Document:

EXHIBIT 10.7

                            ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT  ("Agreement")  dated as of July 14, 2004, by Gold
and Minerals Co. Inc. a Nevada corporation, or it's assigns ("Seller") Mr. Larry
Lozensky  (President) and EL Capitan Precious Metals, Inc., a Nevada corporation
("Buyer") Mr. Charles C. Mottley (CEO),  is made with reference to the following
facts.

A.    Seller owns certain assets,  including mining claims granted by the United
      States  Bureau of Land  Management  (the  claims)  including  rights under
      certain contracts,  known as the Weaver Mine which is more fully set forth
      in Exhibit A attached hereto (the Quit Claim deed).

B.    Buyer is desirous of acquiring the Purchased Assets and of assuming all of
      Sellers  right,  title and  interest  in and to the  Weaver  Creek  mining
      claims.

NOW,  THEREFORE,  in  consideration  of the mutual  agreements,  warranties  and
representations  contained  in this  agreement,  the  parties  hereby  agree  as
follows.

1. "Purchase  Assets."  Seller agrees to sell and transfer,  and Buyer agrees to
purchase  the  Purchased  Assets  free  and  clear  of  all  liens,  claims  and
encumbrances  by delivery of a "Quit-Claim"  deed  substantially  in the form of
Exhibit A attached.

2.  "Assignment of Rights."  Seller will assign and Buyer will accept and assume
all of Seller's  rights,  title and  interest in and to the Weaver  Creek mining
claims.

3.1 "Purchase  Price." The purchase price for the Purchased  Assets shall be the
issuance to Seller of One Million  (1,000,000)  shares of the common stock of EL
Capitan Precious Metals, Inc. common stock effective immediately.

3.2 BUYER SHALL NOT ASSUME OR BE RESPONSIBLE  FOR ANY LIABILITIES OR OBLIGATIONS
OF SELLER  INCLUDING  WITHOUT  LIMITATION,  ANY  LIABILITIES  WHICH  SELLER  HAS
OBLIGATED TO SATISFY PRIOR TO CLOSING  DATE, OR FOR ANY FEDERAL,  STATE OR LOCAL
TAX LIABILITY OF THE SELLER.

4. Closing.  The consummation of the transactions  contemplated by the Agreement
(the  "Closing") will take place at the offices of Gold & Minerals Inc. July 14,
2004 or at such  other date and time as Buyer and  Seller  agree  (the  "Closing
Date").  At the closing,  Seller shall deliver to Buyer the Quit-claim Deed, and
such Bills of Sale,  Assignments  and  Instruments of Transfer and Conveyance as
shall be reasonably be required by Buyer for the transfer to Buyer of all right,
title and  interest  of Seller  in, to and under the  Purchased  Assets  and the
Mining  Business.  Each  party  shall also  deliver  to each other such  Officer
Certificates and other instruments as the other party shall reasonably  request.
Upon  delivery of all of the  foregoing,  the  Deposit  shall be applied to, and
Buyer shall make delivery of the Shares as provided in foregoing Section 3:1 and
the transaction shall be closed.

5.    Other Agreements of the Seller.

(a)   Investigation.  Seller  shall  allow  Buyer  and its  representatives  and
      persons or entitles  which may provide  financing  for Buyer in connection
      with the transactions  contemplated  hereby, at all reasonable times, full
      access during normal business hours to all stores, warehouses, operations,
      machinery equipment,  inventories  property,  offices,  books,  contracts,
      commitments,  records and  affairs of the Seller and the Mining  Business,
      and reasonable  access to third parties having business  dealings with the
      Seller, for the purpose of familiarizing themselves with the operation and
      conduct of all aspects of their business and for the purpose of reasonable
      inspection, examination, audit, counting and copying such access shall not
      unreasonably  interfere  with the  operation  and  conduct  of the  Mining
      Business.

6.    Representation of the Seller. Seller and the Principals hereby jointly and
      severally represent and warrant to Buyer as follows:

(a)   Organization of Authority. Seller is a corporation duly organized, validly
      existing and in good standing under the laws of the State of Nevada.  This
      Agreement has been duly  authorized by all requisite  corporate  action on
      the part of the Seller,  and  constitutes the valid,  binding  enforceable
      obligation of Seller and the Principals.

(b)   Title to the Purchase Assets.  Seller is the lawful owner and has good and
      marketable  title  to all of the  Purchased  Assets  unto  Buyer  and  its
      successors and assigns  against  claims of any third  parties.  Seller has
      authority to sell and transfer the  Purchased  Assets,  which are (i) free
      and clear from any liens or  encumbrances,  and (ii) are in good operating
      condition  and repair,  ordinary  wear and tear accepted and are usable in
      the ordinary course of business.

(c)   Seller's  Liabilities.  Seller does not have any  liability or  obligation
      (direct or indirect,  contingent or absolute,  known or unknown, mature or
      unmatured of any nature whatsoever, whether arising out of contract, tort,
      statute or other ("Liabilities"),  except (i) as specifically disclosed in
      Schedule _____ attached here to (ii) Liabilities  incurred in the ordinary
      course of business  which will not  individually  or in the  aggregate  be
      materially  adverse to, or result in a material increase in the current or
      long term  Liabilities or obligations of Seller.  To the best knowledge of
      the Principals,  upon due inquiry, there is no basis for assertion against
      Seller of any Liabilities accept for Liabilities.

(d)   Compliance with Laws. Seller has complied with and is not in default under
      any applicable law, ordinance  regulation or order, the violation of which
      would  materially and adversely  affect the Purchased Assets or Contracts.
      There is no litigation  proceeding or investigation pending or known to be
      threatened  which might  materially  and  adversely  effect the  Purchased
      Assets,  the  Claims  or the  Mining  Business.  Seller  holds  all of the
      franchises,  permits and  licenses  reasonably  necessary  to enable it to
      operate the Mining Business as presently conducted.

(e)   The Claims.  The claims are legal,  valid,  binding and enforceable claims
      granted by the United  States  Bureau of Land  management to Seller and to
      the knowledge has any other party thereto,  violated any provision thereof

                                       2
<PAGE>

      and  complete  copies of all of the Claims  disclosed on Exhibit A of this
      Agreement  have been  delivered to Buyer.  Except as set forth on Schedule
      _____ none of the Claims is subject to modification,  lapse or termination
      not as the consent of any party  required,  as result of the execution and
      delivery of this  agreement  or the  consummation  of the  transaction  it
      contemplates.

(f)   Taxes.  Seller has duly filed all  federal,  state,  local and foreign tax
      returns necessary to be filed by it and has duly paid all taxes (including
      any  interest  or  penalties)  which  are or will be due or  payable  with
      respect to taxes.  There are no known or  proposed  penalty,  interest  or
      deficiency  assessments  with  respect to taxes that  require  payment by,
      relate to or could adversely affect the purchased assets.

(g)   Real  Estate  and  Leases.   There  is  disclosed  in  Schedule  _____  (a
      description  of all real estate  (including  buildings  and  improvements)
      owned or leased by Seller  according to the  character of the property and
      the  location  thereof.  Seller is not and, to the best  knowledge  of the
      Principals,  no other party thereto, is in default in any material respect
      under any real property  lease nor has any event  occurred  which with the
      passage  of time or  giving  of notice  or both  would  constitute  such a
      default.  No encumbrances  have been placed,  or have been permitted to be
      placed by the  Principals,  the Seller or any of their  affiliates  on the
      real  property.  Except as disclosed on Schedule ___ the real property and
      the buildings thereon owned or utilized by the Corporations in the conduct
      of the  Corporations do not violate any building,  zoning or other laws or
      ordinances,  or any agreements,  applicable thereto,  and no notice of any
      such violation or claimed violation or of any condemnation proceedings has
      been received by the Seller or the Principals.

(h)   Environmental  Matters.  Except as disclosed in Schedule _____ to the best
      knowledge of Seller and the Principals after due inquiry and investigation
      (i) the  Purchased  Assets  materially  comply with any law or  regulation
      governing the protection of the environment  (including  air, water,  soil
      and natural  resources) or the use storage handling release or disposal of
      any hazardous or toxic substance  ("Environmental  Laws"), (ii) Seller has
      not  received  any  written  notice  from  any  federal,   state,  county,
      municipal,  local  or  foreign  government  and any  governmental  agency,
      bureau,  commission,  authority or body alleging that the Purchased Assets
      are in violation of any applicable  Environmental Law, (iii) the Purchased
      Assets are not the subject of any court order  administrative order or any
      decree  existing  under any  Environmental  Law,  and (iv) to the Seller's
      knowledge  the  Acquired  Assets  have not been  used for the  generation,
      storage  discharge or disposal of any  Hazardous  Substances as defined in
      and except as permitted under applicable Environmental Laws.

(i)   Completeness  of  Statements.   No  representation  or  warranty  in  this
      Agreement  and no  statement  set forth in any  schedule  attached  hereto
      contains any untrue  statement of any material fact, or omits to state any
      material  fact  necessary  to make the  statements  contained  therein not
      misleading.

(j)   Operation in the Ordinary Course. During the period from December 31, 2002
      to and  including  the  Closing  Date  (i) the  Mining  Business  has been
      operated in the usual regular and ordinary course,  (ii) there has been no
      damage destruction or loss or any event materially adversely affecting the

                                       3
<PAGE>

      assets or the  business  or Seller,  (iii) there has been no sale or other
      disposition of assets of the Mining  Business of the kind and character of
      the  Purchased  Assets other than in the  ordinary  course of business and
      (iv) there has been no material change in the level of net working capital
      no incurrence on any funded debt from third party lenders and no dividends
      or other  distributions to the shareholders of Seller (other than salaries
      in the ordinary course of business).

(k)   Employment  Matters.  Seller is not a party to any contract with any labor
      organization,  not has the Seller  agreed to recognize  any union or other
      collection  bargaining  unit,  nor  has  any  union  or  other  collective
      bargaining unit been certified as representing any of the employees of the
      Seller with respect to the operation of the Business and as of the date of
      this Agreement,  Seller is not experiencing  any strikes,  work stoppages,
      significant  grievance proceedings or to the knowledge of Seller claims of
      unfair  labor  practices  filed  with  respect  to  the  operation  of the
      Business.  Seller does not have any  "employee  benefit  plans" within the
      meaning of Section 3(3) of ERISA covering employees of Seller.

(l)   Insurance.  Schedule  _____  contains  a list  of all  insurance  policies
      specifying (a) the insurer, (b) the amount of the coverage (c) the type of
      insurance  (d) the policy  number  and (e) any  currently  pending  claims
      thereunder (or claims asserted there under or under similar policies since
      January  1,  2000  maintained  by  or on  behalf  of  the  Seller  on  its
      properties,  assets,  business or  personnel.  all such  policies are (and
      pending Closing will continue to be) in full force and effect,  and Seller
      is not in default in any material  respect  with respect to any  provision
      contained  in any  insurance  policies  nor has Seller  failed to give any
      notice or present  any claim there  under in due and timely  fashion.  All
      premiums due and payable on such policies  satisfying all  requirements of
      applicable  laws.  Also set forth on Schedule _____ is a list of all types
      of  liabilities  against which the Seller is  self-insured.  The insurance
      coverage  provided  by the  policies  by the  policies  therein  will  not
      terminate  or  lapse  or   otherwise  be  affected  by  the   transactions
      contemplated by this Agreement.

7.    Representation of Buyer.  Buyer represents and warrants to Seller that (i)
Buyer is a corporation  duly  organized,  validly  existing and in good standing
under the laws of the State of Colorado  and (ii) this  Agreement  has been duly
authorized by the Board of Directions of Buyer and constitutes the valid binding
and enforceable  obligation of Buyer, subject only to any requisite  shareholder
approvals with respect to the issuance of the Shares.

8.    Indemnification.  Seller and the Principals (solely in case of the
Principals  with respect to any going or negligently  wrongful  breach of any of
the representations and warranties set forth in foregoing Section ____) covenant
and agree with  Buyer  that they  shall  jointly  and  severally  reimburse  and
indemnify and hold Buyer  harmless  from,  against and in respect of any and all
liabilities or obligations of Seller which: (a) shall have occurred,  arising or
existed  prior to the date  hereof  (b) shall  arise out of any  breach of their
representations  warranties  or covenants  hereunder or (c) shall arise from any
failure  to  comply  with all  applicable  bulk  sales  and bulk  sales tax laws
affecting  the  transfers  contemplated  hereby.  Buyer  shall have the right to
withhold a pro-rata  portion of the Shares in  satisfaction  of, or as  security
for, the payment of any UN reimbursed claims of indemnity.

                                       4
<PAGE>

9.    Conditions to Obligation of Buyer.  The obligations of Buyer hereunder are
subject to the satisfaction of the following  conditions,  any one or more which
may be waived in whole or in part by buyer.

(a)   The  representations  and  warranties of Buyer set forth in this Agreement
      shall be true and correct in all material  respects as of the Closing Date
      as if made on and as of such date and Seller shall have duly  performed or
      complied with all of the  obligations  to be performed or complied with by
      it under  the terms of this  Agreement  on or prior to  Closing  and Buyer
      shall have  received a  certificate  dated the Closing Date to such effect
      from Seller.

(b)   There shall have been no material  adverse change in the Purchased  Assets
      or the Contracts.

(c)   Seller shall have  obtained  such consents of third as may be necessary to
      transfer such of the Purchased Assets as require consents.

(d)   Seller shall have paid,  prior to or  contemporaneously  with the Closing,
      all accounts payable,  trade creditors and other amounts owed to any third
      parties,  and shall  provide  Buyer with a  certified  list  thereof and a
      certificate  dated the  Closing  Date to such  effect  from Seller and the
      Principals.

(e)   Buyer shall be reasonably  satisfied with the results of its investigation
      of Seller and the Business, as provided in foregoing section ______.

(f)   Buyer shall be reasonable satisfied with the continuing  employment status
      of  the  Principals  and  other  key  employees,  pursuant  to  employment
      agreements reasonable satisfactory to Buyer, or otherwise.

(g)   Buyer shall have  obtained  any  requisite  approvals  of the  transaction
      contemplated  by this  Agreement by its  stockholders  and

(h)   Buyer shall have received the following closing documents from Seller:

      (i) Good Standing  Certificates. Certificates  of legal existence and good
      standing  dated within  five (5) days prior to the  Closing Date for Buyer
      from the State of Colorado.

      (ii)  Certified  Resolutions. Certified copies of resolutions of the board
      of directors of Buyer authorizing the execution,  delivery and performance
      of  this  Agreement  and  all  acts of  Buyer  required  or  advisable  in
      connection with the transactions contemplated hereby.

      (iii) Certified  Charter.  A true and complete copy of the Certificate  of
      Incorporation of Buyer, certified  by the Secretary of State of Nevada and

      (iv)  Other.  Such  other  documents  as  counsel  for  the  Seller  shall
      reasonably request.

                                       5
<PAGE>

10.   Conditions to Obligations of Seller and the Principals. The obligations of
      Seller and the Principals hereunder are subject to the satisfaction of the
      following  conditions,  any one or more of which may be waives in whole or
      part by them:

(a)   The  representations  and  warranties of Buyer set forth in this Agreement
      shall be true and correct in all material  respects as of the Closing Date
      as if made on and as of such date,  and Buyer shall have duly performed or
      complied with all of the  obligations  to be performed or complied with by
      it under the terms of this  Agreement  on or prior to  Closing  and Seller
      shall have  received a  certificate  dated the Closing Date to such effect
      from Buyer.

(b)   Seller shall have received the following closing documents from Buyer.

      (i)   Good  Standing  Certificates.  Certificates  of  legal existence and
      good standing  dated within (5) days prior to the  Closing Date for Seller
      from the State of Nevada;

      (ii)  Certified  Resolutions.  Certified  copies   of  resolutions  of the
      board of directors and shareholders  of  Seller authorizing the execution,
      delivery and performance of this Agreement and all acts of Seller required
      or advisable in connection with the transactions contemplated hereby;

      (iii) Certified  Charter.  A true and complete copy of the Certificate  of
      Incorporation  of  Seller certified  by the  Secretary  of  State required
      or advisable in connection with the transactions contemplated hereby;

      (iv)  Other.  Such  other  documents  as  counsel  for  the  Seller  shall
      reasonably request.

11.   Payment of Expenses.  Regardless of whether the Closing  shall occur,  the
Principals  shall pay all  expenses  incurred by on their behalf or on behalf of
the Seller  (unless  the parties  shall have  agreed,  in writing  prior to such
expenses  having been  incurred,  that such  expenses  are for the  post-closing
benefit of the  Business,  in which case the Buyer will pay (or permit Seller to
pay) for such  expenses),  and Buyer  shall pay all  expenses  incurred by or on
behalf of Buyer in connection  execution and delivery of this  Agreement and the
other  agreements and documents  referred to herein and the  consummation of the
transactions  contemplated  hereby and thereby.  If and audit of the Business is
required  by Buyer,  Seller at no  additional  expense to Buyer will assist with
audit  preparation  by preparing  work papers and lead sheets,  and by providing
other relevant  services  consistent with acceptable  audit  procedures with the
preparation  by  preparing  work papers and lead sheets and by  providing  other
relevant services consistent with acceptable audit procedures.

12.  Commissions and Finder's Fees. Buyer, on the one hand, and the Principal on
behalf of themselves  and the Seller,  on the other hand,  represent and warrant
that none of them has retained or used the services of any  individual,  firm or
corporation in such manner as to entitle such individual, firm or corporation to
any  compensation for broker's or finder's fees with respect to the transactions
contemplated hereby for which the other may be liable.

13. Exclusivity;  Termination; Highly Confident. For a period of sixty (60) days
from the date of execution of this Agreement,  neither Seller the Principals nor
any of their  employees or advisors will discuss the proposed  transaction  with
any  other  party  or  otherwise  promote,  cooperate  in or be  involved  in or
encourage  discussions  regarding  the sale of the  stock or assets of Seller as
contemplated  herein.  The parties  agree to proceed  expeditiously  and in good
faith to consummate the proposed transaction.

                                       6
<PAGE>

14.  Governing  Law. The  Agreement  shall be construed in  accordance  with the
internal laws of the State of Colorado.

15.  Successors and Assigns.  This Agreement  shall be binding upon and inure to
the benefit of the  respective  successors of Seller,  the Principals and Buyer.
Neither party hereto may assign its right or  obligations  under this  Agreement
without the written consent of the other, which consent will not be unreasonably
with held.

16.  Entire  Agreement.  This  Agreement  sets  forth the entire  agreement  and
understanding  of Seller,  the  Principals and Buyer with respect to the subject
matter  hereof  and  supercedes  all  prior  contemporaneous   written  or  oral
agreements,   understandings  or  representations  which  are  not  specifically
contained  herein.  This  Agreement may be amended or modified only by a written
instrument signed by Seller, the Principal and Buyer.

17.  Disputes.  The  parties  agree to attempt  to resolve  any claim or dispute
arising  out of or  relating  to this  Agreement  by  mediation  and good  faith
reasonable  negotiation  prior to resorting to any  litigation or other judicial
process.

18. Publicity.  No notices to third parties (including press releases) or to any
employees,  suppliers or customers of Buyer or Seller (other than key management
and other  persons  whose  knowledge  is  required),  shall be made by any party
hereto unless  mutually  agreed to,  planned and  coordinated  jointly among the
parties hereto.

19.  Counterparts.  This Agreement may be executed in two or more  counterparts,
each of which shall be deemed an original, but all of which taken together shall
constitute one and the same Agreement.

IN  WITNESS  WHEREOF,  Seller,  the  Principals,  and Buyer have  executed  this
Agreement as of the date first above written.

El Capitan Precious Metals, Inc.                     Gold and Minerals Co. Inc.
("Buyers")                                                    ("Sellers")

By s/Charles C. Mottley                              BY s/Larry L. Lozensky
   ---------------------------------                    ------------------------
Its:     CEO, President                              Its:     President

                                       7EXHIBIT 10.8

                             JOINT VENTURE AGREEMENT

      THIS  AGREEMENT  mired into this the 11th day of May, 2004, by and between
U.S. Canadian Minerals, Inc. ("U.S.  Canadian"),  of Las Vegas, state of Nevada,
and El Capitan  Precious  Metals,  Inc. (El  Capitan),  of  Englewood,  state of
Nevada.

      WITNESSETH:

      WHEREAS, (U.S. Canadian) is in the business of

      Acquiring and Funding Mining Property                            , and

      WHEREAS, (El Capitan) is in the business of:

      Operating Mining Property                                        , and

      WHEREAS, both parties desire to work together for the purpose of

      Developing the COD Mining Claim

      NOW THEREFORE,,  for good and valuable consideration,  receipt of which is
hereby  acknowledged,  and the mutual promises and benefits to be derived by the
parties, they do hereby agree to the following terms and conditions:

                                   ARTICLE I

                                   FORMATION

SECTION 1.1    Formation and Name.

        1.1.1  FORMATION. The Joint Venturers hereby confirm that they have
formed a Joint Venture for the purposes and scope set forth in this agreement.

        1.1.2  NAME. The name of the Joint  Venture is and shall  continue to be
CanEll  ("CanEl").  The  business  and  affairs  of the Joint  Venture  shall be
conducted  solely under that name and under no other unless  modified in writing
by addendum to this agreement:

SECTION 1.2    PURPOSES and Scope of the Joint Venture.

        The purpose of the Joint Venture is to:

        Explore, operate and otherwise utilize the COD Mining Claim.

<PAGE>

SECTION 1.3    PRINCIPAL Place of Business.

         The principal place of business of the Joint Venture shall be Initially
located at:

4955 S. Durango, #216, Las Vegas, NV 89113.

SECTION 1.4    TERM.

         The term of the Joint Venture shall commence on the first above written
day, and shall  continue,  unless sooner  terminated  in  accordance  with other
provisions of this Agreement, until May 11, 2020.

SECTION 1.5    No Partition.

         No Joint Venturer  shall have the right and each Joint Venturer  hereby
agrees  not to  withdraw  from the Joint  Venture  nor to  dissolve,  terminate,
partition,   or  liquidate,   or  to  petition  a  court  for  the  dissolution,
termination,  partition,  or  liquidation  of the Joint  Venture or its  assets,
except as  provided  for in this  Agreement,  and no Joint  Venturer at any time
shall have the right to petition or to take any action to subject the  operation
of the  Project  or any part  thereof  or the Joint  Venture  assets or any part
thereof to the authority of any court of bankruptcy,  insolvency,  receivership,
or similar proceeding.

                                   ARTICLE II

                    CAPITAL CONTRIBUTIONS, RESERVES, VOTING,
                          FINANCING, AND DISTRIBUTIONS

SECTION 2.1    Joint VENTURE Percentage Interest.

U.S.  Canadian shall receive 80% of the interest in the mining claims designated
as the  COD  Mining  Claim,  currently  owned  by El  Capitan  and  whose  legal
description is attached as Exhibit A in exchange for 720,000 newly issued shares
of U.S.  Canadian.  The items in this  paragraph are property of the parties and
not the joint  venture  and are not  subject to  termination  or sale to satisfy
liabilities of the Joint Venture.

El Capitan  shall  operate the  operations  as they relate to the  tailings  and
settlement pond and contribute the equipment  needed for such  operations.  U.S.
Canadian shall  contribute to the operating  capital for 90 days which shall not
exceed the wages for 3 or 4 workers,  fuel and equipment repair and maintenance,
and necessary equipment for operation approved by J.V. Partners.  The net profit
from the tailings and settlement pond operations  shall be split 50-50 among the
parties.

SECTION 2.2    ADJUSTMENTS and Interest.

         Unless otherwise approved by the Joint Venturers,  no adjustment to the
Percentage  Interest of any Joint  Venturer  shall be made  except as  otherwise
provided herein or as a result of a transfer of a Joint Venturer's Joint Venture
interest or a portion thereof.

<PAGE>

SECTION 2.3    CAPITAL Accounts.

2.3.1  GENERAL.  As used  herein,  the term Capital  Account  shall refer to the
capital  account  of each  Joint  Venturer  reflecting  the value of each  Joint
Venturer's  relative  interest  in the capital of the Joint  Venture.  A Capital
Account,  as defined  herein,  shall be maintained  for each Joint  Venturer and
shall be subject to adjustment as provided in subsection 2.3.3.

2.3.2 INITIAL CAPITAL  CONTRIBUTION AND INITIAL  CAPITAL.  Upon the execution of
this Agreement,  the parties shall make contributions as stated in paragraph 2.1
of this Agreement.

SECTION 2.4    Allocations of Profits and Losses to Joint Venturers.

         All profits shall be retailed by U. S, Canadian other than as disclosed
in 2.1.

SECTION 2.5    Time LIMIT for Approval

         Where an issue arises  needing a vote,  such vote shall be given within
five (5)  calendar  days of a written  request  by the  other  party for a vote.
Should a response not be returned  within the stated period,  then the vote will
be considered in the affirmative.

                                  ARTICLE III

                                   MANAGEMENT

SECTION 3.1    JOINT Venture Manger.

U.S.  Canadian  is hereby  appointed  Manager  or  Venture  Manager of the Joint
Venture and shall be responsible for the internal operation of the venture.  Any
direct cost incurred shall be paid out of Joint Venture funds.

SECTION 3.2    Other BUSINESS Activities.

         Nothing  herein is to be  construed  as giving any party an interest in
other  business of the  parties  except  those  construed  specifically  by this
Agreement or incorporated by an amendment hereto.

         The parties  mutually  acknowledge  that each is involved in additional
businesses  and are not  restricted to  participating  with each other except as
stated in the first right of refusal for additional projects.

                                   ARTICLE IV

                                   ACCOUNTING

SECTION 4.1    Books, RECORDS, and Fiscal Year.

4.1.1  GENERAL.  The  Joint  Ventures  books and  records  of  account  shall be
maintained  in  accordance  with  generally   accepted   accounting   principles
consistently  applied on the cash  basis and shall be  adequate  to provide  any

<PAGE>

Joint  Venturer  with all  financial  information  as may be needed by any Joint
Venturer or any Affiliate of any Joint  Venturer for purposes of satisfying  the
financial  reporting  obligations of any Joint Venturer or his or its respective
affiliate  or  affiliates.  The fiscal  year of the Joint  Venture  shall end on
December 31 of each year. The books and records shall be maintained at the Joint
Ventures' principal place of business.

SECTION 4.2    Other ACCOUNTING Decisions.

         All accounting decisions and tax elections for the Joint Venture (other
than those specifically  provided for in other Sections of this Agreement) shall
be made from time to time as required and approved by the Venture Manager.

                                   ARTICLE V

                           SALE, TRANSFER, OR MORTGAGE

SECTION 5.1    GENERAL.

         Except as expressly  permitted  herein,  no Joint  Venturer shall sell,
sign, transfer,  mortgage,  charge, or otherwise encumber,  or permit any of the
foregoing,  whether  voluntarily  or  by  operation  of  law  (herein  sometimes
collectively  called a  transfer),  any part or all of his or its Joint  Venture
interest without the prior written  approval of the other Joint  Venturers,  and
any attempt to do so shall be void.

5.1.1   PERMITTED TRANSFERS

        (a) Any Joint Venturer may transfer or assign his or its interest in the
Joint Venture to any  corporation or general  partnership  that is controlled by
such Joint Venturer,  or to any limited  partnership in which the Joint Venturer
would be the general  partner,  and such transfers or  assignments  shall not be
subject to this SUBSECTION,,  but the transferee thereof shall be subject to all
the terms and conditions of this Agreement,  including  without  limitation this
subsection,  and as a condition precedent to any such transfer,  such transferee
shall enter into a written agreement agreeing to be bound by the terms hereof.

SECTION 5.2    CLOSINGS.

        5.2.1  TERMINATION  OF  OBLIGATIONS.  As of the  effective  date  of any
transfer not prohibited  hereunder by a Joint Venturer of its entire interest in
the Joint  Venture,  such  Venturers'  rights and  obligations  hereunder  shall
terminate  except  as to items  accrued  as of such  date and  except  as to any
indemnity  obligations  of such Joint  Venturer  attributable  to acts or events
occurring  prior to such date.  Thereupon,  except as  limited by the  preceding
sentence,  this Agreement shall terminate as to the transferring  Joint Venturer
but shall  remain in effect as to the other Joint  Venturers.  In the event of a
transfer of its or his entire  Joint  Venture,  interest by a Joint  Venturer to
another Joint Venturer,  the Joint Venturer to whom such interest is transferred
shall  indemnify,  defend,  and hold harmless the Joint Venturer so transferring
its or his Joint Venturer interest from and against any and all claims, demands,
liabilities,  expenses,  actions,  lawsuits,  and other proceedings,  judgments,
awards and costs  (including  reasonable  attorneys fees) incurred in or arising
directly or indirectly, in whole or in part, out of operation of the business of
the Joint Venture,  excluding only those matters listed above, if any,  accruing
prior to the date of such transfer.

<PAGE>

SECTION 5.3    WITHDRAWALS.

Each of the Joint  Venturers  does  hereby  covenant  and agree that it will not
withdraw  or retire  from the Joint  Venture,  except as a result of a permitted
transfer of its entire  interest in the Joint  Venture  pursuant to the terms of
this  Agreement,  and that it will  carry out its  duties  and  responsibilities
hereunder until the Joint Venture is terminated, liquidated, and dissolved.

                                   ARTICLE VI

                             DEFAULT AND DISSOLUTION

SECTION 6.1    EVENTS of Default.

        6.1.1  DEFINITIONS  AND  CURE  PERIODS.  The  occurrence  of  any of the
following  events  shall  constitute  an event of  default  (Event  of  Default)
hereunder  on the part of the Joint  Venturer  with  respect  to whom such event
occurs  (Defaulter) if within thirty (30) days following  written notice of such
default from the Joint Venture  Manager the Defaulter  fails to pay such monies,
or in the case of nonmonetary defaults, fails to commence substantial efforts to
cure such default or thereafter  fails within a reasonable  time to prosecute to
completion  with diligence and continuity the curing of such default;  provided,
however,  that the occurrence of any Act of Insolvency (as hereafter  defined in
subsection  6.1.2) shall  constitute an Event of Default  immediately  upon such
occurrence  without  any  requirement  of notice or  passage  of time  except as
specifically set forth in any such subparagraph.

        (a) the  violation by a Joint  Venturer of any of the  restrictions  set
forth in  Article  V of this  Agreement  upon the right of a Joint  Venturer  to
transfer its Joint Venture interest;

        (b)  default  in  performance  of or  failure  to comply  with any other
agreements, obligations, or undertakings of a Joint Venturer herein contained.

SECTION 6.2    CAUSES of Dissolution.

        The Joint  Venture shall be dissolved  only if a Dissolving  Event shall
occur. A Dissolving Event shall occur when:

        (a) An Event of Defaults has occurred as provided in Section 6.1 and the
nondefaulting  Joint Venturers elect to  dissolve the Joint  Venture as provided
in Section 6.3 hereof;

         (c) he Joint Venture,  by its terms as set forth in this Agreement,  is
terminated.

<PAGE>

SECTION 6.3    ELECTION OF NONDEFAULTING JOINT VENTURER.

        6.3.1 PURCHASE OF DEFAULTERS INTEREST.  Upon .the occurrence of an Event
of  Default  by any  Joint  Venturer  (Defaulter),  the  other  Joint  Venturers
(Nondefaulters)  shall have the right to acquire  all, but not less than all, of
the Joint  Venture  interest of the  Defaulter  for cash,  except as provided in
subsection  6.3.2  hereof,  at a  price  determined  pursuant  to the  appraisal
procedure set forth in Article VII,  subject to  adjustment as otherwise  herein
set  forth.  In  furtherance  of  such  right,  a  Nondefaulter   (the  Electing
Nondefaulter) may notify the Defaulter at any time following an Event of Default
of its election to institute the  appraisal  procedure set forth in Article VII.
Upon  receipt  of  notice  of  determination  of the  fair  market  value of the
Defaulters  Joint Venturer  interest,  the Electing  Nondefaulter may notify the
Defaulter of its election to purchase the interest of the Defaulter.

        6.3.3  DEFAULTERS  RIGHT TO CURE.  The right of a  Defaulter  to cure an
Event of Default  shall expire upon a Joint  Venturer  giving to the Defaulter a
notice of election to purchase the Defaulters interest in the Joint Venture.

        6.3.4  DISTRIBUTION  UPON  DISSOLUTION.  The assets of the Joint Venture
shall  be  applied  or  distributed  in  liquidation  upon  the  happening  of a
Dissolving Event in the following order of priority:

        (b) in  payment  of debts and  obligations  of the Joint  Venture to any
Joint Venturer;

        (c) to the Joint Venturers is the same manner and in the same priorities
and  percentages  as Net Proceeds are  allocated  and  distributed  to the Joint
Venturers as set forth herein.

                                  ARTICLE VII

                               GENERAL PROVISIONS

SECTION 7.1    Complete AGREEMENT; Amendment; Notice.

        7.1.1 ENTIRE AGREEMENT. This Agreement embodies the entire understanding
of the  parries,  and any  changes  must be made is  writing  and  signed by all
parties.

        7.1.2  AMENDMENT.  This instrument may be amended or modified only by an
instrument of equal formality signed by all of the respective parties hereto.

        7.1.3 NOTICE.  All notices under this Agreement  shall be in writing and
shall be delivered by personal  service,  or by  certified or  registered  mail,
postage  prepaid,  return receipt  requested,  to the Joint Venturers (and where
required,  to the person required to be copied with the notice) at the addresses
herein or at such other address as the  addressee may designate in writing,  and
to the Joint Venture at its principal  place of business as sot forth in Section
1.3 hereof, and shall be effective upon receipt (or refusal to accept).

<PAGE>

        The addresses for notices to the Joint Venturers are as follows:

U.S. Canadian Minerals, Inc.
4955 S. Durango #216
Las Vegas, NV 89113

El Capitan Precious Metals, Inc.
7315 East Parkview Ave.
Englewood, Co. 80111

SECTION 7.2    ATTORNEYS' Fees.

Should   litigation   be   commenced   between  the  parties   hereto  or  their
representatives, or should any party institute any proceeding in a bankruptcy or
similar court which has  jurisdiction  over any other party hereto or any or all
of his or its property or as concerning  any provision of this  Agreement or the
rights  and  duties of any parson or entity in  relation  thereto,  the party or
parties  prevailing in such  litigation  shall be entitled,  in addition to such
other  relief as may be granted,  to a  reasonable  sum as and for his or its or
their attorneys' fees and court costs in such litigation or in a separate action
brought for that purpose.

SECTION 7.3    VALIDITY.

        In the event that any  provision of this  Agreement  shall be held to be
invalid or  unenforceable,  the same shall not affect in any respect  whatsoever
the validity or enforceability of the remainder of this Agreement.

SECTION 7.4    SURVIVAL of Rights.

        Except as  provided  herein to the  contrary,  this  Agreement  shall be
binding  upon and inure to the benefit of the parties  signatory  hereto,  their
respective heirs, executors, legal representatives, and permitted successors and
assigns.

SECTION 7.5    GOVERNING Law.

        This  Agreement  has been entered  into in the state of Nevada,  and all
questions with respect to this  Agreement and the rights and  liabilities of the
parties  hereto  shall be governed  by the laws of Nevada,  and the venue of any
action brought hereunder shall be in Clark County, state of Nevada.

SECTION 7.6    WAIVER.

        No consent or waiver,  express or implied,  by a Joint Venturer to or of
any breach or default by another Joint Venturer in the performance by such other
Joint Venturer of its obligations hereunder shall be deemed or construed to be a
consent or waiver to or of any other  breach or default  in the  performance  by
such other Joint Venturer hereunder.  Failure on the part of a Joint Venturer to
complain  of any act or failure to act of another  Joint  Venturer or to declare
another  Joint  Venturer  in  default,  irrespective  of how long  such  failure
continues,  shall not  constitute a waiver by such Joint  Venturer of its rights
hereunder.  The giving of consent by a Joint  Venturer in any one instance shall
not limit or waive the necessity to obtain such Joint Venturer's  consent in any
future instance.

<PAGE>

SECTION 7.7    REMEDIES IN EQUITY.

        The rights and remedies of any of the Joint  Venturers  hereunder  shall
not be mutually  exclusive,  i.e., the exercise of one or more of the provisions
hereof shall not preclude the exercise of any other provisions  hereof.  Each of
the Joint Venturers  confirm that damages at law may be an inadequate remedy for
a breach or threatened  breach of this Agreement and agree that, in the event of
a breach or threatened breach of any provision hereof, the respective rights and
obligations hereunder shall be enforceable by specific performance,  injunction,
or other  equitable  remedy,  but nothing  herein  contained is intended to, nor
shall it,  limit or affect any rights at law or by statute or  otherwise  of any
party  aggrieved as against the other for a breach or  threatened  breach of any
provision  hereof,  it being the  intention  by this  Section  to make clear the
agreement of the Joint  Venturers that the respective  rights and obligations of
the Joint  Venturers  hereunder shall be enforceable in equity as well as at law
or otherwise.

SECTION 7.8    INDEMNIFICATION.

        Each Joint Venturer  (Indemnifying  Venturer) hereby agrees to indemnify
and hold the other  Joint  Venturers  and the Joint  Venture  harmless  from and
against any and all claims,  demands,  actions,  and rights of action (including
attorneys  fees and costs) that shall or may arise by virtue of anything done or
omitted  to be done by the  Indemnifying  Venturer  (through  or by its  agents,
employees,  or other representatives)  outside the scope of, or in breach of the
terms of, this  Agreement;  provided,  however,  that the other Joint  Venturers
shall be notified promptly of the existence of any such claim,  demand,  action,
or cause of action and shall be given  reasonable  opportunity to participate in
the  defense  thereof.  In the  event  that  one  Joint  Venturer  shall be held
severally  liable  for the  debts of the  joint  venture  he  shall  be  awarded
contribution  from the other Venturers so that each Joint Venturer shall only be
obligated to pay that portion of such  liability as shall be  proportion to such
Joint Venturers interest in the Joint Venture.

SECTION 7.9    COUNTERPARTS.

        This  Agreement may be executed in any number of  counterparts,  each of
which shall be deemed to be an original  and all of which shall  constitute  one
and the same Agreement.

SECTION 7.10   FURTHER ASSURANCES.

        Each party hereto agrees to do all acts and things and to make, execute,
and deliver such written  instruments  as shall from time to time be  reasonably
required to carry out the terms and provisions of this Agreement.

<PAGE>

        IN WITNESS  WHEREOF,  the parties have executed this Agreement as of the
day and year first above set forth.

         /s/ Rendal Williams, President
         ------------------------------------
         By: Rendal Williams, President
         U.S. Canadian Minerals, Inc.

         /s/ Charles C. Mottley
         ------------------------------------
         By: Charles C. Mottley, President
         El Capitan Precious Metals, Inc.

<PAGE>

                                    EXHIBIT A

                                 C.O.D. PROPERTY

--------------------------------------------------------------------------------
                                           COUNTY RECORDER       B.L.M.
                                                                 A.M.C. NOS.
-------------------------------------------------------------------------------
CLAIM NAME                            BOOK        PAGE
-------------------------------------------------------------------------------
JAYNE                                 841         806-907        175025
-------------------------------------------------------------------------------
KIM                                   841         808-809        175025
-------------------------------------------------------------------------------
ERIC                                  841         810-811        175015
-------------------------------------------------------------------------------
MARC                                  841         812-813        175030
-------------------------------------------------------------------------------
O.J.B.                                841         814-815        175033
-------------------------------------------------------------------------------
GOLDEN MOON                           841         816-817        175024
-------------------------------------------------------------------------------
RICO                                  841         834-835        175039
-------------------------------------------------------------------------------
NOON NO. 1                            841         832-833        175032
-------------------------------------------------------------------------------
WHITE EAGLE                           841         850-851        175044
-------------------------------------------------------------------------------
WHITE EAGLE #2                        841         852-853        175045
-------------------------------------------------------------------------------
REUBE                                 841         848-849        175035
-------------------------------------------------------------------------------
UNIT                                  841         846-847        175043
-------------------------------------------------------------------------------
RENO                                  841         844-845        175034
-------------------------------------------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]