Document:

United States of America
State of Arizona
County of Santa Cruz

                      MINERAL RIGHTS PLEDGE AGREEMENT

      THIS IS A MINERAL RIGHTS PLEDGE AGREEMENT ("this Agreement") among Scott
Goldstein, individually, Stealth Enterprises Inc., an Illinois Corporation and
Oro Blanco, LLC, a Nevada limited liability company, (each a "Pledgor and
collectively, the "Pledgors") and GCA Strategic Investment Fund Limited, a
Bermuda corporation (the "Pledgee"), and dated as of May ___, 2005, and by which
such parties, as an inducement for and in consideration of the lendings and
extensions of credit described below and the mutual promises contained in this
Agreement and other good and valuable consideration the mutuality, adequacy and
sufficiency and receipt of which are hereby acknowledged, hereby agree as
follows:

      1. Background Information. The Pledgors are the owners of certain mineral
rights of and pertaining to the real property set out in Exhibit A attached
hereto and made a part hereof (the "Minerals"). The Pledgee has entered into a
Securities Purchase Agreement and related Transactional Documents (as that term
is defined therein) dated as of May 3, 2005 (said Agreements, as they may
hereafter be amended or otherwise modified from time to time, being the "Credit
Agreements"; the terms defined in the Credit Agreements and not otherwise
defined in this Agreement being used in the Credit Agreement as defined in the
Credit Agreement) with Galaxy Minerals, Inc., a Florida corporation (the
"Borrower"). It is a condition precedent to the Pledgee's lending and extension
of the financial accommodations to the Borrower that the Pledgors shall have
granted the security interest contemplated by this Agreement and have entered
into this Agreement.

      2. Pledge. The Pledgors hereby pledge to the Pledgee, and grant to the
Pledgee a security interest in, the following (the "Pledged Collateral"):

            (a) all those certain mineral interests in the patented and
unpatented placer and/or lode mining claims known as the Yellow Jacket and
Phoenix Mines and more particularly described in Exhibit A hereto (the
"Property");

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Pledge Agreement
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            (b) all proceeds received by Pledgors from that certain Joint
Venture Agreement between Stealth Enterprises Inc., Oro Blanco, LLC and
Borrower, formerly known as Yellow Jacket Finance limited.

            (c) all proceeds of any of the foregoing.

      3. Security for Obligations. The Pledgee's security interest in the
Pledged Collateral secures the payment and performance of all obligations of the
Borrower now or hereafter existing under the Credit Agreements, whether for
principal, interest, fees, expenses or otherwise, and all obligations of the
Borrower now or hereafter existing under this Agreement and any and all
extensions or renewals of the foregoing in whole or in part, and all other
obligations of the Borrower to the Pledgee, whether now owed or hereafter
arising and whether direct or indirect, absolute or contingent, individual,
joint or several, and whether owed as a drawer, maker, endorser, guarantor,
surety or otherwise (all such obligations being the "Obligations").

      4. Security Interest Absolute. The security interests granted hereby and
all rights of the Pledgee under this Agreement, and all obligations of the
Pledgors under this Agreement, shall be absolute and unconditional irrespective
of:

            (a) any lack of validity or enforceability of the Credit Agreements,
the Notes or any other agreement or instrument relating to the Obligations;

            (b) any change in the time, manner or place of payment of, or in any
other term of, any or all of the Obligations, or any other amendment or waiver
of or any consent to any departure from the Credit Agreements, the Notes or any
other agreement or instrument relating to the Obligations;

            (c) any exchange, release or non-perfection of any other collateral
for all or any of the Obligations, or any release or amendment or waiver of or
consent to departure from any guaranty for all or any of the Obligations; or

            (d) any other circumstance (other than the payment in full of the
Obligations and termination of the Credit Agreements) which might otherwise
constitute a defense available to, or a discharge of, the Borrower in respect of
the Obligations or the Pledgors in respect of this Agreement.

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      5. Waiver of Claims. Pledgors hereby irrevocably waive and release the
Borrower from all "claims" (as defined in Bankruptcy Code ss.101(4)) to which
the Pledgors are or would be entitled by virtue of the pledge of the Pledged
Collateral or the performance of the Pledgors' obligations hereunder, including,
without limitation, any right of subrogation (whether contractual, under
Bankruptcy Code ss.509 or otherwise), reimbursement, contribution, exoneration
or other similar right, or indemnity, or any right of recourse to security for
any of the obligations secured hereby.

      6. Memorandum for Recording; Further Assurances. Concurrent with or within
a reasonable amount of time after the execution of this Agreement, the parties
agree to execute for recording purposes a written form of mortgage, deed of
trust, security deed, deed to secure debt or similar document, setting forth the
basic terms and conditions of this Agreement as necessitated or permitted by
Arizona law.

      7. Representations and Warranties.

            (a) By the Pledgors. The Pledgors, individullay and collectively,
represent and warrant as follows:

                  (i) The Pledgors are the legal and beneficial owner of the
Pledged Collateral free and clear of any lien, security interest, option or
other charge or encumbrance, except for the security interest created by this
Agreement.

                  (ii) The pledge of the Property pursuant to this Agreement
creates a valid and perfected first priority security interest in the Pledged
Collateral securing the payment of the Obligations.

                  (iii) No authorization, approval, or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for the pledge by the Pledgors of the Pledged Collateral pursuant to
this Agreement or for the execution, delivery or performance of this Agreement
by the Pledgors.

            (b) By All Parties. Each party represents and warrants to the other
(i) that it or he has the power and authority to enter into this Agreement and
to carry out its terms and conditions and (ii) that the carrying out of the
terms and conditions of this Agreement is not restricted by or in violation
either of any applicable law to which it or he is subject or of any
organizational documents (including articles or certificates of incorporation or
bylaws or partnership agreements, as amended or restated), agreement,
commitment, order, ruling or proceeding to which it or he is a party or to which
it or he or any of its or his assets are subject.

      8. No Transfers or Liens. The Pledgors agree that it will not (i) sell or
otherwise dispose of, or grant any option with respect to, any of the Pledged
Collateral, or (ii) create or permit to exist any lien, security interest, or
other charge or encumbrance upon or with respect to any of the Pledged
Collateral, except for the security interest under this Agreement.

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      9. Pledgee May Perform; Pledgee Appointed Attorney-in-Fact. The Pledgors
hereby appoint the Pledgee the Pledgors' attorney-in-fact, with full authority
in the place and stead of the Pledgors and in the name of the Pledgors or
otherwise, from time to time in the Pledgee's discretion to take any action and
to execute any instrument which the Pledgee deems necessary or advisable to
accomplish the purposes of this Agreement, including without limitation to
execute and record any and all instruments necessary or desirable under Arizona
law. If the Pledgors fail to perform any agreement contained herein, the Pledgee
may itself perform, or cause performance of, such agreement, and the expenses of
the Pledgee incurred in connection therewith shall be payable by the Pledgors
under section 12 below.

      10. Events of Default. The occurrence of any one or more of the following
shall constitute an Event of Default under this Agreement:

            (a) The failure of the Borrower to pay, as and when the same shall
become due and payable [and after taking into account any cure periods], any of
the Obligations;

            (b) The failure of the Pledgors or Borrower to perform any of its
other agreements or obligations in this Agreement, the Credit Agreements or in
any other agreement now or hereinafter existing between the Pledgors and the
Pledgee or Borrower and the Pledgee and such default shall continue for a period
of five (5) days after written notice thereof has been given to the Pledgors by
Pledgee;

            (c) The failure of the Borrower to pay, as and when the same shall
become due and payable, any principal of or interest on any other obligation for
borrowed money or any obligation secured by purchase money mortgage or title
retention lien beyond any period of grace provided with respect thereto, or the
failure in the performance of any other agreement, term or condition contained
in an agreement under which any such obligation is created, if the effect of
such failure is to cause, or to permit the holder or holders of such obligations
(or a trustee on behalf of such holder or holders) to cause, such obligation to
become due prior to its stated maturity;

            (d) If at any time any representation, warranty, statement,
certificate, schedule or report made by the Pledgors to the Pledgee in this
Agreement shall prove to have been false or misleading in any material respect
as of the time made or furnished;

            (e) Should any Pledgor or any endorser or guarantor of the
Obligations generally not pay its debts as such debts become due, or admit in
writing its inability to pay its debts generally, or make a general assignment
for the benefit of creditors, or should any proceedings be instituted by or
against any Pledgor seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debt under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian, or other
similar official for it or for any substantial part of its property (and, in the
case of any such proceeding instituted against any Pledgor, should the same
remain undismissed or unstayed for a period of fifteen (15) days), or should any
Pledgor take corporate action to authorize any of the actions set forth in this
subsection (c);

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Pledge Agreement
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            (f) If any Pledgor, or any endorser or guarantor of any of the
Obligations, is liquidated or dissolved or its articles of incorporation expire
or are revoked; or

            (g) The occurrence of any "Event of Default" under the Credit
Agreement, as the same may be amended, modified or supplemented from time to
time.

      11. Remedies upon Default. If any Event of Default shall have occurred and
be continuing:

            (a) Sale. The Pledgee may exercise in respect of the Pledged
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party upon
default under the Code of the State of Arizona at that time, and the Pledgee may
also, without notice except as specified below, sell the Pledged Collateral or
any part thereof in one or more parcels at public or private sale, at any
exchange, broker's board or at any of the Pledgee's offices or elsewhere, for
cash, on credit or for future delivery, and at such price or prices and upon
such other terms as the Pledgee may deem commercially reasonable. The Pledgee
shall not be obligated to make any sale of Pledged Collateral regardless of
notice of sale having been given. The Pledgee may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefore,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned.

            (b) Proceeds. Any cash held by the Pledgee as Pledged Collateral and
all cash proceeds received by the Pledgee in respect of any sale of, collection
from, or other realization upon all or any part of the Pledged Collateral may,
in the discretion of the Pledgee, be held by the Pledgee as collateral for,
and/or then or at any time thereafter applied (after payment of any amounts
payable to the Pledgee pursuant to section 12 below) in whole or in part by the
Pledgee against, all or any part of the Obligations in such order as the Pledgee
shall elect. Any surplus of such cash or cash proceeds held by the Pledgee and
remaining after payment in full of all the Obligations shall be paid over to the
Pledgors or to whomsoever may be lawfully entitled to receive such surplus.

            (c) Notice. Any requirement imposed by law regarding the giving to
the Pledgor of prior notice of any sale or other disposition of the Pledged
Collateral shall be deemed reasonable if given by the Pledgee in writing at
least ten (10) [business] days prior to such sale or other disposition,
specifying the time and place thereof.

            (d) Status of Pledgors. Any purchaser at a sale conducted pursuant
to the terms of this Agreement shall hold the property sold absolutely, free
from any claim or right on the part of the Pledgors, and the Pledgors hereby
waive any right of redemption, stay or appraisal under present or future law.

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Pledge Agreement
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            (e) Return of Pledged Collateral. Upon the satisfaction in full of
the Obligations, the Pledgors shall be entitled to the return, upon its request
and at its expense, of such of the Pledged Collateral as shall not have been
sold or otherwise applied pursuant to the terms hereof.

      12. Expenses. The Pledgors, joint and severally, upon demand, will pay to
the Pledgee the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the Pledgee may incur in connection with (a) the administration of this
Agreement, (b) the custody or preservation of, or the sale of, collection from,
or other realization upon, any of the Pledged Collateral, (c) the exercise or
enforcement of any of the rights of the Pledgee hereunder, or (d) the failure by
the Pledgors to perform or observe any of the provisions hereof.

      83. Continuing Security Interest; Transfer of Note. This Agreement shall
create a continuing security interest in the Pledged Collateral and shall (a)
remain in full force and effect until payment in full of the Obligations, (b) be
binding upon the Pledgor, its successors and assigns, and (c) inure to the
benefit of the Pledgee and its permitted, if any, successors, transferees and
assigns. Without limiting the generality of the foregoing clause (c), the
Pledgee may assign or otherwise transfer the Note to any other person, and such
other person shall thereupon become vested with all the benefits in respect
thereof granted to the Pledgee herein or otherwise.

      94. Indemnification. The Pledgors, joint and severally, hereby agree that
they shall indemnify and hold the Pledgee harmless from and against any and all
costs, expenses, claims, causes of action, damages, injury, or harm suffered by
the Pledgee or asserted against the Pledgee relating to Pledgee's performance
under this Agreement. The Pledgee, so long as it acts diligently in good faith,
shall not have any liability whatsoever to the Pledgors for any act, failure,
refusal or omission to act under this Agreement.

      105. Termination. Upon the final payment of all Obligations and provided
that the Pledgee shall be under no further obligation to lend or advance funds
to the Borrower constituting Obligations and satisfaction of all liabilities and
obligations under this Agreement, the pledge and the grant of the security
interest under this Agreement and all related obligations of the Pledgors and
rights of the Pledgee shall terminate and the Pledgee shall cancel or otherwise
quitclaim its interest in the Pledged Collateral to whosoever shall be lawfully
entitled to the same, marked "Terminated--Underlying Obligations Satisfied" and
dated and signed by the Pledgee.

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Pledge Agreement
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      16. Miscellaneous.

            (a) Survival. All representations, warranties, covenants and
agreements herein contained shall survive the execution and delivery of this
Agreement and the pledge of the Pledged Collateral, the remedies of a party for
breaches of representations, warranties, covenants or agreements shall not be
affected by any investigation by, or knowledge of, the non-breaching party prior
to the date of this Agreement, and each party shall indemnity, defend and hold
the other harmless for all losses, costs and expenses (including reasonable
attorneys' fees) arising out of its breach of any representation, warranty,
covenant or agreement made by it in this Agreement.

            (b) Further Assurances. Each party shall do such further acts, and
shall execute and deliver such additional conveyances, assignments, agreements
and instruments, as another party may at any time request in connection with the
administration and enforcement of this Agreement or relating to the Pledged
Collateral or any part of it, or in order better to assure and confirm to the
requesting party its rights, powers and remedies under this Agreement.

            (c) Exhibits. Each exhibit, each attachment to an exhibit and each
other attachment to this Agreement is hereby incorporated into, and is hereby
made a part of, this Agreement as if set out in full in the first place that
reference is made to it.

            (d) Notices. All notices, communications and deliveries under this
Agreement (i) shall be made in writing signed by the party making the same to
the address [and with copies] as specified below, (ii) shall specify the section
of this Agreement pursuant to which given, (iii) shall be given either (A) in
person or (B) by telecopier, by first class mail [Express Mail] or by Federal
Express or comparable next business day delivery service, (iv) unless given in
person, shall be given to the address specified below, (v) shall be deemed to be
given if delivered in person, on the date delivered, if sent by telecopier, on
the date of telephonic confirmation of receipt, if mailed first class registered
or certified mail, return receipt requested, Express Mail (with postage and
other fees prepaid), on the date mailed, or if given by Federal Express or
comparable next business day delivery service, on the date sent, and (vi) shall
be deemed received if delivered in person, on the date of personal delivery, if
telecopied, on the date of telephonic confirmation of receipt, or if so mailed,
on the fifth (5) day after so mailed, or if given by Federal Express or
comparable next business day delivery service, on the first business day after
sent. To the extent practicable, any notice not given personally shall also be
given by telecopier or similar means, but the failure to give such additional
telecopied notice shall not affect the validity of notice otherwise duly given.
The addresses and requirements for copies are as follows:

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Pledge Agreement
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            If to Pledgee, to:

                  GCA Strategic Investment Fund
                  c/o Prime Management Limited
                  Mechanics Building 12 Church Street
                  Hamilton HM II, Bermuda
                    Telecopier No: 441-295-3926
                    Confirmation No: 441-295-0329

               with a copy to:

                        Global Capital Advisors, LLC
                        P.O. Box 457
                        Frederiksted, VI  00841
                          Telecopier No: 340-719-3974
                          Confirmation No: 340-772-7772

            If to Pledgors, to:

                  Scott Goldstein
                  --------------------------------
                  --------------------------------
                    Telecopier No: _______________
                    Confirmation No: _____________

                  Stealth Enterprises, Inc.
                  441 N. Crooked Lake Lane
                  Lindenhurst, IL  60046
                    Telecopier No: 847-265-1530
                    Confirmation No: _____________

                  Oro Blanco, LLC
                  500 Park Avenue, Suite 203
                  Lake Villa, IL  60046
                    Telecopier No: 847-265-1603
                    Confirmation No: 847-265-7600

               with a copy to:
                        Robert Ouriel, Esq.
                        Law Offices of Ouriel & Sendzischew, PA
                        11693 San Vicente Blvd., Suite 436
                        Los Angeles, CA  90049
                          Telecopier No: 310-826-4536
                          Confirmation No: 310-403-5055

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Such notice shall be given at such other address or to such other representative
as a party to this Agreement may furnish pursuant to this subsection (d) to the
other parties. If notice is given pursuant to this subsection (d) of a permitted
successor or assign of a party, then notice shall thereafter be given as set
forth above also to such successor or assign of such party.

            (e) Time of the Essence; Computation of Time. Time is of the essence
of each and every provision of this Agreement. Whenever the last day for the
exercise of any privilege or the discharge of any duty under this Agreement
shall fall upon Saturday, Sunday or any public or legal holiday, whether federal
or of a state in which the person or entity having such privilege or duty
resides or has its principal place of business, the party having such privilege
or duty shall have until 5:00 p.m. on the next succeeding regular business day
to exercise such privilege or to discharge such duty.

            (f) Assignment; Successors in Interest.

                  (i) Assignment. Except with the prior written consent of the
other party, no assignment or transfer by a party of its rights and obligations
under this Agreement may be made; provided, however, that the Pledgee may assign
or transfer its rights and obligations to an entity in common control with or a
successor to a substantial portion or all of its business (but then only if such
entity expressly assumes all obligations and liabilities of the Pledgee under
this Agreement, and in such event, the Pledgee shall remain liable for the
performance of all its obligations under this Agreement, which liability shall
be a primary obligation for full and prompt performance rather than a secondary
guarantee of collectibility or damages), and no transfer by Pledgee of all or a
substantial portion of its business shall be made unless its obligations under
this Agreement are assumed in connection with such transfer either by operation
of law or by specific assumption executed by the transferee. No consent to
assignment under this Agreement may be unreasonably withheld.

                  (ii) Binding Nature. This Agreement is binding upon the
parties and their respective successors and assigns, inures to the benefit of
the parties and their respective permitted successors and assignees (and to or
for the benefit of no other person or entity whatsoever); and upon an assignment
any reference to a party shall also be a reference to a successor or assign.

            (g) Number; Gender; Captions; Certain Definitions. Whenever the
context so requires, the singular includes the plural, the plural includes the
singular, and the gender of any pronoun includes the other genders. Titles and
captions of or in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit, extend or describe the scope of
this Agreement or the intent of any provision of this Agreement. The parties
agree: (i) to all definitions in the statement of parties and in the "Background

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Pledge Agreement
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Statement" and other introductory language to this Agreement; (ii) that
"applicable law" means all provisions of any constitution, statute, law, rule,
regulation, decision, order, decree, judgment, release, license, permit,
stipulation or other official pronouncement enacted, promulgated or issued by
any governmental authority or arbitrator or arbitration panel; (iii) that
"governmental authority" means any legislative, executive, judicial,
quasi-judicial or other public authority, agency, department, bureau, division,
unit, court or other public body or person; (iv) that "including" and other
words or phrases of inclusion, if any, shall not be construed as terms of
limitation, so that references to "included" matters shall be regarded as
non-exclusive, non-characterizing illustrations; (v) that "party", "parties" and
variations of them means any, some or all, as appropriate, of the persons who
have executed and delivered this Agreement, each permitted successor or assign
of a party, and when appropriate to effect the binding nature of this Agreement
for the benefit of another party, any other successor or assign of a party; (vi)
that "person" shall mean any individual, sole proprietorship, partnership, joint
venture, limited liability company, estate, trust, unincorporated organization,
association, corporation, institution, or other entity or governmental
authority; and (vii) that "this Agreement" includes any amendments or other
modifications and supplements, and all exhibits, schedules and other
attachments, to it.

            (h) Severability. Any determination by any court of competent
jurisdiction of the invalidity of any provision of this Agreement that is not
essential to accomplishing its purposes shall not affect the validity of any
other provision of this Agreement, which shall remain in full force and effect
and which shall be construed as to be valid under applicable law.

            (i) Remedies Cumulative. The remedies of a party provided in this
Agreement are cumulative and shall not exclude any other remedies to which any
party to this Agreement may be lawfully entitled, under this Agreement or
applicable law, and the exercise of a remedy shall not be deemed an election
excluding any other remedy (any such claim by each other party being hereby
waived).

            (j) Integration; Amendment; Waiver. This Agreement (i) constitutes
the entire agreement of the parties with respect to its subject matter, (ii)
supersedes all prior agreements, if any, of the parties with respect to its
subject matter, and (iii) may not be amended except in writing signed by the
party against whom the change is being asserted. The failure of any party at any
time or times to require the performance of any provision of this Agreement
shall in no manner affect the right to enforce the same; and no waiver by any
party of any provision (or of a breach of any provision) of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed
or construed either as a further or continuing waiver of any such provision or
breach or as a waiver of any other provision (or of a breach of any other
provision) of this Agreement.

            (k) Controlling Law. This Agreement is governed by, and shall be
construed and enforced in accordance with, the laws of the State of Arizona
[except the laws of that state that would render such choice of laws
ineffective].
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            (l) Copies. This Agreement may be executed in two or more copies,
each of which shall be deemed an original, and it shall not be necessary in
making proof of this Agreement or its terms to produce or account for more than
one of such copies.

                              [Signature page follows]

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Pledge Agreement
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      IN WITNESS WHEREOF the undersigned have duly executed this Agreement
through their authorized officers and delivered same, under seal, as of May 3,
2005.

                                          PLEDGORS:

                                          ---------------------------
                                          Scott Goldstein
--------------------------
Witness

--------------------------
Notary Public

                                          Stealth Enterprises, Inc.

            (Corporate Seal)
                                          By:
                                             ------------------------
                                          Its:
                                              -----------------------

--------------------------
                                          Attest:
Witness
                                          ---------------------------

--------------------------                Secretary
Notary Public

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Pledge Agreement
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                                          Oro Blanco Mining, LLC

           (Corporate Seal)
                                          By:
                                             ------------------------
                                                 Managing Member

--------------------------                 Attest:
Witness
                                          ---------------------------

--------------------------                Secretary
Notary Public

Accepted by Pledgee as of May 3, 2005, effective as specified in this Agreement.

                                          PLEDGEE

                                          By:
                                             ------------------------
                                                Lewis N. Lester
                                                      Director

Acknowledged and accepted by Borrower as of May 3, 2005.

                                          BORROWER

                                          By:
                                             ------------------------
                                          Its:
                                              -----------------------SECURITY AGREEMENT

THIS SECURITY  AGREEMENT,  dated as of May 6, 2005,  between Galaxy  Minerals,
Inc. a Florida  company with offices  located at 500 Park Ave.  Suite 203 Lake
Villa IL. 60046 ("Galaxy") and Oro Blanco Mining,  LLC, a company with offices
located  at  4161 N.  Camino  Del  Celador,  Tucson  AZ.  85718  ("Oro")  (the
"Security Agreement")

WHEREAS,  Galaxy  desires  to  obtain  a credit  facility  and  other  financial
accommodations  from  Global  Capital  Partners  and  affiliates  (collectively,
"Global"),  pursuant to a certain  convertible  debenture  dated May 6, 2005 and
related transactions (collectively, the "Debenture Agreement"); and

WHEREAS,  in order to induce Global to enter into the Debenture  Agreement,  Oro
pledged  to Global on behalf of Galaxy  certain  mineral  rights Oro owns of the
patented  Yellow  Jacket and Phoenix  Goldmines  in the county of Santa Cruz and
State of Arizona (the "Mineral  Rights")  pursuant to a certain  Mineral  Rights
Pledge Agreement dated May 6, 2005 (the "Pledge Agreement"); and

WHEREAS,  in order to induce Oro to pledge the Mineral Rights on Galaxy's behalf
pursuant to the Pledge  Agreement,  Galaxy desires to grant Oro a first lien and
security interest in certain collateral as more fully described herein;

NOW, THEREFORE, Galaxy and Oro agree as follows:

1. Definitions.

            1.1. Agreement.  Shall mean and include this Security Agreement, any
concurrent  or  subsequent   Rider  hereto  and  any  extensions,   supplements,
amendments or modifications thereto.

            1.2. Books. Shall mean and include all of Galaxy's books and records
including,  but not limited to, all customer lists and lists of account debtors,
all ledgers,  records  reflecting,  summarizing or evidencing  Galaxy's  assets,
accounts,  business  operations  or  financial  condition,   computer  programs,
computer discs, computer printouts,  and other computer prepared information and
computer equipment of any kind.

1.3.  Code.  Shall mean the Uniform  Commercial  Code  prepared  under the joint
sponsorship  of the  American  Law  Institute  and the  National  Conference  of
Commissioners  on Uniform State laws, as amended from time to time.  Any and all
terms used in this Agreement  shall be construed and defined in accordance  with
the meaning and definitions set forth herein or, to the extent not  inconsistent
herewith,  as such terms are defined in the Uniform  Commercial Code, as amended
from time to time, provided,  however, with respect to any term used herein that
is defined in (i)  Article 9 of the Uniform  Commercial  Code as in force in the
jurisdiction  in which this  Agreement  was signed by Galaxy at the time that it
was  signed;  or  (ii)  Article  9 as in  force  at  any  relevant  time  in the
jurisdiction in which a financing  statement given pursuant to this Agreement is
filed;  (iii)  or  Article  9 as is  in  force  at  any  relevant  time  in  the
jurisdiction  in which the terms of this Agreement are enforced,  the meaning to
be ascribed  thereto with respect to any  particular  item of property  shall be
that under the more encompassing of the three definitions.

                                       1
<PAGE>
            1.5. Collateral.  Shall mean any and all equipment, heavy equipment,
mining equipment,  industrial  equipment and tools,  gasoline and diesel powered
equipment  and  vehicles,   electronic  equipment,   buildings,  sheds,  storage
locations, office locations, office equipment, telephone equipment,  exploration
equipment,  and/or any personal property, fixtures and furnishings located or to
be placed at approx. 4 miles off Arivaca/Ruby Road intersecting at Yellow Jacket
Mine Road and  described  and recorded in the county  recorders  office of Santa
Cruz County Arizona as Tax Parcel number  113-12-001  and further  identified as
MS.#951  PHOENIX,  & MS.#264 YELLOW JACKET.  SEC 22 T22S R10E & further recorded
in/as DKTS  144/538,799/222,850/638(85000)(WD),  and as set forth and more fully
described in Exhibit A, annexed hereto and made a part of this Agreement.

            1.10. Person.  Shall mean an individual,  partnership,  corporation,
including a "business  trust," limited liability  company,  joint stock company,
trust,  unincorporated  association,   joint  venture  or  other  entity,  or  a
government or any political subdivision or agency

3. Creation of Security Interest.

            3.1 Galaxy hereby  grants to Oro a first  priority lien and security
interest in the  Collateral in order to induce Oro to pledge the Mineral  Rights
to Global on Galaxy's  behalf  pursuant to the Pledge  Agreement  and  Debenture
Agreement.

      3.2.  Galaxy  shall  execute  and  deliver  to Oro  concurrently  with the
execution of this  Agreement,  and at any time or times hereafter at the request
of Oro, promissory notes,  financing  statements,  initial financing statements,
continuation   statements,   security   agreements,    mortgages,   assignments,
capitalization schedules,  certificates of title, affidavits,  reports, notices,
schedules  of accounts,  SEC  filings,  letters of  authority,  certificates  of
designation  and  preferences,  and all other documents and records that Oro may
request,  in such  form as is  satisfactory  to Oro,  to  further  evidence  the
obligations  and/or to perfect  and  maintain  Oro's  security  interest  in the
Collateral and fully comply with this Agreement.

      3.3.  Galaxy  authorizes Oro to file one or more financing  statements and
initial  financing  statements  describing the Collateral.  Galaxy hereby makes,
constitutes  and  appoints Oro (and any of Oro's  officers,  employees or agents
designated by Oro) as Galaxy's true and lawful attorney with power,  but without
notice to Galaxy, to sign the name of Galaxy on any Financing Statement, initial
financing  statement,  continuation  statement,  security  agreement,  mortgage,
assignment,  certificate of title, affidavit,  letter of authority, or notice or
other similar document  necessary to perfect or continue the perfection of Oro's
security  interest in the Collateral.  Galaxy shall make appropriate  entries in
its Books disclosing  Oro's's security interest in the Collateral.  The power of
attorney  created  in this  section is coupled  with an  interest,  and shall be
irrevocable until all Obligations are fully paid and satisfied.

                                       2
<PAGE>

4. Term of Agreement.

      4.1 The term of this Agreement shall be form the date of execution  hereof
until  any  of  the  following   shall  occur:   Galaxy  repays  the  amount  of
$2,500,000.00  and any and all  indebtedness  due  Global  under  the  Debenture
Agreement or otherwise,  and receives a release from Global to such effect (thus
returning  all right , title and interest to the Mineral  Rights  pledged by Oro
under the Pledge  Agreement);  (b) Pursuant to the terms and  conditions of this
agreement; or (c) Pursuant to a written agreement between Galaxy and Oro.

5. Indemnification. . Galaxy hereby indemnifies and agrees to hold harmless Oro,
and its  officers,  directors,  employees,  accountants,  attorneys,  agents and
representatives  (each an  "Indemnified  Person")  from and  against any and all
liabilities,   obligations,   claims,  losses,  damages,   penalties,   actions,
judgments,  suits,  costs,  expenses  or  disbursements  of any  kind or  nature
(collectively,  the "Claims")  which may be imposed on, incurred by, or asserted
against,  any Indemnified  Person arising in connection with the Collateral,  or
any of the transactions  contemplated  under this Agreement  (including  without
limitation,  the defense of any Indemnified Person's actions and/or inactions in
connection with this Agreement or otherwise).  WITHOUT LIMITATION, THE FOREGOING
INDEMNITIES  SHALL APPLY TO EACH  INDEMNIFIED  PERSON WITH RESPECT TO ANY CLAIMS
WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE  NEGLIGENCE  OF SUCH
AND/OR ANY OTHER  INDEMNIFIED  PERSON,  except to the limited  extent the Claims
against  an  Indemnified  Person  are  proximately  caused  by such  Indemnified
Person's gross  negligence or willful  misconduct.  If Galaxy or any third party
ever alleges such gross  negligence  or willful  misconduct  by any  Indemnified
Person,  the  indemnification  provided for in this Section shall nonetheless be
paid upon demand, subject to later adjustment or reimbursement,  until such time
as a court of competent  jurisdiction  enters a final  judgment as to the extent
and  effect  of  the  alleged  gross  negligence  or  willful  misconduct.   The
indemnification  provided for in this Section shall survive the  termination  of
this  Agreement  and shall  extend and continue to benefit  each  individual  or
entity who is or has at any time been an Indemnified Person hereunder.

6. Possession and Control of Collateral.

      6.1.  Oro, or its  designee or  transferee  shall have  possession  of the
Collateral. Galaxy shall in all events bear the risk of loss of the Collateral.

      6.2.  Oro  shall  have no duty  to  collect  any  income  accruing  on the
Collateral or to preserve any rights relating to the Collateral.

      6.3. Where Collateral is in the possession of a third party,  Galaxy will,
if  requested  by Oro,  join  with Oro in  notifying  the  third  party of Oro's
security interest and obtaining an  acknowledgment  from the third party that it
is holding the Collateral for the benefit of Oro.

                                       3
<PAGE>

6. Representations and Warranties.

      6.1. Galaxy hereby warrants and represents that:

            (a) Galaxy is duly organized and is and all times  hereinafter  will
be in  good  standing  under  the  laws of the  state  of its  incorporation  or
registration  and is duly qualified and in good standing in every other state in
which the  nature of its  business,  the  execution  of this  Agreement  and the
consummation   of  the   transactions   contemplated   thereby   requires   such
qualification;

            (b) Galaxy is the true and lawful  owner of the  Collateral  and has
the  rights,  power and  authority  to  transfer  and grant a security  interest
therein to Oro;

            (c) The  execution,  delivery and  performance of this Agreement and
the consummation of the transactions contemplated hereby and thereby, do not (i)
conflict  with,  result in a violation of, or constitute a default under (1) any
provision of its organizational documents (including amendments thereof) by laws
or other instrument binding upon Galaxy, (2) any law,  governmental  regulation,
court decree or order  applicable  to Galaxy,  or (3) any  agreement,  judgment,
license,  order or permit applicable to or binding upon Galaxy, (ii) require the
consent,  approval or  authorization  of any third party,  or (iii) result in or
require  the  creation  of any lien,  charge or  encumbrance  upon any assets or
properties of Galaxy or of any person except as may be expressly contemplated in
this Agreement.

            (f) Within120  days  subsequent to its execution of this  Agreement,
Galaxy shall obtain any and all requisite  shareholder  and/or director consents
permitting  and  authorizing  this Agreement and the  transactions  contemplated
hereunder.

            (g) There are no actions or proceedings pending by or against Galaxy
in any court or  administrative  agency and  Borrower  has no  knowledge  of any
pending, threatened or imminent litigation, governmental investigation or claim,
complaint,  action or prosecution  involving  Galaxy or any guarantor of Galaxy,
except as may have been  specifically  disclosed in writing to Oro and if any of
the foregoing arise during the term of this Agreement,  Galaxy shall immediately
notify Oro in writing with respect thereto;

            (h) Galaxy has duly filed all federal,  state and other governmental
tax  returns  which it is  required  by law to file and that all taxes and other
sums  which may be due to the  United  States,  any state or other  governmental
authority  have been  fully  paid and that  Galaxy  now has and shall  hereafter
maintain reserves adequate in amount to fully pay all such tax liabilities which
may hereafter accrue;

            (i) All  assessments  and taxes whether real,  personal or otherwise
due and payable by or imposed,  levied, or assessed against Galaxy or any of its
assets have been paid and shall  hereafter  be paid in full before  delinquency.
Galaxy shall make due and timely  payment or deposit of all  federal,  state and
local  taxes,  assessments  or  contributions  required of it by law  (including
timely payment or deposit of all FICA payments and  withholding  taxes) and will
execute and deliver to FIL on demand appropriate  certificates  attesting to the
payment or deposit thereof;

                                       4
<PAGE>

            (j) With respect to the Collateral,  Oro's security interest therein
is now and shall  hereafter at all times  constitute a  perfected,  choate,  and
first security  interest in the Collateral and is not now and will not hereafter
become  subordinate  or junior to the security  interest,  lien,  encumbrance or
claim of any Person; and

            (k) All financial  statements and information  relating to Galaxy or
any guarantor of the Obligations or with respect to the Accounts which have been
or may  hereafter  be  delivered  by  galaxy  to Oro (or are a matter  of public
disclosure)  are true,  complete and correct in all  material  respects and have
been  prepared in  accordance  with  generally  accepted  accounting  principles
consistently  applied, and there has not been any material adverse change in the
financial condition of Galaxy or any guarantor since the last submission of such
financial information to Oro.

      6.2. The warranties, representations and agreements set forth herein shall
be  cumulative  and in addition  to any other  warranties,  representations  and
agreements  which Galaxy shall now or  hereafter  give,  or cause to be given to
Oro.

7. Affirmative Covenants.

            7.1.  Until all  Obligations  are fully paid and  satisfied,  Galaxy
                  will:

            (a) At all times  fully  comply  with all  federal,  state and local
laws,  rules,  orders or regulations  pertaining to the conduct of its business,
including,   but  not  limited  to  all  applicable  federal,  state  and  local
environmental laws and regulations  relating to the storage,  usage and disposal
of hazardous  substances or toxic  chemicals by Galaxy in its business.  In this
regard, Galaxy agrees to defend, indemnify and hold Oro harmless for and against
any and all costs,  claims,  demands,  damages including  attorneys' fees, court
costs,  and  investigatory  and laboratory fees which Oro may suffer or incur in
connection  with any such  violation  which  indemnification  shall  survive the
termination of this Agreement.

            (b) Preserve its corporate  existence and not, in one transaction or
a series of  related  transactions,  merge  into or  consolidate  with any other
entity, or sell all or substantially all of its assets.

            (c) Maintain itself in good standing in all  jurisdictions  in which
Borrower  is doing  business,  and at the  request of Oro,  furnish to Oro at is
request, evidence of its good standing in all such jurisdictions.

            (d) Maintain Galaxy's Books at its offices set forth herein.

                                       5
<PAGE>

            (e) Allow Oro to possess  and  remove  copies of  Galaxy's  Books to
Oro's premises or the premise of any agent of Oro, for so long as Oro may desire
in connection with the enforcement of Oro's rights under this Agreement.

            (f)  Maintain  a  standard  and  modern   system  of  accounting  in
accordance  with generally  accepted  accounting  principles  which contain such
information  as may be  requested  by Oro,  and permit Oro or any of its agents,
during  Galaxy's  usual business hours or during the usual business hours of any
third party  having  control  over the records of Galaxy,  to have access to and
have the right to examine all of Galaxy's Books and in connection  therewith and
permit Oro or any of its agents to copy and make extracts therefrom.

            (g) Furnish to Oro monthly, or upon five (5) days written request at
Oro's request,  written schedules and reports of the status of Galaxy's Accounts
in such form as shall be required by Oro.

            (h) Promptly furnish to Oro such records, data and other information
with  respect to the  financial  condition  of Galaxy,  the  Collateral  and any
guarantor,  as Oro may  request  from  time to time,  and shall  deliver  to Oro
detailed reports,  each in a form satisfactory to Oro and containing a statement
of the financial condition and operation of Galaxy: (i) for each calendar month,
within  thirty (30) days after the end of each  month;  and (ii) for each fiscal
year,  within  ninety (90) days after the end of each such fiscal  year.  Within
twenty (20) days after demand by Oro,  Galaxy shall deliver to Oro copies of any
financial report or statement prepared by or for Galaxy. Each such statement and
report  shall be reviewed or  compiled by an  independent  CPA or prepared by an
authorized  officer of Galaxy that such report,  statement or document delivered
or caused to be delivered to Oro is complete,  correct and  thoroughly  presents
the financial condition of Galaxy, and that on the date of said certification no
event or condition  exists which  constitutes a breach or Event of Default under
this Agreement.

            (i) Notify  Oro,  in  writing,  of any  material  adverse  change in
Galaxy's financial condition.

            (j) Make timely  payment or deposits  of all taxes  (including  FICA
payments and deposits of withholding taxes) and assessments  required to be paid
by Galaxy and deliver to Oro, as requested, evidence of such payment or deposit.

            (k) Pay all rent when due and  otherwise  abide by the  terms  under
which Galaxy leases or occupies the premises at which the Collateral is located;
provided further if Galaxy fails to do so, Oro may, without any obligation,  pay
such  rent  and any sum so paid  shall be part of Oro's  costs,  secured  by the
Collateral and payable on demand.

            (l) Cause to be paid all amounts  necessary to fund,  in  accordance
with their terms, all pension plans presently in existence or hereafter  created
and Galaxy will not withdraw from  participation  in, permit the  termination or
partial termination of, or permit the occurrence of any other event with respect
to any deferred  compensation  plan  maintained for the benefit of its employees
under  circumstances  that could  result in  liability  to the  pension  Benefit
Guarantee  Corporation,  or any of its  successors or assigns,  or to the entity
which provides funds for such deferred compensation plan.

                                       6
<PAGE>

            (m) Keep the  Collateral  free from any lien,  security  interest or
encumbrance  adverse to Oro and defend,  at its own expense,  the Collateral and
the proceeds  thereof  against all claims and demands of all Persons at any time
claiming the same or any interest therein.

            (n) Promptly  deliver to Oro all documents and instruments  relating
to the Collateral, as Oro may request from time to time.

            (o) On  request  of  Oro,  execute  and  deliver  to Oro any and all
additional  documents,  which Oro may request  from time to time to evidence the
advances made hereunder,  or the security interest granted hereby, or effect the
transactions contemplated hereunder.

      8. Negative Covenants.

      8.1. Galaxy will not, without the prior written consent of Oro:

            (a) Grant a security  interest in the Collateral,  or permit a lien,
claim or  encumbrance  to be  imposed  on any of the  Collateral,  or allow  the
Collateral to be possessed by or under the control of any other Person;

            (b) Sell,  license,  lease,  rent or  otherwise  dispose  of,  move,
transfer or relocate outside the Collateral State, whether by sale or otherwise,
any of Galaxy's assets,  including the Collateral but excluding  Inventory which
may be sold,  licensed,  leased, or otherwise disposed of in the ordinary course
of Galaxy's business, provided that Oro continues to have a security interest in
the proceeds thereof;

            (c) Affix any of the  Collateral  to any real property in any manner
which would change its nature from that of personal property to real property or
to a fixture or an accession, and Galaxy agrees that the Collateral shall remain
personal  property at all times  notwithstanding  any affixation  thereof to any
real property;

            (d) Permit any  Collateral to be used in violation of any applicable
law, regulation or policy of insurance'

            (e) Permit any levy,  or  attachment  to be made on any of  Galaxy's
assets;

            (f) Permit  any  receiver,  trustee,  custodian,  assignees  for the
benefit of  creditors  or any other Person or entity  having  similar  powers or
duties to be appointed or to take possession of any or all of Galaxy's assets;

            (g) Change its business structure,  corporate identity or structure,
do business under any additional trade name, or liquidate,  merge or consolidate
with or into any other business organization;

                                       7
<PAGE>

            (i) Change it's  corporate or trade name without  providing Oro with
thirty (30) days' prior written notice;

            (j) Change any of its Collateral  States without  providing Oro with
30 days' prior written notice;

            (k) Relocate its place of business, its Chief Executive Office State
or move its Books;

            (l) Acquire any entity or purchase  the stock or  securities  of any
entity (other than securities of any state or federal government);

            (m) Permit any sale or  disposition  of a  controlling  interest  in
Galaxy or permit a change in the  management  of Galaxy.  For  purposes  of this
paragraph,  "Controlling  Interest"  shall mean greater than 50% of the Galaxy's
issued and outstanding voting securities;

            (n) Enter into any  transaction  or incur any debts not in the usual
course of Galaxy's business;

            (o) Guarantee or otherwise  become in any way liable with respect to
the  obligations  of any Person except by endorsement of instruments or items of
payment for deposit to the account of Galaxy or which are  transmitted or turned
over to Oro on account of the Obligations;

            (r) Make any distribution of Galaxy's property or assets;

                  (s) Make any advance,  loan,  contribution or payment of money
(other than compensation for personal service), goods or credit to, or guarantee
any  obligation  of any  subsidiary,  affiliate  or parent  corporation,  or any
officer,  shareholder  or employee,  or cause or permit any such advance,  loan,
contribution  or guarantee to be made by any subsidiary  corporation  other than
the guaranty executed in connection herewith with this Agreement.

9. Events of Default.

      9.1. The  occurrence  of any one or more of the  following  shall,  at the
option of Oro,  constitute  an event of default  under this  Agreement  (each an
"Event of Default")

            (a) Galaxy  fails to pay when due and  payable or declared to be due
and payable,  any of its obligations due Global (or its successors,  affiliates,
assigns or transferees) under the Debenture or otherwise.

            (b)  Galaxy  fails or  neglects  to comply  with,  perform,  keep or
observe any term, provision, condition, or covenant contained in this Agreement,
or any other present or future agreement between Galaxy and Oro;

                                       8
<PAGE>

            (c) Any  representation,  statement or report or certificate made or
delivered by Galaxy, or any of its officers or agents (either individually or as
an  officer  or  agent of  Galaxy),  to Oro  proven  to be  untrue,  inaccurate,
incomplete or incorrect in any material respect;

(d) There is a material  impairment in the prospect of repayment in the prospect
of repayment of the  Obligations  or a material  impairment  in the value of the
collateral  or the  priority of Oro's  security  interest in the  Collateral  is
contested;

            (e) Any of Galaxy's assets are attached, seized, or are levied upon,
and the same are not released,  discharged or bonded  against within twenty (20)
business days thereafter;

            (f) A notice of lien,  levy or  assessment  is filled of record with
respect to any or all of Galaxy's assets by the United States Government, or any
department,  agency  or  instrumentality  thereof,  or  by  any  state,  county,
municipal or other  governmental  agency,  or if any taxes or debts owing at any
time  hereafter  to any one or more of such  entities  becomes  a lien,  whether
choate or otherwise,  upon any or all of the Galaxy's assets and the same is not
paid on the payment date thereof bonded against within twenty(20)  business days
thereafter;

            (g) Galaxy is enjoined,  restrained or in any way prevented by court
order  from  continuing  to conduct  all or any  material  part of its  business
affairs and such order is not released  within (20)  business days of receipt of
notice thereof by Galaxy;

            (h) Any proceeding  under the Bankruptcy  Code or any similar remedy
under state statutory or common law is filed by or against Galaxy;

            (i) Galaxy ceases normal business operations;
(j) Galaxy is placed in receivership,  liquidation, or makes or attempts to make
an assignment for the benefit of creditors;

            (k) A judgment or other claim becomes a lien or encumbrance upon any
or all of Galaxy's  assets and the same is not  satisfied,  dismissed  or bonded
against within twenty (20) business days thereafter;

            (l) If any of Galaxy's  records are  prepared and kept by an outside
computer  service  at any  time  during  the  term of this  Agreement,  and said
computer  service fails to timely provide Oro with any requested  information or
financial data pertaining to the Collateral, Galaxy's financial condition or the
results of Galaxy's operations;

            (m) If there is a default in any  agreement(s)  to which Galaxy is a
party  with  third  parties  resulting  in a right  by  such  third  parties  to
accelerate  the  maturity  of any  indebtedness  of Galaxy to such  third  party
provided,  however, that Galaxy and the aggregate amounts in question is greater
than fifty thousand dollars ($50,000.00).;

            (n) Galaxy  makes any  payment on account of  indebtedness  that has
been  subordinated to the Obligations to Oro,  without Oro's consent,  or if any
Person  subordinating  such  indebtedness  terminates  or in any way  limits his
subordination.

                                       9
<PAGE>

            (p)  Galaxy  fails  to  comply  with,  or  become  subject  to,  any
administrative  or judicial  proceeding  under any  federal,  state or local (i)
hazardous waste or environmental law; (ii) asset forfeiture or similar law which
can  result  in  the   forfeiture  of  property;   or  (iii)  other  law,  where
noncompliance may have any significant effect on the Collateral;

            (q) Oro  receives  notification  or otherwise  discovers  that Oro's
security  interest  is not  prior  to all  other  security  interests  or  other
interests in the collateral;

                                       10
<PAGE>

10. Oro's Rights and Remedies.

      10.1.  Upon the  occurrence  of an Event of Default  by Galaxy  under this
Agreement, Oro may, at its election,  without notice of its election and without
demand upon Galaxy or any guarantor, do any one or more of the following, all of
which are authorized by Galaxy:

            (a)  Declare any or all of the  Obligations,  whether  evidenced  by
note(s) or otherwise, immediately due and payable;

            (b) Terminate this Agreement, but without affecting Oro's rights and
security interests in the Collateral, and the Obligations;

            (e) Exercise any and all of the rights  accruing to a secured  party
under the Code and any other applicable law;

            (f) Require  Galaxy to  assemble  the  Collateral,  hold the same in
trust for Oro's account and, at Galaxy's expense,  deliver the same to Oro or to
a third party at a place or places to be  designated  by oro which is reasonably
convenient  to the  parties,  or store the same in a warehouse in Oro's name and
deliver to Oro documents of title representing said Collateral;

            (g) Enter,  with or  without  process of law,  and  without  further
permission of Galaxy, any premises where the Collateral is or is believed by Oro
to be  located,  using  all  necessary  force to  accomplish  the  same  without
committing a breach of the peace (Galaxy hereby waives all claims for damages or
otherwise  due to,  arising from or connected  with such entry and/or  seizure),
and: (i) take possession of said premises and of the Collateral located therein;
(ii) place a custodian in exclusive  control of said  premises and of any of the
Collateral  located therein;  (iii) remove from the premises the Collateral (and
any copied of Galaxy's Books, materials and supplies) in any way relating to the
Collateral or useful by Oro in enforcing its rights hereunder;  (iv) remain upon
said premises and use the same (together with said Galaxy's Books, materials and
supplies)  for the purpose of collecting  the  Collateral  and/or  preparing the
Collateral for disposition and/or disposing of the Collateral;

            (h) Make (without any obligation to do so) any payment and take such
action as Oro  considers  necessary  or  reasonable  to protect or preserve  the
Collateral  or its security  interest  therein,  including  paying,  purchasing,
contesting or compromising any encumbrance, charge or lien which, in the opinion
of Oro,  interferes  with  the  enforcement  of its  security  interests  or the
liquidation or disposition of the Collateral;

            (i) Sell at one or more public or private sales,  lease or otherwise
dispose of the Collateral  (regardless  whether Oro has taken possession thereof
or whether the  Collateral  is present at any such sale or  disposition)  in its
then  condition,  or after  further  manufacturing,  processing  or  preparation
thereof (utilizing, in connection therewith,  without charge or liability to Oro
therefor,  any of  Galaxy's  assets),  by  means  of one or  more  contracts  or
transactions, for cash or on terms, in such manner and at such places (including
Galaxy's premises) as is commercially reasonable, in the opinion of Oro;

                                       11
<PAGE>

            (j) Seek  temporary  or  permanent  injunctive  relief  without  the
necessity of proving actual damages,  as no remedy at law will provide  adequate
relief to oro and,  in this  regard,  the bond which oro may be required to post
shall be no more than $500.00; and

            (k) Require  Galaxy to pay all of Oro's Costs incurred in connection
with Oro's  enforcement and exercise of any of its rights and remedies as herein
provided, whether or not suit is commenced by Oro;

      10.2 Any  deficiency  that exists after  disposition  of the Collateral as
provided herein, shall be due and payable by Galaxy upon demand, with any excess
to be paid by Oro to galaxy

      10.3.  Oro shall give Galaxy  such  notice of any private or public  sale,
lease or other  disposition  as may be required by the Code,  unless  notice has
been waived after an Event of Default pursuant to the Code.

      10.4.  Oro shall have no obligation  to clean up or otherwise  prepare the
Collateral  for sale.  oro shall have no  obligation  to attempt to satisfy  the
Obligations  by collecting  them from any other Person liable for them,  and Oro
may release,  modify or waive any of the Collateral provided by any other Person
to secure any of the  Obligations,  all without  affecting  Oro's rights against
Galaxy.  Galaxy  waives any right it may have to require Oro to pursue any third
Person for any of the  Obligations.  Oro has no obligation to marshal any assets
in favor of Galaxy,  or against  or in payment of the  Obligations  or any other
obligation  owed to Oro by Galaxy or any other  Person.  Oro may comply with any
applicable state or federal law requirements in connection with a disposition of
the  Collateral and  compliance  will not be considered  adversely to affect the
commercial reasonableness of any sale of the Collateral.

      10.5. Oro may dispose of the  Collateral  without giving any warranties as
to the Collateral.  Oro may specifically disclaim any warranties of title or the
like.  This procedure will not be considered  adversely to affect the commercial
reasonableness of any sale of the Collateral.

      10.6.  If Oro sells any of the  Collateral  upon  credit,  Galaxy  will be
credited only with payments  actually made by the purchase,  received by Oro and
applied to the  indebtedness of the purchaser.  In the event the purchaser fails
to pay for the  Collateral,  Oro may resell the  Collateral  and Galaxy shall be
credited with the proceeds of the sale.

      10.7. In the event Oro purchases any of the Collateral being sold, Oro may
pay for the Collateral by crediting against the purchase price of some or all of
the Obligations.

      10.8  Oro's  rights  and  remedies  under  this  Agreement  and all  other
agreements  shall  be  cumulative  and  may  be  exercised   simultaneously   or
successively,  in such order as Oro shall determine. In addition, Oro shall have
all other rights and remedies not inconsistent herewith as provided by law or in
equity.  No exercise by Oro of one right or remedy  shall be deemed an election,
and no  waiver  by Oro of any  default  on  Galaxy's  part  shall  be  deemed  a
continuing  waiver.  No delay by Oro  shall  constitute  a waiver,  election  or
acquiescence by it.

                                       12
<PAGE>

      10.11 In the Event of Default,  Galaxy does hereby irrevocably  designate,
make,  constitute  and appoint Oro and any agent  designated by Oro, as Galaxy's
true and lawful  attorney,  with power to do the  following in Galaxy's or Oro's
name and at Galaxy's  expense but without notice to Galaxy,  and at such time or
times (except as otherwise  provided  herein) as Oro may, in its sole  election,
determine:

            (a) Endorse Galaxy's name on any checks, notes,  acceptances,  money
orders,  drafts or other forms of payment or  security  that may come into Oro's
possession;

            (b)  Sign  Galaxy's  name on any  invoice,  freight  bill or bill of
lading relating to any Account,  on any draft against an account debtor,  on any
schedule  assignment of Accounts,  verification  of Accounts or on any notice to
account debtors;

            (c) Prepare,  file and sign  Galaxy's  name on any proof of claim in
bankruptcy or similar document against an account debtor;

            (d)  Prepare,  file and sign  Galaxy's  name on any  notice of lien,
claim of  mechanic's  or  material  man's lien or similar  document or waiver or
satisfaction thereof in connection with an Account; and

            (e) Execute any other  documents that may facilitate the collection,
liquidation or disposition of the Collateral.

            10.12 If in the event of any Default,  whether  cured or uncured,  ,
Oro employs counsel for advice or other  representation  (i) with respect to any
of the Collateral or this  Agreement;  (ii) to represent Oro in any  litigation,
contest, dispute, suit or proceeding or to commence,  defend, or intervene or to
take any other action in or with respect to any  litigation,  contest,  dispute,
suit or proceeding (whether instituted by Oro, Galaxy or any other party) in any
way relating to any of the Collateral, this Agreement or Galaxy's affairs; (iii)
to protect,  collect,  lease,  sell,  take possession of or liquidate any of the
Collateral;  (iv) to attempt to enforce any  security  interest of Oro in any of
the  Collateral;  or (v) to enforce any rights of Oro against  Galaxy or against
any other  Person  which  may be  obligated  to Oro by virtue of this  Agreement
including Galaxy's account debtors, then, in any of the foregoing events, all of
the  reasonable  attorneys'  fees not to  exceed  $10,000.00  arising  from such
services and all  expenses,  costs and charges in any way arising in  connection
therewith or relating  thereto shall constitute a part of Oro's Costs secured by
the Collateral and be payable on demand.

                                       13
<PAGE>

12. Waivers.

      12.1.  Oro  shall  not be  deemed to have  waived  any  provision  of this
Agreement,  or any right or remedy,  which it may have  hereunder,  or at law or
equity, unless such waiver is in writing, and signed by Oro.

      12.2. Galaxy waives the right to direct the application of any payments at
any time or times  received  by Oro on  account  of the  Obligations  and Galaxy
agrees that Oro shall have the continuing  exclusive  right to apply and reapply
such payments in any manner, as Oro may deem advisable.

      12.3.  Except as otherwise  provided for in this Agreement,  Galaxy waives
demand,  protest,  notice of protest,  notice of default or dishonor,  notice of
payment and nonpayment,  notice of any default, nonpayment at maturity, release,
compromise,  settlement,  extension or renewal of any or all  commercial  paper,
accounts, documents,  instruments, chattel paper and guaranties at any time held
by Oro on which Galaxy may in any way be liable.

      12.4. Failure or delay by Oro in exercising or enforcing any right, power,
privilege,  lien,  option or remedy  hereunder  shall  not  operate  as a waiver
thereof and a waiver by Oro of any default by Galaxy under this Agreement  shall
not be  construed  to create any right or  expectation  of future  waiver of any
subsequent  breach or default by Galaxy under this Agreement whether of the same
or of a different nature.

      12.5. GALAXY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY TRANSACTIONS HEREUNDER.

13. Notices.

      13.1. Unless otherwise provided in this Agreement, all notices, demands or
other  communications  to either  party shall be in writing and shall be mailed,
telecopied or  communicated  by means of facsimile  transmission  (followed by a
mailed or delivered  hard copy),  or delivered  by hand or courier  service,  at
their  respective  addresses  set  forth  in this  Agreement,  or at such  other
addresses as shall be designated by such party in a written  notice to the other
party.  All  notices  and other  communications  shall be deemed  delivered  and
effective  when  a  record  has  been  sent  by  telecopy  or  other   facsimile
transmission,  or upon receipt  through the  Internet,  or upon hand delivery or
upon the third  business  day after  deposit  in a United  States  postal box if
postage is prepaid, and the notice properly addressed to the intended recipient.

                                       14
<PAGE>

15. Release.

      15.1.  At such time as all  Obligations  shall  have been  fully  paid and
satisfied  and Galaxy and all  guarantors of the  Obligations  execute a release
acknowledging  that Galaxy does not have any claims against Oro and provides Oro
with an appropriate  indemnity  indemnifying  Oro for any  remittances for which
Galaxy  has  received  credit  and  which are not paid,  Oro shall  release  its
security  interest  in the  Collateral  and  deliver  to Galaxy  an  appropriate
termination statement.

16. General Provisions.

      16.1. The parties intend and agree that their respective  rights,  duties,
powers,  liabilities,  obligations and discretions  shall be performed,  carried
out, discharged and exercised reasonably and in good faith.

      16.2. If at any time or times hereafter, Oro employs counsel for advice or
other  representation  (i)  with  respect  to  any  of the  Collateral  or  this
Agreement;  (ii) to represent Oro in any litigation,  contest,  dispute, suit or
proceeding or to commence,  defend,  or intervene or to take any other action in
or with respect to any litigation, contest, dispute, suit or proceeding (whether
instituted by Oro,  Galaxy or any other party) in any way relating to any of the
Collateral,  this  Agreement  or Galaxy's  affairs;  (iii) to protect,  collect,
lease,  sell,  take  possession of or liquidate any of the  Collateral;  (iv) to
attempt to enforce any security interest of Oro in any of the Collateral; or (v)
to enforce any rights of Oro against  Galaxy or against any other  Person  which
may be obligated to Oro by virtue of this Agreement  including  Galaxy's account
debtors,  then, in any of the foregoing events, all of the reasonable attorneys'
fees not to exceed $10,000.00 arising from such services and all expenses, costs
and charges in any way arising in connection therewith or relating thereto shall
constitute  a part of Oro's costs  secured by the  Collateral  and be payable on
demand.

      16.3. Neither this Agreement nor any uncertainty or ambiguity herein shall
be  construed  or  resolved  against  Oro or Galaxy,  whether  under any rule of
construction or otherwise;  on the contrary, this Agreement has been reviewed by
all parties and shall be  construed  and  interpreted  according to the ordinary
meaning of the words used so as to fairly accomplish the purposes and intentions
of all parties hereto. When permitted by the context,  the singular includes the
plural and vice versa.

      16.4. The validity of this Agreement, its construction, interpretation and
enforcement,  and  the  rights  of the  parties  hereunder  and  concerning  the
Collateral,  shall be  determined  under and  according to the United  States of
America,  without  regard to principles of conflicts of laws,  and except to the
extent  that the Code  provides  for the  application  of the law of a different
jurisdiction.

      16.5.  In any  litigation  involving  FIL and  Galaxy,  Galaxy does hereby
irrevocably  submit itself to the process,  jurisdiction and venue of the courts
of Illinois or to the  process,  jurisdiction  and venue of  arbitration  or the
State of Nevada, whichever Oro chooses for the purposes of suit, action or other
proceedings  arising out of or relating to the Agreement or the subject purposes
of  suit,  action  or  other  proceedings  arising  out of or  relating  to this
Agreement or the subject matter hereof,  and without  limiting the generality of
the foregoing,  hereby waives and agrees not to assert by way of motion, defense
or otherwise in any such suit,  action or proceeding any claim that Galaxy is no
personally subject to the jurisdiction of such courts, that such suit, action or
proceeding is brought in an  inconvenient  forum or that the venue of such suit,
action or proceeding is improper.

                                       15
<PAGE>

      16.6.  The  provisions of this  Agreement are  independent of and separate
from each other. If any provision hereof shall for any reason be held invalid or
unenforceable,  it is  the  intent  of  the  parties  that  such  invalidity  or
unenforceability  of any other provision hereof and that this Agreement shall be
construed as if such invalid or unenforceable provision had never been contained
herein.

      16.7.  Article and section headings and numbers have been set forth herein
for  convenience  only;  unless  the  contrary  is  compelled  by  the  context,
everything contained in each section applies equally to this entire Agreement.

      16.8.  This Agreement  cannot be changed or terminated  orally.  All prior
agreements,  understandings,  representations,  warranties and negotiations,  if
any, are merged into this Agreement.

      16.9. Oro shall have the right, without the consent of or notice to Galaxy
to grant  participation  interests  in the  Collateral  and in this  regard  may
provide the participant  with any and all information with respect to Galaxy and
the  Collateral.  In addition,  Oro may assign this Agreement and its rights and
duties hereunder at any time,  without the consent of or notice to Galaxy.  This
Agreement shall inure to the benefit of Oro, its successors and assigns.  Galaxy
may not assign  this  Agreement  or any rights  hereunder  without  Oro's  prior
written  consent  and  any  such  assignment  shall  be  void  and of no  effect
whatsoever.  No consent to any  assignment  by Oro shall,  without  the  written
consent of Oro,  release Galaxy or any guarantor of its  Obligations to Oro. Oro
may  assign  this  Agreement  and its right s and  duties  hereunder,  and if an
assignment is made, Galaxy shall render  performance under this Agreement to the
assignee.  Galaxy  waives and will not assert  against  any  assignee of Oro any
claims,  defenses  (except  defenses  which cannot be waived) or set-offs  which
Galaxy could assert against Oro.

17. Rules of Construction.

      17.1. No reference to "proceeds" in this Security Agreement authorizes any
sale, transfer or other disposition of the Collateral by the Borrower.

      17.2. "Includes" and "including" are not limiting.

      17.3. "Or" is not exclusive.

      17.4. "All" includes "any" and "any" includes "all."

      17.5.  "Material  Impairment"  for  purposes  of this  Agreement  includes
without  limitation  (i)  Galaxy  sustains  a  net  operating  loss  for  twelve
consecutive  months; and (ii) Galaxy uses a substantial amount of funds from the
business for a non-business purpose.

                                       16
<PAGE>

                          NOTICE OF FINAL AGREEMENT

THIS  AGREEMENT  AND THE OTHER  LOAN  DOCUMENTS  REPRESENT  THE FINAL  AGREEMENT
BETWEEN THE PARTIES,  AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed at 10am CST, as of the date first written above.

                                          GALAXY MINERALS, INC.

                                    By:
                                       ---------------------------

                                    Print Name: MATTHEW J. SYMONDS

                                    Title: PRESIDENT/CEO
ORO BLANCO MINING, LLC.:

By:------------------------

Print Name: JAMES P. VENSKE

Title: MANAGING MEMBER

                                       17
<PAGE>

                                   EXHIBITS

                                       18
<PAGE>

                                  EXHIBIT A

                     THE MINERAL RIGHTS TO THE UNITED STATES
          PAT. MINES IN THE ORO BLANCO MINING DIST: MS.#951 PHOENIX, &
                   MS.#264 YELLOW JACKET. SEC 22 T22S R10E
                   DKTS 144/538,799/222,850/638(85000)(WD)
                       TAX ID PARCEL NUMBER 113-12-001

                                       19

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