Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Continental Minerals Corporation - Exhibit 4A

 

 Preliminary Option Agreement 

 This Agreement is entered into on November 9, 2004 by and between:

 Leung Yuet Mei, a citizen of China (Hong Kong) with an address
  at Flat 1362, Tai On Building, 57-87 Shaukiwan Road, Hong Kong. 

  Fax (852) 5242 0544 

 Leung Chi Ming, a citizen of China (Hong Kong) with an address
  at Flat C3, 5/F., Lucky Court, Mai Wo Ferry Pier Road, Lantau, Hong Kong. 

  Fax (852) 5242 0544 

 Chen Yulin, a citizen of China with an address at Room 2014,
  Block 2, No. 41 Xi Zhi Men Jiao Dai Dong Road, Beijing City, People’s
  Republic of China. 

  Fax (86 10) 6202 8274 

 (collectively called “ABC”) 

 Highland Mining Inc., a British Virgin Islands company with
  offices at TrustNet Chambers, Road Town, Tortola, British Virgin Islands. 

  Fax (852) 5242 0544 

 (herein called “BVI Co”) 

 Tibet Tian Yuan Minerals Exploration Ltd., a wholly foreign-owned enterprise
  incorporated and existing under the laws of the People’s Republic of China
  with a registered address at 13F, Foreign Economic and Trade Tower, 75 Jin Zhu
  West Road, Lhasa, Tibet, People’s Republic of China. 

  Fax (86 891) 6868 708 

 (herein called “Tian Yuan”) 

 Continental Minerals Corporation, a British Columbia company with offices
  at Suite 1020 - 800 West Pender Street, Vancouver, British Columbia, Canada,
  V6C 2V6.

  Fax: (604) 684-8092 

 (herein called “Continental”) 

 Hunter Dickinson Inc., a British Columbia company with offices at Suite
  1020 – 800 West Pender Street, Vancouver, British Columbia, V6C 2V6, Canada.
  

  Fax: (604) 684 – 8092 

 (herein called “HDI”) 

 Wang Zhi, a citizen of the United States of America with an address
  at Apt. 116, 2205 BridgePointe Parkway, San Mateo, CA 94404, United States of
  America. 

  Fax (86 10) 6202 8274 

 (herein called “WZ”) 

 1

 WHEREAS Tian Yuan has the rights to explore the mineral property known as
  the Xietongmen Copper Property (the “Property”), which is
  located near Xiong Village, Xietongmen County, Rikaze area, Tibet Autonomous
  Region (“Tibet”), the People’s Republic of China (“PRC”)
  and more particularly described in Schedule A. 

 WHEREAS Tian Yuan is the 100% subsidiary of BVI Co, and the Selling Parties
  (defined below) have agreed to grant Continental with an option to acquire:

	 	 (i)      	 50% of the shares of BVI Co, through payment of USD2,000,000 to ABC and
      the investment of USD5,000,000 in BVI Co to fund exploration of the Property;
    
	 
	 	 (ii)      	 a further 10% of the shares of BVI, through the investment of USD3,000,000
      in BVI Co to fund exploration of the Property. 

 NOW THEREFORE THIS AGREEMENT WITNESSETH THAT for valuable consideration the
  receipt and sufficiency of which is hereby acknowledged, the Parties do hereby
  mutually covenant and agree as follows:

 1.          Definitions 

 “BVI Co Shareholders Agreement” shall have the meaning
  provided in Section 2.3.

 “BVI Co Share Option Agreement” shall have the meaning
  provided in Section 2.3. 

 “Completion Notice” means the written notice issued by
  Continental in accordance with Section 2.2. 

 “CTVH” means China NetTV Holdings Inc., a Delaware corporation
  with an office at Suite 830-789 West Pender Street, Vancouver, B.C., Canada,
  V6C 1H2.

 “Exploration Permit” means the exploration permit issued
  from time to time by the relevant authorities evidencing the Exploration Rights.
  A copy of the currently valid Exploration Permit is attached as Schedule B.

 “Exploration Rights” means all of the exploration rights
  in relation to the Property.

 “MOLAR” means the Ministry of Land and Resources of the
  PRC. 

 “Selling Parties” means collectively BVI Co, ABC and Tian
  Yuan, and “Selling Party” means one of them as the context requires.

 “Signature Date” means the date on which this Agreement
  has been signed by all Parties to it.

 2

 

	 2.      	 Nature of Cooperation 
	 
	 2.1      	 Selling Parties hereby grant to Continental the exclusive right to participate
      in the cooperative exploration and development of the Property on the terms
      and conditions of this Agreement. 
	 
	 2.2      	 Continental shall be permitted the opportunity to carry out a full due
      diligence study on BVI Co, Tian Yuan, the Property, the Exploration Rights,
      the Exploration Permit and associated data. Selling Parties shall carry
      out all other necessary actions and provide all necessary documents and
      information as Continental and its legal advisors may request in order to
      complete such study, including but not limited to the documents described
      in Schedule C. As they receive the same, Continental or its legal advisors
      shall issue a confirmation letter to the Selling Parties to confirm the
      receipt of the documents listed in Schedule C. Upon completing such study
      and becoming satisfied in its sole discretion that, among other things,
      the Selling Parties are not in breach of their representations and warranties
      under Section 4.1, Continental will issue the Completion Notice to Selling
      Parties. If not so satisfied, Continental may issue the notice contemplated
      in Section 7.1. Continental will issue a Completion Notice or the notice
      contemplated in Section 7.1 no later than forty-five (45) days following
      the Signature Date, failing which any Party may, by notice to the other
      Parties and without prejudice to any Party’s rights to claim against
      other Parties for breaches prior to the termination of the Agreement, elect
      to terminate this Agreement. 
	 
	 2.3      	 ABC and BVI Co shall grant to Continental options to respectively purchase
      and subscribe for shares in BVI Co on the terms described in Schedule D.
      The terms of such options shall be set forth in a share option agreement
      (the “BVI Co Share Option Agreement”) in form and substance
      satisfactory to Continental. Such BVI Co Share Option Agreement shall include
      as a schedule a form of shareholders agreement (the “BVI Co Shareholders
      Agreement”) that shall govern the relationship between the parties
      thereto as shareholders of BVI Co upon Continental’s exercise of at
      least one of such options, which shall include the provisions described
      in Schedule E. ABC, BVI Co and Continental shall commence good faith negotiations
      of the BVI Share Option Agreement and the BVI Shareholders Agreement promptly
      following the Signature Date and shall sign such agreements no later than
      seventy-five (75) days following the Signature Date, failing which any Party
      may, by notice to the other Parties and without prejudice to any Party’s
      rights to claim against other Parties for breaches prior to the termination
      of the Agreement, elect to terminate this Agreement. 
	 
	 2.4      	 To secure its performance hereunder, ABC shall promptly following the
      Signature Date pledge to Continental shares in BVI Co representing 50% of
      the issued and outstanding share capital of BVI Co. ABC shall also cause
      CTVH to pledge to Continental shares in BVI Co representing a further 10%
      of the issued and outstanding share capital of BVI Co, and from time to
      time to pledge such further shares of BVI Co as may be necessary so Continental
      continues to hold under the pledge from CTVH 10% of the issued and outstanding
      share capital of BVI Co. Continental’s rights under such pledge shall
      terminate upon termination of this Agreement in accordance with Section
      2.2 or 2.3. 

 3

 

	 3.      	 Other Obligations of Selling Parties 
	 
	 3.1      	 Upon signing of this Agreement, provided that Continental performs
      its obligations under this Agreement, Selling Parties shall do the following:
    
	 
	 	 (i)      	 provide Continental with all data generated of both a technical and non-
      technical manner applicable to the Property; 
	 
	 	 (ii)      	 duly pay any fees and charges (including but not limited to exploration
      right use fee and mineral resources compensation) in connection with the
      Exploration Rights and the Exploration Permit to keep them in good standing
      at least until the Completion Notice is issued; 
	 
	 	 (iii)      	 carry out all filings and do all other acts necessary to maintain the
      validity of the Exploration Permit; 
	 
	 	 (iv)      	 not transfer, sell, lease or mortgage the Exploration Rights, or otherwise
      deal in them or encumber them; 
	 
	 	 (v)      	 cause all existing exploration, mining, excavating, exploiting, extracting,
      refining and processing activities and operations in the areas in connection
      with the Property or the Exploration Rights conducted by any Selling Party
      or by any third party to be suspended; 
	 
	 	 (vi)      	 assist Continental in Continental’s purchasing and leasing of equipment,
      machinery, tools, vehicles and other materials, and if applicable, in carrying
      out all import and customs formalities in respect thereto; 
	 
	 	 (vii)      	 assist Continental’s personnel in obtaining necessary visas and
      invitation letters and certifications required for processing other necessary
      travel documents in order to gain access to the Property; 
	 
	 	 (viii)      	 not transfer, sell, lease, mortgage or otherwise deal in any assets of
      BVI Co and or Tian Yuan, including but not limited to the equity interest
      in Tian Yuan owned by BVI Co nor create any liability or obligation of those
      companies without Continental’s written consent; and 
	 
	 	 (ix)      	 not carry out any actions that may impair or dilute Continental’s
      legal or beneficial interest in BVI Co or Tian Yuan, including but not limited
      to issuance or transfer of any shares or other instruments, documents or
      securities of BVI Co or the increase of registered capital of Tian Yuan
      or the transfer of the same (provided that the issuance of shares by BVI
      Co to Continental as contemplated in Section 2.3 and Schedule D, as well
      as the transaction between ABC and CTVH on the terms previously disclosed
      to Continental in writing, shall not represent a breach of this provision).
    
	 
	 3.2      	 Provided that Continental performs its obligations under this
      Agreement, WZ shall actively assist Continental and Tian Yuan to apply for
      and maintain the approvals, registrations, licenses, permits and other government
      authorizations and support necessary or desirable in order for Tian Yuan
      to undertake the exploration and 

 4

 

	 	 development of the Property and for Continental to participate
      in those activities on the basis contemplated under this Agreement. WZ will
      be a signatory to the BVI Co Shareholders Agreement and the BVI Co Share
      Option Agreement in order that he have the above mentioned responsibilities
      under those agreements. 
	 
	 4.      	 Representations and Warranties 
	 
	 4.1      	 Selling Parties hereby jointly and severally represent and
      warrant to Continental that: 
	 
	 	 (i) 	 Each of BVI Co and Tian Yuan is a company duly organized, validly existing
      and in good standing under the laws of the jurisdiction of its incorporation;
    
	 
	 	 (ii) 	 Each Selling Party has full power and authority to carry on its business
      and to enter into this Agreement and any agreement or instrument referred
      to or contemplated by this Agreement; 
	 
	 	 (iii)	 Neither the execution and delivery of this Agreement, nor any of the
      agreements referred to herein or contemplated hereby, nor the consummation
      of the transactions hereby contemplated conflict with, result in the breach
      of or accelerate the performance required by, any agreement to which any
      Selling Party is a party; 
	 
	 	 (iv)	 The execution and delivery of this Agreement and the agreements contemplated
      hereby by each Selling Party will not violate or result in the breach of
      the laws of any jurisdiction applicable or pertaining to such Selling Party
      or (where the Selling Party is a body corporate) of its constating documents;
    
	 
	 	 (v)	 This Agreement constitutes a legal, valid and binding obligation of each
      of Selling Parties; 
	 
	 	 (vi)	 There are no options, warrants or any other rights to acquire any authorised
      (issued or unissued) share capital in BVI Co other than the options in favour
      of Continental contemplated in Schedule D as well as CTVH’s right
      to acquire shares in BVI Co from ABC under the terms of the transaction
      between ABC and CTVH previously disclosed to Continental in writing; 
	 
	 	 (vii)	 All returns, registrations, filings and other documents required to be
      delivered by Selling Parties to the relevant government authorities have
      been properly prepared and delivered; 
	 
	 	 (viii)  	 None of the Selling Parties has breached any law of the jurisdiction
      where it is incorporated or has citizenship, as the case may be; 
	 
	 	 (ix)	 No order has been made, petition presented or resolution passed for the
      winding-up or bankruptcy of any Selling Party or for the appointment of
      a provisional liquidator to any Selling Party and no administration order
      has been made in respect of any Selling Party; 

 5

 

	 	 (x) 	 No receiver or receiver and manager has been appointed for the whole
      or part of any Selling Party’s business or assets; 
	 
	 	 (xi)	 There is not and has not been any governmental or other investigation,
      enquiry or disciplinary proceeding concerning any Selling Party and none
      is pending or threatened. No fact or circumstance exists which might give
      rise to an investigation, enquiry or proceeding of that type; 
	 
	 	 (xii)	 No civil, criminal, arbitration, administrative or other proceeding is
      pending or threatened by or against any Selling Party or a person for whose
      acts or defaults any Selling Party may be vicariously liable; 
	 
	 	 (xiii)	 No fact or circumstance exists that might give rise to a civil, criminal,
      arbitration, administrative or other proceeding involving any Selling Party
      or a person for whose acts or defaults any of Selling Party may be vicariously
      liable; 
	 
	 	 (xiv)	 There is no outstanding judgment, order, decree, arbitral award or decision
      of a court, tribunal, arbitrator or governmental agency against any Selling
      Party or a person for whose acts or defaults any Selling Party may be vicariously
      liable; 
	 
	 	 (xv)	 Tian Yuan has lawfully obtained the Exploration Rights, the Exploration
      Permit and the mineral data and other geological information related to
      the Property, and the Exploration Rights, the Exploration Permit, and such
      mineral data and other geological information are not subject to any dispute
      or any third party claim or interest. The Exploration Permit constitutes
      the only exploration permit issued over the Property and the only exploration
      permit currently issued to Tian Yuan; 
	 
	 	 (xvi)	 None of the Exploration Rights, the Exploration Permit or the mineral
      data or other geological information related to the Property are subject
      to any title dispute with, or lease or mortgage to, any third party; 
	 
	 	 (xvii)	 All fees and charges (including but not limited to exploration right
      use fee and mineral resources compensation) in connection with the Exploration
      Rights and the Exploration Permit have been duly paid; 
	 
	 	 (xviii)	 All filings necessary to maintain the validity of the Exploration Permit
      have been duly made; 
	 
	 	 (xix)	 All obligations of the permit holder contemplated under the Exploration
      Permit have been duly performed; 
	 
	 	 (xx)	 All existing exploration, mining, excavating, exploiting, extracting,
      refining and processing activities and operations in the areas in connection
      with the Property or the Exploration Rights conducted by any Selling Party
      or by any third party have been suspended; 

 6

 

	 	 (xxi)	 All mineral data and other geological information any Selling Party provides
      to Continental are complete, true, accurate, legally owned or controlled
      by the Selling Parties, and are not subject to any third party claim or
      any restriction; 
	 
	 	 (xxii)	 Tian Yuan has paid in full all consideration due and owing by it in connection
      with Tian Yuan’s purchase of the Exploration Rights, and such consideration
      including all monetary amounts and other consideration does not exceed US$2,000,000;
    
	 
	 	 (xxiii)	 BVI Co has paid in full all consideration due and owing by it in connection
      with BVI Co’s purchase of 100% of the registered capital of Tian Yuan
      and is not subject to any debts or other claims by the founding shareholders
      of Tian Yuan or third parties in connection with such purchase; 
	 
	 	 (xxiv)	 Tian Yuan has not conducted any business or incurred any obligations
      or liabilities since the issuance of its business license; provided that
      acquisition by Tian Yuan of the Exploration Rights shall not represent a
      breach of this representation and warranty; 
	 
	 	 (xxv)	 BVI Co has not conducted any business or incurred any obligations or
      liabilities since the date of its incorporation other than purchasing 100%
      of the registered capital of Tian Yuan from the founding shareholders of
      Tian Yuan; 
	 
	 	 (xxvi)	 ABC collectively legally hold and beneficially own all issued and outstanding
      share capital of BVI Co, clear of all liens, charges or encumbrances, and
      with a par value of USD1 per share, and such share capital has been duly
      authorized, validly issued and fully paid; 
	 
	 	 (xxvii)	 BVI Co owns all the registered capital of Tian Yuan, free and clear of
      all liens, charges or encumbrances and have fully contributed to Tian Yuan
      such registered capital; 
	 
	 	(xxviii)	 There are no options or any other rights to subscribed for or acquire
      any equity interest of Tian Yuan; and 
	 
	 	 (xxix)	 No order has been made, petition presented or resolution passed for the
      winding-up or bankruptcy of any Selling Party or for the appointment of
      a provisional liquidator to any Selling Party and no administration order
      has been made in respect of any Selling Party. 
	 
	 4.2      	 Continental and HDI each hereby represents and warrants to
      Selling Parties that: 
	 
	 	 (i)      	 it is a company duly organized, validly existing and in good standing
      under the laws of the province of British Columbia; 
	 
	 	 (ii)      	 it has full power and authority to carry on its business and to enter
      into this Agreement and any agreement or instrument referred to or contemplated
      by this Agreement; 

 7

 

	 	 (iii)      	 Neither the execution and delivery of this Agreement, nor any of the
      agreements referred to herein or contemplated hereby, nor the consummation
      of the transactions hereby contemplated conflict with, result in the breach
      of or accelerate the performance required by, any agreement to which it
      is a party; 
	 
	 	 (iv)      	 The execution and delivery of this Agreement and the agreements contemplated
      hereby by it will not violate or result in the breach of the laws of any
      jurisdiction applicable or pertaining to it or of its constating documents;
      and 
	 
	 	 (v)      	 This Agreement constitutes a legal, valid and binding obligation of each
      of Continental and HDI. 
	 
	 4.3      	 The representations and warranties in this Section 4 are conditions
      on which the Parties have relied in entering into this Agreement and shall
      survive Continental’s acquisition of shares of BVI Co. The Parties
      confirm for the avoidance of doubt that no Party may make a claim against
      another Party for a breach of any representation or warranty in this Section
      4 if such breach has no adverse effect on the benefits, rights or interests
      of the Party entitled to make a claim. 
	 
	 5.      	 Confidential Information 
	 
	 5.1      	 In this Agreement, the term “Confidential Information”
      means: (a) any information, data, samples or material concerning the Party
      supplying or disclosing such information or material (the “Disclosing
      Party”) including but not limited to information concerning such
      Party’s business, financial condition, operations, technology, plans,
      research and development, assets or liabilities; and (b) any information
      or materials concerning any other entity or person in respect of which the
      Disclosing Party is bound by obligations of confidentiality, as the Disclosing
      Party identifies to the other party (the “Recipient”)
      from time to time. Confidential Information shall not include information
      that: (a) was known by the Recipient prior to disclosure by the Disclosing
      Party; (b) is or becomes public knowledge other than through the Recipient’s
      breach of this Agreement; or (c) was obtained by the Recipient from a third
      party where the Recipient was not aware that the third party was under an
      obligation of confidentiality with respect to such information. 
	 
	 5.2      	 Each Party that receives Confidential Information shall, during
      the term of this Agreement and for two (2) years thereafter, maintain the
      confidentiality of the Confidential Information and not disclose it to any
      person or entity, except to their respective employees who need to know
      such Confidential Information for the sole purpose of such Party undertaking
      the activities contemplated in this Agreement. 
	 
	 5.3      	 The Recipient shall, upon the request of the Disclosing Party,
      promptly either destroy or deliver to the Disclosing Party all materials,
      and all copies thereof, in the Recipient’s possession or control that
      contain any of the Disclosing Party’s Confidential Information. Delivery
      of such items to the Disclosing Party shall not relieve the Recipient of
      its confidentiality obligations hereunder. 
	 
	 5.4      	 The obligations under this Section 5 shall not apply to any
      Confidential Information that is required to be disclosed pursuant to any
      statute, law, rule or regulation of any 

 8

 

	 	 governmental authority, any order of any court of competent
      jurisdiction or any request by any stock exchange; however, the Recipient
      shall notify the Disclosing Party before disclosure and give the Disclosing
      Party reasonable opportunity to obtain a protective order or other form
      of protection. 
	 
	 5.5      	 Each Party acknowledges that monetary damages may not be a
      sufficient remedy for an unauthorized disclosure of Confidential Information
      and that in the event of such disclosure by either Party, the other Party
      shall be entitled, without waiving any other rights or remedies, to seek
      injunctive relief or similar judicial or administrative remedies. 
	 
	 6.      	 Assistance by Continental 
	 
	 6.1      	 No later than ten (10) days after the Signature Date, Continental
      shall provide ABC with the following information: 
	 
	 	 (i)      	 subject to the consent of such investors, a list of ten (10) principal
      investors who have in the past provided financing to Continental in connection
      with the Property or are linked to Continental by way of Continental being
      managed by HDI in connection with the Property; and 
	 
	 	 (ii)      	 electronic copies (or hard copies if such electronic copies are not available)
      of the principal marketing materials Continental prepared in connection
      with obtaining financing for the Property. 
	 
	 6.2      	 During the first two years after the Completion Notice, Continental
      shall provide ABC with the following assistance in connection with their
      efforts to obtain financing in respect of the Property: 
	 
	 	 (i)      	 invite ABC to attend selected (at Continental’s sole discretion)
      marketing events conducted by Continental in connection with the Property
      and use reasonable endeavours to introduce BVI Co to the investors attending
      such events; 
	 
	 	 (ii)      	 on request by ABC, assist with the preparation and review of all public
      announcements prepared by ABC in connection with the Property prior to public
      dissemination; and 
	 
	 	 (iii)      	 provide electronic copies (or hard copies if such electronic copies are
      not available) of the principal marketing materials that Continental displays
      in public in connection with obtaining financing for the Property. 
	 
	 6.3      	 Nothing in this Section 6 shall make Continental responsible
      to secure funding for the ABC’ interests in BVI Co, or otherwise be
      responsible for the outcome of the fundraising activities of any Selling
      Party, or to recommend an investment in those entities to any person. 

 9

 

	 7.      	 Miscellaneous Provisions 
	 
	 7.1      	 Upon undertaking all or part of the due diligence contemplated in Section
      2.2, Continental may determine that changes to the ownership structure of
      Tian Yuan or of the Property are needed in order to comply with PRC law.
      If so, then Continental may no later than 60 (sixty) days following the
      Signature Date, upon notice to Selling Parties, require Selling Parties
      to negotiate in good faith and sign, no later than the date that is fourteen
      (14) days after delivery of such notice, amendments to this Agreement providing
      for such changes. 
	 
	 7.2      	 The Parties agree that if any Selling Party either becomes aware of any
      interests in any mineral properties within 10 km of the perimeter of the
      Property that may be available for purchase, or if it actually makes a purchase
      of such interests, that any such interests will first be offered to Tian
      Yuan for purchase at Selling Party’s cost of acquisition as paid or
      payable to a bona fide third party, with the decision as to whether Tian
      Yuan should purchase the interest being at the sole discretion of the directors
      of Tian Yuan. The directors of Tian Yuan shall make a decision whether to
      purchase such interests within 20 days after Tian Yuan is offered to purchase
      such interests. If the directors of Tian Yuan cannot make a decision within
      such time period, Tian Yuan shall be deemed to have waived the right to
      purchase such interests. 
	 
	 7.3      	 Any notice, consent, demand or request (the “Communication”)
      required or permitted to be given under this Agreement shall be in writing
      and may be delivered personally or sent by facsimile or may be sent by courier
      to the relevant Party at its address first above written. Any Communication
      delivered personally or sent by facsimile shall be deemed to have been given
      and received on the second business day next following the date of sending.
      Any Communication sent by courier as aforesaid shall be deemed to have been
      given and received on the fifth business day following the date it is sent
      by courier, addressed to the Parties at their addresses first above written
      or to such other address or addresses as either Party may from time to time
      specify by notice to the other; provided, however, that if there shall be
      a slowdown or other labour dispute which might affect delivery of the Communication
      by courier, then the Communication shall be effective only if actually delivered.
    
	 
	 7.4      	 If a Party breaches its obligations under this Agreement and causes damage
      to the other Parties, it shall be responsible for compensating the other
      Parties. Selling Parties and WZ shall be jointly and severally liable for
      breaches by any Selling Party of this Agreement and shall indemnify Continental
      for its full losses arising from such breach. HDI assumes joint and several
      liability for each of Continental’s obligations under this Agreement.
    
	 
	 7.5      	 This Agreement shall be effective on the Signature Date and shall be
      legally binding on the Parties until it is replaced by the BVI Co Shareholders
      Agreement and the BVI Co Share Option Agreement contemplated in Section
      2.3. Upon signature of those Agreements by the parties thereto, this Agreement
      shall terminate. 
	 
	 7.6      	 The formation, validity, interpretation and performance of this Agreement,
      and any disputes arising under this Agreement, shall be governed by the
      laws of British Columbia. 

 10

 

	 7.7      	 Any dispute, controversy or claim arising out of or relating
      to this Agreement, or the breach, termination or invalidity thereof, shall
      be settled by arbitration in accordance with the UNCITRAL Arbitration Rules
      as at present in force (the “Rules”), as amended by the following
      provisions: 
	 
	 	 (i)      	 The appointing authority shall be Hong Kong International Arbitration
      Centre (the “HKIAC”). 
	 
	 	 (ii)      	 The place of arbitration shall be in Hong Kong at the HKIAC. 
	 
	 	 (iii)      	 There shall be only one arbitrator chosen by the Parties by agreement
      in accordance with the Rules, provided that if they do not reach agreement
      on the choice of a sole arbitrator, then three arbitrators shall be appointed
      in accordance with the Rules. 
	 
	 	 (iv)      	 Any such arbitration shall be administered by the HKIAC in accordance
      with the HKIAC Procedures for Arbitration in force at the date of this Agreement
      including such additions to the UNCITRAL Arbitration Rules as are therein
      contained. 
	 
	 	 (v)      	 The language to be used in the arbitral proceedings shall be English.
    
	 
	 	 (vi)      	 The Selling Parties as a group and Continental shall each submit to the
      arbitrators in writing a description of the facts relating to, and a requested
      remedy for, the dispute. The arbitrators shall select between the remedy
      requested by the Selling Parties and that requested by Continental and it
      shall award the entire remedy selected and only that remedy. In no event
      may the arbitrators issue an award that provides a remedy less than, more
      than, or in any other way different from the Party-requested remedy that
      the arbitrators have selected. 
	 
	 	 (vii)      	 The arbitration award shall be final and binding on the Parties. 
	 
	 7.8      	 Each of the Parties shall from time to time and at all times
      do all such further acts and execute and deliver all further deeds and documents
      as shall be reasonably required in order fully to perform and carry out
      the terms of this Agreement. 
	 
	 7.9      	 Assignments by the Parties of their rights and obligations
      under this Agreement shall be governed by the following provisions: 
	 
	 	 (i)      	 ABC may assign its rights and obligations under this Agreement to CTVH
      without consent of the other Parties. 
	 
	 	 (ii)      	 Each of Continental and CTVH may assign its rights and obligations under
      this Agreement to any of its “Affiliates” (defined below) without
      consent of the other Parties. 
	 
	 	 (iii)      	 The assignee under any assignment permitted under this Section 7.9 shall
      be liable for all the obligations and liabilities of the assignor under
      this 

 11

 

	 	 	 Agreement and as a condition of the assignment must formally accede to
      this Agreement. 
	 
	 	 (iv) 	Except as provided in clauses (i) through (iii), no Party may assign any
      of its rights or obligations under this Agreement without the prior written
      consent of the other Parties. 
	 
	 	 (v) 	“Affiliate” means, in relation to a Party, any company
      which, directly or indirectly, is controlled by, under common control with,
      or in control of, that Party; the term “control” meaning ownership
      of fifty percent or more of the voting stock or registered capital, or the
      power to appoint or elect a majority of the directors, of a company.
	 
	 7.10      	 This Agreement will enure to the benefit of and be binding
      upon the Parties hereto and their respective successors and permitted assigns.
    
	 
	 7.11      	 Time is of the essence in this Agreement. 
	 
	 7.12      	 For the avoidance of doubt, this Agreement is an option only
      in favour of Continental and, except as herein specifically provided, nothing
      herein contained shall be construed as obligating Continental to do any
      acts or make any payments hereunder. Unless otherwise provided in this Agreement,
      any act or acts or payment or payments as shall be made hereunder shall
      not be construed as obligating Continental to do any further act or make
      any further payment. 
	 
	 7.13      	 Selling Parties acknowledge that Continental may be required
      to seek acceptance from the TSX Venture Exchange (the “Exchange”)
      to this Agreement and if as a condition of acceptance, the Exchange requires
      amendments to this Agreement, the Parties shall use their best efforts to
      negotiate an agreement satisfactory to the Exchange. In the event that acceptance
      of the Exchange is not obtained within ninety (90) days following the
      date of this Agreement, this Agreement may be terminated by Continental
      upon ten (10) days notice. 
	 
	 7.14      	 Each Party acknowledges that it will comply with all laws and
      regulations applicable in Tibet. 
	 
	 	 The Parties shall make reasonable efforts to cause their employees
      to comply with the laws and regulations applicable in Tibet, and not to
      engage in any activities, or spread any information, while in Tibet that
      may reasonably be expected to adversely affect Tibet’s political stability
      or national harmony or to offend Tibet’s customs and traditions. Such
      efforts will include: 
	 
	 	 (i) 	Training employees on the laws and regulations applicable in, and the
      customs and traditions of, Tibet and the standards of behaviour to be maintained
      while working in Tibet. ABC shall assist Continental to prepare and deliver
      the training; 
	 
	 	(ii) 	 To the extent allowed by law, providing in all employment agreements
      that the employer has the right to terminate the employment of any employee
      who commits a serious breach of such standards of behaviour; 

 12

 

	 	(iii) 	To the extent allowed by law, terminating the employment of employees
      who commit a serious breach of such standards of behaviour, provided that
      the Company has received notice of such breach from the public security
      bureau or other government department with authority over the employee.
    

	 	 If any Party breaches the requirements of this Section 7.14, it must
      commence to remedy the breach on receipt of notice of such breach and complete
      remedy of the breach within one year of receiving the notice of such breach,
      as well as use its reasonable endeavours to mitigate the damages. 
	 
	 7.15      	 This Agreement may not be amended orally, and any amendment hereto must
      be agreed to in a written instrument signed by all of the Parties. 
	 
	 7.16      	 This Agreement is signed in Chinese and English and each Party will hold
      one (1) original of each language version. The two language versions shall
      have equal validity. 
	 
	 7.17      	 Except as otherwise expressly provided for under this Agreement, failure
      or delay on the part of any Party to exercise a right under this Agreement
      shall not operate as a waiver thereof; nor shall any single or partial exercise
      of a right preclude any other future exercise thereof. 
	 
	 7.18      	 This Agreement constitutes the entire agreement among the Parties and
      supersedes and replaces all previous oral or written agreements, memoranda,
      correspondence or other communications between the Parties relating to the
      subject matter hereof. 
	 
	 7.19      	 This Agreement may be executed in counterpart and by facsimile transmission
      with the same effect as if the Parties had originally signed the same document.
      All counterparts will be construed together and constitute one and the same
      agreement. 

 IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement
  as of the dates detailed below. 

 13

 

	 Leung Yuet Mei  	 
	 	  	 
	 	 
    	 
	Date:	  	 
	 	  	 
	 	  	 
	 Leung Chi Ming  	 
	 	  	 
	 	  	 
	 	 
    	 
	Date:	  	 
	 	  	 
	 Chen Yulin  	 
	 	  	 
	 	 
    	 
	Date:	  	 
	 	  	 
	 HIGHLAND MINING INC.  	 
	 	  	 
	 	  	 
	Per:  	 
    	 
	 	 Authorized Signatory 	 
	Name:	  	 
	Date:  	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 TIBET TIAN YUAN MINERALS  	 
	 EXPLORATION LTD.  	 
	 	  	 
	 	  	 
	 	  	 
	Per:	 
    	 
	 	 Authorized Signatory 	 
	Name:  	  	 
	Date:  	  	 

 14

 

	 CONTINENTAL MINERALS  	 
	 CORPORATION  	 
	 	  	 
	 	  	 
	Per:	 
    	 
	 	 Authorized Signatory 	 
	Name:  	  	 
	Date:  	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 HUNTER DICKINSON INC.  	 
	 	  	 
	 	  	 
	Per:	 
    	 
	 	 Authorized Signatory 	 
	Name:  	  	 
	Date:  	  	 
	 	  	 
	 	  	 
	Wang Zhi  	 
	 	  	 
	 	  	 
	 
    	 
	Date:	  	 

 15

 Schedule A 

 Description of the Property 

 XIETONGMEN Copper Deposit 

  Area: 12.91 km2; 88°23 45 88°26 30 E & 29°21 30 29°24
  00 N 

  Location: Xiong Village, Xietongmen County, Rikaze Tibet. 350 km from Lhasa.

 In the below diagram, the Property is represented by the entire shaded area
  and the darker area within the shaded area represents known existing workings.

 

 16

 Schedule B 

 Exploration Permit 

 

 

 

 17

 Schedule C 

 Documentary Due Diligence 

	 1.      	 The documents Selling Parties shall provide to Continental
      in accordance with Section 2.2 to enable Continental to undertake its due
      diligence study shall include originals of the following documents: 
	 
	 	 (i)      	 With respect to Tian Yuan: 
	 
	 	 	 a.      	 capital verification report and other documents evidencing that all of
      the registered capital has been fully contributed by the founding shareholders
      of Tian Yuan and is currently held by BVI Co; 
	 
	 	 	 b.      	 directors resolutions approving the entering into of this Agreement and
      the performance of the obligations hereunder; 
	 
	 	 (ii)      	 With respect to BVI Co: 
	 
	 	 	 a.      	 share certificate issued by BVI Co in the name of ABC; 
	 
	 	 	 b.      	 certificate of incorporation of BVI Co; 
	 
	 	 	 c.      	 company book of BVI Co (including but not limited to the register of
      shareholders, the register of directors, the register of charges, shareholders
      resolutions and the board resolutions); 
	 
	 	 	 d.      	 articles of association; 
	 
	 	 	 e.      	 board resolutions and shareholders’ resolutions approving the entering
      into this Agreement and the performance of its obligations hereunder; 
	 
	 	 	 f.      	 documents showing that ABC legally hold and beneficially own all issued
      and outstanding share capital (all of which has been duly authorized, validly
      issued and fully paid) of BVI Co, free and clear of all liens, charges or
      encumbrances, and with a par value of USD1 per share; 
	 
	 	 (iii)      	 With respect to the Exploration Rights and the Exploration
      Permit: 
	 
	 	 	 a.      	 current Exploration Permit issued by the Ministry of Land and Resources
      in the name of Tian Yuan; 
	 
	 	 	 b.      	 a legal opinion, in form and substance agreed by the Parties, acceptable
      to Continental, issued by a qualified and reputable law firm in China, contemplating
      that Tian Yuan has legally obtained the Exploration Rights, that the Exploration
      Permit is validly issued to Tian Yuan, that neither the Exploration Rights
      nor the Exploration Permit is subject to any encumbrances or third party
      rights, and that the Exploration Rights and Exploration Permit give Tian
      Yuan the right to conduct 

 18

 

	 	 	 	 exploration for copper and other associated minerals including gold within
      the Property; 
	 
	 	 (iv)      	 With respect to the acquisition of Tian Yuan by BVI Co: 
	 
	 	 	 a.      	 transfer agreement in relation to the acquisition of the entire registered
      capital of Tian Yuan by BVI Co; 
	 
	 	 	 b.      	 documents submitted by the Department of Commerce of Tibet to the Ministry
      of Commerce of the PRC (“MOFCOM”) requesting approval
      of such acquisition and the change of Tian Yuan from a PRC domestic limited
      liability company to a wholly foreign-owned enterprise; 
	 
	 	 (v)      	 With respect to the formal approval of the acquisition of Tian
      Yuan by BVI Co: 
	 
	 	 	 a.      	 official reply issued by MOFCOM approving the acquisition of the equity
      interest in Tian Yuan by BVI Co and the change of Tian Yuan from a PRC domestic
      limited liability company to a wholly foreign- owned enterprise; 
	 
	 	 	 b.      	 wholly foreign owned enterprise articles of association of Tian Yuan
      approved by the Department of Commerce of the Tibet Autonomous Region; 
	 
	 	 	 c.      	 Certificate of Approval for Establishment of Enterprises with Foreign
      Investment in the PRC for Tian Yuan issued by the Department of Commerce
      of the Tibet Autonomous Region; 
	 
	 	 (vi)      	 Enterprise Legal Person Business License for Tian Yuan issued
      by the State Administration of Industry and Commerce of the Tibet Autonomous
      Region evidencing that Tian Yuan is a wholly foreign-owned enterprise and
      that its scope of business includes “mining, processing and sale of
      mineral products, and investment in risk exploration for mineral resources
      other than oil and gas in Rikaze area of Tibet”; and 
	 
	 	 (vii)      	 official confirmation of the transfer of the Exploration Rights
      to Tian Yuan as a wholly foreign-owned enterprise issued by MOLAR and documents
      evidencing that the “type of investor” section of the record
      in relation to the Exploration Permit has been changed to a wholly foreign-owned
      enterprise. 
	 
	 2.      	 Continental shall provide ABC with a copy of each of the following
      documents: 
	 
	 	 (i)      	 Continental’s certificate of incorporation and its memorandum
      and articles, together with a document filed with the British Columbia company
      registry showing the respective shareholdings of its shareholders; 
	 
	 	 (ii)      	 documents evidencing the shareholding relationship and the
      shares entrustment relationship between HDI and Continental; and 

 19

 

	 	 (iii)      	 a legal opinion, in form and substance agreed by the Parties, issued
      by a qualified and reputable law firm in Canada, confirming that Continental
      has no remaining right or obligation to acquire any interest in the Property
      under the terms of the Property Option Agreement dated February 5, 2004
      between HDI and CTVH, which was subsequently assigned by HDI to Continental.
    

 

 

 20

 Schedule D 

 Options 

 The options granted by ABC and BVI Co to Continental in accordance with Section
  2.3 shall include as follows:

	 1.      	 First Option 
	 
	 	 An option, exercisable by notice to ABC within three (3) days
      after signature of the BVI Co Share Option Agreement by the parties thereto,
      for Continental to purchase from ABC such number of shares of BVI Co so
      that Continental will hold 50% of the issued share capital of BVI Co (the
      “First Option”). 
	 
	 	 The following provisions shall apply to the First Option: 
	 
	 	 (i)      	 ABC shall transfer such shares to Continental within ten (10)
      days of Continental’s issuance of its notice to exercise the First
      Option. 
	 
	 	 (ii)      	 Continental shall: 
	 
	 	 	 (a)      	 pay ABC USD1,200,000 within five (5) business days after the completion
      of transfer of such shares; and 
	 
	 	 	 (b)      	 subject to the last paragraph of this Section 1, pay ABC USD800,000 within
      one (1) year after the completion of transfer of such shares. 
	 
	 	 	 If Continental does not pay the amount provided in subclause
      (a) in accordance with the time requirement, this Agreement, the BVI Co
      Share Option Agreement and the BVI Co Shareholders Agreement shall terminate
      and Continental shall promptly transfer back to ABC the shares purchased
      pursuant to the First Option and shall release ABC from the share pledge
      granted under Section 2.3 of this Agreement. 
	 
	 	 (iii)      	 Continental may, at its absolute discretion and option, from
      time to time within twenty four (24) months after the Signature Date (the
      “First Expenditure Period”) invest up to USD5,000,000
      into BVI Co in order to fund exploration activities in relation to the Property
      (the “First Expenditure”). Irrespective of Continental’s
      investments into BVI Co under this paragraph, Continental and the then other
      shareholders of BVI Co (as a group) shall each hold 50% of the issued share
      capital of BVI Co during the First Expenditure Period. To that end, as Continental
      subscribes for any share capital of BVI Co in relation to the First Expenditure,
      the other shareholders of BVI Co as a group shall also be entitled to subscribe
      for the same amount of share capital of BVI Co at nominal consideration
      so that the shareholding of the then other shareholders of BVI Co (as a
      group) is maintained at (but does not exceed) 50%. 

 21

 

	 	(iv)	Subject to clause (v), Continental’s investment
      into BVI Co as contemplated in clause (iii) above shall comply with the
      following time schedule: 
	 	 	 	 
	 	 	(a)	the first USD3,000,000 within 365 days after the Signature Date;
	 	 	(b)	the full USD5,000,000 within 730 days after the Signature Date. 
	 	 	 
	 	(v)	BVI Co will invest into Tian Yuan all of the
      funds Continental invests into BVI Co as contemplated in clause (iv) above
      and Tian Yuan will use such funds in connection with the exploration and
      development of the Property. If the exploration and development work is
      delayed for reasons not attributable to Continental, Continental may request
      an extension of the investment time schedule set out above as well as an
      equal extension of the expiry date of the First Expenditure Period and the
      other Parties may not unreasonably refuse such request. 
	 	 	 
	 	(vi) 	BVI Co shall allot and issue shares to the relevant
      shareholder within ten (10) days after that shareholder’s subscription
      for new BVI Co shares in connection with its investment into BVI Co. 
	 	 	 
	 	(vii)	Continental shall, upon receipt of the shares
      under this Section 1, pledge such shares to ABC. Continental shall retain
      full beneficial ownership of the shares notwithstanding the pledge. If Continental
      exercises the First Option but fails to fulfill any obligation under clauses
      (ii), (iii) or (iv) above, Continental shall within three (3) days following
      the earlier date of such failure or the date that Continental provides notice
      to ABC that it no longer wishes to participate in the Property, transfer
      to ABC all shares it holds in BVI Co to ABC for USD1. Continental shall
      sign all documents in relation to such pledge at the same time that the
      BVI Co Share Option Agreement and the BVI Co Shareholders Agreement are
      signed by the relevant Parties. Having transferred the shares to ABC, Continental
      shall be responsible to invest into BVI Co only such additional amounts
      as may be necessary to permit Tian Yuan to pay for costs Tian Yuan has actually
      incurred in the exploration and development of the Property prior to the
      date of transfer of shares. Continental shall have no liability to make
      additional investments into BVI Co and shall not otherwise be liable to
      the other Parties under this Agreement or in relation to the Property. A
      cost shall be considered “actually incurred” for the purposes
      of this sub-clause (vii) if Tian Yuan has received the service or been delivered
      the goods to which the cost relates prior to the date of transfer of the
      shares. 
	 	 	 
	 	(viii)	Within three (3) days after Continental fulfils
      its obligations under clauses (ii), (iii) and (iv) above, the other BVI
      Co Shareholders shall release Continental from the share pledge granted
      under clause (vi). 
	 	 	 
	2.	Second Option 

      A further option, exercisable by Continental after its exercise of the
        First Option by (i) one month’s prior notice to the then other shareholders
        of BVI Co, where such notice is given no later than twenty-two (22) months
        following the Signature Date, or (ii) two months’ prior notice to
        such shareholders, where such notice is given between twenty-two (22)
        months and twenty-four (24) months following the Signature Date, 

 22

 

	 	for Continental to subscribe at par value for
      such number of shares of BVI Co  (without any change in the total number
      of shares issued to the then other  shareholders of BVI Co) so that
      Continental’s shareholding in BVI Co after the  issuance of such
      shares will be 60% (the “Second Option”). 
	 	 	 
	 	The following provisions shall apply to the Second
      Option: 
	 	 	 
	 	(i) 	BVI Co shall allot and issue such shares to Continental within ten (10)
      days after Continental’s issuance of its notice to exercise the Second
      Option and payment by Continental of the subscription price.
	 	 	 
	 	(ii)	Continental may, at its absolute discretion and option, from time to time
      within a timeframe as determined by Continental, but no later than 365 days
      after expiry of the First Expenditure Period (the “Second Expenditure
      Period”) invest into BVI Co an additional US$3,000,000
      (less the subscription price Continental has paid to obtain the shares subject
      to the Second Option) in order to fund exploration activities in relation
      to the Property (the “Second Expenditure”). Irrespective
      of Continental’s investments into BVI Co under this paragraph, Continental
      shall hold 60% of the issued share capital of BVI Co and the then shareholders
      of BVI Co (as a group) shall hold 40% of the issued share capital of BVI
      Co during the Second Expenditure Period. To that end, as Continental subscribes
      for any share capital of BVI Co in relation to the Second Expenditure, the
      other shareholders of BVI Co as a group shall also be entitled to subscribe
      for the same amount of share capital of BVI Co so that the shareholding
      of the then other shareholders of BVI Co (as a group) is maintained at (but
      does not exceed) 40%.
	 	 	 
	 	(iii)  	If the exploration and development work is delayed for reasons not attributable
      to Continental, Continental may request an extension of the expiry date
      of the Second Expenditure Period and the other Parties may not unreasonably
      refuse such request.
	 	 	 
	 	(iv) 	Continental shall, upon receipt of the shares under this Section 2, pledge
      such shares to then other BVI Co shareholders. Continental shall retain
      full beneficial ownership of the shares notwithstanding the pledge. If Continental
      exercises the Second Option but does not incur the Second Expenditure in
      accordance with this Section, Continental shall within three (3) days following
      the earlier date of the expiration of the Second Expenditure Period or the
      date that Continental provides notice to the other shareholders that it
      will not complete the expenditure required in terms of the Second Option,
      transfer to the then other BVI Co shareholders the shares subscribed for
      in accordance with the Second Option for USD1. Continental shall sign all
      documents in relation to such pledge at the same time that it exercises
      the Second Option. Having transferred the shares to ABC, Continental shall
      be responsible to invest into BVI Co only such additional amounts as may
      be necessary to permit Tian Yuan to pay for costs Tian Yuan has actually
      incurred in the exploration and development of the Property prior to the
      date of transfer of shares. Continental shall have no liability to make
      additional investments into BVI Co and shall not otherwise be liable to
      the other Parties.

 23

 

	 	 (v)      	 Within three (3) days after Continental fulfills its obligations under
      this Section 2, ABC shall release Continental from the share pledge granted
      under this Section B.2. 
	 
	 3.      	 Further Assurances 
	 
	 	 ABC shall take all necessary and appropriate actions, including
      giving all shareholder approvals and causing directors of BVI Co designated
      by it to give their approvals, to enable the issuance of shares by BVI Co
      pursuant to any exercise of the First Option and the Second Option. 

 24

 Schedule E 

 Terms and Conditions of the BVI Co Shareholders Agreement

 As contemplated in Section 2.3, the BVI Co Shareholders Agreement between
  Continental and the ABC shall include the following principal provisions as
  well as such further provisions as are ordinary or customary for such agreements
  in order to protect the interests of the shareholders: 

	 1.      	 Funding of the Company 
	 
	 	 (a)      	 Continental having completed its investment into BVI Co in connection
      with the First Option (or if Continental exercises the Second Option then
      upon expiry of the Second Expenditure Period), the board of directors of
      BVI Co may from time to time by simple majority resolution determine that
      BVI Co requires additional funding and the then shareholders of BVI Co shall
      have first right to supply such additional funding. 
	 
	 	 (b)      	 The shareholders shall agree to make either equity contributions or shareholders
      loans to BVI Co. In the event that the shareholders cannot reach agreement
      on the form of funding, the funding will be in the form of shareholders
      equity. 
	 
	 	 (c)      	 Each shareholder may subscribe to any such increase in shareholders equity
      capital or shareholders loans (as the case may be) in proportion to their
      prevailing respective shareholdings by notifying the board of directors
      no later than thirty (30) days after the board resolution is passed. Contribution
      of any increase by either shareholder shall be made no later than the time
      stipulated by the board of directors, provided that the board of directors
      will not require that the contributions are made less than sixty (60) days
      following the date of the board resolution requiring the increase. 
	 
	 	 (d)      	 If any shareholder declines to subscribe for its proportionate share
      of any such increase, the other shareholders may subscribe for that share
      and the proportionate shareholding interest of the shareholder not subscribing
      will be diluted proportionately, in accordance with a formula to be set
      out in the BVI Co Shareholders Agreement. If such increase is not fully
      subscribed for, then the board of directors may reduce the amount offered
      and re-send the notice until any notice which is sent is fully subscribed
      by one or more of the shareholders or the board of directors may invite
      other investors, agreed to by the shareholders of BVI Co, to subscribe for
      such equity, subject to the new investors becoming party to the BVI Co Shareholders
      Agreement. 
	 
	 2.      	 BVI NPI Payments 
	 
	 	 (a)      	 The shareholders of BVI Co will be entitled to share in dividends of
      BVI Co and in distribution of net proceeds upon a liquidation of the assets
      of BVI Co according to their respective shareholdings in BVI Co, provided
      that if the shareholding in BVI Co in aggregate held by ABC falls below
      15%, then ABC will have an option, exercisable by a single written notice
      given by all of them 

 25

 

	 	 	to Continental, no later than 30 days after their
      aggregated shareholding falls below the aforementioned 15%, to: 
	 	 	 	 	 
	 	 	(i)	continue to hold their shares in BVI Co, to be
      entitled to receive their respective shares of dividends of BVI Co according
      to their respective shareholdings and to be liable to make equity contributions
      according to their respective shareholdings in accordance with Section 1
      above; or 
	 	 	 	 
	 	 	(ii)	return all their shareholdings in BVI Co to BVI
      Co within ten (10) days from the date of the notice for cancellation in
      exchange for a payment, payable ninety (90) days after the financial year
      end of BVI Co or the date that BVI Co distributes dividends to its shareholders,
      whichever date is the later, to be shared among themselves (a “BVI
      NPI Payment”) in respect of each financial year of BVI Co following
      the date of transfer, calculated at a fixed rate of 12.5% of the “BVI
      Net Profits” (as defined below), which BVI NPI Payments shall be subject
      to the following provisions: 
	 	 	 	 
	 	 	 	a.	subject to subclauses b. and c. below, BVI NPI Payments will
      not accrue or be payable to such shareholders until after Continental has
      recovered through its receipt of dividends from BVI Co all of its “Continental
      BVI Excess Investment” (as defined below); 
	 	 	 	 	 
	 	 	 	b.	in respect of any financial year before NPI Payments have
      accrued and become payable in accordance with subclause a. above, and provided
      that in any event that BVI Co has BVI Net Profits of no less than US$2
      million, such shareholders shall be entitled to a fixed interim payment
      of US$250,000 (to be shared among themselves); 
	 	 	 	 	 
	 	 	 	c. 	once BVI NPI Payments have accrued and become payable in
      accordance with subclause a. above, then the first US$250,000 of the
      BVI NPI Payments for each year shall be paid to such shareholders (to be
      shared among themselves), and the remaining amounts accrued, on an aggregated
      basis, shall be reduced by the amount of any interim payments such shareholders
      have received in accordance with subclause b. above until all such previously
      paid fixed interim amounts have been accounted for as a credit to the amounts
      otherwise due to the other shareholders in BVI Co. 
	 	 	 	 
	 	(b)	The term “BVI Net Profits” for a
      particular financial year means the profits of BVI Co available for distribution
      in respect of that year to the shareholders of BVI Co, in accordance with
      Canadian General Accepted Accounting Practices (“Canadian GAAP”),
      after deduction of operating expenses, applicable taxes, loan repayments
      and other costs and financial commitments as well as working capital and
      reserves either required by law or determined to be 

 26

 

	 	  	reasonable by the board of directors of BVI Co in order to provide for
      working capital or for environmental reclamation in relation to the Property.
    
	 
	 	 (c)      	 The term “Continental BVI Excess Investment” means all loan
      and equity capital invested, provided and or contributed by Continental
      to BVI Co as well as any additional investment made by Continental in relation
      to the Property directly or indirectly under the terms hereof and not otherwise
      accounted for as part of BVI Co’s loan or equity capital after the
      point at which the shareholding of ABC falls below 15% of the total shareholders
      equity capital, plus interest on such funds at the interest rate published
      calculated in accordance with the prime overdraft rate charged by the Bank
      of Montréal, Canada to its corporate customers. 
	 
	 	 (d)      	 The Parties will enter into a BVI Net Profits Agreement concurrently
      with such shareholders exercising their option to receive the BVI Net Profits,
      in a form satisfactory to Continental’s legal advisors. 
	 
	 3.      	 Exploration budgets 
	 
	 	 (a)      	 Continental shall prepare annual exploration programs and budgets (“Continental
      BVI Co Program”) and submit them to the Board for approval forty-five
      (45) days after the end of each exploration program. 
	 
	 	 (b)      	 In the event that Continental fails to submit a Continental BVI Co Program
      in accordance with clause (a) upon expiry of the First Expenditure Period
      (or if Continental exercises the Second Option then upon expiry of the Second
      Expenditure Period), ABC shall be entitled to submit an annual exploration
      program and budget (“ABC BVI Co Program”) for the following
      year to the Board for approval and Continental undertakes that it will approve
      the ABC BVI Co Program if it is in accordance with sound mining and applicable
      industry standards and practices in China. 
	 
	 	 (c)      	 If Continental does not elect to fund the ABC BVI Co Program or elects
      to fund less than USD1,000,000 or its pro rata share of the ABC BVI Co Program
      if that is less than USD1,000,000, then ABC shall be entitled to implement
      its proposed exploration according to the ABC BVI Co Program and ABC may
      elect to assume the operatorship, management and administration of the ABC
      BVI Co Program. 
	 
	 	 (d)      	 In the event that Continental submits a Continental BVI Co Program in
      any period during which ABC has assumed the operatorship, management and
      administration under an ABC BVI Co Program, the operatorship, management
      and administration of the annual exploration program and budget under the
      Continental BVI Co Program shall revert to Continental so long as Continental
      holds 50% or more of the shares of BVI Co. 
	 
	 	 (e)      	 The provisions of (c) will apply mutatis mutandis to ABC and the provisions
      of (d) will apply mutatis mutandis to Continental if ABC’s shareholding
      rises above 50%. 

 27

 

	 4.      	 Board of Directors of BVI Co 
	 
	 	 (a)      	 Continental having exercised the First Option and subject to
      clause (b) below, the following provisions will apply: 
	 
	 	 	 (i)      	 The board of directors of BVI Co shall consist of six (6) directors.
      Upon signature of the BVI Co Shareholders Agreement, BVI Co and the ABC
      shall cause all but three (3) directors of BVI Co to resign immediately
      and Continental shall be entitled to appoint three (3) directors to the
      board of directors of BVI Co; 
	 
	 	 	 (ii)      	 Continental shall have the right to appoint the Chairman of the board
      of directors of BVI Co; and 
	 
	 	 	 (iii)      	 BVI Co and the then shareholders of BVI Co other than Continental agree
      not to undertake any action to remove any of the Continental appointed directors
      from the board of directors, without the prior written consent of Continental,
      or to undertake any shareholders action that may result in Continental not
      being in control of the board of directors. The other shareholders of BVI
      Co may request Continental to remove a Continental appointed director who
      has committed a serious breach of the standards of behaviour provided for
      in Section 7.14, but Continental shall be entitled to replace a director
      so removed. 
	 
	 	 (b)      	 In the event that Continental’s shareholding in BVI Co
      falls below 50%, each shareholder shall be entitled to appoint a number
      of directors proportionate to their percentage interest of the issued share
      capital of BVI Co, and the shareholder holding more than 50% of the issued
      share capital will have the right to appoint the Chairman and this clause
      will apply to any subsequent shareholding changes where a shareholder acquires
      an interest of more than 50% in BVI Co; 
	 
	 	 (c)      	 Except for matters required by law to be dealt with by BVI
      Co shareholders, the articles of association and by-laws of BVI Co will
      provide that all decisions of BVI Co shall be resolved by simple majority
      vote of the board of directors of BVI Co at a duly convened meeting at which
      a quorum of a majority of the board of directors is present. 
	 
	 	 (d)      	 The Chairman of the board of directors shall have a casting
      vote, except that if Tian Yuan undertakes an ABC BVI Co Program the following
      supplementary provisions shall apply: 
	 
	 	 	 (i)      	 the directors of BVI Co appointed by ABC, and not the Chairman of the
      Board, shall have a casting vote in respect of all matters relating to the
      ABC BVI Co Program, including the issuance of shares by BVI Co to fund the
      ABC BVI Co Program in a good workmanlike, safe and efficient manner in accordance
      with sound mining and applicable industry standards and practice in China;
      and 

 28

 

	 	 	(ii)	The Chairman of the Board shall have a casting vote on all other matters,
      if any, excluding matters relating to the ABC BVI Co Program. 

	 5.      	 Right of First Refusal 
	 
	 	 (a)      	 Continental shall have the right to dispose of its shares in
      BVI Co provided that the other shareholders of BVI Co have first been offered
      the shares on the same terms as Continental proposes to accept. 
	 
	 	 (b)      	 Each shareholder of BVI Co other than Continental shall each
      have the right to dispose of its shares in BVI Co provided that such shareholder
      has first offered Continental the shares on the same terms as the shareholder
      that is selling proposes to accept. 
	 
	 	 (c)      	 The shareholder proposing to sell shall first notify in writing
      the other shareholder or shareholders having a right of purchase with details
      about the proposed terms of sale and other shareholder shall have thirty
      (30) days to decided whether to purchase the shares being sold on the same
      terms as are being offered with completion to occur on the earlier of a
      date chosen by the buying party and the date which the selling party would
      have otherwise sold the shares. Before any transfer of shares of BVI Co
      is effected, any purchaser of the shares must agree to become a party to
      the BVI Co Shareholders Agreement and the BVI Co Share Option Agreement.
    
	 
	 6.      	 Management Organization and Personnel 
	 
	 	 (a)      	 BVI Co shall have a management organization that is under the
      leadership of the Chief Executive Officer, who shall be an individual nominated
      by Continental and appointed by BVI Co’s board of directors. 
	 
	 	 	 BVI Co shall cause Tian Yuan to set up a management organization
      that is under the leadership of the General Manager of Tian Yuan, who shall
      be an individual nominated by the Chief Executive Officer of BVI Co and
      appointed by the board of directors of Tian Yuan. 
	 
	 	 (b)      	 Continental shall provide suitable engineering expertise, charged
      at market related rates, as agreed in terms of the annual exploration budget
      and program approved by the board of directors, to BVI Co and Tian Yuan,
      and BVI Co and Tian Yuan shall engage personnel recommended by Continental
      to operate all the engineering programs. Continental may elect to have the
      costs of such provision of expertise be either (i) reimbursed to it by Tian
      Yuan or (ii) credited as Continental’s expenditure incurred in relation
      to the Property in accordance with Part B of this Schedule. 
	 
	 7.      	 Accounts and Audits 
	 
	 	 (a)      	 BVI Co shall prepare its accounts in accordance with Canadian
      GAAP. 
	 
	 	 (b)      	 BVI Co shall engage an international firm of auditors to audit
      its accounts and annual financial statements and to prepare an audit report.
    

 29Filed by Automated Filing Services Inc. (604) 609-0244 - Continental Minerals Corporation - Exhibit 4A

 LOAN AGREEMENT 

 This Loan Agreement (“Agreement”) is entered into
  on _____________ , 2005 in Grand Cayman, Cayman Islands by the following parties:

 Highland Mining Inc., a corporation duly established and existing
  under the laws of British Virgin Islands, with its principal place of business
  at P.O. Box 3444, Road Town, Tortola, British Virgin Islands ("Borrower"); and

 N8C Resources Inc., a corporation duly established and existing
  under the laws of the Cayman Islands, with its principal place of business at
  P.O. Box 1968GT, 2 Camelot Drive, Whitehall Estates, Grand Cayman, Cayman Islands
  (“Lender”). 

 WHEREAS, the Borrower is an affiliate of the Lender and Lender
  agrees to provide loans to Borrower for operations and working capital purposes;

 NOW, therefore, Lender and Borrower hereby agree as follows:

	 1.      	 The Lender shall lend to the Borrower
        and the Borrower shall borrow from the Lender principal amount up to a
        maximum US$ 580,000 (the “Loan”). 

	 
	 2.      	 The repayment of the Loan is on demand.
      

	 
	 3.      	 The Loan shall bear interest at a rate
        of LIBOR plus 2% per annum, compounded monthly in arrears. 

	 
	 4.      	 The Lender shall not be obliged to provide
        the Loan unless it shall have received the following documents: 

	 
	 	 (1)     
      
	 a resolution of the Board of Directors of the Borrower,
        in form and substance satisfactory to the Lender, approving the borrowing
        under the terms of this Agreement and authorizing a director to sign this
        Agreement; 

	 
	 	 (2)      
	 a draw-down notice issued by the Borrower to the
        Lender at least five (5) days before the intended draw-down date, notifying
        the Lender the Intended draw-down date and the draw-down amount. 

	 
	 5.      	 The loan shall be extinguished for the
        sum of USD 1 (One United States Dollar) in the event that the Lender,
        or parent company thereof, issues a 

 1

 

	 	 formal notice of termination of its option in the
        Xietongmen Project. 

	 
	 6.      	 This agreement shall be governed by the laws of
        •. 

	 
	 7.      	 This Agreement is signed in English. Any Chinese
        language version of this agreement is for reference purposes only. 

 IN WITNESS WHEREOF, the authorized representatives of the
  Lender and the Borrower have signed this Agreement on the date first above written.

	 Highland Mining Inc.  	 N8C Resources Inc.  
	  	 
	  	 
	 	 
	 By:  	 By:  
	 	 
	 Name:  	 Name:  
	 	 
	 Title:  	 Title:  

 2

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