Document:

Exhibit
10.4 

 

 

“EXPLOITATION
AGREEMENT”

 

EXPLOITATION
AMENDMENT (THIRD AMENDMENT) TO THE CONTRACT MINING

SERVICES
AND MINERAL PRODUCTION AGREEMENT

 

 

THIS
EXPLOITATION AMENDMENT, being the THIRD Amendment TO THE CONTRACT MINING SERVICES AND MINERAL PRODUCTION AGREEMENT (The
“Operating Agreement”), is made and entered into this Fifteen (15th) day of May, 2013 by and among
DYNARESOURCE DE MEXICO, S.A. DE C.V., hereinafter referred to as “DYNAMEXICO”); and MINERAS DE DYNARESOURCE,
S.A. DE C.V., represented hereto by Mr. German Perez Alaniz, holding the Power of Attorney for Administrative Acts of the Company
(hereinafter referred to as “MINERAS”).

 

 

WITNESSETH:

 

WHEREAS,
DYNAMEXICO and MINERAS entered into a Contract Mining Services and Mineral Production Agreement (the “Operating Agreement”)
dated as of April 15, 2005, and The FIRST AMENDMENT to the Operating Agreement on September 15, 2006, further amended by the SECOND
AMENDMENT to the Operating Agreement dated July 15, 2011; and pursuant to which DYNAMEXICO engaged MINERAS to render the Mining
Services described in Schedule A of the Operating Agreement, as amended by the First, and Second Amendments to said Operating
Agreement as described herein, whereby the parties established the manner in which MINERAS were to exclusively operate and conduct
the Subject Business (Mining Services, Milling services, Maintenance Services, Geology Services, Engineering Services, Transportation
/ Trucking Services, Administrative Services, Management of Personnel, Support, as well as other related services, hereinafter
referred to as “the services”); And,

 

WHEREAS,
with the knowledge of current Shareholders of DYNAMEXICO, and the various positions and discussions between the Shareholders
of DYNAMEXICO; MINERAS has been named the exclusive Operating Entity for the Project San Jose de Gracia, and MINERAS is to be
maintained as the Exclusive Operating Entity entitled to Exploit the San Jose de Gracia Mines and provide the inherent services;
And,

 

WHEREAS,
per the services to be rendered, certain operational costs, including but not limited to; the continued maintenance of the
Property, maintaining Mining Concessions and other inherent services to the upkeep of the Mine, as well as costs related exclusively
to the exploitation and further development of the Mine, with additional consideration given to further exploration of the Project
Area, have arisen which make it imperative for MINERAS to restructure the Agreement with DYNAMEXICO in order to provide for the
Financing for such costs and expenditures as previously discussed and negotiated with DYNAMEXICO; And,

 

WHEREAS,
the parties desire to further amend the Mining Services and Mineral Production Agreement (the “Operating Agreement”)
in the manner hereinafter set forth.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in consideration
of the mutual promises contained herein, the parties agree as follows:

 

		1.	Defined
                                         Terms. Except as expressly provided herein, all the terms used herein shall have
                                         the respective meanings set forth in the original MINING SERVICES AND MINERAL PRODUCTION
                                         AGREEMENT and its First and Second Amendments.

 

		2.	Certain
                                         definitions contained under Schedule B of the original Agreement as amended by the first
                                         amendment to said agreement, is hereby again amended to read as follows:

 

“Schedule
B

“Compensation”

 

DYNAMEXICO
shall pay to MINERAS, in consideration for the Execution of the Mining Services set out in Schedule A hereto, and subsequent to
the reimbursement by DYNAMEXICO to Mineras for all Costs incurred by Mineras under the terms of this Agreement, a Management Fee
equal to:

 

(A)
Reimbursement of all costs incurred by Mineras under the terms of this Exploitation Amendment Agreement, such Costs incurred by
Mineras and to be charged by billing from Mineras to DynaMexico; Including, but not limited to: payment of costs and expenses,
fees, consulting costs, sub-contacts, equipment costs, rentals, surcharges, personnel payments and other related and inherently
derived from the services of the execution of the Mining Services and Milling Services, and Exploration Costs to be provided in
the San José de Gracia Project;

 

(B)
After Item A above; 75 % (Seventy-Five percent) of the Total Revenue Amounts Received from the sale of Any and All Minerals Produced,
Extracted, or Sold from the San Jose de Gracia Property; to the point that Mineras has recovered 200 % (Two Hundred Percent) of
Monies Invested by MINERAS; And,

 

(C)
After Items A and B above; 50 % (Fifty Percent) of the Total Revenue Amounts Received from the sale of Any and All Minerals Produced,
Extracted, or Sold from the San Jose de Gracia Property; After MINERAS has recovered 200 % (Two Hundred Percent) of Monies Invested
by MINERAS, and through the remaining term of this Exploitation Agreement;

 

 

Likewise,
a Net Smelter Return (hereinafter the “2.5 % NSR”) of 2.5 % (Two and One Half Percent) is hereby imposed in
favor of MINERAS in retribution and compensation of their services. Said 2.5 % NSR will apply to 100 % (One Hundred Percent) of
Any and All Mineral Sales from the San José de Gracia Project, and shall continue for the Term of the Exploitation Agreement
unless otherwise may be agreed in writing by MINERAS.”

 

 

		3.	MISCELLANEOUS
                                         PROVISIONS

 

3.01
Notices. All notices, consents, waivers and other communications under this Agreement must be in writing and will be deemed
to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopy (with
written confirmation of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when
received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to
the appropriate addresses set forth below:

If
to DYNAMEXICO:

 

Sierra
Grande #134

Fraccionamiento
Lomas de Mazatlán

Mazatlán,
Sinaloa, México 82110

52-669-983-6625
/ 52-669-986-1306

 

		Attention:	Dr.
                                         Jose Vargas Lugo; President of Operations – Mexico; 

 

 

If
to MINERAS:

 

Enrique
Dunant Y 5 de Mayo

#
963 L- 3

Fraccionamiento
Los Parques

Guamuchil,
Sinaloa México 81400

52-673-732-9325
/ 52-673-734-0920 

 

Attention:
Mr. German Perez Alaniz, Legal Representative.

 

 

3.02
Jurisdiction; Service of Process. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to
the exclusive jurisdiction of the courts of the State of Sinaloa, Mexico, for any Actions arising out of or relating to this Agreement,
(and agree not to commence any action, suit or proceeding relating thereto except in such courts). Each of the parties hereto
hereby irrevocably and unconditionally waives any objection to the laying of venue of any Action arising out of this Agreement,
in the courts of the City of Mazatlán, in the State of Sinaloa, Mexico, and to the norms set forth by the Commerce Code
and Civil Code of such venue, and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such Action brought in any such court has been brought in an inconvenient forum.”

 

3.03
Governing Law. This Agreement will be construed in accordance with and governed by the laws of Mexico, specifically, the Commerce
and Civil Codes of the State of Sinaloa, Mexico, without regard to conflicts of laws principles thereof.

 

3.04
Waiver. The rights and remedies of the parties to the original Agreement are cumulative and not alternative. Neither the failure
nor any delay by any party in exercising any right, power or privilege under said Agreement will operate as a waiver of any right,
power or privilege under this Amendment, and no single or partial exercise of any right, power or privilege under this Amendment
will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege
under this Amendment or its original Agreement from it derives thereto. To the maximum extent permitted by Law, (a) no claim
or right arising out of this Amendment and/or its original Agreement can be discharged by one party, in whole or in part, by a
waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that may be given
by a party will be applicable except in the specific instance for which it is given and will not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure or noncompliance; and (c) no notice to or demand on one party will be deemed
to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further action
without notice or demand as provided in this Amendment or its original Agreement from which it derives.

 

3.05
Entire Amendment and Modification. This Amendment constitutes a complete and exclusive statement of the terms of the original
agreement to be modified between the parties with respect to the subject matter contained herein, and supersedes all prior amendments
of the original agreement between the parties with respect to the items defined and modified hereto and thereto.

 

3.06
No Oral Modification. This Amendment may not be amended except by a written agreement executed by the parties to be charged
with the amendment. Any attempted amendment in violation of this Section 3.06 will be void ab initio.

 

3.07Severability.
If any provision of this Amendment and/or in regards to the original Agreement is held invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Amendment will remain in full force and effect. Any provision of this Amendment
held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

3.08
Counterparts. This Amendment may be executed simultaneously in two or more counterparts, each of which will be deemed to be
an original copy of this Amendment and all of which together will be deemed to constitute one and the same agreement.

 

 

IN
WITNESS WHEREOF, this Exploitation Amendment (THIRD AMENDMENT) to the CONTRACT MINING SERVICES AND MINERAL PRODUCTION AGREEMENT
(“Operating Agreement”) has been duly executed and delivered by the duly authorized officers of DYNAMEXICO and
MINERAS as of the date first written above.

 

	DynaResource
    de México, S.A. de C.V.	Mineras
    de DynaResource, S.A. de C.V.Exhibit 10.5 

 

 

PROVISION
OF PERSONNEL SERVICES AGREEMENT

 

 

THIS
AGREEMENT is made and entered on this the 15th day of MAY, 2005.

 

AMONG:

 

 

MINERAS
DE DYNARESOURCE, S.A. DE C.V., herein represented by Mr. KOY WILBER DIEPHOLZ, acting in his capacity of President of its Board
of Directors holding General Powers of Attorney for Legal Representation and Collections, Acts of Administration and Domain (hereinafter
referred to as the “ “Contractor”);

 

OF
THE FIRST PART,

 

AND

 

 

DYNARESOURCE
OPERACIONES DE SAN JOSE DE GRACIA, S.A. DE C.V. herein represented by Mr. KOY WILBER DIEPHOLZ, acting in his capacity of President
of its Board of Directors holding General Powers of Attorney for Legal Representation and Collections, Acts of Administration
and Domain (hereinafter referred to as the “Subcontractor”),

 

 

OF
THE SECOND PART.

 

WHEREAS:

 

		A)	the
                                         Contractor is a limited liability company (S. A. de C.V.) validly subsisting and duly
                                         incorporated pursuant to the laws of the United Mexican States, having its business and
                                         affairs, among others, the exploration and exploitation of minerals within the territory
                                         of Mexico,

 

		B)	the
                                         Contractor has executed with Dynaresource de Mexico, S.A. de C.V. (the “Company”)
                                         a Mining Services and Production of Minerals Agreement (the “Mining Services Agreement”)
                                         whereby the Contractor has agreed to render to the Company the Services described in
                                         schedule A attached thereto, in or related to the mining concessions comprised in the
                                         San Jose de Gracia Project, located in the Township of San Jose de Gracia, Municipality
                                         of Sinaloa de Leyva, State of Sinaloa, Mexico (the “San Jose de Gracia Project),

 

		C)	the
                                         Subcontractor is a limited liability company (S. A. de C.V.) validly subsisting and duly
                                         incorporated pursuant to the laws of the United Mexican States, having its business and
                                         affairs, among others, the provision of technical and administrative mining services
                                         and personnel to mining corporations operating within the territory of Mexico, and it
                                         has personnel duly qualified, competent and accredited to carry out and provide to the
                                         Contractor the Personnel Services as required under the Mining Services Agreement,

 

		D)	the
                                         Contractor desires to engage the Subcontractor to provide the Personnel Services for
                                         the proper and competent execution of the Services described in schedule A of the Mining
                                         Services Agreement, and the Subcontractor desires to provide to the Contractor such Personnel
                                         Services in consideration of the Compensation, subject to the terms and conditions herein
                                         set forth (all terms as defined here-below). 

 

 

NOW
THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual warranties and representations herein contained, the
parties agree as follows:

 

PART
1.          ENGAGING OF SUBCONRACTOR.

 

1.1.Pursuant
to Part 10 of the Mining Services Agreement and having the consent of the Company as required therein, the Contractor hereby engages
the Subcontractor to provide the Personnel Services described in Section 1.2. (the “Personnel Services”). The Subcontractor
hereby agrees to provide to the Contractor the Personnel Services:

 

		(a)	in
                                         a professional, competent and efficient manner,

 

		(b)	as
                                         required for the proper and competent execution of the Services set out in the Mining
                                         Services Agreement and

 

		(c)	as
                                         required from time to time by the Company.

 

1.2.The
Subcontractor shall, as required from time to time by the Contractor and the Company and as set out in the Mining Services Agreement,
provide all labour personnel sufficient, competent and accredited to carry out the Services set out in schedule A of the Mining
Services Agreement, including, but not limited to (the “Personnel Services”):

 

		(a)	general
                                         labourers and miners for the mining activities in or related to the San Jose de Gracia
                                         Project, including mining equipment operators (backhoe, scoop tram, dump trucks, etc..)
                                         and related personnel for the transportation of ore, concentrates, water, personnel and
                                         equipment;

 

		(b)	general
                                         labourers and mill operators for the milling activities in or related to the San Jose
                                         de Gracia Project, including the crushing, grinding, screening, collecting and storing
                                         gravity and flotation concentrates, the sampling, assaying and reporting, handling and
                                         applying chemicals, handling and movement of tailings, storing and handling of ore and
                                         the operation of the equipment related to such activities;

 

		(c)	geology
                                         personnel for the sampling and assaying of rocks, trenching, drilling, interpretation
                                         of data, coordination with engineering and all related activities; 

 

		(d)	engineering
                                         personnel for the surveying, mapping, coordinating with geology personnel, planning and
                                         development of mine plans, planning and monitoring of mine equipment, monitoring mining
                                         activity for safety, and all related activities;

 

		(e)	management,
                                         maintenance and support personnel for the reporting, record keeping, maintaining payments
                                         and accounts, secretarial services, maintaining of offices, and all related activities;
                                         the servicing, repairing and maintaining of all camp, equipment, and facilities, and
                                         all related activities; all support personnel to reasonably accomplish the work objectives;

 

1.2.A.     It
is agreed and acknowledged by the Subcontractor that, from May 16, 2005 through the date of effective termination of this Agreement,
it shall be solely liable and legally responsible for all personnel provided to the Contractor while providing the Personnel Services
pursuant to Subsection 1.2. Such liability and legal responsibility of the Subcontractor shall include, but not be limited to,
all rights and benefits acquired by such personnel engaged by the Subcontractor, and all obligations assumed by said Subcontractor,
set forth under the provisions of the Federal Employment Act, the National Workers’ Housing Institute Act, the Mexican Social
Security Institute Act, the Federal Income Tax Act and any other federal or state legislation applicable to a labour relationship.

 

1.3.        In
consideration for the provision of the Personnel Services, the Contractor shall pay to the Subcontractor: The Actual Costs of
Employment for all Personnel, and the Total Cost of Employment Taxes; plus 10 %. (The “Compensation”).

 

1.4.        This
Agreement shall be in full force and effect for a period of ONE (1) YEAR commencing on MAY 16, 2005 and may be renewed by the
parties for like terms, or as agreed or amended by the parties (the “Term of the Agreement”). The Contractor shall
have the right to terminate this Agreement on fifteen days’ written notice to the Subcontractor. In the event of such termination,
this Agreement, except for the obligations of the Contractor incurred prior to the effective date of termination, will be of no
further force and effect. This Agreement shall cease to be in force forthwith on the date of the effective termination of the
Mining Services Agreement.

 

1.5.        All
personnel provided by the Subcontractor shall have sufficient skill and experience to properly perform the tasks assigned to them.
Personnel engaged in special tasks or skilled tasks will have appropriate qualifications, permits or licenses, experience with
such tasks and the operation of equipment required to perform all such tasks properly and satisfactorily to completion. The Subcontractor
shall promptly terminate or cause to be terminated any person who does not perform its tasks in a proper and skilled manner, or
who is intemperate or disorderly. Additionally, any such person shall, at written request of the Company or the Contractor, be
removed forthwith by the Subcontractor employing such person and will not be employed again without the prior written approval
of the Company. Should the Subcontractor fail to furnish suitable and sufficient personnel for proper execution of the Personnel
Services, or fail to remove such person or persons as required above, the Company or the Contractor may suspend the Personnel
Services by written notice until such orders are complied with.

 

1.6.        It
is agreed and acknowledged by the Subcontractor that pursuant to Subsection 1.8. of the Mining Services Agreement the Company,
without invalidating such Agreement, may make changes by altering, adding to, or deducting from the responsibilities set out as
Services under schedule A thereto. In any of such cases, the Subcontractor shall provide all extra or incidental personnel to
fully perform all altered, added or reduced responsibilities. The Subcontractor shall not claim for loss of profits or anticipated
profits or damages at any time due to any decision to reduce or delete any part of the Services set out in schedule A of the Mining
Services Agreement as herein set out.

 

 

1.7.        Except
as may be otherwise expressly set out herein, the Subcontractor shall clean up the work performed by its personnel as it progresses
and ensure that the premises are at all times kept free from the accumulation of waste material and rubbish resulting from the
Subcontractor’s activities, removing debris from the mine and mill sites from day to day, and when all work is finished
shall similarly remove all tools, equipment, machinery, fuel drums and hazardous substances, and machinery which are its property
or the property of any other person and all rubbish and waste materials, and shall leave the workplace in a clean and safe condition,
free and clear of all obstructions and hindrances. Should the Subcontractor refuse or neglect to comply with the provisions of
this paragraph, the Company and the Contractor shall have the right to do the cleaning and charge the Subcontractor with the costs
thereof.

 

 

PART
2.          MINING ASSETS.

 

2.1.        It
is agreed and acknowledged by the Subcontractor, in its behalf and in behalf of its employees or independent contractors that
pursuant to Part 2 of the Mining Services Agreement the Company has furnished, for the property and competent execution of the
Services (set out in schedule A of the Mining Services Agreement) all of the equipment, machinery, rights and facilities described
in the inventory of assets attached as schedule C to the Mining Services Agreement (the “Mining Assets”).

 

2.2.It
is acknowledged and agreed by the Contractor, in its behalf and in behalf of its employees or independent contractors that the
Mining Assets:

 

		(a)	shall
                                         remain the property of the Company during and on termination of this Agreement; the Contractor
                                         is deemed as a lessee of such Mining Assets and the holder of the rights of use and enjoyment
                                         thereof, 

 

		(b)	shall
                                         be dedicated exclusively for the provision of the Services set out in schedule A of the
                                         Mining Services Agreement; the Contractor being responsible and liable to the Company
                                         for any use of the Mining Assets other that as provided in such Agreement.

 

2.3.
       The Contractor shall, during the Term of the Agreement and until such time as the Company accepts full delivery of the Mining
Assets, be fully responsible and liable to the Company for the proper up keeping, maintenance and safeguarding of the Mining Assets;
the Subcontractor shall directly or indirectly conduct in a timely and workmanlike manner, all repairs and period maintenance
work as required to maintain the Mining Assets in optimal operating condition.

 

2.4.        The
Suncontractor agrees to indemnify and hold harmless the Contractor and the Company and their respective directors, officers, employees,
agents, representatives and related corporations (the “Indemnified Persons”) from and against any claims, demands,
judgments, liabilities, expenses, damages, fines, charges, costs (including legal costs) and losses of every and any kind whatsoever,
whether direct or indirect and whether to person or property or otherwise, which at any time or from time to time are directly
or indirectly incurred or suffered by any of the Indemnified Parties in connection with, as a result of or arising out of the
operation, administration or maintenance of the Mining Assets by the personnel provided by the Subcontractor under this Agreement.

 

2.5.        The
Subcontractor agrees to maintain the Mining Assets free and clear of all charges, encumbrance or limitation of ownership rights
of any kind whatsoever that may result or arise out of any claims, demands or judgments filed by or issued to the benefit of any
employee or independent contractor provided by the Subcontractor hereunder.

 

 

PART
3.          RELATIONSHIP.

 

3.1.        The
parties hereto acknowledge and agree that this Agreement:

 

		(a)	is
                                         of a mercantile nature,

 

		(b)	does
                                         not create a partnership or association of any kind between the Subcontractor and the
                                         Contractor or the Subcontractor and the Company,

 

		(c)	is
                                         not subject to the provisions of the Federal Labour Act of Mexico, the Social Security
                                         Act or any other legislation applicable to a labour relationship, and

 

		(d)	does
                                         not create any contractual, civil or labour relationship, or any relationship of any
                                         nature whatsoever, between the Subcontractor and the Company. 

 

3.2.        The
parties hereby acknowledge and agree that there is no labour relationship between or among themselves, between or among any or
both of them and the Company or between or among the employees or contractors of the parties or the Company; therefore, the parties
expressly agree that each party shall individually bear all obligations or responsibilities imposed to each of them under applicable
labour and tax legislation, or imposed to each party in respect to such party’s employees or contractors. Further, the parties
agree to indemnify and hold each other harmless from, against and in respect to, any suit, demand or complaint claimed or filed
before any labour, administrative or judicial authority by one of the party’s employees or contractors against the other
party.

 

3.3.       The
Subcontractor acknowledges and agrees that all personnel provided by it pursuant to the provision of this Agreement shall at all
times be retained and engaged by the Subcontractor. The Subcontractor agrees that it is solely and exclusively responsible for
payment of salaries and/or professional fees, income tax, IMSS and INFONAVIT withholdings, payments and fees applicable under
the laws of Mexico in respect to all personnel provided by the Subcontractor pursuant to this Agreement.

 

 

PART
4.          INDEMNITY.

 

4.1.        The
Subcontractor hereby assumes, except as may be expressly set out in this Agreement, entire responsibility and liability for any
and all damage, loss or injury of any kind or nature whatsoever to person or property arising out of or connected in any manner
with the activities of its personnel in the San Jose de Gracia Project. Without limitation, the Subcontractor agrees to indemnify
and hold harmless the Contractor and the Company and their respective directors, officers, employees, agents, representatives
and related corporations (collectively the “Indemnified Parties”) from and against any claims, demands, judgments,
liabilities, expenses, damages, fines, charges, costs (including legal costs) and losses (collectively “Losses”) of
every and any kind whatsoever, whether direct or indirect and whether to person or property or otherwise, which at any time or
from time to time are directly or indirectly incurred or suffered by any of the Indemnified Parties in connection with, as a result
of or arising out of:

 

		(a)	any
                                         act or omission on the part of any employee or independent contractor of the Subcontractor;

 

		(b)	any
                                         misrepresentation or untrue warranty of the Subcontractor;

 

		(c)	any
                                         breach, default or non-performance of any covenant to be performed by the Subcontractor
                                         under this Agreement; or,

 

		(d)	without
                                         limiting sub-clause (a) above and except for any manners which are expressly stated to
                                         be the responsibility of the Contractor, the performance by or on behalf of the Subcontractor
                                         of any obligations imposed by applicable Mexican laws (the “Laws”) relating
                                         to the environment (including reclamation or closure) or the taking of any steps by or
                                         on behalf of the Subcontractor to protect against or remediate (including reclamation)
                                         any harm, damage, degradation or adverse effect on the environment which directly or
                                         indirectly results from the activities of the employees or independent contractors of
                                         the Subcontractor.

 

4.2.        Environmental
Matters. - The Subcontractor covenants, represents and warrants to the Contractor that:

 

		(a)	it
                                         will review, be familiar with and verify the existence of all permits which are held
                                         by the Company or which are necessary to perform its obligations pursuant to this Agreement;

 

		(b)	it
                                         will identify and obtain and maintain any other permits which may be required pursuant
                                         to environmental Laws in connection with the performance of this Agreement;

 

		(c)	it
                                         is familiar with all applicable Laws relating to the environment and that the activities
                                         of all of its personnel will be conducted in compliance with all environmental Laws and
                                         permits and so as not to give rise to any breach or non-compliance thereof;

 

		(d)	all
                                         of its employees and independent contractors have been properly trained with respect
                                         to environmental concerns directly or indirectly associated with the Company’s
                                         activities and methods and systems for preventing any harm, damage, degradation or adverse
                                         effect on the environment;

 

		(e)	it
                                         will exercise due care in preventing environmental harm and without limitation, the Subcontractor
                                         and its employees and independent contractors shall implement such systems and procedures
                                         and provide all such equipment and facilities necessary so as to prevent accidental occurrences
                                         which may result in environmental harm; and,

 

		(f)	it
                                         shall be fully responsible for all acts and omissions of any of its employees and/or
                                         independent contractors, and the Subcontractor shall ensure that any of its employees
                                         or independent contractors shall comply with the provisions herein set out and any other
                                         provisions of this Agreement which directly or indirectly relate to environmental matters
                                         as if such person was the Subcontractor hereunder.

 

 

PART
5.          INSPECTION OF WORK.

 

5.1.        All
work performed by the employees and independent contractors of the Subcontractor shall be performed in a professional, competent,
and efficient manner. Inspection of all work will be carried out by the Contractor and/or the Company while such work is in progress.
Notwithstanding such inspection, the Subcontractor will be held responsible for the completion of the work in accordance with
the terms and conditions of this Agreement and the Mining Services Agreement.

 

5.2.        The
Contractor and the Company and their respective representatives will, at all times, have access to the work performed by the employees
or independent contractors of the Subcontractor whenever it is in preparation or progress. The Contractor and Company will perform
said inspection in such manner as not to delay the work unnecessarily.

 

 

PART
6.          SUBCONTRACTS

 

6.1.        The
Subcontractor shall not subcontract to any person any part of the Personnel Services without prior written approval of the Contractor
and the Company, and in each individual instance, the scope of the Personnel Services to be subcontracted will be subject to prior
approval of the Contractor and the Company, which approval shall not be unreasonably withheld.

 

6.2.        The
Subcontractor agrees that it is as fully responsible to the Contractor and the Company for the acts and omissions of its subcontractors
and of persons either directly or indirectly employed by them as it is for the acts and omissions of persons directly employed
by it.

 

6.3.         Nothing
contained in this Agreement shall create any contractual relationship between any subcontractor of the Subcontractor and the Contractor
or the Company. Each subcontract shall provide that it is subject to termination for the convenience of the Company, in which
event the Company’s liability shall be limited to work done or material supplied prior to cancellation.

 

 

PART
7.          SUSPENSION OR TERMINATION FOR CONVENIENCE.

 

7.1.        The
Contractor reserves the right to suspend or terminate this Agreement, or any part thereof, at any time and for any reason it deems
fit, including for its convenience. Such suspension or termination will be made in writing and may include the whole or any specified
part of the Agreement.

 

7.2.         Upon
receipt of notice to resume suspended Services, the Subcontractor will immediately resume the suspended Personnel Services to
the extent required in the notice. If this Agreement, or a specified part thereof, is terminated for the convenience of the Contractor,
the Company shall pay the Subcontractor for Personnel Services performed before the effective date of termination.

 

 

PART
8.          TERMINATION FOR CAUSE.

 

8.1.        If
the Subcontractor shall become bankrupt or insolvent, or if the Contractor has reasonable grounds to believe that the Subcontractor
is bankrupt or insolvent or unable to pay its debts as they become due, the Contractor may terminate all or part of the Subcontractor’s
performance and/or further rights hereunder for cause, as the Contractor may elect.

 

8.2.        If
the Subcontractor fails to commence the Personnel Services within the time specified and prosecute it continuously with sufficient
properly skilled personnel and equipment to ensure its completion within the specified time, or fails to perform the Personnel
Services in the manner required by this Agreement, or fails to carry on the Personnel Services in an acceptable manner, or defaults
in any of the obligations herein, the Contractor may elect to give notice in writing of such default, specifying the same and
the corrective steps to be taken.

 

8.3.        If
the Subcontractor, within a period of 72 hours after delivery of such notice, shall fail to proceed in accordance therewith, the
Contractor may terminate the Subcontractor’s right to continue with the Personnel Services and may complete it with its
own forces, contract with others for its completion, or use such other measures as in the Contractor’s opinion are necessary
for completion, including the use of the equipment, plant, and other property of the Subcontractor. In selecting another subcontractor(s)
for the purpose of completing the Personnel Services, the Contractor shall be guided by the same selection criteria as utilized
by the Contractor in the original contract award, and not necessarily by the lowest bid(s).

 

8.4.        In
the event of termination for cause:

 

		(a)	The
                                         Contractor shall be entitled to deduct from any and all monies owing to the Subcontractor
                                         hereunder damages for additional expenses caused by or arising out of breach of warranties
                                         and guarantees hereunder, or of any other default by the Subcontractor;

 

		(b)	If
                                         the expense of finishing the Personnel Services plus compensation for additional managerial
                                         and administrative services and such other costs and damages with regard to completion
                                         of the Personnel Services as the Contractor may suffer exceeds the unpaid balance, the
                                         Subcontractor shall promptly pay the difference to the Contractor, and,

 

		(c)	The
                                         Subcontractor shall not be entitled to receive any further payment until the Personnel
                                         Services are completed and any such payments shall exclude all claims and the Subcontractor
                                         shall not be entitled to any claims for special or consequential damages, including loss
                                         of anticipated profit due to such termination;

 

		(d)	No
                                         settlement payment will be made to the Subcontractor hereunder, until the Subcontractor
                                         has submitted:

 

	(i)		final statement supported by
vouchers; and,

 

	(ii)		A full Release and Waiver of
Claim from all employees and independent contractors of the Subcontractor or other evidence satisfactory to the Contractor that
the Subcontractor has paid for all labour, materials, equipment, services, subcontracts, applicable taxes, and other costs and
assessments due under this Agreement.

 

8.5.        In
the event of termination for cause, written notice will be given to the Subcontractor at the address set forth in this Agreement.
Subject to the directions set forth in the termination notice, the Subcontractor shall immediately discontinue the Personnel Services
and the placing of orders for further services, material and equipment and shall, as directed, effect cancellation of all existing
orders and subcontracts and thereafter perform only such Personnel Services as may be necessary to preserve and protect the work
already in progress.

 

 

PART
9.          GENERAL PROVISIONS.

 

9.1.        Confidentiality.
The parties hereby agree to maintain confidential the terms and conditions set out in this Agreement. Further, the Subcontractor
hereby agrees on its behalf and/or on behalf of its employees, subcontractors, directors, officers and representatives (the “Related
Persons”) to maintain confidential and to not disseminate, permit the dissemination or to use for its own benefit or for
the benefit of the Related Persons or for commercial purpose, all or any portion of the information that it or the Related Persons
may obtain or may have access to during or as a result of the performance of the Personnel Services. The obligation entered into
by the Subcontractor hereunder shall be in force for the duration of this Agreement and it shall terminate at the completion of
a term of 5 years commencing from the date of termination of this Agreement.

 

9.2.        Materials.
The Subcontractor hereby agrees on its behalf and on behalf of the Related Persons that all materials obtained or prepared
during the performance of the work, and all confidential information obtained or to which it or the Related Persons have an access
to, is and shall remain the exclusive property of the Company. The Subcontractor hereby agrees to return to the Company, at its
own expense and within a term of 10 calendar days commencing on the date of termination of this Agreement or on the date of receipt
of a written request from the Company, all materials or confidential information in its possession or in possession of the Related
Persons that have been obtained or prepared during or as a result of the performance of the work.

 

9.3.        Governing
Law. The parties hereby covenant and agree that this Agreement shall be construed by and regulated under the provisions of
the Code of Commerce and the Civil Code of the State of Sinaloa, Mexico. The parties hereby agree that the state and federal tribunals
with competent jurisdiction for the City of Mazatlan, State of Sinaloa, United Mexican States, shall have the authority to resolve
any suit or claim arising out of or resulting from the application of this Contract. The parties hereby relinquish their right
to the jurisdiction of any tribunal or court, of any kind or nature, to which they might have or acquire a right or be subject
to by virtue of their current or future domiciles.

 

9.4.        Notices.
Any notice or notification given or required to be given between the parties as a result of the application of this Agreement,
including any notification required or permitted to be given in any judicial proceedings, shall be given in writing and personally
delivered to the other party, or delivered by any means that undoubtedly assures its reception or notification, in both cases
with an acknowledgement of receipt thereof, and it shall be directed to the latest domiciles expressed by the parties hereunder,
which domiciles are, until further notice is given, as follows:

 

If
to Contractor:

 

MINERAS
DE DYNARESOURCE, S.A. DE C.V.

Attention:
Mr. KOY WILBER DIEPHOLZ

Ave.
Ejercito Mexicano No. 2004, Oficina 204

Col.
Insurgentes

Mazatlan,
Sin. MEXICO

669-986-1306

 

If
to Subcontractor:

 

DYNARESOURCE
OPERACIONES DE SAN JOSE DE GRACIA, S.A. DE C.V.

Attention:
Mr. KOY WILBER DIEPHOLZ

Ave.
Ejercito Mexicano No. 2004, Oficina 204

Col.
Insurgentes

Mazatlan,
Sin. MEXICO

669-986-1306

 

9.5.        Languages.
The parties sign, execute and approve this Agreement in the English and Spanish languages. The parties agree that in the event
of discrepancy between the two versions, the Spanish version shall prevail. The parties acknowledge to having read and understood
(through their respective appointed Spanish interpreters) the legal effects and validity of the Spanish and English versions of
this Agreement. The English version is attached as schedule C hereto and made part hereof for all corresponding legal effects.

 

9.6.        Whole
Agreement. This Agreement, schedule A (English version) attached hereto and the documents delivered as set forth hereunder,
constitute the entire understanding of the parties in respect to the subject matter hereof, and they cancel and supersede any
other agreement, contract or letter of intent that they may have executed in respect to the said subject matter.

 

 

 

IN
WITTNESS WHEREOF, the parties hereto after having read and understood the legal effects and validity of the premises set forth
above, have caused this Agreement to be executed on the date and place first-written. 

 

 

THE
“CONTRACTOR”

 

MINERAS
DE DYNARESOURCE, S.A. DE C.V.

 

 

 

______________________________________

Per:
KOY WILBER DIEPHOLZ

Its:
President of the Board of Directors

 

 

 

 

THE
“SUBCONTRACTOR”

 

DYNARESOURCE
OPERACIONES DE SAN JOSE DE GRACIA, S.A. DE C.V.

 

 

 

______________________________________

Per:
KOY WILBER DIEPHOLZ

Its:
President of the Board of Directors

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