Document:

<PAGE>

                                                                   Exhibit 10.50

                                      RIO

                                     TINTO

Guyanor Resources S.A.
Rotissement Calimbe II
Route du Tigre 97300
Cayenne
French Guiana

9 June 1999
REF:  99483.KHH

Dear Sirs

Joint Venture - Heads of Agreement
----------------------------------

We refer to our recent discussions concerning the establishment of a joint
venture between Rio Tinto Mining and Exploration Limited ("Rio Tinto") and
Guyanor Resources S.A. ("Guyanor") to explore for and, if considered
commercially feasible, develop and mine diamonds within French Guiana.

The parties intend that these Heads of Agreement will be replaced by a more
detailed Joint Venture Agreement (the "Joint Venture Agreement") to be executed
within six (6) months of the date of this letter. If the parties are unable to
agree on the terms of the Joint Venture Agreement within that six (6) month
period (or such longer period as Rio Tinto and Guyanor may agree) then either
party will have the right, upon giving written notice to the other, to terminate
these Heads of Agreement and clauses 3.2, 3.3 and 3.4 shall apply.

1.   Scope of the Joint Venture

1.1  From the date of signing these Heads of Agreement, Rio Tinto and Guyanor
     shall establish an unincorporated joint venture (the "Joint Venture") for
     the purpose of conducting joint work programmes within the Area of Interest
     with a view to finding, developing and operating, as one or more mines, any
     economically viable diamond deposits found thereon. For the purposes of
     these Heads of Agreement and the Joint Venture Agreement, the "area of
     Interest" will comprise the whole territory of French Guiana excluding
     those areas in respect of Guyanor's joint ventures and gold projects at the
     date hereof, such areas being defined in Schedule 2 and the location of
     which are approximately shown on the second map in Schedule 3 of this Heads
     of Agreement.
<PAGE>

1.2  While these Heads of Agreement and the Joint Venture Agreement remain
     current, the parties agree to make available, for the benefit of their
     joint undertaking described herein and for the Joint Venture, any
     prospecting, exploration or mining rights held or applied for by them or
     their affiliates (including such rights as are held at the date of this
     letter) within the Area of Interest in respect of diamonds.

1.3  For avoidance of doubt, each party is free to undertake, alone or in
     association with other parties, any activities in respect of minerals other
     than diamonds within the Area of Interest. Nothing contained in these Heads
     of Agreement or the Joint Venture Agreement shall restrict the ability of
     the parties to engage in and receive the full benefit of their business
     activities outside the Area of Interest.

1.4  A party and its affiliates may not, within a period of one year from the
     date of termination of these Heads of Agreement or the Joint Venture
     Agreement, acquire any prospecting, exploration or mining rights for
     diamonds within the Area of Interest without first offering the other party
     the opportunity, on terms and conditions identical to those contained in
     these Heads of Agreement or the Joint Venture Agreement, to acquire an
     interest in such rights.

2.   Rio Tinto Earn-In rights

2.1  Rio Tinto's Participating interest shall be zero percent until it has
     fulfilled the requirements set out herein to earn a 70% participating
     interest. However, prior to Rio Tinto earning its 70% interest, but after
     it has invested US$3.75 million in work expenditures, should the work
     expenditures hereunder result in the discovery of diamond mineralisation
     that does not appear to offer the possibility of meeting Rio Tinto's
     investment criteria, such area may, at Rio Tinto's sole election, be
     excised from the Area of Interest and shall be held or traded by the
     parties on a Rio Tinto 51 %, Guyanor 49% basis for a period of one year
     after the excise date - such date having been agreed and recorded by the
     Management Committee. If Rio Tinto has not been able to agree the sale,
     transfer or optioning of its 51% interest within such one year period at
     the end of the one year period its interest shall transfer to Guyanor in
     consideration for a 0.3% NSR royalty from future production of diamonds
     from the excised area whether this production is by Guyanor, its partners,
     its transferees or its successors in title. For avoidance of doubt, during
     the one year period in which the interests in an excised area are 51 % Rio
     Tinto, 49% Guyanor, each party shall be free to sell, transfer, option or
     otherwise transact its interest without obligation to the other.

2.2  Subject to paragraph 2.3 below, Rio Tinto shall have the right to earn a
     70% "Participating Interest" in the Joint Venture by sole funding all
     prospecting, exploration and evaluation work in the Area of Interest up to
     and including the
<PAGE>

     earlier of the date on which:

     (a)  the Board of Directors of Rio Tinto (or the Board of Directors of any
          affiliate of Rio Tinto) resolves as recorded in the minutes of a Board
          Meeting to commence with the development and mining of any diamonds
          within the Area of Interest; or

     (B)  Rio Tinto incurs on behalf of the Joint Venture work expenditures of
          at least US$17 million in sole funding prospecting, exploration and
          evaluation work within the Area of Interest.

2.3  Upon Rio Tinto earning a 70% Participating Interest in the Joint Venture,
     Guyanor shall be deemed to have a 30% Participating Interest. Thereafter,
     the parties shall contribute to the funding of Joint Venture operations in
     proportion to their respective Participating Interests.

2.4  In order to maintain its right to earn its 70% Participating Interest in
     the Joint Venture Rio Tinto shall fulfil the following conditions:

     (a)  in the period being one year from the date on which these Heads of
          Agreement are signed, Rio Tinto must sole fund within the Area of
          Interest work expenditures of at least US$750,000 (the "Minimum
          Expenditure") and if it withdraws prior to completing the Minimum
          Expenditure it shall pay to Guyanor the difference between such lesser
          sum as has been actually spent and the Minimum Expenditure unless the
          withdrawal occurs because of Guyanor's default in performance of its
          obligations or because the representations and warranties hereunder
          are materially incorrect.

     (b)  for each calendar year commencing 1 January 2000 and while the Joint
          Venture Agreement remains current, Rio Tinto must incur within the
          Area of Interest work expenditures of at least US$250,000;

     (c)  by the period ending five (5) years from the date on which these Heads
          of Agreement are signed, Rio Tinto must have incurred within the Area
          of Interest work expenditures of at least US$3,750,000; and

     (d)  Rio Tinto must earn its Participating Interest in the Joint Venture
          within ten (10) years of the date on which these Heads of Agreement
          are signed.

     Except for the Minimum Expenditure the making of any work expenditure shall
     be in the sole discretion of Rio Tinto and the sole remedy of Guyanor in
     the event that Rio Tinto does not meet any of its work expenditure
     requirements hereunder, excepting force majeure/1/ shall be termination of
     this Agreement. If any of the conditions (a) through (d) in this clause are
     not met, except for reason of force majeure, Rio Tinto shall be deemed to
     have withdrawn from this Agreement and the parties shall have no further
     obligation to each other except as may be
<PAGE>

     otherwise provided in clause 3 of this Heads of Agreement.

     If Rio Tinto is prevented by force majeure from incurring work expenditures
     necessary to maintain or exercise its option then it shall have additional
     time to incur such work expenditures as is equal to the duration of the
     force majeure condition.

2.5  Guyanor undertakes to do all acts and to execute all documents as shall be
     necessary to enable Rio Tinto to earn, hold and protect its right to
     acquire a 70% Participating Interest and, thereafter, its interest in the
     Joint Venture.

2.6  Guyanor further undertakes that it will not make any representation,
     statement or commitment to any governmental or state authority relating to
     the level of work expenditures to be made on any properties within the Area
     of Interest without first obtaining Rio Tinto's written consent.

3.   Withdrawal

3.1  Any party may withdraw from these Heads of Agreement or the Joint Venture
     Agreement by giving not less than two (2) months' prior written notice.

3.2  Upon withdrawal the withdrawing party shall transfer to the non-withdrawing
     party all its right, title and interest to any prospecting, exploration
     development, or other form of mineral right that are the subject of the
     Joint Venture Agreement. The withdrawing party shall continue to be liable,
     to the extent of its Participating Interest prior to its withdrawal, for
     any liabilities or obligations, which arose out of operations or activities
     prior to the date of its withdrawal.

3.3  If Rio Tinto withdraws prior to earning its 70% Participating Interest,
     then it shall:

     (a)  meet the costs of any environmental or rehabilitation liabilities
          which arise under French law as a direct consequence of the activities
          or operations undertaken after the date of these Heads of Agreement in
          the Area of Interest prior to its withdrawal, provided that such
          liabilities arise from the prudent conduct of Guyanor in accordance
          with Clause 5.6 hereunder and are not the result of any gross
          negligent or wilful reckless act or omission by Guyanor; and

     (b)  meet any costs which might be incurred by Guyanor under French Labour
          law with respect to work force reductions that are specifically caused
          by Rio Tinto's withdrawal, and the direct field demobilisation costs
          specifically arising from Rio Tinto's decision to withdraw.

3.4  Where a party has withdrawn from the Joint Venture, each other party shall
     do all things and execute all documents to ensure that the withdrawing
     party's name is
<PAGE>

     removed from any register pertaining the exploration and/or mining rights
     held by the Joint Venture.

4.   Work Programmes and Management Committee

4.1  No later than 30 days after the date hereof the parties shall establish a
     Management Committee to determine the annual work programmes and budgets
     and to generally oversee exploration, evaluation and development activities
     within the Area of Interest. Each party shall be entitled to appoint two
     members to the Management Committee. A quorum shall be deemed formed if
     there is at least one member present from each party.

4.2  During such period as Rio Tinto is earning its 70% Participating Interest
     and sole funding work expenditures, it shall determine all decisions of the
     Management Committee. Thereafter, each party shall have a vote on the
     Management Committee in proportion to its Participating Interest, and
     decisions of the Management Committee shall be decided by a majority of
     votes. Throughout the term of this Heads of Agreement and the Joint Venture
     Agreement the Management Committee may determine to surrender mineral
     rights that are subject to this agreement, but the Operator shall not
     proceed with such surrender before giving the minority party the
     opportunity to adopt such mineral rights in its name - any such transfer
     being free of consideration (but the transferee shall bear the costs of
     such transfer).

4.3  The Management Committee shall convene at least once every three months in
     a location to be agreed between the parties, failing which, it shall meet
     in Brasilia, Brazil.

5.   Operator

5.1  Guyanor shall be appointed the first Operator of operations to be
     undertaken under these Heads of Agreement and the Joint Venture Agreement.
     During the period in which Rio Tinto is sole funding and Guyanor is
     Operator Guyanor shall provide monthly reports of exploration progress and
     expenditure in such reasonable detail and according to such reasonable
     schedule as Rio Tinto may request.

5.2  The Operator undertakes to promptly inform the non operator of any
     occurrence or non occurrence that may affect the validity of good standing
     of the Titles or any part of them.

5.3  The Operator undertakes to promptly inform the non operator of any adverse
<PAGE>

     environmental, health, safety or community relations event or issue arising
     out of or in relation to work performed under this Heads of Agreement or
     the Joint Venture Agreement.

5.4  During the period in which Guyanor is Operator, unless provided in an
     approved programme and budget, it shall seek Rio Tinto's consent to the
     making of any commitment of duration longer than the then current work
     programme and budget or calendar year whichever is the shorter.

5.5  Following completion of the Minimum Expenditure in accordance with
     paragraph 2.3(a), Rio Tinto (or its nominated affiliate) may elect, and
     shall have the right upon making such election, to be appointed the
     Operator of operations to replace Guyanor. Rio Tinto shall meet any cost
     that may be incurred by Guyanor under French labour law with respect to
     work force reductions that are specifically caused by Rio Tinto replacing
     Guyanor as Operator.

5.6  During any period in which Rio Tinto is sole funding and is Operator it
     shall provide monthly reports of exploration progress and expenditure. Any
     party appointed Operator under these Heads of Agreement or the Joint
     Venture Agreement shall manage, direct and conduct operations within the
     Area of Interest in accordance with all Management Committee decisions.

5.7  The Operator shall conduct all operations in an efficient and workmanlike
     manner, in accordance with the highest standards of safety and sound mining
     industry practice, and in compliance with all applicable laws and the
     provisions of any exploration or mining titles held for the benefit of the
     Joint Venture. In no event shall standards of environmental, health, safety
     and community relations care and management be less than those required by
     Rio Tinto corporate policy.

5.8  Either party may call a meeting of the Management Committee upon giving
     reasonable written notice to the other.

5.9  Where Guyanor is Operator, Rio Tinto shall have the right to second or
     contract a geologist to Guyanor, to evaluate and assist with the
     implementation of the approved programmes. The costs of that secondment
     shall be expenditures hereunder. Likewise, where Rio Tinto is the Operator,
     Guyanor shall have the right to second or contract a geologist to Rio
     Tinto, to evaluate and assist with the implementation of the approved
     programmes. the costs of that secondment shall be part of the work.

5.10 The Operator shall undertake activities in accordance with approved
     programmes and budgets. To the extent that the costs incurred for such
     activities exceed an approved budget by up to 10%, such costs shall be
     deemed approved; to the extent that costs incurred exceed 10% over budget,
     the excess over 10% shall be for the sole account of the Operator unless
     the Management
<PAGE>

     Committee has agreed a revision to the budget.

5.11 The Operator shall have the right to be reimbursed for the costs of the
     work it performs including administrative and office overhead expenses
     directly resulting from work carried out hereunder. That reimbursement
     shall be no greater than what is necessary to recoup, on a cost-accounting
     basis, the costs it incurs in performing its obligations hereunder. Any
     transactions or agreements entered into by the Operator with any of its
     affiliate or associate companies shall be on an arms length basis.

5.12 The Operator shall make cash calls on a calendar monthly basis. Such cash
     calls shall be sufficient to fund the next month's exploration expenditures
     which shall have been forecast by the Operator at the beginning of the
     calendar year in a monthly budget phasing. The cash call may exceed the
     next month's exploration expenditure to the extent necessary to maintain no
     less than two weeks' and no more than four weeks' excess funding balance in
     the bank account designated for funding work expenditures hereunder. Upon
     termination of these joint venture arrangements the unspent balance of
     joint venture funds shall be appropriately reimbursed to the parties.

Guyanor agrees to meet all reasonable requests from Rio Tinto to perform its
obligations to such standards as are required by this Clause 5. Rio Tinto shall
at all reasonable times and at its expense have access to Guyanor's operations
hereunder upon reasonable notice and the right to audit at its cost Guyanor's
internal procedures and Guyanor accepts to make all reasonable changes to these
as may be requested by Rio Tinto.

6.   Dilution, default and elimination of minority interests

6.1  If any party elects to not contribute to the funding of Joint Venture
     operations in proportion to its Participating Interest, then its
     Participating Interest shall be diluted at a standard rate.

6.2  If any party fails, after having made an election to do so, to contribute
     to the funding of Joint Venture operations in proportion to its
     Participating Interest, then its Participating Interest shall be diluted at
     25% above the standard rate.

6.3  If any party is diluted below a 10% Participating Interest, it shall be
     deemed to have withdrawn from the Joint Venture and shall relinquish its
     Participating Interest. In lieu of its Participating Interest, the
     withdrawing party shall be entitled to receive a 5% Net Profit Interest
     from operations in the Area of Interest.

7.   Marketing
<PAGE>

7.1  Guyanor appoints Rio Tinto (or Rio Tinto's nominated affiliate) as its sole
     and exclusive agent to market and sell all diamonds produced by the Joint
     Venture from the Area of Interest on its behalf as long as Rio Tinto has an
     interest greater than 50%. If at any time operations in the Area of
     Interest are being conducted by a joint venture company, the parties
     appoint Rio Tinto (or its nominated affiliate) as the sole and exclusive
     agent to market and sell such diamonds as the joint venture company shall
     be entitled to.

7.2  Upon Rio Tinto completing its Minimum Expenditure, Guyanor and Rio Tinto
     shall negotiate and execute a Marketing Agreement to give effect to the
     above appointment. The Marketing Agreement shall provide that Rio Tinto or
     the relevant affiliate of Rio Tinto (as the case may be) shall be entitled,
     as agent, to deduct expenses incurred in each sale and to charge a
     marketing and sales commission equal to 3% of the gross sale proceeds
     accruing to the parties or the joint venture company (as the case may be).

7.3  The appointment of Rio Tinto (and its affiliates) as agent shall be subject
     to the applicable laws or orders of government agencies in force from time
     to time in French Guiana in relation to the marketing of minerals extracted
     or produced in French Guiana. The parties agree to do all acts and execute
     all documents as are reasonably necessary to give effect to Rio Tinto's
     appointment, or the appointment of an affiliate of Rio Tinto, as agent
     under this paragraph 7.

8.   Title to exploration and mining rights

8.1  While these Heads of Agreement and the Joint Venture Agreement remain
     current, the title to any prospecting, exploration or mining rights
     relating to the Area of Interest held by either party shall be held for the
     benefit of the other party and the Joint Venture.

8.2  Upon Rio Tinto completing US$3,750,000 in work expenditures, it shall be
     entitled to request that all prospecting, exploration or mining rights held
     by Guyanor for the benefit of the Joint Venture be transferred into the
     name of a newly formed corporate entity "Newco" in which the parties will
     hold shares in accordance with their participating interests. Guyanor shall
     do all acts and execute all documents to give effect to that transfer.
     Newco shall hold those rights for the benefit of the parties in accordance
     with their rights under the Joint Venture Agreement. If by reason of any
     legal restriction in French Guiana, Newco is not permitted to hold such
     rights, then Guyanor shall hold those rights for the benefit of the parties
     jointly, until such time as they can be transferred to Newco to be so held.

8.3  In the event that Rio Tinto withdraws from these Heads of Agreement or the
     Joint Venture Agreement, or otherwise fails to earn a Participating
     Interest, it shall immediately, and at its sole cost, transfer to Guyanor
     free of consideration any
<PAGE>

     right, title and interest it holds in any of the shares of Newco.

9.   Representations and Warranties

9.1  Guyanor represents and warrants to Rio Tinto that:

     (a)  it is a company duly incorporated and in good standing in its place of
          incorporation and that it is qualified to do business in those
          jurisdictions where necessary in order to carry out this Agreement;

     (b)  it will not breach any other agreement or arrangement by entering into
          or performing this Agreement;

     (c)  to the extent that Guyanor holds or has under application any form of
          rights relating to diamonds within the Area of Interest (the "Titles")
          these are listed in the Schedule and are free and clear of all
          competing interests and encumbrances;

     (d)  to the best of its knowledge, there is no area within the Area of
          Interest to which any restriction applies as a matter of law,
          regulation or French Government policy, whether or not time limited,
          specifically to Guyanor acquiring mineral rights in respect of
          diamonds (for avoidance of doubt this representation and warranty does
          not apply in respect of areas to which all parties suffer similar
          restriction);

     (e)  all fees in respect of any Titles have been paid and other filings
          required to maintain the Titles in good standing have been properly
          and timely recorded or filed with every applicable governmental
          agency;

     (f)  it has not received any claim or notice of violation alleging any
          violation of any law, rule, regulation or permit, including without
          limitation, any environmental law, rule, regulation or permit, in
          connection with the Titles from any governmental or regulatory
          authority, and to the best of its knowledge, there are no pending or
          threatened actions, suits, claims or proceedings that may affect the
          Titles;

     (g)  it has delivered or made available to Rio Tinto all material
          information concerning the Titles in its possession or control;

     (h)  to the best of its knowledge, all activities on or in relation to the
          Titles carried out by Guyanor up to the date which this Agreement has
          been signed have been carried out in accordance with all applicable
          laws, regulations and permits, including without limitation those for
          the protection of the environment and no conditions exist which could
          give rise
<PAGE>

          to the making of a remediation order or similar order in respect of
          the Titles; and

     (i)  more generally, to the best of its knowledge, all activities carried
          out by Guyanor within the Area of Interest up to the date which this
          Agreement has been signed have been carried out in accordance with all
          applicable laws, regulations and permits and Guyanor has not been
          subject to any legal or regulatory action against it regarding such
          activities.

9.2  The representations and warranties given under paragraph 9.1 (c) and (e)
     shall continue in force and shall be repeated during the term of these
     Heads of Agreement.

9.3  Rio Tinto's commitment to the Minimum Expenditure shall be contingent upon
     Guyanor's representations and warranties being materially correct.

10.  Governing Law

This Heads of Agreement shall be governed by and interpreted in accordance with
the laws of England except with respect to real property and mining law, in
which case the laws of French Guiana shall apply.

11.  Miscellaneous

The Joint Venture Agreement shall also contain provisions which give effect to
the following:

11.1 Each party shall be free from time to time to transfer its Participating
     Interest, or its interest in these Heads of Agreement or the Joint Venture
     Agreement, to an associated company or affiliate.  Further, a party may
     transfer its Participating Interest to a third party, but subject to a
     "pre-emptive right" in the other party to acquire the Participating
     Interest on the same terms and conditions.

11.2 The parties agree to be bound by obligations of confidentiality in respect
     of their operations in the Area of Interest and any data produced
     therefrom. There shall be exclusions from these obligations, which reflect
     standard industry practice. In addition, Guyanor shall have the right to
     make public disclosures of information pertaining to operations under these
     Heads of Agreement in the Area of Interest, provided it first obtains Rio
     Tinto's written consent to the timing and content of such disclosure (such
     consent not to be unreasonably withheld).

11.3 Each party shall give appropriate representations and warranties as to its
     capacity to enter into the Joint Venture Agreement. In addition, Guyanor
     shall
<PAGE>

     give appropriate representations and warranties as to its title to any
     prospecting, exploration or mineral rights held by it and the terms and
     good standing of those rights.

11.4 The parties shall make available to each other all the data and information
     in their possession relating to the Area of Interest.

To indicate your acceptance of the terms of these Heads of Agreement please sign
below.

Yours faithfully

for RIO TINTO MINING AND EXPLORATION LIMITED
6 St James's Square, London, SWIY 4LD, United Kingdom

Signature      :  /s/ Rado Jacob Rebek

Name           :  Rado Jacob Rebek

Title          :  Exploration Director

I accept the terms contained in these Heads of Agreement on behalf of Guyanor
Resources S.A.

for GUYANOR REOSURCES S.A.

Signature      :  /s/ Gordon J. Bell

Name           :  Gordon J. Bell

Title          :  Vice President And Chief Financial Officer
<PAGE>

                                  SCHEDULE I

                                   "TITLES"

1.0  Concessions

1.1  St-Elie
     St-Elie concession, owned by S.M.S.E. (wholly owned subsidiary)

1.2  Paul Isnard
----------------
 .    8 Concessions owned by SOTRAPMAG (wholly owned subsidiary):
     214-215-216-217-218-219-692-25

 .    2 Concessions owned by Tanon : 145 - 102, by agreement Guyanor is allowed
     to carry out any exploration and exploitation work.

2.0  Exploration permits

2.l  Paul lsnard
----------------
 .    Old "B" type permit #21/93 : will have to be renewed before October 1st,
     1999

 .    OLd "B" type permit #06/95 : valid until August 1st, 1999. Application for
     a five year extension as a PER (Permis Exclusif de Recherches) filed on May
     17/th/, 1999.

2.2  Yaou
     Old "B" type permit # 01/93, 02/93, 03/93, 04/93. Validity extended until
     Government decision concerning the concession application submitted on
     March 30th, 1999.

2.3 Dorlin
----------
 .    Old "B" type permit # 11/93, 12/93, 13/93, 14/93, 15/93, 16/93. Validity
     extended until Government decision concerning the concession application
     submitted on March 30th, 1999.

2.4  Dachine
------------
 .    Old "B" type permit # 07/95 : valid until July 1st, 1999.

 .    Application for a five year extension as a PER (Permis Exclusif de
     Recherches) filed on April 30th, 1999.

3.0  Applications submitted

3.1  Concessions
----------------
3.1.1  Yaou
 .    Concession application submitted on March 30th, 1999

3.1.2  Dorlin
 .    Concession application submitted on March 30th, 1999

3.2  Exploration permits
------------------------
3.2.1  Paul Isnard
 .    "A" type exploration permit application submitted. Decision pending.

3.2.2  Dachine
 .    "A" type exploration permit application submitted. Decision pending.
<PAGE>

                                  SCHEDULE 2

                   AREAS EXCLUDED FROM THE AREA OF INTEREST

1.0  Concessions

1.1  St-Elie
------------
     St-Elie concession, owned by S.M.S.E. (wholly owned subsidiary)

1.2  Paul Isnard

 .    8 Concessions owned by SOTRAPMAG (wholly owned subsidiary):
     214-215-216-217-218-219-692-25

 .    2 Concessions owned by Tanon : 145 - 102, by agreement Guyanor is allowed
     to carry out any exploration and exploitation work.

2.0  Exploration permits

2.1  Paul Isnard

 .    Old "B" type permit # 21/93 : will have to be renewed before October 1st,
     1999

 .    Old "B" type permit # 06/95 : valid until August 1st, 1999. Application for
     a five year extension as a PER (Permis Exclusif de Recherches) filed on May
     17th, 1999.

2.2  Yaou
---------
     Old "B" type permit # 01/93, 02/93, 03/93, 04/93. Validity extended until
     Government decision concerning the concession application submitted on
     March 30th, 1999.

2.3  Dorlin

 .    Old "B" type permit # 11/93, 12/93, 13/93, 14/93, 15/93, 16/93. Validity
     extended until Government decision concerning the concession Application
     Submitted On March 30th, 1999.

3.0  Applications submitted

3.1  Concessions
----------------
3.1.1  Yaou
 .    Concession application submitted on March 30th, 1999

3.1.2  Dorlin
 .    Concession application submitted on March 30th, 1999

3.2  Exploration permits
------------------------
3.2.1  Paul Isnard

 .    "A" type exploration permit application submitted. Decision pending.<TABLE>
<CAPTION>
                                                    Schedule Identifying Material
                                                     Terms of Options Granted To
                                             German American Bancorp Executive Officers

                                                                                                                     Option

Type of                             George            Mark            Stan            Urban           James           Price
Option                 Date         Astrike         Schroeder         Ruhe           Giesler         Essany         per Share
------                 ----         -------         ---------         ----           -------         ------         ---------

<S>                 <C>           <C>              <C>             <C>               <C>            <C>               <C>
Original Grant (2)   4/20/93      22,973.07        19,144.22       11,486.53         5,743.27       5,743.27          $8.49
Replacement (3)     12/30/94       2,761.87         2,552.56         -------          -------        -------          12.68
Replacement (3)      7/10/95       4,816.69         2,552.56         -------           765.77         367.57          12.22
Replacement (3)       1/9/96       7,147.18          -------        1,767.35           756.04         765.77          12.85
Replacement (3)      7/15/96        -------         2,187.91        1,373.52           685.55         875.16          14.19
Replacement (3)      1/16/97       6,197.92         3,864.15        2,613.92         1,782.74       1,655.40          16.13
Replacement (3)      1/28/97       5,288.03          -------         -------          -------        -------          16.09
Replacement (3)       8/1/97        -------         2,634.75        1,106.69           553.34         553.34          17.60
Replacement (3)       5/1/98        -------          -------         -------          -------       1,273.39          28.62
Replacement (3)       8/3/98        -------          -------          337.37           367.13        -------          26.55
Additional Grant (4)  9/2/98      63,945.00          -------         -------          -------        -------          22.22
Replacement (3)       5/4/99        -------         1,869.00          603.75          -------        -------          17.38

<FN>
(1)       Number of options and per share exercise  price have been  retroactively  adjusted for subsequent  stock splits and
          dividends.

(2)       These  options under the German  American  Bancorp 1992 Stock Option Plan (the "Plan") were made on April 20, 1993.
          These options expire ten years after the grant date. The options  granted to Mr.  Astrike became  exercisable  with
          respect to one-half of the shares  immediately  upon grant and with respect to the other  one-half of the shares on
          the first  anniversary of the grant date. The options  granted to the other executive  officers became  exercisable
          with respect to twenty percent of the shares on each of the anniversary dates beginning on the first anniversary of
          the date of grant.

(3)       The Stock Option Plan provides that if the optionee  tenders Common Shares of the Corporation  already owned by the
          optionee as payment,  in whole or part,  of the exercise  price for the shares the optionee has elected to purchase
          under the option,  then the  Corporation is obligated to use its best efforts to issue a replacement  option of the
          same type (incentive or non-qualified option). With the same expiration date as the option that was exercised,  and
          covering a number of Common Shares equal to the number of Common Shares  tendered.  Replacement  options may not be
          exercised until one year after the date of grant.

(4)       These options were granted to Mr. Astrike on September 2, 1998. These non-qualified  options expire in twenty years
          and are immediately exercisable.
</FN>
</TABLE>

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