Document:

EX-10.1 Exhibit 10.1

Exhibit 10.1

 

Bakhu
Holdings Corp. Announces the Appointment of a New CEO & CFO

 

Experienced
Chinese Management Team Takes Reins of Bakhu Holdings Corp

 

LAS VEGAS,
NEVADA, -- Bakhu Holding Corp. ("the Company" or "we") (OTC
BB: BKUH.OB) today announced the resignation of Mr. Alexander Deshin,
the founder, CEO and CFO of Bakhu Holdings Corp. and the appointment of Mr.
Xinan Zeng as the company’s new CEO & CFO.  Mr Zeng is the Chairman and CEO
of the company Bakhu plans to merge with, Shenzhen Xinhonglian Solar Energy Co. (SXSE).  

 

Mr. Zeng is 37 years old and is
an engineering graduate from graduate of Guangzhou
Railway Vocational and Technical College.  He
founded SXSE in 2002 after being influenced early in his career by his uncle,
who was a semiconductor researcher focusing on solar cells.  In 2002, SXSE was
a part time venture for Mr. Zeng but within a year the part time passion turned
into a full time business.  Since that time, Mr. Zeng has managed SXSE into a
successful and profitable company whose customers include Wal-Mart, Panasonic,
Motorola and ZTE (the largest manufacturer of cell phones in China; and ranks
as the sixth largest cell phone manufacturer in the world).  With the
appointment of Mr. Zeng as Bakhu’s CEO, the company has a proven expert and leader
in the manufacture of high quality, solar powered products and solar panels.

 

 

The
completion of the merger between Bakhu Holdings Corp. and SXSE is contingent on
the completion of an audit by a PCAOB designated accounting firm.  Once
the merger is completed Bakhu Holding Corp., will change
its name to Bakhu Solar Corp and will continue to
pursue the same successful, aggressive growth strategy that was implemented by
SXSE, a profitable private company that was established in 2002 in
Shenzhen, Guangdong Province, Peoples Republic of China. Since its inception,
SXSE – to be known as Bakhu Solar - built its business by manufacturing a wide
range of solar products for commercial and consumer applications.  In 2004, the
company compounded its success by expanding to make PV solar panels. Today, the
company produces PV solar panels and a wide array of solar products, all of
which use solar cells as the power source.  

 

 

SXSE manufactures and sells solar
products for lighting, cell phones, commercial lighting as well as numerous
other applications.  SXSE also manufactures 35 different PV solar panels,
ranging from 10W (watts) to 250W.  These PV solar panels are used in both
industrial and residential applications. Bakhu uses high quality solar cells
which it purchases from cell manufacturers in Japan and Taiwan. Solar products
manufactured by SXSE for commercial and consumer use include portable lights
for various applications, lane markers, solar street
lights, solar traffic lights and battery chargers. 

 

Bakhu employs 100 workers in its
manufacturing operation and 10 engineers who design products and over see the
fabrication processes. The factory is located in an industrial part of Shenzhen
and occupies 1500 square meters.

 
Bakhu Holdings Corp. is a public company that plans to enter the green energy business by acquiring a solar manufacturer that is based in China.  The target company that Bakhu Holdings Corp. plans to acquire is Shenzhen Xinhonglian Solar Energy Co., Ltd (SXSE). The completion of the merger between Bakhu Holdings Corp. and SXSE is contingent on the completion of an audit by a PCAOB designated accounting firm. which is followed by the transfer of SXSE’s assets to a Hong Kong based company.
 
 
 
For more information, please contact:
 
Investor Relations - Bakhu Holdings Corp.
5348 Vegas Drive, Las Vegas, Nevada 89108
Tel:   1-800-870-1242
Email: ir@bakhu.com
 

Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995

A number of statements contained in this press release are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Act of 1995. These forward-looking statements
involve a number of risks and uncertainties, including activities relating to
the completion of the merger between Shenzhen Xinhonglian
Solar Energy Co., Ltd (SXSE) and Bakhu Holdings Corp. These activities
include the completion of an audit by a PCAOB designated accounting firm and
the transfer of SXSE’s assets to a Hong Kong based company, our ability to raise
capital when needed and on acceptable terms and conditions, the intensity of
competition and general economic factors. The actual results Bakhu Holdings
Corp. may achieve could differ materially from any forward-looking statements
due to such risks and uncertainties. Bakhu Holdings Corp encourages the public
to read the information provided here in conjunction with its most recent
filings, which may be viewed at www.sec.gov.

SOURCE Bakhu
Holdings Corp.Exhibit 10.3 

TEMPORARY OCCUPATION AND RIGHT OF WAY AGREEMENT ABOUT THE
MINE CONCESSIONS MENTION IN ATTACHMENT “A” THAT IS CELEBRATED BY MR. VICTORIO
GUTIÉRREZ CÁRDENAS AND MRS. IRMA BAÑUELOS SERRATO (HERE AFTER “MR. VICTORIO AND
MRS. IRMA”) AND THE COMPANY U.S. PRECIOUS METALS DE MÉXICO, S.A. DE C.V. (HERE
AFTER “USPMM”, REPRESENTED BY ITS PRESIDENT MR. JOSÉ GARCÍA GRANADOS, GRANTING
THE FOLLOWING RECITALS AND CLAUSES:

RECITALS

 “MR. VICTORIO
GUTIÉRREZ CÁRDENAS AND MRS. IRMA BAÑUELOS SERRATO” declare that:

	
  

 	
  

 	
  

 
	
  

 	
 I.

 	
 Are the owners of the properties where the
 Mine Concessions “Solidaridad” Title 220315, “Solidaridad III” Title 223444
 and “La Ceiba” Title 223119, are located. To certify his property he shows
 the Property Deeds.

 
	
  

 	
  

 	
  

 
	
  

 	
 II.

 	
 The Property that referred to this
 Agreement, up to date are free of any obligation, tax charge or domain
 limitation; free of any legal controversy, legal action or demand of any
 nature; and free of any judicial effect of any contract or judicial act that
 might prevent, affect or forbid the celebration or accomplishment of the
 obligations establish in this Agreement.

 

 “USPMM” declares that:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 I.

 	
 Is a Mexican Company legally registered before the
 Ministry of Economy and the Ministry of Foreign Affaires, rule by the Mexican
 Laws according to Article 11 of the Mining Law, and the article 8 of the rule
 under the Public Deed number 15970, dated March 5th 2003, before the Notary Public
 number 91, of Estado de México, Lic. Ma. Guadalupe Pérez Palomino, and
 registered in the Commerce Register (Registro del Comercio) under the
 mercantile folio number 306255 dated June 26th 2003.

 
	
  

 	
  

 	
  

 
	
  

 	
 II.

 	
 That it is represented by Mr. José García
 Granados, under Public Deed number 15970, dated March 5th, 2003, before the
 Notary Public number 91, of the State of Mexico, Lic. Ma. Guadalupe Pérez
 Palomino, and registered under Mercantile Folio number 306255 dated June
 26th, 2003, whose personality hasn’t been revoke or limited until this date. 

 
	
  

 	
  

 	
  

 
	
  

 	
 III.

 	
 That is the owner of the Mine Concessions
 referred in Annex A.

 
	
  

 	
  

 	
  

 
	
  

 	
 IV.

 	
 That posses the legal capacity under the
 Mexican Laws to acquire as owner:

 
	
  

 	
  

 	
 a.

 	
 Mine Concessions located under the Mexican
 Republic Territory, according to article 11 of the Mining Law; and

 
	
  

 	
  

 	
 b.

 	
 Real State located outside the Constitutional
 restricted zone, according to article 10-A of the Law of Foreign Investments
 and article 8 of its Rules and Regulations.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 V.

 	
 That the powers and authority granted to
 the person that represents the Company in this act, are enough to celebrate
 this Agreement on the name and representation of the Company; and such powers
 and representation hasn’t been revoke or modify to the date of the signature
 of this instrument. And

 

	
  

 	
  

 	
  

 
	
  

 	
 VI.

 	
 Is the exclusive creditor of the rights of
 exploration and exploitation and purchase option of the Mine Concessions.

 

Both Parties declares that:

	
  

 	
  

 	
  

 
	
  

 	
 I.

 	
 Is their wish to establish this Temporary
 Occupation and Right of Way Agreement, in which it will be established the
 terms and condition that will govern this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 II.

 	
 The present Agreement is celebrated
 according to the Laws of Mexican United States and specifically, according to
 the applicable content of the Law, Mining Law and its Rules and Regulations,
 and by the Federal Civil Code.

 
	
  

 	
  

 	
  

 
	
  

 	
 III.

 	
 The Parties manifest and mutually agreed
 that one portion of the land, covers the mining lots derived from the Mine
 Concessions and that MR. VICTORIO AND MRS. IRMA wishes to grant “USPMM”, and “USPMM”
 wishes to acquire from MR.
 VICTORIO AND MRS. IRMA the
 Rights of Temporary Occupation and Right of Way over such portion of land,
 with the objective of execute Mining Activities.

 

Due the late recitals and agreements mutually
made by “THE PARTIES” in this instrument, “THE PARTIES” agrees to grant each
other, the following:

CLAUSES

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Interpretation. The following terms will be interpreted as
 the definitions show below: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mining Activities. - Means any job or work executed with the
 purpose of: a) Identify mineral deposits and mining reserve quantification to
 determine the economic feasibility of the investment recuperation; b) prepare
 and develop the area where the mineral deposit is located, in order to
 recuperate and extracted the Mineral Products, including, without been
 limitative, the following concepts: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 a.

 	
 The Construction of any type of works,
 buildings and other exploration works (such as geological recognition, rock
 sampling, soil, sediments and minerals to do metallurgic tests; geological
 and geophysics mapping; trench and exploration operation support works
 construction; drilling, development and drilling of any kina; and tunnel,
 holes and mine galleries needed to identify the mineral deposits and/or to
 evaluate and quantify the mineral deposits located in the area where the Mine
 Concessions are located;

 
	
  

 	
  

 	
  

 	
 b.

 	
 the access to the constitution of right of
 ways or the construction of ways
 necessary to execute the activities described in the late paragraph; 

 
	
  

 	
  

 	
  

 	
 c.

 	
 the utilization of waters and the to obtain
 of water concessions, including the installation of water pipes or electric
 cables and any other structure or building necessary to conduct water and
 power;

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 d.

 	
 the treatment, mining and processing of
 Mineral Products, in any of its stages, including, without been limitative,
 the recuperation or extraction by any means of such Mineral Products; 

 
	
  

 	
  

 	
  

 	
 e.

 	
 the research of economic feasibility of the
 Mineral Products mining; the construction of a mine in the lot located in the
 land whose Rights of Occupation we are agreeing; the sale and marketing of
 the Mineral Products; and, 

 
	
  

 	
  

 	
  

 	
 f.

 	
 The execution of any activity considered by
 “USPMM” as necessary, appropriated and incidental to the activities described
 before.

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Appraisal. - Means the estimated amount of the Leasing
 calculated by Hectare that will be paid for the Use and Occupation of the
 Superficial Area in the “Lot of Mining Occupation”. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Company (or USPMM). - Means the Company US Precious Metals de
 México, S.A. de C.V.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Commission. - Means the Commission of National Real
 State Appraisals (Comisión de Avalúo de Bienes Nacionales) created by the Law
 of National Real State (Ley de Bienes Nacionales) to administer and do the
 appraisals of the Real States and Goods property of the Mexican Republic.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mine Concessions. - Means the Mine Concessions of exploration
 and exploitation, and the mining lots attached to them, located in the
 Municipality of Carácuaro, State of Michoacán, México, owned by “USPMM” or
 under “USPMM” is creditor of the exclusive rights o exploration and purchase
 option described in Annex A of this instrument.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Agreement. - Means the present Agreement of Temporary
 Occupation and Right of Way, with its Annexes and documents that “THE
 PARTIES” are mutually notifying. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Rights of Occupation. - Means the exclusive right to use and
 occupy during the term of this Agreement, the land lot that is contain in the
 Lot of Mining Occupation, with the purpose of execute Mining Activities.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Lot Mining Occupation. - Means the lot of land that contains the
 mining lots stated by the Mine Concessions mention in this agreement; the Lot
 of Mining Occupation is the Legal objective of the Rights of Occupation. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Map of Land Certification. - Means the technical Map attached to this
 Agreement as Annex B, that has been approved by MR. VICTORIO AND MRS. IRMA; the Map of Land Certification describes the
 geographic location and perimeter of:

 
	
  

 	
  

 	
  

 	
 a.

 	
 The Lands, as they have been certified by
 the State of Michoacán Coordinator of the National Institute of Statistics,
 Geography and Information of Mexico (INEGI) (Coordinador de el Estado de
 Michoacán del Instituto Nacional de Estadística, Geografía e Información de
 México (INEGI)). 

 
	
  

 	
  

 	
  

 	
 b.

 	
 The mining lots supported by the Mine
 Concessions, as they have been certified by the Mining General Direction of
 the Ministry of Economy of Mexico (with a superficial surface of 15,108
 Hectares); and 

 
	
  

 	
  

 	
  

 	
 c.

 	
 The Lot of Mining Occupation, as it is
 certified by MR.
 VICTORIO AND MRS. IRMA and
 “USPMM”.

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Commercial Production. - Means the operation of the mine in the
 Lot of Mining Occupation or under a portion of it, but doesn’t include the
 mining with tests purposes or the mining performed in a pilot plant. It is
 considered that the Commercial Production has started on the first calendar
 day after 30 days during such period Mineral Products has been produced in
 the Lot of Mining Occupation at average capacity higher than 70%, related to
 the initial capacity assigned to the plant that was build in the Lot of
 Mining Occupation.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 To better understand of The PARTIES, the late statement has to be
 understood as this. When the exploration works in the temporary occupation
 lot are finished, USPM will move to the exploitation stage, which will be
 communicated to MR.
 VICTORIO AND MRS. IRMA as soon as USPM gets the
 geological studies of exploration that determine that the mine will be
 productive, and both parties will agree on an increase of the Annual Rent or
 the buying offers will be analyzed by the Company.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mineral Products. - Means the substances or minerals describe
 in article 4 of the Mining Law.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Yearly Rent. - Means the rent established to be pay for
 each period of twelve months calendar by “USPMM” to MR. VICTORIO AND MRS. IRMA for the use and occupation of the Lot of
 Mining Occupation; according to article 58, paragraph 3, of the Rules and
 Regulations of the Mining Law, the Annual Rent will be adjusted applying the
 Pricing Index of the last twelve calendar months before the date when the
 rent is eligible. “USPMM” will pay the Annual Rent in 2 periods in a semester
 basis.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Term of Occupation. - Means the term of this Agreement
 established in clause 4.0.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Lands. - Means the portion of The Lands owns by MR. VICTORIO AND MRS. IRMA that have been assigned for a Temporary
 Occupation.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Occupation. In this act, MR.
 VICTORIO AND MRS. IRMA grant
 “USPMM” and “USPMM” acquires from MR.
 VICTORIO AND MRS. IRMA, the
 Rights of Occupation under the Lot of Mining Occupation, in order for “USPMM”
 to perform Mining Activities. The Lot of Mining Occupation agreed, whose
 location and perimeter can be appreciated in Exhibit B of this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Rights. - The Rights of Occupation granted through
 the present act that includes, without limitation, the rights of “USPMM” to
 execute the Mining Activities under the Lot of Mining Occupation, according
 to the terms and conditions stated in this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Term. - The term of this Contract will be equal to
 the term of all and each Mine Concessions involved. Such term will be
 obligatory for MR.
 VICTORIO AND MRS. IRMA and
 discretional to “USPMM”. “USPMM” might unilaterally end this Contract through
 a writing notification addressed to MR. VICTORIO AND MRS. IRMA

 

	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Rent. - “USPMM” will pay MR. VICTORIO AND MRS. IRMA an Annual Rent as a compensation for to the
 transmission of the Occupation Rights. The Annual Rent will be $62,400.00
 (sixty two thousand four hundred Mexican pesos) and will be paid on a
 Semester basis, each payment will be $31,200.00 (Thirty thousand two hundred
 Mexican pesos) plus Value Added Tax. These payments will be done during the
 first five (5) days of the month, starting on the date of this Agreement
 signature.:

 
	
  

 	
  

 	
  

 
	
  

 	
 5.1. MR. VICTORIO AND MRS. IRMA will deliver to USPMM his receipt or invoice
 that complied with all fiscal requirements, for the amount stated in
 paragraph 5. For clarification purposes, this annual rent will be enough for MR. VICTORIO AND MRS. IRMA to pay personal taxes and Value Added Tax,
 remaining a monthly net income of $5,000.00 (five thousand Mexican pesos), MR. VICTORIO AND MRS. IRMA will take care of his fiscal obligations
 derived from this payment, liberating USPMM of any responsibility derived
 from this case.

 
	
  

 	
  

 
	
  

 	
 5.2. If it necessary, USPMM, on its cost
 and before to the notification of Commercial Production initiation, will
 request and will obtain from the Commission, the appraisal. A certify copy of
 this appraisal will be attached to the notification of Commercial Production
 initiation. Such measure only will applied to the case when both PARTIES
 would reach an agreement about the Annual Rent fixation.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
  “USPMM” Obligations. - During the performance of Mining
 Activities in the Lot of Mining Occupation, “USPMM”, its workers and
 contractors must to comply with the mining, labor and environmental
 protection legislation.

 
	
  

 	
  

 
	
  

 	
 6.1. “USPMM”, its workers and
 representatives will be responsible of any sanction, fine or sentence issued
 by competent authority in regard to any act performed in violation or in
 contravention of the mining, labor and environmental protection legislation
 applicable to the Mining Activities executed in the Lot of Mining Occupation
 after the date when this Contract of Temporary Occupation is signed.

 
	
  

 	
  

 
	
  

 	
 6.2. “USPMM”, its workers and representatives
 agree to indemnify the Lands to MR. VICTORIO AND MRS. IRMA for any loss, responsibility, accusation,
 demand or fine that might take place or quantified against MR. VICTORIO AND MRS. IRMA in regard to any act performed in violation
 or in contravention to the Mining Legislation, Labor Legislation and in the matter of
 environmental protection Legislation applicable to the Mine Activities
 performed in the Occupation Mining Lot after the signature of this Contract
 of Temporary Occupation. 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3. In regard with the execution of Mining
 Activities to be perform in the Mining Occupation Lot, “USPMM” will be the
 sole responsible to request and obtain from the competent authorities, all
 the permits, authorizations, concessions and favorable resolutions or grant
 the communications ordered by Law, that
 allow “USPMM” to:

 
	
  

 	
  

 	
 a.

 	
 Perform Mining Activities according to the
 Environmental Impact Study that will be presented to the Authorities,
 complying with the normativity in the matter of environmental protection;

 
	
  

 	
  

 	
 b.

 	
 To build, operate or maintain any kind of
 mills, benefit plant, structure or edification, and its components, that are
 necessary or required by “USPMM” to perform the Mining Activities; 

 
	
  

 	
  

 	
 c.

 	
 To consume or use water, coming or not from
 mines, or dispose residual waters, according with the normativity in the
 matter of environmental protection; and,

 
	
  

 	
  

 	
 d.

 	
 Use, consume, purchase or stoke explosives
 in accordance to the General Law of Fire Arms and Explosives (Ley General de
 Armas de Fuego y Explosivos).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.4. “USPMM” will have to restore and
 refurbish any loss or damage that might cause to the soil or subsoil of the
 area established by the Mining Occupation Lot as a result of the execution
 and conclusion of the Mining Activities, as it is ordered by the legislation
 applicable in the matter of environmental protection.

 
	
  

 	
  

 
	
  

 	
 6.5. Once the term of this Contract is over
 and under a term no longer than two years after the date this Contract ends,
 “USPMM” will have to remove from the Mining Occupation Lot all the goods of
 its property, including equipments, machinery, tools or any device used
 during the performance or in the conclusion of the Mining Activities.

 
	
  

 	
  

 
	
  

 	
 7.

 	
 MR.
 VICTORIO AND MRS. IRMA
 Obligations. MR.
 VICTORIO AND MRS. IRMA will
 be responsible of any sanction, fine or sentence issued by competent
 authority in regard to any act performed in violation or contravention to the
 mining, labor and environmental protection legislation applicable to the
 Mining Activities executed in the Lot of Mining Occupation before the date
 when this Contract of Temporary Occupation is signed.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.1. MR. VICTORIO AND MRS. IRMA agree to indemnify and protect “USPMM” of
 any loss, responsibility, accusation, demand or fine that might take place or
 quantified against “USPMM”, its workers or representative in regard to any
 act executed to any act performed in violation or in contravention to the
 Mining Legislation, Labor Legislation
 and in the matter of environmental protection Legislation applicable to the
 Mine Activities performed in the Occupation Mining Lot before the signature
 of this Contract of Temporary Occupation.

 
	
  

 	
  

 
	
  

 	
 7.2. MR. VICTORIO AND MRS. IRMA in the present Act, authorize and grant
 enough powers to “USPMM” to request and obtain, under its own name and
 representation, any permit, authorization, concession or favorable resolution
 (including, without been limitative, the ounces described in clause 6.3) that
 are considered by “USPMM” as necessary and prudent for the execution
 according to the right of the Mining Activities in the Mining Occupation Lot.

 
	
  

 	
  

 
	
  

 	
 7.3. In agreement with clause 7.2. and the
 applicable depositions established in the Federal Law of Water (Ley Federal
 de Agua), MR.
 VICTORIO AND MRS. IRMA
 authorize and grant “USPMM” enough powers to request on its own name and to
 obtain from the National Water Commission (Comisión Nacional del Agua) any
 water concession over the rivers located in the Mining Occupation Lot, that
 in the opinion of “USPMM” is or will be necessary, required or prudent for
 the performance of the Mining Activities. The present Contract shows the
 consent of Mr. VICTORIO to authorize “USPMM” to perform the acts depicted in
 this clause. 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.4. In reference to clause 7.2. and
 applicable dispositions of the Forest Law and its Rules (Ley Forestal y su
 Reglamento) and the General Law of Ecological and Environmental Protection
 and its Rules (Ley General de Protección Ecológica y Medio Ambiente y su
 Reglamento), MR.
 VICTORIO AND MRS. IRMA
 authorize “USPMM” in this Act and grants enough powers to “USPMM” to obtain
 in its own name and representation the following:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 Any authorization or permit requested by
 the law to justify any change a proportion of the Temporary Occupation Mining
 Lot in order to change the use of soil of forest to use of soil for Mining
 Activities of exploration and/or exploitation; 

 
	
  

 	
  

 	
 b.

 	
 The approval of any technical study of
 environmental impact that will be prepared in order to perform Mining
 Activities.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 Relationship. - The Parties recognize and agree that there
 is any labor relationship between the workers or contractors from one party
 to the other; and the Parties expressible agree that each party will
 individually assume any responsibility or obligation imposed by the Labor or
 Fiscal Legislation in regard to their own workers and contractors. Both
 parties agree to maintain the other party free and save of any claim, demand,
 lawsuit or complaint that might rise against them by the workers, employees
 or contractors of the other party before any administrative or judicial
 authority. 

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 Access. - Subject to what is establish in clause
 9.1., MR. VICTORIO AND MRS. IRMA will have during the term of the present
 Contract, access to the superficial area of the Occupation Mining lot. The
 parties recognize that the Mining Activities by nature are dangerous, because
 of this, the access will be on MR.
 VICTORIO AND MRS. IRMA own
 risk, and this apply to his representatives or his and their relatives, that
 access such lot and such access in any form will interrupt, prevent or delay
 the performance of the Mining Activities. “USPMM”, its members of the board,
 its workers, agents or contractors will not be responsible of any damage,
 expense, injury or prejudice occurred to MR. VICTORIO AND MRS. IRMA, his representatives or his and their
 relatives, or to is property, when such damage, expense, injury or prejudice
 occur in the moment when such persons are in the Mining Occupation Lot or as
 a result of the execution of Mining Activities.

 
	
  

 	
  

 	
  

 
	
  

 	
 9.1. MR. VICTORIO AND MRS. IRMA, his representatives and his or their
 relatives will require a writing permit from “USPMM” to pas through and/or
 remain in any portion of the area of the Occupation Mining Lot where the
 Mining Activities has been, are or will be performed and inside a radio of
 one hundred (100) meters of such perimeter.

 
	
  

 	
  

 
	
  

 	
 9.2. MR. VICTORIO AND MRS. IRMA will procure and will execute any necessary
 act to supply and maintain the total access for “USPMM, its representatives
 and contractors to the area occupied by the Occupation Mining Lot, according
 to what is been agreeing in this instrument. In the case that such access is
 restricted, limited or in any form stopped by a person or an object,
 including any representative of MR.
 VICTORIO AND MRS. IRMA
 and/or his or their relatives, MR.
 VICTORIO AND MRS. IRMA must
 immediately, but in any case under a 5 natural day term after the expressed
 request from “USPMM”, to perform any necessary act, required and prudent to
 comply with his obligations stated in the present Contract, including the
 liberation of the Occupation Mining Lot with any necessary legal actions,
 from any person or object that in the opinion of “USPMM” is or will be
 limiting, restringing or preventing
 the total access to “USPMM” to the area of the Occupation Mining Lot.

 

	
  

 	
  

 	
  

 
	
  

 	
 10.

 	
 Right of Preference. - MR. VICTORIO AND MRS. IRMA grant “USPMM”, and “USPMM acquire from MR. VICTORIO AND MRS. IRMA, the right of preference to acquire in first
 place, and in the same sell terms and conditions, the property rights of
 property upon the surface of the Occupation Mining Lot.

 
	
  

 	
  

 	
  

 
	
  

 	
 10.1. In the case that MR. VICTORIO AND MRS. IRMA decide to alienate or transmit by any way
 the ownership of the area of the Temporary Occupation Mining Lot or any piece
 of it, or if he have receive any legitimate purchase offer upon such rights,
 he has the obligation to notify “USPMM” by writing under a term of ten
 natural days start counting from the date when this decision is taken or when
 they receive the purchase offer, informing “USPMM” the terms and conditions
 how the rights will be sell or purchase. 

 
	
  

 	
  

 
	
  

 	
 10.2. “USPMM” will have a term of Sixty natural
 days, start counting the date of the notification reception, to express his
 intention to partially or totally purchase the ownership of the offered
 rights for sell or buy, as is the case.

 
	
  

 	
  

 
	
  

 	
 10.3. Once this term occurs without the exercise
 the right of preference, either “USPMM” in the terms established in the late
 paragraph, MR.
 VICTORIO AND MRS. IRMA will
 be able to freely transmit the rights ownership, just in the case that the
 sale terms and conditions are the once expressed in the notification sent to
 “USPMM”. 

 
	
  

 	
  

 
	
  

 	
 10.4. If under the term established in clause 10.2.
 “USPMM” notify MR. VICTORIO AND MRS. IRMA about its buying decision, in the indicated
 terms and conditions established in the corresponding notification, the
 pretended sale rights or the ones offered to buy, according to the case, the
 parties will celebrate and sign a Sale and Buy Contract to transmit the
 ownership of such rights to “USPMM”, under a term of ten natural days after
 such notification.

 
	
  

 	
  

 
	
  

 	
 10.5. If according to clause 10.3. MR. VICTORIO AND MRS. IRMA, their inheritors or grantees sell or
 transmit in any time the ownership of any portion of the Occupation Mining
 Lot, the present Contract will continue and will be applicable to the
 remainder portion in the terms established in Clause 4. Any grantee, buyer or
 acquirer of such rights must exclusively assume the obligation to comply with
 all and each of the terms and conditions stated in the present Contract. This
 obligation will start in the moment that this act is celebrated (with MR. VICTORIO AND MRS. IRMA, his inheritors or grantees in the case that
 it is a partial sell, grantee or transmission). 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.

 	
 Grant. - “USPMM”, its successors or grantees will
 have the right to grant or transmit to another person or company, under its
 absolute discretion, all or some of the rights and/or obligations stated in
 this Contract. 

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1. The present Contract is constancy and
 evidence of the authorization granted by MR. VICTORIO AND MRS. IRMA to “USPMM”, its successors and grantees,
 that under its absolute discretion they will have the right to grant or
 transmit to any person or company all or some of the rights and/or
 obligations stated in this Contract. The parties agree that it will not be
 required an additional contentment or approval from MR. VICTORIO AND MRS. IRMA to execute the rights granted in this
 clause. 

 
	
  

 	
  

 
	
  

 	
 12.

 	
 Limitations. - The parties will act in good faith and
 will cooperate in all aspects related to this Contracts, and it will be
 understand that:

 
	
  

 	
  

 	
 a.

 	
 Such relation will not impose to any of the
 parties, any additional obligation or responsibility resides the once already
 agree in this Contract; 

 
	
  

 	
  

 	
 b.

 	
 The present Contract will not constitute or
 create any association or partnership between the parties, and,

 
	
  

 	
  

 	
 c.

 	
 Non of the parties will have authority to
 act or assume any obligation or responsibility on the name, on behalf, or
 representation of the other party, with the exception of what is stipulated
 in the instrument.

 
	
  

 	
  

 
	
  

 	
 13.

 	
 Termination. - The term of the present contract will end
 due to the following causes:

 
	
  

 	
  

 	
 a.

 	
 Dissolution or liquidation of “USPMM”;

 
	
  

 	
  

 	
 b.

 	
 Ending of the Term of Occupation;

 
	
  

 	
  

 	
 c.

 	
 If “USPMM” acquires the ownership of the
 area of the Mining Occupation Lot; if “USPMM” just acquire a portion of such
 area, the present Contract will continue to apply in the rest of the area of
 the Mining Occupation Lot;

 
	
  

 	
  

 	
 d.

 	
 When “USPMM” deliver Mr. VICTORIO the
 notification of termination of the present Contract according to what is
 stated in Clause 4; “USPMM” will not be oblige to justify, probe or
 demonstrate the cause or reason that motivate the issuing of such ending
 notification;

 
	
  

 	
  

 	
 e.

 	
 The declaration through executory sentence
 of the nullity, cancellation or termination of the Rights derived from the
 Mine Concessions;

 
	
  

 	
  

 	
 f.

 	
 The declaration of ending through executory
 sentence of the exclusive rights of exploration or exploitation and purchase
 option acquired by “USPMM” related to the Mine Concessions, except when such
 termination is produce by the acquisition of the ownership of any Mine
 Concession by “USPMM”; and, 

 
	
  

 	
  

 	
 g.

 	
 By a mutual agreement signed by both
 parties.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.

 	
 Applicable Laws and Courts. -
 The present Contract will be interpreter and will be regulated by the
 applicable dispositions of the Law,
 the Mining Law and its Rules, the Code of Commerce and the Civil Code of the
 State of Michoacán. The parties will be submitted to the competence of the
 State and Federal Courts of Mexico City (Distrito Federal) for any case of
 conflict or interpretation of the present Contract or concerning any part
 stipulated on it both PARTIES stipulate as an exception that in
 the case of interpretation or conflict it will be approved to use the State
 or Federal Courts of the State of Michoacan, in case that it wouldn’t be
 possible a solution, it will be presented in the initially mentioned Courts
 in Mexico City.

 

	
  

 	
  

 	
  

 
	
  

 	
 15.

 	
 Force Majeure. - The Monthly Rent payment obligation will
 be suspended when the execution of the Mining Activities is interrupted,
 stop, prevent or delay by causes of Force Majeure. Such demand will be
 suspended during the time that the Cause de Force Majeure last. In the case
 of the existence of a cause of Force Majeure, the payment terms of the
 suspended obligation will be forward by the same number of days that lasted
 the cause of Force Majeure.

 
	
  

 	
  

 	
  

 
	
  

 	
 15.1. The parties recognize as cause of Force
 Majeure the following: all natural facts, fortuitous or from the human been,
 such as earthquakes, floods, volcano eruption, hurricanes, fires, storms,
 accidents, dry seasons, collapses, revolts, riots, rebellions, revolutions,
 wars, strikes, liberty illegal privation, acts of authority, access
 impossibility or obstacles to the Occupation Mining Lot and in general, any
 other fact or act outside the will of the parties that stop or delay the
 execution of the Mining Activities.

 
	
  

 	
  

 
	
  

 	
 15.2. In the case that it exist a cause of Force
 Majeure, “USPMM” will notify Mr.VICTORIO as soon as possible and will inform
 him the approximate term that the Monthly Rent payment suspension will last.
 Once the cause of Force Majeure is over, “USPMM” will notify MR. VICTORIO AND MRS. IRMA and will proceed to comply as soon as
 possible with its suspended obligations.

 
	
  

 	
  

 
	
  

 	
 16.

 	
 Communications and Notifications. - All communications and notifications that
 have to be done between the parties, as a result of the application of the
 present contract, including any summon or notification required in a judicial
 procedure, must be in writing and delivered personally or send by any
 communication medium that assure the efficient reception or notification, and
 will have to be address to the parties address that correspond to the last
 address manifested in this Contract, which until today are:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 MR. VICTORIO AND

 	
  

 	
  “USPMM”

 
	
  

 	
 MRS. IRMA

 	
  

 	
 US Precious Metals de México S.A. de C.V.

 
	
  

 	
 Domicilio Conocido

 	
  

 	
 Culiacán No. 17-602

 
	
  

 	
 Rancho “La Sábila”

 	
  

 	
 Col. Hipódromo Condesa

 
	
  

 	
 Municipio de Carácuaro

 	
  

 	
 Delegación Cuauhtemoc

 
	
  

 	
 Estado de Michoacán

 	
  

 	
 Distrito Federa, C.P. 06170

 
	
  

 	
 México

 	
  

 	
 México

 

	
  

 	
  

 	
  

 
	
  

 	
 17.

 	
 Successors and Inheritors. - The present Contract obliges and benefits
 MR. VICTORIO AND MRS. IRMA and “USPMM”, as well as their successors and
 inheritors.

 

	
  

 	
  

 	
  

 
	
  

 	
 18.

 	
 Total agreement between The Parties. - The present Contract, Exhibits A, B and C
 that are part of it and the documents that will be notified between The
 Parties, contains the total agreement of The Parties related to its objective,
 and because of it, this Contract cancels and invalid any other Contract,
 Agreement or Letter of Intention, either orally express or write, that both
 Parties would have celebrate related to such objective.

 

Once this Contract was read by the Parties
that intervene and once the Parties acknowledge its scope and legal force, they
sign in the City of Morelia, from the State of Michoacán at 11:00 hours the
Month of August, day 20 of the year 2007.

MR. VICTORIO AND LA MRS. IRMA

__________________________________

MR. VICTORIO GUTIERREZ CARDENAS

__________________________________

MRS. IRMA BANUELOS SERRATO

 “USPMM”

US PRECIOUS METALS DE MEXICO S.A. DE C.V.

______________________________________

SR. JOSE GARCIA GRANADOS
PRESIDENT OF US PRECIOUS
METALS DE MEXICO S.A. DE C.V.

EXHIBIT A

LIST OF MINE CONCESSIONS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Lot

 	
  

 	
 Títle

 	
  

 	
 Class

 Exploration or Exploitation

 	
  

 	
 Surface

 Hectares

 	
  

 	
 Concesión Termination day

 
	 
 	 	 	 	  	 	  	 	 
	
 SOLIDARIDAD

 	
  

 	
 220315

 	
  

 	
 Exploitation

 	
  

 	
 174.541

 	
  

 	
 July 11th, 2004

 
	
 SOLIDARIDAD III

 	
  

 	
 223444

 	
  

 	
 Exploitation

 	
  

 	
 294.062

 	
  

 	
 December 14th, 2004

 
	
 LA CEIBA

 	
  

 	
 223119

 	
  

 	
 Exploration

 	
  

 	
 921.3201

 	
  

 	
 October 19th, 2004

 
	
 SOLIDARIDAD II

 	
  

 	
 220503

 	
  

 	
 Exploration

 	
  

 	
 2162.2311

 	
  

 	
 August 14th, 2003

 
	
 SOLIDARIDAD II-A

 	
  

 	
 220504

 	
  

 	
 Exploration

 	
  

 	
 1.4544

 	
  

 	
 August 14th, 2003

 
	
 SOLIDARIDAD II-B

 	
  

 	
 220505

 	
  

 	
 Exploration

 	
  

 	
 0.0072

 	
  

 	
 August 14th, 2003

 
	
 SOLIDARIDAD IV

 	
  

 	
 220612

 	
  

 	
 Exploration

 	
  

 	
 149.4244

 	
  

 	
 September 4th, 2003

 
	
 LA SABILA

 	
  

 	
 227272

 	
  

 	
 Exploration

 	
  

 	
 11405.000

 	
  

 	
 June 31th, 2006

 

EHIBIT B

MAP OF LAND CERTIFICATION

(Shows the Surface that is
covered by the Mine Concession and shows the surface the will occupied
the
Occupation Mining Lot).

EXHIBIT C

CONTRACT ENGLISH
VERSION

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