Document:

Exhibit 10.5 

AMENDMENT
AGREEMENT (HEREINAFTER, THE “AMENDMENT AGREEMENT”) TO THE TEMPORARY
OCCUPANCY AND EASEMENT RIGHTS AGREEMENT EXECUTED ON AUGUST 20, 2007, ENTERED
INTO BY AND BETWEEN U.S. PRECIOUS METALS DE MEXICO, S.A. DE C.V. (“USPM”),
REPRESENTED HEREIN BY MR. DAVID WAYNE BURNEY, ITS LEGAL REPRESENTATIVE, ON ONE
HAND, AND ON THE OTHER, MESSRS. VICTORIO GUTIERREZ CARDENAS AND IRMA BAÑUELOS
SERRATO (JOINTLY, THE “OWNERS”), ON THEIR OWN BEHALF, PURSUANT TO THE
FOLLOWING BACKGROUND, RECITALS AND CLAUSES:

BACKGROUND

          Whereas,
on August 20, 2007, USPM and the Owners executed a Temporary Occupancy and
Easement Rights Agreement (the “Original Agreement”), whereby the Owners
granted to USPM an exclusive right to use and occupy the lands of their ownership
that partially cover the mining lots where the mining concessions of USPM are
located, set forth in Annex A of the Original Agreement (the “Mining
Concessions”).

RECITALS

	
  

 	
  

 
	
 I.

 	
 USPM hereby
 represents through its legal representative that:

 
	
  

 	
  

 
	
  

 	
           1.     It
 is a company duly organized and incorporated pursuant to the laws of the
 United Mexican States, as evidenced in public deed number 15,970, dated March
 5, 2003, granted before Ms. Maria Guadalupe Perez Palomino, Notary number 91 of the Federal District,
 and which first true copy was duly registered before the Public Registry of
 Commerce of the Federal District under mercantile number 306,255.

 
	
  

 	
  

 
	
  

 	
           2.     Its
 legal representative has the necessary authority to enter into this Amendment
 Agreement and that such authority has not been limited, modified or revoked
 in any manner whatsoever, as evidenced in the public deed number 103,172, dated March 24, 2009, granted before Mr. Javier
 Arce Gargollo, Notary number 74 of the
 Federal District, and which first true copy was duly registered before the
 Public Registry of Commerce of the Federal District on April 6, 2009, under
 mercantile number 306,255.

 
	
  

 	
  

 
	
  

 	
           3.     It wishes to enter into this Amendment
 Agreement in order to amend Clauses First, Fifth and Fifteenth of the
 Original Agreement.

 
	
  

 	
  

 
	
 II.

 	
 The Owners
 hereby represents on their own behalf that:

 
	
  

 	
  

 
	
  

 	
           1.     They
 are the owners of the lands, which surface, boundaries and adjoining
 properties are specified in Annex A hereto (the “Lands”)
 consisting of public deed number 7,467, dated May 11, 1993, granted before
 Mr. Adolfo Orzoco Yepez, Notary substitute number 15 of Morelia, Michoacan,
 and which first true copy was duly registered before the Public Registry of
 Ownership of Morelia under volumes 205 and 240, registries 107 and 56 of the
 Book of Properties of the District of Tacambaro, municipality of Caracuaro,
 Michoacan.

 
	
  

 	
  

 
	
  

 	
           2.     As
 of the date of this Amendment Agreement, the Lands are free from any lien,
 encumbrances or limitations of ownership whatsoever.

 

	
  

 	
  

 
	
  

 	
           3.     They
 recognize and acknowledge that the Mining Concessions owned by USPM and
 identified in the Original Agreement are located within the boundaries of the
 Lands according to the map attached hereto as Annex B, which shows the
 information related to the starting point and its corresponding coordinates,
 to the auxiliary line or lines and to the perimeter of land subject matter of
 the temporary occupancy and easement, as well as the link to the starting
 point of each of the Mining Concessions benefited by such temporary occupancy
 and easement.

 
	
  

 	
  

 
	
  

 	
           4.     They
 wish to enter into
 this Amendment Agreement in order to amend Clauses First, Fifth and Fifteenth
 of the Original Agreement.

 
	
  

 	
  

 
	
 III.

 	
 The parties
 hereby represents that:

 
	
  

 	
  

 
	
  

 	
           1.     They execute this Amendment Agreement freely
 and at their own will, and that there has been no error, fraud, duress or bad
 faith between them in its execution.

 

Pursuant to the above, the parties agree the following:

CLAUSES

FIRST.- USPM
and the Owners hereby agree to amend Clause First of the Original Agreement in
order to delete the definitions of “Annual Rent” and “Occupancy Rights” and
insert the following definitions instead:

	
  

 	
  

 
	
  

 	
  “Annual Rent”.- Shall mean the
 annual rent set forth in Clause Fifth of this Agreement to be paid by THE
 COMPANY to MR. VICTORIO AND MS. IRMA for the use, occupancy and easement of
 the Mining Occupancy Lot pursuant to the terms of Clause Fifth.”

 
	
  

 	
  

 
	
  

 	
  “Occupancy and Easement Rights”.-
 Shall mean the exclusive right to use and occupy, during the term of this
 Agreement, the lands covered by the Mining Occupancy Lot, in order to perform
 the Mining Activities, as well as a voluntary easement which will be
 irrevocable, continuous and for value consideration, regarding the Lands
 during the term of this Agreement or until THE COMPANY performs the Mining
 Activities, whichever is longer, in order for THE COMPANY to have the right
 of way and the right of use of the Lands being able to freely pass through
 the same and to install machinery, equipment and facilities necessary for the
 performance of the Mining Activities.”

 

SECOND.- USPM
and the Owners hereby agree to amend Clause Fifth of the Original Agreement,
which once amended hereinafter must be read as follows:

	
  

 	
  

 
	
  

 	
  “5. Rent.- As consideration for the
 assignment of the Occupancy and Easement Rights subject matter of this
 Agreement, THE COMPANY shall pay MR. VICTORIO AND MS. IRMA an Annual Rent
 equal to the amount of One Hundred Twenty Six Thousand and Eight Hundred
 00/100 Mexican Pesos (MX$126,800.00), lawful currency in the United Mexican
 States, which includes the corresponding value added tax. The Annual Rent
 shall be paid in two installments to be done within the first five (5) days
 of the months of April and October of each year. The parties agree that the
 Annual Rent shall be adjusted on a yearly basis according to the variation of
 the Index of Prices applicable to the immediate twelve months prior to the
 date when the first installment of the Annual Rent may be required.

 

2

	
  

 	
  

 
	
  

 	
 5.1 MR. VICTORIO AND MS. IRMA shall issue
 an invoice that meets the applicable tax requirements upon each payment of
 the Annual Rent. Since the Annual Rent includes the corresponding value added
 tax, the payment of such tax shall be borne by MR. VICTORIO AND MS. IRMA, who
 hereby release the COMPANY from any liability in connection with the payment
 of such value added tax or any other tax.

 
	
  

 	
  

 
	
  

 	
 5.2 In the event of any dispute between THE
 COMPANY and MR. VICTORIO AND MS. IRMA in connection with the fixing of the
 Annual Rent, THE COMPANY, at its own cost and prior to the notice of the
 commencement of the Commercial Production, shall request and obtain the
 Appraisal from the Commission. A certified copy of the Appraisal shall be
 attached to the notice of starting of Commercial Production.”

 

THIRD.- USPM
and the Owners hereby agree to amend Clause Fifteenth of the Original Agreement
in order to substitute the term “Monthly Rent” for the term “Annual Rent”.

FOURTH.-
The parties hereby acknowledge that the first installment of the Annual Rent,
corresponding to the period started on April of this year, has been fully paid
by USPM to the Owners.

FIFTH.- The parties
agree and covenant that the execution of this Amendment Agreement shall not
imply any modification, novation or extinction of any rights and
obligations under the Original Agreement and all the terms and conditions of
the Original Agreement shall remain valid and in full effect except for Clauses
First, Fifth and Fifteenth of the Original Agreement which amendments are the
main purpose of this Amendment Agreement. All defined terms which meaning is
not defined in this Amendment Agreement shall have the meaning ascribed thereto
in the Original Agreement

SIXTH.- USPM
and Mr. Victorio Gutierrez Cardenas agree that through the execution of this
Amendment Agreement, the Temporary Occupancy and Easement Rights Agreement
executed on August 20, 2007 by and between Mr. Victorio Gutierrez Cardenas and
USPM, ratified before Mr. Emilio Solorzano Solis, Notary Public number 97 of
Morelia, Michoacan is terminated and without any legal effect. The parties
hereby acknowledge that there is no obligation outstanding related to said
agreement and, therefore, grant each other the broadest release as permitted by
applicable law, waiving any action or right that they may have against each
other under such agreement.

SEVENTH.- This
Amendment Agreement and the Original Agreement shall be governed by the Civil
Code for the State of Michoacan and, in the event of any controversy, the
parties agree to irrevocably submit themselves to the jurisdiction of the
courts of Mexico City, Federal District, Mexico, expressly waiving herein any
other jurisdiction to which they may be entitled by reason of their present or
future domiciles or otherwise

(Signature Page Follows)

3

PURSUANT TO
THE FOREGOING, the parties, knowledgeable of its legal force and effect, sign
four copies of this Amendment Agreement; USPM shall keep two copies and each of
the Owners one of the two remaining, in the city of Morelia, Michoacan, United
Mexican States, on _______ __, 2009.

	
  

 	
  

 
	
  “USPM”

 	
  “THE OWNERS”

 
	
 U.S. Precious Metals de Mexico, S.A. de C.V.

 	
  

 

	
  

 	
  

 
	
 _________________________

 	
 _________________________

 
	
 Mr. David Wayne Burney

 	
 Mr. Victorio Gutierrez Cardenas

 
	
 Legal Representative

 	
 On its own behalf

 
	
  

 	
  

 
	
  

 	
 _________________________

 
	
  

 	
 Ms. Irma Bañuelos Serrato

 
	
  

 	
 On its own behalf

 

WITNESSES

	
  

 	
  

 
	
 __________________________

 	
 _________________________

 
	
 Name:

 	
 Name:

 
	
 Address:

 	
 Address:

 

ANNEX
A

PUBLIC
DEED CONTAINING THE OWNERSHIP OF THE LANDS

ANNEX B

MAP
OF THE MINING CONCESSIONS, SHOWING THEIR LOCATION WITHIN THE LANDSExhibit 10.7 

LEASE AGREEMENT ENTERED BY
AND BETWEEN ENG. SALOMON ROSALES LIRA, AS LESSOR, AND US PRECIOUS METALS DE
MEXICO SA DE CV, AS LESSEE, REPRESENTED HEREIN BY ENG. CARLOS BECERRA DAVALOS,
REGARDING THE WAREHOUSE LOCATED AT AV. JACARANDA 119. THE CONTRACTING PARTIES
AGREE TO BE SUBJECT TO THE FOLLOWING:

TERMS

FIRST. BOTH PARTIES
ACKNOWLEDGE EACH OTHER’S CAPACITIES. THE PROPERTY SUBJECT MATTER OF THE LEASE
AGREEMENT IS LOCATED AT JACARANDA 119 COL. LOS ANGELES, MORELIA, MICH.

SECOND. THE NET RENT SHALL
BE $26,500.00 (TWENTY-SIX THOUSAND FIVE HUNDRED PESOS 00/100 NATIONAL
CURRENCY), AFTER VAT AND WITHHOLDINGS. THE RENT SHALL BE PAID THE FIRST DAYS OF
EACH MONTH BY MEANS OF DEPOSIT IN BANORTE ACCOUNT NO. 0144775916 IN THE
LESSOR’S NAME, WITHOUT THE NEED OF REQUIREMENT FOR PAYMENT AND IN ADVANCED
MONTHLY INSTALLMENTS. AFTER THE FIFTH DAY OF EACH MONTH, A 10% LATE CHARGE
SHALL BE CHARGED. AFTER THE TENTH DAY OF DELAY IN PAYMENT, THE LESSOR SHALL
TAKE POSSESSION OF THE WAREHOUSE AND OF THE GOODS KEPT THEREIN TO GUARANTEE THE
RENT PAYMENT.

THIRD. THE LEASE AGREEMENT
SHALL HAVE A TERM OF DURATION OF 2 YEARS, FROM FEBRUARY 1, 2009 TO FEBRUARY 1,
2011. AFTER THE FIRST YEAR, THE RENT SHALL INCREASE ACCORDING TO THE COST OF
LIVING INDEX INCREASE ISSUED BY BANCO DE MEXICO.

FOURTH. THE PROPERTY
SUBJECT TO LEASE SHALL BE USED AS WAREHOUSE AND A CHANGE IN THIS USE SHALL BE
GROUNDS FOR TERMINATION.

FIFTH. THE LESSEE RECEIVES
THE PROPERTY IN PERFECT CONDITION AND IS BOUND TO RETURN IT IN THE SAME
CONDITION WITHOUT DAMAGES TO WALLS, FLOORS, ROOFS, ELECTRIC INSTALLATIONS, ETC.
AND DOES NOT PROVIDE ANY AMOUNT AS SECURITY DEPOSIT.

SIXTH. SINCE THE LESSEE
WAIVES THIS BENEFIT, UPON EXPIRATION OF THE TERM OF THIS AGREEMENT, THERE IS NO
POSSIBILITY OF EXTENSION.

SEVENTH. THE LESSEE
RECEIVES THE PROPERTY UP-TO-DATE IN REGARDS TO THE PAYMENT OF WATER AND
ELECTRICITY BILLS AND UNDERTAKES TO RETURN IT UP-TO-DATE WITH THE PAYMENT OF
THOSE SERVICES.

EIGHTH. DELAY IN PAYMENT
FOR TEN DAYS SHALL BE GROUNDS FOR TERMINATION OF THE AGREEMENT. THE LESSEE
AGREES TO RETURN IT IMMEDIATELY TO THE LESSOR WITHOUT ANY TYPE OF OBJECTION.

NINTH. FOR THE
INTERPRETATION OF THIS AGREEMENT, THE PARTIES EXPRESSLY SUBMIT TO THE
JURISDICTION OF THE COURTS OF MORELIA, MICH., WAIVING ANY OTHER VENUE TO WHICH
THEY MAY BE ENTITLED.

IN MORELIA, MICH. ON
FEBRUARY 1, 2009.

	
  

 	
  

 	
  

 
	
 ENG.
 CARLOS BECERRA DAVALOS

 	
  

 	
 ENG.
 SALOMON ROSALES LIRA

 
	
 RELACIONES
 EXTERIORES #50

 	
  

 	
 JACARANDA
 119 COL. LOS ANGELES

 
	
 COL. 5 DE
 DICIEMBRE, MORELIA

 	
  

 	
 MORELIA,
 58000

 
	
  

 	
  

 	
  

 
	
                   [signature]

 	
  

 	
                   [signature]

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