Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Teryl Resources Corp. - Exhibit4.2

MINING VENTURE AGREEMENT
(creating the West Ridge Joint
Venture) 

made as of September 23, 1999, and
effective as of September
23, 1999
(see Sections 2.06 and 3.05) 

 

between 

 

FAIRBANKS GOLD MINING, INC. 

 

and 

 

TERYL, INC. 

TABLE OF CONTENTS 

	  	                                                                                                                                               	 Page No. 
	  	  	 
	ARTICLE 1: 	DEFINITIONS 	 
	  	  	 
	  	Accounting Procedure 	 
	  	Affiliate 	 
	  	Agreement 	 
	  	Area of Interest 	 
	  	Assets 	 
	  	Budget 	 
	  	Capital Account 	 
	  	Development 	 
	  	Exploration 	 
	  	FGMI 	 
	  	GIL Joint Venture Agreement 	 
	  	GIL Venture 	 
	  	Initial Contribution 	 
	  	Joint Account 	 
	  	Management Committee 	 
	  	Manager 	 
	  	Mining 	 
	  	Net Proceeds 	 
	  	Operations 	 
	  	Participant and Participants 	 
	  	Participating Interest 	 
	  	Prime Rate 	 
	  	Products 	 
	  	Program 	 
	  	Properties 	 
	  	Qualifying Expenses 	 
	  	TERYL 	 
	  	Transfer 	 
	  	Venture 	 

	ARTICLE 2: 	REPRESENTATIONS AND WARRANTIES;
      COVENANTS 

	2.01 	
      Capacity of Participants

	2.02 	
      Representations and Warranties

	2.03 	
      Disclosures

	2.04 	
      Record Title

	2.05 	
      Covenants (Loss of Title, Etc.)

	2.06 	
      Agreement respecting status of GIL
  Venture

AGREEMENT-Page 1 

	ARTICLE 3: 	NAME, PURPOSES, AND TERM

	3.01 	
      General

	3.02 	
      Name

	3.03 	
      Purposes

	3.04 	
      Limitation

	3.05 	
      Effective Date and Term

	ARTICLE 4: 	RELATIONSHIP OF THE PARTICIPANTS
  

	4.01 	
      No Partnership

	4.02 	
      Federal Tax Elections and Allocations

	4.03 	
      State Income Tax

	4.04 	
      Tax Returns

	4.05 	
      Other Business Opportunities

	4.06 	
      Waiver of Right To Partition

	4.07 	
      Transfer or Termination of Rights To Properties

	4.08 	
      Implied Covenants

	ARTICLE 5: 	CONTRIBUTIONS BY PARTICIPANTS
  

	5.01 	
      Initial Contributions of Participants

	5.02 	
      Failure of FGMI To Make Initial Contribution

	5.03 	
      Additional Cash Contributions

	5.04 	
      Special Right of TERYL To
Withdraw

	ARTICLE 6: 	INTERESTS OF PARTICIPANTS

	6.01 	
      Initial Participating Interests

	6.02 	
      Changes in Participating Interests

	6.03 	
      Voluntary Reduction in Participation

	6.04 	
      Default in Making Contributions

	6.05 	
      Elimination of Minority Interest

	6.06 	
      Continuing Liabilities Upon Adjustments of Participating
      Interests

	ARTICLE 7: 	MANAGEMENT COMMITTEE

	7.01 	
      Organization and Composition

	7.02 	
      Decisions

	7.03 	
      Meetings

	7.04 	
      Action Without Meeting

	7.05 	
      Matters Requiring Approval

AGREEMENT-Page 2 

	ARTICLE 8: 	MANAGER 

	8.01 	
      Appointment

	8.02 	
      Powers and Duties of Manager

	8.03 	
      Standard of Care

	8.04 	
      Resignation; Deemed Offer To Resign

	8.05 	
      Payments To Manager

	8.06 	
      Transactions With Affiliates

	8.07 	
      Activities During Deadlock

	ARTICLE 9: 	PROGRAMS 

	9.01 	
      Operations Pursuant To Programs and Budgets

	9.02 	
      Operations While FGMI Is Making Its Initial
      Contribution

	9.03 	
      Presentation of Programs and Budgets

	9.04 	
      Review and Approval of Proposed Programs and
    Budgets

	9.05 	
      Election To Participate

	9.06 	
      Deadlock on Proposed Programs and Budgets

	9.07 	
      Budget Overruns; Program Changes

	9.08 	
      Emergency or Unexpected
Expenditures

	ARTICLE 10: 	ACCOUNTS AND SETTLEMENTS

	10.01 	
      Monthly Statements

	10.02 	
      Cash Calls

	10.03 	
      Failure To Meet Cash Calls

	10.04 	
      Audits

	ARTICLE 11: 	DISPOSITION OF PRODUCTION

	11.01 	
      Taking In Kind

	11.02 	
      Failure of Participant To Take In
Kind

	ARTICLE 12:	 WITHDRAWAL AND
      TERMINATION 

	12.01 	
      Termination by Expiration or Agreement

	12.02 	
      Termination by Deadlock

	12.03 	
      Withdrawal

	12.04 	
      Continuing Obligations

	12.05 	
      Disposition of Assets on Termination

	12.06 	
      Non-Compete Covenants

	12.07 	
      Right To Data After Termination

	12.08 	
      Continuing Authority

AGREEMENT-Page 3 

	ARTICLE 13: 	ACQUISITIONS WITHIN AREA OF INTEREST
  

	13.01 	
      General

	13.02 	
      Notice To Nonacquiring Participant

	13.03 	
      Option Exercised

	13.04 	
      Option Not Exercised

	ARTICLE 14: 	ABANDONMENT AND SURRENDER OF PROPERTIES
    

	14.01 	
      Surrender or Abandonment of Property

	14.02 	
      Reacquisition

	ARTICLE 15: 	TRANSFER OF INTEREST

	15.01 	
      General

	15.02 	
      Limitations on Free Transferability

	15.03 	
      Preemptive Right

	15.04 	
      Exceptions To Preemptive
Right

	ARTICLE 16: 	DISPUTES 
	 	 
	ARTICLE 17: 	CONFIDENTIALITY 

	17.01 	
      General

	17.02 	
      Exceptions

	17.03 	
      Duration of Confidentiality

	ARTICLE 18: 	GENERAL PROVISIONS

	18.01 	
      Notices

	18.02 	
      U.S. Currency

	18.03 	
      Waiver

	18.04 	
      Force Majeure

	18.05 	
      Governing Law

	18.06 	
      Rule Against Perpetuities

	18.07 	
      Further Assurances

	18.08 	
      Survival of Terms and Conditions

	18.09 	
      Entire Agreement; Modification; Successors and
    Assigns

	18.10 	
      Memorandum

EXHIBITS 

AGREEMENT-Page 4 

	EXHIBIT A: 	PART 1: Properties and Title Exceptions 
	  	PART 2: Area of Interest 
	  	 
	EXHIBIT B: 	Accounting Procedure 
	EXHIBIT C: 	Tax Matters 
	EXHIBIT D: 	Calculation and Payment of Net Smelter Returns
    
	EXHIBIT E: 	Insurance 
	EXHIBIT F: 	Agreement respecting GIL Venture 
	EXHIBIT G: 	Memorandum Mining Venture Agreement 
	EXHIBIT H: 	Conveyance of Royalty 

AGREEMENT-Page 5 

MINING VENTURE AGREEMENT 

THIS AGREEMENT is made as of the 23rd day of September, 1999,
by and between FAIRBANKS GOLD MINING, INC.("FGMI"), a Delaware
corporation the address of which is #1 Fort Knox Road, P.O. Box 73726,
Fairbanks, Alaska 99707-3726, and TERYL, INC. ("TERYL"), a Delaware
corporation the address of which is Suite 185, 10751 Shellbridge Way, Richmond,
B.C. V6X 2W8. 

RECITALS 

     A. TERYL owns certain Properties
situated in the Fairbanks Recording District, State of Alaska, which Properties
are described in Exhibit A. 

     B. FGMI wishes to participate
with TERYL in the exploration, evaluation, and mining of mineral resources
within the Properties or any other properties acquired and held by the parties
subject to this Agreement, and TERYL is willing to grant such rights to FGMI.

     NOW, THEREFORE, in consideration
of the covenants and agreements contained herein, TERYL and FGMI agree as
follows: 

ARTICLE 1 

DEFINITIONS 

     "Accounting Procedure" means
the procedures set forth in Exhibit B. 

     "Affiliate" means any
person, partnership, joint venture, limited liability company, corporation, or
other form of enterprise which directly or indirectly controls, is controlled
by, or is under common control with, a Participant. For purposes of the
preceding sentence, "control" means possession, directly or indirectly, of the
power to direct or cause direction of management and policies through ownership
of voting securities, contract, voting trust, or otherwise. 

     "Agreement" means this
Mining Venture Agreement, including all amendments and modifications thereof,
and all exhibits and schedules, which are incorporated herein by this reference.

     "Area of Interest" means
  the area described in Part 2 of Exhibit A. 

     "Assets" means the
Properties, Products, and all other real and personal property, tangible and
intangible, held for the benefit of the Participants hereunder. 

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

AGREEMENT-Page 6 

     "Capital Account" means
the separate capital account established and maintained for each Participant by
the Manager in accordance with Section 8.02(n) and Exhibit C. 

     "Development" means all
preparation for the removal and recovery of Products, including the construction
or installation of a mill or any other improvements to be used for the mining,
handling, milling, processing, or other benefaction of Products. 

     "Exploration" means all
activities directed toward ascertaining the existence, location, quantity,
quality, or commercial value of deposits of Products. 

     "FGMI" means Fairbanks Gold
  Mining, Inc., a Delaware corporation. 

     "GIL Joint Venture
Agreement" means that certain Mining Venture Agreement dated May 31, 1991,
by and between the former Fort Knox Venture and TERYL, a memorandum of which was
recorded on July 12, 1991, at Book 708, Page 765, Fairbanks Recording
District.

     "GIL Venture" means the entity
created by the GIL Joint Venture Agreement.

     "Initial Contribution"
means that contribution each Participant has made or is entitled to make
pursuant to Section 5.01. 

     "Joint Account" means the
account maintained in accordance with the Accounting Procedure showing the
charges and credits accruing to the Participants. 

     "Management Committee" means
the committee established under Article 7. 

     "Manager" means the person
or entity appointed under Article 8 to manage Operations, or any successor
Manager. 

     "Mining" means the mining,
extracting, producing, handling, milling, or other processing of Products. 

     "Net Smelter Returns"
means certain amounts calculated as provided in Exhibit D, a portion of which
may be payable to a Participant under Section 6.05. 

     "Operations" means the
activities carried out under this Agreement. 

     "Participant" and
"Participants" mean the persons or entities that from time to time have
Participating Interests. 

     "Participating Interest"
means the percentage interest representing the operating ownership interest of a
Participant in Assets, and all other rights and obligations arising under this
Agreement, as such interest may from time to time be adjusted hereunder.

AGREEMENT-Page 7 

Participating Interests shall be calculated to three decimal
places and rounded to two (e.g., 1.519% rounded to 1.52%) . Decimals of .005 or
more shall be rounded up, decimals of less than .005 shall be rounded down. The
initial Participating Interests of the Participants are set forth in Section
6.01. 

     "Prime Rate" means the
interest rate charged by the Chase Manhattan Bank, N.A., as the annual interest
rate on 90-day loans to substantial and responsible commercial borrowers, as
said rate may change from day to day (which quoted rated may not be the lowest
rate at which said bank loans funds). 

     "Products" means all ores,
minerals, and mineral resources produced from the Properties under this
Agreement. 

     "Program" means a
description in reasonable detail of Operations to be conducted and objectives to
be accomplished by the Manager for a year or any longer period. 

     "Properties" means those
interests in real property described in Part 1 of Exhibit A and all other
interests in real property within the Area of Interest which are acquired and
held by the parties subject to this Agreement. 

     "Qualifying Expenses"
means those costs and expenses properly chargeable to the Joint Account since
August 1, 1999. 

     "TERYL" means Teryl, Inc., a
Delaware corporation.

     "Transfer" means, as the
context requires, (a) sell, grant, assign, encumber, pledge, or otherwise commit
or dispose of, or (b) a sale, grant, assignment, encumbrance, pledge, or other
commitment or disposition. 

     "Venture" means the business
arrangement of the Participants under this Agreement. 

ARTICLE 2 

REPRESENTATIONS AND WARRANTIES; COVENANTS 

	 	2.01 	 Capacity of Participants.

	 	 	 	 
	 		(a)	  FGMI hereby represents and warrants as follows:

(1) It is a corporation duly
incorporated and in good standing under the laws of the State of Delaware and is
qualified to transact business in the State of Alaska.

AGREEMENT-Page 8 

	 			(2) It has the capacity, power, and authority to enter into
      this Agreement and to perform all acts required to be performed by FGMI
      pursuant to this Agreement; all actions necessary to permit the execution
      of this Agreement by FGMI and the performance by FGMI of all acts required
      to be performed by FGMI pursuant to this Agreement have been taken; and
      the person executing this Agreement on behalf of FGMI is duly authorized
      to do so.
	 	 	 	 
	 			(3) By entering into and performing pursuant to this Agreement,
      FGMI will not breach or otherwise cause a default under any other agreement,
      document, or instrument to which it is a party.
	 	 	 	 
	 	 	 (b)
	TERYL hereby represents and warrants as follows:
	 	 	 	 
	 			(1) It is a corporation incorporated and in good standing under
      the laws of the State of Delaware and qualified to transact business in
      the State of Alaska.
	 	 	 	 
	 			(2) It has the capacity, power, and authority to enter into
      this Agreement and to perform all acts required to be performed by TERYL
      pursuant to this Agreement; all actions necessary to permit the execution
      of this Agreement by TERYL and the performance by TERYL of all acts required
      to be performed by TERYL pursuant to this Agreement have been taken; and
      the person executing this Agreement on behalf of TERYL is duly authorized
      to do so.
	 	 	 	 
	 			(3) By entering into and performing pursuant to this Agreement,
      TERYL will not breach or otherwise cause a default under any other agreement,
      document, or instrument to which it is a party.

     2.02 Representations and
Warranties. TERYL makes the following representations and warranties as of
the effective date of this Agreement (see Section 3.05): 

(a) With respect to those Properties,
if any, that TERYL owns in fee simple, TERYL is in exclusive possession of and
owns such Properties free and clear of all defects, liens, and encumbrances
except those specifically identified on Part 1 of Exhibit A. 

(b) With respect to those Properties in
which TERYL holds an interest under leases or other contracts (including but not
limited to leases or other contracts with the United States, the State of
Alaska, or any other governmental entity): (1) TERYL is in exclusive possession
of such 

AGREEMENT-Page 9 

Properties; (2) TERYL has not received
any notice of default of any of the terms or provisions of such contracts; (3)
TERYL has the authority under such contracts to perform fully its obligations
under this Agreement; (4) to the best of TERYL's knowledge and belief, such
contracts are valid and are in good standing; and (5) to the best of TERYL's
knowledge and belief, the properties covered thereby are free and clear of all
defects, liens, and encumbrances except for those specifically identified on
Part 1 of Exhibit A or in such contracts. TERYL has delivered to FGMI all
information concerning title to the Properties in TERYL's possession or control,
including but not limited to true and correct copies of all leases or other
contracts relating to the Properties of which TERYL has knowledge. 

(c) With respect to unpatented federal
mining claims or mill sites located by TERYL, State of Alaska mining claims,
leasehold locations, or prospecting sites located by TERYL, or other similar
types of locations made by TERYL that are included within the Properties, except
as provided in Part 1 of Exhibit A and subject to the paramount title of the
United States or the State of Alaska, as the case may be: (1) all said claims,
sites, and locations were properly laid out and monumented; (2) all required
location and validation work was properly performed; (3) all required
certificates of location and other documents were properly recorded and filed
with all appropriate governmental offices and agencies; (4) all assessment and
other work required to maintain all said claims, sites, and locations has been
performed in a manner consistent with that required of the Manager pursuant to
Section 8.02(k) of this Agreement through the assessment year ending September
1, 1999; (5) all affidavits of assessment work and other documents required to
be recorded or filed to maintain all said claims, sites, and locations in good
standing have been properly and timely recorded and filed with all appropriate
governmental offices and agencies; (6) all filing fees, holding fees,
maintenance fees, payments in lieu of assessment work, rentals, advance
royalties, royalties, and other payments required to be paid to any governmental
office or agency to maintain said claims, sites, and locations in good standing
have been properly and timely paid to all appropriate governmental offices and
agencies; (7) said claims, sites, and locations are free and clear of defects,
liens, and encumbrances arising by, through or under TERYL; and (8) TERYL has no
knowledge of any conflicting rights, claims, sites, locations, entries,
selections, or applications. Nothing in this Section 2.02(c), however, shall be
deemed to be a representation or a warranty that any of said claims, sites, or
locations contains a discovery of minerals. With respect to said claims, sites,
and locations that were not located by TERYL but are included within the
Properties, TERYL make the foregoing representations and warranties (with the
foregoing exceptions) to the best of its knowledge and belief. 

AGREEMENT-Page 10 

(d) With respect to the Properties,
there are no pending or threatened actions, suits, claims, or proceedings. 

(e) It has no evidence of the existence
on the Properties of any environmental contamination or pollution of any sort
whatsoever.

The representations and warranties set forth above shall
survive the execution and delivery of any documents of Transfer provided under
this Agreement. 

     2.03 Disclosures. Each of
the Participants represents and warrants that it is aware of no material facts
or circumstances which have not been disclosed in this Agreement that should be
disclosed to the other Participant in order to prevent the representations in
this Article 2 from being materially misleading. 

     2.04 Record Title. Title
to the Assets shall be held in the name of the Manager, as nominee for the
Participants, as tenants in common.

     2.05 Covenants (Loss of Title,
Etc.). 

(a) Loss of Title. Any failure
  or loss of title to the Assets, and all costs of defending title, shall be charged
  to the Joint Account, except that all costs and losses arising out of or resulting
  from breach of the representations and warranties of TERYL shall be charged
  to TERYL. 

(b) Indemnification for Prior
Operations. TERYL shall indemnify, defend, and hold FGMI harmless from and
against any and all damages, losses, claims, demands, or liabilities (including
but not limited to damages, losses, claims, demands, or liabilities for
environmental contamination or pollution) arising out of or resulting in any way
from operations of TERYL or any of its lessees, licensees, or other successors
or assigns prior to the effective date of this Agreement (see Section 3.05)
..

(c) Protocol Respecting Certain
Environmental Contamination or Pollution. Without limiting any
party's rights hereunder, if any party hereafter develops or receives credible
evidence of the existence or occurrence on the Properties of environmental
contamination or pollution that no party in good faith has reason to believe was
caused by it, the Manager shall proceed to obtain and provide to all
Participants a third-party investigation of the same, the cost of which shall be
borne (i) solely by FGMI if it has not completed making its Initial Contribution
(with such cost being a Qualifying Expense) or (ii) by each Participant in
accordance with its Participating Interest, if FGMI has completed making its
Initial Contribution. In the latter case, the obtaining such third-party
investigation and the cost thereof shall be treated as approved amendments to
the approved Program 

AGREEMENT-Page 11 

and Budget then in effect. 

     2.06 Agreement respecting
status of GIL Venture. Upon execution of this Agreement by both of the
parties hereto, FGMI and TERYL shall execute, and FGMI shall use its best
efforts to cause Melba Creek Mining, Inc. (an Alaska corporation) to execute, an
agreement in the form attached hereto as Exhibit F respecting the status of the
GIL Venture and the GIL Joint Venture Agreement. This Agreement shall not become
effective until an agreement in the form of attached hereto as Exhibit F is
executed by FGMI, Melba Creek Mining, Inc., and TERYL.

ARTICLE 3 

NAME, PURPOSES, AND TERM 

     3.01 General. FGMI and
TERYL hereby enter into this Agreement for the purposes stated in this Agreement
and agree that all of their rights and all Operations on or in connection with
the Properties or the Area of Interest shall be subject to and governed by this
Agreement. 

     3.02 Name. The name of
this Venture shall be the West Ridge Joint Venture. The Manager shall accomplish
any registration required by applicable assumed or fictitious name statutes and
similar statutes. 

     3.03 Purposes. This
Agreement is entered into for the following purposes and for no others, and
shall serve as the exclusive means by which the Participants, or either of them,
accomplish such purposes: 

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

(b) to acquire additional Properties
within the Area of Interest, 

(c) to evaluate the possible
Development of the Properties, 

(d) to engage in Development and Mining
Operations on the Properties, 

(e) to engage in marketing Products, to
the extent permitted by Article 11, and 

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

     3.04 Limitation. Unless
the Participants otherwise agree in writing, Operations shall be limited to the
purposes described in Section 3.03, and nothing in this Agreement 

AGREEMENT-Page 12 

shall be construed to enlarge such purposes. 

     3.05 Effective Date and
Term. The effective date of this Agreement shall be the latter of date first
recited above or the date of the agreement referred to in Section 2.06. The term
of this Agreement shall be for 20 years from said effective date and for so long
thereafter as Products are produced from the Properties, unless this Agreement
is earlier terminated as herein provided. 

ARTICLE 4 

RELATIONSHIP OF THE PARTICIPANTS 

     4.01 No Partnership.
Nothing contained in this Agreement shall be deemed to constitute either
Participant the partner of the other or, except as otherwise herein expressly
provided, to constitute either Participant the agent or legal representative of
the other or to create any fiduciary relationship between them. It is not the
intention of the Participants to create, and this Agreement shall not be
interpreted or construed to create, any mining, commercial, or other
partnership. Neither Participant shall have any authority to act for or to
assume any obligation or responsibility on behalf of the other Participant,
except as otherwise expressly provided herein. The rights, duties, obligations,
and liabilities of the Participants shall be several and not joint or
collective. Each Participant shall be responsible only for its obligations as
herein set out and shall be liable only for its share of the costs and expenses
as provided herein, it being the express purpose and intention of the
Participants that their ownership of Assets and the rights acquired hereunder
shall be as tenants in common. Each Participant shall indemnify, defend, and
hold harmless the other Participant, its directors, officers, employees, agents,
and attorneys from and against any and all losses, claims, damages, or
liabilities arising out of any act or any assumption of liability by the
indemnifying Participant, or any of its directors, officers, employees, agents,
or attorneys, done or undertaken, or apparently done or undertaken, on behalf of
the other Participant, except pursuant to the authority expressly granted herein
or as otherwise agreed in writing between the Participants. 

     4.02 Federal Tax Elections and
Allocations. Without changing the effect of Section 4.01, the Participants
agree that their relationship shall constitute a tax partnership within the
meaning of Section 761(a) of the United States Internal Revenue Code of 1986, as
amended. Tax elections and allocations shall be made as set forth in Exhibit C.

     4.03 State Income Tax. The
Participants also agree that, to the extent permissible under applicable law,
their relationship shall be treated for state income tax purposes in the same
manner as it is for federal income tax purposes. 

     4.04 Tax Returns. The Tax
Matters Partner, as defined in Exhibit C, shall prepare and shall file, after
approval of the Management Committee, any tax returns or other tax 

AGREEMENT-Page 13 

forms required. 

     4.05 Other Business
Opportunities. Except as expressly provided in this Agreement, each
Participant shall have the right independently to engage in and receive full
benefits from business activities, whether or not competitive with the
Operations, without consulting the other. The doctrines of "corporate
opportunity" or "business opportunity" shall not be applied to any other
activity, venture, or operation of either Participant and, except as otherwise
provided in Section 12.06, neither Participant shall have any obligation to the
other with respect to any opportunity to acquire any property outside the Area
of Interest at any time, or within the Area of Interest after the expiration or
termination of this Agreement. Unless otherwise agreed in writing, no
Participant shall have any obligation to mill, beneficiate, or otherwise treat
any Products or any other Participant's share of Products in any facility owned
or controlled by such Participant. 

     4.06 Waiver of Right To
Partition. The Participants hereby waive and release all rights of
partition, or of sale in lieu thereof, or other division of Assets, including
any such rights provided by statute. 

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

     4.08 Implied Covenants. No
implied covenants are included in this Agreement other than those of good faith
and fair dealing. 

ARTICLE 5 

CONTRIBUTIONS BY PARTICIPANTS 

5.01 Initial Contributions of Participants.

     (a) TERYL hereby contributes the
Properties to the purposes of this Agreement, and the Participants hereunder
hereby assume all rights and obligations of TERYL relating to the Properties.
For purposes of this Agreement, the value of the Properties is deemed to be
$642,857.

     (b) FGMI shall have the right
(but not the obligation, except insofar as is necessary to permit the Manager to
maintain the Properties in good standing until FGMI has made its Initial
Contribution or withdrawn from this Agreement pursuant to Section 5.02 or
otherwise) to contribute the following as its Initial Contribution no later than
December 31, 2004: 

	 	(1) 	
      To contribute the first $1,500,000 in Qualifying Expenses
      (which monies shall be used to fund Operations undertaken by
  FGMI

AGREEMENT-Page 14 

	 		
      pursuant to Section 9.02);

	 	 	 
	 	(2) 	
      To pay to the order of TERYL a total of $285,000 as set
      forth in Section 5.02 below.

If FGMI makes said Initial Contribution in a timely manner as
described in Section 5.02 below, the agreed value of said Initial Contribution
shall be $1,500,000. 

     5.02 Failure of FGMI To Make
Initial Contribution. If FGMI fails to contribute the cumulative amount of
Qualifying Expenses set forth in the below table on or before the dates set
forth below ("cumulative amount of Qualifying Expenses" means the total of all
Qualifying Expenses incurred under this Agreement since the effective date of
this Agreement), or if FGMI fails to pay to the order of TERYL the amounts set
forth in the below table on or before the dates set forth below, then FGMI shall
have failed to make its Initial Contribution hereunder and said failure shall be
deemed to be a withdrawal of FGMI from this Agreement and the termination of its
Participating Interest hereunder.

	 Completion
      Date 	Cumulative Amount of Qualifying Expenses That 
	 	Need To Be Incurred on or before said
      Completion 
	 	Date
    
	Dec. 31, 2000 	$100,000 
	Dec. 31, 2001 	$300,000 
	Dec. 31, 2002 	$600,000 
	Dec. 31, 2003 	$1,000,000 
	Dec. 31, 2004 	$1,500,000

	 Due Date 	Amount
      of Money (Not Cumulative) That Needs To 
	 	Be Paid To the Order of TERYL on or before
      said 
	 	Due
      Date 
	Upon Execution 	$25,000 
	Dec. 31, 2000 	$35,000 
	Dec. 31, 2001 	$50,000 
	Dec. 31, 2002 	$75,000 
	Dec. 31, 2003 	$100,000 

In order to prevent any payment described in the table set
forth immediately above from accruing and becoming an obligation of FGMI under
this Agreement, FGMI must exercise its right to withdraw voluntarily from this
Agreement under Section 12.01 on or before the December 1 immediately prior to
the due date set forth above for said payment. In order to prevent any
requirement to perform assessment work (or to make payment in lieu thereof), to
pay maintenance fees or rents, or to record or file proof thereof prior to the
completion by FGMI of its Initial Contribution from accruing and becoming an
obligation of FGMI under this Agreement, FGMI must exercise its right to
withdraw voluntarily from this Agreement under Section 12.01 at least 90 days
prior to the date by which such work requirement, 

AGREEMENT-Page 15 

payment requirement, or recording or filing requirement must be
satisfied to maintain the Properties in good standing. Notwithstanding any
provision hereof to the contrary, the cost of satisfying all such work
requirements, payment requirements, and recording/filing requirements shall
count as Qualifying Expenses.

Any such deemed withdrawal of FGMI due to its failure to make
its Initial Contribution hereunder shall be effective upon such failure, and
FGMI thereupon shall have no further right, title, or interest in the Assets,
but such withdrawal shall not relieve FGMI of its responsibility to fund and
satisfy its share of liabilities to third persons (whether such liabilities
accrue before or after such withdrawal) arising out of Operations conducted
prior to FGMI's withdrawal. FGMI shall fund and satisfy such liabilities in
proportion to its initial Participating Interest set forth in Section 6.01.
Except as provided in the preceding two sentences, FGMI's withdrawal shall
relieve FGMI from any other obligation to contribute Qualifying Expenses or to
make payments hereunder. 

     5.03 Additional Cash
Contributions. Until such time as FGMI has contributed the full amount of
its Initial Contribution, TERYL shall not be obligated to contribute any funds
to adopted Programs. At such time as FGMI has contributed the full amount of its
Initial Contribution, the Participants, subject to any election permitted by
Section 5.04 or Section 6.03, shall be obligated to contribute funds to adopted
Programs in proportion to their respective Participating Interests.

     5.04 Special Right of TERYL To
Withdraw. At such time as FGMI has contributed the full amount of its
Initial Contribution, FGMI shall deliver a written notice to TERYL notifying
TERYL of the same. TERYL shall have 30 days after the date of said notice in
which to elect (by delivering a written notice to that effect to FGMI) to
withdraw in its entirety from this Agreement and to relinquish its Participating
Interest hereunder. If TERYL fails to deliver such notice in a timely manner,
such failure shall be deemed to be an election by TERYL not to exercise its
rights under this Section 5.04. If TERYL timely elects to withdraw pursuant to
this Section 5.04 (but not if TERYL withdraws or is deemed to have withdrawn
under or pursuant to any other provision of this Agreement), then upon receipt
by FGMI of a conveyance in recordable form sufficient to transfer to FGMI all of
TERYL's Participating Interest in the Assets and in this Agreement free and
clear of royalties, liens, or other encumbrances arising by, through or under
TERYL except those exceptions to title described in Part 1 of Exhibit A and
those to which both Participants have given their written consent after the date
of this Agreement, FGMI shall deliver to TERYL a conveyance in the form of
Exhibit H attached hereto to which the following additional provisions have been
added: 

	
       
	
      Advance Royalty. On the date hereof, and then on
      or before each of the first, second, third, and fourth anniversaries of
      the date hereof, if any of the Properties as of said anniversary have not
      been reconveyed to TERYL or abandoned or relinquished by FGMI after notice
      to TERYL and TERYL's 
	
       

AGREEMENT-Page 16 

	 	
      failure to elect to receive reconveyance of the same from
      FGMI, FGMI shall pay to the order of TERYL an advance royalty payment of
      Two Hundred Thousand Dollars U.S. ($200,000 U.S.). (The maximum amount of
      advance royalty that may be paid hereunder is thus One Million Dollars
      U.S. ($1,000,000 U.S.).) All advance royalty paid to TERYL pursuant hereto
      shall be recoverable by FGMI out of royalty that would otherwise be due
      and payable to TERYL hereunder. 
	 
	 	
      
	 
	 	
      Maintenance of Properties; Right To Receive
      Reconveyance. For so long as any advance royalty might be or become
      payable to TERYL hereunder, (a) FGMI shall maintain the Properties in good
      standing and (b) before abandoning or relinquishing any of the Properties,
      FGMI shall provide TERYL with 30 days' prior written notice of its intent
      to abandon or relinquish any of the Properties. If TERYL timely elects to
      receive reconveyance of some of all of the Properties described in said
      notice, FGMI shall quitclaim the same to TERYL. If TERYL fails to elect
      timely to receive reconveyance from FGMI of some or all of the Properties
      described in said notice, then FGMI may proceed to abandon or relinquish
      such of the Properties as TERYL has not elected to have reconveyed to it;
      the royalty of TERYL hereunder shall continue to burden said Properties
      until they are abandoned or relinquished. 
	 

ARTICLE 6 

INTERESTS OF PARTICIPANTS 

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

	 	Participant 	Initial Participating Interest 
	 	  	  
	 	FGMI 	       
                 70% 
	 	TERYL 	           
             30%. 

     6.02 Changes in Participating
Interests. A Participant's Participating Interest shall be changed as
follows: 

(a) as provided in Section 5.02; or

AGREEMENT-Page 17 

(b) upon an election by a Participant
pursuant to Section 6.03 to contribute less to an adopted Program and Budget
than the percentage reflected by its Participating Interest; or 

(c) in the event of default by a
Participant in making its agreed-upon contribution to an adopted Program and
Budget, followed by an election by the other Participant to invoke Section
6.04(b); or 

(d) Transfer by a Participant of less
than all its Participating Interest in accordance with Article 15; or 

(e) acquisition of less than all of the
Participating Interest of the other Participant, however arising. 

6.03 Voluntary Reduction in Participation.

     (a) Except with respect to that
portion, if any, of a Participant's Initial Contribution that it is obligated to
make, as to which no election is permitted, a Participant may elect, as provided
in Section 9.05, to limit its contributions to an adopted Program and Budget as
follows: 

(i) to some lesser amount than the
percentage reflected by its Participating Interest, or 

(ii) not at all. 

     (b) A Participant who elects not
to participate to the full extent of its Participating Interest shall be a
"Diluting Participant" and the Participating Interest of such Participant will
be reduced effective as of the date the adopted Program and Budget is commenced
(the "Diluting Date"). The other Participant shall be the "Non-Diluting
Participant". A Diluting Participant's Participating Interest will be
provisionally recalculated effective as of the Diluting Date according to the
following formula: 

	 	R 	= 	REA[P] 
	 	  	  	REA[AP] x 100% 
	 	  	  	  
	 	where 	  	  
	 	  	  	  
	 	R 	= 	Recalculated Participating Interest of the
      Diluting Participant 
	 	  	  	  
	 	REA[P] 	= 	
      The Diluting Participant's recalculated Capital Account
      (as defined herein and as reflected on the books and records of the
      Manager) immediately prior 

AGREEMENT-Page 18 

	 	 	 	
      to the Diluting Date, plus the amount of the
      contribution, if any, to be made by the Diluting Participant to the newly
      adopted Program and Budget, plus a reasonable estimate of any other
      credits to be made to the Diluting Participant's Capital Account during
      the budgetary period established in the Program and Budget (the "Budgetary
      Period"), less a reasonable estimate of all distributions, debits,
      losses or deductions to be made to such account during the Budgetary
      Period. 

	 	  	  	
       

	 	REA[AP] 	= 	
      The recalculated Capital Account balance for all
      Participants immediately prior to the Diluting Date, plus the
      amount of contributions anticipated by the newly adopted Program and
      Budget, plus a reasonable estimate of any other credits to be made
      to all Participants' Capital Accounts during the Budgetary Period, less
      a reasonable estimate of all distributions, debits, losses or
      deductions to be made to all such accounts during the Budgetary Period.
      

The Participating Interest of the Non-Diluting Participant
shall be increased by the amount of the reduction in the Participating Interest
of the Diluting Participant. The recalculations made under this Section 6.03(b)
will be provisional and subject to the final adjustments provided for under
Section 6.03(c) . 

     At the end of each Budgetary
Period, a final recalculation of each Participant's Participating Interest shall
be made, with the provisional recalculations made under Section 6.03(b) adjusted
to reflect actual contributions, credits, distributions, debits, losses or
deductions made during that period and the Participants shall repay or be paid
any distributions owing or owed based upon such recalculation. A Diluting
Participant shall retain all of its rights and all of its obligations (except as
provided in Section 6.03(b) above and subject to the provisions of Section 6.04
(respecting elimination of minority interests)), including the right to
participate in future Programs and Budgets at its recalculated Participating
Interest. 

     A Diluting Participant under this
Section 6.03 shall have the right to redeem its position and thus avoid dilution
if the actual expenditures under the relevant adopted Program and Budget are at
least 20% less than as originally set out in the adopted Program and Budget with
respect to which the Participant elected to limit its contributions. (If the
actual expenditures are more than 80% of the amount originally set out in the
adopted Program and Budget, then the reduction is final.) At least 20 days prior
to the Management Committee meeting at which the next subsequent Program and
Budget is to be considered for adoption, the Manager shall provide to all
Participants a complete statement of the actual 

AGREEMENT-Page 19 

expenditures incurred to date and an estimate of the actual
expenditures to be incurred to complete the Program and Budget to which the
Diluting Participant elected not to contribute fully. If the Diluting
Participant has the right to redeem its position as aforesaid, the Diluting
Participant shall inform the Management Committee prior to the said meeting of
its wish to do so. A Participant redeeming its Participating Interest shall pay
the amount that it would have paid had it participated to the fullest extent
possible in the adopted Program and Budget as implemented, plus interest thereon
from the date of any expenditure to the date of payment at an annual rate equal
to the Prime Rate. Payment shall be made by the redeeming Participant to the
other Participant or, if more than one, to the other Participants pro rata in
accordance with the amount which each of them contributed to the adopted Program
and Budget as implemented, within 30 days of receipt from each other Participant
of an invoice for its share. 

     6.04 Default in Making Contributions.

     (a) If a Participant defaults in
making a contribution or cash call required by an approved Program and Budget,
the non-defaulting Participant may advance the defaulted contribution on behalf
of the defaulting Participant and treat the same, together with any accrued
interest, as a demand loan bearing interest from the date of the advance at the
rate provided in Section 10.03. The failure to repay said loan upon demand shall
be a default. Each Participant hereby grants to the other a lien upon its
interest in the Properties and a security interest in its rights under this
Agreement and in its Participating Interest in other Assets, and the proceeds
therefrom, to secure any loan made hereunder, including interest thereon,
reasonable attorneys fees, and all other reasonable costs and expenses incurred
in recovering the loan with interest and in enforcing such lien or security
interest, or both. A non-defaulting Participant may elect the applicable remedy
under this Section 6.04(a) or under Section 6.04(b) or, to the extent a
Participant has a lien or security interest under applicable law, it shall be
entitled to its rights and remedies at law and in equity. All such remedies
shall be cumulative. The election of one or more remedies shall not waive the
election of any other remedies. Each Participant hereby irrevocably appoints the
other its attorney-in-fact to execute, file, and record all instruments
necessary to perfect or effectuate the provisions hereof. 

     (b) The Participants acknowledge
that if a Participant defaults in making a contribution or a cash call, or in
repaying a loan, as required hereunder, it will be difficult to measure the
damages resulting from such default. In the event of such default, as reasonable
liquidated damages, the non-defaulting Participant, with respect to any such
default not cured within 30 days after notice to the defaulting Participant of
such default, may elect, by giving notice to the defaulting Participant, to have
the defaulting Participant's Participating Interest permanently reduced by twice
the reduction that would have resulted under Section 6.03. Amounts treated as a
loan pursuant to Section 6.04(a) and interest thereon shall be included in the
calculation of the defaulting Participant's reduced Participating Interest. The
non-defaulting Participant's Participating Interest shall, at such time, become
the difference between 100% and the further reduced Participating Interest. Such
reductions 

AGREEMENT-Page 20 

shall be effective as of the date of the default. 

     6.05 Elimination of Minority
Interest. Upon the reduction of its Participating Interest to less than 10%,
a Participant shall be deemed to have withdrawn from this Agreement and to have
relinquished its entire Participating Interest to the other Participant free of
royalties, liens, or other encumbrances arising by, through, or under such
relinquishing Participant, other than those existing at the time the Properties
were acquired or those to which both Participants have given their written
consent. Upon the execution, acknowledgement, and delivery by the relinquishing
Participant to the other Participant of a special warranty deed and assignment
conveying, assigning, and specially warranting the Participating Interest of the
relinquishing Participant in the manner described above, the other Participant
shall execute, acknowledge, and deliver to the relinquishing Participant a
conveyance of royalty in the form attached hereto as Exhibit H conveying a
sliding scale royalty interest to the relinquishing Participant providing for
the payment to the relinquishing Participant, within 30 days after the end of
each calendar month after the date of said conveyance, either 3% (if the Average
Monthly LME Price of Gold as defined in Exhibit H is less than $400 per ounce)
or 4% (if the Average Monthly LME Price of Gold as defined in Exhibit H is equal
to or greater than $400 per ounce) of the Net Smelter Returns derived during
said calendar month from the Properties subject to this Agreement on the date
that the relinquishing Participant is deemed to have withdrawn from this
Agreement and relinquished its Participating Interest pursuant to this Section
6.05.

     6.06 Continuing Liabilities
Upon Adjustments of Participating Interests. Any reduction of a
Participant's Participating Interest under this Article 6 shall not relieve such
Participant of its share of any liability, whether it accrues before or after
such reduction, arising out of Operations conducted prior to such reduction. For
purposes of this Article 6, such Participant's share of such liability shall be
equal to its Participating Interest at the time such liability was incurred. The
increased Participating Interest accruing to a Participant as a result of the
reduction of the other Participant's Participating Interest shall be free of
royalties, liens, or other encumbrances arising by, through, or under such other
Participant, other than those existing at the time the Properties were acquired
or those to which both Participants have given their written consent. An
adjustment to a Participating Interest need not be evidenced during the term of
this Agreement by the execution and recording of appropriate instruments, but
each Participant's Participating Interest shall be shown in the books of the
Manager. However, either Participant, at any time upon the request of the other
Participant, shall execute and acknowledge instruments necessary to evidence
such adjustment in form sufficient for recording in the jurisdiction where the
Properties are located. 

ARTICLE 7 

MANAGEMENT COMMITTEE 

AGREEMENT-Page 21 

     7.01 Organization and
Composition. The Participants hereby establish a Management Committee to
determine overall policies, objectives, procedures, methods, and actions under
this Agreement. The Management Committee shall consist of one member appointed
by FGMI and one member appointed by TERYL. Each Participant may appoint one or
more alternates to act in the absence of a regular member. Any alternate so
acting shall be deemed a member. Appointments shall be made or changed by notice
to the other Participant. 

     7.02 Decisions. Each
Participant, acting through its appointed member, shall have one vote on the
Management Committee. Unless otherwise provided in this Agreement, the vote of
the Participant with a Participating Interest over 50% shall determine the
decisions of the Management Committee. 

     7.03 Meetings. The
Management Committee shall hold regular meetings at least annually in Fairbanks,
Alaska, or at other mutually agreed places. The Manager shall give 30 days'
notice to the Participants of such regular meetings. Additionally, either
Participant may call a special meeting upon 30 days' notice to the Manager and
the other Participant. In case of emergency, reasonable notice of a special
meeting shall suffice. There shall be a quorum if at least the member
representing the Participant with a Participating Interest over 50% is present.
Each notice of a meeting shall include an itemized agenda prepared by the
Manager in the case of a regular meeting, or by the Participant calling the
meeting in the case of a special meeting, but any matters may be considered with
the consent of all Participants. The Manager shall prepare minutes of all
meetings and shall distribute copies of such minutes to the Participants within
30 days after the meeting. The minutes, when signed by all Participants, shall
be the official record of the decisions made by the Management Committee and
shall be binding on the Manager and the Participants. If personnel employed in
Operations are required to attend a Management Committee meeting, reasonable
costs incurred in connection with such attendance shall be a Venture cost. All
other costs shall be paid by the Participants individually. 

     7.04 Action Without
Meeting. In lieu of meetings, the Management Committee may hold telephone
conferences, so long as all decisions are immediately confirmed in writing by
the Participants. 

     7.05 Matters Requiring
Approval. Except as otherwise delegated to the Manager in Section 8.02, the
Management Committee shall have exclusive authority to determine all management
matters related to this Agreement. 

ARTICLE 8 

MANAGER 

     8.01 Appointment. The Participants
  hereby appoint FGMI as the Manager with 

AGREEMENT-Page 22 

overall management responsibility for Operations. FGMI hereby
agrees to serve until it resigns as provided in Section 8.04. 

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

(a) The Manager shall manage, direct,
and control Operations. 

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

(c) The Manager shall (1) purchase or
otherwise acquire all materials, supplies, equipment, water, utilities, and
transportation services required for Operations, such purchases and acquisitions
to be made on the best terms available, taking into account all of the
circumstances, (2) obtain such customary warranties and guarantees as are
available in connection with such purchases and acquisitions, and (3) keep the
Assets free and clear of all liens and encumbrances, except for those existing
at the time of, or created concurrent with, the acquisition of such Assets, or
mechanic's or materialmen's liens which shall be released or discharged in a
diligent manner, or liens and encumbrances specifically approved by the
Management Committee. 

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

(e) The Manager shall (1) make or
arrange for all payments required by leases, licenses, permits, contracts, and
other agreements related to the Assets, (2) pay all taxes, assessments, and like
charges on Operations and Assets except taxes determined or measured by a
Participant's sales revenue or net income, and (3) do all other acts reasonably
necessary to maintain the Assets. If authorized by the Management Committee, the
Manager shall have the right to contest, in the courts or otherwise, the
validity or amount of any taxes, assessments, or charges if the Manager deems
them to be unlawful, unjust, unequal, or excessive, or to undertake such other
steps or proceedings as the Manager may deem reasonably necessary to secure a
cancellation, reduction, readjustment, or equalization thereof before the
Manager shall be required to pay them, but in no event shall the Manager permit
or allow title to the Assets to be lost as the result of the nonpayment of any
taxes, assessments, or like charges.

AGREEMENT-Page 23 

(f) The Manager shall (1) apply for all
necessary permits, licenses, and approvals, (2) comply with applicable federal,
state, and local laws and regulations, (3) notify promptly the Management
Committee of any allegations of substantial violation thereof, and (4) prepare
and file all reports or notices required for Operations. The Manager shall not
be in breach of this provision if a violation has occurred in spite of the
Manager's good faith efforts to comply and the Manager has timely cured or
disposed of such violation through performance or payment of fines and
penalties. 

(g) The Manager shall prosecute and
defend, but shall not initiate without consent of the Management Committee, all
litigation or administrative proceedings arising out of Operations. The
non-managing Participant shall have the right to participate, at its own
expense, in such litigation or administrative proceedings. The non-managing
Participant shall approve in advance any settlement involving payments,
commitments, or obligations in excess of $25,000 in cash or value. 

(h) The Manager shall provide insurance
for the benefit of the Participants as provided in Exhibit E. 

(i) The Manager may dispose of Assets,
whether by abandonment, surrender, or Transfer in the ordinary course of
business, except that Properties may be abandoned or surrendered only as
provided in Article 14. Notwithstanding the foregoing, without prior
authorization from the Management Committee the Manager shall not (1) dispose of
Assets in any one transaction having a value in excess of $25,000, (2) enter
into any sales contracts or commitments for Products, except as permitted in
Section 11.02, (3) begin a liquidation of the Venture, or (4) dispose of all or
a substantial part of the Assets necessary to achieve the purposes of the
Venture. 

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

(k) The Manager shall perform or cause
to be performed during the term of this Agreement all assessment and other work
required to maintain in good standing all unpatented federal mining claims and
mill sites included within the Properties, all State of Alaska mining claims,
leasehold locations, and prospecting sites included within the Properties, and
all other similar types of locations included within the Properties. The Manager
shall have the right to perform the assessment work required hereunder pursuant
to a common plan of exploration and development; in addition, the Manager need
not maintain continuous actual occupancy of any claims, sites, or locations
included within the Properties. The Manager shall not be liable on account of
any determination by any court or governmental agency that the work performed

AGREEMENT-Page 24 

by the Manager does not constitute the
required assessment work or occupancy for the purposes of preserving or
maintaining ownership of said claims, sites, or locations, provided that the
work done is in accordance with the adopted Program and Budget. The Manager
shall timely record and file in proper form with the appropriate governmental
offices and agencies all affidavits of assessment work, notices of intent to
hold, and other documents required to maintain the Properties in good
standing.

(l) The Manager shall timely pay to all
appropriate governmental offices and agencies all filing fees, holding fees,
maintenance fees, payments in lieu of assessment work, rentals, advance
royalties, royalties, and other payments required to be paid to any governmental
office or agency to maintain in good standing all unpatented federal mining
claims and mill sites included within the Properties, all State of Alaska mining
claims, leasehold locations, and prospecting sites included within the
Properties, and all other similar types of locations included within the
Properties.

(m) If authorized by the Management
Committee, the Manager may (1) amend or relocate (as the same or a different
type of claim, site, or location), under any applicable present or future law,
any unpatented federal lode mining claim, unpatented federal placer mining
claim, unpatented federal mill site, state mining claim, state leasehold
location, state prospecting site, or other similar type of location included
within the Properties, and may abandon any such claims, sites, or locations as
may be necessary in connection with any such amendment or relocation, (2) locate
under any applicable present or future law any fractions resulting from such
amendment or relocation, (3) locate at-risk state mining claims or at-risk state
leasehold locations on lands selected by the State of Alaska (regardless of the
validity of such selection) that are already covered by unpatented federal lode
mining claims, unpatented federal placer mining claims, unpatented federal mill
sites, or other similar types of locations, (4) apply under any applicable
present or future law for patents, mining leases, or other forms of mineral
tenure for any unpatented federal lode mining claims, unpatented federal placer
mining claims, unpatented federal mill sites, state mining claims, state
leasehold locations, state prospecting sites, or other similar types of
locations included within the Properties, (5) abandon any such claims, sites, or
locations for the purpose of acquiring from the United States, the State of
Alaska, or any Alaska Native corporation rights to the ground covered thereby,
and (6) exchange with or convey to the United States, the State of Alaska, or
any Alaska Native corporation any of the Properties for the purpose of acquiring
rights to the ground covered thereby or other adjacent ground.

(n) The Manager shall keep and maintain
all required accounting and 

AGREEMENT-Page 25 

financial records pursuant to the
Accounting Procedure and in accordance with customary cost accounting practices
in the mining industry. 

(o) The Manager shall keep the
Management Committee advised of all Operations by submitting in writing to the
Management Committee (1) monthly progress reports which include statements of
expenditures and comparisons of such expenditures to the adopted Budget, (2)
periodic summaries of data acquired, (3) copies of reports concerning
Operations; (4) a detailed final report within 60 days after completion of each
Program and Budget, which shall include comparisons between actual and budgeted
expenditures and comparisons between the objectives and results of Programs, and
(5) such other reports as the Management Committee may reasonably request. At
all reasonable times the Manager shall provide the Management Committee or the
representative of any Participant, upon the request of any member of the
Management Committee, access to and the right to inspect and copy the following:
maps; drill logs; core tests; reports; surveys; assays; analyses; production
reports; operational, technical, accounting, and financial records; and any and
all other information acquired in connection with or as a result of Operations.
In addition, the Manager shall allow the non-managing Participant, at the
latter's sole risk and expense, and subject to reasonable safety regulations, to
inspect the Assets and Operations at all reasonable times, so long as the
inspecting Participant does not unreasonably interfere with Operations. 

(p) The Manager shall undertake all
other activities reasonably necessary to fulfill the foregoing. 

The Manager shall not be in default of any duty under this
Section 8.02 if its failure to perform results from the failure of the
non-managing Participant to perform acts or to contribute amounts required of it
by this Agreement. 

     8.03 Standard of Care. The
Manager shall conduct all Operations in a good, workmanlike, and efficient
manner, in accordance with sound mining and other applicable industry standards
and practices, and in accordance with the terms and provisions of leases,
licenses, permits, contracts, and other agreements pertaining to Assets. Except
as otherwise provided by law, the Manager shall not be liable to the
non-managing Participant for any act or omission resulting in damage or loss
except to the extent caused by or attributable to the Manager's willful
misconduct or gross negligence. 

     8.04 Resignation; Deemed Offer
To Resign. The Manager may resign upon 90 days' prior notice to the other
Participant, in which case the other Participant may elect to become the new
Manager by notice to the resigning Participant within 30 days after the notice
of resignation. If any of the following shall occur, the Manager shall be deemed
to have offered to resign, which offer shall be accepted by the other
Participant, if at all, within 

AGREEMENT-Page 26 

30 days following such deemed offer: 

(a) The Participating Interest of the
Manager becomes less than 50%; or 

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

(c) The Manager fails to pay or contest
in good faith its bills within 60 days after they are due; or 

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

(e) The Manager (1) commences a
voluntary case under any applicable bankruptcy, insolvency, or similar law now
or hereafter in effect, (2) consents to the entry of an order for relief in an
involuntary case under any such law or to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator, or other similar official of any substantial part of its assets,
(3) makes a general assignment for the benefit of creditors, (4) fails generally
to pay its or Venture debts as such debts become due, or (5) takes corporate or
other action in furtherance of any of the foregoing; or 

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

     8.05 Payments To Manager.
The Manager shall be compensated for its services and reimbursed for its costs
hereunder in accordance with the Accounting Procedure. 

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

     8.07 Activities During
Deadlock. If the Management Committee for any reason fails to adopt a
Program and Budget, subject to the contrary direction of the Management
Committee and to the receipt of necessary funds, the Manager shall continue
Operations at levels comparable with the last adopted Program and Budget. For
purposes of determining 

AGREEMENT-Page 27 

the required contributions of the Participants and their
respective Participating Interests, the last adopted Program and Budget shall be
deemed extended. 

ARTICLE 9 

PROGRAMS AND BUDGETS 

     9.01 Operations Pursuant To
Programs and Budgets. Except as otherwise provided in Section 9.02, Section
9.08, and Article 13, Operations shall be conducted, expenses shall be incurred,
and Assets shall be acquired only pursuant to approved Programs and Budgets.

     9.02 Operations While FGMI Is
Making Its Initial Contribution. Until FGMI has fulfilled its Initial
Contribution, FGMI shall have the sole right to determine the nature, timing,
scope, extent, and method of all Operations without any obligation to hold
meetings of the Management Committee, to prepare Programs and Budgets for
review, comment or approval by TERYL, or to obtain the approval or consent of
TERYL or the Management Committee. In conducting such Operations, FGMI shall be
entitled, but shall not be obligated, to exercise any of the applicable powers
of the Manager in Section 8.02, except that until FGMI has completed its Initial
Contribution it shall not be entitled or required to perform the activities
described in Section 8.02(g) or Section 8.02(i) that would otherwise require
consent of the Management Committee or TERYL. Prior to completion of its Initial
Contribution, FGMI, in lieu of any reporting requirements under this Agreement,
shall do the following: 

	 	(i) 	
      on a calendar quarter basis, keep TERYL generally
      informed concerning all material Operations and other material activities
      affecting the Area of Interest or Properties;

	 	 	 
	 	(ii) 	
      within two (2) months after the last day of each calendar
      year, furnish to TERYL a reasonably detailed written report of all
      Operations conducted on or for the benefit of the Area of Interest or the
      Properties during said calendar year;

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

	 	 	 
	 	(iv) 	
      on or before a date three (3) months after the last day
      of each calendar year submit to TERYL a statement of Qualifying Expenses
      incurred during the preceding calendar year.

FGMI makes no representation or warranty, express or implied,
as to the accuracy or 

AGREEMENT-Page 28 

completeness of the data and information provided to TERYL in
accordance with (i) through (iii) above. 

     9.03 Presentation of Programs
and Budgets. Proposed Programs and Budgets shall be prepared by the Manager
for a period of one year or any longer period. Each adopted Program and Budget,
regardless of length, shall be reviewed at least once a year at the annual
meeting of the Management Committee. During the period encompassed by any
Program and Budget, and at least two months prior to its expiration, a proposed
Program and Budget for the succeeding period shall be prepared by the Manager
and submitted to the Participants. Each such proposed Program and Budget shall
be in a form and degree of detail customary in the industry. 

     9.04 Review and Approval of
Proposed Programs and Budgets. Within 30 days after submission of a proposed
Program and Budget, each Participant shall submit to the Management Committee:

(a) notice that the Participant
approves the proposed Program and Budget; or 

(b) proposed modifications of the
proposed Program and Budget; or 

(c) notice that the Participant rejects
the proposed Program and Budget. 

If a Participant fails to give any of the foregoing responses
within the allotted time, the failure shall be deemed to be an approval by the
Participant of the Manager's proposed Program and Budget. If a Participant makes
a timely submission to the Management Committee pursuant to Section 9.04(b) or
Section 9.04(c), then the Management Committee shall seek to develop a Program
and Budget acceptable to the Participants.

     9.05 Election To
Participate. By notice to the Management Committee within 20 days after the
final vote adopting a Program and Budget, a Participant may elect to contribute
to such Program and Budget in some lesser amount than the percentage reflected
by its Participating Interest, or not at all, in which cases its Participating
Interest shall be recalculated as provided in Article 6. If a Participant fails
to so notify the Management Committee, the Participant shall be deemed to have
elected to contribute to such Program and Budget in proportion to its
Participating Interest as of the beginning of the period covered by the Program
and Budget. 

     9.06 Deadlock on Proposed
Programs and Budgets. If the Participants, acting through the Management
Committee, fail to adopt a Program and Budget by the beginning of the period to
which the proposed Program and Budget applies, the provisions of Sections 8.07
and 12.02 shall apply. 

     9.07 Budget Overruns; Program
  Changes. The Manager shall immediately notify 

AGREEMENT-Page 29 

the Management Committee of any material departure from an
adopted Program and Budget. If the Manager exceeds an adopted Budget by more
than 10%, then the excess over 10%, unless directly caused by an emergency or
unexpected expenditure made pursuant to Section 9.08 or unless otherwise
authorized by the Management Committee, shall be for the sole account of the
Manager and such excess shall not be included in the calculations of the
Participating Interests. Budget overruns of 10% or less shall be borne by the
Participants in proportion to their respective Participating Interests as of the
time the overrun occurs.

     9.08 Emergency or Unexpected
Expenditures. In case of emergency, the Manager may take any reasonable
action it deems necessary to protect life, limb, or property, to protect the
Assets, or to comply with law or government regulation. The Manager may also
make reasonable expenditures for unexpected events which are beyond its
reasonable control and which do not result from a breach by it of its standard
of care. The Manager shall promptly notify the Participants of the emergency or
unexpected expenditure, and the Manager shall be reimbursed for all resulting
costs by the Participants in proportion to their respective Participating
Interests at the time the emergency or unexpected expenditures are incurred.

ARTICLE 10 

ACCOUNTS AND SETTLEMENTS 

     10.01 Monthly Statements.
The Manager shall promptly submit to the Management Committee monthly statements
of account reflecting in reasonable detail the charges and credits to the Joint
Account during the preceding month. 

     10.02 Cash Calls. On the
basis of the adopted Program and Budget, the Manager shall submit to each
Participant prior to the last day of each month, a billing for estimated cash
requirements for the next month. Within 10 days after receipt of each billing,
each Participant shall advance to the Manager its proportionate share of the
estimated amount. Time is of the essence of the payment of such billings. The
Manager shall at all times maintain a cash balance approximately equal to the
rate of disbursement for up to 30 days. All funds in excess of immediate cash
requirements shall be invested in interest-bearing accounts with a bank
designated by the Management Committee, for the benefit of the Joint Account.

     10.03 Failure To Meet Cash
Calls. A Participant that fails to meet a cash call in the amount and at the
time specified in Section 10.02 shall be in default, and the amount of the
defaulted cash call shall bear interest from the date due at an annual rate
equal to five percentage points over the Prime Rate, but in no event shall said
rate of interest exceed the maximum permitted by law. The non-defaulting
Participant shall have those rights, remedies, and elections specified in
Section 6.04 

     10.04 Audits. Upon request
  made by any Participant within 24 months following 

AGREEMENT-Page 30 

the end of any calendar year (or, if the Management Committee
has adopted an accounting period other than the calendar year, within 24 months
after the end of such period), the Manager shall order an audit of the
accounting and financial records for such calendar year (or other accounting
period). All written exceptions to and claims upon the Manager for discrepancies
disclosed by such audit shall be made not more than 3 months after receipt of
the audit report. Failure to make any such exception or claim within the 3-month
period shall mean the audit is correct and binding upon the Participants. The
audits shall be conducted by a firm of certified public accountants selected by
the Manager, unless otherwise agreed by the Management Committee. 

ARTICLE 11 

DISPOSITION OF PRODUCTION 

     11.01 Taking In Kind. Each
Participant shall take in kind or separately dispose of its share of all
Products in accordance with its Participating Interest. Any extra expenditure
incurred in the taking in kind or separate disposition by any Participant of its
proportionate share of Products shall be borne by such Participant. Nothing in
this Agreement shall be construed as providing, directly or indirectly, for any
joint or cooperative marketing or selling of Products or permitting the
processing of Products of any parties other than the Participants at any
processing facilities constructed by the Participants pursuant to this
Agreement. The Manager shall give the Participants notice at least 10 days in
advance of the delivery date upon which their respective shares of Products will
be available. 

     11.02 Failure of Participant
To Take In Kind. If a Participant fails to take in kind, the Manager shall
have the right, but not the obligation, for a period of time consistent with the
minimum needs of the industry, but not to exceed one year, to purchase the
Participant's share for its own account or to sell such share as agent for the
Participant at not less than the prevailing market price in the area. Subject to
the terms of any such contracts of sale then outstanding, during any period that
the Manager is purchasing or selling a Participant's share of production, the
Participant may elect by notice to the Manager to take in kind. The Manager
shall be entitled to deduct from proceeds of any sale by it for the account of a
Participant reasonable expenses incurred in such a sale. 

ARTICLE 12 

WITHDRAWAL AND TERMINATION 

     12.01 Termination by
Expiration or Agreement. This Agreement shall terminate as expressly
provided in this Agreement, unless earlier terminated by written agreement. 

     12.02 Termination by Deadlock.
  If the Management Committee fails to adopt a 

AGREEMENT-Page 31 

Program and Budget for 12 months after the expiration of the
latest adopted Program and Budget, either Participant may elect to terminate
this Agreement by giving notice of termination to the other Participant. 

     12.03 Withdrawal. A
Participant may elect to withdraw as a Participant from this Agreement by giving
notice to the other Participant of the effective date of withdrawal, which shall
be the later of the end of the then current Program and Budget or at least 30
days after the date of the notice. Upon such withdrawal, this Agreement shall
terminate, and the withdrawing Participant shall be deemed to have transferred
to the remaining Participant, without cost and free and clear of royalties,
liens, or other encumbrances arising by, through or under such withdrawing
Participant, except those exceptions to title described in Part 1 of Exhibit A
and those to which both Participants have given their written consent after the
date of this Agreement, all of its Participating Interest in the Assets and in
this Agreement. Any withdrawal under this Section 12.03 shall not relieve the
withdrawing Participant of its share of liabilities to third persons (whether
such liabilities accrue before or after such withdrawal) arising out of
Operations conducted prior to such withdrawal. For purposes of this Section
12.03, the withdrawing Participant's share of such liabilities shall be equal to
its Participating Interest at the time such liability was incurred. 

     12.04 Continuing
Obligations. On termination of this Agreement under Section 12.01 or Section
12.02, the Participants shall remain liable for continuing obligations hereunder
until final settlement of all accounts and for any liability, whether it accrues
before or after termination, if it arises out of Operations during the term of
the Agreement. 

     12.05 Disposition of Assets on
Termination. Promptly after termination under Section 12.01 or Section
12.02, the Manager shall take all action necessary to wind up the activities of
the Venture, and all costs and expenses incurred in connection with the
termination of the Venture shall be expenses chargeable to the Venture. In
accordance with Exhibit C, any Participant that has a negative Capital Account
balance when the Venture is terminated for any reason shall contribute to the
Assets of the Venture an amount sufficient to raise such balance to zero. The
Assets shall first be paid, applied, or distributed in satisfaction of all
liabilities of the Venture to third parties and then to satisfy any debts,
obligations, or liabilities owed to the Participants. Before distributing any
funds or Assets to Participants, the Manager shall have the right to segregate
amounts which, in the Manager's reasonable judgment, are necessary to discharge
continuing obligations or to purchase, for the account of Participants, bonds or
other securities for the performance of such obligations. The foregoing shall
not be construed to include the repayment of any Participant's capital
contributions or Capital Account balance. Thereafter, any remaining cash and all
other Assets shall be distributed (in undivided interests unless otherwise
agreed) to the Participants, first in the ratio and to the extent of their
respective Capital Accounts and then in proportion to their respective
Participating Interests, subject to any dilution, reduction, or termination of
such Participating Interests as may have occurred pursuant to the terms of this
Agreement. No Participant shall receive a distribution of any interest in
Products or proceeds from the sale thereof if such Participant's Participating
Interest therein has been 

AGREEMENT-Page 32 

terminated pursuant to this Agreement. 

     12.06 Non-Compete
Covenants. A Participant that withdraws pursuant to Section 12.03, or is
deemed to have withdrawn pursuant to Section 5.02 or Section 6.05, and all
Affiliates of such a withdrawing Participant, shall not directly or indirectly
acquire any interest in property within the Area of Interest for 12 months after
the effective date of withdrawal. If a withdrawing Participant, or an Affiliate
of a withdrawing Participant, breaches this Section 12.06, such Participant or
Affiliate shall be obligated to offer to convey to the non-withdrawing
Participant, without cost, any such property or interest so acquired. Such offer
shall be made in writing and can be accepted by the non-withdrawing Participant
at any time within 45 days after it is received by such non-withdrawing
Participant. 

     12.07 Right To Data After
Termination. After termination of this Agreement pursuant to Section 12.01
or Section 12.02, each Participant shall be entitled to copies of all
information acquired hereunder before the effective date of termination not
previously furnished to it, but a terminating or withdrawing Participant shall
not be entitled to any such copies after any other termination or any
withdrawal. 

     12.08 Continuing
Authority. On termination of this Agreement under Section 12.01 or Section
12.02 or the deemed withdrawal of a Participant pursuant to Section 5.02,
Section 6.04(b)(2), or Section 6.05 or the withdrawal of a Participant pursuant
to Section 12.03, the Manager shall have the power and authority, subject to
control of the Management Committee, if any, to do all things on behalf of the
Participants which are reasonably necessary or convenient to (a) wind up
Operations and (b) complete any transaction and satisfy any obligation,
unfinished or unsatisfied, at the time of such termination or withdrawal, if the
transaction or obligation arises out of Operations prior to such termination or
withdrawal. The Manager shall have the power and authority to grant or receive
extensions of time or change the method of payment of an already existing
liability or obligation, prosecute and defend actions on behalf of the
Participants and the Venture, mortgage Assets, and take any other reasonable
action in any matter with respect to which the former Participants continue to
have, or appear or are alleged to have, a common interest or a common liability.

ARTICLE 13 

ACQUISITIONS WITHIN AREA OF INTEREST 

     13.01 General. Any
interest or right to acquire any interest in real property within the Area of
Interest acquired during the term of this Agreement by or on behalf of a
Participant or any Affiliate shall be subject to the terms and provisions of
this Agreement. 

     13.02 Notice To Nonacquiring
Participant. Within 30 days after the acquisition of any interest or the
right to acquire any interest in real property wholly or partially within the

AGREEMENT-Page 33 

Area of Interest (except real property acquired by the Manager
pursuant to a Program), the acquiring Participant shall notify the other
Participant of such acquisition. The acquiring Participant's notice shall
describe in detail the acquisition, the lands and minerals covered thereby, the
cost thereof, and the reasons why the acquiring Participant believes that the
acquisition of the interest is in the best interests of the Participants under
this Agreement. In addition to such notice, the acquiring Participant shall make
any and all information concerning the acquired interest or right available for
inspection by the other Participant. 

     13.03 Option Exercised.
If, within 30 days after receiving the acquiring Participant's notice, the other
Participant notifies the acquiring Participant of its election to accept a
proportionate interest in the acquired interest equal to its Participating
Interest, the acquiring Participant shall convey to the other Participant, by
special warranty deed, such a proportionate undivided interest therein. The
acquired interest shall become a part of the Properties for all purposes of this
Agreement immediately upon the notice of such other Participant's election to
accept the proportionate interest therein. Such other Participant shall promptly
pay to the acquiring Participant its proportionate share of the latter's actual
out-of-pocket acquisition costs. 

     13.04 Option Not
Exercised. If the other Participant does not give such notice within the
30-day period set forth in Section 13.03, it shall have no interest in the
acquired interest, and the acquired interest shall not be a part of the
Properties or be subject to this Agreement. 

ARTICLE 14 

ABANDONMENT AND SURRENDER OF PROPERTIES 

     14.01 Surrender or Abandonment
of Property. The Management Committee may authorize the Manager to surrender
or abandon part or all of the Properties. If the Management Committee authorizes
any such surrender or abandonment over the objection of a Participant, the
Participant that desires to abandon or surrender shall assign to the objecting
Participant, by special warranty deed and without cost to the surrendering
Participant, all of the surrendering Participant's interest in the property to
be abandoned or surrendered, and the abandoned or surrendered property shall
cease to be part of the Properties. 

     14.02 Reacquisition. If
any Properties are abandoned or surrendered under the provisions of this Article
14, then, unless this Agreement is earlier terminated, neither Participant nor
any Affiliate thereof shall acquire any interest in such Properties or a right
to acquire such Properties for a period of two years following the date of such
abandonment or surrender. If a Participant or an Affiliate thereof reacquires
any Properties in violation of this Section 14.02, the other Participant may
elect by notice to the reacquiring Participant or Affiliate within 45 days after
it has actual notice of such reacquisition, to have such properties made subject
to the terms of this Agreement. In the event such an election is 

AGREEMENT-Page 34 

made, the reacquired properties shall thereafter be treated as
Properties, and the costs of reacquisition shall be borne solely by the
reacquiring Participant and shall not be included for purposes of calculating
the Participants' respective Participating Interests. 

ARTICLE 15 

TRANSFER OF INTEREST 

     15.01 General. A
Participant shall have the right to Transfer to any third party all or any part
of its interest in or to this Agreement, its Participating Interest, or the
Assets solely as provided in this Article 15. 

     15.02 Limitations on Free
Transferability. The right of a Participant to Transfer to any third party
all or any part of its interest in or to this Agreement, its Participating
Interest, or the Assets as provided in this Article 15 shall be subject to the
following terms and conditions: 

(a) No transferee of all or any part of
the interest of a Participant in this Agreement, any Participating Interest, or
the Assets shall have the rights of a Participant unless and until (1) the
transferring Participant has provided to the other Participant notice of the
Transfer and (2) except as provided in Section 15.02(g) and Section 15.02(h),
the transferee, as of the effective date of this Transfer, has committed in
writing to be bound by this Agreement to the same extent as the transferring
Participant; 

(b) No Participant, without the consent
of the other Participant, shall make a Transfer which shall cause termination of
the tax partnership established by the provisions of Section 4.02; 

(c) No Transfer permitted by this
Article 15 shall relieve the transferring Participant of its share of any
liability, whether accruing before or after such Transfer, which arises out of
Operations conducted prior to such Transfer; 

(d) As provided in Exhibit C, Article
4, the transferring Participant and the transferee shall bear all tax
consequences of the Transfer; 

(e) In the event of a Transfer of less
than all of a Participating Interest, the transferring Participant and its
transferee shall act and be treated as one Participant; 

(f) No Participant shall Transfer any
interest in this Agreement or the Assets except by Transfer of part or all of
its Participating Interest; 

AGREEMENT-Page 35 

(g) If the Transfer is the grant of a
security interest by deed of trust, mortgage, pledge, lien, or other encumbrance
of any interest in this Agreement, any Participating Interest, or the Assets to
secure a loan or other indebtedness of a Participant in a bona fide transaction,
such security interest shall be subordinate to the terms of this Agreement and
the rights and interests of the other Participant hereunder. Upon any
foreclosure or other enforcement of rights in the security interest the
acquiring third party shall be deemed to have assumed the position of the
encumbering Participant with respect to this Agreement and the other
Participant, and it shall comply with and be bound by the terms and conditions
of this Agreement. 

(h) If a sale or other commitment or
disposition of Products or proceeds from the sale of Products by a Participant
upon distribution to it pursuant to Article 11 creates in a third party a
security interest in Products or proceeds therefrom prior to such distribution,
such sales, commitment, or disposition shall be subject to the terms and
conditions of this Agreement; and 

(i) If, contrary to Section 15.02(b), a
Transfer is made which causes termination of the tax partnership established by
Section 4.02, the transferring Participant shall indemnify, defend, and hold
harmless the other Participant from and against any and all loss, cost, expense,
or damage arising from such termination. 

(j) Only United States currency shall
be used for Transfers for consideration. 

     15.03 Preemptive Right.
Except as otherwise provided in Section 15.04, if a Participant desires to
Transfer all or any part of its interest in this Agreement, any Participating
Interest, or the Assets, the other Participant shall have a preemptive right to
acquire such interests as provided in this Section 15.03. 

(a) A Participant intending to Transfer
all or any part of its interest in this Agreement, any Participating Interest,
or the Assets shall promptly notify the other Participant of its intentions. The
notice shall state the price and all other pertinent terms and conditions of the
intended Transfer, and shall be accompanied by a copy of the offer or contract
for sale. The other Participant shall have 30 days from the date such notice is
delivered to notify the transferring Participant whether it elects to acquire
the offered interest at the same price and on the same terms and conditions as
set forth in the notice. If it does so elect, the Transfer shall be consummated
promptly after notice of such election is delivered to the transferring
Participant. 

(b) If the other Participant fails to
so elect within the period provided for in Section 15.03(a), the transferring
Participant shall have 120 days following 

AGREEMENT-Page 36 

the expiration of such period to
consummate the Transfer to a third party at a price and on terms no less
favorable than those offered by the transferring Participant to the other
Participant in the notice required in Section 15.03(a) . 

(c) If the transferring Participant
fails to consummate the Transfer to a third party within the period set forth in
Section 15.03(b), the preemptive right of the other Participant in such offered
interest shall be deemed to be revived. Any subsequent proposal to Transfer such
interest shall be conducted in accordance with all of the procedures set forth
in this Section 15.03 

     15.04 Exceptions To Preemptive
Right. Section 15.03 shall not apply to the following: 

(a) Transfer by a Participant of all or
any part of its interest in this Agreement, any Participating Interest, or the
Assets to an Affiliate; 

(b) incorporation of a Participant, or
corporate merger, consolidation, amalgamation, or reorganization of a
Participant by which the surviving entity shall possess substantially all of the
stock, or all of the property rights and interests, and be subject to
substantially all of the liabilities and obligations of that Participant; 

(c) the grant by a Participant of a
security interest in any interest in this Agreement, any Participating Interest,
or the Assets by deed of trust, mortgage, pledge, lien, or other encumbrance; or

(d) a sale or other commitment or
disposition of Products or proceeds from sale of Products by a Participant upon
distribution to it pursuant to Article 11. 

ARTICLE 16 

DISPUTES 

     All disputes arising under or in
connection with this Agreement which cannot be resolved by agreement between the
parties shall be resolved in accordance with applicable law. 

ARTICLE 17 

CONFIDENTIALITY 

AGREEMENT-Page 37 

     17.01 General. The
financial terms of this Agreement and all information obtained in connection
with the performance of this Agreement shall be the exclusive property of the
Participants and, except as provided in Section 17.02, shall not be disclosed to
any third party or the public without the prior written consent of the other
Participant, which consent shall not be unreasonably withheld. 

     17.02 Exceptions. The
consent required by Section 17.01 shall not apply to a disclosure: 

(a) to an Affiliate, consultant,
contractor, or subcontractor that has a bona fide need to be informed; 

(b) to any third party to whom the
disclosing Participant contemplates a Transfer of all or any part of its
interest in or to this Agreement, its Participating Interest, or the Assets; or

(c) to a governmental agency or to the
public which the disclosing Participant believes in good faith is required by
pertinent law or regulation or the rules of any stock exchange. 

In any case to which this Section 17.02 is applicable, the
disclosing Participant shall give notice to the other Participant of the
information to be disclosed at least ten (10) days—or, in the case of press
releases or other disclosures pursuant to Section 17.02(c) above, two (2) days
(i.e., 48 hours)—prior to the making of the disclosure, and the disclosing
Participant shall disclose (i) in connection with disclosures under Section
17.02(a) or 17.02(b) above, only such confidential information as the recipient
has a legitimate need to know or (ii) in connection with disclosures under
Section 17.02(c) above, only such confidential information as the disclosing
Participant is required to disclose. In addition, in connection with any
disclosure made under Section 17.02(a) or 17.02(b) above, the recipient shall
first agree in writing to hold all such information confidential in accordance
with this Section 17, and in connection with any disclosures in the form of
press releases issued under Section 17.02(c) above, the disclosing Participant
must first obtain the other Participant 's consent to the form and content of
the disclosure (which consent may not be unreasonably withheld). 

     17.03 Duration of
Confidentiality. The provisions of this Article 17 shall apply during the
term of this Agreement and for two years following expiration of this Agreement
or termination of this Agreement pursuant to Section 12.01 or Section 12.02, and
shall continue to apply to any Participant that withdraws, that is deemed to
have withdrawn, or that Transfers its Participating Interest, for two years
following the date of such occurrence. 

AGREEMENT-Page 38 

ARTICLE 18 

GENERAL PROVISIONS 

     18.01 Notices. All
notices, payments and other required communications ("Notices") to the
Participants shall be in writing, and shall be addressed respectively as
follows: 

	 	FAIRBANKS GOLD MINING, INC. 
	 	Attention: 	Steve Lang 
	 	#1 Fort Knox Road (99712) 
	 	P.O. Box 73726 
	 	Fairbanks, Alaska 99707-3726 
	 	Telephone: 	907-488-4653 
	 	Fax: 	907-490-2290 
	 	  	  
	 	TERYL, INC. 	  
	 	10751 Shellbridge Way, Suite 185 
	 	Richmond, British Columbia V6X 2W8 
	 	Telephone: 	604-278-5996 
	 	Fax: 	604-278-3409 

All Notices shall be given (a) by personal delivery to the
Participant, (b) by electronic communication, with a confirmation sent by
registered or certified mail return receipt requested, or (c) by registered or
certified mail return receipt requested. All Notices shall be effective and
shall be deemed delivered (a) if by personal delivery, on the date of delivery
if delivered during normal business hours or on the next business day following
delivery if not delivered during normal business hours, (b) if by electronic
communication, on the next business day following the day of receipt (said day
of receipt being the day of receipt at the office of the recipient) of the
electronic communication, and (c) if solely by mail, on the next business day
after actual receipt. A Participant may change its address by Notice to the
other Participant. 

     18.02 U.S. Currency. All
references to dollars ($) in this Lease refer to United States currency. 

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

     18.04 Force Majeure.
Except for the obligation to make payments when due hereunder, the obligations
of a Participant shall be suspended to the extent and for the period that
performance is prevented by any cause, whether foreseeable or unforeseeable,
beyond 

AGREEMENT-Page 39 

its reasonable control, including but not limited to the following:  acts of God; laws, regulations, orders, proclamations, instructions, or requests of any government or governmental entity; judgments or orders of any court; inability to obtain on
reasonably acceptable terms any public or private license, permit, or other authorization; curtailment or suspension of activities to remedy or avoid an actual or alleged, present or prospective, violation of federal, state, or local environmental
standards; acts of war or conditions arising out of or attributable to war, whether declared or undeclared; riot, civil strife, insurrection, or rebellion; labor disputes (however arising and whether or not employee demands are reasonable or within
the power of the Participant to grant); earthquake, sink holes, explosion, fire, storm, flood, drought, or other adverse physical condition; delay or failure by suppliers or transporters of materials, parts, supplies, services, or equipment or by
contractors' or subcontractors' shortage of, or inability to obtain, labor, transportation, materials, machinery, equipment, supplies, utilities, or services; accidents; breakdown of equipment, machinery, or facilities; or any other cause whether
similar to dissimilar to the foregoing. The affected Participant shall promptly give notice to the other Participant of the suspension of performance, stating therein the nature of the suspension, the reasons therefor, and the expected duration
thereof. The affected Participant shall resume performance as soon as reasonably possible. During the period of suspension the obligations of the Participants to advance funds pursuant to Section 10.02 shall be reduced to levels consistent with
Operations. 

     18.05 Governing Law.  This Agreement shall be interpreted, construed, and enforced in accordance with, and otherwise governed in all respects by, the laws of the State of Alaska. 

     18.06 Rule Against Perpetuities. Any right or option to acquire any interest in real or personal property under this Agreement must be exercised, if at all, so as to vest such interest in the acquirer within 89
years after the effective date of this Agreement. 

     18.07 Further Assurances. Each of the Participants agrees to take from time to time such actions and execute such additional instruments as may be reasonably necessary or convenient to implement and carry out the
intent and purpose of this Agreement. 

     18.08 Survival of Terms and Conditions. The following Sections shall survive the termination of this Agreement to the full extent necessary for their enforcement and the protection of the Participant in whose
favor they run: Sections 2.02, 2.05, 4.05, 6.04, 6.06, 10.03, 12.03, 12.04, 12.05, 12.06, 12.07 and 12.08. 

     18.09 Entire Agreement; Modification; Successors and Assigns. This Agreement contains the entire understanding of the Participants and supersedes all prior agreements and understandings between the Participants
relating to the subject matter hereof.  No modification of this Agreement shall be valid unless made in writing and duly executed by the Participants. This Agreement shall be binding upon and inure to the benefit of the respective successors and
permitted assigns of the Participants. In the event of any conflict 

AGREEMENT-Page 40 

between this Agreement and any Exhibit attached hereto, the
terms of this Agreement shall be controlling. 

     18.10 Memorandum.
Simultaneous with the execution of this Agreement, the Participants shall
execute, acknowledge, and deliver to the Manager for recording and filing in the
appropriate recording districts and Uniform Commercial Code filing offices a
memorandum agreement in the form of Exhibit G and such Financing Statements (to
which a copies of said memorandum agreement shall be attached) as may be
necessary to provide constructive notice of this Agreement and the rights of the
Participants hereunder. The Manager shall record and file in the proper
recording districts and Uniform Commercial Code filing offices all such
documents delivered to it by the Participants. This Agreement shall not be
recorded. 

     IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first above written. 

	 	FAIRBANKS GOLD MINING, INC., 
	 	 
	 	By: 	/s/
      Steve Lang 
	 	Its: 	Vice
      President 
	 	 	 
	 	 	 
	 	TERYL, INC. 
	 	 
	 	By: 	/s/
      John Robertson 
	 	  	President 

AGREEMENT-Page 41 

	STATE OF ALASKA 	) 	  
	  	) 	ss. 
	FOURTH JUDICIAL DISTRICT 	) 	  

     THIS IS TO CERTIFY that on the
28th day of September, 1999, at Fairbanks, Alaska, the foregoing
instrument was acknowledged before me by (name) STEVE LANG , (title)
Vice President of FAIRBANKS GOLD MINING, INC., a Delaware corporation, on
behalf of the corporation. 

GIVEN UNDER MY HAND and official seal the day and year last
above written. 

	 	Notary Public for Alaska 	/s/ Nicole Thibodeau 
	 	My commission expires 	9/3/03 

	PROVINCE OF BRITISH COLUMBIA 	) 	  
	  	) 	ss. 
	COUNTY OF
      VANCOUVER 	) 	  

	
      THIS IS TO CERTIFY that on the 24TH day of
      September , 1999, at Richmond , British Columbia, the
      foregoing instrument was acknowledged before me by (name) John
      Robertson , (title) President of TERYL, INC., a Delaware
      corporation, on behalf of the corporation. 

	 
	GIVEN UNDER MY HAND and official seal the day and year last
      above written. 

	 	/s/
      Douglas B. Graves 
	 	Notary Public for British Columbia 
	 	My commission expires at the pleasure
  
	 	of Her Majesty The Queen

Douglas B. Graves 
Barrister and Solicitor 
#317 – 8055
Anderson Road 
Richmond, BC V6Y 1S2 
276-0069 

AGREEMENT-Page 42Filed by Automated Filing Services Inc. (604) 609-0244 - Teryl Resources Corp. - Exhibit 4.3

AGREEMENT

THIS AGREEMENT is dated for reference the 5th day of
March, 2002.

BETWEEN:

LINUXWIZARDRY SYSTEMS,
INC.
#120, 3011 Viking Way 
Richmond, BC V6V 1W1

("Linux")

OF THE FIRST PART

 AND:

TERYL RESOURCES CORP.
#120,
3011 Viking Way 
Richmond, BC V6V 1W1

("Teryl")

OF THE SECOND PART

WHEREAS:

	A. 	
      Linux owns a 50% interest in 30 claims in Fairbanks,
      Alaska called the Fish Creek Claims;

	 	 
	B. 	
      Teryl agrees to joint venture the Fish Creek
    Claims;

NOW THEREFORE in consideration of the mutual covenants and
conditions set forth herein, the parties hereto agree as follows:

	1. 	
      200,000 treasury shares of Teryl upon signing and
      approval by the regulatory bodies.

	 	 
	2. 	
      Linux will hold a 5% net royalty interest until $200,000
      U.S. has been received or Teryl pays a payment of $500,000 U.S. within one
      year after production of the Fish Creek Claims.

	 	 
	3. 	
      Teryl agrees to expend $500,000 U.S. within three years
      from the date of this Agreement.

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the day and year first above written.

	LINUXWIZARDRY SYSTEMS, INC. 	 	TERYL RESOURCES CORP. 
	 	 	 
		 	 
	Signature 	 	Signature 
	 	 	 
	 	 	 
	Print Name 	 	Print Name 
	 	 	 
	 	 	 
	Title 	 	Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]