Agreement or as may be reasonably
required by lenders in connection with Project Financing. 

          19.10      Entire
Agreement; Successors and Assigns. This Agreement contains the entire
understanding of the Participants and supersedes all prior agreements and
understandings between the Participants relating to the subject matter hereof.
This Agreement shall be binding upon and inure to the benefit of the respective
successors and permitted assigns of the Participants. 

          19.11      Memorandum.
At the request of either Participant, a Memorandum or short form of this
Agreement, or a Financing Statement(s) (to which copies of the Memorandum or
short form of this Agreement shall be attached) shall be prepared by the
Manager, executed and acknowledged by both Participants, and delivered to the
Manager for recording and filing in those appropriate recording districts and
Uniform Commercial Code filing offices as may be necessary to provide
constructive notice of this Agreement and the rights and obligations of the
Participants hereunder. The Manager shall record and file in the proper
recording districts, county recording offices and Uniform Commercial Code filing
offices, all such documents delivered to it by the Participants. Unless both
Participants agree, this Agreement shall not be recorded. 

          19.12      Counterparts.
This Agreement may be executed in any number of counterparts, and it shall not
be necessary that the signatures of both Participants be contained on any
counterpart. Each counterpart shall be deemed an original, but all counterparts
together shall constitute one and the same instrument. 

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
Effective Date. 

	 	Miranda Gold Corp.
  
	 	 	 
	 	 	 
	 	By 	
	 	 	President 
	 	 	 
	 	 	 
	 	Miranda U.S.A. Inc.
  
	 	 	 
	 	 	 
	 	By 	
	 	 	President 

43 

	 	Barrick Gold
      Exploration Inc. 
	 	 	  
	 	 	  
	 	By 	
	 	 	Edward L. Cope 
	 	 	Vice President Exploration, USA

44 

EXHIBIT A 

To 
EXPLORATION, DEVELOPMENT AND MINE OPERATING AGREEMENT

By And Between 

MIRANDA GOLD CORP. 

MIRANDA U.S.A., INC. 

AND 

BARRICK GOLD EXPLORATION INC. 

ASSETS AND AREA OF INTEREST 

PART 1.1: PROPERTIES AND TITLE
EXCEPTIONS: 

Unpatented mining claims covered by the “Miller Mining Lease”,
a copy of which Mining Lease is attached hereto as Exhibit A Part 1.3, complete
with attached Exhibits thereto, and forming a part hereof, to wit:

The following listed 139 mining claims located within portions
of Sections 21, and 27 through 34, T.28N. R.45E., M.D.M.; Sections 25 and 36,
T.28N. R.44E., M.D.M., Lander County, Nevada, more particularly described:

	CLAIM 	LOCATION 	 FILED 	COUNTY RECORDER 	FILED 	BLM SERIAL NO 
	NAME 	DATE 	COUNTY 	BOOK/PAGE 	BLM 	NMC 
	  	  	  	  	  	  
	Mill-B 164 	04/19/1994 	07/11/1994 	       
         409 / 062 	07/15/1994 	702149 
	Mill-B 165 	04/19/1994 	07/11/1994 	           409
      / 063 	07/15/1994 	702150 
	Mill-B 166 	04/19/1994 	07/11/1994 	       
         409 / 064 	07/15/1994 	702151 
	Mill-B 167 	04/19/1994 	07/11/1994 	           409
      / 065 	07/15/1994 	702152 
	Mill-B 168 	04/19/1994 	07/11/1994 	       
         409 / 066 	07/15/1994 	702153 
	Mill-B 170 	04/19/1994 	07/11/1994 	           409
      / 067 	07/15/1994 	702154 
	Mill-B 172 	04/19/1994 	07/11/1994 	       
         409 / 068 	07/15/1994 	702155 
	Mill-B 174 	04/19/1994 	07/11/1994 	           409
      / 069 	07/15/1994 	702156 
	Mill-B 176 	04/19/1994 	07/11/1994 	       
         409 / 070 	07/15/1994 	702157 
	  	  	  	  	  	  
	Mill-B 120 	05/05/1994 	07/25/1994 	       
         409 / 318 	08/02/1994 	703197 
	Mill-B 121 	05/05/1994 	07/25/1994 	           409
      / 319 	08/02/1994 	703198 
	Mill-B 122 	05/05/1994 	07/25/1994 	       
         409 / 320 	08/02/1994 	703199 
	Mill-B 123 	05/05/1994 	07/25/1994 	           409
      / 321 	08/02/1994 	703200 
	Mill-B 124 	05/05/1994 	07/25/1994 	       
         409/ 322 	08/02/1994 	703201 
	Mill-B 125 	05/05/1994 	07/25/1994 	           409
      / 323 	08/02/1994 	703202 
	Mill-B 126 	05/06/1994 	07/25/1994 	       
         409 / 324 	08/02/1994 	703203 
	Mill-B 127 	05/06/1994 	07/25/1994 	           409
      / 325 	08/02/1994 	703204 
	Mill-B 128 	05/06/1994 	07/25/1994 	       
         409 / 326 	08/02/1994 	703205 
	Mill-B 129 	05/06/1994 	07/25/1994 	           409
      / 327 	08/02/1994 	703206 
	Mill-B 130 	05/06/1994 	07/25/1994 	       
         409 / 328 	08/02/1994 	703207 
	Mill-B 131 	05/06/1994 	07/25/1994 	           409
      / 329 	08/02/1994 	703208 

	CLAIM 	LOCATION 	 FILED 	COUNTY RECORDER 	FILED 	BLM SERIAL NO 
	NAME 	DATE 	COUNTY 	BOOK/PAGE 	BLM 	NMC 
	  	  	  	  	  	  
	Mill-B 132 	05/06/1994 	07/25/1994 	409 / 330 	08/02/1994 	703209 
	Mill-B 133 	05/06/1994 	07/25/1994 	409 / 331 	08/02/1994 	703210 
	Mill-B 134 	05/06/1994 	07/25/1994 	409 / 332 	08/02/1994 	703211 
	Mill-B 135 	05/06/1994 	07/25/1994 	409 / 333 	08/02/1994 	703212 
	Mill-B 136 	05/23/1994 	07/25/1994 	409 / 334 	08/02/1994 	703213 
	Mill-B 137 	05/23/1994 	07/25/1994 	409 / 335 	08/02/1994 	703214 
	Mill-B 138 	05/23/1994 	07/25/1994 	409 / 336 	08/02/1994 	703215 
	Mill-B 139 	05/23/1994 	07/25/1994 	409 / 337 	08/02/1994 	703216 
	Mill-B 140 	05/23/1994 	07/25/1994 	409 / 338 	08/02/1994 	703217 
	Mill-B 141 	05/23/1994 	07/25/1994 	409 / 339 	08/02/1994 	703218 
	Mill-B 142 	05/23/1994 	07/25/1994 	409 / 340 	08/02/1994 	703219 
	Mill-B 143 	05/23/1994 	07/25/1994 	409 / 341 	08/02/1994 	703220 
	Mill-B 144 	05/23/1994 	07/25/1994 	409 / 342 	08/02/1994 	703221 
	Mill-B 145 	05/23/1994 	07/25/1994 	409 / 343 	08/02/1994 	703222 
	Mill-B 146 	05/23/1994 	07/25/1994 	409 / 344 	08/02/1994 	703223 
	Mill-B 147 	05/23/1994 	07/25/1994 	409 / 345 	08/02/1994 	703224 
	Mill-B 148 	05/23/1994 	07/25/1994 	409 / 346 	08/02/1994 	703225 
	Mill-B 149 	05/23/1994 	07/25/1994 	409 / 347 	08/02/1994 	703226 
	Mill-B 150 	05/23/1994 	07/25/1994 	409 / 348 	08/02/1994 	703227 
	Mill-B 151 	05/23/1994 	07/25/1994 	409 / 349 	08/02/1994 	703228 
	Mill-B 152 	05/23/1994 	07/25/1994 	409 / 350 	08/02/1994 	703229 
	Mill-B 153 	05/23/1994 	07/25/1994 	409 / 351 	08/02/1994 	703230 
	Mill-B 154 	05/23/1994 	07/25/1994 	409 / 352 	08/02/1994 	703231 
	Mill-B 155 	05/23/1994 	07/25/1994 	409 / 353 	08/02/1994 	703232 
	Mill-B 156 	05/23/1994 	07/25/1994 	409 / 354 	08/02/1994 	703233 
	Mill-B 157 	05/23/1994 	07/25/1994 	409 / 355 	08/02/1994 	703234 
	Mill-B 158 	05/23/1994 	07/25/1994 	409 / 356 	08/02/1994 	703235 
	Mill-B 159 	05/23/1994 	07/25/1994 	409 / 357 	08/02/1994 	703236 
	Mill-B 160 	05/23/1994 	07/25/1994 	409 / 358 	08/02/1994 	703237 
	Mill-B 161 	05/23/1994 	07/25/1994 	409 / 359 	08/02/1994 	703238 
	Mill-B 162 	05/23/1994 	07/25/1994 	409 / 360 	08/02/1994 	703239 
	Mill-B 163 	05/23/1994 	07/25/1994 	409 / 361 	08/02/1994 	703240 
	Mill-B 169 	07/02/1994 	07/25/1994 	409 / 362 	08/02/1994 	703241 
	Mill-B 171 	07/02/1994 	07/25/1994 	409 / 363 	08/02/1994 	703242 
	Mill-B 173 	07/02/1994 	07/25/1994 	409 / 364 	08/02/1994 	703243 
	Mill-B 184 	05/23/1994 	07/25/1994 	409 / 366 	08/02/1994 	703245 
	Mill-B 185 	05/23/1994 	07/25/1994 	409 / 367 	08/02/1994 	703246 
	Mill-B 186 	05/23/1994 	07/25/1994 	409 / 368 	08/02/1994 	703247 
	Mill-B 187 	05/05/1994 	07/25/1994 	409 / 369 	08/02/1994 	703248 
	Mill-B 188 	05/05/1994 	07/25/1994 	409 / 370 	08/02/1994 	703249 
	Mill-B 190 	05/23/1994 	07/25/1994 	409 / 371 	08/02/1994 	703250 
	Mill-B 191 	05/23/1994 	07/25/1994 	409 / 372 	08/02/1994 	703251 
	Mill-B 300 	05/24/1994 	07/25/1994 	409 / 373 	08/02/1994 	703252 
	Mill-B 301 	05/24/1994 	07/25/1994 	409 / 374 	08/02/1994 	703253 
	Mill-B 302 	05/24/1994 	07/25/1994 	409 / 375 	08/02/1994 	703254 
	Mill-B 303 	05/24/1994 	07/25/1994 	409 / 376 	08/02/1994 	703255 
	Mill-B 304 	05/24/1994 	07/25/1994 	409 / 377 	08/02/1994 	703256 
	Mill-B 305 	05/24/1994 	07/25/1994 	409 / 378 	08/02/1994 	703257 
	Mill-B 306 	05/24/1994 	07/25/1994 	409 / 379 	08/02/1994 	703258 
	Mill-B 307 	05/24/1994 	07/25/1994 	409 / 380 	08/02/1994 	703259 
	Mill-B 500 	05/04/1994 	07/25/1994 	409 / 381 	08/02/1994 	703260 
	Mill-B 501 	05/04/1994 	07/25/1994 	409 / 382 	08/02/1994 	703261 
	Mill-B 502 	05/04/1994 	07/25/1994 	409 / 383 	08/02/1994 	703262

	CLAIM 	LOCATION 	 FILED 	COUNTY RECORDER 	FILED 	BLM SERIAL NO 
	NAME 	DATE 	COUNTY 	BOOK/PAGE 	BLM 	NMC 
	  	  	  	  	  	  
	Mill-B 503 	05/04/1994 	07/25/1994 	409 / 384 	08/02/1994 	703263 
	Mill-B 504 	05/05/1994 	07/25/1994 	409 / 385 	08/02/1994 	703264 
	Mill-B 505 	05/06/1994 	07/25/1994 	409 / 386 	08/02/1994 	703265 
	Mill-B 506 	05/06/1994 	07/25/1994 	409 / 387 	08/02/1994 	703266 
	  	  	  	  	  	  
	CMX 101 	09/07/1995 	12/05/1995 	422 / 480 	12/04/1995 	725976 
	CMX 102 	09/07/1995 	12/05/1995 	422 / 481 	12/04/1995 	725977 
	  	  	  	  	  	  
	CMX 112 	11/18/1995 	12/05/1995 	422 / 482 	02/13/1996 	733225 
	CMX 113 	11/18/1995 	12/05/1995 	422 / 483 	02/13/1996 	733226 
	CMX 114 	11/18/1995 	12/05/1995 	422 / 484 	02/13/1996 	733227 
	  	  	  	  	  	  
	Mill-B 507 	02/17/1996 	03/21/1996 	426 / 466 	04/03/1996 	735516 
	Mill-B 508 	02/17/1996 	03/21/1996 	426 / 467 	04/03/1996 	735517 
	Mill-B 509 	02/17/1996 	03/21/1996 	426 / 468 	04/03/1996 	735518 
	  	  	  	  	  	  
	CMX 103 	10/14/1996 	01/07/1997 	436 / 832 	01/03/1997 	760041 
	CMX 104 	10/14/1996 	01/07/1997 	436 / 833 	01/03/1997 	760042 
	CMX 105 	10/14/1996 	01/07/1997 	436 / 834 	01/03/1997 	760043 
	CMX 106 	10/14/1996 	01/07/1997 	436 / 835 	01/03/1997 	760044 
	CMX 107 	10/14/1996 	01/07/1997 	436 / 836 	01/03/1997 	760045 
	  	  	  	  	  	  
	CMX 108 	05/27/2000 	08/24/2000 	480 / 593 	08/25/2000 	817783 
	CMX 109 	05/29/2000 	08/24/2000 	480 / 594 	08/25/2000 	817784 
	CMX 110 	05/29/2000 	08/24/2000 	480 / 595 	08/25/2000 	817785 
	CMX 111 	05/27/2000 	08/24/2000 	480 / 596 	08/25/2000 	817786 
	  	  	  	  	  	  
	Mill-B 308 	10/22/2000 	01/18/2001 	485 / 253 	01/18/2001 	822318 
	  	  	  	  	  	  
	RDA 35 	10/23/2000 	01/18/2001 	485 / 240 	01/18/2001 	822319 
	RDA 36 	10/23/2000 	01/18/2001 	485 / 241 	01/18/2001 	822320 
	RDA 37 	10/23/2000 	01/18/2001 	485 / 242 	01/18/2001 	822321 
	RDA 69 	10/23/2000 	01/18/2001 	485 / 239 	01/18/2001 	822322 
	RDA 500 	10/23/2000 	01/18/2001 	485 / 238 	01/18/2001 	822323 
	  	  	  	  	  	  
	Rum Dreams 200 	10/28/2000 	01/18/2001 	485 / 244 	01/18/2001 	822324 
	  	  	  	  	  	  
	Rum Dreams 201 	10/28/2000 	01/18/2001 	485 / 245 	01/18/2001 	822325 
	  	  	  	  	  	  
	Rum Dreams 202 	10/28/2000 	01/18/2001 	485 / 246 	01/18/2001 	822326 
	  	  	  	  	  	  
	Rum Dreams 203 	10/28/2000 	01/18/2001 	485 / 247 	01/18/2001 	822327 
	  	  	  	  	  	  
	Rum Dreams 204A 	10/28/2000 	01/18/2001 	485 / 248 	01/18/2001 	822328 
	  	  	  	  	  	  
	Rum Dreams 205 	10/28/2000 	01/18/2001 	485 / 249 	01/18/2001 	822329 

	CLAIM 	LOCATION 	 FILED 	COUNTY RECORDER 	FILED 	BLM SERIAL NO 
	NAME 	DATE 	COUNTY 	BOOK/PAGE 	BLM 	NMC 
	  	  	  	  	  	  
	Rum Dreams 1 	09/05/2001 	11/30/2001 	496 / 526 	11/30/2001 	826158 
	  	  	  	  	  	  
	Rum Dreams 2 	09/05/2001 	11/30/2001 	496 / 527 	11/30/2001 	826159 
	  	  	  	  	  	  
	Rum Dreams 3 	09/05/2001 	11/30/2001 	496 / 528 	11/30/2001 	826160 
	  	  	  	  	  	  
	Rum Dreams 4 	0905/2001 	11/30/2001 	496 / 529 	11/30/2001 	826161 
	  	  	  	  	  	  
	Rum Dreams 5 	09/05/2001 	11/30/2001 	496 / 530 	11/30/2001 	826162 
	  	  	  	  	  	  
	Rum Dreams 6 	09/05/2001 	11/30/2001 	496 / 531 	11/30/2001 	826163 
	  	  	  	  	  	  
	Rum Dreams 7 	09/05/2001 	11/30/2001 	496 / 532 	11/30/2001 	826164 
	  	  	  	  	  	  
	Rum Dreams 8 	09/05/2001 	11/30/2001 	496 / 533 	11/30/2001 	826165 
	  	  	  	  	  	  
	Rum Dreams 9 	09/05/2001 	11/30/2001 	496 / 534 	11/30/2001 	826166 
	  	  	  	  	  	  
	Rum Dreams 10 	09/05/20001 	11/30/2001 	496 / 535 	11/30/2001 	826167 
	  	  	  	  	  	  
	Rum Dreams 11 	09/05/2001 	11/30/2001 	496 / 536 	11/30/2001 	826168 
	  	  	  	  	  	  
	Rum Dreams 12 	09/05/2001 	11/30/2001 	496 / 537 	11/30/2001 	826169 
	  	  	  	  	  	  
	Rum Dreams 13 	09/05/2001 	11/30/2001 	496 / 538 	11/30/2001 	826170 
	  	  	  	  	  	  
	Rum Dreams 14 	09/05/2001 	11/30/2001 	496 / 539 	11/30/2001 	826171 
	  	  	  	  	  	  
	Rum Dreams 15 	09/05/2001 	11/30/2001 	496 / 540 	11/30/2001 	826172 
	  	  	  	  	  	  
	Rum Dreams 16 	09/05/2001 	11/30/2001 	496 / 541 	11/30/2001 	826173 
	  	  	  	  	  	  
	Rum Dreams 17 	09/05/2001 	11/30/2001 	496 / 542 	11/30/2001 	826174 
		  	  	  	  	  
	Rum Dreams 18 	09/05/2001 	11/30/2001 	496 / 543 	11/30/2001 	826175

	CLAIM 	LOCATION 	 FILED 	COUNTY RECORDER 	FILED 	BLM SERIAL NO 
	NAME 	DATE 	COUNTY 	BOOK/PAGE 	BLM 	NMC 
	  	  	  	  	  	  
	Rum Dreams 19 	09/05/2001 	11/30/2001 	496 / 544 	11/30/2001 	826176 
	  	  	  	  	  	  
	Rum Dreams 20 	09/05/2001 	11/30/2001 	496 / 545 	11/30/2001 	826177 
	  	  	  	  	  	  
	Rum Dreams 21 	09/05/2001 	11/30/2001 	496 / 546 	11/30/2001 	826178 
	  	  	  	  	  	  
	Rum Dreams 22 	09/05/2001 	11/30/2001 	496 / 547 	11/30/2001 	826179 
	  	  	  	  	  	  
	HMT 1 	04/14/2000 	07/07/2000 	479 / 201 	07/10/2000 	817090 
	HMT 2 	04/14/2000 	07/07/2000 	479 / 202 	07/10/2000 	817091 
	HMT 3 	04/14/2000 	07/07/2000 	479 / 203 	07/10/2000 	817092 
	HMT 4 	04/14/2000 	07/07/2000 	479 / 204 	07/10/2000 	817093 
	HMT 5 	04/14/2000 	07/07/2000 	479 / 205 	07/10/2000 	817094 
	HMT 6 	04/14/2000 	07/07/2000 	479 / 206 	07/10/2000 	817095 
	HMT 7 	04/14/2000 	07/07/2000 	479 / 207 	07/10/2000 	817096 
	HMT 8 	04/14/2000 	07/07/2000 	479 / 208 	07/10/2000 	817097 
	HMT 9 	04/14/2000 	07/07/2000 	479 / 209 	07/10/2000 	817098 
	HMT 10 	04/14/2000 	07/07/2000 	479 / 210 	07/10/2000 	817099 

Note 1: All of the above named mining claims are subject
to the terms and conditions as set out by the Miller Mining Lease including
certain royalty, work, and payment obligations specified therein. 

Note 2: Certain of the above named mining claims,
specifically the “HMT 1 – 10”, are also subject to a royalty obligation
specified under Quitclaim Deed And Royalty Agreement (“QCD”) dated July 1, 2002
between Newmont USA LIMITED, and Bruce W. Miller et al. A copy of said QCD is
attached hereto as an Exhibit of the Miller Mining Lease.

PART 1.2 AREA OF INTEREST: 

          The
Area of Interest shall be the valid portions of the claim area within the
exterior boundary of the unpatented mining claims that are subject to the Miller
Mining Lease Agreement. The subject claims are further described by Exhibit A
PART 1.1 above, and graphically shown on the attached map figure. The attached
map is not based on field survey data, and the claim boundary shown thereon is
in part interpretive as to the effect of superior rights on the claims, and may
be subject to adjustment pending further determination. 

 

EXHIBIT A 

To 
EXPLORATION, DEVELOPMENT AND MINE OPERATING AGREEMENT

By And Between 

MIRANDA GOLD CORP. 

MIRANDA U.S.A., INC. 

AND 

BARRICK GOLD EXPLORATION INC. 

EXHIBIT A PART 1.3 

MILLER MINING LEASE 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedue 1 to Mining Deed

Property Description

  [Insert on execution]

 

5 

Schedue 2 to Mining Deed

Net Smelter Return Royalty

  [Same as Exhibit B to Mining Lease Agreement]

 

6 

Schedue 3 to Mining Deed

Arbitration/Mediation Provisions

  [Same as Exhibit C to Mining Lease Agreement]

 

7

	EXHIBIT B 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	  
	BARRICK GOLD EXPLORATION INC. 
	 

ACCOUNTING PROCEDURES 

          The
financing and accounting procedures to be followed by the Manager and the
Participants under the Agreement are set forth below. All capitalized terms in
these Accounting Procedures shall have the definition attributed to them in the
Agreement, unless defined otherwise herein. 

          The
purpose of these Accounting Procedures is to establish equitable methods for
determining charges and credits applicable to Operations. It is the intent of
the Participants that neither of them shall lose or profit by reason of the
designation of one of them to exercise the duties and responsibilities of the
Manager. The Participants shall meet and in good faith endeavor to agree upon
changes deemed necessary to correct any unfairness or inequity. In the event of
a conflict between the provisions of these Accounting Procedures and those of
the Agreement, the provisions of the Agreement shall control. 

ARTICLE I 
GENERAL PROVISIONS 

          1.1     
General Accounting Records. The Manager shall maintain detailed and
comprehensive cost accounting records in accordance with these Accounting
Procedures, including general ledgers, supporting and subsidiary journals,
invoices, checks and other customary documentation, sufficient to provide a
record of revenues and expenditures and periodic statements of financial
position and the results of Operations for managerial, tax, regulatory or other
financial, regulatory, or legal reporting purposes related to the Business. Such
records shall be retained for the duration of the period allowed the
Participants for audit or the period necessary to comply with tax or other
regulatory requirements. The records shall reflect all obligations, advances and
credits of the Participants. 

          1.2     
Cash Management Accounts. The Manager shall maintain one or more separate
cash management accounts for the payment of all expenses and the deposit of all
cash receipts for the Business. 

          1.3     
Statements and Billings. The Manager shall prepare statements and bill
the Participants as provided in Article X of the Agreement. Payment of any such
billings by either Participant, including the Manager, shall not prejudice such
Participant’s right to protest or question the correctness thereof as provided
in the Agreement. All written exceptions to and claims upon the Manager for
incorrect charges, billings or statements shall be made upon the 

B-1 

Manager within the period established by Section 10.6 of the
Agreement. The time period permitted for adjustments hereunder shall not apply
to adjustments resulting from periodic inventories as provided in Paragraphs 5.1
and 5.2. 

ARTICLE II 
CHARGES TO BUSINESS ACCOUNT 

          Subject
to the limitations hereinafter set forth, the Manager shall charge the Business
Account with the following: 

          2.1      Property
Acquisition Costs, Rentals, Royalties and Other Payments. All property
acquisition and holding costs, including Governmental Fees, filing fees, license
fees, costs of permits and assessment work, delay rentals, production royalties,
including any required advances, and all other payments made by the Manager
which are necessary to acquire or maintain title to the Assets. 

          2.2      Labor
and Employee Benefits. 

                    (a)     
Salaries and wages of the Manager’s employees directly engaged in Operations,
including salaries or wages of employees who are temporarily assigned to and
directly employed by same. 

                    (b)     
The Manager’s cost of holiday, vacation, sickness and disability benefits, and
other customary allowances applicable to the salaries and wages chargeable under
Subparagraph 2.2(a) and Paragraph 2.12. Such costs may be charged on a “when and
as paid basis” or by “percentage assessment” on the amount of salaries and
wages. If percentage assessment is used, the rate shall be applied to wages or
salaries excluding overtime and bonuses. Such rate shall be based on the
Manager’s cost experience and it shall be periodically adjusted at least
annually to ensure that the total of such charges does not exceed the actual
cost thereof to the Manager. 

                    (c)     
The Manager’s actual cost of established plans for employees’ group life
insurance, hospitalization, pension, retirement, stock purchase, thrift, bonus
(except production or incentive bonus plans under a union contract based on
actual rates of production, cost savings and other production factors, and
similar non-union bonus plans customary in the industry or necessary to attract
competent employees, which bonus payments shall be considered salaries and wages
under Subparagraph 2.2(a) or Paragraph 2.12 rather than employees’ benefit
plans) and other benefit plans of a like nature applicable to salaries and wages
chargeable under Subparagraphs 2.2(a) or Paragraph 2.12. 

                    (d)      Cost
of assessments imposed by governmental authority that are applicable to salaries
and wages chargeable under Subparagraph 2.2(a) and Paragraph 2.12, including all
penalties except those resulting from the willful misconduct or gross negligence
of the Manager. 

          2.3     
Materials, Equipment and Supplies. The cost of materials, equipment and
supplies (herein called “Material”) purchased from unaffiliated third parties or
furnished by either Participant as provided in Paragraph 3.1. The Manager shall
purchase or furnish only so 

B-2 

much Material as may be required to conduct efficient and
economical Operations. The Manager shall also maintain inventory levels of
Material at reasonable levels to avoid unnecessary accumulation of surplus
stock. 

          2.4     
Equipment and Facilities Furnished by Manager. The cost of machinery,
equipment and facilities owned by the Manager and used in Operations or used to
provide support or utility services to Operations charged at rates commensurate
with the actual costs of ownership and operation of such machinery, equipment
and facilities. Such rates shall include costs of maintenance, repairs, other
operating expenses, insurance, taxes, depreciation and interest at a rate not to
exceed Prime Rate plus three percent (3%) per annum. Such rates shall not exceed
the average commercial rates currently prevailing in the vicinity of the
Operations. 

          2.5     
Transportation. Reasonable transportation costs incurred in connection
with the transportation of employees and material necessary for Operations. 

          2.6     
Contract Services and Utilities. The cost of contract services and
utilities procured from outside sources, other than services described in
Paragraphs 2.9 and 2.13. If contract services are performed by the Manager or an
Affiliate thereof, the cost charged to the Business Account shall not be greater
than that for which comparable services and utilities are available in the open
market within the vicinity of Operations. The cost of professional consultant
services procured from outside sources in excess of Twenty-Five Thousand Dollars
($25,000.00) per annum per contract shall not be charged to the Business Account
unless approved by the Management Committee. 

          2.7     
Insurance Premiums. Net premiums paid for insurance required to be
carried for Operations for the protection of the Participants. When Operations
are conducted in an area where the Manager may self-insure for Worker’s
Compensation and/or Employer’s Liability under state law, the Manager may elect
to include such risks in its self-insurance program and shall charge its costs
of self-insuring such risks to the Business Account provided that such charges
shall not exceed published manual rates. 

         2.8      Damages
and Losses. All costs in excess of insurance proceeds necessary to repair or
replace damage or losses to any Assets resulting from any cause other than the
willful misconduct or gross negligence of the Manager. The Manager shall furnish
the Management Committee with written notice of damages or losses as soon as
practicable after a report thereof has been received by the Manager. 

          2.9     
Legal and Regulatory Expense. Except as otherwise provided in Paragraph
2.13, all legal and regulatory costs and expenses incurred in or resulting from
Operations or necessary to protect or recover the Assets of the Business,
including costs of title investigation and title curative services. All
attorneys fees and other legal costs to handle, investigate and settle
litigation or claims, and amounts paid in settlement of such litigation or
claims in excess of Twenty-Five Thousand Dollars ($25,000.00) per annum shall
not be charged to the Business Account unless approved by the Management
Committee. 

          2.10     
Audit. Cost of annual audits under Subsection 10.6(a) . 

B-3 

          2.11     
Taxes. All taxes, assessments and like charges on Operations and Assets
which have been paid by the Manager for the benefit of the Participants. Each
Participant is separately responsible for taxes determined or measured by a
Participant’s sales revenue or net income. 

          2.12      District
and Camp Expense (Field Supervision and Camp Expenses). A pro rata portion
of: (i) the salaries and expenses of the Manager’s employees serving Operations
whose time is not allocated directly to such Operations, and (ii) the costs of
maintaining and operating an office and any necessary suboffice, and (iii) all
necessary camps, including housing facilities for employees, used for
Operations. The expense of those facilities, less any revenue therefrom, shall
include depreciation or a fair monthly rental in lieu of depreciation of the
investment. The total of such charges for all Properties served by the Manager’s
employees and facilities shall be apportioned to the Business Account on the
basis of a ratio to be approved by the Management Committee. 

          2.13     
Administrative Charge. 

                    (a)      Each
month, the Manager shall charge the Business Account a sum for each phase of
Operations as provided below, which shall be a liquidated amount to reimburse
the Manager for its home office overhead and general and administrative expenses
to conduct each phase of Operations, and which shall be in lieu of any
management fee and for taxes based on production of Products: 

          (i)     
Exploration Phase - five percent (5%) of Allowable Costs. 

          (ii)      Development
Phase - four percent (4%) of Allowable Costs. 

          (iii)      Major
Construction Phase - three percent (3%) of Allowable Costs. 

          (iv)     
Mining Phase - two percent (2%) of Allowable Costs. 

                    (b)     
The term “Allowable Costs” as used in this Paragraph for a particular phase of
Operations shall mean all charges to the Business Account excluding: (i) the
administrative charge referred to herein; (ii) depreciation, depletion or
amortization of tangible or intangible Assets; (iii) amounts charged in
accordance with Paragraphs 2.1 and 2.9, and (iv) marketing costs. The Manager
shall attribute such Allowable Costs to a particular phase of Operations by
applying the following guidelines: 

          (A)      The
Exploration Phase shall cover those Operations conducted to ascertain the
existence, location, extent or quantity of any deposit of ore or mineral. 

          (B)      The
Development Phase shall cover those Operations, including Pre-Feasibility and
Feasibility Study Operations, conducted to assess a commercially feasible ore
body or to extend production of an existing ore body, and to construct or
install related fixed Assets. 

B-4 

          (C)      The
Major Construction Phase shall include all Operations involved in the
construction of a mill, smelter or other ore processing facilities. 

          (D)      The
Mining Phase shall include all other Operations activities not otherwise covered
above, including activities conducted after Mining Operations have ceased. 

                    (c)      Various
phases of Operations may be conducted concurrently, in which event the
administrative charge shall be calculated separately for Allowable Costs
attributable to each phase. 

                    (d)      The
monthly administration charge determined for each phase of Operations shall be a
liquidated amount to reimburse Manager for its home office overhead and general
and administrative expenses for its conduct of Operations, and shall be
equitably apportioned among all of the properties served during such monthly
period on the basis of a ratio approved by the Management Committee. 

                    (e)      The
following is a representative list of items that constitute the Manager’s
principal business office expenses that are expressly covered by the
administrative charge provided in this Paragraph, except to the extent that such
items are directly chargeable to the Business Account under other provisions of
this Article II: 

          (i)      Administrative
supervision, which includes all services rendered by managers, department
supervisors, officers and directors of the Manager for Operations. 

          (ii)      Accounting,
data processing, personnel administration, billing and record keeping in
accordance with governmental regulations and the provisions of the Agreement,
and preparation of reports; 

          (iii)      The
services of tax counsel and tax administration employees for all tax matters,
including any protests, except any outside professional fees which the
Management Committee may approve as a direct charge to the Business Account;

          (iv)     
Routine legal services rendered by outside sources and the Manager’s legal staff
not otherwise charged to the Business Account under Paragraph 2.9, including
property acquisition, attorney management and oversight, and support services
provided by Manager’s legal staff concerning any litigation; and 

          (v)      Rentals
and other charges for office and records storage space, telephone service,
office equipment and supplies. 

                    (f)      The
Management Committee shall annually review the administrative charges and shall
amend the methodology or rates used to determine such charges if they are found
to be insufficient or excessive based on the principles that the Manager shall
not make a 

B-5 

profit or suffer a loss and that it should be fairly and
adequately compensated for its costs and expenses. 

          2.14      Environmental
Compliance Fund. Costs reasonably anticipated Environmental Compliance
which, on a Program basis, shall be determined by the Management Committee and
shall be based on proportionate contributions in an amount sufficient to
establish a fund, which through successive proportionate contributions during
the life of the Business, will pay for ongoing Environmental Compliance
conducted during Operations and which will aggregate the reasonably anticipated
costs of mine closure, post-Operations Environmental Compliance and Continuing
Obligations. The Manager shall invest such amounts on behalf of the Participants
as provided in Subsection 8.2(r) . 

          2.15     
Other Expenditures. Any reasonable direct expenditure, other than
expenditures which are covered by the foregoing provisions, incurred by the
Manager for the necessary and proper conduct of Operations. 

ARTICLE III 
BASIS OF CHARGES TO BUSINESS ACCOUNT 

          3.1     
Purchases. Material purchased and services procured from third parties
shall be charged to the Business Account by the Manager at invoiced cost,
including applicable transfer taxes, less all discounts taken. If any Material
is determined to be defective or is returned to a vendor for any other reason,
the Manager shall credit the Business Account when an adjustment is received
from the vendor. 

          3.2      Material
Furnished by a Participant for Use in the Business. Any Material furnished
by either Participant for use in the Business or distributed to either
Participant by the Manager shall be priced on the following basis: 

                    (a)      New
Material: New Material furnished by either Participant shall be priced
F.O.B. the nearest reputable supply store or railway receiving point, where like
Material is available, at the current replacement cost of the same kind of
Material, exclusive of any available cash discounts, at the time it is furnished
(herein called “New Price”). 

                    (b)     
Used Material. 

          (i)      Used
Material in sound and serviceable condition and suitable for reuse without
reconditioning shall be priced as follows: 

          (A)      Used
Material furnished by either Participant shall be priced at seventy-five percent
(75%) of the New Price; 

          (B)      Used
Material distributed to either Participant shall be priced (i) at seventy-five
percent (75%) of the New Price if such Material was originally charged to the
Business Account as new Material, or (ii) at sixty-five percent (65%) of the New
Price if such Material was originally charged to the Business Account as good
used Material at seventy-five percent (75%) of the New Price. 

B-6 

          (ii)      Other
used Material that, after reconditioning, will be further serviceable for
original function as good secondhand Material, or that is serviceable for
original function but not substantially suitable for reconditioning, shall be
priced at fifty percent (50%) of New Price. The cost of any reconditioning shall
be borne by the transferee. 

          (iii)      Bad-Order
Material which is no longer usable for its original purpose without excessive
repair cost but further usable for some other purpose shall be priced on a basis
comparable with items normally used for that purpose. 

          (iv)      All
other Material, including junk, shall be priced at a value commensurate with its
use or at prevailing prices. 

                    (c)     
Obsolete Material. Any Material that is serviceable and usable for its
original function, but its condition is not equivalent to that which would
justify a price as provided above, shall be priced by the Management Committee.
Such price shall be set at a level that will result in a charge to the Business
Account equal to the value of the service to be rendered by such Material. 

          3.3     
Premium Prices. Whenever Material is not readily obtainable at published
or listed prices because of national emergencies, strikes or other unusual
circumstances over which the Manager has no control, the Manager may charge the
Business Account for the required Material on the basis of the Manager’s direct
cost and expenses incurred in procuring such Material and making it suitable for
use. The Manager shall give written notice of the proposed charge to the
Participants prior to the time when such charge is to be billed, whereupon
either Participant shall have the right, by notifying the Manager within ten
(10) days of the delivery of the notice from the Manager, to furnish at the
usual receiving point all or part of its share of Material suitable for use and
acceptable to the Manager. 

          3.4     
Warranty of Material Furnished by the Manager or Participants. Neither
Participant warrants any Material furnished beyond any dealer’s or
manufacturer’s warranty and no credits shall be made to the Business Account for
defective Material until adjustments are received by the Manager from the
dealer, manufacturer or their respective agents. 

ARTICLE IV 
DISPOSAL OF MATERIAL 

          4.1     
Disposition Generally. The Manager shall have no obligation to purchase
either Participant’s interest in Material. The Management Committee shall
determine the disposition of major items of surplus Material, provided the
Manager shall have the right to dispose of normal accumulations of junk and
scrap Material either by sale or by transfer to the Participants as provided in
Paragraph 4.2. 

          4.2      Distribution
to Participants. Any Material to be distributed to the Participants shall be
made in proportion to their respective Participating Interests, and
corresponding credits shall be made to the Business Account on the basis
provided in Paragraph 3.2. 

B-7 

          4.3     
Sales. Sales of Material to third parties shall be credited to the
Business Account at the net amount received. Any damages or claims by the
Purchaser shall be charged back to the Business Account if and when paid. 

ARTICLE V 
INVENTORIES 

          5.1      Periodic
Inventories, Notice and Representations. At reasonable intervals,
inventories shall be taken by the Manager, which shall include all such Material
as is ordinarily considered controllable by operators of mining properties, and
the expense of conducting such periodic inventories shall be charged to the
Business Account. The Manager shall give written notice to the Participants of
its intent to take any inventory at least thirty (30) days before such inventory
is scheduled to take place. A Participant shall be deemed to have accepted the
results of any inventory taken by the Manager if the Participant fails to be
represented at such inventory. 

          5.2      Reconciliation
and Adjustment of Inventories. Reconciliation of inventory with charges to
the Business Account shall be made, and a list of overages and shortages shall
be furnished to the Management Committee within six (6) months after the
inventory is taken. Inventory adjustments shall be made by the Manager to the
Business Account for overages and shortages, but the Manager shall be held
accountable to the Business only for shortages due to lack of reasonable
diligence. 

B-8 

	EXHIBIT C 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	  
	BARRICK GOLD EXPLORATION INC. 
	 

DEFINITIONS 

          “Additional
Earn-In” means the option and right of BGEI to increase its Participating
Interest as provided in Section 5.5(a) . 

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

          “Agreement”
means this Exploration, Development and Mine Operating Agreement, including all
amendments and modifications, and all schedules and exhibits, all of which are
incorporated by this reference. 

          “Approved
Alternative” means a Development and Mining alternative selected by the
Management Committee from various Development and Mining alternatives analyzed
in the Pre-Feasibility Studies. 

          “Area
of Interest” means the area described in Paragraph 1.2 of Exhibit A.

          “Assets”
means the Properties, Products, Business Information, and all other real and
personal property, tangible and intangible, including existing or after-acquired
properties and all contract rights held for the benefit of the Participants
hereunder. 

          “Budget”
means a detailed estimate of all costs to be incurred and a schedule of cash
advances to be made by the Participants with respect to a Program. 

          “Business”
means the contractual relationship of the Participants under this Agreement.

          “Business
Account” means the account maintained by the Manager for the Business in
accordance with Exhibit B. 

          “Business
Information” means the terms of this Agreement, and any other agreement
relating to the Business, the Existing Data, and all information, data,
knowledge and know-how, in whatever form and however communicated (including,
without limitation, Confidential Information), developed, conceived, originated
or obtained by either Participant in performing its obligations under this
Agreement. The term “Business Information” shall not include any improvements,
enhancements, refinements or incremental additions to Participant Information
that 

C-1 

are developed, conceived, originated or obtained by either
Participant in performing its obligations under this Agreement. 

          “Confidential
Information” means all information, data, knowledge and know-how (including,
but not limited to, formulas, patterns, compilations, programs, devices,
methods, techniques and processes) that derives independent economic value,
actual or potential, as a result of not being generally known to, or readily
ascertainable by, third parties and which is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy, including without
limitation all analyses, interpretations, compilations, studies and evaluations
of such information, data, knowledge and know-how generated or prepared by or on
behalf of either Participant. 

          “Continuing
Obligations” mean obligations or responsibilities that are reasonably
expected to continue or arise after Operations on a particular area of the
Properties have ceased or are suspended, such as future monitoring,
stabilization, or Environmental Compliance. 

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

          “Cover
Payment” shall have the meaning as set forth in Section 10.4 of the
Agreement. 

          “Development”
means all preparation (other than Exploration) for the removal and recovery of
Products, including construction and installation of a mill or any other
improvements to be used for the mining, handling, milling, processing, or other
beneficiation of Products, and all related Environmental Compliance. 

          “Effective
Date” means the date set forth in the preamble to this Agreement. 

          “Encumbrance”
or “Encumbrances” means mortgages, deeds of trust, security interests,
pledges, liens, net profits interests, royalties or overriding royalty
interests, other payments out of production, or other burdens of any nature.

          “Environmental
Compliance” means actions performed during or after Operations to comply
with the requirements of all Environmental Laws or contractual commitments
related to reclamation of the Properties or other compliance with Environmental
Laws. 

          “Environmental
Laws” means Laws aimed at reclamation or restoration of the Properties;
abatement of pollution; protection of the environment; protection of wildlife,
including endangered species; ensuring public safety from environmental hazards;
protection of cultural or historic resources; management, storage or control of
hazardous materials and substances; releases or threatened releases of
pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
as wastes into the environment, including without limitation, ambient air,
surface water and groundwater; and all other Laws relating to the manufacturing,
processing, distribution, use, 

C-2 

treatment, storage, disposal, handling or transport of
pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
or wastes. 

          “Environmental
Liabilities” means any and all claims, actions, causes of action, damages,
losses, liabilities, obligations, penalties, judgments, amounts paid in
settlement, assessments, costs, disbursements, or expenses (including, without
limitation, attorneys’ fees and costs, experts’ fees and costs, and consultants’
fees and costs) of any kind or of any nature whatsoever that are asserted
against either Participant, by any person or entity other than the other
Participant, alleging liability (including, without limitation, liability for
studies, testing or investigatory costs, cleanup costs, response costs, removal
costs, remediation costs, containment costs, restoration costs, corrective
action costs, closure costs, reclamation costs, natural resource damages,
property damages, business losses, personal injuries, penalties or fines)
arising out of, based on or resulting from (i) the presence, release, threatened
release, discharge or emission into the environment of any hazardous materials
or substances existing or arising on, beneath or above the Properties and/or
emanating or migrating and/or threatening to emanate or migrate from the
Properties to off-site properties; (ii) physical disturbance of the environment;
or (iii) the violation or alleged violation of any Environmental Laws. 

          “Equity
Account” means the account maintained for each Participant by the Manager in
accordance with Subsection 8.2(n) of the Agreement. 

          “Existing
Data” means maps, drill logs and other drilling data, core tests, pulps,
reports, surveys, assays, analyses, production reports, operations, technical,
accounting and financial records, and other material information developed in
operations on the Properties prior to the Effective Date. 

          “Expansion”
or “Modification” means (i) a material increase in mining or production
capacity; (ii) a material change in the recovery process; or (iii) a material
change in waste or tailings disposal methods. An increase or change shall be
deemed “material” if it is anticipated to cost more than thirty percent (30%) of
original capital costs attributable to the Development of the mining or
production capacity, recovery process or waste or tailings disposal facility to
be expanded or modified. 

          “Exploration”
means all activities directed toward ascertaining the existence, location,
quantity, quality or commercial value of deposits of Products, including but not
limited to additional drilling required after discovery of potentially
commercial mineralization, and including related Environmental Compliance. 

          “Feasibility
Contractors” means one or more engineering firms approved by the Management
Committee for purposes of preparing or auditing any Pre-Feasibility Study or
Feasibility Study. 

          “Feasibility
Study” means a report to be prepared following selection by the Management
Committee of one or more Approved Alternatives. The Feasibility Study shall
include a review of information presented in any Pre-Feasibility Studies
concerning the Approved Alternative(s). The Feasibility Study shall be in a form
and of a scope generally acceptable to reputable financial institutions that
provide financing to the mining industry. 

C-3 

          “Governmental
Fees” means all location fees, mining claim rental fees, mining claim
maintenance payments and similar payments required by Law to locate and hold
unpatented mining claims. 

          “Initial
Contribution” means that contribution each Participant has made or agrees to
make pursuant to Section 5.1 of the Agreement. 

          “Law”
or “Laws” means all applicable federal, state and local laws (statutory
or common), rules, ordinances, regulations, grants, concessions, franchises,
licenses, orders, directives, judgments, decrees, and other governmental
restrictions, including permits and other similar requirements, whether
legislative, municipal, administrative or judicial in nature. 

          “Management
Committee” means the committee established under Article VII of the
Agreement. 

          “Manager”
means the Participant appointed under Article VIII of the Agreement to manage
Operations, or any successor Manager. 

          “Miller
Mining Lease” means that certain Mining Lease Agreement between Bruce W.
Miller, a single man, and Miranda U.S.A., Inc., a Nevada corporation dated
effective November 23, 2004, a complete copy of which is attached hereto as
Exhibit “A” Part 1.3. A short form Memorandum of the Miller Mining Lease was
recorded in the official records of Lander County, Nevada on November 29, 2004
as DOC File # 0234736. 

          “Mining”
means the mining, extracting, producing, beneficiating, handling, milling or
other processing of Products. 

          “Net
Proceeds Interest” means certain amounts calculated as provided in Exhibit
E, which may be payable to a Participant under Subsection 10.5(b)(ii) of the
Agreement. 

          “Net
Smelter Returns Royalty” means certain amounts calculated as provided in
Exhibit D, which may be payable to a Participant under Subsection 6.3(b) of the
Agreement. 

          “Operations”
means the activities carried out under this Agreement. 

          “Participant”
means Miranda or BGEI, or any permitted successor or assign of Miranda or BGEI
under the Agreement. 

          “Participant
Information” means all information, data, knowledge and know-how, in
whatever form and however communicated (including, without limitation,
Confidential Information but excluding the Existing Data), which, as shown by
written records, was developed, conceived, originated or obtained by a
Participant: (a) prior to entering into this Agreement, or (b) independent of
its performance under the terms of this Agreement. 

          “Participating
Interest” means the percentage interest representing the ownership interest
of a Participant in the Assets, and all other rights and obligations arising
under this Agreement, as such interest may from time to time be adjusted
hereunder. Participating Interests shall be calculated to three decimal places
and rounded to two decimal places as follows: Decimals of .005 

C-4 

or more shall be rounded up (e.g., 1.519% rounded to
1.52%); decimals of less than .005 shall be rounded down (e.g., 1.514%
rounded to 1.51%) . The initial Participating Interests of the Participants are
set forth in Section 6.1 of the Agreement. 

          “Payout”
means the date on which the Equity Account balance of each of the Participants
has become zero or a negative number, regardless of whether the Equity Account
balance of either or both Participants subsequently becomes a positive number.
If one Participant’s Equity Account balance becomes zero or a negative number
before the other Participant’s, “Payout” shall not occur until the date that the
other Participant’s Equity Account balance first becomes zero or a negative
number. 

          “Pre-Feasibility
Studies” means one or more studies prepared to analyze whether economically
viable Mining Operations may be possible on the Properties, as described in
Section 9.8. 

          “Prime
Rate” means the interest rate quoted and published as “Prime” as published
in The Wall Street Journal, under the heading “Money Rate,” as the rate
may change from day to day. 

          “Products”
means all ores, minerals and mineral resources produced from the Properties.

          “Program”
means a description in reasonable detail of Operations to be conducted and
objectives to be accomplished by the Manager for a period determined by the
Management Committee. 

          “Program
Period” means the time period covered by an adopted Program and Budget.

          “Project
Financing” means any financing approved by the Management Committee and
obtained by the Participants for the purpose of placing a mineral deposit
situated on the Properties into commercial production, but shall not include any
such financing obtained individually by either Participant to finance payment or
performance of its obligations under the Agreement. 

          “Properties”
means those interests in real property described in Paragraph 1.1 of Exhibit A
and all other interests in real property within the Area of Interest that are
acquired and held subject to the Agreement. 

          “Qualifying
Expenses” means costs that are properly chargeable to the Business Account
under Exhibit B and that are incurred by BGEI in conducting Exploration and
Development under this Agreement, provided, however, that payments to be made to
Miranda pursuant to Section 5.4 shall not be Qualifying Expenses. Costs properly
chargeable pursuant to that certain letter agreement dated June 23, 2005 between
Miranda and Barrick in connection with performance of gravity survey for benefit
of the Property, shall also apply as qualifying expenditures under this
Agreement. 

          “Recalculated
Participating Interest” means the reduced Participating Interest of a
Participant as recalculated under Sections 9.5, 9.6 or 10.5 of the Agreement.

          “Reduced
Participant” means a Participant whose Participating Interest is reduced
under Sections 9.5 or 10.5 of the Agreement. 

C-5 

          “Transfer”
means, when used as a verb, to sell, grant, assign, create an Encumbrance,
pledge or otherwise convey, or dispose of or commit to do any of the foregoing,
or to arrange for substitute performance by an Affiliate or third party (except
as permitted under Subsection 8.2(j) and Section 8.6 of the Agreement), either
directly or indirectly; and, when used as a noun, means such a sale, grant,
assignment, Encumbrance, pledge or other conveyance or disposition, or such an
arrangement. 

C-6 

	EXHIBIT D 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	  
	BARRICK GOLD EXPLORATION INC. 
	 

NET SMELTER RETURN ROYALTY 

ARTICLE I 
ROYALTY 

          1.1     
Royalty. If a Reduced Participant is deemed to have withdrawn from the
Business as provided in Section 6, and as a result the a Participant (the
“Withdrawing Participant”) is deemed to have withdrawn from the Business as
provided in that Section, then the Withdrawing Participant shall be paid a
royalty equal to one percent (1%) of Net Smelter Returns on all Products sold by
the other Participant (the “Continuing Participant”) as provided in Section 6.3.

          1.2     
Payment of Net Smelter Return Royalty. Payments of the Net Smelter Return
Royalty shall commence in the calendar quarter following the calendar quarter in
which Net Smelter Returns are first realized, and shall be made forty-five (45)
days following the end of each calendar quarter during which Net Smelter Returns
are realized, and shall be subject to adjustment, if required, at the end of
each calendar year. The recipient of such Net Smelter Return Royalty payments
shall have the right to audit such payments following receipt of each payment by
giving notice to the Continuing Participant and by conducting such audit in
accordance with Section 10.6 of the Agreement. Costs of such an audit shall be
borne by the Withdrawing Participant. 

          1.3     
Definitions. 

                    (a)      "Net
Smelter Returns" means amounts actually received by the Business from sale of
Products less, but only to the extent actually incurred by the Business:

          (1)      sales,
use, gross receipts, severance, ad valorem and other taxes, if any, however
denominated, payable with respect to existence, severance, production, removal,
sale or disposition of Products, but excluding any taxes on net income;

          (2)      charges
and costs, if any, for transportation to places where Products are smelted,
refined and sold; 

          (3)      charges,
costs and penalties, if any, for smelting, refining and marketing. 

D-1 

In the event smelting or refining are carried out in facilities
owned or controlled, in whole or in part, by the Continuing Participant,
charges, costs and penalties with respect to such operations, including
transportation, shall mean reasonable charges, costs and penalties for such
operations but not in excess of the amounts that the Continuing Participant
would have incurred if such operations were carried out at facilities not owned
or controlled by the Continuing Participant then offering comparable custom
services. 

                    (b)     
All other capitalized words and terms used herein have the same meaning as in
the Agreement. 

D-2 

	EXHIBIT E 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	BARRICK GOLD EXPLORATION INC. 
	 

NET PROCEEDS CALCULATION 

          1.1      If
a non-defaulting Participant elects the remedy provided for in Section
10.5(b)(ii), and as a result the a Participant (the “Defaulting Participant”) is
deemed to have withdrawn from the Business as provided in that Section, then the
Defaulting Participant shall have the right to receive only from one percent
(1%) of Net Proceeds, calculated as provided in this Exhibit E, if any, and not
from any other source, an amount equal to seventy-five percent (75%) of the
defaulting Participant’s Equity Account balance at the time of such default as
provided in Section 10.5(b)(ii) . 

          1.2     
Income and Expenses. Net Proceeds shall be calculated by deducting from
the Gross Revenue (as defined below) realized (or deemed to be realized), such
costs and expenses attributable to Exploration, Development, Mining, the
marketing of Products and other Operations as would be deductible under
generally accepted accounting principles and practices consistently applied,
including without limitation: 

                    (a)      All
costs and expenses of replacing, expanding, modifying, altering or changing from
time to time the Mining facilities. Costs and expenses of improvements (such as
haulage ways or mill facilities) that are also used in connection with workings
other than the Properties shall be charged to the Properties only in the
proportion that their use in connection with the Properties bears to their total
use; 

                    (b)      Ad
valorem real property and unsecured personal property taxes, and all taxes,
other than income taxes, applicable to Mining of the Properties, including
without limitation all state mining taxes, sales taxes, severance taxes, license
fees and governmental levies of a similar nature; 

                    (c)      Allowance
for overhead in accordance with Paragraph 2.13 of Exhibit B; 

                    (d)      All
expenses incurred relative to the sale of Products, including an allowance for
commissions at rates which are normal and customary in the industry; 

                    (e)      All
amounts payable to the remaining Participant during Mining pursuant to any
applicable operating or similar agreement in force with respect thereto; 

                    (f)      The
actual cost of investment under the Agreement prior to beginning of Mining,
which shall include all expenditures for Exploration and Development of the
Properties 

E-1 

incurred by the non-defaulting Participant both prior and
subsequent to the defaulting Participant acquiring a Net Proceeds interest; 

                    (g)     
Interest on monies borrowed or advanced for costs and expenses, but in no event
in excess of the maximum permitted by law; 

                    (h)      An
allowance for reasonable working capital and inventory; 

                    (i)     
Costs of funding the Environmental Compliance Fund as provided in Paragraph 2.14
of Exhibit B; 

                    (j)      Actual
costs of Operations; and 

                    (k)      Rental,
royalty, production, and purchase payments. 

          For
purposes hereof, the term “Gross Revenue” shall mean the sum of (i) gross
receipts from sale of Products, less any charges for sampling, assaying, or
penalties; (ii) gross receipts from the sale or other disposition of Assets;
(iii) insurance proceeds; (iv) compensation for expropriation of Assets; and (v)
judgment proceeds. Gross receipts for sale of Products shall be determined by
multiplying the quantity of Products sold by the spot prices for Products as
quoted by the New York Commodity Exchange (“COMEX”), or if the COMEX does not or
ceases to quote a price for the Products sold, another reputable commodity
exchange reasonably acceptable to the Participants, on the date of a sale of
Products. 

          It
is intended that the remaining Participant shall recoup from Gross Revenue all
of its on-going contributions for Exploration, Development, Mining, Expansion
and Modification and marketing Products before any Net Proceeds are distributed
to any person holding a Net Proceeds interest. No deduction shall be made for
income taxes, depreciation, amortization or depletion. If in any year after the
beginning of Mining of the Properties an operating loss relative thereto is
incurred, the amount thereof shall be considered as and be included with
outstanding costs and expenses and carried forward in determining Net Proceeds
for subsequent periods. 

          1.3     
Payment of Net Proceeds. Payments of Net Proceeds shall commence in the
calendar quarter following the calendar quarter in which Net Proceeds are first
realized, and shall be made forty-five (45) days following the end of each
calendar quarter during which Net Proceeds are realized, and shall be subject to
adjustment, if required, at the end of each calendar year. The recipient of such
Net Proceeds payments shall have the right to audit such payments following
receipt of each payment by giving notice to the remaining Participant and by
conducting such audit in accordance with Section 10.6 of the Agreement. Costs of
such an audit shall be borne by the holder of the Net Proceeds interest
described herein. 

          1.4     
Definitions. All capitalized words and terms used herein have the same
meaning as in the Agreement. 

E-2 

	EXHIBIT F 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	  
	BARRICK GOLD EXPLORATION INC. 
	 

INSURANCE 

          The
Manager shall, at all times while conducting Operations, comply fully with the
applicable worker’s compensation laws and purchase, or provide protection for
the Participants comparable to that provided under standard form insurance
policies for the following risk categories: (i) comprehensive public liability
and property damage with combined limits of not less than Five Million Dollars
($5,000,000) for bodily injury and property damage; (ii) automobile insurance
with combined limits of not less than Five Million Dollars ($5,000,000); and
(iii) adequate and reasonable insurance against risk of fire and other risks
ordinarily insured against in similar operations. If the Manager elects to
self-insure, it shall charge to the Business Account an amount equal to the
premium it would have paid had it secured and maintained a policy or policies of
insurance on a competitive bid basis in the amount of such coverage. Each
Participant shall self-insure or purchase for its own account such additional
insurance as it deems necessary. 

F-1 

	EXHIBIT G 
	TO 
	EXPLORATION, DEVELOPMENT AND MINE OPERATING
      AGREEMENT 
	BY AND BETWEEN 
	MIRANDA GOLD CORP. 
	MIRANDA U.S.A., INC. 
	AND 
	  
	BARRICK GOLD EXPLORATION INC. 
	 

PREEMPTIVE RIGHTS 

          1.1     
Preemptive Rights. If either Participant intends to Transfer or receives
an offer to Transfer all or any part of its Participating Interest, or an
Affiliate of either Participant intends to Transfer or receives an offer to
Transfer Control of such Participant (“Transferring Entity”), such Participant
shall promptly notify the other Participant of such situation. The notice shall
state the price and all other pertinent terms and conditions of the intended
Transfer, and shall be accompanied by a copy of the offer or the contract for
sale. If the consideration for the intended transfer is, in whole or in part,
other than monetary, the notice shall describe such consideration and its
monetary equivalent (based upon the fair market value of the nonmonetary
consideration and stated in terms of cash or currency). The other Participant
shall have thirty (30) days from the date such notice is delivered to notify the
Transferring Entity (and the Participant if its Affiliate is the Transferring
Entity) whether it elects to acquire the offered interest at the same price (or
its monetary equivalent in cash or currency) and on the same terms and
conditions as set forth in the notice. If it does so elect, the acquisition by
the other Participant shall be consummated promptly after notice of such
election is delivered. 

                    (a)     
If the other Participant fails to so elect within the period provided for above,
the Transferring Entity shall have one hundred and twenty (120) days following
the expiration of such period to consummate the Transfer to a third party at a
price and on terms no less favorable to the Transferring Entity than those
offered by the Transferring Entity to the other Participant in the
aforementioned notice. 

                    (b)     
If the Transferring Entity fails to consummate the Transfer to a third party
within the period set forth above, the preemptive right of the other Participant
in such offered interest shall be deemed to be revived. Any subsequent proposal
to Transfer such interest shall be conducted in accordance with all of the
procedures set forth in this Paragraph. 

          1.2     
Exceptions to Preemptive Right. Paragraph 1.1 above shall not apply to
the following: 

                    (a)      The
Transfer by either Participant of all or any part of its Participating Interest
to an Affiliate. 

                    (b)     
Incorporation of either Participant, or corporate consolidation or
reorganization of either Participant by which the surviving entity shall possess
substantially all of 

G-1 

the stock or all of the property rights and interests, and be
subject to substantially all of the liabilities and obligations of that
Participant. 

                    (c)     
Corporate merger or amalgamation involving either Participant by which the
surviving entity or amalgamated company shall possess all of the stock or all of
the property rights and interests, and be subject to substantially all of the
liabilities and obligations of that Participant; 

                    (d)      The
transfer of Control of either Participant by an Affiliate to such Participant or
to another Affiliate. 

                    (e)      Subject
to Subsection 16.2(g) of the Agreement, the grant by either Participant of a
security interest in its Participating Interest by Encumbrance. 

                    (f)     
The creation by any Affiliate of either Participant of an Encumbrance affecting
its Control of such Participant. 

                    (g)      A
sale or other commitment or disposition of Products or proceeds from sale of
Products by either Participant upon distribution to it pursuant to Article XI of
the Agreement. 

G-2Filed by Automated Filing Services Inc. (604) 609-0244 - Miranda Gold Corp. - Exhibit 10.14

 

September __, 2005

 

Mr. Dennis L. Higgs and Mr. Kenneth Cunningham 
Miranda Gold
Corp.
Miranda U.S.A., Inc. 
Suite 1410 – West Pender St 
Vancouver,
B.C.
Canada V6C 2V6

	Re: 	Binding Letter Agreement for Exploration and
      Development and Mining 
	  	Joint Venture on the Fuse East Project,
      Eureka County, Nevada. 

Dear Dennis and Ken:

          This
letter will confirm the agreement we have reached and set forth the terms and
conditions of an Exploration and Development Agreement among Placer Dome U.S.
Inc. (“PDUS”), Miranda Gold Corp. (“Miranda”) and Miranda U.S.A., Inc., a
wholly-owned subsidiary of Miranda (“MUI”), covering MUI’s Fuse East Project
located in Eureka County, Nevada (the “Property”), as more particularly
described in Exhibit A attached hereto and incorporated herein by reference.
Pursuant to this letter agreement, PDUS will have the exclusive right to conduct
exploration and development activities on the Property and, if PDUS elects to
fulfill certain payment and expenditure requirements, PDUS will acquire an
interest in the Property and the parties will enter into a Joint Venture
Agreement covering future activities on the Property. PDUS, Miranda and MUI will
be collectively referred to hereinafter as the “Parties,” and individually as a
“Party.”

I.      
 INITIAL AGREEMENTS

          A.      Within
five business days after the date of execution of this letter agreement by each
of Miranda and MUI (the “Effective Date”), PDUS shall make an initial payment to
MUI of $30,000 (the “Initial Payment”). In addition, within five business days
after the Effective Date, PDUS shall promptly make a payment to MUI in the
amount of $26,201 (the “Reimbursement Payment”). The Reimbursement Payment shall
reimburse MUI for (i) claim location and maintenance fees and associated filing
and recording costs incurred by MUI with respect to the 45 new unpatented mining
claims identified with an asterisk on Exhibit A, and (ii) claim maintenance fees
paid with respect to all of the Claims (as defined in Section II.C.3) in August
of 2005. To the 

Mr. Dennis L. Higgs 
September __, 2005 
Page 2

extent that PDUS makes a reasonable determination that any of
those 45 claims are invalid, PDUS shall notify MUI, and PDUS shall be entitled
to deduct an amount equivalent to $165 per invalid claim from the Periodic
Payment made on the first Anniversary Date.

          B.     
Upon execution of this letter agreement, MUI shall make available to PDUS all
records, information and data in its possession or reasonably available to it
relating to title to the Property or environmental conditions at or pertaining
to the Property, and all maps, assays, surveys, technical reports, drill logs,
samples, mine, mill, processing and smelter records, and metallurgical,
geological, geophysical, geochemical, and engineering data, and interpretive
reports derived therefrom, concerning the Property, and PDUS, at its expense,
may copy any such records, information and data that PDUS desires. MUI makes no
representation or warranty as to the accuracy, reliability or completeness of
any such records, information or data, and PDUS shall rely on the same at its
sole risk. If at any time on or before 5:00 p.m. Pacific Standard Time on the
date that is 60 days after the Effective Date of this letter agreement (the “Due
Diligence Period”), PDUS notifies MUI of a defect in title to all or any portion
of the Claims that is unacceptable to PDUS in its sole discretion, or of
environmental conditions associated with the Property that are unacceptable to
PDUS in its sole discretion, PDUS may terminate this letter agreement. In the
event of such termination, PDUS shall have no further obligation or liability to
Miranda or MUI whatsoever under this letter agreement with respect to the
Property or otherwise.

          C.      MUI
hereby grants to PDUS, effective as of the end of the Due Diligence Period, or
such earlier date as PDUS notifies Miranda that PDUS is satisfied with its due
diligence, the exclusive right to possession of the Property and to enter upon
the Property for purposes of performing Exploration, Development and Related
Work (as defined in the attached Exhibit B), and the right to acquire an
undivided 60% interest in the Property by incurring certain Work Expenditures
(as defined in the attached Exhibit C) as set forth below (the “Acquisition
Right”). PDUS shall have the additional right to conduct on the Property
exploration and development activities related to exploration and development
activities of PDUS on properties adjacent to or nearby the Property. PDUS’s
rights shall also include all other rights necessary or incident to or for the
performance of its activities hereunder, including, but not limited to the
authority to apply for all necessary permits, licenses and other approvals from
the United States of America, the State of Nevada or any other governmental or
other entity having regulatory authority over any part of the Property. Miranda
agrees to cooperate with PDUS in good faith as necessary for PDUS to obtain such
licenses, permits or approvals.

II.      EXPLORATION
PERIOD

          A.      Miranda,
MUI and PDUS agree that during a five-year Earn-In Period commencing effective
as of September __, 2005 and terminating on September __, 

Mr. Dennis L. Higgs 
September __, 2005 
Page 3

2010, PDUS may exercise the Acquisition Right (if it has
incurred the required amount of Work Expenditures and made all of the Periodic
Payments) at any time during that Earn-In Period. Upon exercise of the
Acquisition Right, PDUS shall have earned an undivided 60% interest in the
Property, and MUI shall promptly convey to PDUS an undivided 60% interest in the
Property, by a special warranty or grant, bargain and sale deed acceptable to
PDUS, by which MUI conveys an undivided 60% interest in the Property to PDUS
free and clear of all liens, claims, defects, encumbrances and other burdens on
production arising by, through or under Miranda or MUI. The parties agree that
in the event MUI fails to comply with its obligations under this paragraph II.A,
PDUS shall be entitled to the remedy of specific performance, as well as all
other legal and equitable remedies available to it in connection with such
failure.

          B.      In
order to keep this letter agreement in full force and effect and retain its
Acquisition Right, in addition to the Initial Payment, PDUS must make annual
cash payments to MUI (“Periodic Payments”) in accordance with the following
schedule:

	Due Date 	 	Amount 
	  	 	  
	First Anniversary Date 	 	$27,000 
	Second Anniversary Date 	 	$36,000 
	Third Anniversary Date 	 	$45,000 
	Fourth Anniversary Date 	 	$45,000 
	Fifth Anniversary Date 	 	$67,500

For purposes of this letter agreement, the term “Anniversary
Date” shall mean the date one or more years following the Effective Date of this
letter agreement. Under no circumstances shall the obligation to make any
Periodic Payment under this paragraph II.B be deemed to have accrued prior to
the date such payment is due; provided, however, that if PDUS accelerates the
schedule for completion of the Work Expenditures pursuant to paragraph II.C.2,
PDUS must pay the entire amount of remaining Periodic Payments owed to MUI in
order to exercise the Acquisition Right.

          C.      In
order to keep this letter agreement in full force and effect and retain its
Acquisition Right, PDUS must also incur minimum Work Expenditures of $1,777,500
during the Earn-In Period, in order to earn a vested 60% interest in the
Property. Other than the obligation to incur at least $75,000 in Work
Expenditures during the first annual period beginning on September __, 2005 and
ending on September __, 2006, and to incur an additional $100,000 in Work
Expenditures during the second annual period beginning on September __, 2006 and
September __, 2007, each of which is a firm commitment of PDUS, PDUS shall have
no obligation to incur any Work Expenditures and, at its sole discretion, shall
have the right to terminate this letter agreement (and its right to acquire an
interest in the Property) at any time during the Earn-In Period. Such
termination shall be effective 30 days after receipt of written notice of the
same by MUI. In the event of such termination, PDUS shall have no 

Mr. Dennis L. Higgs 
September __, 2005 
Page 4

obligation to make any additional Periodic Payments or to incur
any additional Work Expenditures and no further obligations or liability to
Miranda or MUI whatsoever, other than (i) the obligation to reclaim the surface
of the Property in accordance with paragraph II.G (for which MUI agrees to grant
PDUS such access following termination as is reasonably necessary), and (ii) the
obligations set forth in paragraph II.I. In the event of such termination by
PDUS, Miranda and MUI shall retain their obligations set forth in paragraphs
II.D.2, II.I and II.N.6(b). In the event of such termination, Miranda and MUI
expressly agree that PDUS shall not be liable for any actual, incidental or
consequential damages, or lost profits, incurred by either of them as a result
of PDUS’s election not to or failure to (i) incur all or any part of the
required amount of Work Expenditures or (ii) exercise the Acquisition Right. If
PDUS terminates this letter agreement at any time during the first or the second
Annual Period (as defined below), and as of the effective date of such
termination PDUS has incurred less than $175,000 in Work Expenditures, then PDUS
shall be obligated to pay to MUI an amount equal to the difference between the
amount of Work Expenditures actually incurred by PDUS as of the effective date
of such termination and $175,000. All of the Exploration, Development and
Related Work which may be performed by PDUS shall be performed in accordance
with good mining industry practices, but the timing, nature, manner and extent
of any exploration, development or any other operations or activities hereunder
shall be in the sole discretion of PDUS, and there shall be no implied covenant
to begin or continue any such operations or activities.

                    1.      The
amounts of Work Expenditures required to be made on or for the benefit of the
Property in order for PDUS to keep this letter agreement in full force and
effect and retain the Acquisition Right are set forth in the following schedule
(all amounts set forth below and elsewhere in this letter agreement are in U.S.
dollars):

	 	(a) 	
      $75,000 (which is a firm commitment, as set forth above)
      during the period from September __, 2005 through September __,
    2006;

	 	 	 
	 	(b) 	
      $100,000 (which is a firm commitment, as set forth above)
      during the period from September __, 2006 through September __,
    2007;

	 	 	 
	 	(c) 	
      $200,000 (optional) during the period from September __,
      2007 through September __, 2008;

	 	 	 
	 	(d) 	
      $402,500 (optional) during the period from September __,
      2008 through September __, 2009; and

	 	 	 
	 	(e) 	
      $1,000,000 (optional) during the period from September
      __, 2009 through September __, 2010.

Mr. Dennis L. Higgs 
September __, 2005 
Page 5

                    2.      PDUS
shall provide MUI with a report of its Work Expenditures, certified by PDUS as
being accurate and complete, not later than 60 days after the end of each of the
periods referred to in paragraph II.B.1(a)-(d) above (an “Annual Period”) during
the Earn-In Period, which will include such information as is reasonably
necessary for MUI to confirm that PDUS has incurred the required minimum amount
of Work Expenditures during the Annual Period in question. If PDUS elects not to
incur the required amount of Work Expenditures during any Annual Period but
desires to keep this letter agreement in full force and effect, or if for any
reason it is determined that the entire amount of required Work Expenditures is
not completed during any Annual Period, then, in order to maintain its interest
in this letter agreement, PDUS shall be required to pay the amount of any
agreed-upon deficiency to MUI, within 30 days after the Parties reach agreement
as to the amount of the deficiency. If PDUS is precluded from timely completion
during any Annual Period of any or all of the required Work Expenditures set
forth above, due to any event of force majeure, the time periods for incurring
all of the Work Expenditures shall be extended for a period of time equal to
that of the delay(s), provided that under no circumstances shall the Earn-In
Period extend beyond September ___, 2016. The term “force majeure,” as employed
herein, shall mean acts of God, the elements, strikes, lockouts or other
industrial disturbances, unavoidable accidents, uncontrollable delays in
transportation, inability to obtain necessary materials in the open market,
damage to, destruction or unavoidable shutdown of, necessary facilities, the
application of any state or federal laws, regulations or requirements (expressly
including inability to timely obtain, after diligent efforts, necessary
governmental approvals, licenses and permits on terms reasonably acceptable to
PDUS or the imposition of material new requirements for approvals, licenses or
permits that did not exist on the Effective Date), actions taken by
non-governmental organizations, or other matters beyond the reasonable control
of PDUS, whether similar to matters specifically enumerated above or not;
provided, however, that performance shall be resumed within a reasonable period
of time after such cause has been removed; and provided further that PDUS shall
not be required against its will to adjust any labor dispute or to question the
validity of or to refrain from judicially testing the validity of any state or
federal order, regulation or law. Work Expenditures in excess of the amount
required during any Annual Period may be carried forward as a credit for any
subsequent Annual Period. PDUS may in its sole discretion accelerate the
schedule for completion of the required Work Expenditures (and making the
required Periodic Payments) in order to exercise its Acquisition Right at any
time during the Earn-In Period.

                    3.      So
long as it desires to keep the letter agreement in full force and effect and
retain its Acquisition Right, PDUS will, subject to the provisions of paragraph
II.H below, timely pay all federal claim maintenance fees required to maintain
the unpatented mining claims within the Property (the “Claims”). So long as it
timely pays the claim maintenance fees as required under this paragraph II.C.3,
PDUS shall have the right if it so elects, but no duty, to defend the Claims
from, and no liability 

Mr. Dennis L. Higgs 
September __, 2005 
Page 6

whatsoever to Miranda or MUI as the result of a loss of any of
the Claims due to, a challenge by any third party or any U.S. government
agency.

                    4.      The
Parties acknowledge that they have entered into a Binding Letter Agreement for
the Fuse West Project of even date herewith (the “Fuse West Agreement”). The
Parties agree that if PDUS terminates the Fuse West Agreement in its entirety,
thereafter (a) the amount of each Periodic Payment due hereunder shall be
increased by the amount of each Periodic Payment set forth in the Fuse West
Agreement (effective on the next Anniversary Date), and (b) the amount of Work
Expenditures required hereunder shall be increased by the amount set forth in
the Fuse West Agreement, on a pro rata basis, for each subsequent Annual Period
during the Earn-In Period.

          D.      1.      During
the Earn-In Period, PDUS shall provide to MUI (1) quarterly progress reports
(for each quarter when it has incurred any Work Expenditures), and (2) a
comprehensive annual summary report not later than 60 days after the end of each
Annual Period. The quarterly reports, which shall be delivered by PDUS to MUI
not later than 20 days after the end of each calendar quarter during each Annual
Period, shall include, at a minimum, information relating to assays, drill logs
and samples (for quarters in which drilling results became available), and
non-interpretive metallurgical, geological, geophysical, geochemical and
engineering data (but not interpretive reports derived therefrom) developed by
PDUS during the immediately pervious quarter. The annual comprehensive report,
which shall be delivered by PDUS to MUI not later than 60 days after the end of
every Annual Period, shall include information relating to title to the
Property, environmental conditions at or pertaining to the Property, and all
maps, assays, surveys, drill logs, samples, and non-interpretive metallurgical,
geological, geophysical, geochemical and engineering data (but not interpretive
reports derived therefrom), developed by PDUS during the previous Annual Period;
provided, however, that PDUS shall have no obligation to make any data or
reports developed by it or on its behalf available to MUI under this paragraph
II.D if such data or reports are proprietary to or constitute trade secrets or
are derived from techniques that are proprietary to or constitute trade secrets
of PDUS (or any third-party consultant that compiled or created them). PDUS
makes no representation or warranty as to the accuracy, reliability or
completeness of any data and information provided to the other Parties pursuant
to this paragraph II.D, and Miranda and MUI shall rely on the same at their sole
risk.

                    2.      During
the Earn-In Period, MUI and its authorized agents, at MUI’s sole risk and
expense, shall have the right, exercisable during regular business hours, at a
mutually convenient time, in compliance with PDUS’s safety rules and regulations
(which may or may not include written confirmation of their waiver of claims
against PDUS), and in a reasonable manner so as not to interfere with PDUS’s
operations, to go upon the Property for the purpose of confirming that PDUS is
conducting its operations in the manner required by this letter agreement.
Miranda and MUI shall, 

Mr. Dennis L. Higgs 
September __, 2005 
Page 7

jointly and severally, defend, indemnify and hold PDUS harmless
from and against all claims for Losses (as defined in paragraph II.I) arising
out of any death, personal injury or property damage sustained by MUI, its
agents or employees, while in or upon the Property pursuant to this paragraph
II.D.2, unless such death, injury or damage is due to PDUS’s gross negligence or
willful misconduct.

          E.     
1.      With respect to the Claims, Miranda and
MUI, jointly and severally, represent and warrant to the best of their
respective knowledge (a) that MUI owns an undivided 100% interest in the Claims
free and clear of all liens, claims, defects, encumbrances or other burdens on
production arising by, through or under Miranda or MUI; and (b) that as to each
of the Claims, MUI is in exclusive possession thereof, and that, subject to the
paramount title of the United States of America: (i) the Claims were properly
located and monumented on available public domain land, and constitute a compact
group of contiguous claims free and clear of any interior gaps or conflicting
claims of which MUI is aware; (ii) location notices and certificates and
required maps were properly posted and recorded for each of the Claims; (iii)
all filings and recordings required to maintain the Claims in good standing
through the Effective Date of this letter agreement, including evidence of
proper performance of annual assessment work or payment of required claim
maintenance fees, have been timely and properly made in the appropriate
governmental offices; (iv) assessment work, performed reasonably and in good
faith in accordance with accepted industry practice, which to the best of
knowledge of Miranda and MUI was sufficient to satisfy the requirements for
maintaining the Claims, was performed through the assessment year ending
September 1, 1992; (v) all required annual claim maintenance fees and other
payments necessary to maintain the Claims through the assessment year ending
September 1, 2006, have been timely and properly made; and (vi) each of the
Claims has been remonumented as necessary, and evidence of such remonumentation
has been timely and properly recorded, all in compliance with the provisions of
Nevada Revised Statutes § 517.030.

                    2.     
Miranda and MUI, jointly and severally, further represent and warrant (a) that
MUI has conducted all operations on the Property in compliance with applicable
federal, state and local laws, rules, and regulations, including Environmental
Laws, and that there are no outstanding reclamation, restoration or clean-up
obligations or liabilities pertaining to the Property; (b) that there is no
pending or threatened litigation or administrative action or proceeding
affecting the Property and they have received no notices of violation or consent
orders with respect to the Property or any operations thereon; (c) that to the
best of their respective knowledge there is no condition or activity at the
Property which constitutes a nuisance or which could result in a violation of or
liability under any applicable Environmental Laws (as defined in Exhibit B), and
that there have been no releases of Hazardous Materials (as defined in Exhibit
B), from or affecting the Property other than in accordance with such laws; (d)
that by entering into this letter agreement they will not be in violation of or
cause a default under any oral or written agreement to which either of them is a
party, and that 

Mr. Dennis L. Higgs 
September __, 2005 
Page 8

each of them has obtained any consents required under any such
agreements in order for it to enter into this letter agreement; (e) that there
are no royalties encumbering the Property; and (f) that the Property does not
constitute all or substantially all of the assets of either Miranda or MUI.

          F.      Each
of PDUS, on the one hand, and Miranda and MUI (collectively), on the other hand,
represents and warrants to the other that: 

                    1.      It
is a corporation duly organized, validly existing, and in good standing under
the laws of its state or province of incorporation, and (with respect to PDUS
and MUI) is qualified to do business and in good standing under the laws of the
State of Nevada.

                    2.     
It has the requisite power and authority (a) to enter into this letter agreement
and all other agreements contemplated hereby, and (b) to carry out and perform
its obligations under the terms and provisions of this letter agreement and all
agreements contemplated hereby.

                    3.      All
requisite corporate action on its part, and on the part of its officers,
directors, and shareholders, necessary for the execution, delivery, and
performance by it of this letter agreement and all other agreements contemplated
hereby, have been taken. This letter agreement and all agreements and
instruments contemplated hereby are, and when executed and delivered by it
(assuming valid execution and delivery by the other Party), will be, legal,
valid, and binding obligations of it enforceable against it in accordance with
their respective terms. The execution, delivery and performance by it of this
letter agreement will not violate any provision of law; any order of any court
or other agency of government; or any provision of any indenture, agreement or
other instrument to which it is a party or by which its properties or assets are
bound; or be in conflict with, result in a breach of or constitute (with due
notice and lapse of time) a default under any such indenture, agreement or other
instrument. There is no law, rule or regulation, nor is there any judgment,
decree or order of any court or governmental authority binding on it which would
be contravened by the execution, delivery, performance, or enforcement of this
letter agreement or any instrument or agreement required hereunder.
Notwithstanding the foregoing, no representation is made as to (a) the
availability of equitable remedies for the enforcement of this letter agreement
or any other agreement contemplated hereby or (b) rights to indemnity under this
letter agreement for securities law liability. Additionally, this representation
is limited by applicable bankruptcy, insolvency, moratorium, and other similar
laws affecting generally the rights and remedies of creditors and secured
parties.

          G.      PDUS
agrees to be responsible for and perform all reclamation required by federal,
state and local laws, rules and regulations in connection with any activities or
operations conducted by it or on its behalf on the Property during the Earn-In
Period. 

Mr. Dennis L. Higgs 
September __, 2005 
Page 9

If PDUS exercises the Acquisition Right, PDUS’s reclamation
obligations under this paragraph II.G will become obligations of the
Venture.

          H.     
The Parties agree that, in addition to its right to terminate this letter
agreement in its entirety at any time, with respect to the Claims, at any time
during the term of this letter agreement, PDUS may in its sole discretion elect
to terminate its interest under this letter agreement in any portion of the
Claims, to the extent allowed under the Mining Lease. In that event, those
Claims will no longer be deemed to comprise a portion of the Property for any
purposes under this letter agreement, and PDUS shall have no further liabilities
or obligations (other than those that have accrued hereunder prior to the
effective date of such termination) with respect to those Claims. An election by
PDUS to terminate its interest in some but less than all of the Claims pursuant
to this paragraph II.H shall be effective upon PDUS providing written notice of
such election to MUI. If PDUS provides notice to MUI of PDUS’s election to
terminate its interest in any of the Claims later than July 1st of any year,
PDUS shall be obligated to pay the claim maintenance fees for those Claims for
the following assessment year despite such termination. If PDUS drops any Claims
from the letter agreement pursuant to this paragraph II.H, the Periodic Payment
requirements set forth in paragraph II.B and the Work Expenditure requirements
set forth in paragraph II.C shall remain unchanged.

          I.      1.      PDUS
agrees to indemnify, defend and hold Miranda and MUI, and their respective
officers, directors, successors and assigns, harmless from and against any and
all claims, actions, suits, losses, liabilities, damages, assessments,
judgments, costs and expenses, including reasonable attorneys’ fees and other
costs of defending the same (collectively, “Losses”) arising from or related to
(a) any breach by PDUS of any of its covenants or representations and warranties
set forth in this letter agreement, or (b) any activities conducted by on or
behalf of PDUS on the Property. Miranda and MUI, jointly and severally, agree to
indemnify, defend and hold PDUS, its officers, directors, successors and
assigns, harmless from and against any and all Losses arising from or related to
(a) the administrative dissolution of Miranda U.S.A., Inc., a Wyoming
corporation or the subsequent incorporation of Miranda U.S.A., Inc., a Nevada
corporation, (b) any breach by either Miranda or MUI of any of their respective
covenants or representations and warranties set forth in this letter agreement,
or (c) any activities conducted by or on behalf of MUI on the Property. The
indemnification obligations set forth in this paragraph II.I shall survive the
termination of this letter agreement. For purposes of this paragraph II.I, the
Parties agree that PDUS will be obligated to indemnify Miranda and MUI for
Losses arising out of or related to activities undertaken by PDUS as exploration
operator only to the extent that those activities constitute gross negligence or
willful misconduct on the part of PDUS.

                    2.     
The Parties hereto, within five (5) days after the service of process upon
either of them in a lawsuit, including any notices of any court action or
administrative action (or any other type of action or proceeding), or promptly
after either 

Mr. Dennis L. Higgs 
September __, 2005 
Page 10

of them, to its respective knowledge, shall become subject to,
or possess actual knowledge of, any damage, liability, loss, cost, expense, or
claim to which any of the indemnification provisions set forth in this letter
agreement relate, shall give written notice to the other party setting forth the
facts relating to the claim, damage, or loss, if available, and the estimated
amount of the same. “Promptly” for purposes of this paragraph II.I.2
shall mean giving notice within ten (10) days, provided that the failure to
promptly notify the indemnifying party shall not operate to waive, reduce or
extinguish the indemnified party’s rights hereunder unless such failure
materially prejudices the indemnifying party. Upon receipt of such notice
relating to a lawsuit, the indemnifying party shall be entitled to (i)
participate at its own expense in the defense or investigation of any claim or
lawsuit or (ii) assume the defense thereof, in which event the indemnifying
party shall not be liable to the indemnified party for legal or attorney fees
thereafter incurred by such indemnified party in defense of such action or
claim; provided, that if the indemnified party may have any unindemnified
liability out of such claim, such party shall have the right to approve the
counsel selected by the indemnifying party, which approval shall not be withheld
or delayed unreasonably. If the indemnifying party assumes the defense of any
claim or lawsuit, all costs of defense of such claim or lawsuit shall thereafter
be borne by such party and such party shall have the authority to compromise and
settle such claim or lawsuit, or to appeal any adverse judgment or ruling with
the cost of such appeal to be paid by such party; provided, however, if the
indemnified party may have any unindemnified liability arising out of such claim
or lawsuit the indemnifying party shall have the authority to compromise and
settle each such claim or lawsuit only with the written consent of the
indemnified party, which shall not be withheld or delayed unreasonably. The
indemnified party may continue to participate in any litigation at its expense
after the indemnifying party assumes the defense of such action. In the event
the indemnifying party does not elect to assume the defense of a claim or
lawsuit, the indemnified party shall have authority to compromise and settle
such claim or lawsuit only with the written consent of the indemnifying party,
which consent shall not be unreasonably withheld or delayed, or to appeal any
adverse judgment or ruling, with all costs, fees, and expenses indemnifiable
under this letter agreement to be paid by the indemnifying party. Upon the
indemnified party’s furnishing to the indemnifying party an estimate of any
loss, damage, liability, or expense to which the indemnification provisions of
this letter agreement relate, the indemnifying party shall pay to the
indemnified party the amount of such estimate within ten (10) days of receipt of
such estimate, unless the indemnifying party in good faith disputes its
liability with respect to any such claim. 

          J.      No
Party may assign its interest in this letter agreement to any third party
without the prior written consent of the other Parties, such consent not to be
unreasonably withheld or delayed; provided, however, that no such consent will
be necessary in connection with (i) assignments to affiliates or subsidiaries,
(ii) assignments by PDUS to the Cortez Joint Venture or its participants, (iii)
a pledge for financing purposes, (iv) corporate merger or reorganization, (v)
assignments by PDUS to certain third parties pursuant to existing contractual
arrangements, or (vi) a sale of all 

Mr. Dennis L. Higgs
 September __, 2005 
Page 11

or substantially all of the assigning Party’s assets. Any
assignee of any Party or assignee or transferee of any interest in the Property
shall agree in writing to be bound by all of the terms and conditions of this
letter agreement. This letter agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns. Upon an
assignment by PDUS to which Miranda and MUI consent, PDUS shall have no further
obligations or liabilities under this letter agreement.

          K.     
Following completion of the minimum amount of Work Expenditures and payment of
all the Periodic Payments, PDUS will have earned an undivided 60% interest in
the Property and shall be entitled to exercise the Acquisition Right. If PDUS
exercises the Acquisition Right, MUI shall immediately convey to PDUS an
undivided 60% interest in the Property, and PDUS and MUI will enter into a joint
venture agreement (the “Joint Venture Agreement”) covering further activities at
the Property. The formal Joint Venture Agreement will generally follow the form
of the Rocky Mountain Mineral Law Foundation Forms 5 and 5A model joint venture
agreements, and will contain the terms and provisions set forth in Section III
below and such other terms and conditions as are mutually agreeable (subject to
an obligation on the part of each Party to negotiate such other terms and
conditions in good faith) to the Parties. Until the Joint Venture Agreement is
executed and delivered the Parties agree that they will be legally bound by the
provisions of this paragraph II.K and the provisions of Section III.

          L.      PDUS
and MUI agree that their relationship shall constitute a tax partnership within
the meaning of Section 761(a) of the United States Internal Revenue Code of
1986, as amended (the “Code”), and that, to the extent permissible under
applicable law, their relationship shall be treated for state income tax
purposes in the same manner as it is for federal income tax purposes. Except for
the tax partnership referred to in the preceding sentence and established
pursuant to the provisions of Exhibit D attached hereto and incorporated herein
by reference, nothing contained in this letter agreement shall be deemed to
constitute either Miranda and MUI (collectively) or PDUS the partner of the
other, nor, except as otherwise herein expressly provided, to constitute either
Miranda and MUI (collectively) or PDUS the agent or legal representative of the
other, nor to create any fiduciary relationship between them. It is not the
intention of the Parties to create, nor shall this letter agreement be construed
to create, any mining, commercial, or other partnership, other than the tax
partnership as set forth in Exhibit D. No Party shall have any authority to act
for or to assume any obligation or responsibility on behalf of the other
Parties, except as otherwise expressly provided herein.

          M.      Simultaneous
with the execution of this letter agreement, the parties agree to execute for
recording purposes a written Short Form of Agreement, in the form attached
hereto as Exhibit E, setting forth the basic terms and conditions of this letter
agreement as necessitated by Nevada law. That Short Form may be recorded by 

Mr. Dennis L. Higgs
 September __, 2005 
Page 12

PDUS in the official records of Eureka County. None of the
Parties shall record this letter agreement.

          N.      Where
any Party hereto or any affiliate (collectively, the “Discloser”) is required by
Canadian National Instrument 43-101 Standards of Disclosure for Mineral
Projects, as amended from time to time (“NI 43-101”), to file a Technical
Report (as defined in NI 43-101) with respect to the Property:

                    1.      neither
the non-disclosing Parties nor their respective affiliates shall have any
obligation to the Discloser to prepare or provide the Technical Report or any
part thereof, or to provide or make available a Qualified Person (as defined in
NI 43-101) to the Discloser;

                    2.      the
Discloser shall not designate either of the other Parties or any associate,
affiliate or employee of or retained by either of the other Parties, or any
Qualified Person of the other Parties, as the Qualified Person of the Discloser,
without the prior written consent of the other Parties;

                    3.      the
Discloser shall be responsible for the cost of preparing or providing the
Technical Report;

                    4.      the
Discloser’s designation of a third party Qualified Person shall be subject to
the other Parties’ prior written consent, such consent not to be unreasonably
withheld;

                    5.     
the non-disclosing Parties shall be entitled to access to all pertinent
information related to that portion of the Technical Report pertaining to the
Property and shall be afforded a reasonable opportunity to review and the
opportunity (but not the obligation) to require reasonable changes to that
portion of the Technical Report prior to the filing of the Technical Report with
applicable regulatory authorities; 

                    6.      where
Miranda is the Discloser, Miranda may request and PDUS may elect (but shall have
no obligation) to prepare and provide the Technical Report and to designate the
Qualified Person to prepare or supervise the preparation of such Technical
Report, all at the expense of Miranda. In the event that PDUS prepares or
provides the Technical Report pursuant to this paragraph II.N.6, then Miranda
shall:

	 	(a) 	
      use such Technical Report only for the purpose of
      compliance with NI 43-101 and for no other purpose; and

	 	 	 
	 	(b) 	
      defend, indemnify and hold PDUS and its directors,
      officers, employees, agents, representatives and subcontractors (the “PDUS
      Indemnified Parties”) harmless from and against any and all Losses,
      whether direct or indirect, which at any time or from time to time are
      directly or indirectly incurred or

Mr. Dennis L. Higgs 
September __, 2005 
Page 13

suffered by any of the PDUS Indemnified Parties or their
respective successors or assigns in connection with, as a result of or arising
out of the preparation or provision of the Technical Report and the
dissemination of same. For greater certainty, no termination of this letter
agreement shall prevent any of the PDUS Indemnified Parties or their respective
successors or assigns from obtaining indemnification from Miranda pursuant to
this paragraph II.N.6(b); and 

                    7.      where
Miranda is the Discloser and PDUS obtains information subsequent to the filing
of the Technical Report which renders the Technical Report inaccurate, Miranda
shall at PDUS’s request disseminate such information in a manner which satisfies
Miranda’s obligations under applicable securities laws, and if Miranda fails to
do so then PDUS shall have the right (but not the obligation) to do so on
Miranda’s behalf.

          O.      The
Parties agree that the terms and conditions of this letter agreement will apply
and extend to any right, title or interest hereafter acquired during the Earn-In
Period by (i) MUI in or to the Property or within the Area of Interest (as
defined in Exhibit C), or (ii) PDUS within the Area of Interest, without payment
of additional consideration.

          P.     
The Parties agree that this letter agreement shall be governed by Nevada law,
other than its rules as to conflicts of law. The parties hereby agree and
consent to the non-exclusive jurisdiction of the United States District Court
for the District of Nevada with respect to any disputes arising under or
concerning the interpretation of this letter agreement.

          Q.      The
Parties agree that this letter agreement shall be construed to benefit the
parties hereto and their respective permitted successors and assigns only, and,
except as set forth in paragraph II.I, shall not be construed to create any
third party beneficiary rights in any other party or in any governmental
organization or agency. 

          R.      The
use of the term “including” anywhere in this letter agreement shall be deemed to
mean “including without limitation.” Representations and warranties in this
letter agreement made to the best of a Party’s knowledge shall mean the Party
making the representation and warranty has made a prudent and reasonable
investigation of the underlying facts that form the basis of the representation
and warranty.

          S.      In
the event of a material default hereunder on the part of PDUS, MUI shall give to
PDUS written notice specifying the particular default or defaults asserted, and,
in the case of a default other than with respect to the payment of money, PDUS
shall have thirty days after the receipt of said notice (or in the event PDUS
disputes the existence of such a material default, thirty days after the entry
by a court of competent 

Mr. Dennis L. Higgs 
September __, 2005
 Page 14

jurisdiction of a final judgment finding such a default) within
which either to cure such specified defaults, or to undertake diligent efforts
to cure the same. In the event of such a cure (or the commencement of diligent
efforts to cure) by PDUS, this letter agreement shall continue in full force and
effect as though no default had occurred. In the event such curative action is
not so completed or diligent efforts to cure such defaults are not undertaken
within the applicable 30-day period and thereafter diligently pursued to
completion, MUI may elect to terminate this letter agreement by notice to PDUS
as provided in paragraph II.T. In the case of a default by PDUS relating to the
payment of any funds to MUI, or any third party as required hereunder, PDUS
shall have ten business days after receipt of notice of such default to rectify
or dispute the same (in accordance with the same procedures as apply to
non-monetary defaults as set forth above in this paragraph II.S), failing which
MUI may elect to terminate this letter agreement by written notice to PDUS as
provided in paragraph II.T. Upon termination of this letter agreement pursuant
to this paragraph II.S, PDUS shall have no further liability or obligations
hereunder or with respect to the Property (including no liability for lost
profits, consequential or other damages), except with respect to the obligations
set forth in paragraphs II.G and II.I, and Miranda and MUI shall have no further
liability or obligations hereunder, except with respect to the obligations set
forth in paragraphs II.D.2, II.I and II.N.6(b).

          T.      All
notices given in connection herewith shall be in writing, and all such notices
and deliveries to be made pursuant hereto shall be given or made in person, by
certified or registered mail, by reputable overnight courier, or by facsimile
acknowledged upon receipt. Such notices and deliveries shall be deemed to have
been duly given and received when actually delivered in person or sent by
facsimile (during normal business hours), on the next business day following the
date they are sent by courier, or three business days after registered or
certified mailing when deposited in a receptacle for United States mail, postage
prepaid, and addressed as follows:

	 	1. 	
      If to PDUS:

	 	 	 
	 		
      Placer Dome U.S. Inc. 
1125 17th Street, Suite 2310
      
Denver, Colorado, USA 80202 
Attention: General Counsel
      
Telephone No.: (303) 675-0055 
Facsimile No.: (303)
  675-0707

Mr. Dennis L. Higgs 
September __, 2005 
Page 15

			 with a copy to:

	 	 	 
			 Placer Dome U.S. Inc. 

        HC 66 Box 1250

			 Crescent Valley, Nevada, USA 89821 

        Attention: Exploration Manager 

        Telephone No.: (775) 468-4400 

        Facsimile No.: (775) 468-4496

	 	 	 
			 and

	 	 	 
			 Placer Dome U.S. Inc.

        HC 66 Box 1250

			 Crescent Valley, Nevada 89821 

        Attention: Tasha Liebsack 

        Telephone No.: (775) 468-4433 

        Facsimile No.: (775) 468-4496

	 	 	 
	 	2. 	 If to Miranda or MUI:

	 	 	 
			 Miranda Gold Corp.

			 Suite 1410 – 800 West Pender Street 

        Vancouver, B.C.

			 Canada V6C 2V6 

        Attention: Dennis Higgs 

        Telephone No.: (604) 689-1659 

        Facsimile No.: (604) 689-1722

	 	 	 
			 with a copy to:

	 	 	 
			 Miranda Gold Corp. 

        Miranda U.S.A., Inc. 

        5900 Philoree Lane 

        Reno, Nevada 89511

			 Attention: Kenneth D. Cunningham 

        Telephone No.: (775) 849-2347 

        Facsimile No.: (775) 849-2336

          U.      This
letter agreement is the complete expression of all agreements, contracts,
covenants, and promises between the Parties, and all negotiations,
understandings, and agreements between the Parties are set forth in this letter
agreement, which solely and completely expresses their understanding, and shall
be construed without reference to any such negotiations, understandings and
agreements. No implied term, covenant, condition or provision of any kind
whatsoever shall affect 

Mr. Dennis L. Higgs 
September __, 2005 
Page 16

any of the Parties’ respective rights and obligations
hereunder, including, without limitation, rights and obligations with respect to
exploration, development, mining, processing and marketing of minerals, and the
only terms, covenants, conditions or provisions which shall in any way affect
any of their respective rights and obligations shall be those expressly set
forth in this letter agreement. This letter agreement may not be amended or
modified, nor may any obligation hereunder be waived, except by writing duly
executed on behalf of all Parties, and unless otherwise specifically provided in
such writing, any amendment, modification, or waiver shall be effective only in
the specific instance and for the purpose it is given.

          V.     
If at any time during the Earn-In Period MUI desires to sell the Property or any
interest therein, or receives and is willing to accept a bona fide offer from a
third party interested in purchasing or otherwise acquiring all or any portion
of MUI’s interest in the Property, MUI shall promptly notify PDUS of its intent
or its receipt of such an offer. The notice shall state the price and all other
pertinent terms and conditions of transfer that MUI would be willing to accept,
or of any offers received, and shall be accompanied by a copy of any offer or
contract received. If the consideration for the proposed transfer is, in whole
or in part, other than monetary, the notice shall describe such consideration
and its monetary equivalent (based upon the fair market value of the
non-monetary consideration and stated in terms of cash or currency). PDUS shall
then have 60 days after the date it receives such notice to notify MUI whether
PDUS elects to acquire the offered interest at the same price and on the same
terms and conditions as set forth in the notice. If PDUS does so elect, the
transfer shall be consummated promptly after MUI’s receipt of such notice from
PDUS. If PDUS fails to make an election within the 60-day period, MUI shall have
60 days following the expiration of such period to consummate the transfer of
the Property to a third party at a price and on terms no less favorable than
those set forth in the notice. In the event of such a transfer by MUI, that
transfer shall be effective only if made in compliance with paragraph II.J. If
MUI fails to consummate the transfer to a third party within that 60-day period,
PDUS’s rights under this paragraph II.V shall be deemed to be revived. If
pursuant to this paragraph II.V PDUS acquires the Property, this letter
agreement shall be terminated as of the effective date of such acquisition.

          W.     
In the event that any one or more of the provisions contained in this letter
agreement or in any other instrument or agreement contemplated hereby 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 letter agreement or any such other instrument or agreement. In
the event of any controversy, claim, or dispute between the Parties hereto,
arising out of or relating to this letter agreement or the breach thereof, the
prevailing Party shall be entitled to recover from the losing Party reasonable
expenses, attorneys’ fees, and costs. At the request of either Party, the
Parties shall execute and deliver any further instruments, agreements, documents
or other papers reasonably requested by either Party to effect the purposes of
this letter agreement and the transactions contemplated hereby, including any
such instruments, 

Mr. Dennis L. Higgs 
September __, 2005 
Page 17

agreements, documents or other papers as may be necessary to
address any issues arising from the administrative dissolution of Miranda
U.S.A., Inc., a Wyoming corporation or the subsequent incorporation of Miranda
U.S.A., Inc., a Nevada corporation.

          X.      The
Parties hereby agree that any dispute arising under this letter agreement shall
be subject to the informal dispute resolution procedure set forth in this
paragraph II.X. The Party asserting the existence of a dispute as to the
interpretation of any provision of this letter agreement or the performance by
the other Party of any of its obligations hereunder shall notify the other Party
of the nature of the asserted dispute. Within seven business days after receipt
of such notice, Bob Hays (for PDUS) and Ken Cunningham (for Miranda), or their
designated successors, shall arrange for a personal or telephone conference in
which they use good faith efforts to resolve such dispute. If those individuals
are unable to resolve the dispute, either Party may proceed with any legal
remedy available to it; provided, however, that the Parties agree that any
statement made as to the subject matter of the dispute in any of the conferences
referred to in this paragraph II.X shall not be used in any legal proceeding
against the Party that made such statement. For purposes of this paragraph II.X,
Miranda and MUI shall be treated as a single Party.

III.      DEVELOPMENT
PERIOD

          A.      PDUS
shall be the Manager of the business relationship between the parties (the
“Venture”) under the Joint Venture Agreement. PDUS shall, at any time during a
period of 3 years following the date that PDUS exercises the Acquisition Right
(the “Decision Period”) have the right to notify MUI of PDUS’s election to earn
an additional 10% interest in the Property (the “Additional Interest”). In order
to earn the Additional Interest, PDUS must complete or arrange for the
completion of a Feasibility Study (as defined in the attached Exhibit F) at its
sole expense at any time during a period of three years after the date of MUI’s
receipt of PDUS’s notice of such election (the “Completion Period”; such
Completion Period subject to extension due to events of force majeure). In
addition, PDUS may extend the time by which it must have completed the
Feasibility Study for one additional year by providing notice to MUI not later
than 90 days prior to the end of the Completion Period. PDUS shall have the
right to decide and notify MUI at any time after notifying MUI of its election
to complete the Feasibility Study that it no longer wishes to acquire the
Additional Interest.

          B.      During
the Decision Period, PDUS shall be obligated to incur Work Expenditures of not
less than $225,000 annually on or for the benefit of the Property. During the
Decision Period, and thereafter if PDUS elects to earn the Additional Interest,
PDUS shall have no obligation to prepare Programs and Budgets until it has
earned (or elected not to earn) the Additional Interest. If PDUS fails to meet
that minimum Work Expenditure requirement in any year during the Decision
Period, it may make up the shortfall in accordance with the provisions of
paragraph II.C.2. PDUS will 

Mr. Dennis L. Higgs 
September __, 2005 
Page 18

fund all Venture operations through completion of the
Feasibility Study or until PDUS determines it no longer desires to earn the
Additional Interest.

          C.      After
completion of a Feasibility Study, MUI shall have the option (in its sole
discretion) to request that PDUS earn an additional 5% interest in the Property
(the “Supplemental Additional Interest”) by PDUS arranging (at its sole
election) for financing for MUI’s share of ongoing expenditures for the
construction and development of a mine at the Property, or project financing for
the construction and development of a mine at the Property, rather than MUI
being required to directly finance or fund its share of the costs of such
construction and development. MUI agrees that it will make the request to PDUS
that PDUS acquire the Supplemental Additional Interest not later than 120 days
after PDUS delivers a completed Feasibility Study to MUI. If MUI timely makes
that request, PDUS shall use reasonable good faith efforts to arrange for
financing for MUI or to arrange for such project financing; provided, however,
that PDUS shall have no obligation to arrange for any such financing that PDUS’s
Board of Directors, acting in its normal course, is unwilling to approve. If
PDUS is unable to arrange for such financing, PDUS shall notify MUI, and the
Participating Interests shall remain PDUS-70% / MUI-30%. If PDUS arranges for
such financing, it shall be entitled to recover MUI’s share (25%) of (i) the
amount borrowed, (ii) all costs associated with such financing (including
without limitation attorney’s fees, consultant’s fees, and fees payable to any
lender and that lender’s attorneys and consultants), and (iii) interest on the
foregoing amount at a rate to be determined by a mutually agreeable independent
third party (collectively, the “Carried Amount”), from 80% of MUI’s share of net
cash flow from operations from the Property, beginning on the date of
commencement of commercial production from the Property. To secure repayment of
the Carried Amount, MUI shall grant to PDUS, simultaneous with the execution of
the Joint Venture Agreement, a first priority security interest (subordinate
only to the lender with whom PDUS arranges the project financing) in MUI’s
Participating Interest in the Joint Venture Agreement, and execute and deliver
to PDUS a mortgage or deed of trust, U.C.C. Financing Statements, and such other
documents as PDUS may deem reasonably necessary to perfect that security
interest. That security interest will remain in place until PDUS has fully
recovered the Carried Amount. PDUS’s security interest described above will be
in addition to the security interests the Parties grant to each other to secure
the performance of their respective obligations under the Joint Venture
Agreement.

          D.      PDUS
shall be the Manager under the Joint Venture Agreement and will be compensated
with a management fee calculated as set forth in the Joint Venture
Agreement.

          E.      1.      If
PDUS fails or elects not to timely complete a Feasibility Study, then the
Participating Interest percentages of the Participants in the Property shall
remain PDUS – 60%, MUI – 40%, PDUS shall remain the Manager under the Joint
Venture Agreement, and each Participant shall be required to fund its
proportionate 

Mr. Dennis L. Higgs 
September __, 2005 
Page 19

share of Programs and Budgets. In that event, for a period of
three years after the end of (a) the Decision Period or (b) the date MUI
receives notice that PDUS has elected not to earn the Additional Interest, MUI
shall have a one-time option to become the Manager under the Venture and fund
all Operations of the Venture from the date MUI exercises that option for a
period of three years thereafter (such three-year period subject to extension
due to events of force majeure). If MUI completes the Feasibility Study within
that three-year period, the Participants’ Participating Interests shall be
converted to MUI - 70%, PDUS - 30%, and thereafter each Participant shall be
required to fund its proportionate share of Programs and Budgets, subject to the
Joint Venture Agreement’s dilution provisions.

                    2.     
If neither PDUS nor MUI timely elects to complete and completes a Feasibility
Study, thereafter, if at any time PDUS proposes a Program and Budget calling for
annual expenditures in excess of $1,000,000 or less than $200,000, the following
provisions shall apply.

	 	(a)

	
      Whenever PDUS proposes a Program and Budget in excess of
      $1,000,000, MUI shall have a period of 30 days from and after its receipt
      of such a proposed Program and Budget to elect whether or not it desires
      to participate in that Program and Budget at a level that is in accordance
      with its Participating Interest (during this period, MUI shall have the
      right only to participate fully in a proposed Program and Budget, or not
      at all). If MUI elects not to participate in such a  Program and
      Budget, then the standard dilution formula (as described in paragraph
      III.H) will not apply. Rather, in that event, PDUS’s Participating
      Interest shall be increased by one percentage point, and MUI’s
      Participating Interest shall be decreased by one percentage point, for
      each complete $1,000,000 increment spent by it pursuant to that Program
      and Budget. By way of example (but not limitation), if during the relevant
      time period PDUS proposed a  Program and Budget calling for
      expenditures of $4,200,000, and MUI elected not to participate, PDUS’s
      Participating Interest would automatically increase from 60% to 64%, and
      MUI’s Participating Interest would automatically decrease from 40% to 36%.
      Subsequently, if PDUS proposed a Program and Budget calling for
      expenditures of $6,300,000, and MUI elected not to participate, PDUS’s
      Participating Interest would automatically increase from 64% to 70%, and
      MUI’s Participating Interest would automatically decrease from 36% to 30%.
      During the 30-day period referred to in this paragraph III.F.2, PDUS may
      continue to conduct Operations on or for the benefit of the Property
    in

Mr. Dennis L. Higgs 
September __, 2005 
Page 20

	 		
      accordance with either approved or the proposed
      Program(s) and Budget(s), and, if MUI elects to fully participate in the
      proposed Program and Budget, MUI shall promptly reimburse PDUS for MUI’s
      share of all expenditures incurred by PDUS during that period, plus
      interest at the Prime Rate plus two percent. The provisions of this
      paragraph III.E.2(a) shall apply until such time, if any, as PDUS has
      increased its Participating Interest to at least 70%. Thereafter, the
      standard dilution formula (as described in paragraph III.H) shall
      apply.

	 	 	 
	 	(b) 

	
      Whenever PDUS proposes a Program and Budget of less than
      $200,000, MUI shall have a period of 30 days from and after its receipt of
      such a proposed Program and Budget to propose a substitute Program and
      Budget that calls for expenditures in excess of $1,000,000. If PDUS elects
      not to participate in that substitute Program and Budget at a level that
      is in accordance with its Participating Interest (with respect to any
      substitute Program and Budget, PDUS shall have the right only to
      participate fully in any such substitute Program and Budget, or not at
      all), then MUI’s Participating Interest shall be increased by five
      percentage points for each complete $1,000,000 increment spent by it
      pursuant to that substitute Program and Budget. By way of example (but not
      limitation), if during the relevant time period MUI proposed a substitute
      Program and Budget calling for expenditures of $4,200,000, and PDUS
      elected not to participate, MUI’s Participating Interest would
      automatically increase from 40% to 60%, and PDUS’s Participating Interest
      would automatically decrease from 60% to 40%. Subsequently, if MUI
      proposed a substitute Program and Budget calling for expenditures of
      $2,300,000, and PDUS elected not to participate, MUI’s Participating
      Interest would automatically increase from 60% to 70%, and PDUS’s
      Participating Interest would automatically decrease from 40% to 30%. The
      provisions of this paragraph III.E.2.(b) shall apply until such time, if
      any, as MUI has increased its Participating Interest to at least 70%.
      Thereafter, the standard dilution formula (as described in paragraph
      III.H) shall apply.

                    3.      Each
Participant shall then be obligated (subject to its rights to elect dilution) to
contribute to the costs of Operations at the Property in accordance with its
Participating Interest.

Mr. Dennis L. Higgs 
September __, 2005 
Page 21

          F.      PDUS’s
Initial Contribution to the Venture will be deemed to be equal to the actual
amount of PDUS’s Work Expenditures incurred during the Earn-In Period plus
additional expenditures for Operations incurred by PDUS through the point of
completion of a Feasibility Study (or an election by PDUS not to complete the
Feasibility Study), and the amount of MUI’s Initial Contribution will be
determined based on the following formula (where MUI’s contribution equals
x):

	  	  	[Amount of PDUS’s Work Expenditures 
	60% 	= 	and
      additional expenditures] 
	40% 	  	X 

The fraction set forth above shall be 70%/30% (for Equity
Account purposes) if PDUS earns the Additional Interest, and 75%/25% (for Equity
Account purposes) if PDUS earns the Supplemental Additional Interest, and the
Participants will take such actions as are reasonably necessary to make the
Capital Account balances reflect PDUS’s additional expenditures made to earn the
Additional Interest and the Supplemental Additional Interest.

          G.      Except
for the provisions of paragraph III.E to the contrary, if either Participant
elects to participate less than fully or not at all in a proposed Program and
Budget, the standard dilution formula set forth in Section 6.3 of Form 5A will
apply. Once any Participant’s Participating Interest is voluntarily reduced to
less than 5%, that Participant’s Participating Interest shall automatically be
converted to an interest in 2.5% of Net Returns. If a Participant defaults in
contributing to an approved Program and Budget, then, among the remedies
available to it, the non-defaulting Participant may choose to have the
defaulting Participant’s Participating Interest reduced in accordance with the
standard dilution formula plus a penalty of 50% (if the default occurs with
respect to an approved Program and Budget which covers primarily exploration
activities), or to have the defaulting Participant forfeit its entire interest
in the Venture (if the default occurs with respect to an approved Program and
Budget which covers primarily development and/or mining activities), in which
case the defaulting Participant shall have the right to recover from 2.5% of Net
Returns an amount equal to the positive balance in the defaulting Participant’s
Equity Account.

          H.      The
Parties agree to make the same representations and warranties set forth in
paragraphs II.E. and II.F. above, effective as of the effective date of the
Joint Venture Agreement. 

          I.      The
Parties agree that each of them shall be responsible for their share of
liabilities and obligations of the Venture (including without limitation
environmental liabilities and obligations), equivalent to their Participating
Interests in the Venture at the time such obligations or liabilities are
incurred or accrued, notwithstanding any subsequent reduction or conversion of
their Participating Interests.

Mr. Dennis L. Higgs 
September __, 2005 
Page 22

          J.      All
capitalized terms used in this Section III and not defined herein will have the
meaning ascribed to them in Forms 5 and 5A.

IV.     
PUBLICITY AND INFORMATION

          A.      Each
Party, except to the extent required by law or stock exchange rule and then only
after providing the other Parties with not less than three business days to
review and comment on any proposed release or announcement, is prohibited from
issuing any press releases or other public announcements concerning this letter
agreement or any information generated pursuant hereto without the prior written
approval of the other Parties. Miranda and MUI acknowledge that, based upon (a)
information made available by them to PDUS and PDUS’s examination of the
Property with the permission of Miranda and MUI and (b) exploration data from
work on property which PDUS controls in the vicinity of the Property, PDUS has
conducted its own evaluation of the Property and has developed its own theories
and interpretations regarding the Property that are regarded by PDUS as
confidential and/or proprietary to PDUS and which have not been disclosed to
Miranda and MUI. Miranda and MUI agree that in entering into this letter
agreement, they are not relying on PDUS to disclose any such theories,
interpretations or evaluations.

          B.      Except
as set forth in paragraph IV.A, the Parties agree to treat all data, reports,
records and other information developed or made available to them by the other
Party under this letter agreement and applicable to the Property as
confidential, and unless any Party is required by any law, rule, regulation, or
order to disclose any of such information, information shall not be disclosed to
any person without the prior written consent of the non-disclosing Parties,
which consent shall not be unreasonably withheld.

          C.      This
letter agreement is, and the rights and obligations of the Parties are, strictly
limited to the Property and the Area of Interest. Except as expressly provided
herein, the Parties shall have the free and unrestricted right to independently
engage in, and receive the full benefits of, any and all business ventures of
any sort whatever, whether or not competitive with the Property and the
activities undertaken pursuant to the letter agreement, without consulting the
others or inviting or allowing the others to participate therein. None of the
Parties shall be under any fiduciary or other duty to the other which will
prevent it from engaging in or enjoying the benefits of, any competing venture
or ventures outside the Property (except in the Area of Interest). The legal
doctrines of “corporate opportunity” or “business opportunity” as developed or
applied by any court or authority of any jurisdiction and sometimes applied to
persons or legal entities occupying a joint venture or other fiduciary status
shall not be applied to any other activity, venture, or operation of any of the
Parties, whether such opportunity is derived from or based on information
received or activities conducted under this letter agreement or otherwise. 

Mr. Dennis L. Higgs 
September __, 2005 
Page 23

          If
Miranda and MUI are in agreement with the foregoing, please indicate the same by
signing in the space indicated below. Upon PDUS’s receipt of a signed copy of
this letter it will be understood and agreed to by the Parties that this letter
agreement, for and in consideration of the mutual covenants and promises
contained herein, the receipt and sufficiency of which are hereby acknowledged
and confirmed, is intended to and does constitute a binding agreement. 

Sincerely,

PLACER DOME U.S. INC.

 

By: ___________________________________________

Name: _________________________________________

Title:__________________________________________

Accepted and agreed to this _____ day of September, 2005 by

Miranda Gold Corp.

 

By: ___________________________________________

Name: _________________________________________

Title:__________________________________________

Accepted and agreed to this _____ day of September, 2005 by

Miranda U.S.A., Inc.

 

By: ___________________________________________

Name: _________________________________________

Title:__________________________________________

Exhibit A

The Fuse East Project

          The
following unpatented mining claims located in Sections 1, 2, 3, 4, 9, 10, 11,
12, 15, 16, and 17 Township 26 North, Range 50East, and Sections 26, 27, 33, 34,
35, and 36, Township 27 North, Range 50 East, and Sections 23, 24, 25, 26, 35
and 36, Township 27 North, Range 51 East, Eureka County, Nevada:

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 1 	Book 403 Page 303 	NMC 889518 
	Fuse 2 	Book 403 Page 304 	NMC 889519 
	Fuse 3 	Book 403 Page 305 	NMC 889520 
	Fuse 4 	Book 403 Page 306 	NMC 889521 
	Fuse 5 	Book 403 Page 307 	NMC 889522 
	Fuse 6 	Book 403 Page 308 	NMC 889523 
	Fuse 7 	Book 403 Page 309 	NMC 889524 
	Fuse 8 	Book 403 Page 310 	NMC 889525 
	Fuse 9 	Book 403 Page 311 	NMC 889526 
	Fuse 10 	Book 403 Page 312 	NMC 889527 
	Fuse 11 	Book 403 Page 313 	NMC 889528 
	Fuse 12 	Book 403 Page 314 	NMC 889529 
	Fuse 13 	Book 403 Page 315 	NMC 889530 
	Fuse 14 	Book 403 Page 316 	NMC 889531 
	Fuse 15 	Book 403 Page 317 	NMC 889532 
	Fuse 16 	Book 403 Page 318 	NMC 889533 
	Fuse 17 	Book 403 Page 319 	NMC 889534 
	Fuse 18 	Book 403 Page 320 	NMC 889535 
	Fuse 19 	Book 403 Page 321 	NMC 889536 
	Fuse 20 	Book 403 Page 322 	NMC 889537 
	Fuse 21 	Book 403 Page 323 	NMC 889538 
	Fuse 22 	Book 403 Page 324 	NMC 889539 
	Fuse 23 	Book 403 Page 325 	NMC 889540 
	Fuse 24 	Book 403 Page 326 	NMC 889541 
	Fuse 25 	Book 403 Page 327 	NMC 889542 
	Fuse 26 	Book 403 Page 328 	NMC 889543 
	Fuse 27 	Book 403 Page 329 	NMC 889544 
	Fuse 28 	Book 403 Page 330 	NMC 889545 
	Fuse 29 	Book 403 Page 331 	NMC 889546 
	Fuse 30 	Book 403 Page 332 	NMC 889547 

Exh. A-1

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 31 	Book 403 Page 333 	NMC 889548 
	Fuse 32 	Book 403 Page 334 	NMC 889549 
	Fuse 33 	Book 403 Page 335 	NMC 889550 
	Fuse 34 	Book 403 Page 336 	NMC 889551 
	Fuse 35 	Book 403 Page 337 	NMC 889552 
	Fuse 36 	Book 403 Page 338 	NMC 889553 
	Fuse 37 	Book 403 Page 339 	NMC 889554 
	Fuse 38 	Book 403 Page 340 	NMC 889555 
	Fuse 39 	Book 403 Page 341 	NMC 889556 
	Fuse 40 	Book 403 Page 342 	NMC 889557 
	Fuse 41 	Book 403 Page 343 	NMC 889558 
	Fuse 42 	Book 403 Page 344 	NMC 889559 
	Fuse 43 	Book 403 Page 345 	NMC 889560 
	Fuse 44 	Book 403 Page 346 	NMC 889561 
	Fuse 45 	Book 403 Page 347 	NMC 889562 
	Fuse 46 	Book 403 Page 348 	NMC 889563 
	Fuse 47 	Book 403 Page 349 	NMC 889564 
	Fuse 48 	Book 403 Page 350 	NMC 889565 
	Fuse 49 	Book 403 Page 351 	NMC 889566 
	Fuse 50 	Book 403 Page 352 	NMC 889567 
	Fuse 51 	Book 403 Page 353 	NMC 889568 
	Fuse 52 	Book 403 Page 354 	NMC 889569 
	Fuse 53 	Book 403 Page 355 	NMC 889570 
	Fuse 54 	Book 403 Page 356 	NMC 889571 
	Fuse 55 	Book 403 Page 357 	NMC 889572 
	Fuse 56 	Book 403 Page 358 	NMC 889573 
	Fuse 57 	Book 403 Page 359 	NMC 889574 
	Fuse 66 	Book 403 Page 368 	NMC 889583 
	Fuse 68 	Book 403 Page 370 	NMC 889585 
	Fuse 70 	Book 403 Page 372 	NMC 889587 
	Fuse 71 	Book 403 Page 373 	NMC 889588 
	Fuse 72 	Book 403 Page 374 	NMC 889589 
	Fuse 73 	Book 403 Page 375 	NMC 889590 
	Fuse 83 	Book 403 Page 385 	NMC 889600 
	Fuse 84 	Book 403 Page 386 	NMC 889601 
	Fuse 85 	Book 403 Page 387 	NMC 889602 
	Fuse 86 	Book 403 Page 388 	NMC 889603 
	Fuse 87 	Book 403 Page 389 	NMC 889604 

Exh. A-2

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 88 	Book 403 Page 390 	NMC 889605 
	Fuse 89 	Book 403 Page 391 	NMC 889606 
	Fuse 90 	Book 403 Page 392 	NMC 889607 
	Fuse 91 	Book 403 Page 393 	NMC 889608 
	Fuse 92 	Book 403 Page 394 	NMC 889609 
	Fuse 93 	Book 403 Page 395 	NMC 889610 
	Fuse 94 	Book 403 Page 396 	NMC 889611 
	Fuse 95 	Book 403 Page 397 	NMC 889612 
	Fuse 96 	Book 403 Page 398 	NMC 889613 
	Fuse 97 	Book 403 Page 399 	NMC 889614 
	Fuse 98 	Book 403 Page 400 	NMC 889615 
	Fuse 99 	Book 404 Page 1 	NMC 889616 
	Fuse 100 	Book 404 Page 2 	NMC 889617 
	Fuse 101 	Book 404 Page 3 	NMC 889618 
	Fuse 102 	Book 404 Page 4 	NMC 889619 
	Fuse 103 	Book 404 Page 5 	NMC 889620 
	Fuse 104 	Book 404 Page 6 	NMC 889621 
	Fuse 105 	Book 404 Page 7 	NMC 889622 
	Fuse 106 	Book 404 Page 8 	NMC 889623 
	Fuse 107 	Book 404 Page 9 	NMC 889624 
	Fuse 108 	Book 404 Page 10 	NMC 889625 
	Fuse 109 	Book 404 Page 11 	NMC 889626 
	Fuse 110 	Book 404 Page 12 	NMC 889627 
	Fuse 111 	Book 404 Page 13 	NMC 889628 
	Fuse 112 	Book 404 Page 14 	NMC 889629 
	Fuse 113 	Book 404 Page 15 	NMC 889630 
	Fuse 114 	Book 404 Page 16 	NMC 889631 
	Fuse 115 	Book 404 Page 17 	NMC 889632 
	Fuse 116 	Book 404 Page 18 	NMC 889633 
	Fuse 117 	Book 404 Page 19 	NMC 889634 
	Fuse 118 	Book 404 Page 20 	NMC 889635 
	Fuse 119 	Book 404 Page 21 	NMC 889636 
	Fuse 120 	Book 404 Page 22 	NMC 889637 
	Fuse 121 	Book 404 Page 23 	NMC 889638 
	Fuse 122 	Book 404 Page 24 	NMC 889639 
	Fuse 123 	Book 404 Page 25 	NMC 889640 
	Fuse 124 	Book 404 Page 26 	NMC 889641 
	Fuse 125 	Book 404 Page 27 	NMC 889642 

Exh. A-3

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 126 	Book 404 Page 28 	NMC 889643 
	Fuse 127 	Book 404 Page 29 	NMC 889644 
	Fuse 128 	Book 404 Page 30 	NMC 889645 
	Fuse 129 	Book 404 Page 31 	NMC 889646 
	Fuse 130 	Book 404 Page 32 	NMC 889647 
	Fuse 131 	Book 404 Page 33 	NMC 889648 
	Fuse 132 	Book 404 Page 34 	NMC 889649 
	Fuse 133 	Book 404 Page 35 	NMC 889650 
	Fuse 134 	Book 404 Page 36 	NMC 889651 
	Fuse 135 	Book 404 Page 37 	NMC 889652 
	Fuse 136 	Book 404 Page 38 	NMC 889653 
	Fuse 137 	Book 404 Page 39 	NMC 889654 
	Fuse 138 	Book 404 Page 40 	NMC 889655 
	Fuse 139 	Book 404 Page 41 	NMC 889656 
	Fuse 140 	Book 404 Page 42 	NMC 889657 
	Fuse 141 	Book 404 Page 43 	NMC 889658 
	Fuse 142 	Book 404 Page 44 	NMC 889659 
	Fuse 143 	Book 404 Page 45 	NMC 889660 
	Fuse 144 	Book 404 Page 46 	NMC 889661 
	Fuse 145 	Book 404 Page 47 	NMC 889662 
	Fuse 146 	Book 404 Page 48 	NMC 889663 
	Fuse 147 	Book 404 Page 49 	NMC 889664 
	Fuse 148 	Book 404 Page 50 	NMC 889665 
	Fuse 149 	Book 404 Page 51 	NMC 889666 
	Fuse 150 	Book 404 Page 52 	NMC 889667 
	Fuse 151 	Book 404 Page 53 	NMC 889668 
	Fuse 152 	Book 404 Page 54 	NMC 889669 
	Fuse 153 	Book 404 Page 55 	NMC 889670 
	Fuse 154 	Book 404 Page 56 	NMC 889671 
	Fuse 155 	Book 404 Page 57 	NMC 889672 
	Fuse 156 	Book 404 Page 58 	NMC 889673 
	Fuse 157 	Book 404 Page 59 	NMC 889674 
	Fuse 158 	Book 404 Page 60 	NMC 889675 
	Fuse 159 	Book 404 Page 61 	NMC 889676 
	Fuse 160 	Book 404 Page 62 	NMC 889677 
	Fuse 161 	Book 404 Page 63 	NMC 889678 
	Fuse 162 	Book 404 Page 64 	NMC 889679 
	Fuse 163 	Book 404 Page 65 	NMC 889680 

Exh. A-4

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 164 	Book 404 Page 66 	NMC 889681 
	Fuse 165 	Book 404 Page 67 	NMC 889682 
	Fuse 166 	Book 404 Page 68 	NMC 889683 
	Fuse 167 	Book 404 Page 69 	NMC 889684 
	Fuse 168 	Book 404 Page 70 	NMC 889685 
	Fuse 169 	Book 404 Page 71 	NMC 889686 
	Fuse 170 	Book 404 Page 72 	NMC 889687 
	Fuse 171 	Book 404 Page 73 	NMC 889688 
	Fuse 172 	Book 404 Page 74 	NMC 889689 
	Fuse 173 	Book 404 Page 75 	NMC 889690 
	Fuse 174 	Book 404 Page 76 	NMC 889691 
	Fuse 175 	Book 404 Page 77 	NMC 889692 
	Fuse 176 	Book 404 Page 78 	NMC 889693 
	Fuse 177 	Book 404 Page 79 	NMC 889694 
	Fuse 178 	Book 404 Page 80 	NMC 889695 
	Fuse 179 	Book 404 Page 81 	NMC 889696 
	Fuse 180 	Book 404 Page 82 	NMC 889697 
	Fuse 181 	Book 404 Page 83 	NMC 889698 
	Fuse 182 	Book 404 Page 84 	NMC 889699 
	Fuse 183 	Book 404 Page 85 	NMC 889700 
	Fuse 184 	Book 404 Page 86 	NMC 889701 
	Fuse 185 	Book 404 Page 87 	NMC 889702 
	Fuse 186 	Book 404 Page 88 	NMC 889703 
	Fuse 187 	Book 404 Page 89 	NMC 889704 
	Fuse 188 	Book 404 Page 90 	NMC 889705 
	Fuse 189 	Book 404 Page 91 	NMC 889706 
	Fuse 190 	Book 404 Page 92 	NMC 889707 
	Fuse 191 	Book 404 Page 93 	NMC 889708 
	Fuse 192 	Book 404 Page 94 	NMC 889709 
	Fuse 193 	Book 404 Page 95 	NMC 889710 

Exh. A-5

Exhibit B

          “Exploration,
Development and Related Work” shall mean and include all operations and
activities of PDUS (or performed at the request of PDUS) on or relating to the
Property for purposes of determining ore reserves and mineralization, and for
purposes of exploration for and development of valuable minerals from the
Property including, without limitation, the right to enter upon the Property for
purposes of surveying, exploring, testing, sampling, trenching, bulk sampling,
prospecting and drilling for valuable minerals, and to construct and use
buildings, roads, power and communication lines, and to use so much of the
surface of the Property in such manner as PDUS deems necessary for the enjoyment
of any rights and privileges to PDUS hereunder or otherwise necessary to effect
the purposes of this letter agreement, and any reclamation and other clean-up
required in connection with any of the foregoing.

          “Environmental
Laws” shall mean the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, the Resource Conservation and Recovery Act of 1976, the
Clean Air Act, the Clean Water Act, the Hazardous Materials Transportation Act,
the Toxic Substances Control Act, the Federal Water Pollution Control Act, the
Superfund Amendments and Reauthorization Act of 1986, the Safe Drinking Water
Act, the Endangered Species Act, the National Environmental Policy Act, the Mine
Safety and Health Act of 1977, the Federal Land Policy and Management Act of
1976, and the National Historic Preservation Act, each as amended, and any state
law counterparts, together with all other laws (including rules, regulations,
codes, plans, injunctions, judgments, orders, decrees, rulings, and charges
thereunder) of federal, state and local governments (and all agencies thereof)
concerning pollution or protection of the environment, reclamation, public
health and safety, or employee health and safety, including laws relating to
emissions, discharges, releases, or threatened releases of pollutants,
contaminants, or chemical, industrial, hazardous, or toxic materials or wastes
into ambient air, surface water, ground water, or lands or otherwise relating to
the existence, manufacture, processing, distribution, use, treatment, storage,
disposal, recycling, transport, or handling or reporting or notification to any
governmental authority in the collection, storage, use, treatment or disposal of
pollutants, contaminants, or chemical, industrial, hazardous, or toxic materials
or wastes.

          “Environmental
Liabilities” shall mean any liability arising out of, based on or resulting
from (A) the presence, release, threatened release, discharge or emission into
the environment of any Hazardous Materials or substances existing or arising on,
beneath or above such property and/or emanating or migrating and/or threatening
to emanate or migrate from such property to other properties; (B) disposal or
treatment of or the arrangement for the disposal or treatment of Hazardous
Materials originating or transported from such property to an off-site
treatment, storage or disposal facility, (C) physical disturbance of the
environment on or from such property; or (D) the violation or alleged violation
of any Environmental Laws relating to such property.

Exh. B-1

          “Hazardous
Materials” means any substance: (A) the presence of which requires
reporting, investigation, removal or remediation under any Environmental Law;
(B) that is defined as a “hazardous waste,” “hazardous substance,” “extremely
hazardous substance” or “pollutant” or “contaminant” under any Environmental
Law; (C) that is toxic, explosive, corrosive, flammable, ignitable, infectious,
radioactive, reactive, carcinogenic, mutagenic or otherwise hazardous and is
regulated under any Environmental Law; (D) the presence of which on a property
causes or threatens to cause a nuisance upon the property or to adjacent
properties or poses or threatens to pose a hazard to the health or safety of
persons on or about the property; (E) that contains gasoline, diesel fuel or
other petroleum hydrocarbons; or (F) that contains PCBs, asbestos or urea
formaldehyde foam insulation; in each case subject to exceptions provided in
applicable Environmental Laws.

Exh. B-2

Exhibit C

          “Work
Expenditures” shall mean and include all costs or fees, expenses,
liabilities and charges paid or incurred by PDUS which are related to
Exploration, Development and Related Work conducted during the Earn-In Period
(specifically excluding the Initial Payment and any Periodic Payments),
including without limitation:

                    (a)      All
costs and expenses incurred in conducting exploration and prospecting activities
on or in connection with the Property, including, without limitation, the
preparation of feasibility studies, the active pursuit of required federal,
state or local authorizations or permits and the performance of required
environmental protection or reclamation obligations, the building, maintenance
and repair of roads, drill site preparation, drilling, tracking, sampling,
trenching, digging test pits, shaft sinking, acquiring, diverting and/or
transporting water necessary for exploration, logging of drill holes and drill
core, completion and evaluation of geological, geophysical, geochemical or other
exploration data and preparation of interpretive reports, and surveying and
laboratory costs and charges (including assays or metallurgical analyses and
tests);

                    (b)      All
expenses incurred in conducting development activities on or in connection with
the Property, the active pursuit of required federal, state or local
authorization or permits and the performance of required environmental
protection or reclamation obligations, pre-stripping and stripping, the
construction and installation of a mill, leach pads or other beneficiation
facilities for valuable minerals, and other activities, operations or work
performed in preparation for the removal of valuable minerals from the
Property;

                    (c)      All
costs incurred by PDUS in acquiring interests in real property wholly or
partially within the current exterior boundaries of the Claims (the “Area of
Interest”), including costs and expenses incurred by PDUS in conducting
negotiations and due diligence, attorneys’ fees, and all moneys paid by PDUS in
acquiring and holding such property interests;

                    (d)      All
costs incurred in performing any reclamation or other restoration or clean-up
work required by any federal, state or local agency or authority, and all costs
of insurance obtained or in force to cover activities undertaken by or on PDUS’s
behalf on the Property;

                    (e)     
Salaries, wages, expenses and benefits of PDUS’s employees or consultants
engaged in operations directly relating to the Property, including salaries and
fringe benefits of those who are temporarily assigned to and directly employed
on work relating to the Property for the periods of time such employees are
engaged in such activities and reasonable transportation expenses for all such
employees to and from their regular place of work to the Property;

                    (f)      All
costs incurred in connection with the preparation of pre-feasibility studies or
a Feasibility Study and economic and technical analyses pertaining 

Exh. C-1

to the Property, whether carried out by PDUS or by third
parties under contract with PDUS;

                    (g)      Taxes
and assessments, other than income taxes, assessed or levied upon or against the
Property or any improvements thereon situated thereon for which PDUS is
responsible or for which PDUS reimburses MUI;

                    (h)      Costs
of material, equipment and supplies acquired, leased or hired, for use in
conducting exploration or development operations relating to the Property;
provided, however, that equipment owned and supplied by PDUS shall be chargeable
at rates no greater than comparable market rental rates available in the area of
the Property;

                    (i)     
Costs and expenses of establishing and maintaining field offices, camps and
housing facilities;

                    (j)      Costs
incurred by PDUS in examining and curing title to any part of the Property or
any interest in real property within the Area of Interest, in maintaining the
Property or any interest in real property within the Area of Interest, whether
through the performance of assessment work, the payment of claim maintenance
fees or otherwise (including the Reimbursement Payment), in satisfying surface
use or damage obligations to landowners, or in conducting any analyses of the
environmental conditions at the Property; and

                    (k)      An
additional 10% as overhead on all costs and expenses described in (a) through
(j) above (except for (i) equipment owned and supplied by PDUS, and (ii)
expenditures related to mine development and construction, for which a 3%
overhead charge will apply).

Exh. C-2

Exhibit D

U.S. TAX MATTERS

Article I
 Effect of this Exhibit

          This
Exhibit shall govern the relationship of the parties with respect to U.S. tax
matters and the other matters addressed herein. Except as otherwise indicated,
capitalized terms used in this Exhibit shall have the meanings given to them in
the letter agreement among Miranda Gold Corp., Miranda U.S.A., Inc. and Placer
Dome U.S. Inc. (the “Agreement”) to which this Exhibit is attached. In the event
of a conflict between this Exhibit and the other provisions of the Agreement,
the terms of this Exhibit shall control. 

Article II 
Tax Matters Partner

          2.1      Designation
of Tax Matters Partner. PDUS is hereby designated tax matters partner
(hereinafter “TMP”) as defined in Section 6231(a)(7) of the Internal Revenue
Code of 1986, as amended (“the Code”), and shall be responsible for, make
elections for, and prepare and file any federal and state tax returns or other
required tax forms. The TMP and MUI shall use reasonable best efforts to comply
with the responsibilities outlined in this Article II and in Sections 6221
through 6233 of the Code (including any Treasury regulations promulgated
thereunder) and in doing so shall incur no liability to any other party.

          2.2     
Notice. MUI shall furnish the TMP with such information (including
information specified in Section 6230(e) of the Code) as the TMP may reasonably
request to permit it to provide the Internal Revenue Service with sufficient
information to allow proper notice to the parties in accordance with Section
6223 of the Code. The TMP shall keep MUI informed of all administrative and
judicial proceedings for the adjustment at the partnership level of partnership
items in accordance with Section 6223(g) of the Code.

          2.3      Inconsistent
Treatment of Partnership Item. If an administrative proceeding contemplated
under Section 6223 of the Code has begun, and the TMP so requests, each of PDUS
and MUI shall notify the TMP of its treatment of any partnership item on its
federal income tax return that is inconsistent with the treatment of that item
on the partnership return.

          2.4     
Extensions of Limitation Periods. The TMP shall not enter into any
extension of the period of limitations as provided under Section 6229 of the
Code without first giving reasonable advance notice to MUI of such intended
action.

          2.5     
Requests for Administrative Adjustments. Neither PDUS nor MUI shall file,
pursuant to Section 6227 of the Code, a request for an administrative adjustment
of partnership items for any partnership taxable year without first notifying
the other party. If the other party agrees with the requested adjustment, the
TMP shall file the request for 

Exh. D-1

administrative adjustment on behalf of the partnership. If
unanimous consent is not obtained within 30 days after notice from the proposing
party, or within the period required to timely file the request for
administrative adjustment, if shorter, either party, including the TMP, may file
that request for administrative adjustment on its own behalf. 

          2.6     
Judicial Proceedings. Any party intending to file a petition under
Section 6226, 6228 or other sections of the Code with respect to any partnership
item, or other tax matters involving the partnership, shall notify the other
party of such intention and the nature of the contemplated proceeding. If the
TMP is the party intending to file such petition, such notice shall be given
within a reasonable time to allow the other party to participate in the choosing
of the forum in which such petition will be filed. If the parties do not agree
on the appropriate forum, then the appropriate forum shall be decided by PDUS.
If either party intends to seek review of any court decision rendered as a
result of a proceeding instituted under the preceding part of this Section 2.6,
that party shall notify the other party of such intended action.

          2.7     
Settlements. The TMP shall not bind the other party to a settlement
agreement without first obtaining the written concurrence of that party. Any
party who enters into a settlement agreement with respect to any partnership
items, as defined by Section 6231(a)(3) of the Code, shall notify the other
party of such settlement agreement and its terms within 90 days after the date
of settlement. 

          2.8     
Fees and Expenses. Either party may engage legal counsel, certified
public accountants, or others in its own behalf and at its sole cost and
expense.

          2.9     
Survival. The provisions of this Article II shall survive the termination
of the partnership or the termination of either party’s interest in the
partnership and shall remain binding on the parties for a period of time
necessary to resolve with the Internal Revenue Service or the Department of the
Treasury any and all matters regarding the federal income taxation of the
partnership for the applicable tax year(s). 

Article III
Tax Elections and Allocations

          3.1      Tax
Partnership Election. It is understood and agreed that the parties intend to
create a partnership for United States federal and state income tax purposes,
and, unless otherwise agreed to hereafter by the parties, no party shall make an
election to be, or have the arrangement evidenced hereby, excluded from the
application of any provisions of Subchapter K of the Code, or any equivalent
state income tax provision. It is understood and agreed that the parties intend
to create a partnership for federal and state income tax purposes only (a “tax
partnership”) and agree that, if necessary, an election to be so treated shall
be filed pursuant to Treasury Regulation Section 301.7701 -3. The TMP shall file
with the appropriate office of the Internal Revenue Service a partnership income
tax return covering operations on the Property. The parties recognize that this
Agreement may be subject to state income tax statutes. The TMP shall file with
the appropriate offices of the state agencies any required partnership state
income tax returns. Not later than March 15th of each calendar year, MUI agrees
to furnish to the TMP any information it may 

Exh. D-2

have relating to operations on the Property during the previous
calendar year as shall be required for proper preparation of such returns. The
TMP shall furnish to MUI for its review a copy of each proposed income tax
return at least two weeks prior to the date the return is filed.

          3.2      Tax
Elections. The tax partnership shall make the following elections for
purposes of all partnership income tax returns: 

                    (a)      To
use the accrual method of accounting;

                    (b)      Pursuant
to the provisions at Section 706(b)(1) of the Code, to use as its taxable year,
unless otherwise required by law, a year ending December 31st. In this respect
the parties represent that their taxable years are as follows:

	MUI: 	August 31; 
	 	 
	PDUS: 	December 31; 

                    (c)      To
deduct currently all development expenses to the extent possible under Section
616 of the Code, or, at the election of the TMP, to elect under Section 616(b)
of the Code to treat such expenses as deferred expenses; 

                    (d)      Unless
the parties unanimously agree otherwise, to compute the allowance for
depreciation in respect of all depreciable assets using the maximum accelerated
tax depreciation table and the shortest life permissible, or, at the election of
the TMP, using the units of production method of depreciation; 

                    (e)     
To treat advance royalties as deductions from gross income for the year paid or
accrued to the extent permitted by law;

                    (f)      To
adjust the basis of tax partnership property under Section 754 of the Code at
the request of either party (provided that all costs and consequences of such
election shall be for the account of the party making the request);

                    (g)      To
amortize over the shortest permissible period all organizational expenditures
and business start-up expenses under Sections 195 and 709 of the Code;

          Any
other election required or permitted under the Code or any state tax law shall
be made as determined by the TMP.

          Each
party shall elect (or has previously elected) under Section 617(a) of the Code
to deduct currently all exploration expenses.

          Each
party reserves the right to capitalize its share of development and/or
exploration expenses of the tax partnership in accordance with Section 59(e) of
the Code, provided that a party’s election to capitalize all or any portion of
such expenses shall not affect the party’s Capital Account.

Exh. D-3

          3.3      Allocations
to Parties. Allocations for Capital Account purposes shall be in accordance
with the following: 

                    (a)      Exploration
and development cost deductions shall be allocated between the parties in
accordance with their respective contributions to such costs.

                    (b)      Depreciation
and loss deductions with respect to any depreciable asset shall be allocated
between the parties in accordance with their respective contributions to the
adjusted basis of the asset which gives rise to the depreciation or loss
deduction.

                    (c)      Production
and operating cost deductions, if any, shall be allocated between the parties in
accordance with their respective contributions to such costs.

                    (d)      Deductions
for depletion (to the extent of the amount of such deductions that would have
been determined for Capital Account purposes if only cost depletion were
allowable for federal income tax purposes) shall be allocated to the parties in
accordance with their respective contributions to the adjusted basis of the
depletable property. Any remaining depletion deductions shall be allocated to
the parties so that, to the extent possible, the parties receive the same total
amounts of percentage depletion as they would have received if percentage
depletion were allocated to the parties in proportion to their respective shares
of the gross income used as the basis for calculating the federal income tax
deduction for percentage depletion.

                    (e)      Subject
to Section 3.3(g) below, gross income, if any, on the sale of production shall
be allocated in accordance with the parties’ rights to share in the proceeds of
such sale.

                    (f)      Except
as provided in Section 3.3(g) below, gain or loss on the sale of a depreciable
or depletable asset shall be allocated so that, to the extent possible, the net
amount reflected in the parties’ Capital Accounts with respect to such property
(taking into account the cost of such property, depreciation, amortization,
depletion or other cost recovery deductions and gain or loss) most closely
reflects the parties’ interest in the Property as set forth in the Agreement
(determined without regard to this Exhibit).

                    (g)     
Gains and losses on the sale of all or substantially all the assets of the tax
partnership shall be allocated so that, to the extent possible, the parties’
resulting Capital Account balances are in the same ratio as their interests in
the Property as set forth in the Agreement (determined without regard to this
Exhibit) at the time of such sale.

                    (h)      All
deductions and losses that are not otherwise allocated in this Section 3.3 shall
be allocated among the parties in accordance with their respective contributions
to the costs producing each such deduction or to the adjusted basis of the asset
producing each such loss.

                    (i)      Any
recapture of exploration expenses under Section 617(b)(1)(A) of the Code, and
any disallowance of depletion under Section 617(b)(1)(B) of the Code, shall 

Exh. D-4

be borne by the parties in the same manner as the related
exploration expenses were allocated to, or claimed by, them.

                    (j)     
“Nonrecourse deductions,” as defined by Treasury Regulation Section 1.704
-2(b)(1) shall be allocated between the parties in proportion to their interests
in the Property as set forth in the Agreement (determined without regard to this
Exhibit) except as otherwise required by Treasury Regulation Section 1.704
-2.

                    (k)     
All other items of income and gain, if any, shall be allocated to the parties in
accordance with their interests in the Property as set forth in the Agreement
(determined without regard to this Exhibit).

                    (l)     
If the parties’ interests in the tax partnership change during any taxable year
of the tax partnership, the distributive share of items of income, gain, loss
and deduction of each party shall be determined in any manner (1) permitted by
Section 706 of the Code, and (2) agreed on by both parties. If the parties
cannot agree on a method, the method shall be determined by the TMP in
consultation with its tax advisers, with preference given to the interim closing
of the books method except where application of that method would result in
undue administrative expense in relationship to the amount of the items to be
allocated.

          3.4     
Regulatory Allocations. Notwithstanding the provisions of Section 3.3 to
the contrary, the following special allocations shall be given effect for
purposes of maintaining the parties’ Capital Accounts.

                    (a)     
If either party unexpectedly receives any adjustments, allocations, or
distributions described in Treasury Regulation Sections 1.704
-1(b)(2)(ii)(d)(4), 1.704 -1(b)(2)(ii)(d)(5) or 1.704 -1(b)(2)(ii)(d)(6), which
result in a deficit Capital Account balance, items of income and gain shall be
specially allocated to each such party in an amount and manner sufficient to
eliminate, to the extent required by the Treasury Regulations, the Capital
Account deficit of such party as quickly as possible. For the purposes of this
Section 3.4(a), each party’s Capital Account balance shall be increased by the
sum of (i) the amount that party is obligated to restore pursuant to any
provision of the Agreement, and (ii) the amount that party is deemed to be
obligated to restore pursuant to the penultimate sentences of Treasury
Regulation Sections 1.704 -2(g)(1) and 1.704 -2(i)(5).

                    (b)     
The “minimum gain chargeback” and “partner minimum gain chargeback” provisions
of Treasury Regulation Sections 1.704 -2(f) and 1.704 -2(i)(4), respectively,
are incorporated herein by reference and shall be given effect. In accordance
with Treasury Regulation Section 1.704 -2(i)(1), deductions attributable to a
“partner nonrecourse liability” shall be allocated to the party that bears the
economic risk of loss for such liability.

                    (c)     
If the allocation of deductions to either party would cause such party to have a
deficit Capital Account balance at the end of any taxable year of the tax
partnership (after all other allocations provided for in this Article III have
been made and after giving 

Exh. D-5

effect to the adjustments described in subparagraph (a) of
Section 3.4), such deductions shall instead be allocated to the other party.

          3.5      Curative
Allocations. The allocations set forth in Section 3.4 (the “Regulatory
Allocations”) are intended to comply with certain requirements of the Treasury
Regulations. It is the intent of the parties that, to the extent possible, all
Regulatory Allocations shall be offset either with other Regulatory Allocations
or with special allocations of other items of income, gain, loss or deduction
pursuant to this Section 3.5. Therefore, notwithstanding any other provisions of
this Article III (other than the Regulatory Allocations), the TMP shall make
such offsetting special allocations of income, gain, loss or deduction in
whatever manner it determines appropriate so that, after such offsetting
allocations are made, each party’s Capital Account balance is, to the extent
possible, equal to the Capital Account balance such party would have had if the
Regulatory Allocations were not part of this Agreement and all items were
allocated pursuant to Section 3.3 without regard to Section 3.4.

          3.6      Tax
Allocations. Except as otherwise provided in this Section 3.6, items of
taxable income, credit, deduction, gain and loss shall be allocated in the same
manner as the corresponding item is allocated for book purposes under Sections
3.3, 3.4 and 3.5 of the corresponding item determined for Capital Account
purposes.

                    (a)      Recapture
of tax deductions arising out of a disposition of property shall, to the extent
consistent with the allocations for tax purposes of the gain or amount realized
giving rise to such recapture, be allocated to the parties in the same
proportions as the recaptured deductions were originally allocated or
claimed.

                    (b)      To
the extent required by Section 704(c) of the Code, income, gain, loss, and
deduction with respect to property contributed to the tax partnership by a party
shall be shared among both parties so as to take account of the variation
between the basis of the property to the tax partnership and its fair market
value at the time of contribution. The parties intend that Section 704(c) shall
effect no allocations of tax items that are different from the allocations under
Sections 3.3, 3.4 and 3.5 of the corresponding items for Capital Account
purposes; provided that gain or loss on the sale of property contributed to the
tax partnership shall be allocated to the contributing party to the extent of
built-in gain or loss, respectively, as determined under Treasury Regulation
Section 1.704 -3(a). However, to the extent that allocations of tax items other
than built-in gain and built-in loss are required pursuant to Section 704(c) of
the Code to be made other than in accordance with the allocations under Sections
3.3, 3.4 and 3.5 of the corresponding items for Capital Account purposes,
Section 704(c) shall be applied in accordance with the available allocation
method that most closely approximates the intended allocation of tax items under
this tax partnership agreement.

                    (c)      The
parties understand the allocations of tax items set forth in this Section 3.6,
and agree to report consistently with such allocations for federal and state tax
purposes.

Exh. D-6

Article IV
Capital Accounts; Liquidation

          4.1      Capital
Accounts. 

                    (a)      A
separate capital account shall be established and maintained by the TMP for each
party (a “Capital Account”). Such Capital Account shall be increased by (i) the
amount of money contributed by the party to the tax partnership, (ii) the fair
market value of property contributed by the party to the tax partnership (net of
liabilities securing such contributed property that the tax partnership is
considered to assume or take subject to under Code Section 752) and (iii)
allocations to the party under Sections 3.3, 3.4 and 3.5 of expenditures of the
tax partnership income and gain (or items thereof), including income and gain
exempt from tax; and shall be decreased by (iv) the amount of money distributed
to the party by the tax partnership, (v) the fair market value of property
distributed to the party by the tax partnership (net of liabilities securing
such distributed property and that the party is considered to assume or take
subject to under Code Section 752), (vi) allocations to the party under Sections
3.3, 3.4 and 3.5 of expenditures of the tax partnership not deductible in
computing its taxable income and not properly chargeable to a Capital Account,
and (vii) allocations of tax partnership loss and deduction (or items thereof),
excluding items described in (vi) above and percentage depletion to the extent
it exceeds the adjusted tax basis of the depletable property to which it is
attributable. The parties agree that the net fair market value of the Property
contributed to the tax partnership by MUI is U.S. $1,185,000.

                    (b)     
In the event that the Capital Accounts of the parties are computed with
reference to the book value (as reasonably determined by the TMP) of any asset
which differs from the adjusted tax basis of such asset, then the Capital
Accounts shall be adjusted for depreciation, depletion, amortization and gain or
loss as computed for book purposes with respect to such asset in accordance with
Treasury Regulation Section 1.704 -1(b)(2)(iv)(g).

                    (c)      In
the event any interest in the tax partnership (including any Participating
Interest if the parties enter into the Joint Venture Agreement) is transferred
in accordance with the terms of the Agreement, the transferee shall succeed to
the Capital Account of the transferor to the extent it relates to the
transferred interest, except as provided in Treasury Regulation Section 1.704
-1(b)(2)(iv)(1).

                    (d)      In
the event property, other than money, is distributed to a party, the Capital
Accounts of the parties shall be adjusted to reflect the manner in which the
unrealized income, gain, loss and deduction in herein in such property (that has
not been reflected in the Capital Accounts previously) would be allocated among
the parties if there was a taxable disposition of such property for the fair
market value of such property (taking Section 7701(g) of the Code into account)
on the date of distribution. For this purpose the fair market value of the
property shall be determined as set forth in Section 4.2(a) below.

                    (e)      For
purposes of maintaining the Capital Accounts, the tax partnership’s deductions
with respect to contributed property in each year for (i) depletion, 

Exh. D-7

(ii) deferred development expenditures under Code Section
616(b) attributable to pre-contribution expenditures, (iii) amortization under
Code Section 291(b) attributable to pre-contribution expenditures, and (iv)
amortization under Code Section 59(e) attributable to pre-contribution
expenditures shall be the amount of the corresponding item determined for tax
purposes pursuant to Section 3.6(c) multiplied by the ratio of (A) the book
value (as reasonably determined by the TMP) at which the contributed property is
recorded in the Capital Accounts to (B) the adjusted tax basis of the
contributed property (including basis resulting from capitalization of
pre-contribution development expenditures under Code Sections 616(b), 291(b),
and 59(e)).

                    (f)     
The foregoing provisions, and the other provisions of the Agreement relating to
the maintenance of Capital Accounts and the allocations of income, gain, loss,
deduction and credit, are intended to comply with Treasury Regulation Section
1.704 -1(b), and shall be interpreted and applied in a manner consistent with
such Regulation. In the event the TMP shall determine that it is prudent to
modify the manner in which the Capital Accounts, or any debits or credits
thereto, are computed in order to comply with such Regulation, the TMP may make
such modification, provided that it is not likely to have a material effect on
the amount distributable to any party upon liquidation of the tax partnership
pursuant to Section 4.2 below.

                    (g)      If
the parties so agree, upon the occurrence of an event described in Treasury
Regulation Section 1.704 -1(b)(2)(iv)(f)(5), the Capital Accounts shall be
restated in accordance with Treasury Regulation Section 1.704 -1(b)(2)(iv)(f) to
reflect the manner in which unrealized income, gain, loss or deduction in herein
the assets of the tax partnership (that has not been reflected in the Capital
Accounts previously) would be allocated among the parties if there were a
taxable disposition of such assets for their fair market values, as determined
in accordance with Section 4.2(a) . For purposes of Section 3.3, a party shall
be treated as contributing the portion of the book value of any property that is
credited to the party’s Capital Account pursuant to the preceding sentence.
Following a revaluation pursuant to this subparagraph (g) of Section 4.1, the
parties’ shares of depreciation, depletion, amortization and gain or loss, as
computed for tax purposes, with respect to property that has been revalued
pursuant to this subparagraph (g) of Section 4.1 shall be determined in
accordance with the principles of Code Section 704(c) as applied pursuant to the
final sentence of Section 3.6(b) .

          4.2     
Liquidation. In the event the partnership is “liquidated” within the
meaning of Treasury Regulation Section 1.704 -1(b)(2)(ii)(g) then,
notwithstanding any other provision of the Agreement to the contrary, the
following steps shall be taken:

                    (a)     
The Capital Accounts of the parties shall be adjusted to reflect any gain or
loss which would be realized by the tax partnership and allocated to the parties
pursuant to the provisions of Article III of this Exhibit D if the assets had
been sold at their fair market value at the time of liquidation. The fair market
value of the assets shall be determined by the parties; provided, however, that
in the event that the parties fail to agree on the fair market value of any
asset, its fair market value shall be determined by a nationally recognized
independent engineering firm or other qualified independent party approved by
both parties.

Exh. D-8

                    (b)      After
making the foregoing adjustments and/or contributions, all remaining assets
shall be distributed to the parties in accordance with the balances in their
Capital Accounts (after taking into account all allocations of Article III,
including without limitation subparagraph (h) of Section 3.3) . Unless otherwise
expressly agreed by both parties, each party shall receive an undivided interest
in each and every asset determined by the ratio of the amount in each party’s
Capital Account to the total of both of the parties’ Capital Accounts. Assets
distributed to the parties shall be deemed to have a fair market value equal to
the value assigned to them pursuant to Section 4.2(a) above.

                    (c)      All
distributions to the parties in respect of their Capital Accounts shall be made
in accordance with the time requirements of Treasury Regulation Sections 1.704
-1(b)(2)(ii)(b)(2) and (3).

          4.3     
Deemed Terminations. Notwithstanding the provisions of Section 4.2, if
the “liquidation” of the tax partnership results from a deemed termination under
Section 708(b)(1)(B) of the Code, then (i) subparagraphs (a) and (b) of Section
4.2 shall not apply, (ii) the tax partnership shall be deemed to have
contributed its assets to a new tax partnership and then to have distributed
interests in the new tax partnership to the parties, (iii) the parties shall be
deemed to have received interests in the new tax partnership equivalent to the
interests held by them in the tax partnership deemed terminated, and (iv) the
new tax partnership shall continue pursuant to the terms of the Agreement and
this Exhibit.

          4.4     
Continuation. The parties agree that their tax partnership will survive
the termination of the Agreement and continue until terminated pursuant to the
provisions of Section 4.2 or 4.3, unless PDUS exercises its Acquisition Right
and the parties enter into the Joint Venture Agreement, in which case the
provisions of Exhibit C to the Joint Venture Agreement shall apply.

          4.5      Assignment.
The provisions of this Exhibit D shall be binding upon and inure to the benefit
of the Parties and their respective successors and assigns. The provisions of
this Exhibit D shall be deemed to be a covenant running with the land and shall
be binding upon any third party who acquires any interest in the Agreement or
the Property.

Exh. D-9

Exhibit E

SHORT FORM OF EXPLORATION AND 
DEVELOPMENT
AGREEMENT

          THIS
SHORT FORM OF EXPLORATION AND DEVELOPMENT AGREEMENT (the “Short Form”) is made
and entered into effective as of September __, 2005 by and among MIRANDA GOLD
CORP., a British Columbia corporation, whose address is Suite 1410 West Pender
Street, Vancouver, British Columbia, Canada V6C 2V6, (“Miranda”), MIRANDA
U.S.A., INC., a Nevada corporation, whose address is 5900 Philoree Lane, Reno,
Nevada 89511 (“MUI”), and Placer Dome U.S. Inc., a California corporation, whose
address for purposes hereof is 1125 17th Street, Suite 2310, Denver, Colorado
U.S.A. 80202 (“PDUS”).

RECITALS

          A.      MUI
is the owner of certain unpatented mining claims in Eureka County, Nevada, as
more particularly described in Exhibit A attached hereto and incorporated by
reference (the “Claims”). The Claims, together with all water and water rights,
easements and rights-of-way, and other appurtenances attached thereto or
associated therewith, are collectively referred to hereinafter as the
“Property.”

          B.      Miranda,
MUI and PDUS entered into a letter agreement dated effective September __, 2005
(the “Agreement”), wherein MUI granted to PDUS the right to explore and develop
the Property and, if PDUS so desires, the right for PDUS to acquire an undivided
60% interest in the Property and to enter into a joint venture agreement
covering the Property.

Exh. E-1

          C.      Miranda,
MUI and PDUS desire to enter into this Short Form of Agreement for purposes of
placing of record a notice of the Agreement.

AGREEMENT

          NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

          1.      Grant
of Exploration, Development and Related Rights. MUI has granted and hereby
grants to PDUS, for the term of the Agreement, exclusive possession of the
Property and the exclusive right to enter upon and use all or any part of the
Property during the Earn-In Period (as defined in the Agreement) for the
purposes of determining ore reserves and mineralization, and for purposes of
development of valuable minerals from the Property, including the right to enter
upon the Property for purposes of surveying, exploring, testing, sampling,
trenching, bulk sampling, prospecting and drilling for valuable minerals, and to
use and construct buildings, roads, power and communication lines, and to use so
much of the surface of the Property in such manner as is necessary to the
enjoyment of any of the rights or privileges of PDUS hereunder or otherwise
reasonably necessary to effect the purposes of the Agreement.

          2.      Grant
of Right to Acquire an Interest in the Property. MUI has granted and hereby
grants to PDUS, during the Earn-In Period, the exclusive right to acquire an
undivided 60% interest in the Property upon the completion of certain
obligations set forth in the Agreement.

          3.      Grant
of Right to Enter into Joint Venture Agreement. In addition to the rights
granted in the Agreement as described in paragraph 2 above, MUI and PDUS have
agreed and do hereby agree that, subject to the terms and conditions set forth
in the Agreement, upon PDUS’s acquisition of an undivided 60% interest in the
Property they will enter into a Joint Venture Agreement (as described in the
Agreement) governing operations at the Property.

          4.      Term.
Unless sooner terminated as provided in the Agreement, the term of the Agreement
(the “Earn-In Period”) shall run until such time as PDUS timely incurs required
minimum amounts of Work Expenditures (as defined in the Agreement) and the
parties execute the Joint Venture Agreement, or until sooner terminated as set
forth in the Agreement, but in any event not later than September __, 2016.

          5.      Title
to After-Acquired and Additional Interests. The Agreement applies and
extends to any further or additional right, title, interest or estate heretofore
or hereafter acquired by MUI or PDUS during the Earn-In Period in or to (i) the
Property or any part thereof, or (ii) any lands or mineral interests (other than
royalty interests) wholly or partially within the exterior boundaries of the
Claims.

          6.     
Successors and Assigns. Subject to the provisions of paragraph 7 below,
all of the terms, provisions and conditions of the Agreement and this Short Form
are, and 

Exh. E-2

shall be, binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

          7.      Assignability.
None of the parties shall have the right to assign its interest in the
Agreement, other than (i) to an affiliate or a subsidiary, (ii) in connection
with a pledge of assets for financing purposes, (iii) in connection with a
corporate merger or reorganization or a sale of all or substantially all of
either party’s assets, or (iv) as otherwise allowed under the Agreement, without
the prior written consent of the non-assigning parties, which consent shall not
be unreasonably withheld. Any third party to whom any interest in the Agreement
or the Property is assigned or conveyed shall agree in writing to be bound by
all of the terms and conditions contained in the Agreement, including without
limitation the tax partnership applicable thereto.

          8.      Additional
Terms. The Agreement contains additional clauses and various other
provisions, and reference is made to the Agreement for such other terms and
conditions as govern the Agreement, which terms and conditions are by reference
made a part hereof. Nothing in this Short Form shall limit or affect the rights
and duties of the parties under the Agreement. Requests for information
regarding the Agreement should be made to the parties at the addresses set forth
above.

          9.      Counterparts.
This Short Form may be extended in multiple counterparts, and all such
counterparts taken together shall be deemed to constitute a single document.

          IN
WITNESS WHEREOF, the parties have executed this Short Form of Agreement
effective as of September __, 2005.

MIRANDA GOLD CORP., 
a British
Columbia corporation

By:     
______________________________

Name:______________________________

Its:     
______________________________

Exh. E-3

MIRANDA U.S.A., INC., 
a Nevada
corporation

By:     
______________________________

 Name:______________________________

 Its:     
______________________________

PLACER DOME U.S. INC., 
a
California corporation

By:     
______________________________

Name:______________________________

Its:      ______________________________

 

Exh. E-4

	STATE OF _____________________________	) 
	  	) ss. 
	COUNTY OF ___________________________	) 

     The foregoing instrument was acknowledged
  before me this _____ day of September, 2005, by ____________________ , as ____________________
  of Miranda Gold Corp., a British Columbia corporation.

     Witness my hand and official seal.

	     My commission expires: _______	_____________________________
	 	Notary Public 

	STATE OF _____________________________	) 
	  	) ss. 
	COUNTY OF ___________________________	) 

     The foregoing instrument was acknowledged
  before me this _____ day of September, 2005, by ____________________ , as 

  ____________________of Miranda U.S.A., Inc., a Nevada corporation.

     Witness my hand and official seal.

	     My commission expires: _______	_____________________________
	 	Notary Public 

	STATE OF _____________________________	) 
	  	) ss. 
	COUNTY OF ___________________________	) 

     The foregoing instrument was acknowledged
  before me this _____ day of September, 2005, by ____________________ , as _____________________
  of Placer Dome U.S. Inc., a California corporation.

     Witness my hand and official seal.

	     My commission expires: _______	_____________________________
	 	Notary Public 

Exh. E-5

Exhibit A

The Fuse East Project

          The
following unpatented mining claims located in Sections 1, 2, 3, 4, 9, 10, 11,
12, 15, 16, and 17 Township 26 North, Range 50East, and Sections 26, 27, 33, 34,
35, and 36, Township 27 North, Range 50 East, and Sections 23, 24, 25, 26, 35
and 36, Township 27 North, Range 51 East, Eureka County, Nevada:

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 1 	Book 403 Page 303 	NMC 889518 
	Fuse 2 	Book 403 Page 304 	NMC 889519 
	Fuse 3 	Book 403 Page 305 	NMC 889520 
	Fuse 4 	Book 403 Page 306 	NMC 889521 
	Fuse 5 	Book 403 Page 307 	NMC 889522 
	Fuse 6 	Book 403 Page 308 	NMC 889523 
	Fuse 7 	Book 403 Page 309 	NMC 889524 
	Fuse 8 	Book 403 Page 310 	NMC 889525 
	Fuse 9 	Book 403 Page 311 	NMC 889526 
	Fuse 10 	Book 403 Page 312 	NMC 889527 
	Fuse 11 	Book 403 Page 313 	NMC 889528 
	Fuse 12 	Book 403 Page 314 	NMC 889529 
	Fuse 13 	Book 403 Page 315 	NMC 889530 
	Fuse 14 	Book 403 Page 316 	NMC 889531 
	Fuse 15 	Book 403 Page 317 	NMC 889532 
	Fuse 16 	Book 403 Page 318 	NMC 889533 
	Fuse 17 	Book 403 Page 319 	NMC 889534 
	Fuse 18 	Book 403 Page 320 	NMC 889535 
	Fuse 19 	Book 403 Page 321 	NMC 889536 
	Fuse 20 	Book 403 Page 322 	NMC 889537 
	Fuse 21 	Book 403 Page 323 	NMC 889538 
	Fuse 22 	Book 403 Page 324 	NMC 889539 
	Fuse 23 	Book 403 Page 325 	NMC 889540 
	Fuse 24 	Book 403 Page 326 	NMC 889541 
	Fuse 25 	Book 403 Page 327 	NMC 889542 
	Fuse 26 	Book 403 Page 328 	NMC 889543 
	Fuse 27 	Book 403 Page 329 	NMC 889544 
	Fuse 28 	Book 403 Page 330 	NMC 889545 
	Fuse 29 	Book 403 Page 331 	NMC 889546 
	Fuse 30 	Book 403 Page 332 	NMC 889547 

Exh. A-1

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 31 	Book 403 Page 333 	NMC 889548 
	Fuse 32 	Book 403 Page 334 	NMC 889549 
	Fuse 33 	Book 403 Page 335 	NMC 889550 
	Fuse 34 	Book 403 Page 336 	NMC 889551 
	Fuse 35 	Book 403 Page 337 	NMC 889552 
	Fuse 36 	Book 403 Page 338 	NMC 889553 
	Fuse 37 	Book 403 Page 339 	NMC 889554 
	Fuse 38 	Book 403 Page 340 	NMC 889555 
	Fuse 39 	Book 403 Page 341 	NMC 889556 
	Fuse 40 	Book 403 Page 342 	NMC 889557 
	Fuse 41 	Book 403 Page 343 	NMC 889558 
	Fuse 42 	Book 403 Page 344 	NMC 889559 
	Fuse 43 	Book 403 Page 345 	NMC 889560 
	Fuse 44 	Book 403 Page 346 	NMC 889561 
	Fuse 45 	Book 403 Page 347 	NMC 889562 
	Fuse 46 	Book 403 Page 348 	NMC 889563 
	Fuse 47 	Book 403 Page 349 	NMC 889564 
	Fuse 48 	Book 403 Page 350 	NMC 889565 
	Fuse 49 	Book 403 Page 351 	NMC 889566 
	Fuse 50 	Book 403 Page 352 	NMC 889567 
	Fuse 51 	Book 403 Page 353 	NMC 889568 
	Fuse 52 	Book 403 Page 354 	NMC 889569 
	Fuse 53 	Book 403 Page 355 	NMC 889570 
	Fuse 54 	Book 403 Page 356 	NMC 889571 
	Fuse 55 	Book 403 Page 357 	NMC 889572 
	Fuse 56 	Book 403 Page 358 	NMC 889573 
	Fuse 57 	Book 403 Page 359 	NMC 889574 
	Fuse 66 	Book 403 Page 368 	NMC 889583 
	Fuse 68 	Book 403 Page 370 	NMC 889585 
	Fuse 70 	Book 403 Page 372 	NMC 889587 
	Fuse 71 	Book 403 Page 373 	NMC 889588 
	Fuse 72 	Book 403 Page 374 	NMC 889589 
	Fuse 73 	Book 403 Page 375 	NMC 889590 
	Fuse 83 	Book 403 Page 385 	NMC 889600 
	Fuse 84 	Book 403 Page 386 	NMC 889601 
	Fuse 85 	Book 403 Page 387 	NMC 889602 
	Fuse 86 	Book 403 Page 388 	NMC 889603 
	Fuse 87 	Book 403 Page 389 	NMC 889604 

Exh. A-2

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 88 	Book 403 Page 390 	NMC 889605 
	Fuse 89 	Book 403 Page 391 	NMC 889606 
	Fuse 90 	Book 403 Page 392 	NMC 889607 
	Fuse 91 	Book 403 Page 393 	NMC 889608 
	Fuse 92 	Book 403 Page 394 	NMC 889609 
	Fuse 93 	Book 403 Page 395 	NMC 889610 
	Fuse 94 	Book 403 Page 396 	NMC 889611 
	Fuse 95 	Book 403 Page 397 	NMC 889612 
	Fuse 96 	Book 403 Page 398 	NMC 889613 
	Fuse 97 	Book 403 Page 399 	NMC 889614 
	Fuse 98 	Book 403 Page 400 	NMC 889615 
	Fuse 99 	Book 404 Page 1 	NMC 889616 
	Fuse 100 	Book 404 Page 2 	NMC 889617 
	Fuse 101 	Book 404 Page 3 	NMC 889618 
	Fuse 102 	Book 404 Page 4 	NMC 889619 
	Fuse 103 	Book 404 Page 5 	NMC 889620 
	Fuse 104 	Book 404 Page 6 	NMC 889621 
	Fuse 105 	Book 404 Page 7 	NMC 889622 
	Fuse 106 	Book 404 Page 8 	NMC 889623 
	Fuse 107 	Book 404 Page 9 	NMC 889624 
	Fuse 108 	Book 404 Page 10 	NMC 889625 
	Fuse 109 	Book 404 Page 11 	NMC 889626 
	Fuse 110 	Book 404 Page 12 	NMC 889627 
	Fuse 111 	Book 404 Page 13 	NMC 889628 
	Fuse 112 	Book 404 Page 14 	NMC 889629 
	Fuse 113 	Book 404 Page 15 	NMC 889630 
	Fuse 114 	Book 404 Page 16 	NMC 889631 
	Fuse 115 	Book 404 Page 17 	NMC 889632 
	Fuse 116 	Book 404 Page 18 	NMC 889633 
	Fuse 117 	Book 404 Page 19 	NMC 889634 
	Fuse 118 	Book 404 Page 20 	NMC 889635 
	Fuse 119 	Book 404 Page 21 	NMC 889636 
	Fuse 120 	Book 404 Page 22 	NMC 889637 
	Fuse 121 	Book 404 Page 23 	NMC 889638 
	Fuse 122 	Book 404 Page 24 	NMC 889639 
	Fuse 123 	Book 404 Page 25 	NMC 889640 
	Fuse 124 	Book 404 Page 26 	NMC 889641 
	Fuse 125 	Book 404 Page 27 	NMC 889642 

Exh. A-3

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 126 	Book 404 Page 28 	NMC 889643 
	Fuse 127 	Book 404 Page 29 	NMC 889644 
	Fuse 128 	Book 404 Page 30 	NMC 889645 
	Fuse 129 	Book 404 Page 31 	NMC 889646 
	Fuse 130 	Book 404 Page 32 	NMC 889647 
	Fuse 131 	Book 404 Page 33 	NMC 889648 
	Fuse 132 	Book 404 Page 34 	NMC 889649 
	Fuse 133 	Book 404 Page 35 	NMC 889650 
	Fuse 134 	Book 404 Page 36 	NMC 889651 
	Fuse 135 	Book 404 Page 37 	NMC 889652 
	Fuse 136 	Book 404 Page 38 	NMC 889653 
	Fuse 137 	Book 404 Page 39 	NMC 889654 
	Fuse 138 	Book 404 Page 40 	NMC 889655 
	Fuse 139 	Book 404 Page 41 	NMC 889656 
	Fuse 140 	Book 404 Page 42 	NMC 889657 
	Fuse 141 	Book 404 Page 43 	NMC 889658 
	Fuse 142 	Book 404 Page 44 	NMC 889659 
	Fuse 143 	Book 404 Page 45 	NMC 889660 
	Fuse 144 	Book 404 Page 46 	NMC 889661 
	Fuse 145 	Book 404 Page 47 	NMC 889662 
	Fuse 146 	Book 404 Page 48 	NMC 889663 
	Fuse 147 	Book 404 Page 49 	NMC 889664 
	Fuse 148 	Book 404 Page 50 	NMC 889665 
	Fuse 149 	Book 404 Page 51 	NMC 889666 
	Fuse 150 	Book 404 Page 52 	NMC 889667 
	Fuse 151 	Book 404 Page 53 	NMC 889668 
	Fuse 152 	Book 404 Page 54 	NMC 889669 
	Fuse 153 	Book 404 Page 55 	NMC 889670 
	Fuse 154 	Book 404 Page 56 	NMC 889671 
	Fuse 155 	Book 404 Page 57 	NMC 889672 
	Fuse 156 	Book 404 Page 58 	NMC 889673 
	Fuse 157 	Book 404 Page 59 	NMC 889674 
	Fuse 158 	Book 404 Page 60 	NMC 889675 
	Fuse 159 	Book 404 Page 61 	NMC 889676 
	Fuse 160 	Book 404 Page 62 	NMC 889677 
	Fuse 161 	Book 404 Page 63 	NMC 889678 
	Fuse 162 	Book 404 Page 64 	NMC 889679 
	Fuse 163 	Book 404 Page 65 	NMC 889680

Exh. A-4

	Claim Name 	Recording Information 	BLM Serial Number 
	Fuse 164 	Book 404 Page 66 	NMC 889681 
	Fuse 165 	Book 404 Page 67 	NMC 889682 
	Fuse 166 	Book 404 Page 68 	NMC 889683 
	Fuse 167 	Book 404 Page 69 	NMC 889684 
	Fuse 168 	Book 404 Page 70 	NMC 889685 
	Fuse 169 	Book 404 Page 71 	NMC 889686 
	Fuse 170 	Book 404 Page 72 	NMC 889687 
	Fuse 171 	Book 404 Page 73 	NMC 889688 
	Fuse 172 	Book 404 Page 74 	NMC 889689 
	Fuse 173 	Book 404 Page 75 	NMC 889690 
	Fuse 174 	Book 404 Page 76 	NMC 889691 
	Fuse 175 	Book 404 Page 77 	NMC 889692 
	Fuse 176 	Book 404 Page 78 	NMC 889693 
	Fuse 177 	Book 404 Page 79 	NMC 889694 
	Fuse 178 	Book 404 Page 80 	NMC 889695 
	Fuse 179 	Book 404 Page 81 	NMC 889696 
	Fuse 180 	Book 404 Page 82 	NMC 889697 
	Fuse 181 	Book 404 Page 83 	NMC 889698 
	Fuse 182 	Book 404 Page 84 	NMC 889699 
	Fuse 183 	Book 404 Page 85 	NMC 889700 
	Fuse 184 	Book 404 Page 86 	NMC 889701 
	Fuse 185 	Book 404 Page 87 	NMC 889702 
	Fuse 186 	Book 404 Page 88 	NMC 889703 
	Fuse 187 	Book 404 Page 89 	NMC 889704 
	Fuse 188 	Book 404 Page 90 	NMC 889705 
	Fuse 189 	Book 404 Page 91 	NMC 889706 
	Fuse 190 	Book 404 Page 92 	NMC 889707 
	Fuse 191 	Book 404 Page 93 	NMC 889708 
	Fuse 192 	Book 404 Page 94 	NMC 889709 
	Fuse 193 	Book 404 Page 95 	NMC 889710 

Exh. A-5

Exhibit F

          “Feasibility
Study” shall mean a report, prepared either internally by PDUS or by an
independent third party, to ascertain whether valuable minerals from the
Property can profitably be extracted, treated and sold in circumstances that
would provide reasonable long term returns, and shall include, without limiting
the generality of the foregoing, (a) reasonable assessments of the size and
quality of the minable reserves of minerals; (b) reasonable assessments of the
amenability of the minerals to metallurgical treatment; (c) a mine plan and
reasonable descriptions of the work, equipment and supplies required to bring
the prospective ore body or deposit of minerals into production, including
beneficiation, environmental baseline, health and permitting requirements, and
the estimated costs thereof; (d) a marketing plan for marketing products, and
the assumed terms of sale and prices to be received; (e) conclusions and
recommendations regarding the economic feasibility and timing for bringing the
prospective ore body or deposit of minerals into commercial production, taking
into account items (a) through (d) above; and (f) such other information in such
form and level of detail as may be appropriate and necessary to allow a bank or
other lending institution familiar with the mining industry to make a decision
as to whether to loan funds for such operations

Exh. F-1

Exhibit G

          If
either Party’s interest in the Property is converted to an interest in Net
Returns, it will be entitled to receive as a nonparticipating, non-executive
production royalty (the “Production Royalty”), 2.5% of the Net Returns from the
sale of any valuable minerals extracted, produced and sold from the Claims. If
PDUS or any successor or assign of PDUS is the Payor (as defined below), and the
provisions of paragraph 1(d)(i)(B) below apply, the Production Royalty shall be
2.35% of the Net Returns. The Parties agree that in no event shall the
percentage of Net Returns payable to MUI or PDUS plus the percentage of Net
Returns (or net smelter returns) payable to any third party under the Existing
Royalties or any other agreement exceed the equivalent of 5% of Net Returns, and
that if the combined royalty burden on any portion of the Property exceeds the
equivalent of 5% of Net Returns, the percentage of Net Returns payable to MUI or
PDUS shall be reduced accordingly.

                                        1.      The
Production Royalty.

                    (a)      As
used herein, “Payor” means the Party obligated to pay the Production
Royalty (and its successors and assigns), and “Payee” means the Party
entitled to receive the Production Royalty (and its successors and assigns).

                    (b)      As
used herein, “Net Returns” means the Gross Returns from any and all ores,
metals, minerals and materials of every kind and character found in, on or under
the Claims (“Valuable Minerals”), extracted, produced and sold or deemed to have
been sold from the Claims, less all Allowable Deductions.

                    (c)      As
used herein, “Gross Returns” has the following meanings for the following
categories of Valuable Minerals:

                    (i)     
If Payor causes refined gold that meets or exceeds the generally accepted
commercial standards for refined gold to be produced by an independent
third-party refinery from ores mined from the Claims, for purposes of
determining the Production Royalty, the refined gold shall be deemed to have
been sold in the calendar month in which it was produced at the Monthly Average
Gold Price for that month. The Gross Returns from such deemed sales shall be
determined by multiplying Gold Production during the month by the Monthly
Average Gold Price. As used herein, “Gold Production” means the quantity
of refined gold that is outturned to Payor’s account by the refinery during the
calendar month on either a provisional or final settlement basis. If outturn of
refined gold is made by the refinery on a provisional basis, the Gross Returns
shall be based upon the amount of such provisional settlement, but shall be
adjusted in subsequent statements to account for the amount of refined metal
established by final settlement by the refinery. As used herein, “Monthly
Average Gold Price” means the average London Bullion Market Association P.M.
Gold Fix, calculated by dividing the sum of all such prices reported for the
month by the number of days for which such prices were reported. If the London
Bullion Market Association P.M. Gold Fix 

Exh. G-1

ceases to be published, the Monthly
Average Gold Price shall be determined by reference to prices for refined gold
for immediate delivery in the most nearly comparable established market selected
by Payor as such prices are published in “Metals Week” or a similar
publication.

                    (ii)     
If Payor causes refined silver that meets or exceeds the generally accepted
commercial standards for refined silver to be produced by an independent
third-party refinery from ore mined from the Claims, for purposes of determining
the Production Royalty, the refined silver shall be deemed to have been sold in
the calendar month in which it was produced at the Monthly Average Silver Price
for that month. The Gross Returns from such deemed sales shall be determined by
multiplying Silver Production during the calendar month by the Monthly Average
Silver Price. As used herein, “Silver Production” shall mean the quantity
of refined silver that is outturned to Payor’s account by the refinery during
the calendar month on either a provisional or final settlement basis. If outturn
of refined silver is made by the refinery on a provisional basis, the Gross
Returns shall be based upon the amount of such provisional settlement, but shall
be adjusted in subsequent statements to account for the amount of refined metal
established by final settlement by the refinery. As used herein, “Monthly
Average Silver Price” shall mean the average New York Silver Price as
published daily by Handy & Harman, calculated by dividing the sum of all
such prices reported for the calendar month by the number of days for which such
prices were reported. If the Handy & Harman quotation ceases to be
published, the Monthly Average Silver Price shall be determined by reference to
prices for refined silver for immediate delivery in the most nearly comparable
established market selected by Payor as published in “Metals Week” or a similar
publication.

                    (iii)     
If Payor sells refined metals (other than refined gold and refined silver), doré
or concentrates produced from Valuable Minerals from the Claims, the Gross
Returns for such refined metals shall be the proceeds actually received by Payor
from their sale. If such sales are to an affiliated party, the refined metals,
doré, or concentrates shall be deemed, solely for the purpose of computing Gross
Returns, to have been sold at prices and on terms no less favorable to Payor
than those which would have been received under similar circumstances from an
unaffiliated third party.

                    (d)      As
used herein, “Allowable Deductions” means the following costs, charges,
and expenses incurred or accrued by Payor: 

                    (i)     
If Payor sells or is deemed to have sold refined gold or refined silver:

                    (A)     
all costs, charges and expenses for smelting and refining doré or concentrates
to produce the refined gold or refined silver (including handling, processing,
and provisional settlement fees, sampling, assaying and representation costs,
penalties, and other processor deductions);

Exh. G-2

                    (B)      all
costs, charges, and expenses for weighing, sampling, determining moisture
content and packaging Valuable Minerals and for loading and transportation of
ores, minerals, doré, concentrates or other materials from the mine mouth to the
processing facilities (if the existing Mill No. 1 (Cortez) or Mill No. 2
(Pipeline) Cortez Joint Venture processing facilities, to the extent the same
are modified or expanded, are utilized) and of loading and transporting the doré
or concentrates from the Claims to the refinery or smelter and then to the place
of sale (including freight, insurance, security, transaction taxes, handling,
port, demurrage, delay, and forwarding expenses incurred by reason of or in the
course of such transportation); and

               (C)     
an allowance for reasonable sales and brokerage costs.

                    (ii)     
If Payor sells refined metals (other than refined gold or refined silver), doré,
concentrate or ores:

                    (A)      all
costs, charges, and expenses for (I) beneficiation, processing or treatment of
such materials at any plant or facility and (II) smelting or refining to produce
a refined metal (including handling, processing, and provisional settlement
fees, sampling, assaying and representation costs, penalties, and other
processor deductions);

                    (B)     
all costs, charges, and expenses for weighing, sampling, determining moisture
content and packaging Valuable Minerals and for loading and transportation of
ores, minerals, doré, concentrates or other products from the Claims (I) to the
place of sale, or (II) if such ores or other materials are beneficiated,
processed, treated, smelted or refined at any plant or facility more than five
(5) miles from the exterior boundary of the Claims, to such plant or facility
and then to the place of sale (including freight, insurance, security,
transaction taxes, handling, port, demurrage, delay, and forwarding expenses
incurred by reason of or in the course of such transportation); and

                    (C)      actual
sales and brokerage costs.

                    (iii)      All
royalties payable to any governmental agency and all sales, use, severance,
Nevada net proceeds of mines and ad valorem taxes and any other tax or
governmental levy or fee on or measured by mineral production from the Claims
(other than taxes based on income).

                    (e)      Payor
shall have the right to market and sell or refrain from selling refined gold,
refined silver and other mineral products from the Claims in any manner it may
elect, including the right to engage in forward sales, future trading or
commodity options trading, and other price hedging, price protection, and
speculative arrangements (“Trading Activities”) which may involve the
possible delivery of gold, silver or other mineral products from the Claims.
With respect to Production Royalty payable on refined gold and refined silver
and any other Valuable Minerals, Payee shall not be entitled to participate in

Exh. G-3

the proceeds or be obligated to share in any losses generated
by Payor’s actual marketing or sales practices or by its Trading Activities and
no such profits or losses shall be included in Gross Returns.

                                             2.     
Manner of Payment. Production Royalty payments shall be paid by Payor to
Payee (or notice of a credit against Production Royalties as provided above
shall be given to Payee) on or before thirty (30) days following the calendar
quarter during which Payor shall have received payment for Valuable Minerals
sold by Payor. Production Royalties shall accrue to Payee’s account upon final
payment or upon being credited to the account of Payor by the smelter, refinery
or other ore buyer to Payor for the Valuable Minerals sold and for which the
Production Royalty is payable. All Production Royalty payments shall be made at
Payor’s election by Payor’s check or by wire transfer. All Production Royalty
payments shall be accompanied by a statement and settlement sheet showing the
quantities and grades of Valuable Minerals mined and sold from the Claims, the
proceeds of sales, cost, assays and analyses, and other pertinent information in
reasonably sufficient detail to explain the calculation of the Production
Royalty payment.

                                             3.      Payments;
Where Made. All payments hereunder shall be sent by certified U.S.
mail to Payee at its address as set forth above, or by wire transfer to an
account designated by and in accordance with written instructions from Payee.
The date of placing such payment in the United States mail by Payor, or the date
the wire transfer process is initiated, shall be the date of such payment.
Payments by Payor in accordance herewith shall fully discharge Payor’s
obligation with respect to such payment, and Payor shall have no duty to
otherwise apportion or allocate any payment due to Payee or its successors or
assigns.

                                             4.     
Audits; Objections to Payments. Payee, at its sole election and
expense, shall have the right to perform, not more frequently than once annually
following the close of each calendar year, an audit of Payor’s accounts relating
to payment of the Production Royalty hereunder by any authorized representative
of Payee. Any such inspection shall be for a reasonable length of time during
regular business hours, at a mutually convenient time, upon at least five (5)
business days prior written notice by Payee. All royalty payments made in any
calendar year shall be considered final and in full accord and satisfaction of
all obligations of Payor with respect thereto, unless Payee gives written notice
describing and setting forth a specific objection to the calculation thereof
within six (6) months following the close of the annual audit for that calendar
year. Payor shall account for any agreed upon deficit or excess in Production
Royalty payments made to Payee by adjusting the next quarterly statement and
payment following completion of such audit to account for such excess. 

                                             5.     
Conduct of Operations. Payor shall have the sole and exclusive
control of all operations on or for the benefit of the Claims, and of any and
all equipment, supplies, machinery, and other assets purchased or otherwise
acquired or under its control in connection with such operations. Payor may
carry 

Exh. G-4

out such operations on the Claims as it may, in its sole
discretion, determine to be warranted, so long as such operations are conducted
in accordance with procedures acceptable in the mining and metallurgical
industry. The timing, nature, manner and extent of any exploration, development,
mining or processing operations carried out or in connection with the Claims
shall be within the sole discretion of Payor, and there shall be no implied
covenant whatsoever to begin or continue any such operations. If Payor at any
time, and from time to time after commencing operations, desires to shut down,
suspend or cease operations for any reason, it shall have the right to do so.
Payor may use and employ such methods of mining as it may desire or find most
profitable. Payor shall not be required to mine, preserve, or protect in its
mining operations any ores, leachates, precipitates, concentrates or other
products containing Valuable Minerals which cannot be mined or shipped at a
reasonable profit to Payor. Any decision as to the time, manner and form, if
any, in which ores or other products containing Valuable Minerals are to be sold
shall be made by Payor in its sole discretion.

                                             6.      Ore
Processing. All determinations with respect to: (a) whether ore from
the Claims will be beneficiated, processed or milled by Payor or sold in a raw
state; (b) the methods of beneficiating, processing or milling any such ore; (c)
the constituents to be recovered therefrom, and (d) the purchasers to whom any
ore, minerals or mineral substances derived from the Claims may be sold, shall
be made by Payor in its sole and absolute discretion. 

                                             7.      Ore
Samples. The mineral content of all ore mined and removed from the
Claims (but excluding ore leached in place) and the quantities of constituents
recovered by Payor shall be determined by Payor, or with respect to such ore
which is sold, by the mill or smelter to which the ore is sold, in accordance
with standard sampling and analysis procedures, and shall be weighted average
based on the total amount of ore from the Claims crushed and sampled, or the
constituents recovered, during an entire calendar quarter. Upon reasonable
advance written notice to Payor, Payee shall have the right to have
representatives present at the time samples are taken for the purpose of
confirming that the sampling and analysis procedure is standard and acceptable
according to accepted industry practices.

                                             8.      Commingling
of Ores. Payor shall have the right to mix or commingle, either
underground, at the surface, or at processing plants or other treatment
facilities, any material containing Valuable Minerals mined or extracted from
the Claims with ores or material derived from other lands or properties owned,
leased or controlled by Payor; provided, however, that before commingling, Payor
shall calculate from representative samples the average grade of the ore from
the Claims and shall either weigh or volumetrically calculate the number of tons
of ore from the Claims to be commingled. As products are produced from the
commingled ores, Payor shall calculate from representative samples the average
percentage recovery of products produced from the commingled ores during each
month. In obtaining representative samples, calculating the average grade of
commingled ores and average percentage of recovery, Payor may use any procedures

Exh. G-5

acceptable in the mining and metallurgical industry which Payor
believes to be accurate and cost-effective for the type of mining and processing
activity being conducted, and Payor’s choice of such procedures shall be final
and binding upon Payee. In addition, comparable procedures may be used by Payor
to apportion among the commingled ores any penalty charges imposed by the
smelter or refiner on commingled ores or concentrates. The records relating to
commingled ores shall be available for inspection by Payee, at Payee’s sole
expense, at all reasonable times, and shall be retained by Payor for a period of
two (2) years.

                                             9.      Waste
Rock, Spoil and Tailings. Any ore, mine waters, leachates, pregnant
liquors, pregnant slurries, and other products or compounds or metals or
minerals mined from the Claims shall be the Claims of Payor, subject to the
Production Royalty as provided for in Section 1. The Production Royalty shall be
payable only on metals, ores, or minerals recovered prior to the time waste
rock, spoil, tailings, or other mine waste and residue are first disposed of as
such, and Payor shall be free to use or dispose of such waste and residue in
whatever manner it sees fit in its sole discretion. Payor shall have the sole
right to dump, deposit, sell, dispose of, or reprocess such waste rock, spoil,
tailings, or other mine wastes and residues, and Payee shall have no claim or
interest therein other than for the payment of the Production Royalty to the
extent any Valuable Minerals are produced and sold therefrom.

                                             10.      No
Covenants. The parties agree that in no event shall Payor have any
duty or obligation, express or implied, to explore for, develop, mine or produce
ores, minerals or mineral substances from the Claims, and the timing, manner,
method and amounts of such exploration, development, mining or production, if
any, shall be in the sole discretion of Payor. Payee acknowledges that the
expenditures made by Payor to advance activities on the Claims and the right to
the Production Royalty are sufficient consideration for the conversion of its
Participating Interest. None of the provisions of this Section 10 or any other
provision of this Exhibit G shall be deemed to limit or restrict Payor’s
ability to sell or otherwise convey or transfer to any third party all or any
portion of Payor’s interest in the Claims.

                                             11.      Nature
of Payee’s Interest. Payee shall have only a royalty interest in the
Claims (but no other properties adjacent to or in the vicinity of the Claims)
and rights and incidents of ownership of a non-executive royalty owner. Payee
shall not have any possessory or working interest in the Claims nor any of the
incidents of such interest. By way of example but not by way of limitation,
Payee shall not have (a) the right to participate in the execution of
applications for authorities, permits or licenses, mining leases, option,
farm-outs or other conveyances, (b) the right to share in bonus payments or
rental payments received as the consideration for the execution of such leases,
options, farm-outs, or other conveyances, or (c) the right to enter upon the
Claims and prospect for, mine, drill for, or remove ores, minerals or mineral
products therefrom.

Exh. G-6

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