Document:

MINERAL PROPERTY ACQUISITION AGREEMENT

    
      

    

    
      	
               __________

               

               

               

               

               

               

               

               

               

            
	
               

               

              MINERAL
                PROPERTY ACQUISITION
                AGREEMENT

               

               

            
	
               

               

               

               

               

               

               

              
 

              Among
                each of:

              

              

              EDUARDO
                M. ESTEFFAN, FRESIA H. SEPULVEDA, EDUARDO S. ESTEFFAN, GRETCHEN S.
                ESTEFFAN, CLAUDIO S. ESTEFFAN and
INTEGRITY
                CAPITAL GROUP, LLC

              

              

              

              

              

              And:

              

              

              ZORO
                MINING CORP.

              

              

              

              

              

              

              

              

              

              

              Zoro
                Mining Corp.

              Suite
                1000, 789 West Pender Street, Vancouver, British Columbia, Canada,
                V6C
                1H2

              __________

               

               

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    MINERAL
      PROPERTY ACQUISITION AGREEMENT

    

    

    

    THIS
      MINERAL PROPERTY ACQUISITION AGREEMENT
      is made
      and dated for reference effective as of the _____ day of April, 2007 (the
“Effective
      Date”).

    

    

    AMONG
      EACH OF:

    

    EDUARDO
      M. ESTEFFAN,
      having
      an address for delivery and notice located at Van Buren 208, Copiapo,
      Chile

    

    (“Eduardo
      M. Esteffan”);

    OF
      THE FIRST PART

    

    AND:

    

    FRESIA
      H. SEPULVEDA,
      having
      an address for delivery and notice located at Van Buren 208, Copiapo,
      Chile

    

    (“Fresia
      Sepulveda”);

    OF
      THE SECOND PART

    

    AND:

    

    EDUARDO
      S. ESTEFFAN,
      having
      an address for delivery and notice located at Van Buren 208, Copiapo,
      Chile

    

    (“Eduardo
      S. Esteffan”);

    OF
      THE THIRD PART

    

    AND:

    

    GRETCHEN
      S. ESTEFFAN,
      having
      an address for delivery and notice located at Van Buren 208, Copiapo,
      Chile

    

    (“Gretchen
      Esteffan”);

    OF
      THE FOURTH PART

    

    AND:

    

    CLAUDIO
      S. ESTEFFAN,
      having
      an address for delivery and notice located at Van Buren 208, Copiapo,
      Chile

    

    (“Claudio
      Esteffan”);

    OF
      THE FIFTH PART

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    AND:

    

    INTEGRITY
      CAPITAL GROUP, LLC,
      having
      an address for delivery and notice located at 7272 Wurzbach Road, Suite 901,
      San
      Antonio, Texas, U.S.A., 78240

    

    (“Integrity”);

    OF
      THE SIXTH PART

    

    (Eduardo
      M. Esteffan, Fresia Sepulveda, Eduardo S. Esteffan, Gretchen Esteffan, Claudio
      Esteffan and Integrity being hereinafter singularly also referred to as a
“Vendor”
and
      collectively referred to as the “Vendors”
as
      the
      context so requires);

    

    AND:

    

    ZORO
      MINING CORP.,
      a
      company incorporated under the laws of the State of Nevada, U.S.A., and having
      an address for notice and delivery located at Suite 1000, 789 West Pender
      Street, Vancouver, British Columbia, Canada, V6C 1H2

    

    (the
      “Purchaser”);

    OF
      THE SEVENTH PART

    

    (the
      Vendors and the Purchaser being hereinafter singularly also referred to as
      a
“Party”
and
      collectively referred to as the “Parties”
as
      the
      context so requires).

    

    

    WHEREAS:

    

    

    A.  The
      Vendors, either directly or indirectly and through either of their wholly-owned
      and controlled holding companies, affiliates, associates or nominees, as the
      case may be, are the legal, beneficial and registered owners of certain mineral
      property interests which are located in each of the following jurisdictions
      (collectively, the “Property”):

    

    
      	 	
              (a)

            	
              the
                Las Animas Project located in Mexico and comprising approximately
                2,700
                hectares;

            

    

    

    
      	 	
              (b)

            	
              the
                Costa Rica Project located in Chile and comprising approximately
                2,100
                hectares, the Escondida Project also located in Chile and comprising
                approximately 2,000 hectares; the Rio Sur Project also located in
                Chile
                and comprising approximately 1,300 hectares and the Don Beno Project
                located in Chile and comprising approximately 6,000 hectares;
                and

            

    

    

    
      	 	
              (c)

            	
              the
                Yura Project located in Peru and comprising approximately 2,000
                hectares;

            

    

    

    and
      which
      mineral property interests comprising the Property are more particularly
      described in Schedule “A” which is attached hereto and which forms a material
      part hereof;

    

    B.  The
      Purchaser is a reporting company incorporated under the laws of the State of
      Nevada, U.S.A., is in the business of seeking, acquiring and developing mineral
      resource property interests of merit and has its common shares listed for
      trading on the NASD over-the-counter Bulletin Board;

    

    C.  As
      a
      consequence of various recent discussions and negotiations as between the
      Parties hereto the Vendors
      have
      agreed to grant an exclusive option to the Purchaser (the “Option”)
      to
      acquire an undivided 100% legal, beneficial and registerable interest in and
      to
      each of the mineral property interests comprising the Property;
      and

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    D.  The
      Parties hereto have agreed to enter into this agreement (the “Agreement”)
      which
      formalizes and replaces, in its entirety, such recent discussions and
      negotiations, and which clarifies their respective duties and obligations in
      connection with the within granting by the Vendors to the Purchaser of the
      Option to acquire an undivided 100% legal, beneficial and registerable interest
      in and to the mineral property interests comprising the Property as a
      consequence thereof;

    

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH that,
      in
      consideration of the mutual covenants and provisos herein contained, THE
      PARTIES HERETO AGREE AS FOLLOWS:

    

    

    Article
      1

    DEFINITIONS,
      SCHEDULES AND INTERPRETATION

    

    1.1  Definitions.
      For the
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires, the following words and phrases shall have the
      following meanings:

    

    
      	 	
              (a)

            	
              “Affiliate”
                has the meaning ascribed to it in section “2.2”
                hereinbelow;

            

    

    

    
      	 	
              (b)

            	
              “Affiliate
                Share”
                has the meaning ascribed to it in section “2.2”
                hereinbelow;

            

    

    

    
      	 	
              (c)

            	
              “Affiliate
                Share Transfer”
                has the meaning ascribed to it in section “2.2”
                hereinbelow;

            

    

    

    
      	 	
              (d)

            	
              “Agreement”
                means this Mineral Property Acquisition Agreement as entered into
                between
                the Parties hereto, together with any amendments thereto and any
                Schedules
                as attached thereto;

            

    

    

    
      	 	
              (e)

            	
              “Arbitration
                Act”
                means the British Columbia Commercial
                Arbitration Act,
                R.S.B.C. 1996, as amended, as set forth in Article “14”
                hereinbelow;

            

    

    

    
      	 	
              (f)

            	
              “Closing”
                has the meaning ascribed to it in section “6.1” hereinbelow and includes,
                without limitation, the closing of each of the transactions contemplated
                hereby which shall occur after the conditions precedent set out in
                Article
                “5” hereinbelow have been satisfied in their
                entirety;

            

    

    

    
      	 	
              (g)

            	
              “Closing
                Date”
                has the meaning ascribed to it in section “6.1”
                hereinbelow;

            

    

    

    
      	 	
              (h)

            	
              “Confidential
                Information”
                has the meaning ascribed to it in section “12.1”
                hereinbelow;

            

    

    

    
      	 	
              (i)

            	
              “Consultants”
                has the meaning ascribed to it in section “2.2”
                hereinbelow;

            

    

    

    
      	 	
              (j)

            	
              “Consulting
                Arrangements”
                has the meaning ascribed to it in section “2.2”
                hereinbelow;

            

    

    

    
      	 	
              (k)

            	
              “Defaulting
                Party”
                and “Non-Defaulting
                Party”
                have the meanings ascribed to them in section “15.1”
                hereinbelow;

            

    

    

    
      	 	
              (l)

            	
              “Disposing
                Party”
                has the meaning ascribed to it in section “8.3”
                hereinbelow;

            

    

    

    
      	 	
              (m)

            	
              “Effective
                Date”
                has the meaning ascribed to in on the front page of this
                Agreement;

            

    

    

    
      	 	
              (n)

            	
              “Escrow
                Agent”
                means Lang Michener LLP, Lawyers - Patent & Trade Mark Agents, or such
                other mutually agreeable escrow agent as may be selected by the Parties
                hereto either prior to or after the Effective Date and who agrees
                to be
                bound by the terms and conditions of this
                Agreement;

            

    

    

    
      	 	
              (o)

            	
              “Holding”
                has the meaning ascribed to it in section “8.3”
                hereinbelow;

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (p)

            	
              “Indemnified
                Parties”
                and “Indemnified
                Party”
                have the meanings ascribed to them in section “16.1”
                hereinbelow;

            

    

    

    
      	 	
              (q)

            	
              “mortgage”
                has the meaning ascribed to it in section “8.1”
                hereinbelow;

            

    

    

    
      	 	
              (r)

            	
              “Option”
                has the meaning ascribed to it in section “2.1” hereinbelow as effected in
                the manner as set forth in Article “2”
                hereinbelow;

            

    

    

    
      	 	
              (s)

            	
              “Option
                Period”
                has the meaning ascribed to it in section “2.1”
                hereinbelow;

            

    

    

    
      	 	
              (t)

            	
              “Party”
                or “Parties”
                means the Vendors and/or the Purchaser hereto, together with their
                respective successors and permitted assigns as the context so
                requires;

            

    

    

    
      	 	
              (u)

            	
              “person”
                or “persons”
                means an individual, corporation, partnership, party, trust, fund,
                association and any other organized group of persons and the personal
                or
                other legal representative of a person to whom the context can apply
                according to law;

            

    

    

    
      	 	
              (v)

            	
              “Property”
                has the meaning ascribed to it in recital “A.”
                hereinabove; and which mineral property interests comprising the
                Property
                are particularly described in Schedule “A” which is attached hereto
                together with any other claim or interests of the Parties hereto
                which are
                incorporated into the Property by the terms of this
                Agreement;

            

    

    

    
      	 	
              (w)

            	
              “Property
                Documentation”
                means any and all technical records and other factual engineering
                data and
                information relating to the mineral property interests comprising
                the
                Property and including, without limitation, all plans, maps, agreements
                and records which are in the possession or control of any Party
                hereto;

            

    

    

    
      	 	
              (x)

            	
              “Property
                Rights”
                means all mineral licenses and all prioritized and protocoled applications
                for exploration licenses, permits, easements, rights-of-way, certificates,
                exclusive prospecting orders and other approvals obtained by either
                of the
                Parties either before or after the Effective Date of this Agreement
                and
                necessary for the exploration and development of any of the mineral
                property interests comprising the
                Property;

            

    

    

    
      	 	
              (y)

            	
              “Purchaser”
                means Zoro Mining Corp., a company incorporated pursuant to the laws
                of
                the State of Nevada, U.S.A., or any successor company, however formed,
                whether as a result of merger, amalgamation or other
                action;

            

    

    

    
      	 	
              (z)

            	
              “Regulatory
                Approval”
                means the acceptance for filing of the transactions contemplated
                by this
                Agreement by the Regulatory
                Authorities;

            

    

    

    
      	 	
              (aa)

            	
              “Regulatory
                Authorities”
                means such regulatory bodies and agencies who have jurisdiction over
                the
                affairs of any of the Parties hereto and including, without limitation,
                all Regulatory Authorities from whom any such authorization, approval
                or
                other action is required to be obtained or to be made in connection
                with
                the transactions contemplated by this
                Agreement;

            

    

    

    
      	 	
              (ab)

            	
              “Securities
                Act”
                means the United States Securities
                Act of 1933,
                as amended, together with any Rules and Regulations promulgated
                thereunder;

            

    

    

    
      	 	
              (ac)

            	
              “Subject
                Removal Date”
                has the meaning ascribed to it in section “5.1”
                hereinbelow;

            

    

    

    
      	 	
              (ad)

            	
              “subsidiary”
                means any company or companies of which more than 50% of the outstanding
                      shares carrying votes at all times (provided that the ownership
                of such
                shares confers the right at all times to elect at least a majority
                of the
                board of directors of such company or companies) are for the
                time

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    being
      owned by or held for a company and/or any other company in like relation to
      the
      company, and includes any company in like relation to the
      subsidiary;

    

    (ae) “Transfer
      Documents”
has
      the
      meaning ascribed to it in section “7.2” hereinbelow; and

    

    
      	 	
              (af)

            	
              “Vendor”
                and “Vendors”
                means, individually and/or collectively, as the case may be, each
                of
                Eduardo M. Esteffan, Fresia Sepulveda, Eduardo S. Esteffan, Gretchen
                Esteffan, Claudio Esteffan and
                Integrity.

            

    

    

    1.2  Schedule. For
      the
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires, the following shall represent the Schedule which
      is
      attached to this Agreement and which forms a material part hereof:

    

     
      
        	 	
                 Schedule

              	 	
                  Description

              	 
	 	 	 	 	 
	 	
                 Schedule
“A”:

              	 	
                 Property.

              	 

      
      

    

    1.3  Interpretation. For
      the
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

    

    
      	 	
              (a)

            	
              the
                words “herein”,
                “hereof”
                and “hereunder”
                and other words of similar import refer to this Agreement as a whole
                and
                not to any particular Article, section or other subdivision of this
                Agreement;

            

    

    

    
      	 	
              (b)

            	
              the
                headings are for convenience only and do not form a part of this
                Agreement
                nor are they intended to interpret, define or limit the scope or
                extent of
                this or any provision of this
                Agreement;

            

    

    

    
      	 	
              (c)

            	
              any
                reference to an entity shall include and shall be deemed to be a
                reference
                to any entity that is a permitted successor to such entity;
                and

            

    

    

    
      	 	
              (d)

            	
              words
                in the singular include the plural and words in the masculine gender
                include the feminine and neuter genders, and vice
                versa.

            

    

    

    

    Article
      2

    GRANT,
      MAINTENANCE, EXERCISE AND TERMINATION OF THE OPTION

    

    2.1  Grant
      of the Option.
      Subject
      to the terms and conditions hereof and based upon the representations,
      warranties and covenants contained in Articles “3” and “4” hereinbelow and the
      prior satisfaction of the conditions precedent which are set forth in Article
      “5”
      hereinbelow, the Vendors hereby agrees to give and grant to the Purchaser the
      sole and exclusive right and option to acquire an undivided 100% legal,
      beneficial and registerable interest in and to the mineral property interests
      comprising the Property (again, the “Option”)
      and,
      in order to maintain the Option in good standing and in full force and effect,
      the Purchaser hereby agrees to exercise the Option on or before the Closing
      Date
      (and which period in time from the Effective Date herein to the Closing Date
      is
      referred to as the “Option
      Period”)
      for
      each of the considerations provided for in accordance with section “2.2”
hereinbelow.

    

    2.2  Consideration
      for and maintenance of the Option.
      In
      order to keep the right and Option granted to the Purchaser in respect of the
      Property in good standing and in force and effect during the Option Period
      the
      Purchaser shall be obligated to provide the following consideration to the
      Vendors in the following manner:

    

    
      	 	
              (a)

            	
              Affiliate
                Share Transfer:
                in contemplation of each of the Vendor’s various and potential continuing
                roles within the Company upon the exercise of the within Option and
                the
                proposed Closing of this Agreement, the Purchaser will be required
                to
                cause a certain existing founding shareholder of the Company (that
                being
                Paul D. Brock; a current director of the Purchaser and herein the
                “Affiliate”)
                to sell an aggregate of 35,500,000
                restricted and control and issued and outstanding common shares from
                the
                holdings of such Affiliate in and to the Purchaser (each an “Affiliate
                Share”)
                to the order and direction of the Vendors at a purchase price of
                U.S.
                $0.0001 per Affiliate Share:

            

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      	 Vendors	 Proposed allocation of Affiliate
              Shares
	 	 
	 Eduardo M. Esteffan:   	 1,849,700 Affiliate Shares
	 Fresia Sepulveda:   	 1,500,000 Affiliate Shares
	 Eduardo S. Esteffan:   	 1,200,000 Affiliate Shares
	 Gretchen Esteffan:   	 1,300,000 Affiliate Shares
	 Claudio Esteffan:   	 1,300,000 Affiliate Shares
	 Integrity:    	 28,050,300
              Affiliate Shares
	     Subtotal:   	 35,200,000 Affiliate
              Shares
	 	 
	 Vendor nominee(s)	 Proposed allocation of Affiliate
              Shares
	 	 
	 Guillermo Ortiz:   	 220,000 Affiliate Shares
	 Eduardo Aguirre:  	 40,000
              Affiliate Shares
	 Hector
              Olivares:   	 40,000
              Affiliate Shares
	     Subtotal:   	 300,000 Affiliate Shares
	 	 
	     Total:   	 35,500,000
              Affiliate Shares;

    

    
 

    
      	 	
              (b)

            	
              Consulting
                Arrangements:
                in contemplation of certain agents to the Vendors having and continuing
                to
                have certain roles within the Company upon the exercise of the within
                Option and the proposed Closing of this Agreement; and to take effective
                only upon the Closing herein; the Purchaser will use its reasonably
                commercial efforts to enter into industry standard forms of proposed
                consulting arrangements (collectively, the “Consulting
                Arrangements”)
                with certain of the finally determined agents to the Vendors
                (collectively, the “Consultants”
                herein) therein providing for, without limitation, the provision
                of
                certain consulting services to be provided by the Consultants to
                the
                Purchaser in connection with the exploration, development and expansion
                of
                the Property in consideration of, among other matters, the provision
                of
                the monthly payments by the Purchaser to each of the Consultants
                together
                with entitlement for the Consultants to participate in the Purchaser’s
                then incentive stock option plan subject, at all times, to the final
                determination of the Board of Directors of the Purchaser in each
                such
                instance; and

            

    

    

    
      	 	
              (c)

            	
              Maintenance
                payments:
                pay, or cause to be paid, to or on the Vendors’ behalf as the Purchaser
                may determine, in the Purchaser’s sole and absolute discretion, all
                underlying option, regulatory and governmental payments and assessment
                work required to keep the mineral property interests comprising the
                Property and any underlying option agreements respecting any of the
                mineral property interests comprising the Property in goodstanding
                during
                the Option Period of this
                Agreement.

            

    

    

    2.3  Resale
      restrictions and legending of Affiliate Share
      certificates.
      The
      Vendors hereby acknowledge and agree that neither the Purchaser nor the
      Affiliate makes any representations as to any resale or other restriction
      affecting the Affiliate Shares and that it is presently contemplated that the
      Affiliate Shares will be transferred by the Affiliate to the Vendors in reliance
      upon the registration and prospectus exemptions contained in certain sections
      of
      the United States Securities
      Act
      of 1933
      (the “Securities
      Act”)
      which
      will impose a trading restriction in the United States on the Shares for a
      period of at least 12 months from the Closing Date. In addition, the Vendors
      hereby also acknowledges and agrees that the within obligation of the Affiliate
      to transfer the Affiliate Shares pursuant to section “2.2” hereinabove will be
      subject to each of the Purchaser and the Affiliate being satisfied that an
      exemption from applicable registration and prospectus requirements is available
      under the Securities Act and all applicable securities laws in respect of each
      of the Vendors and the Affiliate Shares.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    The
      Vendors
      hereby
      also acknowledge and understand that neither the sale of the Affiliate
      Shares
      which the Vendors
      are
      acquiring nor any of the
      Affiliate
      Shares
      themselves have been registered under the Securities Act or any state securities
      laws, and, furthermore, that the Affiliate
      Shares
      must be held indefinitely unless subsequently registered under the Securities
      Act or an exemption from such registration is available. The
      Vendors
      also
      acknowledge and understand that the certificates representing the
      Affiliate
      Shares
      will be stamped with the following legend (or substantially equivalent language)
      restricting transfer in the following manner if such restriction is required
      by
      the Regulatory Authorities:

    

    “The
      transfer of the securities represented by this certificate is prohibited except
      in accordance with the provisions of Regulation S promulgated under the United
      States Securities Act of 1933, as amended (the “Act”), pursuant to registration
      under the Act or pursuant to an available exemption from registration. In
      addition, hedging transactions involving such securities may not be conducted
      unless in compliance with the Act.”.

    or

    “The
      securities represented by this certificate have not been registered under the
      United States Securities Act of 1933, as amended, or the laws of any state,
      and
      have been issued pursuant to an exemption from registration pertaining to such
      securities and pursuant to a representation by the security holder named hereon
      that said securities have been acquired for purposes of investment and not
      for
      purposes of distribution. These securities may not be offered, sold,
      transferred, pledged or hypothecated in the absence of registration, or the
      availability of an exemption from such registration. The stock transfer agent
      has been ordered to effectuate transfers only in accordance with the above
      instructions.”;

    

    and
      the
      Vendors hereby consent to the Purchaser making a notation on its records or
      giving instructions to any transfer agent of the Purchaser in order to implement
      the restrictions on transfer set forth and described hereinabove.

    

    The
      Vendors
      also
      acknowledge and understand that:

    

    
      	 	
              (a)

            	
              the
                Affiliate Shares are restricted securities within the meaning of
                “Rule
                144”
                promulgated under the Securities
                Act;

            

    

    

    
      	 	
              (b)

            	
              the
                exemption from registration under Rule 144 will not be available
                in any
                event for at least one year from the date of transfer of the Affiliate
                Shares to the Vendors,
                and even then will not be available unless (i) a public trading market
                then exists for the common stock of the Purchaser,
                (ii) adequate information concerning the Purchaser
                is
                then available to the public and (iii) other terms and conditions
                of Rule
                144 are complied with; and

            

    

    

    
      	 	
              (c)

            	
              any
                sale of the Affiliate Shares may be made by the Vendors
                only
                in limited amounts in accordance with such terms and
                conditions.

            

    

    

    2.4  Standstill
      provisions.
      In
      consideration of the Purchaser’s within agreement to purchase the Property and
      to enter into the terms and conditions of this Agreement, the Vendors hereby
      undertakes for themselves, and for each of the Vendors’ respective agents and
      advisors, that they will not until the earlier of the Closing Date or the
      termination of this Agreement approach or consider any other potential
      purchasers, or make, invite, entertain or accept any offer or proposal for
      the
      proposed sale of any mineral property interests comprising the Property or,
      for
      that matter, disclose any of the terms of this Agreement, without the
      Purchaser’s prior written consent. In this regard the Vendors hereby acknowledge
      that the foregoing restrictions are important to the business of the Purchaser
      and that a breach by the Vendors of any of the covenants herein contained would
      result in irreparable harm and significant damage to the Purchaser that would
      not be adequately compensated for by monetary award. Accordingly, the Vendors
      hereby agree that, in the event of any such breach, in addition to being
      entitled as a matter of right to apply to a Court of competent equitable
      jurisdiction for relief by way of restraining order, injunction, decree or
      otherwise as may be appropriate to ensure compliance with the provisions hereof,
      the Vendors will also be liable to the Purchaser, as liquidated damages, for
      an
      amount equal to the amount received and earned by any such Party as a result
      of
      and with respect to any such breach. The Vendors also acknowledge and agree
      that
      if any of the aforesaid restrictions, activities, obligations or periods are
      considered by a Court of competent jurisdiction as being unreasonable, they
      agree that said Court shall have authority to limit such restrictions,
      activities or periods as the Court deems proper in the
      circumstances.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    

    2.5  Termination
      of the Option.
      The
      Option shall terminate upon 90-calendar days’ prior written notice being first
      being provided by the Vendors to the Purchaser:

    

    
      	 	
              (a)

            	
              if
                the Purchaser fails to arrange for the completion of the Affiliate
                Share
                Transfer by the Affiliate to the order and direction of the Vendors
                in
                accordance with paragraph “2.2(a)” hereinabove during the Option Period
                and prior to the time period and the Closing Date as specified in
                paragraph “2.2(a)” hereinabove; or

            

    

    

    
      	 	
              (b)

            	
              if
                the Purchaser fails to pay, or cause to be paid, to or on the Vendors’
                behalf as the Purchaser may determine, in the Purchaser’s sole and
                absolute discretion, all underlying option, regulatory and governmental
                payments and assessment work required to keep the mineral property
                interests comprising the Property and any underlying option agreements
                respecting any of the mineral property interests comprising the Property
                in goodstanding in accordance with paragraph “2.2(c)”
                hereinabove.

            

    

    

    2.6  Termination
      by the Purchaser of the Option.
      Prior
      to the exercise of the Option the Purchaser may terminate the Option by
      providing a notice of termination to the Vendors in writing of its desire to
      do
      so at least 30 calendar days prior to its decision to do so. After such
      30-calendar days’ period the Purchaser shall have no further obligations,
      financial or otherwise, under this Agreement, except that the provisions of
      section “2.8” hereinbelow shall become immediately applicable to the Purchaser
      upon providing the said notice of termination to the Vendors.

    

    2.7  No
      interest in the Property upon termination of the Option.
      If the
      Option is so terminated in accordance with either of sections “2.5” or “2.6”
hereinabove the Purchaser shall have no interest in and to any of the mineral
      property interests comprising the Property, and any and all prior Affiliate
      Share Transfer transfers, Consulting Arrangements and maintenance payments
      made,
      or caused to be made, or incurred by the Purchaser to or on behalf of the
      Vendors or any of the mineral property interests comprising the Property under
      this Agreement, shall then be non-refundable by the Vendors to the Purchaser
      for
      which the Purchaser shall have no recourse, and the provisions of section “2.8”
hereinbelow shall become immediately applicable to the Purchaser.

    

    2.8  Obligations
      on termination of the Option.
      If the
      Option is terminated otherwise than upon the exercise thereof pursuant to this
      Article, then the Purchaser shall:

    

    
      	 	
              (a)

            	
              leave
                in good standing for a period of at least 60 calendar days from the
                termination of the Option those mineral property interests comprising
                the
                Property that are in good standing on the date
                thereof;

            

    

    

    
      	 	
              (b)

            	
              cause
                to be delivered to the Vendors the Transfer Documents and bills of
                sale in
                recordable form whereby the Purchaser’s entire right, title and interest
                in and to the mineral property interests comprising the Property
                has been
                transferred to the Vendors free and clear of all liens or charges
                arising
                from the Purchaser’s activities on the mineral property interests
                comprising the Property to the date thereof;
                and

            

    

    

    
      	 	
              (c)

            	
              deliver
                at no cost to the Vendors within 30 calendar days of such termination
                copies of all reports, maps, assay results and other relevant technical
                data compiled by or in the possession of the Purchaser with respect
                to the
                mineral property interests comprising the Property and not theretofore
                already furnished to the Vendors.

            

    

    

    2.9  Deemed
      exercise of the Option.
      At such
      time as the Purchaser has caused the completion of the Affiliate Share Transfer,
      entered into each of the Consulting Arrangements and made each of the required
      maintenance payments in accordance with section “2.2” hereinabove, within the
      Option Period and the time periods as specified in section “2.2”, then the
      Option shall be deemed to have been exercised by the Purchaser, and the
      Purchaser shall have thereby, in accordance with the terms and conditions of
      this Agreement and without any further act required on its behalf, acquired
      an
      undivided 100% legal, beneficial and registerable interest in and to the mineral
      property interests comprising the Property.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Article
      3

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS BY THE VENDORS

    

    3.1  General
      representations, warranties and covenants by the
      Vendors.
      In
      order to induce the Purchaser to enter into and consummate this Agreement,
      the
      Vendors hereby, jointly and severally, represent to, warrant to and covenant
      with the Purchaser, with the intent that the Purchaser will rely thereon in
      entering into this Agreement and in concluding the transactions contemplated
      herein, that, to the best of the knowledge, information and belief of each
      of
      the Vendors, after having made due inquiry:

    

    
      	
            	(a)	
              each
                of the Vendors and/or agents to the Vendors is and will be qualified
                to do
                business in those jurisdictions where it is necessary to fulfill
                each of
                the Vendor’s obligations under this Agreement, and each of the Vendors has
                the full power and authority to enter into this Agreement and any
                agreement or instrument referred to or contemplated by this
                Agreement;

            

    

    

    
      	
            	(b)	
              each
                of the Vendors has the requisite power, authority and capacity to
                fulfill
                the Vendor’s obligations under this
                Agreement;

            

    

    

    
      	
            	(c)	
              the
                execution and delivery of this Agreement and the agreements contemplated
                hereby have been duly authorized by all necessary action on each
                of the
                Vendor’s part;

            

    

    

    
      	
            	(d)	
              this
                Agreement constitutes a legal, valid and binding obligation of each
                of the
                Vendors enforceable against the Vendors in accordance with its terms,
                except as enforcement may be limited by laws of general application
                affecting the rights of creditors;

            

    

    

    
      	 	
              (e)

            	
              prior
                to the Subject Removal Date each of the Vendors will have obtained
                all
                authorizations, approvals, including Regulatory Approval, or waivers
                that
                may be necessary or desirable in connection with the transactions
                contemplated in this Agreement, and other actions by, and have made
                all
                filings with, any and all Regulatory Authorities from whom any such
                authorization, approval or other action is required to be obtained
                or to
                be made in connection with the transactions contemplated herein,
                and all
                such authorizations, approvals and other actions will be in full
                force and
                effect, and all such filings will have been accepted by each of the
                Vendors who will be in compliance with, and have not committed any
                breach
                of, any securities laws, regulations or policies of any Regulatory
                Authority to which either the Vendors or any of the mineral property
                interests comprising the Property may be
                subject;

            

    

    

    
      	
            	(f)	
              except
                for Regulatory Approval of this Agreement by the appropriate Regulatory
                Authorities, there are no other consents, approvals or conditions
                precedent to the performance of this Agreement which have not been
                obtained;

            

    

    

    
      	
            	(g)	
              the
                Vendors are not in breach of any laws, ordinances, statutes, regulations,
                by-laws, orders or decrees to which the Vendors are subject or which
                apply
                to the Vendors;

            

    

    

    
      	
            	(h)	
              no
                proceedings are pending for, and the Vendors are unaware of, any
                basis for
                the institution of any proceedings leading to the placing of any
                of the
                Vendors in bankruptcy or subject to any other laws governing the
                affairs
                of insolvent persons;

            

    

    

    
      	 	
              (i)

            	
              the
                Vendors have not received, nor have the Vendors requested or do the
                Vendors require to receive, any offering memorandum or similar document
                describing the business and affairs of the Purchaser in order to
                assist
                the Vendors in entering into this Agreement and in consummating the
                transactions contemplated
                herein;

            

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    

    
      	
            	(j)	
              except
                as otherwise provided for herein, the Vendors have not retained,
                employed
                or introduced any broker, finder or other person who would be entitled
                to
                a brokerage commission or finder’s fee arising out of the transactions
                contemplated hereby;

            

    

    

    
      	
            	(k)	
              the
                Vendors are not, nor until or at the Closing Date will the Vendors
                be, in
                breach of any provision or condition of, nor have the Vendors done
                or
                omitted to do anything that, with or without the giving of notice
                or lapse
                or both, would constitute a breach of any provision or condition
                of, or
                give rise to any right to terminate or cancel or accelerate the maturity
                of any payment under, any deed of trust, contract, certificate, consent,
                permit, license or other instrument to which either of the Vendors
                is a
                party, by which either of the Vendors is bound or from which any
                of the
                Vendors derives benefit, any judgment, decree, order, rule or regulation
                of any court or governmental authority to which any of the Vendors
                is
                subject, or any statute or regulation applicable to any of the Vendors,
                to
                an extent that, in the aggregate, has a material adverse affect on
                either
                of the Vendors or on any of the mineral property interests comprising
                the
                Property;

            

    

    

    
      	 	
              (l)

            	
              each
                Vendor will give to the Purchaser, within at least five calendar
                days
                prior to the Closing Date, by written notice, particulars
                of:

            

    

    

    
      	 	
              (i)

            	
              each
                occurrence within the Vendor’ knowledge after the Effective Date of this
                Agreement that, if it had occurred before the Effective Date, would
                have
                been contrary to any of the Vendor’s representations or warranties
                contained herein; and

            

    

    

    
      	 	
              (ii)

            	
              each
                occurrence or omission within the Vendor’s knowledge after the Effective
                Date that constitutes a breach of any of the Vendor’s covenants contained
                in this Agreement;

            

    

    

    
      	
            	(m)	
              the
                making of this Agreement and the completion of the transactions
                contemplated hereby and the performance of and compliance with the
                terms
                hereof does not and will not:

            

    

    

    
      	
            	(i)	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of any law, judgment, order, injunction, decree, regulation
                or
                ruling of any court or governmental authority, domestic or foreign,
                to
                which any of the Vendors is subject, or constitute or result in a
                default
                under any agreement, contract or commitment to which any of the Vendors
                is
                a party;

            

    

    

    
      	
            	(ii)	
              give
                to any party the right of termination, cancellation or acceleration
                in or
                with respect to any agreement, contract or commitment to which any
                of the
                Vendors is a party;

            

    

    

    
      	
            	(iii)	
              give
                to any government or governmental authority, or any municipality
                or any
                subdivision thereof, including any governmental department, commission,
                bureau, board or administration agency, any right of termination,
                cancellation or suspension of, or constitute a breach of or result
                in a
                default under, any permit, license, control or authority issued to
                any of
                the Vendors which is necessary or desirable in connection with the
                conduct
                and operations of each Vendor’s business and the ownership or leasing of
                each Vendor’s business assets; or

            

    

    

    
      	
            	(iv)	
              constitute
                a default by any of the Vendors, or any event which, with the giving
                of
                notice or lapse of time or both, might constitute an event of default,
                under any agreement, contract, indenture or other instrument relating
                to
                any indebtedness of any of the Vendors which would give any party
                to that
                agreement, contract, indenture or other instrument the right to accelerate
                the maturity for the payment of any amount payable under that agreement,
                contract, indenture or other
                instrument;

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	
            	(n)	
              neither
                this Agreement nor any other document, certificate or statement furnished
                to the Purchaser by or on behalf of the Vendors in connection with
                the
                transactions contemplated hereby knowingly or negligently contains
                any
                untrue or incomplete statement of material fact or omits to state
                a
                material fact necessary in order to make the statements therein not
                misleading which would likely affect the decision of the Purchaser
                to
                enter into this Agreement; and

            

    

    

    
      	
            	(o)	
              the
                Vendors are not aware of any fact or circumstance which has not been
                disclosed to the Purchaser which should be disclosed in order to
                prevent
                the representations, warranties and covenants contained in this section
                from being misleading or which would likely affect the decision of
                the
                Purchaser to enter into this
                Agreement.

            

    

    

    3.2  Representations,
      warranties and covenants by the Vendors respecting the
      Property.
      In
      order to induce the Purchaser to enter into and consummate this Agreement,
      the
      Vendors hereby, jointly and severally, also represent to, warrant to and
      covenants with the Purchaser, with the intent that the Purchaser will also
      rely
      thereon in entering into this Agreement and in concluding the transactions
      contemplated herein, that, to the best of the knowledge, information and belief
      of each of the Vendors, after having made due inquiry:

    

    
      	 	
              (a)

            	
              the
                Vendors are the legal and beneficial owner of all of the mineral
                property
                interests comprising the Property; the particulars of which mineral
                property interests comprising the Property being more particularly
                described in Schedule “A” which is attached
                hereto;

            

    

    

    
      	 	
              (b)

            	
              the
                Vendors are authorized to hold the right to explore and develop each
                of
                the mineral property interests comprising the Property and all Property
                Rights held by the Vendors in and to the mineral property interests
                comprising the Property;

            

    

    

    
      	 	
              (c)

            	
              the
                Vendors hold all of the mineral property interests comprising the
                Property
                free and clear of all liens, charges and claims of
                others;

            

    

    

    
      	 	
              (d)

            	
              no
                other person, firm or corporation has any written or oral agreement,
                option, understanding or commitment, or any right or privilege capable
                of
                becoming an agreement, for the purchase from the Vendors of any interest
                in and to any of the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (e)

            	
              the
                mineral property interests comprising the Property have been duly
                and
                validly located and recorded in a good and minerlike manner pursuant
                to
                applicable mining laws;

            

    

    

    
      	 	
              (f)

            	
              all
                permits and licenses covering the mineral property interests comprising
                the Property have been duly and validly issued pursuant to applicable
                mining laws and are in good standing by the proper doing and filing
                of
                assessment work and the payment of all fees, taxes and rentals in
                accordance with the requirements of applicable mining laws and the
                performance of all other actions necessary in that
                regard;

            

    

    

    
      	 	
              (g)

            	
              where
                appropriate, the Vendors have insured the mineral property interests
                comprising the Property against loss or damage on a replacement cost
                basis;

            

    

    

    
      	 	
              (h)

            	
              all
                conditions on and relating to the mineral property interests comprising
                the Property and the operations conducted thereon by or on behalf
                of the
                Vendors are in compliance with all applicable laws, regulations or
                orders
                and including, without limitation, all laws relating to environmental
                matters, waste disposal and storage and
                reclamation;

            

    

    

    
      	 	
              (i)

            	
              there
                are no outstanding orders or directions relating to environmental
                matters
                requiring any work, repairs, construction or capital expenditures
                with
                respect to any of the mineral property interests comprising the Property
                and the conduct of the operations related thereto, nor have the Vendors
                received any notice of same;

            

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (j)

            	
              there
                is no adverse claim or challenge against or to the ownership of or
                title
                to any of the mineral property interests comprising the Property
                or which
                may impede the development of any of the mineral interests comprising
                the
                Property, nor, to the best of the knowledge, information and belief
                of
                each of the Vendors, after having made due inquiry, is there any
                basis for
                any potential claim or challenge, and, to the best of the knowledge,
                information and belief of each of the Vendors, after having made
                due
                inquiry, no person has any royalty, net profits or other interests
                whatsoever in any production from any of the mineral property interests
                comprising the Property;

            

    

    

    
      	
            	(k)	
              there
                are no actions, suits, proceedings or investigations (whether or
                not
                purportedly against or on behalf of the Vendors), pending or threatened,
                which may affect, without limitation, the rights of any of the Vendors
                to
                transfer any interest in and to the mineral property interests comprising
                the Property to the Purchaser at law or in equity, or before or by
                any
                federal, state, provincial, municipal or other governmental department,
                commission, board, bureau, agency or instrumentality, domestic or
                foreign,
                and, without limitation, there are no claims or potential claims
                under any
                relevant family relations legislation or other equivalent legislation
                affecting any of the mineral property interests comprising the Property.
                In addition, the Vendors are not now aware of any existing ground
                on which
                any such action, suit or proceeding might be commenced with any reasonable
                likelihood of success;

            

    

    

    
      	 	
              (l)

            	
              the
                Vendors have delivered to the Purchaser all Property Documentation
                in the
                Vendors’ possession or control relating to the mineral property interests
                comprising the Property together with copies of all permits, permit
                applications and applications for exploration and exploitation rights
                respecting any of the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (m)

            	
              the
                Vendors will also deliver, or caused to be delivered, to the Purchaser
                as
                soon as conveniently possible after the Effective Date, however,
                prior to
                the Subject Removal Date, an independent geological report or reports
                respecting the mineral property interests comprising the Property,
                together with, if required, a title opinion or opinions respecting
                the
                mineral property interests comprising the Property, all as addressed
                to
                the Purchaser and prepared in accordance with applicable rules and
                policies, together with such other documentation as the Purchaser
                may
                require in order to seek and obtain Regulatory Approval for each
                of the
                transactions contemplated by this Agreement;
                and

            

    

    

    
      	
            	(n)	
              the
                Vendors are not aware of any fact or circumstance which has not been
                disclosed to the Purchaser which should be disclosed in order to
                prevent
                the representations and warranties contained in this section from
                being
                misleading or which would likely affect the decision of the Purchaser
                to
                enter into this Agreement.

            

    

    

    3.3  Continuity
      of the representations, warranties and covenants by the
      Vendors.
      The
      representations, warranties and covenants by the Vendors contained in this
      Article “3”, or in any certificates or documents delivered pursuant to the
      provisions of this Agreement or in connection with the transactions contemplated
      hereby, will be true at and as of the Closing Date as though such
      representations, warranties and covenants were made at and as of such time.
      Notwithstanding any investigations or inquiries made by the Purchaser or by
      the
      Purchaser’s professional advisors prior to the Closing Date, or the waiver of
      any condition by the Purchaser, the representations, warranties and covenants
      of
      the Vendors contained in this Article “3” shall survive the Closing Date and
      shall continue in full force and effect for a period of one year from the
      Closing Date; provided, however, that the Vendors shall not be responsible
      for
      the breach of any representation, warranty or covenant of the Vendors contained
      herein caused by any act or omission of the Purchaser prior to the Effective
      Date hereof of which the Vendors were unaware or as a result of any action
      taken
      by the Purchaser after the Effective Date. In the event that any of the said
      representations, warranties or covenants are found by a court of competent
      jurisdiction to be incorrect and such incorrectness results in any loss or
      damage sustained directly or indirectly by the Purchaser, then the Vendors
      will
      pay the amount of such loss or damage to the Purchaser within 30 calendar days
      of receiving notice of judgment therefor; provided, however, that the Purchaser
      will not be entitled to make any claim unless the loss or damage suffered may
      exceed the amount of U.S. $1,000.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    

    

    Article
      4

    WARRANTIES,
      REPRESENTATIONS AND COVENANTS BY THE PURCHASER

    

    4.1  Warranties,
      representations and covenants by the Purchaser.
      In
      order to induce the Vendors to enter into and consummate this Agreement, the
      Purchaser hereby warrants to, represents to and covenants with each of the
      Vendors, with the intent that the Vendors will rely thereon in entering into
      this Agreement and in concluding the transactions contemplated herein, that,
      to
      the best of the knowledge, information and belief of the Purchaser, after having
      made due inquiry:

    

    
      	 	
              (a)

            	
              the
                Purchaser is a corporation duly incorporated under the laws of the
                State
                of Nevada, U.S.A., is validly existing and is in good standing with
                respect to all statutory filings required by the Nevada
                Revised Statutes;

            

    

    

    
      	 	
              (b)

            	
              the
                Purchaser is qualified to do business in those jurisdictions where
                it is
                necessary to fulfill the Purchaser’s obligations under this Agreement, and
                the Purchaser has the full power and authority to enter into this
                Agreement and any agreement or instrument referred to or contemplated
                by
                this Agreement;

            

    

    

    
      	 	
              (c)

            	
              the
                execution and delivery of this Agreement and the agreements contemplated
                hereby has been duly authorized by all necessary corporate action
                on the
                Purchaser’s part;

            

    

    

    
      	 	
              (d)

            	
              prior
                to the Subject Removal Date the Purchaser will have obtained all
                authorizations, approvals, including Regulatory Approval, or waivers
                that
                may be necessary or desirable in connection with the transactions
                contemplated in this Agreement, and other actions by, and have made
                all
                filings with, any and all Regulatory Authorities from whom any such
                authorization, approval or other action is required to be obtained
                or to
                be made in connection with the transactions contemplated herein,
                and all
                such authorizations, approvals and other actions will be in full
                force and
                effect, and all such filings will have been accepted by the Purchaser
                who
                will be in compliance with, and have not committed any breach of,
                any
                securities laws, regulations or policies of any Regulatory Authority
                to
                which the Purchaser may be subject;

            

    

    

    
      	 	
              (e)

            	
              except
                for Regulatory Approval of this Agreement by the appropriate Regulatory
                Authorities, there are no other consents, approvals or conditions
                precedent to the performance of this Agreement which have not been
                obtained;

            

    

    

    
      	 	
              (f)

            	
              this
                Agreement constitutes a legal, valid and binding obligation of the
                Purchaser enforceable against the Purchaser in accordance with its
                terms,
                except as enforcement may be limited by laws of general application
                affecting the rights of creditors;

            

    

    

    
      	 	
              (g)

            	
              no
                proceedings are pending for, and the Purchaser is unaware of, any
                basis
                for the institution of any proceedings leading to the dissolution
                or
                winding up of the Purchaser or the placing of the Purchaser in bankruptcy
                or subject to any other laws governing the affairs of insolvent
                companies;

            

    

    

    
      	 	
              (h)

            	
              there
                is no basis for and there are no actions, suits, judgments, investigations
                or proceedings outstanding or pending or, to the best of the knowledge,
                information and belief of the Purchaser, after making due inquiry,
                threatened against or affecting the Purchaser at law or in equity
                or
                before or by any federal, state, municipal or other governmental
                department, commission, board, bureau or
                agency;

            

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
            	(i)	
              the
                Purchaser is not in breach of any laws, ordinances, statutes, regulations,
                by-laws, orders or decrees to which the Purchaser is subject or which
                apply to the Purchaser;

            

    

    

    
      	 	
              (j)

            	
              the
                Purchaser will save the Vendors harmless in respect of all claims,
                liabilities and expenses arising out of the Purchaser’s activities on any
                of the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (k)

            	
              the
                Purchaser will do all work on the Property in a good and minerlike
                fashion
                and in accordance with all applicable laws, regulations, orders and
                ordinances of any governmental
                authority;

            

    

    

    
      	 	
              (l)

            	
              the
                Purchaser is not in breach of any provision or condition of, nor
                has the
                Purchaser done or omitted anything that, with or without the giving
                of
                notice or lapse or both, would constitute a breach of any provision
                or
                condition of, or give rise to any right to terminate or cancel or
                accelerate the maturity of any payment under, any deed of trust,
                contract,
                certificate, consent, permit, license or other instrument to which
                the
                Purchaser is a party, by which the Purchaser is bound or from which
                the
                Purchaser derives benefit, any judgment, decree, order, rule or regulation
                of any court or governmental authority to which the Purchaser is
                subject,
                or any statute or regulation applicable to the Purchaser, to an extent
                that, in the aggregate, has a material adverse affect on the
                Purchaser;

            

    

    

    
      	 	
              (m)

            	
              the
                Purchaser will give to the Vendors, within at least five calendar
                days
                prior to the Closing Date (as hereinafter defined), by written notice,
                particulars of:

            

    

    

    
      	 	
              (i)

            	
              each
                occurrence within the Purchaser’s knowledge after the Effective Date of
                this Agreement that, if it had occurred before the Effective Date,
                would
                have been contrary to any of the Purchaser’s representations or warranties
                contained herein; and

            

    

    

    
      	 	
              (ii)

            	
              each
                occurrence or omission within the Purchaser’s knowledge after the
                Effective Date that constitutes a breach of any of the Purchaser’s
                covenants contained in this
                Agreement;

            

    

    

    
      	 	
              (n)

            	
              the
                making of this Agreement and the completion of the transactions
                contemplated hereby and the performance of and compliance with the
                terms
                hereof does not and will not:

            

    

    

    
      	 	 	
              (i)

            	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of the incorporation documents of the
                Purchaser;

            

    

    

    
      	 	 	
              (ii)

            	
              conflict
                with or result in a breach of or violate any of the terms, conditions
                or
                provisions of any law, judgment, order, injunction, decree, regulation
                or
                ruling of any court or governmental authority, domestic or foreign,
                to
                which the Purchaser is subject, or constitute or result in a default
                under
                any agreement, contract or commitment to which the Purchaser is a
                party;

            

    

    

    
      	 	 	
              (iii)

            	
              give
                to any party the right of termination, cancellation or acceleration
                in or
                with respect to any agreement, contract or commitment to which the
                Purchaser is a party;

            

    

    

    
      	 	 	
              (iv)

            	
              give
                to any government or governmental authority, or any municipality
                or any
                subdivision thereof, including any governmental department, commission,
                bureau, board or administration agency, any right of termination,
                cancellation or suspension of, or constitute a breach of or result
                in a
                default under, any permit, license, control or authority issued to
                the
                Purchaser which is necessary or desirable in connection with the
                conduct
                and operations of the Purchaser’s business and the ownership or leasing of
                the Purchaser’s business assets; or

            

    

    

    
      	 	 	
              (v)

            	
              constitute
                a default by the Purchaser or any event which, with the giving of
                notice
                or lapse of time or both, might constitute an event of default, under
                any
                agreement, contract, indenture or other instrument relating to any
                indebtedness of the Purchaser which would give any party to that
                agreement, contract, indenture or other instrument the right to accelerate
                the maturity for the payment of any amount payable under that agreement,
                contract, indenture or other
                instrument;

            

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              (o)

            	
              neither
                this Agreement nor any other document, certificate or statement furnished
                to the Vendors by or on behalf of the Purchaser in connection with
                the
                transactions contemplated hereby knowingly or negligently contains
                any
                untrue or incomplete statement of material fact or omits to state
                a
                material fact necessary in order to make the statements therein not
                misleading; and

            

    

    

    
      	
            	(p)	
              the
                Purchaser is not aware of any fact or circumstance which has not
                been
                disclosed to the Vendors which should be disclosed in order to prevent
                the
                representations, warranties and covenants contained in this section
                from
                being misleading or which would likely affect the decision of the
                Vendors
                to enter into this Agreement.

            

    

    

    4.2  Continuity
      of the representations, warranties and covenants by the
      Purchaser.
      The
      representations, warranties and covenants of the Purchaser contained in this
      Article “4”, or in any certificates or documents delivered pursuant to the
      provisions of this Agreement or in connection with the transactions contemplated
      hereby, will be true at and as of the Closing Date as though such
      representations, warranties and covenants were made at and as of such time.
      Notwithstanding any investigations or inquiries made by the Vendors or by the
      Vendors’ professional advisors prior to the Closing Date, or the waiver of any
      condition by the Vendors, the representations, warranties and covenants of
      the
      Purchaser contained in this Article “4” shall survive the Closing Date and shall
      continue in full force and effect for a period of one year from the Closing
      Date; provided, however, that the Purchaser shall not be responsible for the
      breach of any representation, warranty or covenant of the Purchaser contained
      herein caused by any act or omission of the Vendors prior to the Effective
      Date
      hereof of which the Purchaser was unaware or as a result of any action taken
      by
      the Vendors after the Effective Date. In the event that any of the said
      representations, warranties or covenants are found by a court of competent
      jurisdiction to be incorrect and such incorrectness results in any loss or
      damage sustained directly or indirectly by the Vendors, then the Purchaser
      will
      pay the amount of such loss or damage to the Vendors within 30 calendar days
      of
      receiving notice of judgment therefor; provided, however, that the Vendors
      will
      not be entitled to make any claim unless the loss or damage suffered may exceed
      the amount of U.S. $1,000.

    

    

    Article
      5

    CONDITIONS
      PRECEDENT TO CLOSING

    

    5.1  Parties’
      conditions precedent prior to the Closing Date.
      All of
      the rights, duties and obligations of each of the Parties hereto under this
      Agreement are subject to the following conditions precedent for the exclusive
      benefit of each of the Parties fulfilled in all material aspects in the
      reasonable opinion of each of the Parties or to be waived by each or any of
      the
      Parties, as the case may be, as soon as possible after the Effective Date,
      however, unless specifically indicated as otherwise, not later than 120 calendar
      days after the Effective Date and not later than 10 calendar days prior to
      the
      Closing Date (such date being the “Subject
      Removal Date”
      herein):

    

    
      	 	
              (a)

            	
              receipt
                of all necessary approvals, including Regulatory Approval, from all
                Regulatory Authorities having jurisdiction over the Parties hereto
                and the
                transactions contemplated by this Agreement, to the terms and conditions
                of and the transactions contemplated by this Agreement;
                and

            

    

    

    
      	 	
              (b)

            	
              if
                required, shareholders of the Purchaser passing an ordinary resolution
                or,
                where required, a special resolution, approving the terms and conditions
                of this Agreement and all of the transactions contemplated hereby
                or, in
                the alternative, shareholders of the Purchaser holding 100% of the
                issued
                shares of the Purchaser providing written consent resolutions evidencing
                their approval to the terms and conditions of this Agreement and
                all of
                the transactions contemplated
                hereby.

            

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
       

        5.2    
          Parties’ waiver of conditions precedent.
          The
          conditions precedent set forth in section “5.1” hereinabove are for the
          exclusive benefit of each of the Parties hereto and may be waived by each
          or any
          of the Parties in writing and in whole or in part at any time, however,
          not
          later than the Subject Removal Date.

      

    

    

    5.3  The
      Vendors’ conditions precedent.
      The
      rights, duties and obligations of the Vendors under this Agreement are also
      subject to the following conditions precedent for the exclusive benefit of
      the
      Vendors fulfilled in all material aspects in the reasonable opinion of the
      Vendors or to be waived by the Vendors as soon as possible after the Effective
      Date, however, unless specifically indicated as otherwise, not later than 10
      calendar days prior to the Subject Removal Date:

    

    
      	 	
              (a)

            	
              the
                representations, warranties and covenants of the Purchaser contained
                herein shall be true and correct as of and on the Subject Removal
                Date;

            

    

    

    
      	 	
              (b)

            	
              the
                Purchaser shall have complied with all warranties, representations,
                covenants and agreements herein agreed to be performed or caused
                to be
                performed by the Purchaser on or before the Subject Removal
                Date;

            

    

    

    
      	 	
              (c)

            	
              the
                Purchaser will have obtained all authorizations, approvals, including
                Regulatory Approval, or waivers that may be necessary or desirable
                in
                connection with the transactions contemplated in this Agreement,
                and other
                actions by, and have made all filings with, any and all Regulatory
                Authorities from whom any such authorization, approval or other action
                is
                required to be obtained or to be made in connection with the transactions
                contemplated herein, and all such authorizations, approvals and other
                actions will be in full force and effect, and all such filings will
                have
                been accepted by the Purchaser who will be in compliance with, and
                have
                not committed any breach of, any securities laws, regulations or
                policies
                of any Regulatory Authority to which the Purchaser may be
                subject;

            

    

    

    
      	 	
              (d)

            	
              all
                matters which, in the opinion of counsel for the Vendors, are material
                in
                connection with the transactions contemplated by this Agreement shall
                be
                subject to the favourable opinion of such counsel, and all relevant
                records and information shall be supplied to such counsel for that
                purpose;

            

    

    

    
      	 	
              (e)

            	
              no
                material loss or destruction of or damage to the Purchaser shall
                have
                occurred since the Effective Date;

            

    

    

    
      	 	
              (f)

            	
              no
                action or proceeding at law or in equity shall be pending or threatened
                by
                any person, company, firm, governmental authority, regulatory body
                or
                agency to enjoin or prohibit:

            

    

    

    
      	 	 	
              (i)

            	
              the
                purchase or transfer of any interest in and to the mineral property
                interests comprising the Property as contemplated by this Agreement
                or the
                right of the Vendors to dispose of any interest in and to any of
                the
                mineral property interests comprising the Property;
                or

            

    

    

    
      	 	 	
              (ii)

            	
              the
                right of the Purchaser to conduct the Purchaser’s operations and carry on,
                in the normal course, the Purchaser’s business and operations as the
                Purchaser has carried on in the
                past;

            

    

    

    
      	 	
              (g)

            	
              the
                delivery to the Vendors by the Purchaser, on a confidential basis,
                of the
                following documentation and
                information:

            

    

    

    
      	 	
              (i)

            	
              a
                copy of all material contracts, agreements, reports and title information
                of any nature respecting the Purchaser and each of its subsidiaries,
                if
                any; and

            

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (ii) details
      of any lawsuits, claims or potential claims relating to the Purchaser or to
      any
      of the Purchaser’s subsidiaries, if any, of which the Purchaser is aware and the
      Vendors is unaware;

    

    
      	 	
              (h)

            	
              the
                Purchaser will, for a period of not less than five calendar days
                during
                the period commencing on the Effective Date and continuing until
                not later
                than 30 calendar days prior to the Subject Removal Date, during normal
                business hours:

            

    

    

    
      	 	 	
              (i)

            	
              make
                available for inspection by the solicitors, auditors and representatives
                of the Vendors, at such location as is appropriate, all of the Purchaser’s
                and each of the Purchaser’s subsidiaries’, if any, books, records,
                contracts, documents, correspondence and other written materials,
                and
                afford such persons every reasonable opportunity to make copies thereof
                and take extracts therefrom at the sole cost of the Vendors; provided
                such
                persons do not unduly interfere in the operations of the Purchaser
                or any
                of the Purchaser’s subsidiaries, if
                any;

            

    

    

    
      	 	 	
              (ii)

            	
              authorize
                and permit such persons at the risk and the sole cost of the Vendors,
                and
                only if such persons do not unduly interfere in the operations of
                the
                Purchaser and each of the Purchaser’s subsidiaries, if any, to attend at
                all of their places of business and operations to observe the conduct
                of
                their businesses and operations, inspect their properties and assets
                and
                make physical counts of their inventories, shipments and deliveries;
                and

            

    

    

    
      	 	 	
              (iii)

            	
              require
                the Purchaser’s and each of the Purchaser’s subsidiaries’, if any,
                management personnel to respond to all reasonable inquiries concerning
                the
                Purchaser’s and each of the Purchaser’s subsidiaries’, if any, business
                assets or the conduct of their businesses relating to their liabilities
                and obligations; and

            

    

    

    
      	 	
              (i)

            	
              the
                completion by the Vendors and by the Vendors’ professional advisors of a
                thorough due diligence and operations review of the businesses and
                operations of the Purchaser and each of the Purchaser’s subsidiaries, if
                any, to the sole and absolute satisfaction of the
                Vendors.

            

    

    

    5.4  The
      Vendors’ waiver of conditions precedent.
      The
      conditions precedent set forth in section “5.3” hereinabove are for the
      exclusive benefit of the Vendors and may be waived by the Vendors in writing
      and
      in whole or in part at any time after the Effective Date, however, unless
      specifically indicated as otherwise, not later than 10 calendar days prior
      to
      the Subject Removal Date.

    

    5.5  The
      Purchaser’s conditions precedent.
      The
      rights, duties and obligations of the Purchaser under this Agreement are also
      subject to the following conditions precedent for the exclusive benefit of
      the
      Purchaser fulfilled in all material aspects in the reasonable opinion of the
      Purchaser or to be waived by the Purchaser as soon as possible after the
      Effective Date, however, unless specifically indicated as otherwise, not later
      than 10 calendar days prior to the Subject Removal Date:

    

    
      	 	
              (a)

            	
              the
                representations, warranties and covenants of the Vendors contained
                herein
                shall be true and correct as of and on the Subject Removal
                Date;

            

    

    

    
      	 	
              (b)

            	
              the
                Vendors shall have complied with all warranties, representations,
                covenants and agreements herein agreed to be performed or caused
                to be
                performed by the Vendors on or before the Subject Removal
                Date;

            

    

    

    
      	 	
              (c)

            	
              the
                Vendors will have obtained all authorizations, approvals, including
                Regulatory Approval, or waivers that may be necessary or desirable
                in
                connection with the transactions contemplated in this Agreement,
                and other
                actions by, and have made all filings with, any and all Regulatory
                Authorities from whom any such authorization, approval or other action
                is
                required to be obtained or to be made in connection with the transactions
                contemplated herein, and all such authorizations, approvals and other
                actions will be in full force and effect, and all such filings will
                have
                been accepted by the Vendors who will be in compliance with, and
                have not
                committed any breach of, any securities laws, regulations or policies
                of
                any Regulatory Authority to which the Vendors may be
                subject;

            

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    

    
      	 	
              (d)

            	
              all
                matters which, in the opinion of counsel for the Purchaser, are material
                in connection with the transactions contemplated by this Agreement
                shall
                be subject to the favourable opinion of such counsel, and all relevant
                records and information shall be supplied to such counsel for that
                purpose;

            

    

    

    
      	 	
              (e)

            	
              no
                material loss or destruction of or damage to any of the mineral property
                interests comprising the Property shall have occurred since the Effective
                Date;

            

    

    

    
      	 	
              (f)

            	
              no
                action or proceeding at law or in equity shall be pending or threatened
                by
                any person, company, firm, governmental authority, regulatory body
                or
                agency to enjoin or prohibit:

            

    

    

    
      	 	 	
              (i)

            	
              the
                sale or transfer of any interest in and to the mineral property interests
                comprising the Property as contemplated by this Agreement or the
                right of
                the Purchaser to acquire any interest in and to any of the mineral
                property interests comprising the Property;
                or

            

    

    

    
      	 	 	
              (ii)

            	
              the
                right of the Purchaser to conduct the Purchaser’s operations and carry on,
                in the normal course, the Purchaser’s business and operations as the
                Purchaser has carried on in the
                past;

            

    

    

    
      	 	
              (g)

            	
              the
                delivery to the Purchaser by the Vendors, on a confidential basis,
                of all
                Property Documentation and including, without
                limitation,:

            

    

    

    
      	 	
              (i)

            	
              a
                copy of all material contracts, agreements, reports and title information
                of any nature respecting any of the mineral interests comprising
                the
                Property; and

            

    

    

    
      	 	
              (ii)

            	
              details
                of any lawsuits, claims or potential claims relating to any of the
                mineral
                interests comprising the Property of which the Vendors are aware
                and the
                Purchaser is unaware;

            

    

    

    
      	 	
              (h)

            	
              the
                delivery by the Vendors to the Purchaser of an opinion of counsel
                for the
                Vendors, in a form satisfactory to the Purchaser’s counsel, acting
                reasonably, dated as at the date of delivery, to the effect
                that:

            

    

    

    
      	 	
              (i)

            	
              the
                Vendors are the legal and beneficial owner of all of the mineral
                property
                interests comprising the Property prior to the completion of the
                transactions contemplated by this
                Agreement;

            

    

    

    
      	 	
              (ii)

            	
              the
                Vendor holds the right to explore and develop each of the mineral
                property
                interests comprising the Property and all Property Rights held by
                the
                Vendors in and to the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (iii)

            	
              the
                Vendors hold all of the mineral property interests comprising the
                Property
                free and clear of all liens, charges and claims of
                others;

            

    

    

    
      	 	
              (iv)

            	
              the
                mineral property interests comprising the Property have been duly
                and
                validly located and recorded in a good and minerlike manner pursuant
                to
                all applicable laws and are in good
                standing;

            

    

    

    
      	 	
              (v)

            	
              based
                on actual knowledge and belief, such counsel knows of no adverse
                claim or
                challenge against or to the ownership of or title to any of the mineral
                property interests comprising the Property or which may impede their
                development, and, based on actual knowledge and belief, such counsel
                is
                not aware of any basis for any potential claim or challenge, and,
                based on
                actual knowledge and belief, such counsel knows of no outstanding
                agreements or options to acquire or purchase any portion of any of
                the
                mineral property interests comprising the Property, and no person
                has any
                royalty, net profits or other interest whatsoever in any production
                from
                any of the mineral property interests comprising the
                Property;

            

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    

    
      	 	
              (vi)

            	
              based
                on actual knowledge and belief, such counsel knows of no claims,
                judgments, actions, suits, litigation, proceedings or investigations,
                actual, pending or threatened, against any of the Vendors which might
                materially affect any of the mineral property interests comprising
                the
                Property or which could result in any material liability to either
                of the
                Vendors or to any of the mineral property interests comprising the
                Property; and

            

    

    

    
      	 	
              (vii)

            	
              as
                to all other legal matters of a like nature pertaining to the Vendors
                and
                the mineral property interests comprising the Property and to the
                transactions contemplated hereby as the Purchaser or the Purchaser’s
                counsel may reasonably require; and

            

    

    

    
      	 	
              (i)

            	
              the
                completion by the Purchaser and by the Purchaser’s professional advisors
                of a thorough due diligence and operations review of the mineral
                property
                interests comprising the Property, of the business and operations
                of the
                Vendors and of the transferability of the mineral property interests
                comprising the Property as contemplated by this Agreement, to the
                sole and
                absolute satisfaction of the
                Purchaser.

            

    

    

    5.6  Purchaser’s
      waiver of conditions precedent.
      The
      conditions precedent set forth in section “5.5” hereinabove are for the
      exclusive benefit of the Purchaser and may be waived by the Purchaser in writing
      and in whole or in part at any after the Effective Date, however, unless
      specifically indicated as otherwise, not later than 10 calendar days prior
      to
      the Subject Removal Date.

    

    

    Article
      6

    CLOSING
      AND EVENTS OF CLOSING

    

    6.1  Closing
      and Closing Date.
      Subject
      to the prior and due and complete exercise of by the Purchaser of the Option
      in
      accordance with Article “2” hereinabove, the closing (the “Closing”)
      of the
      within purchase and delivery of an undivided 100% interest in and to the mineral
      property interests comprising the Property, as contemplated in the manner as
      set
      forth in Article “2” hereinabove, together with all of the transactions
      contemplated by this Agreement, shall occur on the day which is five business
      days following the due and complete exercise of the Option by the Purchaser
      in
      accordance with Article “2” hereinabove (the “Closing
      Date”),
      or on
      such earlier or later Closing Date as may be agreed to in advance and in writing
      by each of the Parties hereto, and will be closed at the offices of Lang
      Michener LLP, Lawyers - Patent & Trade Mark Agents, located at 1500 Royal
      Centre, 1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E
      4N7,
      counsel for the Purchaser herein, at 2:00 p.m. (Vancouver time) on the Closing
      Date.

    

    6.2  Latest
      Closing Date.
      If the
      Closing Date in respect of the due and complete exercise of the Option by the
      Purchaser has not occurred within 120 calendar days from the Effective Date
      then
      this Agreement will be terminated and unenforceable unless the Parties hereto
      agree in writing to grant an extension of such Closing Date.

    

    6.3  Documents
      to be delivered by the Vendors prior to the Closing
      Date.
      Subject
      to the prior and due and complete exercise of by the Purchaser of the Option
      in
      accordance with Article “2” hereinabove, and not later than five calendar days
      prior to the Closing Date and in addition to the documentation which is required
      by the agreements and conditions precedent which are set forth in Articles
“2”
and “5” hereinabove, the Vendors shall also execute and deliver, or cause to be
      delivered, to the Escrow Agent all such other documents, resolutions and
      instruments as may be necessary, in the opinion of counsel for the Purchaser,
      acting reasonably, to complete all of the transactions contemplated by this
      Agreement and including, without limitation, the necessary transfer of an
      undivided 100% legal, beneficial and registerable interest in and to each of
      the
      mineral property interests comprising the Property to the Purchaser (or, at
      the
      sole and absolute discretion of the Purchaser, to such other entity or
      subsidiary as may be determined by the Purchaser prior to the Closing Date)
      free
      and clear of all liens, charges and encumbrances, and in particular including,
      but not being limited to, the following materials:

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    

    
      	 	
              (a)

            	
              all
                documentation as may be necessary and as may be required by the counsel
                for the Purchaser, acting reasonably, to ensure that an undivided
                100%
                legal, beneficial and registerable interest in and to each of the
                mineral
                property interests comprising the Property have been duly transferred,
                assigned and are registerable in the name of and for the benefit
                of the
                Purchaser (or, at the sole and absolute discretion of the Purchaser,
                to
                such other entity or subsidiary as may be determined by the Purchaser)
                under all applicable laws;

            

    

    

    
      	 	
              (b)

            	
              all
                necessary deeds, conveyances, bills of sale, assurances, transfers,
                assignments and consents, including all necessary consents and approvals,
                and any other documents necessary or reasonably required to effectively
                transfer an undivided 100% legal, beneficial and registerable interest
                in
                and to each of the mineral property interests comprising the Property
                to
                the Purchaser (or, at the sole and absolute discretion of the Purchaser,
                to such other entity or subsidiary as may be determined by the Purchaser)
                with good and marketable title, free and clear of all mortgages,
                liens,
                charges, pledges, claims, security interests or encumbrances
                whatsoever;

            

    

    

    
      	 	
              (c)

            	
              all
                necessary consents and approvals in writing to the completion of
                the
                transactions contemplated herein and including, without limitation,
                Regulatory Approval from all Regulatory Authorities having jurisdiction
                over any of the Vendors or any of the mineral property interests
                comprising the Property;

            

    

    

    
      	 	
              (d)

            	
              a
                certificate of each of the Vendors, dated as at the Closing Date,
                acceptable in form to counsel for the Purchaser, acting reasonably,
                certifying that the representations, warranties, covenants and agreements
                of each of the Vendors contained in this Agreement are true and correct
                in
                all respects as of the Closing Date as if made by the Vendors on
                the
                Closing Date;

            

    

    

    
      	 	
              (e)

            	
              an
                opinion of counsel for the Vendors, dated as at the Closing Date
                and
                addressed to the Purchaser and the Purchaser’s counsel, in form and
                substance satisfactory to the Purchaser’s counsel, acting reasonably, to
                the effect that:

            

    

    

    
      	 	
              (i)

            	
              the
                Vendors are the legal and beneficial owner of all of the mineral
                property
                interests comprising the Property prior to the completion of the
                transactions contemplated by this
                Agreement;

            

    

    

    
      	 	
              (ii)

            	
              the
                Vendors hold the right to explore and develop each of the mineral
                property
                interests comprising the Property and all Property Rights held by
                the
                Vendors in and to the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (iii)

            	
              the
                Vendors hold all of the mineral property interests comprising the
                Property
                free and clear of all liens, charges and claims of
                others;

            

    

    

    
      	 	
              (iv)

            	
              the
                mineral property interests comprising the Property have been duly
                and
                validly located and recorded in a good and minerlike manner pursuant
                to
                all applicable laws and are in good
                standing;

            

    

    

    
      	 	
              (v)

            	
              all
                necessary steps have been taken by the Vendors to permit the transfer
                of
                an undivided 100% legal, beneficial and registerable interest in
                and to
                each of the mineral property interests comprising the Property to
                the
                Purchaser (or, at the sole and absolute discretion of the Purchaser,
                to
                such other entity or subsidiary as may be determined by the Purchaser)
                with good and marketable title, free and clear of all mortgages,
                liens,
                charges, pledges, claims, security interests or encumbrances
                whatsoever;

            

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (vi)

            	
              based
                on actual knowledge and belief, such counsel knows of no adverse
                claim or
                challenge against or to the ownership of or title to any of the mineral
                property interests comprising the Property or which may impede their
                development, and, based on actual knowledge and belief, such counsel
                is
                not aware of any basis for any potential claim or challenge, and,
                based on
                actual knowledge and belief, such counsel knows of no outstanding
                agreements or options to acquire or purchase any portion of any of
                the
                mineral property interests comprising the Property, and no person
                has any
                royalty, net profits or other interest whatsoever in any production
                from
                any of the mineral property interests comprising the
                Property;

            

    

    

    
      	 	
              (vii)

            	
              based
                on actual knowledge and belief, such counsel knows of no claims,
                judgments, actions, suits, litigation, proceedings or investigations,
                actual, pending or threatened, against any of the Vendors which might
                materially affect any of the mineral property interests comprising
                the
                Property or which could result in any material liability to either
                of the
                Vendors or to any of the mineral property interests comprising the
                Property; and

            

    

    

    
      	 	
              (viii)

            	
              as
                to all other legal matters of a like nature pertaining to the Vendors
                and
                the mineral property interests comprising the Property and to the
                transactions contemplated hereby as the Purchaser or the Purchaser’s
                counsel may reasonably require; and

            

    

    

    
      	 	
              (f)

            	
              any
                remaining Property Documentation;
                and

            

    

    

    
      	 	
              (g)

            	
              all
                such other documents and instruments as the Purchaser and the Purchaser’s
                counsel may reasonably require.

            

    

    

    6.4  Documents
      to be delivered by the Purchaser prior to the Closing
      Date.
      Subject
      to the prior and due and complete exercise of by the Purchaser of the Option
      in
      accordance with Article “2” hereinabove, and not later than five calendar days
      prior to the Closing Date and in addition to the documentation which is required
      by the agreements and conditions precedent which are set forth in Articles
“2”
and “5” hereinabove, the Purchaser shall also execute and deliver, or cause to
      be delivered, to the Escrow Agent all such other documents, resolutions and
      instruments as are necessary, in the opinion of counsel for the Vendors, acting
      reasonably, to complete all of the transactions contemplated by this Agreement
      and including, without limitation, each of the Affiliate Share Transfer,
      Consulting Arrangements and maintenance payments hereunder, and effectively
      accepting the transfer to the Purchaser (or, at the sole and absolute discretion
      of the Purchaser, to such other entity or subsidiary as may be determined by
      the
      Purchaser prior to the Closing Date) of an undivided 100% legal, beneficial
      and
      registerable interest in and to the mineral property interests comprising the
      Property free and clear of all liens, charges and encumbrances, and in
      particular including, but not being limited to, the following
      materials:

    

    
      	 	
              (a)

            	
              a
                Closing agenda;

            

    

    

    
      	 	
              (b)

            	
              if
                required, a certified copy of an ordinary resolution or, where required,
                a
                special resolution, of the shareholders of the Purchaser approving
                the
                terms and conditions of this Agreement and all of the transactions
                contemplated hereby or, in the alternative, shareholders of the Purchaser
                holding 100% of the issued shares of the Purchaser providing written
                consent resolutions evidencing their approval to the terms and conditions
                of this Agreement and all of the transactions contemplated
                hereby;

            

    

    

    
      	 	
              (c)

            	
              a
                certified copy of the resolutions of the directors of the Purchaser
                providing for the approval of the terms and conditions of this Agreement
                and all of the transactions contemplated
                hereby;

            

    

    

    
      	 	
              (d)

            	
              all
                necessary consents and approvals in writing to the completion of
                the
                transactions contemplated herein and including, without limitation,
                Regulatory Approval from all Regulatory Authorities having jurisdiction
                over the Purchaser;

            

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (e)

            	
              a
                certificate of an officer of the Purchaser, dated as at the Closing
                Date,
                acceptable in form to counsel for the Vendors, acting reasonably,
                certifying that the representations, warranties, covenants and agreements
                of the Purchaser contained in this Agreement are true and correct
                in all
                respects as of the Closing Date as if made by the Purchaser on the
                Closing
                Date;

            

    

    

    
      	 	
              (f)

            	
              written
                evidence and confirmation, to the sole and absolute satisfaction
                of the
                Vendors, acting reasonably, of the prior due and complete exercise
                of the
                Option by the Purchaser and in particular including, without limitation,
                the completion of the Affiliate Share Transfer and any required Consulting
                Arrangements together with the payment of all Property maintenance
                payments prior to Closing; and

            

    

    

    
      	 	
              (g)

            	
              all
                such other documents and instruments as the Vendors and the Vendors’
                counsel may reasonably require.

            

    

    

    

    Article
      7

    APPOINTMENT
      OF ESCROW AGENT AND TRANSFER DOCUMENTS

    

    7.1  Appointment
      of Escrow Agent.
      The
      Parties hereto hereby acknowledge and appoint the Escrow Agent as escrow agent
      herein.

    

    7.2  Escrow
      of Transfer Documents.
      Subject
      to and in accordance with the terms and conditions hereof and the requirements
      of Articles “2”, “5” and “6” hereinabove, and without in any manner limiting the
      obligations of each of the Parties hereto as contained therein and hereinabove,
      it is hereby acknowledged and confirmed by the Parties hereto that each of
      the
      Parties will execute, deliver, or cause to be delivered, all such documentation
      as may be required by the requirements of Articles “2”, “5” and “6” hereinabove
      (herein, collectively, the “Transfer
      Documents”)
      and
      deposit the same with the Escrow Agent, or with such other mutually agreeable
      escrow agent, together with a copy of this Agreement, there to be held in escrow
      for release by the Escrow Agent to the Parties in accordance with the strict
      terms and provisions of Articles “2” and “6” hereinabove.

    

    7.3  Resignation
      of Escrow Agent.
      The
      Escrow Agent may resign from its duties and responsibilities if it gives each
      of
      the Parties hereto three calendar days’ written notice in advance. Upon receipt
      of notice of the Escrow Agent’s intention to resign the Parties shall, within
      three calendar days, select a replacement escrow agent and jointly advise the
      Escrow Agent in writing to deliver the Transfer Documents to the replacement
      escrow agent. If the Parties fail to agree on a replacement escrow agent within
      three calendar days of such notice, the replacement escrow agent shall be
      selected by a Judge of the Supreme Court of the Province of British Columbia
      upon application by any Party hereto. The Escrow Agent shall continue to be
      bound by this Agreement until the replacement escrow agent has been selected
      and
      the Escrow Agent receives and complies with the joint instructions of the
      Parties to deliver the Transfer Documents to the replacement escrow agent.
      The
      Parties agree to enter into an escrow agreement substantially in the same form
      of this Agreement with the replacement escrow agent.

    

    7.4  Instructions
      to Escrow Agent.
      Instructions given to the Escrow Agent pursuant to this Agreement shall be
      given
      by duly authorized signatories of the respective Parties hereto.

    

    7.5  No
      other duties or obligations.
      The
      Escrow Agent shall have no duties or obligations other than those specifically
      set forth in this Article.

    

    7.6  No
      obligation to take legal action.
      The
      Escrow Agent shall not be obligated to take any legal action hereunder which
      might, in its judgment, involve any expense or liability unless it shall have
      been furnished with a reasonable indemnity by all of the Parties hereto together
      with such other third parties as the Escrow Agent may require in its sole and
      absolute discretion.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    7.7  Not
      bound to any other agreements.
      The
      Escrow Agent is not bound in any way by any other contract or agreement between
      the Parties hereto whether or not it has knowledge thereof or of its terms
      and
      conditions and its only duty, liability and responsibility shall be to hold
      and
      deal with the Transfer Documents as herein directed.

    

    7.8  Notice.
      The
      Escrow Agent shall be entitled to assume that any notice and evidence received
      by it pursuant to these instructions from anyone has been duly executed by
      the
      Party by whom it purports to have been signed and that the text of any notice
      and evidence is accurate and the truth. The Escrow Agent shall not be obliged
      to
      inquire into the sufficiency or authority of the text or any signatures
      appearing on such notice or evidence.

    

    7.9  Indemnity.
      The
      Parties hereto, jointly and severally, covenant and agree to indemnify the
      Escrow Agent and to hold it harmless against any loss, liability or expense
      incurred, without negligence or bad faith on its part, arising out of or in
      connection with the administration of its duties hereunder and including,
      without limitation, the costs and expenses of defending itself against any
      claim
      or liability arising therefrom.

    

    7.10  Not
      required to take any action.
      In the
      event of any disagreement between any of the Parties hereto to these
      instructions or between them or either or any of them and any other person
      resulting in adverse claims or demands being made in connection with the
      Transfer Documents, or in the event that the Escrow Agent should take action
      hereunder, it may, at its option, refuse to comply with any claims or demands
      on
      it, or refuse to take any other action hereunder, so long as such disagreement
      continues or such doubt exists and, in any such event, it shall not be or become
      liable in any way or to any person for its failure or refusal to act and it
      shall be entitled to continue so to refrain from acting until:

    

    
      	 	
              (a)

            	
              the
                rights of all Parties shall have been fully and finally adjudicated
                by a
                court of competent jurisdiction; or

            

    

    

    
      	 	
              (b)

            	
              all
                differences shall have been adjusted and all doubt resolved by agreement
                among all of the interested persons and it shall have been notified
                thereof in writing signed by all such
                persons.

            

    

    

    

    Article
      8

    POWER
      TO CHARGE AND ASSIGNMENT AND RIGHT OF FIRST REFUSAL

    

    8.1  Power
      to charge.
      At any
      time prior to the exercise of the Option by the Purchaser the Purchaser may
      grant mortgages, charges or liens (each of which is herein called a
“mortgage”)
      of and
      upon the interest of the Purchaser in and to any of the mineral property
      interests comprising the Property, upon any mill or other fixed property located
      thereon and on any or all of the tangible personal property located on or used
      in connection with any of the mineral property interests comprising the
      Property, to secure only the financing of development of any of the mineral
      property interests comprising the Property; provided that, unless otherwise
      agreed to by the Vendors, it shall be a term of each mortgage that the mortgagee
      or any person acquiring title to any mineral property interest comprising the
      Property, or to any mill or other fixed property or tangible personal property
      located on or used in connection with any mineral property interest comprising
      the Property upon enforcement of the mortgage, shall hold the same subject
      to
      the rights of the Vendors hereunder as if the mortgagee or any such person
      had
      executed this Agreement as party of the first part.

    

    8.2  Assignment.
      Save
      and except as otherwise provided for hereinabove and in this Article, no Party
      may sell, assign, pledge, mortgage or otherwise encumber all or any part of
      its
      interest herein or to any of the mineral property interests comprising the
      Property without the prior written consent of the other Party hereto; provided,
      however, that any Party hereto may at anytime, and at its sole and absolute
      discretion and without the prior approval of the other Party, assign and
      transfer its interest herein or to any of the mineral property interests
      comprising the Property to any wholly-owned subsidiary subject, at all times,
      to
      the requirement that any such subsidiary remain wholly owned by the Party hereto
      failing which any such interest must be immediately transferred back to such
      Party hereto; and, provided further, that any transfer of all or any part of
      a
      Party’s interest herein or to any of the mineral property interests comprising
      the Property to its wholly owned subsidiary shall be accompanied by the written
      agreement of any such subsidiary to assume the obligations of such Party
      hereunder and to be bound by the terms and conditions hereof.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    8.3  Right
      of first refusal.
      At any
      time both prior to and after the exercise of the Option by the Purchaser in
      accordance with the terms of this Agreement each of the Vendors and the
      Purchaser (hereinafter each called the “Disposing
      Party”)
      hereby
      grants to the other Party a right of first refusal to acquire all or any portion
      of any interest herein or to any of the mineral property interests comprising
      the Property which the Disposing Party desires to dispose of (hereinafter
      called, collectively, the “Holding”).
      If a
      Disposing Party receives a bona
      fide
      offer to
      purchase from, or where a sale is solicited by the Disposing Party, then upon
      settling the proposed terms thereof with a third party for the purchase or
      sale
      of the Holding, the Disposing Party shall forthwith offer to sell the Holding
      to
      the other Party. The offer to sell to the non-Disposing Party (or Parties as
      the
      case may be) shall be on the same terms and conditions and of equivalent dollar
      value as those contained in the offer to the third party; provided, however,
      that should the Parties fail to agree upon a determination of the equivalent
      dollar value for any such offer, such equivalent dollar value shall be
      determined finally by arbitration under the provisions of Article “14”
hereinbelow. The other Party shall be entitled to elect, by notice to the
      Disposing Party within 30 calendar days from the date of receipt of the offer
      to
      sell, to acquire the Holding, on the same terms and conditions as those set
      forth in the offer to the third party. If the other Party does not exercise
      its
      right to acquire the Holding as aforesaid, the Disposing Party may, for a period
      of 60 calendar days following the last date upon which the other Party could
      have made the election hereinabove, dispose of the Holding, but only on the
      same
      terms and conditions as set forth in that offer. Any transfer of all or any
      part
      of a Disposing Party’s interest herein or to any of the mineral property
      interests comprising the Property shall be accompanied by the written agreement
      of any such transferee to assume the obligations of such Disposing Party
      hereunder and to be bound by the terms and conditions hereof.

    

    

    Article
      9

    REGISTRATION,
      PARTITION AND TENANCY

    

    9.1  Registration.
      Upon
      the request of the Purchaser the Vendors shall assist the Purchaser to record
      this Agreement with the appropriate mining recorders and, when required, the
      Vendors shall further provide the Purchaser with such recordable documents
      as
      the Purchaser and its counsel shall require to record its due interest in
      respect of the mineral property interests comprising the Property.

    

    9.2  Partition.
      No
      Party owning a partitionable interest in any to any of the mineral property
      interests comprising the Property shall, during the term of this Agreement,
      exercise any right to apply for any partition of any portion of the mineral
      property interests comprising the Property or for the sale thereof in lieu
      of
      partition.

    

    9.3  Tenancy.
      Any
      interests of the Purchaser and Vendors in and to any of the mineral property
      interests comprising the Property shall be held as tenants in common and not
      as
      joint tenants.

    

    

    Article
      10

    DUE
      DILIGENCE INVESTIGATION

    

    10.1  Due
      Diligence.
      Each of
      the Parties hereto shall forthwith conduct such further due diligence
      examination of the other Parties hereto as it deems appropriate.

    

    10.2  Confidentiality.
      Each
      Party may in a reasonable manner carry out such investigations and due diligence
      as to the other Parties hereto, at all times subject to the confidentiality
      provisions of Articles “12” and “13” hereinbelow, as each Party deems necessary.
      In that regard the Parties agree that each shall have full and complete access
      to, if and where applicable, the other Parties’ respective books, records,
      financial statements and other documents, articles of incorporation, by-laws,
      minutes of Board of Directors’ meetings and its committees, investment
      agreements, material contracts and as well as such other documents and materials
      as the Parties hereto, or their respective solicitors, may deem reasonable
      and
      necessary to conduct an adequate due diligence investigation of each Party
      and
      its respective operations and financial condition prior to the
      Closing.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    

    Article
      11

    NON-DISCLOSURE

    

    11.1  Non-disclosure.
      Subject
      to the provisions of section “11.3” hereinbelow, the Parties hereto, for
      themselves and, if and where applicable, their officers, directors,
      shareholders, consultants, employees and agents, agree that they each will
      not
      disseminate or disclose, or knowingly allow, permit or cause others to
      disseminate or disclose to third parties who are not subject to express or
      implied covenants of confidentiality, without the other Parties’ express written
      consent, either: (i) the fact or existence of this Agreement or discussions
      and/or negotiations between them involving, inter
      alia,
      possible business transactions; (ii) the possible substance or content of those
      discussions; (iii) the possible terms and conditions of any proposed
      transaction; (iv) any statements or representations (whether verbal or written)
      made by either Party in the course of or in connection with those discussions;
      or (v) any written material generated by or on behalf of any Party and such
      contacts, other than such disclosure as may be required under applicable
      securities legislation or regulations, pursuant to any order of a court or
      on a
“need to know” basis to each of the Parties’ respective professional
      advisors.

    

    11.2  Documentation.
      Any
      document or written material generated by either Party hereto in the course
      of,
      or in connection with, the due diligence investigations conducted pursuant
      to
      this Agreement shall be marked “Confidential” and shall be treated by each Party
      as a trade secret of the other Parties. Upon termination of this Agreement
      prior
      to Closing all copies of any and all documents obtained by any Party from any
      other Party herein, whether or not marked “Confidential”, shall be returned to
      the other Parties forthwith.

    

    11.3  Public
      announcements.
      Notwithstanding the provisions of this Article, the Parties hereto agree to
      make
      such public announcements of this Agreement promptly upon its execution in
      accordance with the requirements of applicable securities legislation and
      regulations.

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    Article
      12

    PROPRIETARY
      INFORMATION

    

    12.1  Confidential
      Information.
      Each
      Party hereto acknowledges that any and all information which a Party may obtain
      from, or have disclosed to it, about the other Parties constitutes valuable
      trade secrets and proprietary confidential information of the other Parties
      (collectively, the “Confidential
      Information”).
      No
      such Confidential Information shall be published by any Party without the prior
      written consent of the other Parties hereto; however, such consent in respect
      of
      the reporting of factual data shall not be unreasonably withheld and shall
      not
      be withheld in respect of information required to be publicly disclosed pursuant
      to applicable securities or corporation laws. Furthermore, each Party hereto
      undertakes not to disclose the Confidential Information to any third party
      without the prior written approval of the other Parties hereto and to ensure
      that any third party to which the Confidential Information is disclosed shall
      execute an agreement and undertaking on the same terms as contained
      herein.

    

    12.2  Impact
      of breach of confidentiality.
      The
      Parties hereto acknowledge and agree that the Confidential Information is
      important to the respective businesses of each of the Parties and that, in
      the
      event of disclosure of the Confidential Information, except as authorized
      hereunder, the damage to each of the Parties hereto, or to either of them,
      may
      be irreparable. For the purposes of the foregoing sections the Parties recognize
      and hereby agree that a breach by any of the Parties of any of the covenants
      therein contained would result in irreparable harm and significant damage to
      each of the other Parties that would not be adequately compensated for by
      monetary award. Accordingly, the Parties agree that in the event of any such
      breach, in addition to being entitled as a matter of right to apply to a court
      of competent equitable jurisdiction for relief by way of restraining order,
      injunction, decree or otherwise as may be appropriate to ensure compliance
      with
      the provisions hereof, any such Party will also be liable to the other Parties,
      as liquidated damages, for an amount equal to the amount received and earned
      by
      such Party as a result of and with respect to any such breach. The Parties
      also
      acknowledge and agree that if any of the aforesaid restrictions, activities,
      obligations or periods are considered by a court of competent jurisdiction
      as
      being unreasonable, the Parties agree that said court shall have authority
      to
      limit such restrictions, activities or periods as the court deems proper in
      the
      circumstances. In addition, the Parties further acknowledge and agree that
      all
      restrictions or obligations in this Agreement are necessary and fundamental
      to
      the protection of the respective businesses of each of the Parties and are
      reasonable and valid, and all defenses to the strict enforcement thereof by
      either of the Parties are hereby waived by the other Parties.

    

    

    Article
      13

    FORCE
      MAJEURE

    

    13.1  Events.
      If any
      Party hereto is at any time prevented or delayed in complying with any
      provisions of this Agreement by reason of strikes, walk-outs, labour shortages,
      power shortages, fires, wars, acts of God, earthquakes, storms, floods,
      explosions, accidents, protests or demonstrations by environmental lobbyists
      or
      native rights groups, delays in transportation, breakdown of machinery,
      inability to obtain necessary materials in the open market, unavailability
      of
      equipment, governmental regulations restricting normal operations, shipping
      delays or any other reason or reasons beyond the control of that Party, then
      the
      time limited for the performance by that Party of its respective obligations
      hereunder shall be extended by a period of time equal in length to the period
      of
      each such prevention or delay.

    

    13.2  Notice.
      A Party
      shall, within seven calendar days, give notice to the other Parties of each
      event of force
      majeure
      under
      section “13.1” hereinabove and, upon cessation of such event, shall furnish the
      other Parties with notice of that event together with particulars of the number
      of days by which the obligations of that Party hereunder have been extended
      by
      virtue of such event of force
      majeure
      and all
      preceding events of force
      majeure.

    

    

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      

      Article
        14

      ARBITRATION

    

    14.1  Matters
      for Arbitration.
      The
      Parties hereto agree that all questions or matters in dispute with respect
      to
      this Agreement shall be submitted to arbitration pursuant to the terms
      hereof.

    

    14.2  Notice.
      It
      shall be a condition precedent to the right of any Party to submit any matter
      to
      arbitration pursuant to the provisions hereof that any Party intending to refer
      any matter to arbitration shall have given not less than 10-calendar days’ prior
      written notice of its intention to do so to the other Party together with
      particulars of the matter in dispute. On the expiration of such 10 calendar
      days
      the Party who gave such notice may proceed to refer the dispute to arbitration
      as provided in section “14.3” hereinbelow.

    

    14.3  Appointments.
      The
      Party desiring arbitration shall appoint one arbitrator, and shall notify the
      other Party of such appointment, and the other Party shall, within 10 calendar
      days after receiving such notice, appoint an arbitrator, and the two arbitrators
      so named, before proceeding to act, shall, within 10 calendar days of the
      appointment of the last appointed arbitrator, unanimously agree on the
      appointment of a third arbitrator, to act with them and be chairperson of the
      arbitration herein provided for. If the other Party shall fail to appoint an
      arbitrator within 10 calendar days after receiving notice of the appointment
      of
      the first arbitrator, or if the two arbitrators appointed by the Parties shall
      be unable to agree on the appointment of the chairperson, the chairperson shall
      be appointed under the provisions of the Arbitration Act. Except as specifically
      otherwise provided in this section, the arbitration herein provided for shall
      be
      conducted in accordance with such Arbitration Act. The chairperson, or in the
      case where only one arbitrator is appointed, the single arbitrator, shall fix
      a
      time and place in Vancouver, British Columbia, Canada, for the purpose of
      hearing the evidence and representations of the Parties, and such arbitrator
      shall preside over the arbitration and determine all questions of procedure
      not
      provided for under such Arbitration Act or this section. After hearing any
      evidence and representations that the Parties may submit, the single arbitrator,
      or the arbitrators, as the case may be, shall make an award and reduce the
      same
      to writing, and deliver one copy thereof to each of the Parties. The expense
      of
      the arbitration shall be paid as specified in the award.

    

    14.4  Award.
      The
      Parties hereto agree that the award of a majority of the arbitrators, or in
      the
      case of a single arbitrator, of such arbitrator, shall be final and binding
      upon
      each of them.

    

    

    Article
      15

    DEFAULT
      AND TERMINATION

    

    15.1  Default.
      The
      Parties hereto agree that if any Party hereto is in default with respect to
      any
      of the provisions of this Agreement (herein called the “Defaulting
      Party”),
      the
      non-defaulting Party (herein called the “Non-Defaulting
      Party”)
      shall
      give notice to the Defaulting Party designating such default, and within 10
      calendar days after its receipt of such notice, the Defaulting Party shall
      either:

    

    
      	 	
              (a)

            	
              cure
                such default, or commence proceedings to cure such default and prosecute
                the same to completion without undue delay;
                or

            

    

    

    
      	 	
              (b)

            	
              give
                the Non-Defaulting Party notice that it denies that such default
                has
                occurred and that it is submitting the question to arbitration as
                herein
                provided.

            

    

    

    15.2  Arbitration.
      If
      arbitration is sought a Party shall not be deemed in default until the matter
      shall have been determined finally by appropriate arbitration under the
      provisions of Article “14” hereinabove.

    

    15.3  Curing
      the Default.
      If:

    

    
      	 	
              (a)

            	
              the
                default is not so cured or the Defaulting Party does not commence
                or
                diligently proceed to cure the default;
                or

            

    

    

    
      	 	
              (b)

            	
              arbitration
                is not so sought; or

            

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      	
            	(c)	
              the
                Defaulting Party is found in arbitration proceedings to be in default,
                and
                fails to cure it within five calendar days after the rendering of
                the
                arbitration award, the Non-Defaulting Party may, by written notice
                given
                to the Defaulting Party at any time while the default continues,
                terminate
                the interest of the Defaulting Party in and to this
                Agreement.

            

    

    

    15.4  Termination.
      In
      addition to the foregoing it is hereby acknowledged and agreed by the Parties
      hereto that this Agreement will be immediately terminated in the event
      that:

    

    
      	 	
              (a)

            	
              the
                Option is terminated in accordance with Article “2”
                hereinabove;

            

    

    

    
      	 	
              (b)

            	
              either
                of the Parties hereto has either not satisfied or waived each of
                their
                respective conditions precedent prior to the Subject Removal Date
                in
                accordance with the provisions of Article “5”
                hereinabove;

            

    

    

    
      	 	
              (c)

            	
              either
                of the Parties hereto has failed to deliver, or caused to be delivered,
                any of their respective materials required to be delivered in accordance
                with Articles “5” and “6” hereinabove prior to each of the Subject Removal
                Date and the Closing Date in accordance with the provisions of Articles
                “5” and “6” hereinabove;

            

    

    

    
      	 	
              (d)

            	
              either
                of the Parties hereto has not provided a satisfactory report on its
                respective due diligence as contemplated in accordance with Articles
“5”
                and “6” hereinabove;

            

    

    

    
      	 	
              (e)

            	
              the
                Closing Date in respect of the due and complete exercise of the Option
                by
                the Purchaser has not occurred within 120 calendar days from the
                Effective
                Date; or

            

    

    

    
      	 	
              (f)

            	
              by
                agreement in writing by each of the Parties
                hereto;

            

    

    

    and
      in
      such event this Agreement will be terminated and be of no further force and
      effect other than the obligations under Articles “2”, “11” and “12”
hereinabove.

    

    

    Article
      16

    INDEMNIFICATION
      AND LEGAL PROCEEDINGS

    

    16.1  Indemnification.
      Each
      Party hereto agrees to indemnify and save the other Parties, their respective
      affiliates and their respective directors, officers, employees and agents
      (collectively, the “Indemnified
      Parties”
and,
      individually, as an “Indemnified
      Party”)
      harmless from and against any and all losses, claims, actions, suits,
      proceedings, damages, liabilities or expenses of whatsoever nature or kind,
      including any investigation expenses incurred by any Indemnified Party, to
      which
      an Indemnified Party may become subject by reason of the terms and conditions
      of
      this Agreement. This indemnity will not apply in respect of an Indemnified
      Party
      in the event and to the extent that a court of competent jurisdiction in a
      final
      judgment shall determine that the Indemnified Party was grossly negligent or
      guilty of willful misconduct. The Parties hereto agree to waive any right they
      might have of first requiring the Indemnified Party to proceed against or
      enforce any other right, power, remedy, security or claim payment from any
      other
      person before claiming this indemnity. In case any action is brought against
      an
      Indemnified Party in respect of which indemnity may be sought against any Party
      hereto, the Indemnified Party will give the affected Party prompt written notice
      of any such action of which the Indemnified Party has knowledge and the affected
      Party will undertake the investigation and defense thereof on behalf of the
      Indemnified Party, including the prompt employment of counsel acceptable to
      the
      Indemnified Parties affected and the payment of all expenses. Failure by the
      Indemnified Party to so notify shall not relieve the affected Party of its
      obligation of indemnification hereunder unless (and only to the extent that)
      such failure results in a forfeiture by the affected Party of any substantive
      rights or defenses. No admission of liability and no settlement of any action
      shall be made without the affected Party’s consent and the consent of the
      Indemnified Parties affected, such consent not to be unreasonable withheld.
      Notwithstanding that the affected Party will undertake the investigation and
      defense of any action, an Indemnified Party will have the right to employ
      separate counsel in any such action and participate in the defense thereof,
      but
      the fees and expenses of such counsel will be at the expense of the Indemnified
      Party unless:

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    

    
      	
            	(a)	
              employment
                of such counsel has been authorized by the affected
                Party;

            

    

    

    
      	 	
              (b)

            	
              the
                affected Party has not assumed the defense of the action within a
                reasonable period of time after receiving notice of the
                action;

            

    

    

    
      	 	
              (c)

            	
              the
                named parties to any such action include that the affected Party
                and the
                Indemnified Party shall have been advised by counsel that there may
                be a
                conflict of interest between the affected Party and the Indemnified
                Party;
                or

            

    

    

    
      	 	
              (d)

            	
              there
                are one or more legal defenses available to the Indemnified Party
                which
                are different from or in addition to those available to the affected
                Party.

            

    

    

    If
      for
      any reason other than the gross negligence or bad faith of the Indemnified
      Parties (or any of them) being the primary cause of the loss claim, damage,
      liability, cost or expense, the foregoing indemnification is unavailable to
      the
      Indemnified Parties (or any of them) or insufficient to hold them harmless,
      the
      affected Party shall contribute to the amount paid or payable by the Indemnified
      Parties as a result of any and all such losses, claim, damages or liabilities
      in
      such proportion as is appropriate to reflect not only the relative benefits
      received by the affected Party on the one hand and the Indemnified Parties
      on
      the other, but also the relative fault of the Parties and other equitable
      considerations which may be relevant. Notwithstanding the foregoing, the
      affected Party shall in any event contribute to the amount paid or payable
      by
      the Indemnified Parties as a result of the loss, claim, damage, liability,
      cost
      or expense (other than a loss, claim, damage, liability, cost or expenses,
      the
      primary cause of which is the gross negligence or bad faith of the Indemnified
      Parties or any of them), any excess of such amount over the amount of the fees
      actually received by the Indemnified Parties hereunder.

    

    16.2  Legal
      proceedings.
      The
      Parties hereto agrees that if:

    

    
      	 	
              (a)

            	
              any
                legal proceedings shall be brought against either of them by any
                governmental commission or regulatory authority or any stock exchange;
                or

            

    

    

    
      	 	
              (b)

            	
              an
                entity having regulatory authority, either domestic or foreign, shall
                investigate either of them;

            

    

    

    and
      personnel of either Party shall be required to testify in connection therewith
      or shall be required to respond to procedures designed to discover information
      regarding the terms and conditions of this Agreement, such Party shall have
      the
      right to employ its own counsel in connection therewith and the affected Party
      will pay to such Party a per diem amount for their services based on its normal
      hourly or daily rate together with such disbursements and reasonable
      out-of-pocket expenses as may be incurred in connection therewith, including
      fees and disbursements of counsel incurred in connection with such testimony
      or
      participation.

    

    

    Article
      17

    NOTICE

    

    17.1  Notice.
      Each
      notice, demand or other communication required or permitted to be given under
      this Agreement shall be in writing and shall be sent by prepaid registered
      mail
      deposited in a post office addressed to the Party entitled to receive the same,
      or delivered to such Party, at the address for such Party specified above.
      The
      date of receipt of such notice, demand or other communication shall be the
      date
      of delivery thereof if delivered or, if given by registered mail as aforesaid,
      shall be deemed conclusively to be the third calendar day after the same shall
      have been so mailed, except in the case of interruption of postal services
      for
      any reason whatsoever, in which case the date of receipt shall be the date
      on
      which the notice, demand or other communication is actually received by the
      addressee.

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    17.2  Change
      of Address.
      Either
      Party may at any time and from time to time notify the other Parties in writing
      of a change of address and the new address to which notice shall be given to
      it
      thereafter until further change.

    

    

    Article
      18

    GENERAL
      PROVISIONS

    

    18.1  Entire
      agreement.
      This
      Agreement constitutes the entire agreement to date between the Parties hereto
      and supersedes every previous agreement, communication, expectation,
      negotiation, representation or understanding, whether oral or written, express
      or implied, statutory or otherwise, between the Parties hereto with respect
      to
      the subject matter of this Agreement.

    

    18.2  Enurement.
      This
      Agreement will enure to the benefit of and will be binding upon the Parties
      hereto and their respective heirs, executors, administrators and
      assigns.

    

    18.3  Time
      of the essence.
      Time
      will be of the essence of this Agreement.

    

    18.4  Representation
      and costs.
      It is
      hereby acknowledged by each of the Parties hereto that Lang Michener LLP,
      Lawyers - Patent & Trade Mark Agents, act solely for the Purchaser, and,
      correspondingly, that each of the Vendors has been required by each of Lang
      Michener LLP and the Purchaser to obtain independent legal advice with respect
      to its review and execution of this Agreement. In addition, it is hereby further
      acknowledged and agreed by the Parties hereto that Lang Michener LLP, and
      certain or all of its principal owners or associates, from time to time, may
      have both an economic or shareholding interest in and to the Purchaser and/or
      a
      fiduciary duty to the same arising from either a directorship, officership
      or
      similar relationship arising out of the request of the Purchaser for certain
      of
      such persons to act in a similar capacity while acting for the Purchaser as
      counsel. Correspondingly, and even where, as a result of this Agreement, the
      consent of each Party hereto to the role and capacity of Lang Michener LLP,
      and
      its principal owners and associates, as the case may be, is deemed to have
      been
      received, where any conflict or perceived conflict may arise, or be seen to
      arise, as a result of any such capacity or representation, each Party hereto
      acknowledges and agrees to, once more, obtain independent legal advice in
      respect of any such conflict or perceived conflict and, consequent thereon,
      Lang
      Michener LLP, together with any such principal owners or associates, as the
      case
      may be, shall be at liberty at any time to resign any such position if it or
      any
      Party hereto is in any way affected or uncomfortable with any such capacity
      or
      representation. Each Party to this Agreement will also bear and pay its own
      costs, legal and otherwise, in connection with its respective preparation,
      review and execution of this Agreement and, in particular, that the costs
      involved in the preparation of this Agreement, and all documentation necessarily
      incidental thereto, by Lang Michener LLP, shall be at the cost of the
      Purchaser.

    

    18.5  Applicable
      law.
      The
      situs of this Agreement is Vancouver, British Columbia, Canada, and for all
      purposes this Agreement will be governed exclusively by and construed and
      enforced in accordance with the laws and Courts prevailing in the Province
      of
      British Columbia, Canada.

    

    18.6  Further
      assurances.
      The
      Parties hereto hereby, jointly and severally, covenant and agree to forthwith,
      upon request, execute and deliver, or cause to be executed and delivered, such
      further and other deeds, documents, assurances and instructions as may be
      required by the Parties hereto or their respective counsel in order to carry
      out
      the true nature and intent of this Agreement.

    

    18.7  Currency.
      Unless
      otherwise stipulated, all payments required to be made pursuant to the
      provisions of this Agreement and all money amount references contained herein
      are in lawful currency of the United States.

    

    18.8  Severability
      and construction.
      Each
      Article, section, paragraph, term and provision of this Agreement, and any
      portion thereof, shall be considered severable, and if, for any reason, any
      portion of this Agreement is determined to be invalid, contrary to or in
      conflict with any applicable present or future law, rule or regulation in a
      final unappealable ruling issued by any court, agency or tribunal with valid
      jurisdiction in a proceeding to any of the Parties hereto is a party, that
      ruling shall not impair the operation of, or have any other effect upon, such
      other portions of this Agreement as may remain otherwise intelligible (all
      of
      which shall remain binding on the Parties and continue to be given full force
      and agreement as of the date upon which the ruling becomes
      final).

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    18.9  Captions.
      The
      captions, section numbers and Article numbers appearing in this Agreement are
      inserted for convenience of reference only and shall in no way define, limit,
      construe or describe the scope or intent of this Agreement nor in any way affect
      this Agreement.

    

    18.10  Counterparts.
      This
      Agreement may be signed by the Parties hereto in as many counterparts as may
      be
      necessary and, if required, by facsimile, each of which so signed being deemed
      to be an original, and such counterparts together shall constitute one and
      the
      same instrument and notwithstanding the date of execution will be deemed to
      bear
      the Effective Date as set forth on the front page of this Agreement.

    

    18.11  No
      partnership or agency.
      The
      Parties hereto have not created a partnership and nothing contained in this
      Agreement shall in any manner whatsoever constitute any Party the partner,
      agent
      or legal representative of any other Party, nor create any fiduciary
      relationship between them for any purpose whatsoever. No Party shall have any
      authority to act for, or to assume any obligations or responsibility on behalf
      of, any other party except as may be, from time to time, agreed upon in writing
      between the Parties or as otherwise expressly provided.

    

    18.12  Consents
      and waivers.
      No
      consent or waiver expressed or implied by either Party hereto in respect of
      any
      breach or default by any other Party in the performance by such other of its
      obligations hereunder shall:

    

    
      	 	
              (a)

            	
              be
                valid unless it is in writing and stated to be a consent or waiver
                pursuant to this section;

            

    

    

    
      	 	
              (b)

            	
              be
                relied upon as a consent to or waiver of any other breach or default
                of
                the same or any other obligation;

            

    

    

    
      	 	
              (c)

            	
              constitute
                a general waiver under this Agreement;
                or

            

    

    

    
      	 	
              (d)

            	
              eliminate
                or modify the need for a specific consent or waiver pursuant to this
                section in any other or subsequent
                instance.

            

    

    

    

    IN
      WITNESS WHEREOF
      each of
      the Parties hereto have hereunto set their respective hands and seals in the
      presence of their duly authorized signatories effective as of the Effective
      Date
      as set forth in the front page of this Agreement.

    

    

    SIGNED,
      SEALED and DELIVERED
      by                          
)

    EDUARDO
      M. ESTEFFAN,                                              
      )

    a
      Vendor
      herein, in the presence
      of:                                
)

    )

    )

    _________________________________________)

    Witness
      Signature                    
    )       

    )   EDUARDO
      M. ESTEFFAN

    )

    Witness
      Address                                                                
)

    )

    _________________________________________)

    Witness
      Name and Occupation   
)

    

    SIGNED,
      SEALED and DELIVERED by   )

    FRESIA
      H. SEPULVEDA,                                                
       )

    a
      Vendor
      herein, in the presence
      of:                        
        )

    )

    )

    _________________________________________)

    Witness
      Signature                                                              
)       

    )   FRESIA
      H. SEPULVEDA

    _________________________________________)

    Witness
      Address                                                                
)

    )

    _________________________________________)

    Witness
      Name and
      Occupation                                        
)

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    SIGNED,
      SEALED and DELIVERED by )

    EDUARDO
      S. ESTEFFAN,  
                      
   )

    a
      Vendor
      herein, in the presence of:    
             
  )

    )

    )

    _________________________________________)

    Witness
      Signature                    
    )       

    )   EDUARDO
      S. ESTEFFAN

    _________________________________________)

    Witness
      Address                      
    )

    )

    _________________________________________)

    Witness
      Name and
      Occupation                         
  )

    

    SIGNED,
      SEALED and DELIVERED
      by                         
 )

    GRETCHEN
      S. ESTEFFAN,                                             
      )

    a
      Vendor
      herein, in the presence
      of:                                
)

    )

    )

    _________________________________________)

    Witness
      Signature                                                              
)       

    )   GRETCHEN
      S. ESTEFFAN

    _________________________________________)

    Witness
      Address                                                                
)

    )

    _________________________________________)

    Witness
      Name and
      Occupation                                        
)

    

    SIGNED,
      SEALED and DELIVERED
      by                
           )

    CLAUDIO
      S. ESTEFFAN,                                                 
      )

    a
      Vendor
      herein, in the presence
      of:                                 
)

    )

    )

    _________________________________________)

    Witness
      Signature                                                              
)       

    )   CLAUDIO
      S. ESTEFFAN

    _________________________________________)

    Witness
      Address                                                                
)

    )

    _________________________________________)

    Witness
      Name and
      Occupation                                        
)

    

    The
      COMMON SEAL
      of                                                    
)

    INTEGRITY
      CAPITAL GROUP, LLC,                            )

    a
      Vendor
      herein,                                                                  
)

    was
      hereunto affixed in the presence
      of:                         
)

    )

    )    (C/S)

    _________________________________________)

    Authorized
      Signatory                                                         
)

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    The
      CORPORATE SEAL of 
                
   )

    ZORO
      MINING CORP.,  
           
              
   )

    the
      Purchaser herein, was hereunto affixed  
               
 )

    in
      the
      presence of:
                    
    )    (C/S)

    )

    )

    _________________________________________)

    Authorized
      Signatory               
    )

    __________

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    Schedule
      A

    

    

    

    This
      is
      Schedule “A” to that certain Mineral Property Acquisition Agreement as entered
      among each of the Vendors (Eduardo M. Esteffan, Fresia Sepulveda, Eduardo S.
      Esteffan, Gretchen Esteffan, Claudio Esteffan and Integrity) and the Purchaser
      (Zoro Mining Corp.).

    

    

    Property

    

    The
      following represents a general description of the various Property interests
      for
      which a more particular description follows:

    

    
      	 	
              (a)

            	
              the
                Las Animas Project located in Mexico and comprising approximately
                2,700
                hectares;

            

    

    

    
      	 	
              (b)

            	
              the
                Costa Rica Project located in Chile and comprising approximately
                2,100
                hectares, the Escondida Project also located in Chile and comprising
                approximately 2,000 hectares; the Rio Sur Project also located in
                Chile
                and comprising approximately 1,300 hectares and the Don Beno Project
                located in Chile and comprising approximately 6,000 hectares;
                and

            

    

    

    
      	 	
              (c)

            	
              the
                Yura Project located in Peru and comprising approximately 2,000
                hectares.

            

    

    

    Refer
      to the materials attached hereto.

    __________

    

    End
      of Mineral Property Acquisition Agreement

    __________

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    
      	 	 	
               

            	
              ZORO
                CHILE PROPERTIES

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              DON
                BENO PROJECT

            	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              BENODON
                UNO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.910.500,00

            	
              363.500,00

            	
              2006

            	
              496

            	
              375

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                DOS

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.907.500,00

            	
              363.500,00

            	
              2006

            	
              497

            	
              375

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                TRES

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.910.500,00

            	
              364.500,00

            	
              2006

            	
              936

            	
              690

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                CUATRO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.907.500,00

            	
              364.500,00

            	
              2006

            	
              498

            	
              377

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                CINCO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.910.500,00

            	
              365.500,00

            	
              2006

            	
              2575

            	
              1902

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                SEIS

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.910.500,00

            	
              366.500,00

            	
              2006

            	
              2576

            	
              1903

            	
              Hernan
                Cañas

            	
              300

            	
              300

            
	
              BENODON
                SIETE

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.907.500,00

            	
              365.500,00

            	
              2006

            	
              2577

            	
              1904

            	
              Hernan
                Cañas

            	
              300

            	
              200

            
	
              BENODON
                OCHO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.907.500,00

            	
              366.500,00

            	
              2006

            	
              2578

            	
              1905

            	
              Hernan
                Cañas

            	
              300

            	
              200

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              2,200

            
	 	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              BERDON
                UNO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.911.500,00

            	
              370.500,00

            	
              2006

            	
              2579

            	
              1906

            	
              Copiapo

            	
              300

            	
              300

            
	
              BERDON
                DOS

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500,00

            	
              370.500,00

            	
              2006

            	
              2580

            	
              1907

            	
              Copiapo

            	
              300

            	
              300

            
	
              BERDON
                TRES

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500,00

            	
              369.500,00

            	
              2006

            	
              2581

            	
              1908

            	
              Copiapo

            	
              300

            	
              150

            
	
              BERDON
                CUATRO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500,00

            	
              368.500,00

            	
              2006

            	
              2582

            	
              1909

            	
              Copiapo

            	
              300

            	
              150

            
	
              BERDON
                CINCO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500,00

            	
              367.500,00

            	
              2006

            	
              2503

            	
              1910

            	
              Copiapo

            	
              300

            	
              300

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              1,200

            
	 	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              BENO
                UNO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.911.500,00

            	
              367.500,00

            	
              10/24/2006

            	
              6020VTA

            	
              4619

            	
              Copiapo

            	
              300

            	
              100

            
	
              BENO
                DOS

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.913.000,00

            	
              366.500,00

            	
              10/24/2006

            	
              6021VTA

            	
              4620

            	
              Copiapo

            	
              200

            	
              100

            
	
              BENO
                TRES

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.913.500,00

            	
              368.000,00

            	
              10/24/2006

            	
              6022VTA

            	
              4621

            	
              Copiapo

            	
              200

            	
              100

            
	
              BENO
                CUATRO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6,911,500.00

            	
              369,500.00

            	
              10/24/2006

            	
              6023
                vta

            	
              4622

            	
              Copiapo

            	
              300

            	
              100

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              400

            
	 	 	 	 	 	 	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      ZORO
        CHILE PROPERTIES - continued

    

    
      	
            	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              BENITO
                UNO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.913.500,00

            	
              365.000,00

            	
              10/24/2006

            	
              6024VTA

            	
              4623

            	
              Copiapo

            	
              200

            	
              200

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              200

            
	 	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              CALDERON
                UNO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500

            	
              371.500,00

            	
              1/17/2007

            	
              288VTA

            	
              234

            	
              Copiapo

            	
              300

            	
              300

            
	
              CALDERON
                DOS

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.911.500

            	
              371.500,00

            	
              1/17/2007

            	
              290

            	
              235

            	
              Copiapo

            	
              300

            	
              300

            
	
              CALDERON
                TRES

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.908.500,00

            	
              372.500,00

            	
              1/17/2007

            	
              291VTA

            	
              236

            	
              Copiapo

            	
              300

            	
              300

            
	
              CALDERON
                CUATRO

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.911.500,00

            	
              372.500,00

            	
              1/17/2007

            	
              293

            	
              237

            	
              Copiapo

            	
              300

            	
              300

            
	
              CALDERON
                SIETE

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.912.500,00

            	
              364.500,00

            	
              5/11/2006

            	
              2863VTA

            	
              2147

            	
              Copiapo

            	 	
              200

            
	
              CALDERON
                NUEVE

            	
              Cerro
                don Beno

            	
              Exploration

            	
              6.911.500,00

            	
              368.500,00

            	
              1/17/2007

            	
              294VTA

            	
              238

            	
              Copiapo

            	
              300

            	
              200

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              1,900

            
	 	 	 	 	 	 	 	 	
              TOTAL
                1

            	 	
              5,900

            

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

      	
            	 	 	 	 	 	 	 	 	 	 
	
              ESCONDIDA
                PROJECT

            	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              CARBONATOS
                UNO

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.982.500,00

            	
              314.500,00

            	
              2/21/2006

            	
              99

            	
              87

            	
              Caldera

            	
              300

            	
              200

            
	
              CARBONATOS
                DOS

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.983.500,00

            	
              312.500,00

            	
              2/21/2006

            	
              100

            	
              88

            	
              Caldera

            	
              300

            	
              280

            
	
              CARBONATOS
                TRES

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.981.500,00

            	
              314.500,00

            	
              2/21/2006

            	
              101

            	
              89

            	
              Caldera

            	
              300

            	
              300

            
	
              CARBONATOS
                SEIS

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.985.500,00

            	
              312.500,00

            	
              2/21/2006

            	
              104

            	
              92

            	
              Caldera

            	
              300

            	
              300

            
	
              CARBONATOS
                SIETE

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.986.500,00

            	
              312.500,00

            	
              2/21/2006

            	
              105

            	
              93

            	
              Caldera

            	
              300

            	
              300

            
	
              CARBONATOS
                OCHO

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.988.500,00

            	
              313.500,00

            	
              2/21/2006

            	
              106

            	
              94

            	
              Caldera

            	
              300

            	
              50

            
	
              CARBONATOS
                DOCE

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.982.500,00

            	
              311.500,00

            	
              2/21/2006

            	
              110

            	
              98

            	
              Caldera

            	
              300

            	
              200

            
	
              CARBONATOS
                DIESISEIS

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.981.500,00

            	
              311.500,00

            	
              2/21/2006

            	
              114

            	
              102

            	
              Caldera

            	
              300

            	
              200

            
	
              CARBONATOS
                DIESISIETE

            	
              Llanos
                caldera

            	
              Exploration

            	
              6.984.500,00

            	
              312.500,00

            	
              2/21/2006

            	
              115

            	
              103

            	
              Caldera

            	
              300

            	
              220

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              2,050

            
	 	 	 	 	 	 	 	 	 	 	 
	
              COSTA
                RICA PROJECT

            	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	
              Initial
                hectares

            	 
	
              Name
                of Property

            	
              Location

            	
              Type
                of Property

            	
              North
                UTM

            	
              East
                UTM

            	
              Year
                Filed

            	
              Registry

            	
              No

            	
              Conservator/Mines

            	
              Filed

            	
              Net
                Hectares to Zoro

            
	
              COSTA
                RICA UNO

            	
              Barranquilla

            	
              Exploration

            	
              9.966.500,00

            	
              321.500,00

            	
              3/7/2007

            	
              179

            	
              178

            	
              Caldera

            	
              300

            	
              150

            
	
              COSTA
                RICA DOS

            	
              Barranquilla

            	
              Exploration

            	
              6.964.000,00

            	
              321.500,00

            	
              3/7/2007

            	
              180

            	
              179

            	
              Caldera

            	
              200

            	
              50

            
	
              COSTA
                RICA TRES

            	
              Barranquilla

            	
              Exploration

            	
              6.961.500,00

            	
              320.800,00

            	
              3/7/2007

            	
              181

            	
              180

            	
              Caldera

            	
              300

            	
              150

            
	
              COSTA
                RICA CUATRO

            	
              Barranquilla

            	
              Exploration

            	
              6.961.500,00

            	
              321.800,00

            	
              3/7/2007

            	
              182

            	
              181

            	
              Caldera

            	
              300

            	
              300

            
	
              COSTA
                RICA CINCO

            	
              Barranquilla

            	
              Exploration

            	
              6.958.500,00

            	
              320.800,00

            	
              3/7/2007

            	
              183

            	
              182

            	
              Caldera

            	
              300

            	
              300

            
	
              COSTA
                RICA SEIS

            	
              Barranquilla

            	
              Exploration

            	
              6.958.500,00

            	
              321.800,00

            	
              3/7/2007

            	
              184

            	
              183

            	
              Caldera

            	
              300

            	
              300

            
	
              COSTA
                RICA SIETE

            	
              Barranquilla

            	
              Exploration

            	
              6.955.500,00

            	
              320.800,00

            	
              3/7/2007

            	
              185

            	
              184

            	
              Caldera

            	
              300

            	
              300

            
	
              COSTA
                RICA OCHO

            	
              Barranquilla

            	
              Exploration

            	
              6.955.500,00

            	
              321.800,00

            	
              3/7/2007

            	
              186

            	
              185

            	
              Caldera

            	
              300

            	
              200

            
	
              COSTA
                RICA NUEVE

            	
              Barranquilla

            	
              Exploration

            	
              6952.500,00

            	
              320.800,00

            	
              3/7/2007

            	
              187

            	
              186

            	
              Caldera

            	
              300

            	
              200

            
	 	 	 	 	 	 	 	 	
              SUBTOTAL

            	 	
              1,950

            
	 	 	 	 	 	 	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

     

    

      
        	
                 RIO
                  SUR PROJECT

              	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	
                Initial
                  hectares

              	 
	
                Name
                  of Property

              	
                Location

              	
                Type
                  of Property

              	
                North
                  UTM

              	
                East
                  UTM

              	
                Year
                  Filed

              	
                Registry

              	
                No

              	
                Conservator/Mines

              	
                Filed

              	
                Net
                  Hectares to Zoro

              
	
                RIO
                  SUR UNO

              	
                Puerto
                  Viejo

              	
                Exploration

              	
                6.970.000,00

              	
                318.500,00

              	
                3/7/2007

              	
                174

              	
                173

              	
                Caldera

              	
                200

              	
                50

              
	
                RiO
                  SUR DOS

              	
                Puerto
                  Viejo

              	
                Exploration

              	
                6.970.200,00

              	
                320.500,00

              	
                3/7/2007

              	
                175

              	
                174

              	
                Caldera

              	
                300

              	
                250

              
	
                RIO
                  SUR TRES

              	
                Puerto
                  Viejo

              	
                Exploration

              	
                6.969.200,00

              	
                320.500,00

              	
                3/7/2007

              	
                176

              	
                175

              	
                Caldera

              	
                300

              	
                250

              
	
                RIO
                  SUR CUATRO

              	
                Puerto
                  Viejo

              	
                Exploration

              	
                6.969.000,00

              	
                322.500,00

              	
                3/7/2007

              	
                177

              	
                176

              	
                Caldera

              	
                300

              	
                300

              
	
                RIO
                  SUR CINCO

              	
                Puerto
                  Viejo

              	
                Exploration

              	
                6.969.000,00

              	
                323.500,00

              	
                3/7/2007

              	
                178

              	
                177

              	
                Caldera

              	
                300

              	
                300

              
	 	 	 	 	 	 	 	 	
                SUBTOTAL

              	 	
                1,150

              
	 	 	 	 	 	 	 	 	
                TOTAL
                  2

              	 	
                5,150

              
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                TOTAL
                  CHILE

              	 	
                11,050

              
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                ZORO
                  MEXICAN PROPERTIES

              	 	 	 	 	 	 	 
	
                LAS
                  ANIMAS PROJECT

              	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	
                Initial
                  hectares

              	 
	
                Name
                  of Property

              	
                Location

              	
                Type
                  of Property

              	
                North
                  UTM

              	
                East
                  UTM

              	
                Year
                  Filed

              	
                Registry

              	
                No

              	
                Conservator/Mines

              	
                Filed

              	
                Net
                  Hectares to Zoro

              
	
                Kupfer
                  (70%)

              	
                Las
                  Animas Ranch

              	
                Exploitation

              	
                3.127.488

              	
                621.795

              	
                8/16/2006

              	
                82

              	
                30642

              	
                Hermosillo

              	
                648

              	
                400
                  +

              
	
                Harold
                  1 (70%)

              	
                Las
                  Animas Ranch

              	
                Exploitation

              	
                3.126.250

              	
                619.25

              	
                8/16/2006

              	
                82

              	
                30641

              	
                Hermosillo

              	
                1,062

              	
                1,062

              
	
                Harold
                  2 (70%)

              	
                Las
                  Animas Ranch

              	
                Exploitation

              	
                3.125.000

              	
                619

              	
                9/15/2006

              	
                82

              	
                ?

              	
                Hermosillo

              	
                1,300

              	
                1,300

              
	 	 	 	 	 	 	 	 	
                TOTAL
                  MEXICO

              	 	
                2,762

              
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                ZORO
                  PERU PROPERTIES

              	 	 	 	 	 	 	 
	
                YURA
                  PROJECT

              	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	
                Initial
                  hectares

              	 
	
                Name
                  of Property

              	
                Location

              	
                Type
                  of Property

              	
                North
                  UTM

              	
                East
                  UTM

              	
                Year
                  Filed

              	
                Title
                  #

              	
                No

              	
                Conservator/Mines

              	
                Filed

              	
                Net
                  Hectares to Zoro

              
	
                Yebacha
                  2A

              	
                Yura

              	
                Exploitation

              	
                8.193.000

              	
                201,000

              	
                2006

              	
                5000

              	
                5706

              	
                Arequipa

              	
                997.84

              	
                600

              
	
                Yebacha
                  1

              	
                Yura

              	
                Exploitation

              	
                8.193.250

              	
                203,000

              	
                2006

              	
                5000

              	
                2906

              	
                Arequipa

              	
                1,000.74

              	
                550

              
	
                Yebacha
                  16

              	
                Yura

              	
                Exploitation

              	
                8.193.000

              	
                204,500

              	
                2006

              	
                5001

              	
                3006

              	
                Arequipa

              	
                300

              	
                300

              
	
                Yebacha
                  44

              	
                Yura

              	
                Exploitation

              	
                8.196.000

              	
                199,000

              	
                2006

              	
                5000

              	
                8608

              	
                Arequipa

              	
                400

              	
                400

              
	
                Yebacha
                  8

              	
                Yura

              	
                Exploitation

              	
                8.195.500

              	
                203,500

              	
                2006

              	
                5000

              	
                4406

              	
                Arequipa

              	
                100

              	
                50

              
	
                Yebacha
                  7

              	
                Yura

              	
                Exploitation

              	
                8.195.500

              	
                200,500

              	
                2006

              	
                5000

              	
                4306

              	
                Arequipa

              	
                100

              	
                100

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                TOTAL
                  PERU

              	
                 

              	
                2,000

              
	 	 	 	 	 	 	 	 	
                 

              	 	 

      

    

     

     

     39Stock Purchase Agreement between Studio One Media, Inc., and Studio One Entertainment,
      Inc., with Exhibits, dated March 29, 2006

    
      

    

    EXHIBIT
      10.1

     

    
      STOCK
        PURCHASE AGREEMENT 

      

      

      THIS
        AGREEMENT made and entered into as of the 29th day of March, 2006, by and
        between Dimensional Visions Incorporated, a Delaware corporation (hereinafter
        called “DVSO”), and Studio One Entertainment, Inc., an Arizona corporation
        (hereinafter called “SOE”).

      

      WITNESSETH
        THAT:

      

      
        	 	
                A.

              	
                DVSO
                  is a publicly traded company.

              

      

      

      B. SOE
        is a
        private company based in Scottsdale, Arizona that is engaged in the design
        and
        manufacturing of a proprietary, self contained interactive audio/video recording
        and conferencing studio designed for installation in shopping malls and other
        high traffic public areas. The Studio One Kiosk will enable the public, for
        a
        fee, to record their video and voice images in a portable state-of-the-art
        recording studio environment and enter their performances in music, modeling
        and
        other talent related contests. 

      

      B. Subject
        to the approval of the Board of Directors of DVSO and SOE and the consent
        of a
        majority of the shareholders of DVSO and SOE, DVSO and SOE shall enter into
        an
        Agreement of Exchange (hereinafter called the “Exchange Agreement”) in
        substantially the form attached hereto and made apart hereof as Exhibit A,
        which
        provides, among other things, for the issuance by DVSO of approximately six
        million five hundred thousand (6,500,000) of its common stock shares to the
        shareholders of SOE (the “Exchange”).

      

      C. Following
        the Exchange under the Exchange Agreement, SOE will be a wholly-owned subsidiary
        of DVSO.

      

      D. It
        is
        intended that the transactions contemplated by this Agreement shall constitute
        an exchange conforming to the provisions of Section 368(a)(2) of the Internal
        Revenue Code of 1954.

      

      NOW
        THEREFORE, in consideration of the mutual covenants and agreements and the
        benefits to be realized by each of the parties, the following transactions
        are
        hereby agreed to, subject to the conditions hereinafter stated:

      

      1. The
        Exchange

      

      (a) In
        accordance with the Exchange Agreement, on the Closing Date hereinafter referred
        to, and in exchange for all of the then issued and outstanding shares of
        capital
        stock of SOE (the “SOE Common Stock”), DVSO shall issue the number of fully paid
        and nonassessable shares of voting DVSO common stock (hereinafter called
“DVSO
        Common Stock”) in order to permit the Exchange to be effected in accordance with
        the terms of the Exchange Agreement, on the basis of one (1) share of DVSO
        Common Stock for each one (1) share of SOE Common Stock.

      

      If
        between the date hereof and the Closing Date, DVSO shall effect any
        reclassification, recapitalization, subdivision, combination or exchange
        of
        shares, in respect of the outstanding shares of common stock of DVSO or a
        stock
        dividend thereon shall be declared with a record date within said period,
        the
        per share amounts of DVSO Common Stock to be issued and delivered in the
        Exchange shall be appropriately adjusted.

      

      (b) DVSO
        shall issue and deliver as and when required by the Exchange Agreement,
        certificates representing the shares of DVSO Common Stock for which the shares
        of SOE Common Stock outstanding immediately prior to the effective time of
        the
        Exchange shall have been exchanged as provided in the Exchange
        Agreement.

      

      

      

      
        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

      

      

      (c) SOE
        shall
        submit this Agreement and the Exchange Agreement to its shareholders for
        approval, in accordance with Arizona General Corporation Law, at a meeting
        called and held on the date to be fixed by its Board of Directors. SOE shall
        use
        its best efforts to obtain the affirmative vote of shareholders required
        to
        approve this Agreement, the Exchange Agreement and the transactions contemplated
        herein and therein.

      

      (d) DVSO
        shall use it best efforts to obtain the affirmative consent of shareholders
        required to approve the issues set forth in paragraph 14(e) below at a meeting
        or by written consent.

      

      (e) Following
        the approval of the Exchange Agreement by the stockholders of DVSO and SOE,
        and
        upon execution of the Exchange Agreement by the officers of DVSO and SOE,
        a
        Certificate of Exchange containing the information required by the corporate
        law
        of Delaware and Arizona shall be executed by the appropriate officers of
        DVSO
        and SOE.

      

      2. Closing

      

      (a) The
        closing of the transaction contemplated hereby (herein called the “Closing” or
        the “Closing Date”) shall take place at the offices of DVSO in Arizona at 9:00
        a.m. on a date within five (5) business days after all of the conditions
        described in paragraphs 12 and 13 hereof have been satisfied or, to the extent
        permitted in paragraph 15 hereof, their satisfaction has been waived. DVSO
        and
        SOE will use their best efforts to obtain the approvals specified in paragraph
        6
        hereof and any other of the consents, waivers or approvals necessary or
        desirable to accomplish the transactions contemplated by this Agreement and
        the
        Exchange Agreement. All documents required to be delivered by each of the
        parties shall be duly delivered to the respective recipient thereof at or
        prior
        to the Closing. In no event shall the Closing Date be later than June 30,
        2007,
        and if it is delayed beyond said date then either party shall have the right
        to
        terminate this Agreement upon notice to that effect.

      

      (b) At
        the
        Closing, DVSO and SOE shall jointly direct that the Certificate of Exchange
        be
        duly filed, and it shall in accordance with such direction be filed, if
        required, in the office of the Secretary of State of the State of Delaware
        and
        the Arizona Corporation Commission so that the Exchange shall be effective
        on
        the Closing Date.

      

      3. Investigation
        by the Parties

      

      DVSO
        and
        SOE each may, prior to the Closing Date, make or cause to be made such
        investigation of the properties of the other and its subsidiaries and of
        its
        financial and legal condition as the party making such investigation deems
        necessary or advisable to familiarize itself with such properties and other
        matters, provided, that such shall not interfere with normal operations.
        DVSO
        and SOE each agrees to permit the other and its authorized agents or
        representatives to have, after the date of execution hereof, full access
        to its
        premises and to all of its books and records at reasonable hours, and its
        subsidiaries and officers will furnish the party making such investigation
        with
        such financial and operating data and other information with respect to the
        business and properties of its and its subsidiaries as the party making such
        investigation shall from time to time reasonably request. No investigation
        by
        DVSO or SOE shall affect the representations and warranties of the other
        and
        each such representation and warranty shall survive any such investigation.
        Each
        party further agrees that in the event that the transactions contemplated
        by
        this Agreement shall not be consummated it and its officers, employees,
        accountants, attorneys, engineers and other representatives will not disclose
        or
        make available to any other person or use for any purpose unrelated to the
        consummation of this Agreement any information, whether written or oral,
        with
        respect to the other party and its subsidiaries or their business which it
        obtained pursuant to this Agreement. Such information shall remain the property
        of the party providing it and shall not be reproduced or copied without the
        consent of such party. In the event that the transaction contemplated by
        this
        Agreement shall not be consummated, all such written information shall be
        returned to the party providing it.

      

      

       

      

      
        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

      

      4. State
        Securities Laws

       

      DVSO
        and
        SOE will each take such steps as may be necessary on their respective parts
        to
        comply with any state securities or so-called Blue Sky laws applicable to
        the
        action to be taken by them in connection with the Exchange and the delivery
        by
        DVSO to SOE shareholders of the DVSO Common Stock pursuant to this Agreement
        and
        the Exchange Agreement.

      

      5. Business
        Pending the Closing

      

      (a) From
        the
        date of this Agreement to and including the Closing Date, except as may be
        first
        approved by SOE or as is otherwise permitted or contemplated by this Agreement
        or in furtherance of the objectives of this Agreement: (i) DVSO (which term
        shall, where applicable in this paragraph 5, also refer to the subsidiaries
        of
        DVSO specified in paragraph 9 hereof) shall conduct its business only in
        the
        usual and ordinary course without the creation of any additional indebtedness;
        (ii) no change shall be made in the authorized capitalization of DVSO except
        as
        contemplated by this Agreement; (iii) no shares of capital stock of DVSO
        shall
        be authorized for issuance or issued and no agreement or commitment for the
        issuance thereof shall be entered into in excess of the number of shares
        set
        forth for DVSO in the Exchange Agreement; (iv) no rights or elections shall
        be
        created or granted to purchase stock under any employee stock bonus, thrift
        or
        purchase plan or otherwise, to the extent such rights shall result in the
        commitment for the issuance of shares in excess of the number set forth for
        DVSO
        in the Exchange Agreement; (v) no amendment shall be made to DVSO’s Articles of
        Incorporation or Bylaws, except as contemplated by this Agreement; (vi) no
        modifications shall be made in DVSO’s present employee benefit programs or in is
        present policies in regard to the payment of salaries or compensation to
        its
        personnel and no increase shall be made in the compensation of its personnel;
        (vii) no contract or commitment shall be entered into by or on behalf of
        DVSO
        and no sale or purchase of assets shall be made except in the ordinary course
        of
        business; (viii) DVSO will use all reasonable and proper efforts to preserve
        its
        business organization intact, to keep available the services of its present
        employees and to maintain satisfactory relationships between DVSO and its
        suppliers, customers, regulatory agencies, and others having business relations
        with it; (ix) DVSO shall make no amendments or contributions to any profit
        sharing plans; and (x) the Board of Directors of DVSO will not declare any
        dividends on, or otherwise make any distributions in respect of, its outstanding
        shares of capital stock; 

      

      (b) From
        the
        date of this Agreement to and including the Closing Date, except as may be
        first
        approved by DVSO or as is otherwise permitted or contemplated by this Agreement:
        (i) SOE (which term shall, where applicable in this paragraph 5, also refer
        to
        the subsidiaries of SOE specified in paragraph 10 hereof) shall conduct its
        business only in the usual and ordinary course without the creation of any
        additional indebtedness exceeding $10,000 for money borrowed maturing in
        more
        than one year, except for the lease of capital equipment pursuant to leasing
        company commitments outstanding prior to the date of this Agreement; (ii)
        no
        change shall be made in the authorized capitalization of SOE except as
        contemplated by this Agreement; (iii) no shares of capital stock of SOE shall
        be
        authorized for issuance or issued and no agreement or commitment for the
        issuance thereof shall be entered into in excess of the number of shares
        set
        forth for SOE in the Exchange Agreement; (iv) no rights or elections shall
        be
        created or granted to purchase stock under any employee stock bonus, thrift
        or
        purchase plan or otherwise; (v) no amendment shall be made to SOE’s Articles of
        Incorporation or Bylaws, except as contemplated by this Agreement; (vi) no
        modifications shall be made in SOE’s present employee benefit programs or in is
        present policies in regard to the payment of salaries or compensation to
        its
        personnel and no increase shall be made in the compensation of its personnel
        and
        no increase shall be made in the compensation of its personnel, provided
        that
        nothing herein shall preclude (1) the continuation of SOE’s present practices of
        periodically reviewing the salaries of its personnel and granting normal
        increases in such salaries or compensation to such personnel, or (2) the
        hiring
        of new personnel at a salary or compensation deemed reasonable in the ordinary
        course of business; (vii) no contract or commitment shall be entered into
        by or
        on behalf of SOE and no sale or purchase of assets shall be made except in
        the
        ordinary course of business; (viii) SOE will use all reasonable and proper
        efforts to preserve its business organization intact, to keep available the
        services of its present employees and to maintain satisfactory relationships
        between SOE and its suppliers, customers, regulatory agencies, and others
        having
        business relations with it; (ix) SOE shall make no amendments or contributions
        to any profit sharing plans; and (x) the Board of Directors of SOE will not
        declare any dividends on, or otherwise make any distributions in respect
        of, its
        outstanding shares of capital stock. 

      

      
        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

      

      

      (c) The
        parties hereto agree that SOE is extending to DVSO an exclusive option to
        purchase the shares of SOE. As such, SOE agrees not to solicit or entertain
        offers to purchase its shares or assets from a third party prior to the Closing
        or termination of this Agreement. As consideration for this exclusivity,
        subsequent to the date of this Agreement but prior to Closing, SOE shall
        continue its research and development program relating to the entertainment
        Kiosk. SOE agrees that all intellectual property that may be protected by
        patents, copyrights and trademarks will become the subject of patent
        applications filed with the U.S. Patent and Trademark office, together with
        appropriate assignments to SOE of all rights by any persons claiming or who
        may
        have the right to claim status of an inventor or creator of the intellectual
        property being the subject of each such application. All intellectual property
        of SOE shall remain unencumbered and free of any liens or claims of whatsoever
        nature prior to the Closing. Except as set forth in formal patents, copyrights
        and trademarks, or applications for same, SOE makes no representations or
        warranties with respect to its intellectual property. DVSO understands and
        agrees that it will conduct its own independent investigations with respect
        to
        the assets and liabilities of SOE, including but not limited to items of
        intellectual property of SOE. Provided DVSO shall not have theretofore issued
        written notice of termination of this Agreement, as provided herein, DVSO
        will
        advance or reimburse all costs incurred by SOE in connection with the kiosk
        development program including, but not limited to, consulting fees, professional
        fees, prototype construction costs, engineering and design fees, and
        administrative and overhead expenses. Such costs will be either paid directly
        by
        DVOS or remitted to SOE upon written invoice therefore. In the event this
        transaction shall fail to close, for any reason whatsoever, SOE shall be liable
        to DVSO for all monies theretofore advanced to or for the benefit of the
        SOE
        research and development program and shall execute and deliver to DVSO a
        promissory note in such principal amount evidencing such indebtedness. Such
        Promissory Note shall (i) provide for a maturity date two years from the
        date it
        is executed, (ii) bear interest at the rate of three percent over the prime
        rate
        as set by Bank of America from time to time, and (iii) permit repayment at
        any
        time without penalty. The principal of the note, together with all accrued
        interest, shall be due and payable at maturity. Upon execution and delivery
        of
        the aforementioned promissory note, DVSO (i) shall have no rights, liens
        against
        the intellectual property of SOE or any other claims against SOE except as
        provided in the promissory note, and (ii) shall not be entitled to reimbursement
        of any monies advanced, paid or remitted to or on behalf of SOE to any person
        or
        entity pursuant to this Agreement except as provided in the promissory note.
        All
        intellectual property developed or created by SOE prior to this Agreement
        or
        during the term hereof, shall remain the property of SOE.

      

      6. Efforts
        to Obtain Approvals and Consents

      

      In
        addition to DVSO and SOE obtaining the requisite shareholder approval as
        described in paragraph 1 hereof, DVSO and SOE will use all reasonable and
        proper
        efforts to obtain the following: (i) approval or consent of any other
        governmental authorities having jurisdiction over the transactions contemplated
        in this Agreement; and (ii) approval or consent of such other persons whose
        consent is required to the transactions contemplated by this
        Agreement.

      

      7. Cooperation
        Between Parties

      

      DVSO
        and
        SOE shall fully cooperate with each other and with their respective counsel
        and
        accountants in connection with any steps required to be taken as part of
        their
        obligations under this Agreement, including the preparation of financial
        statements and the supplying of information.

      

      8. No
        Tax Ruling

      

      DVSO
        and
        SOE agree that they will not attempt to obtain ruling from the United States
        Internal Revenue Service to the effect that for Federal Income Tax purposes
        no
        gain or loss will be recognized to the holders of SOE Common Stock upon the
        receipt of DVSO Common Stock in exchange for their SOE shares in accordance
        with
        the provisions of this Agreement. In lieu of such a ruling from the Internal
        Revenue Service, SOE may request an opinion of its counsel to the foregoing
        effects, which opinion shall be a condition to both parties’ obligations to
        consummate the Exchange.

      

       

      

      
        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

       

       

      9. Representations
        of DVSO

       

      DVSO
        represents, warrants and agrees that:

      

      (a) DVSO
        is a
        corporation duly organized, validly existing and in good standing under the
        laws
        of the State of Delaware and it and its subsidiaries are duly qualified to
        do
        business and in good standing in every jurisdiction in which the nature of
        its
        business or the character of its properties makes such qualification necessary.
        DVSO’s subsidiaries and a list of jurisdictions in which DVSO or its
        subsidiaries is so qualified is set forth in a memorandum to be prepared
        by DVSO
        and furnished to SOE. DVSO owns 100% of the outstanding capital stock of
        each of
        its subsidiaries.

      

      (b) As
        of
        December 31, 2005, the capitalization of DVSO and its subsidiaries is as
        set
        forth in the financial statements previously furnished to SOE. The outstanding
        capital stock of DVSO has been duly authorized and issued and is fully paid
        and
        nonassessable. DVSO has no commitments to issue nor will it issue any shares
        of
        its capital stock or any securities or obligations convertible into or
        exchangeable for, or giving any person any right to acquire from DVSO, any
        shares of its capital stock, except for those shares issued in conformity
        with
        paragraph 5(a)(iii) above or otherwise described in prior filings with the
        SEC.

      

      (c) The
        shares of DVSO Common Stock which are to be issued and delivered to the SOE
        shareholders pursuant to the terms of this Agreement and the Exchange Agreement,
        when so issued and delivered, will be validly authorized and issued and will
        be
        fully paid and nonassessable. No stockholder of DVSO, or other person, will
        have
        any preemptive rights in respect to the DVSO Common Stock.

      

      (d) DVSO
        has
        furnished SOE with copies of its 2005 Financial Statements together with
        the
        Auditors report for its fiscal year ending June 30, 2005, consisting of the
        consolidated balance sheet of DVSO and its subsidiaries
        as of June
        30,
        2005, and related statements of consolidated income, stockholders’ equity and
        changes in financial position for the year then ended. DVSO has also furnished
        SOE with copies of its unaudited financial statements for the six months
        ending
        December 31, 2005, consisting of the consolidated balance sheet of DVSO and
        its
        subsidiaries as of December 31, 2005, and related statements of consolidated
        income, stockholders’ equity and changes in financial position for the six
        months then ended. All of the above-described financial statements present
        fairly the consolidated financial position of DVSO and its subsidiaries,
        at the
        periods indicated, and the consolidated results of their operations and changes
        in their financial position for the year and periods then ended in conformity
        with generally accepted accounting principles applied on a consistent basis.
        DVSO has no material liabilities or commitments other than as listed or noted
        in
        the aforesaid financial statements, or as incurred in the ordinary course
        of
        business since the date of such financial statements Since December 31, 2005,
        to
        the date of this Agreement, there has been no material adverse change in
        the
        assets or liabilities or in the business or condition, financial or otherwise,
        of DVSO or its subsidiaries, except in the ordinary course of business or
        as
        contemplated by this Agreement, nor has DVSO or its subsidiaries, except
        in the
        ordinary course of business or as contemplated by this Agreement, incurred
        any
        indebtedness for money borrowed. All tax returns and reports of DVSO and
        its
        subsidiaries required by law to be filed have been duly filed and all taxes,
        assessments and other governmental charges now due (other than any still
        payable
        without penalty) upon DVSO and its subsidiaries or upon any of their properties
        or assets, have been paid. All amounts which have been reflected as liabilities
        on the books of DVSO and its subsidiaries in respect of taxes are considered
        adequate and DVSO does not know of any actual or proposed additional assessments
        in respect of taxes, against either it or its subsidiaries. 

      

      (e) Subsequent
        to December 31, 2005, DVSO has not declared or paid any dividends on its
        outstanding shares of common stock or declared or made any distribution on,
        or
        directly or indirectly redeemed, purchased or otherwise acquired any of its
        outstanding stock except as described in its prior filings with the SEC,
        or
        authorized the creation or issuance of, or issued any additional shares of
        stock, or agreed to take any such action, except as expressly provided for
        in
        paragraph 5(a)(iii) above in this Agreement. Except as permitted by paragraph
        5(a)(iii), DVSO will not take any such action during the period between the
        date
        hereof and the Closing Date except as provided herein.

      

      (f) Neither
        DVSO nor any of its subsidiaries is engaged in or a party to, or to the
        knowledge of DVSO threatened with, any material legal action or other proceeding
        before any court or administrative agency, except as set forth and described
        in
        a memorandum to be prepared by DVSO and furnished to SOE. 

      

      
        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

      

      

      Neither
        DVSO nor any of its subsidiaries, to the knowledge of DVSO, has been charged
        with, an is not under investigation with regard to, any charge concerning
        any
        presently pending material violation of any provision of Federal, State or
        other
        applicable law or administrative regulations in respect of its business as
        set
        forth in said memorandum. 

      

      (g) There
        has
        not been, since December 31, 2005, and will not be prior to the Closing Date,
        a
        purchase or sale or any other acquisition, transfer or distribution of any
        assets or properties on the part of DVSO or its subsidiaries except in the
        ordinary course of business.

      

      (h) Except
        in
        each case as set forth in a memorandum to be prepared by DVSO and furnished
        to
        SOE, as of the date of this Agreement neither DVSO nor any of its subsidiaries
        is a holder of or a party to any: (1) written or oral contract for the
        employment of any officer or any other person, (ii) bonus, pension, profit
        sharing, retirement, stock purchase, stock option, insurance, or similar
        plan or
        practice in effect with respect to its employees or other person, (iii) lease
        or
        other commitment for the rental of office space, storage, or other facilities,
        (iv) contract or lease agreement for the acquisition or lease of motor vehicles,
        (v) insurance policy covering its properties, buildings, machinery, equipment,
        furniture, fixtures or operations, or the life of any person; (vi) material
        contract or commitment not made in the ordinary course of business.

      

      (i) The
        execution and carrying out of this Agreement and compliance with the terms
        and
        provisions hereof by DVSO will not conflict with or result in any material
        breach of any of the terms, conditions, or provisions of, or constitute a
        default under, or result in the creation of, any lien, charge or encumbrance
        upon any of the property or assets of DVSO or any of its subsidiaries pursuant
        to any corporate charter, bylaw, indenture, mortgage, agreement (other than
        that
        which is created by virtue of this Agreement), or other instrument to which
        DVSO
        or any of its subsidiaries is a party or by which they are bound or
        affected.

      

      (j) This
        Agreement and the memoranda and documents to be furnished hereunder on behalf
        of
        DVSO do not and will not contain any untrue statement of a material fact
        nor
        omit to state a material fact necessary to be stated in order to make the
        statements contained herein and therein not misleading; and there is not
        fact
        which materially adversely affects or in the future (so far as DVSO can now
        foresee) will materially adversely affect the business operations, affairs
        or
        condition of DVSO or its subsidiaries or any of the properties or assets
        which
        has not been set forth in this Agreement and other documents and papers
        furnished hereunder.

      

      10. Representations
        of SOE

      

      SOE
        represents, warrants and agrees that:

      

      (a) SOE
        is a
        corporation duly organized, validly existing and in good standing under the
        laws
        of the State of Arizona. SOE has the corporate power and any necessary
        governmental authority to own or lease its properties now owned or leased
        and to
        carry on its business as now being conducted. SOE is duly qualified to do
        business and in good standing in every jurisdiction in which the nature of
        its
        business or the character of its properties makes such qualification necessary.
        

      

      (b) As
        of
        September 24, 2004, the capitalization of SOE and its subsidiaries is as
        set
        forth in the financial statements previously furnished to DVSO. The outstanding
        capital stock of SOE has been duly authorized and issued and is fully paid
        and
        nonassessable. SOE has no commitments to issue nor will it issue any shares
        of
        its capital stock or any securities or obligations convertible into or
        exchangeable for, or giving any person any right to acquire from SOE, any
        shares
        of its capital stock, except for those shares issued in conformity with
        paragraph 5(b)(iii) above.

      
        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

      

      

      
        

        (c) SOE
          has
          furnished DVSO with copies of its 2005 Financial Statements together with
          the
          Auditors report for its fiscal year ending December 31, 2005, consisting
          of the
          consolidated balance sheet of SOE and its subsidiaries as of December 31,
          2005,
          and related statements of consolidated income, stockholders’ equity and changes
          in financial position for the year then ended. All of the above-described
          financial statements present fairly the consolidated financial position
          of SOE
          and its subsidiaries, at the  periods indicated, and the
          consolidated results of their operations and changes in their financial
          position
          for the year and periods then ended in conformity with generally accepted
          accounting principles applied on a consistent basis. SOE has no material
          liabilities or commitments other than as listed or noted in the aforesaid
          financial statements, or as incurred in the ordinary course of business
          since
          the date of such financial statements, except under agreements described
          in the
          memorandum described in paragraph 10(i) hereof. Since December 31, 2005,
          to the
          date of this Agreement, there has been no material adverse change in the
          assets
          or liabilities or in the business or condition, financial or otherwise,
          of SOE
          or its consolidated subsidiaries, except in the ordinary course of business
          or
          as contemplated by this Agreement. All tax returns and reports of SOE and
          its
          subsidiaries required by law to be filed have been duly filed and all taxes,
          assessments and other governmental charges now due (other than any still
          payable
          without penalty) upon SOE and its subsidiaries or upon any of their properties
          or assets, have been paid. All amounts which have been reflected as liabilities
          on the books of SOE and its subsidiaries in respect of taxes are considered
          adequate and SOE does not know of any actual or proposed additional assessments
          in respect of taxes, against either it or its subsidiaries.

      

      

      (d) Subsequent
        to December 31, 2005, SOE has not declared or paid any dividends on its
        outstanding shares of common stock or declared or made any distribution on,
        or
        directly or indirectly redeemed, purchased or otherwise acquired any of its
        outstanding stock or authorized the creation or issuance of, or issued any
        additional shares of stock, or agreed to take any such action, except as
        expressly provided for in paragraph 5(a)(iii) above in this Agreement. SOE
        will
        not take any such action during the period between the date hereof and the
        Closing Date except as provided herein.

      

      (e) Neither
        SOE nor any of its subsidiaries is engaged in or a party to, or to the knowledge
        of SOE threatened with, any material legal action or other proceeding before
        any
        court or administrative agency. 

      

      (f) There
        has
        not been, since December 31, 2005, and will not be prior to the Closing Date,
        a
        purchase or sale or any other acquisition, transfer or distribution of any
        assets or properties on the part of SOE or its subsidiaries except in the
        ordinary course of business.

      

      (g) Except
        in
        each case as set forth in a memorandum to be prepared by SOE and furnished
        to
        DVSO, as of the date of this Agreement neither SOE nor any of its subsidiaries
        is a holder of or a party to any: (1) written or oral contract for the
        employment of any officer or any other person, (ii) bonus, pension, profit
        sharing, retirement, stock purchase, stock option, insurance, or similar
        plan or
        practice in effect with respect to its employees or other person, (iii)
        continuing contract for future purchase, sales, lease or distribution of
        materials, services, supplies, products, or equipment involving annual payments
        in excess of $10,000, (iv) lease or other commitment for the rental of office
        space, storage, or other facilities, (v) contract or lease agreement for
        the
        acquisition or lease of motor vehicles, (vi) contracts in force with employees
        or others relating in whole or in part to disclosure, assignment or patenting
        of
        any inventions, discoveries, improvements, shop rights, processes, formulae
        or
        other know-how, presently owned or held, in whole or in part, by SOE or its
        subsidiaries, (vii) insurance policy covering its properties, buildings,
        machinery, equipment, furniture, fixtures or operations, or the life of any
        person; (vi) material contract or commitment not made in the ordinary course
        of
        business.

      

      (h) SOE
        has
        the corporate power to enter into this Agreement, the execution and delivery
        and
        performance of this Agreement have been duly authorized by all requisite
        corporate action, and this Agreement constitutes the valid and binding
        obligation of SOE.

      

      (i) The
        execution and carrying out of this Agreement and compliance with the terms
        and
        provisions hereof by SOE will not conflict with or result in any material
        breach
        of any of the terms, conditions, or provisions of, or constitute a default
        under, or result in the creation of, any lien, charge or encumbrance upon
        any of
        the property or assets of SOE or any of its subsidiaries pursuant to any
        corporate charter, bylaw, indenture, mortgage, agreement (other than that
        which
        is created by virtue of this Agreement), or other instrument to which SOE
        or any
        of its subsidiaries is a party or by which they are bound or
        affected.

      

      
        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

      

      (j) This
        Agreement and the memoranda and documents to be furnished hereunder on behalf
        of
        SOE do not and will not contain any untrue statement of a material fact nor
        omit
        to state a material fact necessary to be stated in order to make the statements
        contained herein and therein not misleading; and there is not fact which
        materially adversely affects or in the future (so far as SOE can now foresee)
        will materially adversely affect the business operations, affairs or condition
        of SOE or its subsidiaries or any of the properties or assets which has not
        been
        set forth in this Agreement and other documents and papers furnished
        hereunder.

      

      

      

      11. Survival
        of Warranties

      

      The
        representations and warranties made herein by DVSO and SOE shall survive
        the
        Closing hereunder.

      

      12. Conditions
        to the Obligations of DVSO

      

      The
        obligations of DVSO hereunder are subject to the satisfaction on or before
        Closing Date of the following conditions:

      

      (a) This
        Agreement and the transactions contemplated hereby shall have been approved
        by
        the requisite vote of the outstanding shares of SOE Common Stock.

      

      (b) SOE
        shall
        have furnished DVSO with (1) a certified copy of resolutions duly adopted
        by the
        holders of more than fifty percent (50%) of its issued and outstanding shares
        of
        SOE Common Stock entitled to vote, evidencing approval of this Agreement
        and the
        Exchange Agreement and the transactions contemplated hereby and thereby;
        (2) one
        certified copy of resolutions duly adopted by the Board of Directors of SOE
        approving the execution and delivery of this Agreement and the Exchange
        Agreement and authorizing all necessary or proper corporate action to enable
        SOE
        to comply with the terms hereof and thereof; and (3) a certificate of SOE’s
        President or Secretary that each of SOE’s officers and directors have resigned,
        as of the effective date subsequent to the actions indicted in subparagraphs
        (1)
        and (2) of this paragraph 12(b).

      

      (c) The
        representation and warranties of SOE contained in this Agreement shall be
        true
        in all material respects on and as of the Closing Date with the same effect
        as
        though such representations and warranties had been made on and as of such
        date,
        except for changes permitted by this Agreement or those incurred in the ordinary
        course of business, and DVSO shall have received from SOE at the Closing
        a
        certificate, dated the Closing Date, of the President or Vice President of
        SOE
        to that effect.

      

      (d) Each
        and
        all of the respective agreements of SOE to be performed on or before the
        Closing
        Date pursuant to the terms hereof shall in all material respects have been
        duly
        performed and SOE shall have delivered to DVSO a certificate date the Closing
        Date, of the President or Vice President of SOE to that effect.

      

      (e) SOE
        shall
        have furnished DVSO with copies of its audited Financial Statements together
        with the Auditor’s report for all fiscal years ended prior to the Closing Date
        and for the current year from its beginning to the Closing Date. Such financial
        statements shall consist of the balance sheet, the income statement, statement
        of stockholder’s equity and changes in financial position for the year or period
        then ended. 

      
        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

       

      
        13. Conditions
          to the Obligations of SOE

        

        The
          obligations of SOE hereunder are subject to the satisfaction on or before
          Closing Date of the following conditions:

        

      

       

      (a) This
        Agreement and the transactions contemplated hereby shall have been approved
        by
        the requisite vote of the outstanding shares of SOE Common Stock.

      

      (b) All
        the
        terms and covenants of this Agreement to be complied with or performed by
        DVSO
        shall have been fully complied with and performed in all material respects.
        

      

      (c) The
        representation and warranties of DVSO contained in this Agreement shall be
        true
        in all material respects on and as of the Closing Date with the same effect
        as
        though such representations and warranties had been made on and as of such
        date,
        and DVSO shall have delivered to SOE at the Closing a certificate, dated
        the
        Closing Date, of the President or Vice President of SOE to that
        effect.

      

      (d) The
        necessary approvals described in paragraph 6 hereof shall have been
        granted.

      

      (e) On
        the
        Closing Date, DVSO shall have furnished SOE with (1) a certified copy of
        resolutions duly adopted by the holders of more than fifty percent (50%)
        of its
        issued and outstanding shares of DVSO Common Stock entitled to vote, evidencing
        approval of this Agreement and the Exchange Agreement and the transactions
        contemplated hereby and thereby; and (2) a certified copy of DVSO approving
        the
        execution and delivery of this Agreement and authorizing all necessary and
        proper corporate action to enable DVSO to comply with the terms and conditions
        of this Agreement. 

      

      14. Termination
        and Modification of Rights

      

      (a) This
        Agreement (except for the last three sentences of paragraph 3 hereof) may
        be
        terminated at any time prior to the Closing Date by (1) mutual consent of
        the
        parties hereto authorized by their respective Boards of Directors, or (2)
        upon
        written notice to the other party, by either party, upon authorization of
        its
        Board of Directors:

      

      (i) if
        in its
        reasonably exercised judgment there shall have occurred a material adverse
        change in the financial condition or business of the other party or the other
        party shall have suffered a material loss or damage to any of its property
        or
        assets, which change, loss or damage materially affects or impairs the ability
        of the other party to conduct its business, or if any previously undisclosed
        condition which materially adversely affects the earning power or assets
        of
        either party comes to the attention of the other party;

      

      (ii) if
        the
        terms, covenants or conditions of this Agreement to be complied with or
        performed by one of the other parties at or before the Closing Date shall
        not
        have been materially complied with or performed at the time required for
        such
        compliance or performance and such noncompliance or nonperformance shall
        not
        have been waived by the party giving notice of termination; 

      

      (iii) if
        any
        action or proceeding shall have been instituted or threatened before a court
        or
        other governmental body or by any public authority to restrain or prohibit
        the
        transaction contemplated by this Agreement or if the consummation of such
        transaction would subject either of such parties to liability for breach
        of any
        law or regulation; or

      

      (b) As
        provided in paragraph 2(a) this Agreement may be terminated by either party
        hereto upon notice to the other in the event the Closing shall not beheld
        by
        June 30, 2007.

      

      (c) Any
        terms
        or conditions of this Agreement may be waived at any time by the party hereto
        which is entitled to the benefit thereof, by action taken by the Board of
        Directors of such party; and any such term or condition may be amended at
        any
        time, by an agreement in writing executed by the chairman of the Board, the
        President or any Vice President of each of the parties pursuant to authorization
        by the respective Board of Directors; provided, however, that no amendment
        of
        any principal term of the Exchange Agreement shall be effected after approval
        of
        this Agreement by the shareholders of SOE, unless such amendment is approved
        by
        such shareholders in accordance with the respective state corporation
        law.

      

      
        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

      

      15. Expenses

      

      Except
        to
        the extent otherwise provided in paragraph 5(c) of this Agreement, in the
        event
        this Agreement is terminated without consummation at the Closing, DVSO and
        SOE
        shall each pay all of its respective expenses incurred for the purpose of
        carrying this Agreement into effect.

      

      16. Finders

      

      Each
        of
        the parties represents that no broker, agent, finder or similar person has
        been
        retained or paid and that no brokerage fee or other commission has been agreed
        to be paid for or on account of this Agreement.

      

      17. Governing
        Law and Venue

      

      This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of Arizona, United States of America. The parties hereby expressly
        agree that the proper venue for any claim or cause of action by the parties
        shall be the district Court for Maricopa, Arizona, and each party upon execution
        of this Agreement consents to the service of process from such
        court.

      

      18. Notices

      

      All
        notices or other communications required or permitted hereunder shall be
        sufficiently given if sent by certified mail, postage prepaid, addressed
        as
        follows:

      

      

      If
        to
        DVSO:  Dimensional
        Visions Incorporated

      8777
        N.
        Gainey Center Dr., Suite 191

      Scottsdale,
        AZ 85281

      

      With
        a
        copy to:

      

      Kenneth
        R. Pinckard, Esq.

      3104
        E.
        Camelback Rd., Suite 245

      Phoenix,
        AZ 85016

      

      If
        to
        SOE: Studio
        One Entertainment, Inc.

      Attn:
        Larry Ryckman

      13470
        N.
        85th
        Place

      Scottsdale,
        AZ 85260

      

      

      

      19. Binding
        Nature and Assignment

      

      This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective successors, but it may not be assigned by any party
        without
        the consent of the other.

      

      20. Assignment

      

      Rights
        ad
        obligations of a party to this Agreement may not be assigned or transferred
        without the other party’s prior written consent.

      

      21. Modification

      

      No
        modification or amendment of this Agreement shall be valid unless it is in
        writing and signed by both parties hereto.

      

      
        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

      

      

      22. Complete
        Agreement

      

      This
        Agreement constitutes the entire agreement between the parties and supersedes
        all prior agreements and understandings between the parties.

      

      23. Waiver

      

      The
        waiver by either party of a breach of any term in this Agreement shall not
        operate as, or be construed as, a waiver of any subsequent breach.

      

      24. Headings

      

      The
        headings in this Agreement are inserted for convenience only and shall not
        be
        considered in interpreting the provisions hereof.

      

      25. Counterparts

      

      This
        Agreement may be executed in two or more counterparts by the parties hereto
        by
        their respective officers thereunto duly authorized by a majority of their
        directors as of the date first above written.

      

      

      IN
        WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
        by
        their respective officers thereto duly authorized by a majority of their
        directors as of the date first above written.

      

      DIMENSIONAL
        VISIONS INCORPORATED. 

      

      

      

      By:
         /s/
        Preston J. Shea 

      Title:
        President

      

      

      

      

      STUDIO
        ONE ENTERTAINMENT, INC. 

      

      

      

      By:
         /s/
        Lawrence G. Ryckman 

      Title:
        Chairman and Chief Executive Officer

      

      
        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        “A”

      

      

      AGREEMENT
        OF EXCHANGE

      OF

      DIMENSIONAL
        VISIONS INCORPORATED

      AND

      STUDIO
        ONE ENTERTAINMENT, INC.

      

      

      AGREEMENT
        OF EXCHANGE made as of the _____ day of ________________, 20__, by and between
        Dimensional Visions Incorporated, a Delaware corporation (herein, “DVSO”), and
        Studio One Entertainment, Inc., an Arizona corporation (herein, “SOE”). DVSO and
        SOE are sometimes hereinafter collectively referred to as the “Constituent
        Corporations”. 

      

      RECITALS:

      

      DVSO
        is a
        Delaware corporation organized on May 12, 1988, and its authorized capital
        stock
        consists of 100,000,000 shares of common stock, $.001 par value (the “DVSO
        Common Stock”) of which no more than 4,000,000 shares of DVSO Common Stock will
        be issued and outstanding as of the Closing Date.

      

      SOE
        is an
        Arizona corporation organized on September 24, 2004 and its authorized capital
        stock consists of 100,000,000 shares of common stock, no par value (the “SOE
        Common Stock”) of which approximately 6,500,000 shares of SOE Common Stock will
        be issued and outstanding as of the Closing Date and no shares of SOE Common
        Stock are reserved for issuance upon exercise of any outstanding common stock
        purchase warrants or options except as described in the Stock Purchase
        Agreement.

      

      DVSO
        and
        SOE have entered into an Stock Purchase Agreement dated March 29, 2006 (the
        “Stock Purchase Agreement”) setting forth certain representations, warranties,
        agreements and conditions in connection with the exchange provided for
        herein.

      

      The
        respective Board of Directors of DVSO and SOE have, by resolution, duly approved
        the execution of and the transaction contemplated by the Stock Purchase
        Agreement and this Agreement of Exchange and directed that they be submitted
        to
        the shareholders of SOE for adoption and approval.

      

      NOW,
        THEREFORE, in consideration of the premises and of the mutual covenants and
        agreements herein contained, the parties hereto have agreed and do hereby
        agree,
        subject to the terms and conditions hereinafter set forth, as
        follows:

      

      I

      

      EXCHANGE

      

      1.1
        In
        accordance with the provisions of this Agreement and Section 1(a) of Stock
        Purchase Agreement, each of the shares of SOE Common Stock outstanding as
        the
        Effective Date of the Exchange shall be exchanged for one (1) share of DVSO
        Common Stock to be issued upon the Effective Date of the Exchange. DVSO shall
        be
        and is herein sometimes referred to as the “Acquiring Corporation”.

      

      1.2
        Upon
        the Effective Date of the Exchange (as defined in Article III hereof) SOE
        shall
        become a wholly-owned subsidiary of DVSO, (i) shall continue to possess all
        of
        its rights and property as constituted immediately prior to the Effective
        Date
        of the Exchange and (ii) shall continue subject to all of its debts and
        liabilities as the same shall have exited immediately prior to the Effective
        Date of the Exchange. All rights of creditors and all liens upon the property
        of
        each of the Constituent Corporations shall be preserved unimpaired.

      

      
        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

      

      

      1.3
        DVSO
        hereby agrees that at and after the times when the Exchange shall become
        effective and as and when required by the provisions of the Stock Purchase
        Agreement, DVSO will issue certificates representing that number of shares
        of
        common stock, $.001 par value per share, or DVSO (collectively, “Exchange
        Shares”) for which shares of DVSO Common Stock issued and outstanding
        immediately prior to the Effective Date of the Exchange and by virtue of
        the
        Exchange, be exchanged as hereinafter provided.

      

      1.4
        The
        Exchange shall not become effective until the following actions shall have
        been
        completed: (i) this Agreement of Exchange shall have been adopted and approved
        by the shareholders of SOE in accordance with the requirements of Arizona
        corporate law; and (ii) all of the other conditions precedent to the
        consummation of the Exchange specified in the Stock Purchase Agreement shall
        have been satisfied or duly waived by the party entitled to satisfaction
        thereof.

       

      

      II

      

      EXCHANGE
        OF SHARES

      

      The
        manner and basis of exchanging shares of SOE Common Stock for the Exchange
        Shares and the exchange of certificates therefore, shall be as
        follows:

      

      2.1
        Each
        one (1) share of SOE Common Stock which shall be issued and outstanding
        immediately prior to the Effective Date of the Exchange shall, by virtue
        of the
        Exchange and without any action on the part of the holder thereof other than
        that set forth in the Stock Purchase Agreement, be exchanged on or before
        the
        fifteenth (15th)
        day
        after the Board of Directors of DVSO shall have approved and authorized the
        consummation of the transaction contemplated by the Acquisition Documents
        (the
“Effective Date of the Exchange”) into One (1) share of the Exchange Shares. If
        between the date hereof and the Effective Date of the Exchange, DVSO or SOE
        shall either effect any reclassification, recapitalization, subdivision,
        combination or exchange or shares, in respect of their respective outstanding
        common stock, or a stock divided thereon shall be declared with a record
        date
        within said period, the per share amounts of the Exchange Shares to be issued
        and delivered as provided in this Agreement shall be appropriately
        adjusted.

      

      2.2
        After
        the Effective Date of the Exchange certificates evidencing outstanding shares
        of
        SOE Common Stock shall evidence the right of the holder thereof to receive
        certificates for shares of the Exchange Shares at the applicable rate as
        aforesaid. Each holder of SOE Common Stock, upon surrender of the certificate
        or
        certificates, which prior thereto represented shares of SOE Common Stock,
        to
        DVSO’s stock transfer agent, which shall act as the exchange agent (the
“Exchange Agent”) for such shareholder to effect the exchange of certificates on
        their behalf, shall be entitled upon such surrender to receive in exchange
        therefore a certificate or certificates representing the number of whole
        shares
        of the Exchange Shares into which the shares of SOE Common Stock therefore
        represented by the certificate or certificates so surrendered shall have
        been
        exchanged as aforesaid. Until so surrendered, each outstanding certificate
        for
        shares of SOE Common Stock shall be deemed for all corporate purposes, including
        voting rights, subject to the future provisions of this Article II, to evidence
        the ownership of the shares of the Exchange Shares into which such shares
        have
        been so exchanged. No dividends or distributions will be paid to persons
        entitled to receive certificates for shares of the Exchange Shares pursuant
        hereto until such persons shall have surrendered their certificates which
        prior
        to the Effective Date of the Exchange represented shares of SOE Common Stock;
        but there shall be paid to the record holder of each such certificates, with
        respect to the number of whole shares of the Exchange Shares issued in exchange
        therefore (i) upon such surrender, the amount of any dividends or distributions
        with a record date subsequent to the Effective Date of the Exchange and prior
        to
        surrender which shall have become payable thereon since the Effective Date
        of
        the Exchange, without interest, and (ii) after such surrender, the amount
        of any
        dividends thereon with a record date subsequent to the Effective Date of
        the
        Exchange and prior to surrender and the payment date of which shall be
        subsequent to surrender; such amount to be paid on such payment
        date.

      

      2.3
        No
        certificates representing a fraction of a share of the Exchange Shares will
        be
        issued and no right to vote or receive any distribution or any other right
        of a
        shareholder shall attach to any fractional interest in a share of the Exchange
        Shares to which any holder of shares of SOE Common Stock would otherwise
        be
        entitled hereunder. In lieu thereof, each holder of shares of SOE Common
        Stock
        entitled to a fraction of a share of the Exchange Shares shall receive one
        whole
        share of DVSO Common Stock if the fraction of a share is equal to or greater
        than one-half share (.50); otherwise, the holder of the fraction of a share
        shall receive cash on the basis of $.50 per share.

      

      
        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

       

      2.4
        If
        any certificate for shares of the Exchange Shares is to be issued in a name
        other than that in which the certificate surrendered in exchange therefore
        is
        registered, it shall be a condition of the issuance thereof that the certificate
        so surrendered shall be properly endorsed and otherwise be in proper form
        for
        transfer and that the person requesting such exchange pay to the Exchange
        Agent
        any transfer or other taxes required by reason of the issuance of a certificate
        for shares of the Exchange Shares in any name other than that of the registered
        holder of the certificate surrendered, or establish to the satisfaction of
        the
        Exchange Agent that such tax has been paid or is not payable.

      

      2.5
        At
        the Effective Date of the Exchange, all shares of SOE Common Stock which
        shall
        then be held in its treasury, if any, shall cease to exist, and all certificates
        representing such shares shall be canceled.

      

      

      III

      

      MISCELLANEOUS

      

      3.1
        For
        the convenience of the parties hereto and to facilitate the filing of this
        Agreement of Exchange, any number of counterparts hereof may be executed;
        and
        each such counterpart shall be deemed to be an original instrument.

      

      3.2
        At
        any time prior to the Effective Date of the Exchange the parties hereto may,
        by
        written agreement, (a) extend the time for the performance of any of the
        obligations or other acts of the parties hereto, (b) waive (in the manner
        specified in Paragraph 14 of the Stock Purchase Agreement) any breach or
        inaccuracy in the representations and warranties contained in this Agreement
        of
        Exchange or in the Stock Purchase Agreement or in any document delivered
        pursuant thereto, or (c) waive (in the manner specified in Paragraph 14 of
        the
        Stock Purchase Agreement) compliance with any of the covenants, conditions
        or
        agreements contained in this Agreement of Exchange or in the Stock Purchase
        Agreement.

      

      3.3
        The
        corporation parties to this Agreement are also parties to the Stock Purchase
        Agreement. The two agreements are intended to be construed together in order
        to
        effectuate their purposes, and said agreements are intended as a plan or
        reorganization within the meaning of Section 368 of the Internal Revenue
        Code of
        1954, as amended.

      

      IN
        WITNESS WHEREOF, each of the undersigned corporations has caused this Agreement
        of Exchange to be signed in its corporate name by its duly authorized officers
        and its corporate seal to be affixed hereto, all as of the date first above
        written.

      

      

      DIMENSIONAL
        VISIONS INCORPORATED 

      

      

      

      By:
          

        
        President

      

      

      STUDIO
        ONE ENTERTAINMENT, INC. 

      

      

      

      By:
          

      Chairman
        and Chief Executive Officer

      

        

      

      14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]